SABR Q1 2026 Earnings

Call Details

• Call Title: Sabre Corporation Q1 2026 Earnings Call
• Date: May 7, 2026 at 1:00 PM UTC
• Management Team:
  • Jim Mathias (Vice President of Investor Relations)
  • Kurt Ekert (President and Chief Executive Officer)
  • Mike Randolfi (Chief Financial Officer)
  • Garry Wiseman (President, Product and Engineering)

Call Summary

Financial Performance

• Total revenue was $760M, up 8% year-on-year.
• Normalized adjusted EBITDA was $169M, up 21% year-on-year, with margin expanding 235 basis points to 22.2%.
• Operating income was $116M, up 27% year-on-year, with operating margin expanding 220 basis points to 15%.
• Gross margin was 56.4% in the quarter and the company expects 2026 gross margin toward the high end of the 56% to 57% range.
• Free cash flow was negative $155M in Q1 compared with negative $81M in Q1 2025, and full-year free cash flow is expected to be approximately negative $70M.
• The company ended the quarter with a cash balance of $665M.
• Marketplace revenue grew by $49M (9% year-on-year) driven by an approximate 5% increase in distribution bookings and an approximate 3% increase in average booking fee, while airline technology revenue was $142M, up 7% year-on-year.

Guidance

• The company reaffirmed full-year 2026 pro forma adjusted EBITDA expectation of approximately $585M and full-year free cash flow expectation of approximately negative $70M.
• Full-year 2026 air distribution bookings and revenue are now expected to grow in the low to mid single digit range.
• Second quarter 2026 revenue is expected to be flat to nominal year-on-year and second quarter pro forma adjusted EBITDA is expected to be approximately $130M.
• The company expects air distribution bookings to be near flat in Q2 with a phased improvement and positive bookings growth in the second half of 2026, returning to a more normalized environment by Q4.
• 2026 gross income is expected to be similar to the February guidance due to favorable mix offsetting lower bookings.
• Adjusted technology and adjusted SG&A expenses are expected to be roughly flat on a sequential basis for the remainder of the year.