Sabre (SABR) Q1 2026 earnings summary

Executive summary

• Achieved 8% year-over-year revenue growth in Q1 2026 to $760 million, with 21% increase in Normalized Adjusted EBITDA and 6% growth in air distribution bookings, the highest in over two years, surpassing expectations.

• Marketplace and Airline Technology segments delivered strong revenue growth, with continued share gains and innovation in AI-powered travel solutions.

• Operating income rose 27% year-over-year to $116 million, with margin expanding from 13% to 15%.

• Sale of Hospitality Solutions business in July 2025 generated significant cash proceeds, used to pay down debt; results now presented as discontinued operations.

• Launched agentic AI travel experiences and partnerships, including ChatGPT OpenAI plugin for Virgin Australia and MindTrip/PayPal.

Financial highlights

• Q1 2026 revenue reached $760 million, up 8% year-over-year, with Marketplace revenue up 9% to $618 million and Airline Technology revenue up 7% to $142 million.

• Normalized Adjusted EBITDA was $169 million, up 21% year-over-year, with margin up 235 basis points to 22.2%.

• Operating income was $116 million, up 27% year-over-year, with operating margin at 15%-15.2%.

• Free cash flow was negative $155 million, impacted by higher interest payments, restructuring, and capex.

• Ended Q1 with $665 million in cash.

Outlook and guidance

• Reaffirmed full-year 2026 guidance for Pro Forma Adjusted EBITDA (~$585 million, +9% YoY) and Free Cash Flow (~negative $70 million).

• Air distribution bookings and revenue expected to grow in the low- to mid-single-digit range for 2026.

• Q2 2026 revenue growth anticipated to be flat to nominal, with Pro Forma Adjusted EBITDA expected at approximately $130 million.

• Gross margin for 2026 expected at the higher end of 56%-57%.

• Outlook assumes Middle East conflict subsides in Q2, with gradual recovery in air bookings through summer and fall.