What factors drove the changes in Sabre's revenue and profit?

What were the key takeaways from Sabre's earnings call?

Did Sabre beat or miss consensus estimates last quarter?

What is the market's earnings forecast for Sabre next quarter?

What guidance did Sabre's management provide for the next earnings period?

What is Sabre's gross profit margin?

What is Sabre's latest dividend and current dividend yield?

What were the key takeaways from Sabre’s earnings call?

**Key Takeaways:**
- **Revenue Growth**: Q3 revenue up 3% YoY to $715M, driven by strong September air bookings (+7% YoY) and new business wins.
- **AI Innovation**: Launched Agentic APIs and Continuous Revenue Optimizer, with 41 live NDC integrations.
- **Financial Strength**: EBITDA margin improved 340bps to 21%, but free cash flow revised down to $70M due to timing issues.
- **Risks**: Government shutdown impacting Q4 air bookings by 3ppt, but 2026 outlook for mid-single-digit growth remains intact.
- **Payments Expansion**: $20B annual transaction volume, with 40% YoY growth in gross spend.

**【CEO Opening Remarks】**
- Q3 revenue grew 3% YoY to $715M, driven by strong September air bookings (+7% YoY) and growth strategies contributing $3M in September.
- Air distribution bookings grew 2% YoY, with 10ppt contribution from new business wins (e.g., World Travel Inc. conversion).
- Gross margin pressures from FX and lower-margin product sales, but EBITDA margin improved 340bps to 21%.
- Sabre Payments business processes $20B annually, with Q3 gross spend up 40% YoY.
- AI initiatives include Agentic APIs and Continuous Revenue Optimizer, with 41 live NDC integrations.
- 2026 outlook: Mid-single-digit air bookings growth driven by LCC solution launch and new agency wins.

**【CFO Financial Commentary】**
- Q3 GAAP net income: $420M; Non-GAAP EPS: $1.08 (vs. $0.95 prior year).
- Free cash flow: $13M (Q3) vs. $40M guidance, due to delayed receipts and higher disbursements.
- Full-year 2025 free cash flow revised to $70M (from $100M), with $800M cash on hand.
- Net leverage expected to drop 50% YoY, with $1B+ debt repayment in 2025.
- Q4 air bookings growth guide: 6-8% YoY (vs. prior 6-14%), reflecting 3ppt impact from government shutdown.

**【Q&A Highlights】**
- **Government Shutdown Impact**: U.S. military/government bookings down 3ppt in Q4, but expected to normalize in 2026.
- **NDC Mix**: 2-3% of air bookings, growing rapidly with 41 live integrations.
- **Payments Growth**: Sabre Direct Pay and Conferma processing $20B annually, targeting 100,000 connected hotels by year-end.
- **Agentic AI Monetization**: API fees and IT solutions; Sabre positioned as intermediary for AI-driven travel agents.
- **2026 Bookings Growth**: 5-7% YoY, driven by LCC solution (50+ new carriers) and 100+ new agency wins.
- **Booking Fee Stability**: Non-transactional revenue offsetting mix headwinds, with no immediate margin pressure.

Sabre Corporation (SABR) Q3 2025 Earnings Call Transcript

- **Strategic Momentum**: 6% YoY EBITDA growth, $1 billion debt reduction, and 30 million incremental bookings target for 2025.
- **Near-Term Challenges**: 1% Q2 air bookings decline due to GDS industry weakness and mix issues; 6-month delay in multi-source LCC launch.
- **Financial Health**: Pro forma free cash flow $100-140 million for 2025, net leverage down 50% YoY, and 19% EBITDA margin.
- **Growth Drivers**: SabreMosaic AI products signed with 9 airlines; Q3/Q4 bookings growth scenarios of 2-14% YoY.

**【CEO Summary Section】**
- **Strategic Focus**: Emphasized generating free cash flow and delevering the balance sheet, alongside driving growth through innovation. Normalized adjusted EBITDA grew 4% year-on-year, with debt reduced by $1 billion (20%) in 2025.
- **Q2 Performance**: Air distribution bookings declined 1% YoY, underperforming expectations due to 9-point headwinds from GDS industry weakness and Sabre mix. Hotel distribution bookings grew 2%, and IT solutions passengers boarded increased 1%.
- **Growth Strategies**: New business signings added $2.5 million in July, tracking toward 30 million incremental bookings for 2025. Multi-source low-cost carrier (LCC) solution launch delayed 6 months to early 2026.
- **Outlook**: Revised 2025 air distribution bookings growth to flat to low single digits, with Q3/Q4 growth scenarios of 2-6% and 6-14% YoY, respectively. SabreMosaic AI-powered products signed with 9 airlines, including Avelo Airlines.

**【CFO Financial Commentary】**
- **Q2 Results**: Revenue $687 million (-1% YoY), normalized adjusted EBITDA $127 million (+6% YoY). Pro forma free cash flow negative $2 million, with $447 million cash on hand (rising to $600 million post-Hospitality Solutions sale).
- **Margins**: Gross margin down 110bps YoY due to U.S. dollar weakness and mix shifts. EBITDA margin improved 120bps to 19%. Q2 bookings shortfall reduced EBITDA by ~$20 million.
- **Debt Management**: $1.325 billion debt refinanced in Q2, extending 60% of debt to 2029+. Year-end 2025 net leverage expected to drop 50% vs. 2023. 2025 free cash flow guidance: $100-140 million.

