Sabre's Q3 Earnings Miss, Revenues Grow on Higher Bookings and Rates

Core Insights - Sabre Corporation (SABR) reported mixed results for Q3 2025, with revenues exceeding estimates but adjusted losses falling short [1][10] - The company expects flat revenues for 2025 and has revised down its free cash flow guidance [6][7][10] Financial Performance - Sabre's Q3 revenues reached $715.2 million, surpassing the Zacks Consensus Estimate of $708.8 million, marking a 3.5% year-over-year increase driven by higher air and hotel bookings [2][10] - Distribution revenues increased by 4% to $575 million, while IT Solutions revenues remained flat at $140 million year-over-year [3] - Normalized adjusted EBITDA improved to $150 million, up from $121 million in the previous year, with a margin increase of 350 basis points to 19.7% [4][10] Cash Flow and Balance Sheet - As of the end of Q3, Sabre had cash and equivalents of $447 million, down from $682.8 million in the previous quarter [5] - The company generated operating cash flow of $33.7 million and free cash flow of $13.4 million during Q3 [5] Guidance Updates - For 2025, Sabre now anticipates pro-forma revenues to be flat year-over-year, a revision from earlier expectations of low single-digit growth [6] - Pro-forma adjusted EBITDA is projected at approximately $530 million, and free cash flow is now expected to be around $70 million [7] - For Q4, Sabre expects pro-forma revenue growth in the low single-digit percentage range and adjusted EBITDA of around $110 million [8]