SABR Q1 2025 Earnings

Call Details

• Call Title: Sabre Corporation Q1 2025 Earnings Call
• Date: May 7, 2025 1:00 PM UTC
• Management Team:
  • Brian Evans (Senior Vice President, Investor Relations and Treasurer)
  • Kurt Ekert (Chief Executive Officer)
  • Mike Randolfi (Chief Financial Officer)
  • Scott Wilson (EVP and President of Hospitality Solutions)

Call Summary

Financial Performance

• Revenue for Q1 2025 was $777M and was described as roughly flat year-on-year.
• Adjusted EBITDA for Q1 2025 was $150M, representing a 5% year-on-year increase.
• Adjusted EBITDA margin expanded 110 basis points year-on-year to 19.3% for Q1 2025.
• Cash on the balance sheet at quarter end was $672M and free cash flow was subject to typical seasonality.
• IT Solutions revenue was lower by $8M year-on-year in Q1 2025 primarily due to prior demigrations.
• Gross margin declined 190 basis points year-on-year in Q1 2025, with roughly half attributable to upfront costs for new agency business and half attributable to lower IT Solutions revenue from prior demigrations.

Guidance

• Full-year 2025 guidance was reaffirmed for double-digit air and hotel B2B distribution bookings growth on a pro forma basis.
• Company updated GDS industry assumption from flat to nominal to down 1% to 2% for full-year 2025 on an edifact basis.
• Q2 2025 distribution bookings growth is expected to be low single digits with Q2 pro forma adjusted EBITDA of approximately $140M.
• Full-year 2025 pro forma adjusted EBITDA is expected to be greater than $630M after removing Hospitality Solutions.
• Company expects pro forma free cash flow of greater than $200M for 2025.
• Company expects at least 20% year-on-year growth in air distribution bookings in the second half of 2025, with mid-to-high teens in Q3 and above 20% in Q4.