Sabre (SABR) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue reached $715 million, up 3% year-over-year, with Normalized Adjusted EBITDA up 23% to $150 million and Adjusted EBITDA up 25% to $141 million.

• Net income attributable to common stockholders was $849 million, primarily due to a significant gain from the sale of the Hospitality Solutions business, which closed in July 2025.

• Pro forma free cash flow for Q3 was $13 million, with full-year 2025 guidance of $70 million and a projected year-end cash balance of $800 million.

• Strategic priorities focused on free cash flow generation, deleveraging, innovation (including AI and payments), and expanding NDC integrations and partnerships.

• The company now operates as a single reportable segment focused on its global travel marketplace and airline technology solutions.

Financial highlights

• Q3 2025 revenue was $715 million, up 3% year-over-year, with distribution revenue up $24 million and IT Solutions revenue flat at $140 million.

• Normalized Adjusted EBITDA grew 23% year-over-year to $150 million, margin expanding to 21%; Adjusted EBITDA was $141 million, up 25% year-over-year.

• Operating income for Q3 2025 was $94 million, up from $58 million in Q3 2024.

• Free cash flow for Q3 was $13 million; ended the quarter with $683 million in cash.

• Net debt decreased to $3.66 billion from $4.50 billion year-over-year.

Outlook and guidance

• Q4 2025 air distribution bookings growth expected between 6% and 8%, with a midpoint of 7%, but impacted by a government shutdown.

• Full-year 2025 pro forma Adjusted EBITDA expected to be $530 million, up 9% year-over-year, with pro forma free cash flow of $70 million and year-end cash of $800 million.

• Fourth quarter pro forma Adjusted EBITDA guidance is $110 million, including a $10-$12 million impact from the government shutdown.

• Anticipate mid-single-digit air bookings growth in 2026, supported by new product launches.

• Modest growth in IT solutions revenue expected for the remainder of 2025.