Sabre (SABR) Q4 2025 earnings summary

Executive summary

• Achieved full-year 2025 revenue of $2.8 billion, up 1% year-on-year, and Normalized Adjusted EBITDA of $536 million, up 10% year-on-year, with positive pro forma free cash flow and significant debt reduction exceeding $1 billion, reducing pro forma net leverage by 25% versus year-end 2024.

• Transitioned toward an AI-native technology leader, launching agentic APIs, proprietary MCP server, and expanding partnerships with PayPal, Mindtrip, BizTrip, and Virgin Australia.

• Announced executive leadership changes to align with AI strategy and innovation.

• Completed the sale of the Hospitality Solutions business in July 2025, with results now presented as discontinued operations.

• Ended 2025 with $910 million in cash, including $98 million restricted for debt payments.

Financial highlights

• Full-year 2025 revenue was $2.8 billion, up 1% year-on-year, driven by distribution revenue growth; Q4 revenue was $667 million, up 3% year-on-year.

• Normalized Adjusted EBITDA for 2025 was $536 million, up 10% year-on-year, with margin expanding by 166 basis points to 19%; Q4 Normalized Adjusted EBITDA was $119 million, up 10%.

• Pro forma free cash flow for 2025 was $57 million, including $19 million in refinancing-related disbursements; Q4 pro forma free cash flow was $116 million.

• Ended 2025 with $910 million in cash, including $98 million restricted for debt repayment.

• Net debt at year-end was $3.74 billion, down from $4.50 billion a year earlier.

Outlook and guidance

• 2026 guidance projects mid-single digit year-on-year growth in air distribution volumes and revenue, driven by share gains, NDC, and LCC solutions.

• 2026 pro forma Adjusted EBITDA expected at approximately $585 million; Q1 2026 guidance is ~$130 million.

• 2026 free cash flow guidance is -$70 million, primarily due to $60 million in restructuring costs; excluding this, free cash flow would be near breakeven.

• Positive free cash flow anticipated in 2027 with continued mid-single digit revenue growth.

• Gross margin for 2026 expected in the 56%-57% range.