Sabre reports third quarter 2025 results (Form 8-K)

Sabre reports third quarter 2025 results

Q3'25 revenue and Adjusted EBITDA in line with guidance

Business Highlights:

•Repaid ~$825 million of debt from the proceeds of the Hospitality Solutions sale

•Grew Distribution revenue 4 percentage points YoY, driven by continued acceleration from the ramp of growth strategies

•Strong operating margin improvement YoY of 5 percentage points through revenue growth, disciplined cost management and lower technology costs

•Announced agentic APIs built for travel, which we believe will power how travel will be searched, booked, and serviced in the future

•Continued commercial momentum in air distribution

Third Quarter 2025 Financial Results:

•Third quarter revenue of $715 million, up 3% from Q3'24

•Operating income of $94 million and operating margin of 13%, up 5 percentage points from Q3'24

•Net income attributable to common stockholders of $849 million

•Adjusted EBITDA(1) of $141 million, up 25% from Q3'24

•Normalized Adjusted EBITDA(1) of $150 million, up 23% from Q3'24

•Ended quarter with cash balance of $683 million

SOUTHLAKE, Texas - November 5, 2025 - Sabre Corporation ("Sabre" or the "Company") (NASDAQ: SABR) today announced financial results for the quarter ended September 30, 2025.

"Our third quarter results reflect solid execution and improving momentum across our business," said Kurt Ekert, President and CEO of Sabre. "We delivered positive growth in quarterly air distribution bookings driven by strong growth in September. This resulted in year-on-year growth in both revenue and Adjusted EBITDA. In what has been a dynamic year, recent optimistic commentary from the broader travel industry provides us confidence that we are well positioned as we head into next year."

Ekert continued, "We are committed to delevering the balance sheet and driving sustainable growth through innovation. Consistent with that, during the quarter, we repaid approximately $825 million of debt, and we were first in the industry to announce agentic APIs for travel. We believe AI presents an incredible opportunity within the travel industry and these tools will enable a new era of AI-driven retailing. Looking forward, we believe focused execution of our strategic priorities positions Sabre for long-term growth and value creation."

Q3 2025 Financial Summary

Third quarter revenue totaled $715 million, compared to $691 million in the third quarter of 2024.

•Distribution revenue increased by $24 million, or 4%, to $575 million driven by a $16 million increase in transaction-based revenue primarily due to an increase in air and hotel distribution bookings and favorable travel supplier mix and rate impacts as well as an $8 million increase in product-based revenue

◦Total bookings, net of cancellations, were 95 million, an increase of 3% from third quarter 2024 levels

◦Average booking fee totaled $6.05, an increase versus $5.94 in the third quarter of 2024

•IT Solutions revenue of $140 million was flat versus the third quarter of 2024

Operating income totaled $94 million versus $58 million in the third quarter of 2024. The improvement in operating results was driven by lower labor and professional services and the increase in revenue described above, partially offset by increased incentive expenses.

Net income from continuing operations totaled $48 million, versus a loss of $62 million in the third quarter of 2024. The increase is due to higher operating income as described above and a reduction in the provision for income tax expense from continuing operations.

Net income attributable to common stockholders totaled $849 million, versus a loss of $63 million in the third quarter of 2024. The increase in net income attributable to common stockholders in the third quarter of 2025 was primarily driven by the gain on sale recognized from the disposition of Hospitality Solutions in the quarter and the items impacting net income from continuing operations described above.

Normalized Adjusted EBITDA was $150 million, versus $121 million in the third quarter of 2024. The improvement in Normalized Adjusted EBITDA was driven by lower labor and professional services and the increase in revenue described above, partially offset by increased incentive expenses.

With regard to Sabre's third quarter 2025 cash flows (versus prior year):

•Cash provided by operating activities totaled $34 million (vs. $24 million)

•Cash used in investing activities totaled $20 million (vs. $36 million provided by)

•Cash used in financing activities totaled $839 million (vs. $8 million)

•Capitalized expenditures totaled $20 million (vs. $19 million)

Free Cash Flow(1) was $13 million, versus Free Cash Flow of $5 million in the third quarter of 2024.

