Financial Data and Key Metrics Changes - In 2025, normalized adjusted EBITDA increased by 10% year-on-year, with the normalized adjusted EBITDA margin expanding by 166 basis points to 19% [25][9] - Total revenue for 2025 was $2.8 billion, up 1% year-on-year, driven primarily by growth in distribution revenue [25][22] - Pro forma free cash flow for the fourth quarter was $116 million, a year-on-year increase of $45 million [24][9] - The company ended the year with a strong cash balance of $910 million, which includes $98 million in restricted cash for debt repayments in the first quarter of 2026 [10][25] Business Line Data and Key Metrics Changes - Air distribution bookings grew by 4% year-on-year in the fourth quarter, with a total growth of 7% in December [12][22] - Hotel distribution bookings increased by 5% year-on-year to 42 million, with gross hotel booking value exceeding $20 billion annually [13][12] - Sabre Payments was one of the fastest-growing businesses, with gross spend on the platform increasing by more than 35% year-on-year [11] Market Data and Key Metrics Changes - The company recorded double-digit year-on-year growth in normalized adjusted EBITDA and generated positive pro forma free cash flow [9] - NDC (New Distribution Capability) represented approximately 4% of total air distribution bookings, with expectations for acceleration in 2026 [12][22] - The company expects mid-single-digit volume growth for both 2026 and 2027, driven by continued share gains and growth in NDC bookings [28][32] Company Strategy and Development Direction - The company is transitioning from a GDS-focused model to an AI-native technology leader, emphasizing the importance of AI in the travel ecosystem [6][7] - Recent executive leadership changes were announced to align talent and investments with the AI strategy [8] - The company aims to leverage its extensive travel data and proprietary logic to become essential in an AI-first world [16][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning for strong, sustained performance despite challenges in 2025 [5] - The outlook for 2026 includes expectations for mid-single-digit revenue growth and continued improvements in operational efficiency [28][32] - Management highlighted the importance of maintaining operational delivery and R&D while managing costs through an inflation offset program [56][57] Other Important Information - The company paid off over $1 billion in debt in 2025, reducing pro forma net leverage by approximately 25% compared to year-end 2024 [9][26] - The company has no large debt maturities until 2029, with over 90% of its debt maturing in 2029 or later [10][26] Q&A Session Summary Question: What still needs to be done on the AI front, and what upside opportunities from AI might evolve? - Management indicated that the next stage involves demonstrating the end-to-end experience of conversational commerce in travel, with partnerships like Mindtrip and PayPal enhancing the customer experience [40][41] Question: Does the introduction of GenAI change the economic equation for direct connects? - Management explained that Sabre's scalable marketplace allows for faster response times compared to direct connects, making it a valuable partner for AI companies [49][50] Question: Can you elaborate on the inflation offset program? - The program aims to keep key cost items flat while driving efficiency, with a focus on leveraging geographical advantages and embedding AI into the workforce [56][57]

Financial Data and Key Metrics Changes - In 2025, normalized Adjusted EBITDA increased by 10% year-on-year, reaching $536 million, with the normalized Adjusted EBITDA margin expanding by 166 basis points to 19% [25][9] - Total revenue for 2025 was $2.8 billion, reflecting a 1% year-on-year growth, primarily driven by distribution revenue growth [22][25] - Pro forma free cash flow for the fourth quarter was $116 million, a year-on-year increase of $45 million [24] Business Line Data and Key Metrics Changes - Air distribution bookings grew by 4% year-on-year in the fourth quarter, with a total growth of 7% in December [12][22] - Hotel distribution bookings increased by 5% year-on-year, reaching 42 million, with gross hotel booking value exceeding $20 billion annually [13] - Sabre Payments was one of the fastest-growing businesses, with gross spend on the platform increasing by more than 35% year-on-year [11] Market Data and Key Metrics Changes - NDC (New Distribution Capability) adoption reached approximately 4% of total air distribution bookings, with 15 live integrations added during the year [12] - The company expects mid-single-digit volume growth for both 2026 and 2027, driven by continued share gains and growth in NDC bookings [28][32] Company Strategy and Development Direction - The company is transitioning from a GDS-focused model to an AI-native technology leader, emphasizing the importance of AI in enhancing travel workflows [6][7] - Recent executive leadership changes were announced to align with the new AI strategy, including the promotion of Garry Wiseman to President of Product and Engineering [8] - The company aims to leverage its extensive travel data and proprietary logic to become essential in the evolving AI ecosystem [16][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning for strong, sustained performance, despite challenges faced in 2025 [5] - The outlook for 2026 includes expectations for mid-single-digit revenue growth, driven by share gains and the introduction of new solutions [28][32] - Management highlighted the importance of maintaining operational