What is the revenue and EPS growth rate for Sabre year over year?

What is Sabre's gross profit margin?

Did Sabre beat or miss consensus estimates last quarter?

What does Sabre do and what are its main business segments?

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

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

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

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

**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

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

SABR

SABR fundamentals

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