Sabre (SABR) Up 31.3% Since Last Earnings Report: Can It Continue?

A month has gone by since the last earnings report for Sabre (SABR). Shares have added about 31.3% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Sabre due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for Sabre Corporation before we dive into how investors and analysts have reacted as of late.

Sabre Posts Narrower-Than-Expected Q4 Loss, Revenues Rise Y/Y

Sabre reported better-than-expected results for the fourth quarter of 2025. SABR reported an adjusted loss of 1 cent per share for the fourth quarter, which was way narrower than the year-ago quarter’s loss of 8 cents as well as the Zacks Consensus Estimate of a loss of 7 cents.

Sabre reported revenues of $667 million for the quarter ended Dec. 31, 2025, which beat the Zacks Consensus Estimate of $653.4 million. The figure rose 3% year over year on higher air bookings and increased rates.

Sabre’s Q4 in Detail

Distribution revenues rose 5% to $527 million, primarily driven by an increase in air distribution bookings, a favorable travel supplier mix and rate impacts. Our model estimate for Distribution’s revenues was pegged at $513.3 million, indicating 2.7% year-over-year growth.

IT Solutions’ revenues were $140 million, down 4% from the year-ago quarter. Our model estimate for IT Solutions’ revenues was pegged at $141.8 million.

Sabre reported normalized adjusted EBITDA of $119 million, which improved from the year-ago quarter’s $108 million. It also surpassed management’s previous guidance of $110 million. The normalized adjusted EBITDA margin improved 110 basis points year over year to 17.8% in the fourth quarter of 2025.

Sabre’s Balance Sheet and Cash Flow

Sabre exited the December-end quarter with cash, cash equivalents and restricted cash of $910 million compared with the previous quarter’s $447 million.

During the fourth quarter, the company generated operating cash flow and free cash flow of $139 million and $116 million, respectively. During full-year 2025, cash used in operating activities amounted to $109 million, and negative free cash flow was $192 million.

Sabre Initiates Guidance for Q1 & FY26

Sabre initiated guidance for the first quarter and full-year 2026. SABR anticipates pro-forma (which excludes the last year’s divested Hospitality Solutions business) revenue growth in the mid-single-digit percentage range. It expects pro-forma adjusted EBITDA to be around $130 million.

For 2026, Sabre expects its pro-forma revenues to grow in the mid-single-digit percentage range. Pro-forma adjusted EBITDA is projected to be approximately $585 million. The company expects to end 2026 with a negative pro-forma free cash flow of approximately $70 million.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

The consensus estimate has shifted -1100% due to these changes.

VGM Scores

At this time, Sabre has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a score of B on the value side, putting it in the second quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Interestingly, Sabre has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Sabre is part of the Zacks Internet - Software and Services industry. Over the past month, VeriSign (VRSN), a stock from the same industry, has gained 10.6%. The company reported its results for the quarter ended December 2025 more than a month ago.

VeriSign reported revenues of $425.3 million in the last reported quarter, representing a year-over-year change of +7.6%. EPS of $2.23 for the same period compares with $2.00 a year ago.

For the current quarter, VeriSign is expected to post earnings of $2.38 per share, indicating a change of +13.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +8.7% over the last 30 days.

VeriSign has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.

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This article originally published on Zacks Investment Research (zacks.com).

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