delivery and R&D while managing costs through an inflation offset program [56][57] Other Important Information - The company paid off over $1 billion in debt in 2025, significantly improving its capital structure and reducing pro forma net leverage by approximately 25% compared to year-end 2024 [9][26] - The company ended 2025 with a strong cash balance of $910 million, which includes $98 million in restricted cash for debt repayments [10][25] Q&A Session Summary Question: What still needs to be done on the AI front, and what upside opportunities from AI might evolve? - Management indicated that the next stage involves demonstrating the end-to-end experience of conversational commerce in travel, with partnerships like Mindtrip and PayPal enhancing the customer experience [36][41] Question: Does the introduction of GenAI change the economic equation for direct connects? - Management explained that Sabre's scalable marketplace allows for faster response times and better content management compared to direct connects, which can be costly for suppliers [47][50] Question: Can you elaborate on the inflation offset program? - The program aims to keep key cost items flat despite inflation, focusing on efficiency and productivity improvements through geographical leverage and AI integration [53][56] Question: How is corporate travel performing, and where is the strength coming from? - Corporate travel is showing positive signs across both traditional players and new entrants, indicating a healthier market environment compared to the previous year [80] Question: What is the outlook for free cash flow and discussions with debt holders? - Management expects to generate positive free cash flow in 2027, with a strong cash balance and no large maturities until 2029 [76][64]

Financial Data and Key Metrics Changes - In Q4 2025, total revenue grew by 3% year-on-year, consistent with guidance of low single-digit growth [22] - Full year 2025 revenue reached $2.8 billion, up 1% year-on-year, driven primarily by growth in distribution revenue [25] - Normalized adjusted EBITDA for Q4 2025 was $119 million, a 10% increase year-on-year, with the margin expanding by 107 basis points to 18% [24] - Full year normalized adjusted EBITDA was $536 million, also a 10% increase year-on-year, with the margin improving by 166 basis points to 19% [25] - Pro forma free cash flow for Q4 2025 was $116 million, a year-on-year increase of $45 million [24] Business Line Data and Key Metrics Changes - Air distribution bookings grew 4% year-on-year in Q4 2025, with a 7% growth in December [11][22] - Hotel distribution bookings increased 5% year-on-year to 42 million, with gross hotel booking value exceeding $20 billion annually [12] - Sabre Payments was one of the fastest-growing businesses, with gross spend increasing over 35% year-on-year [10] Market Data and Key Metrics Changes - NDC (New Distribution Capability) represented approximately 4% of total air distribution bookings by the end of 2025, with expectations for acceleration in 2026 [11] - The company noted broad-based growth in air distribution bookings across all regions, including corporate travel, which had previously been negative [70] Company Strategy and Development Direction - The company is transitioning from a GDS-focused model to an AI-native technology leader, emphasizing the importance of AI in travel [5][6] - Recent executive leadership changes were announced to align with the new AI strategy, including the promotion of Garry Wiseman to President of Product and Engineering [7] - The company aims to leverage its extensive travel data and technology to become essential in the evolving AI ecosystem [16][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning for strong, sustained performance, driven by distribution share gains and growth in hotel distribution and payments [5] - The company anticipates mid-single-digit volume growth for both 2026 and 2027, with a focus on continued share gains and growth in NDC bookings [28][33] - Management acknowledged challenges from external factors but noted positive momentum exiting 2025 [5][22] Other Important Information - The company paid off over $1 billion in debt in 2025, reducing pro forma net leverage by approximately 25% compared to year-end 2024 [8][26] - A restructuring charge of $51 million was recorded in Q4 2025 as part of an inflation offset program, with expected cash outflows of around $60 million in 2026 [32][73] Q&A Session Summary Question: What still needs to be done on the AI front, and what upside opportunities might evolve from AI? - Management highlighted the importance of demonstrating an end-to-end experience in conversational commerce for travel, with partnerships aimed at enhancing itinerary planning and payment options [38][42] Question: Does the introduction of GenAI change the economic equation for direct connects? - Management explained that Sabre's scalable marketplace and ability to aggregate and normalize travel content provide a competitive advantage in managing direct connects [50][52] Question: Can you elaborate on the inflation offset program? - Management indicated that the program aims to keep technology and SG&A costs flat while leveraging geographical advantages and embedding AI for productivity [55][59] Question: How is corporate travel performing, and where is the strength coming from? - Management noted positive signs in corporate travel, with strength coming from both traditional players and new entrants [80] Question: Can you provide an update on capital allocation for 2026 and beyond? - Management stated that while debt paydown remains a priority, there is also a focus on investing in growth initiatives, particularly in agentic AI [62][66]

