Core Insights - Juspay has entered a strategic global agreement with Sabre Corporation to transform payments for travel businesses and customers, aiming for scalable payment orchestration solutions in the travel ecosystem [1] - Online bookings in the travel sector are projected to reach $1.2 trillion by 2026, representing nearly 65% of all travel transactions [1] Group 1: Partnership Details - The collaboration integrates Juspay's tokenisation solution with Sabre Direct Pay, enhancing security and efficiency in travel payments [2] - This integration allows airlines, hotels, and booking engines to process transactions without handling sensitive card data, reducing fraud risk and increasing operational efficiency [2] Group 2: Industry Impact - The partnership addresses complexities faced by travel companies, including local payment methods, regulatory compliance, multi-currency settlements, and secure transactions [3] - The combined offering provides travel merchants with scalable, sector-specific capabilities to meet evolving digital payment expectations [4] Group 3: Operational Enhancements - The agreement strengthens payment flows, enabling travel merchants to streamline operations and optimize transaction routing [6] - Juspay processes over 300 million daily transactions, exceeding an annualised total payment volume of $1 trillion, targeting the high-value travel payments segment [6] Group 4: Benefits to Travel Merchants - The collaboration offers access to diverse local payment methods, faster go-to-market enablement, optimized cross-border payments, seamless checkout experiences, intelligent promotion engines, and streamlined reconciliation [9]

Core Insights - Juspay and Sabre Direct Pay have announced a strategic global agreement aimed at transforming payment processes for travel companies and their customers, coinciding with a projected growth in online bookings to $1.2 trillion by 2026, representing nearly 65% of all travel transactions [1][2] Group 1: Partnership Objectives - The collaboration aims to modernize global travel payments to enhance conversion rates, improve security, and increase customer satisfaction across all markets [2][3] - The partnership will provide travel providers with scalable, industry-specific features such as access to local payment methods, faster time-to-market, optimized cross-border payments, and seamless checkout processes [2][3] Group 2: Technological Integration - Juspay will integrate its tokenization solution into Sabre Direct Pay to enhance the security and efficiency of travel payments, allowing airlines, hotels, and booking engines to process transactions without handling sensitive card data [2][3] Group 3: Industry Impact - The partnership is expected to strengthen payment flows, streamline operations for travel providers, and optimize transaction routing, ultimately delivering a seamless and secure payment experience for travelers worldwide [3][5]

Financial Data and Key Metrics Changes - For Q3 2025, the company reported revenue of $715 million, reflecting a 3% year-on-year increase, consistent with guidance for low to mid-single-digit growth [16][17] - Normalized adjusted EBITDA for the quarter was $150 million, up 23% year-on-year, with the normalized adjusted EBITDA margin expanding by 340 basis points to 21% [18][9] - Pro forma free cash flow was $13 million, with an expectation of approximately $70 million for the full year 2025 [18][19] Business Line Data and Key Metrics Changes - Total distribution bookings grew by 3% year-on-year, with air distribution bookings increasing by more than 2% [7][8] - Hotel distribution bookings grew by 6% in the quarter, and the attachment rate to air bookings increased over 100 basis points year-on-year [8] - IT solutions revenue remained flat at $140 million year-on-year, as growth from passengers boarded was offset by a decrease in license fee revenue [17] Market Data and Key Metrics Changes - The company experienced softness in July air bookings, but saw improvement in September, which finished strong with a 7% year-on-year increase [7][8] - The GDS industry air distribution bookings declined approximately 1 percentage point year-on-year, impacting the company's air booking mix [8] - The company noted that U.S. military and government travel represented about 4% of global air distribution volumes, which is a minor component of current trading volumes [29] Company Strategy and Development Direction - The company aims to reduce net leverage by approximately 50% by year-end 2025 compared to year-end 2023, focusing on generating free cash flow and deleveraging the balance sheet [6][20] - Innovation is central to the company's strategy, with recent announcements including agentic APIs for travel and a continuous revenue optimizer within the Sabre Mosaic platform [6][10] - The company is transforming its platform into a modern, open travel marketplace, with 41 live NDC integrations enhancing its competitive position [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to drive air distribution bookings growth, despite challenges from the government shutdown impacting October bookings by approximately 3 percentage points [15][21] - The outlook for Q4 anticipates air distribution bookings growth of between 6% and 8%, with a full-year expectation of near the low end of the previously provided range of 0.5%-3.5% [21][22] - Management highlighted that leisure demand is positive year-on-year, while corporate demand remains mixed, with expectations for low single-digit passenger growth globally [38][39] Other Important Information - The company has made significant progress in its capital structure, paying off over $1 billion of debt this year, including approximately $825 million from the sale of the Hospitality Solutions business [19][20] - The payments business is scaling rapidly, processing over $20 billion in annual transactions, with quarterly gross spend growing over 40% year-on-year [11][10] Q&A Session Summary Question: Can you run through the updated FY25 guidance and explain the changes in EBITDA and free cash flow? - Management noted that the $20 million reduction in EBITDA is primarily due to a $10-$12 million impact from the government shutdown, along with lower margin from FX and product sales [23][24] Question: What is the impact of the government shutdown on travel? - The impact is mainly on travel by government employees and U.S. military, with a high concentration of this business affecting overall volumes [28][29] Question: What is the current NDC mix? - The NDC mix remains in the low single digits, between 2% and 3% of air distribution volumes, but is expected to grow rapidly [30] Question: How does the company expect to recover from the government shutdown? - Management anticipates a phased recovery back to normalcy, likely in the first quarter following the resolution of the shutdown [32] Question: Can you elaborate on the payments business strategy? - The payments business is scaling at a 40% top line rate, with significant growth opportunities identified, although specific revenue and margin details have not been disclosed yet [32]

Financial Performance - Q3 2025 revenue reached $715 million, a 3% year-over-year increase[17] - Normalized Adjusted EBITDA for Q3 2025 was $150 million, up 23% year-over-year[17] - The Normalized Adjusted EBITDA margin increased by 340 basis points year-over-year to 21%[36] - Pro Forma Free Cash Flow was $13 million for Q3 2025[16, 34] - The company expects to generate approximately $70 million in Pro Forma Free Cash Flow for the full year 2025[16] Operational Highlights - Total distribution bookings increased by 3% year-over-year to 95 million[17] - Air distribution bookings increased by 2% year-over-year to 81 million[17] - Hotel distribution bookings increased by 6% year-over-year to 11 million[17] - Digital Payments gross spend increased by approximately 40% year-over-year in Q3 2025[16] Debt and Leverage - Approximately $825 million of debt was repaid using proceeds from the Hospitality Solutions sale[16] - The company anticipates reducing year-end 2025 pro forma net leverage by approximately 50% from year-end 2023[16] Future Outlook - The company expects air distribution volumes to grow 6% to 8% year-over-year in Q4 2025[27, 44] - The company expects approximately 9% Pro Forma Adjusted EBITDA growth for full-year 2025[16, 44]