Pro Forma Free Cash Flow(1) was $13 million in the third quarter of 2025.

Financial Highlights (in thousands, except for EPS; unaudited):			Three Months Ended September 30,																		Nine Months Ended September 30,
			2025						2024						% Change (B/W)						2025						2024						% Change (B/W)
Total Company:
Revenue			$715,183						$691,300						3						$2,104,458						$2,099,983						-
Distribution Revenue			$575,308						$550,996						4						$1,690,189						$1,673,848						1
IT Solutions Revenue			$139,875						$140,304						-						$414,269						$426,135						(3)
Operating Income			$93,625						$57,841						62						$274,154						$195,758						40
Operating Margin			13.1%						8.4%												13.0%						9.3%
Net income (loss) attributable to common stockholders			$848,744						$(62,818)						NM						$627,716						$(204,061)						408
Diluted net income (loss) per share attributable to common stockholders (EPS)			$0.12						$(0.16)						175						$(0.40)						$(0.52)						23
Net Income (Loss) Margin			118.7%						(9.1)%												29.8%						(9.7)%
Adjusted EBITDA(1)			$140,633						$112,275						25						$389,708						$348,894						12
Adjusted EBITDA Margin(1)			19.7%						16.2%												18.5%						16.6%
Normalized Adjusted EBITDA(1)			$150,008						$121,483						23						$416,864						$377,034						11
Normalized Adjusted EBITDA Margin(1)			21.0%						17.6%												19.8%						18.0%
Adjusted Net Loss(1)			$(4,880)						$(18,868)						74						$(9,917)						$(46,352)						79
Adjusted EPS(1)			$(0.01)						$(0.05)						80						$(0.03)						$(0.12)						75
Cash provided by (used in) operating activities			$33,686						$24,393						38						$(248,155)						$(5,463)						NM
Cash (used in) provided by investing activities			$(20,269)						$35,543						(157)						$(50,352)						$(10,307)						(389)
Cash (used in) provided by financing activities			$(838,908)						$(8,075)						NM						$(804,408)						$46,049						NM
Capitalized expenditures			$(20,269)						$(19,291)						(5)						$(59,419)						$(64,841)						8
Free Cash Flow(1)			$13,417						$5,102						163						$(307,574)						$(70,304)						(337)
Pro Forma Free Cash Flow(1)			$13,417						$14,310						(6)						$(58,732)						$(42,164)						(39)
Net Debt (total debt, less cash and cash equivalents)			$3,660,373						$4,496,441
Volume Metrics:
Total Bookings			95,135						92,796						3						281,789						282,235						-
Air Bookings			80,542						78,648						2						238,514						240,043						(1)
Lodging, Ground and Sea Bookings			14,593						14,148						3						43,275						42,192						3
Passengers Boarded			182,212						177,272						3						519,391						514,104						1
(1)Indicates non-GAAP financial measure; see descriptions and reconciliations below.
NM - not meaningful

Business and Financial Pro Forma Financial Outlook

The Company is providing the fourth quarter and full year 2025 outlook included below on a pro forma basis to give effect to the sale of the Hospitality Solutions business, and we have removed the impact of the $227 million of payment-in-kind interest that was recorded in conjunction with the refinancing activity in the second quarter of 2025, from Pro Forma Free Cash Flow. Pro forma adjustments include the impact of classifying Hospitality Solutions as a discontinued operation in accordance with GAAP and an adjustment to remove costs previously allocated to Hospitality Solutions, but that do not meet the GAAP definition for discontinued operations reporting. We believe this presentation will enhance investors' ability to evaluate and compare the Company's operations on a go-forward basis.

With respect to the fourth quarter and full-year 2025 financial outlook below:

•Fourth quarter Pro Forma Adjusted EBITDA guidance consists of expected net loss from continuing operations of approximately $56 million; less impact of acquisition-related amortization of approximately $8 million; expected stock-based compensation expense of approximately $11 million; expected depreciation and amortization of property and equipment and amortization of capitalized implementation costs of approximately $19 million; expected interest expense, inclusive of issuance costs and debt discounts, net of approximately $109 million; expected income tax provision of approximately $8 million; less expected pro forma adjustments of approximately $10 million associated with costs previously allocated to Hospitality Solutions.