Financial Data and Key Metrics Changes - For Q2 2025, the company reported revenue of $687 million, a decrease of 1% year on year [19] - Normalized adjusted EBITDA increased by 6% year on year, with a normalized adjusted EBITDA margin improvement of approximately 120 basis points to around 19% [21] - Total debt was reduced by over $1 billion, or nearly 20%, and the company expects to reduce year-end 2025 net leverage by approximately 50% compared to year-end 2023 [7][25] Business Line Data and Key Metrics Changes - Air distribution bookings declined by 1% year on year, with growth strategies contributing eight points of growth offset by a nine-point decline in the base business [8][9] - Hotel distribution bookings grew by 2% in the quarter, with the attachment rate to air bookings improving by 100 basis points to 34% [10] - In IT Solutions, passengers boarded increased by 1% year on year, contributing to normalized adjusted EBITDA growth of 6% [11] Market Data and Key Metrics Changes - The operating environment remains challenging, particularly affecting air distribution bookings, which fell short of expectations [8] - The GDS industry experienced a decline in corporate bookings relative to leisure, impacting overall GDS volumes [9] - The company has a higher exposure to corporate and government travel, which has underperformed compared to leisure travel [41][62] Company Strategy and Development Direction - The company is focused on generating free cash flow and deleveraging the balance sheet while driving sustainable growth through innovative technology solutions [5][18] - The transformation into a modern, open travel marketplace is underway, with significant progress in multi-source content and NDC connections [12][55] - The company anticipates a six-month delay in launching a new multi-source low-cost carrier solution due to execution delays [16][56] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the incremental industry weakness observed in June and July, leading to a revised outlook for air distribution bookings growth [14][15] - The company expects the GDS industry trends to stabilize over time, despite current challenges [14] - Management remains optimistic about the long-term growth potential, citing strong demand for new business initiatives [18][60] Other Important Information - The company closed the sale of its Hospitality Solutions business on July 3, 2025, with proceeds primarily used to pay down debt [22][25] - Pro forma free cash flow was reported as negative $2 million for the quarter, with cash on the balance sheet exceeding $600 million post-sale [22][25] Q&A Session Summary Question: Why was the prior guidance so optimistic given the consistent headwinds? - Management noted that while growth strategies remained constant, market conditions changed, leading to a more cautious outlook [34][35] Question: Is the middle scenario of guidance considered the base case? - Management indicated that they have not provided a weighting on the scenarios but believe the current trading environment aligns more with the middle scenario [36][37] Question: What factors are causing the decline in GDS bookings? - Management highlighted that corporate travel impacts GDS bookings more significantly than leisure travel, and current market conditions are temporary rather than structural [40][41] Question: What is the strategy for NDC agreements and growth? - The company has 38 live NDC connections and is focused on integrating various content types to enhance its offerings [54][67] Question: How does the company expect to manage operating costs moving forward? - Management emphasized strong cost discipline and anticipated reductions in technology expenses due to ongoing transformation initiatives [47][49]

Financial Data and Key Metrics Changes - Revenue for the first quarter was approximately $777 million, roughly flat year on year, while adjusted EBITDA increased by 5% year on year to $150 million [23][11] - Adjusted EBITDA margin improved by 110 basis points year on year to 19.3%, driven by lower technology costs and effective cost management [11][23] - The company ended the quarter with $672 million in cash on the balance sheet, and free cash flow remains on track for the full year [23][11] Business Line Data and Key Metrics Changes - Air distribution bookings decreased by 3% year on year, primarily due to lower group bookings in the APAC region and a pullback in U.S. government and military travel [12][6] - Hotel B2B distribution business saw strong bookings growth of 7% year on year, with gross booking value transacted through the platform increasing by 11% in Q1 [13][17] - The IT solutions segment experienced a decline of $8 million year on year, attributed to prior demigrations, but is expected to resume growth in the second half of 2025 [26][11] Market Data and Key Metrics Changes - The GDS industry growth assumption for 2025 has been adjusted from flat to a decline of 1% to 2%, reflecting recent airline traffic softness [6][20] - The company expects to realize over 30 million incremental air distribution segments this year from business signed during 2024 [12][6] Company Strategy and Development Direction - The company announced an agreement to sell its Hospitality Solutions business for $1.1 billion, with net proceeds expected to be used primarily for debt repayment, enhancing the company's balance sheet [9][18] - Strategic priorities include generating free cash