Sabre Corp
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.86%.
Did SABR Beat Earnings? Q2 2025 Results
Sabre delivered a disappointing second quarter, posting an adjusted loss of $0.02 per share against a consensus estimate of $0.02 profit, missing by 219.76%, as revenue slipped 1.1% year over year to $687.15 million amid softer-than-expected air distribution bookings. The headline numbers, however, tell only part of the story: a $85.18 million loss on debt extinguishment, tied to the company's aggressive refinancing of $1.32 billion in debt through 2030, helped widen the GAAP net loss to $256.36 million from $69.76 million a year ago. On the brighter side, operating margin expanded 6 percentage points to 13%, and Adjusted EBITDA grew 7% to $118.25 million, reflecting the benefits of cloud migration savings and prior restructuring. CEO Kurt Ekert characterized the volume pressure as transitory, and the company, buoyed by proceeds from its $1.10 billion Hospitality Solutions divestiture, now guides full-year pro forma Adjusted EBITDA of $530 million to $570 million, with an end-of-year cash balance expected to exceed $750 million. Some analysts, though, view the stock as oversold given the transformation underway.
- Operating margin improvement of 6 percentage points YoY driven by disciplined cost management and lower technology costs from cloud migration
- Lower labor and professional services costs from cost reduction plan implemented in prior periods
- Decrease in tax litigation reserves
- Decrease in technology expenses from cloud migration cost savings
- Revenue decline driven by lower air distribution bookings and de-migrated carriers
“Second quarter results reflect weaker than anticipated air distribution bookings, as accelerating volumes from our growth strategies were offset by a challenging operating environment. While we anticipate that current volume pressure is transitory, we are updating our full-year outlook to reflect our latest growth assumptions.”
Sabre CEO, on the earnings call
Forward Guidance & Outlook
Sabre provided Q3 and FY 2025 pro forma guidance across three scenarios based on GDS industry air distribution volume growth. For Q3 2025: at 2% air distribution volume growth, pro forma Adjusted EBITDA of ~$140M (+15% YoY) and pro forma FCF of ~$40M; at 4% growth, ~$145M EBITDA (+19% YoY) and ~$45M FCF; at 6% growth, ~$150M EBITDA (+23% YoY) and ~$50M FCF. Revenue expected to grow low to mid single digits YoY in Q3. For FY 2025: at 0.5% air distribution volume growth, pro forma Adjusted EBITDA of ~$530M (+9% YoY) and pro forma FCF of ~$100M; at 2% growth, ~$550M (+13% YoY) and ~$120M FCF; at 3.5% growth, ~$570M (+18% YoY) and ~$140M FCF. FY revenue expected flat to low single digit YoY growth. End-of-year cash balance expected to exceed $750 million.
SABR YoY Financials
SABR Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.