Sabre (NASDAQ:SABR) Announces Earnings Results

Sabre (NASDAQ:SABR) posted its earnings results on Wednesday. The information technology services provider reported ($0.01) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.07) by $0.06, FiscalAI reports. The company had revenue of $666.53 million during the quarter, compared to analysts’ expectations of $654.08 million.

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

• Sabre is repositioning as an AI-native travel platform, citing first-mover advantage with newly launched agentic APIs and an MCP server and announcing partnerships (PayPal, Mindtrip, Virgin Australia) that management says validate a large AI upside not included in current guidance.
• Full‑year 2025 results showed progress on profitability and balance sheet repair — revenue $2.8B (+1%), normalized Adjusted EBITDA +10% to $536M, over $1B of debt paid down, pro forma net leverage down ~25% and cash of $910M after refinancing to push major maturities to 2029+.
• 2026 guidance targets mid‑single‑digit volume and revenue growth but anticipates free cash flow of -$70M, driven mainly by ~$60M of restructuring cash outflows and about $140M of higher cash interest after the PIK instrument ended, with management expecting positive FCF only in 2027.
• Management expects sustained top‑line momentum from multiple growth engines — distribution share gains, multi‑source content (including a new LCC solution), hotel bookings (+5% to 42M; hotel GTV >$20B), Payments (gross spend +35%), and accelerating NDC adoption (42 live integrations, ~4% of air bookings).
• The company outlined an “inflation offset” program (~$65M of restructuring charges) to keep pro forma technology and SG&A roughly flat via geographic arbitrage, third‑party partnerships and AI-driven productivity while preserving R&D and operations; most cash impact is expected in 2026.

Sabre Trading Up 36.6%

NASDAQ SABR traded up $0.34 during trading hours on Wednesday, hitting $1.28. The company’s stock had a trading volume of 10,437,513 shares, compared to its average volume of 7,261,047. The company’s 50-day simple moving average is $1.31 and its two-hundred day simple moving average is $1.66. Sabre has a 52 week low of $0.90 and a 52 week high of $4.63. The company has a market capitalization of $506.25 million, a PE ratio of 1.04 and a beta of 1.06.

Institutional Investors Weigh In On Sabre

Institutional investors and hedge funds have recently modified their holdings of the stock. Discerene Group LP lifted its position in 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. boosted its position in 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 during the period. State Street Corp boosted its stake in Sabre by 2.4% during the 4th quarter. State Street Corp now owns 14,813,630 shares of the information technology services provider’s stock valued at $20,147,000 after purchasing an additional 343,209 shares in the last quarter. Geode Capital Management LLC raised its holdings in shares of Sabre by 2.2% in the 4th 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 in the last quarter. Finally, Cibc World Markets Corp purchased a new stake in Sabre during the fourth quarter valued at about $7,377,000. 89.42% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of research firms recently weighed in on SABR. Zacks Research raised shares of Sabre from a “strong sell” rating to a “hold” rating in a research note on Wednesday, February 11th. Wall Street Zen cut Sabre from a “hold” rating to a “sell” rating in a research note on Saturday, November 8th. Finally, Weiss Ratings reissued a “sell (d+)” rating on shares of Sabre in a research note on Monday, December 29th. Two investment analysts have rated the stock with a Buy rating, three have given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $3.80.

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.