•Fourth quarter Pro Forma Free Cash Flow guidance consists of the expected cash from continuing operations operating activities of approximately $150 million less expected additions to property and equipment of approximately $20 million.

•Full-year Pro Forma Adjusted EBITDA guidance consists of expected net loss from continuing operations of approximately $210 million; less impact of acquisition-related amortization of approximately $31 million; expected stock-based compensation expense of approximately $46 million; expected depreciation and amortization of property and equipment and amortization of capitalized implementation costs of approximately $74 million; expected interest expense, inclusive of issuance costs and debt discounts, net of approximately $441 million; expected loss on extinguishment of debt, foreign exchange, and other expenses of approximately $81 million; expected provision for income taxes of approximately $29 million; less expected pro forma adjustments of approximately $37 million associated with costs previously allocated to Hospitality Solutions.

•Full year Pro Forma Free Cash Flow guidance consists of the expected usage of cash from continuing operations operating activities of approximately $99 million, less expected additions to continuing operations property and equipment of approximately $80 million, and expected pro forma adjustments of approximately $249 million, of which $227 million represents payment-in-kind interest that was recorded in conjunction with the refinancing activity in the second quarter of 2025 and the remainder represents adjustments associated with costs previously allocated to Hospitality Solutions and other estimated impacts of the divestiture.

Fourth Quarter and Full Year 2025 Pro Forma Financial Outlook

Sabre's fourth quarter and full year 2025 outlook is set forth below:

			Q4 2025			FY 2025
Air Distribution Volumes			6% to 8% YoY growth			Positive YoY growth
Revenue			Low single digit YoY growth			Flat YoY growth
Pro Forma Adjusted EBITDA			~$110M +2% YoY			~$530M +9% YoY
Pro Forma Free Cash Flow			~$130M			~$70M
Ending Cash Balance						~$800M

Conference Call

Sabre will conduct its third quarter 2025 investor conference call today at 9:00 a.m. ET. The live webcast and accompanying slide presentation can be accessed via the Investor Relations section of our website, investors.sabre.com. A replay of the event will be available on the website for at least 90 days following the event.

About Sabre

Sabre Corporation is a leading technology company that takes on the biggest opportunities and solves the most complex challenges in travel. Sabre harnesses speed, scale and insights to build tomorrow's technology today - empowering airlines, hoteliers, agencies and other partners to retail, distribute and fulfill travel worldwide. Headquartered in Southlake, Texas, USA, with employees across the world, Sabre serves customers in more than 160 countries globally. For more information visit  www.sabre.com.

Website Information

Sabre routinely posts important information for investors on the Investor Relations section of its website, investors.sabre.com, on its LinkedIn account, and on its X account, @Sabre_Corp. The Company intends to use the Investor Relations section of its website, its LinkedIn account, and its X account as a means of disclosing material, non-public information and for complying with disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investor Relations section of Sabre's website, its LinkedIn account and its X account, in addition to following its press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, Sabre's website, its LinkedIn account or its X account is not incorporated by reference into, and is not a part of, this document.

Supplemental Financial Information

In conjunction with today's earnings report, a file of supplemental financial information will be available on the Investor Relations section of our website, investors.sabre.com.

Industry Data

This release contains industry data, forecasts and other information that Sabre obtained from industry publications and surveys, public filings and internal company sources, and there can be no assurance as to the accuracy or completeness of the included information. Statements as to Sabre's ranking, market position, bookings share and market estimates are based on independent industry publications, government publications, third-party forecasts and management's estimates and assumptions about our markets and our internal research. The Company has not independently verified this third-party information nor has it ascertained the underlying economic assumptions relied upon in those sources, and cannot assure you of the accuracy or completeness of this information.

Note on Non-GAAP Financial Measures