flow, deleveraging the balance sheet, and investing in innovation for sustainable long-term growth [10][22] - The company is focused on transforming its GDS platform into a modern, open marketplace, integrating content from various sources to enhance booking efficiency [15][14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macro environment but expressed confidence in the company's resilient business model, which is less affected by pricing volatility [5][6] - Despite the softer market dynamics, the company reaffirmed expectations for double-digit distribution bookings growth for the full year [7][20] - The company anticipates low single-digit revenue growth in Q2, with expectations for stronger growth in the second half of 2025 [30][20] Other Important Information - The company plans to use approximately $825 million of the proceeds from the sale of Hospitality Solutions to pay down debt, with the remaining funds allocated for strategic investments [29][86] - The company expects to generate pro forma free cash flow of greater than $200 million for the year [33][48] Q&A Session Summary Question: Can you expound more on the macro environment and its impact? - Management indicated that the GDS market growth is now expected to decline by 1% to 2%, but the revenue model is based on transaction volume rather than pricing, which should mitigate the impact [37][38] Question: What does the sale of Hospitality Solutions mean for refinancing? - The sale is expected to improve the company's net debt to EBITDA ratio by approximately one turn and reduce interest expenses by $65 million, allowing for more efficient future financings [40][41] Question: How quickly can cash proceeds from the sale be used to pay down debt? - The company plans to pay down debt shortly after receiving the proceeds, within five days, and expects free cash flow to be greater than $200 million this year [48][49] Question: Can you provide insights on the performance of Sabre Mosaic? - Management reported strong wins with airlines, with a mix of full stack and offer components, indicating a rich pipeline for future growth [51][52] Question: What was the impact of Q1 on different travel segments? - The softness in Q1 was broad, affecting both corporate and leisure travel, with specific declines noted in inbound travel to the U.S. and military travel [58][59] Question: How does the company view its market share in light of the GDS outlook? - While the GDS market is projected to decline, the company expects to grow its market share significantly through double-digit growth in distribution bookings [85][64]

Financial Data and Key Metrics Changes - Revenue for the first quarter was approximately $777 million, roughly flat year on year, while adjusted EBITDA increased by 5% to $150 million, aligning with guidance [22][11] - Adjusted EBITDA margin improved by 110 basis points year on year to 19.3%, driven by lower technology costs and effective cost management [11][22] - The company ended the quarter with $672 million in cash on the balance sheet, and free cash flow remains on track for the full year [22][11] Business Line Data and Key Metrics Changes - Air distribution bookings decreased by 3% year on year, primarily due to lower group bookings in the APAC region and a pullback in U.S. government and military travel [12][6] - Hotel B2B distribution business saw strong bookings growth of 7% year on year, with gross booking value transacted through the platform increasing by 11% in Q1 [13][17] - The digital payments business experienced a 30% year on year increase in gross spending, reaching $4 billion in the first quarter [17] Market Data and Key Metrics Changes - The GDS industry growth assumption was adjusted from flat to a decline of 1% to 2% for the full year 2025, reflecting recent airline traffic softness [6][20] - The company expects low single-digit growth in air distribution bookings for Q2, with a strong recovery anticipated in the second half of the year [20][29] Company Strategy and Development Direction - The company announced the sale of its Hospitality Solutions business for $1.1 billion, with plans to use approximately $960 million of the proceeds to pay down debt, significantly improving its leverage [9][18] - Strategic priorities include generating free cash flow, deleveraging the balance sheet, and investing in innovation for sustainable long-term growth [10][32] - The company is focused on transforming its GDS platform into a modern, open marketplace, integrating content from various sources to enhance booking efficiency [15][16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macro environment but expressed confidence in achieving double-digit distribution bookings growth for the year despite market softness [20][37] - The company expects to see stronger APAC group booking trends in Q2 and anticipates significant growth in air distribution bookings in the second half of 2025 [29][20] - Management reiterated that the revenue model is primarily based on transaction volume rather than pricing, which should mitigate some impacts from market pressures [37][6] Other Important Information - The company plans to retain approximately $135 million of the sale proceeds for reinvestment in strategic growth initiatives and technology modernization [85][84] - The company has a strong pipeline for digital payments and is seeing increased customer adoption, reinforcing confidence in its growth strategy [17][18] Q&A Session Summary Question: Can you expound more on the macro environment and its impact? - Management indicated that the company is not