**【Q&A Highlights】**
- **Guidance Rationale**: Revised outlook reflects incremental GDS weakness in June-July, including corporate and military travel declines. Sabre's geographic mix (e.g., underperforming Mexico, Australia) exacerbated impact.
- **NDC Progress**: 38 live NDC connections, with SabreMosaic multi-source platform leading industry. Q3/Q4 bookings growth from new business signings expected to offset GDS headwinds.
- **Cost Efficiency**: Annualized cost savings of $400 million over 2-3 years. 2026 outlook: High single-digit air distribution growth driven by new business, with EBITDA benefiting from disciplined expense management.
- **Multi-Source LCC Delay**: Technical execution challenges caused 6-month delay, but solution will expand access to 50+ new LCCs beyond existing 150+.


Sabre Corporation (SABR) Q2 2025 Earnings Call Transcript

- **Resilient Q1 Performance**: Flat revenue but 110bps margin expansion to 19.3%, offsetting macro headwinds.
- **Hospitality Sale Impact**: $1.1B sale reduces leverage by 1x to 5.4x, freeing capital for core growth.
- **Double-Digit Growth Confirmed**: Air/hotel bookings to grow >20% YoY in H2, driven by $30M+ new agency wins.
- **AI-Driven Innovation**: SabreMosaic AI products signed with 7+ airlines, including Alaska Airlines PSS migration.
- **Free Cash Flow Target**: >$200M for 2025, supported by $65M interest savings and 30%+ payments GMV growth.

**【CEO Opening Remarks】**
- Q1 2025 revenue was flat YoY, but adjusted EBITDA margin improved 110bps to 19.3% due to cost management and lower tech expenses.
- Full year GDS industry growth revised down to -1% to -2% YoY, driven by airline traffic softness and capacity adjustments.
- Reaffirmed double-digit air and hotel B2B distribution bookings growth for 2025, with Q2 bookings expected to grow low-single digits and Q3+ accelerating to >20% YoY.
- Sold Hospitality Solutions for $1.1B, using proceeds to reduce debt and focus on core airline IT and travel platforms.

**【CFO Financial Update】**
- Q1 GAAP net income: $420M; Non-GAAP EPS: $1.08 (vs. $0.95 consensus).
- Pro forma net leverage expected to drop ~1x to 5.4x in 2025 (from 6.3x pre-transaction).
- 2025 free cash flow guidance: >$200M, driven by $65M interest savings and $30M incremental air segments.
- Q2 2025 pro forma adjusted EBITDA: ~$140M, with full year >$630M.

**【Q&A Key Highlights】**
- **Debt Repayment Strategy**: $825M of $960M proceeds used to pay down Term Loan B; remaining $135M for strategic investments.
- **SabreMosaic Wins**: 4 full-stack wins in 2024, including Alaska Airlines (Sabre PSS migration). New wins with Aeromexico, Avelo, GOL focus on AI-powered offer management.
- **Q1 Booking Softness**: 3% YoY decline driven by APAC group bookings (-75% of impact) and U.S. Gov/Military (-25%). Q2 improvement expected from APAC group trends and agency implementations.
- **2026 Growth Outlook**: CEO confident in continued acceleration, though no formal guidance yet.
- **Coforge Partnership**: 13-year deal to accelerate AI/ML product delivery; financial terms include fixed fees and gain-sharing based on commercial outcomes.

Sabre (SABR)-7 May 25-2025 Q1 Earnings call transcript

- **2024 Success**: Adjusted EBITDA up 53% to $517M, driven by 4% revenue growth and 550bps margin expansion.
- **2025 Growth**: Target >$700M EBITDA with 30M+ new air bookings and 10%+ CRS transaction growth.
- **Strategic Focus**: Open marketplace expansion, AI-driven efficiency, and cloud cost savings ($150M+ benefits realized).
- **Risks & Mix**: Lower booking fees from new business (e.g., North America OTA) will slightly reduce gross margin, but gross profit dollars will drive EBITDA growth.
- **AI & Innovation**: Near-term focus on developer productivity; long-term e-commerce opportunities with Google's Gemini AI integration.


**【CEO Business Highlights】**
- **2024 Financial Performance**: Adjusted EBITDA reached $517 million, up 53% YoY, driven by 4% revenue growth and 550bps margin expansion. Free cash flow was negative $14 million due to debt refinancing costs.
- **Growth Strategies**: Focused on modern tech stack, open marketplace, and AI-powered retailing. Signed 30-40 million new air distribution segments in 2024, with 2025 bookings expected to grow >10%.
- **Technology Transformation**: 99% cloud migration achieved, delivering $150M+ cost benefits. SabreMosaic signed with Virgin Australia, Riyadh Air, and Air Serbia.

**【CFO Financial Outlook】**
- **2025 Guidance**: 
  - Revenue: High single-digit growth
  - Adjusted EBITDA: >$700 million
  - Free Cash Flow: >$200 million
- **Key Drivers**: 
  - Air bookings: +30M YoY, with 2/3 from new wins
  - Hospitality Solutions: CRS transactions up >10% (Hyatt accounts for ~50% growth)
  - Gross margin: Slightly down due to lower booking fees from new business mix
- **Cost Management**: Tech costs to decline YoY; SG&A up slightly

**【Q&A Key Takeaways】**
- **Implementation Risks**: New agency wins (e.g., North America OTA) require significant client-side effort but are on track for 2025 ramp-up.
- **NDC Growth**: 27 live NDC integrations, with NDC bookings <5% of total but expected to accelerate post-2025.
- **AI Impact**: Short-term focus on developer productivity and customer service efficiency; long-term e-commerce opportunities.
- **Competitive Position**: Industry share up 1ppt YoY; shifting focus to total distribution bookings growth (including NDC/LCC) rather than GDS-only metrics.


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