Sabre (NASDAQ:SABR) Posts Earnings Results

Key Points

• Sabre raised its 2026 outlook, targeting approximately $600 million in pro forma adjusted EBITDA and negative $65 million in free cash flow, while reaffirming revenue and air-distribution bookings growth expectations.
• Second-quarter revenue increased 4% to $712 million, exceeding estimates, while adjusted EBITDA rose 19% to $151 million and free cash flow reached $10 million. Marketplace and hotel revenue grew strongly, but the company reported a wider-than-expected loss of $0.17 per share.
• Air bookings faced pressure from the Middle East conflict and higher fuel prices, while Sabre plans to increase investment in AI, Sabre Mosaic and lodging technology. Analysts remain cautious, with the stock carrying an average “Reduce” rating and a $1.97 price target.

Sabre (NASDAQ:SABR - Get Free Report) released its quarterly earnings results on Thursday. The information technology services provider reported ($0.17) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.04) by ($0.13), FiscalAI reports. The firm had revenue of $711.96 million for the quarter, compared to analyst estimates of $697.40 million.

Here are the key takeaways from Sabre's conference call:

• Sabre raised its 2026 outlook, increasing pro forma adjusted EBITDA guidance to approximately $600 million and free cash flow guidance to approximately negative $65 million, while reaffirming revenue and air distribution bookings growth expectations.
• Second-quarter revenue rose 4% to $712 million, normalized adjusted EBITDA increased 19% to $151 million, and free cash flow was positive $10 million. Marketplace revenue grew 6%, hotel revenue accelerated 11%, and Payments Suite gross spend increased more than 30% year over year.
• Air bookings were pressured by the Middle East conflict and higher fuel prices, which together reduced global growth by an estimated 300–400 basis points in the quarter. Sabre expects these headwinds to persist, though gradually dissipate, through the rest of 2026.
• Sabre is increasing second-half technology investment, including spending on AI, Sabre Mosaic, and lodging. Active agentic-AI pilot and production partners doubled to 60, while more than 400 developers participated in a hackathon using Sabre’s APIs and MCP server.
• Airline Technology revenue is expected to return to $140–$150 million per quarter in the third and fourth quarters, with full-year year-over-year growth reaffirmed. Sabre also extended its accounts-receivable securitization facility through 2029 and now has no debt maturities until that year.

Sabre Price Performance

Shares of Sabre stock traded down $0.17 during trading on Friday, hitting $2.07. 5,629,028 shares of the stock were exchanged, compared to its average volume of 3,753,629. The firm's 50-day moving average price is $1.87 and its 200 day moving average price is $1.62. The stock has a market cap of $818.29 million, a price-to-earnings ratio of 1.25 and a beta of 0.97. Sabre has a 12-month low of $0.81 and a 12-month high of $2.30.

Institutional Trading of Sabre

Hedge funds and other institutional investors have recently bought and sold shares of the business. Discerene Group LP boosted its position in shares of Sabre by 34.9% during the 4th quarter. Discerene Group LP now owns 38,523,820 shares of the information technology services provider's stock worth $52,392,000 after acquiring an additional 9,958,212 shares in the last quarter. Par Capital Management Inc. raised its position in shares of Sabre by 57.7% during the 2nd quarter. Par Capital Management Inc. now owns 19,350,000 shares of the information technology services provider's stock worth $61,146,000 after acquiring an additional 7,082,948 shares in the last quarter. State Street Corp lifted its stake in Sabre by 2.4% during the fourth quarter. State Street Corp now owns 14,813,630 shares of the information technology services provider's stock worth $20,147,000 after purchasing an additional 343,209 shares during the last quarter. Geode Capital Management LLC lifted its stake in Sabre by 2.2% during the fourth quarter. Geode Capital Management LLC now owns 9,273,047 shares of the information technology services provider's stock worth $12,614,000 after purchasing an additional 197,433 shares during the last quarter. Finally, Saba Capital Management L.P. boosted its holdings in Sabre by 46.7% in the fourth quarter. Saba Capital Management L.P. now owns 8,879,182 shares of the information technology services provider's stock valued at $12,076,000 after purchasing an additional 2,828,617 shares in the last quarter. 89.42% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Separately, Weiss Ratings upgraded shares of Sabre from a "sell (d+)" rating to a "hold (c-)" rating in a report on Thursday, July 2nd. Five investment analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, Sabre currently has an average rating of "Reduce" and an average target price of $1.97.

Key Headlines Impacting Sabre

Here are the key news stories impacting Sabre this week:

• Positive Sentiment: Second-quarter revenue increased 4% to approximately $712 million, exceeding analyst expectations of about $697 million. Growth was supported by Sabre’s Marketplace business and stronger-than-expected air-distribution bookings. Sabre Q2 Loss Widens, Revenues Beat Estimates on Marketplace Growth Sabre's air distribution bookings surpass Q2 expectations
• Positive Sentiment: Management raised its 2026 outlook, citing stronger adjusted EBITDA and cash flow, and now anticipates approximately $600 million in pro forma adjusted EBITDA. Sabre anticipates approximately $600 million 2026 pro forma adjusted EBITDA
• Neutral Sentiment: Sabre plans to increase investment in artificial intelligence, which could improve its technology platform and long-term competitiveness but may limit near-term profitability and cash generation. Sabre AI investment and outlook
• Negative Sentiment: Adjusted earnings were a major disappointment: Sabre reported a loss of $0.17 per share, compared with estimates ranging from a $0.04 to $0.07 loss, and versus a $0.02 loss in the year-ago quarter. The wider loss overshadowed the revenue beat. Sabre Reports Q2 Loss, Beats Revenue Estimates

About Sabre

Sabre Corporation is a leading travel technology company that provides software, data, mobile and distribution solutions to the global travel industry. Through its Sabre travel marketplace, the company operates one of the world's principal global distribution systems (GDS), connecting travel buyers and suppliers across airlines, hotels, car rental companies and other travel providers. Sabre's suite of products includes reservation and ticketing systems for travel agencies, comprehensive airline operations and passenger services solutions, as well as hospitality property management and central reservation systems for hotels.

Established in 1960 as a joint venture between American Airlines and IBM, Sabre introduced one of the first computerized airline reservation systems, pioneering the automation of ticketing and inventory control.

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