Sabre (SABR) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue declined 1% year-over-year to $687 million, with air distribution bookings down 1% but outperforming the broader GDS industry; net loss widened to $256 million, mainly due to higher tax provisions and a loss on debt extinguishment.

• Adjusted EBITDA and margin improved year-on-year, with Normalized Adjusted EBITDA up 6% to $127 million and margin rising to 19%.

• Over $1 billion in debt was repaid year-to-date, primarily using proceeds from the $1.1 billion sale of the Hospitality Solutions business completed July 3, 2025, which also extended debt maturities to 2029 and beyond.

• Cost reduction initiatives and cloud migration drove lower technology and SG&A expenses, supporting margin improvements.

• The company remains focused on free cash flow generation, innovation, and deleveraging the balance sheet.

Financial highlights

• Q2 2025 revenue was $687 million, down 1% year-over-year; normalized adjusted EBITDA was $127 million, up 6% year-over-year, and operating income rose to $89 million.

• Net loss for Q2 2025 was $256 million, compared to $69–$70 million loss in Q2 2024, mainly due to higher tax and refinancing costs.

• Pro forma free cash flow for Q2 was negative $2 million; reported free cash flow was negative $240 million, impacted by $227 million payment-in-kind interest from refinancing.

• Ended Q2 with $447 million in cash, rising to over $600 million after the Hospitality Solutions sale.

• Total bookings were 90 million, down 1% year-over-year; hotel distribution bookings grew 2% year-over-year; IT solutions passengers boarded increased 1%.

Outlook and guidance

• Full-year 2025 pro forma adjusted EBITDA guidance is $530–$570 million (+9–18% year-over-year), with pro forma free cash flow expected at $100–$140 million and year-end cash projected to exceed $750 million.

• Q3 2025 pro forma adjusted EBITDA is expected at $140–$150 million (+15–23% year-over-year), with positive free cash flow of $40–$50 million.

• Full-year air distribution bookings growth expected to be flat to low single digits, with scenarios for 0.5%, 2%, or 3.5% growth depending on second-half GDS industry trends.

• IT solutions revenue growth expected to resume in Q3 2025 as prior carrier de-migrations anniversary.

• Guidance reflects ongoing uncertainty in GDS industry volumes and macroeconomic conditions.