immune to macro challenges, adjusting GDS market growth expectations down to 1% to 2% for the year, but remains confident in achieving double-digit growth in distribution bookings [36][37] Question: How quickly can you use the cash proceeds from the sale to pay down debt? - The company plans to pay down debt shortly after the sale closes, within five days of receiving proceeds, expecting to maintain a free cash flow expectation of greater than $200 million for the year [46][45] Question: Can you provide insights on the implementation of new business won? - Management confirmed that implementation is on track and does not foresee significant execution risk, assuming current market conditions remain stable [75][76] Question: What is the outlook for air bookings growth through the year? - Management expects high teens growth in Q3 and above 20% in Q4, with strong carryover into 2026 anticipated [67][70] Question: How does the gross margin of new agency business compare to existing volume? - New business is expected to have slightly lower average booking fees and margins due to geographical mix and increased NDC volumes, but overall margins are expected to remain in line with previous years [90][92]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was approximately $777 million, roughly flat year on year, while adjusted EBITDA increased by 5% to $150 million, aligning with guidance [23][12][26] - Adjusted EBITDA margin improved by 110 basis points year on year to 19.3%, driven by lower technology costs and effective cost management [12][23] - Free cash flow remains on track for the full year, with expectations of greater than $200 million [49][33] Business Line Data and Key Metrics Changes - Air distribution bookings decreased by 3% year on year, primarily due to lower group bookings in the APAC region and a decline in U.S. government and military travel [13][6] - Hotel B2B distribution business saw strong bookings growth of 7% year on year, with gross booking value transacted through the platform increasing by 11% in Q1 [14][18] - IT Solutions revenue decreased by $8 million year on year, expected to resume growth in the second half of 2025 [27][12] Market Data and Key Metrics Changes - The GDS industry growth assumption was adjusted from flat to a decline of 1% to 2% for the full year 2025, reflecting recent airline traffic softness [6][40] - The company anticipates low single-digit growth in air distribution bookings for Q2, with expectations of double-digit growth for the full year [21][31] Company Strategy and Development Direction - The company is focused on generating free cash flow, deleveraging the balance sheet, and investing in innovation for sustainable long-term growth [11][34] - The sale of the Hospitality Solutions business, valued at $1.1 billion, is aimed at strengthening the balance sheet and focusing on core airline IT and travel marketplace platforms [10][9] - Strategic priorities include multi-source content aggregation, distribution expansion, and growth in the digital payments business [16][18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macro environment but expressed confidence in achieving double-digit distribution bookings growth despite market softness [5][40] - The company expects to see stronger APAC group booking trends in Q2 and anticipates significant growth in air distribution bookings in the second half of 2025 [31][21] - Management reiterated that the revenue model is based on transaction volume rather than pricing, which may mitigate the impact of market pressures [40][39] Other Important Information - The company plans to use approximately $960 million in net proceeds from the sale of Hospitality Solutions primarily to pay down debt, reducing leverage significantly [10][29] - The company expects to generate pro forma adjusted EBITDA of greater than $630 million for 2025, excluding the impact of the Hospitality Solutions business [32][30] Q&A Session Summary Question: Can you expound more on the macro environment and its impact? - Management noted a shift in GDS market growth expectations from flat to down 1% to 2%, indicating that while there is price pressure, the need for travel remains strong [39][40] Question: What does the sale of Hospitality Solutions allow for in terms of refinancing? - The sale is seen as a significant credit-enhancing event, improving net debt to EBITDA and reducing interest expenses, which will facilitate more efficient future financings [41][42] Question: How quickly can cash proceeds from the sale be used to pay down debt? - The company plans to pay down debt shortly after receiving proceeds, within five days, and expects free cash flow to be greater than $200 million this year [49][48] Question: Can you provide insights on the softness in Q1 and its implications for Q2? - The softness was broad, affecting both corporate and leisure travel, with improvements expected in Q2 based on recent trends [58][59] Question: How is the implementation of new business going? - Management expressed confidence in the execution of new business, with no significant risks anticipated [75][76] Question: What are the gross margins for new agency business compared to existing volumes? - New business is expected to have slightly lower margins due to geographical mix and increased NDC volumes, but overall margins are expected to remain in line with previous years [88][90] Question: Can you provide updates on the Coforge partnership? - The partnership aims to accelerate product delivery and innovative solutions, with a mix of fixed fee and gainshare components [91][90]