SABR Q2 2025 Earnings

Call Details

• Call Title: Sabre Corporation Q2 2025 Earnings Call
• Date: August 7, 2025 at 1:00 PM UTC
• Management Team:
  • Sean Parker (Head of Investor Relations)
  • Brian Evans (Senior Vice President, Investor Relations and Treasurer)
  • Kurt Ekert (Chief Executive Officer)
  • Mike Randolfi (Chief Financial Officer)

Call Summary

Financial Performance

• Sabre reported Q2 2025 revenue of $687 million, down 1% year on year.
• Q2 2025 normalized adjusted EBITDA was $127 million, representing 6% growth year on year and a normalized adjusted EBITDA margin of approximately 19%, up ~120 basis points year on year.
• Pro forma free cash flow for Q2 2025 was negative $2 million on a pro forma basis, while reported free cash flow was negative $240 million which included a $227 million refinancing-related payment in kind interest impact.
• Cash balance at quarter end was $447 million, with an incremental $135 million of proceeds from the hospitality solutions sale realized after quarter close and end-of-July cash exceeding $600 million.
• Air distribution bookings were down 1% year on year in Q2 2025, while hotel distribution bookings were up 2% year on year and IT passengers boarded increased 1% year on year.
• Each point of quarterly air distribution bookings equates to approximately $3 million to $4 million of adjusted EBITDA on a quarterly basis.
• Normalized gross margin decreased 110 basis points in Q2 versus prior year, with FX and a stronger mix of U.S. bookings cited as contributors.

Guidance

• Full year 2025 air distribution bookings growth is expected to be flat to low single digits under updated scenarios.
• Full year 2025 revenue is expected to grow flat to low single digits on a pro forma basis.
• Full year 2025 pro forma adjusted EBITDA is expected in the range of approximately $530 million to approximately $570 million, depending on underlying AD bookings growth.
• Full year 2025 pro forma free cash flow is expected in the range of approximately $100 million to approximately $140 million, with year-end cash expected to be greater than $750 million.
• Third quarter 2025 air distribution bookings are forecast to grow in a range of 2% to 6%, with pro forma adjusted EBITDA of approximately $140 million to approximately $150 million and pro forma free cash flow of approximately $40 million to approximately $50 million.
• Company provided three volume scenarios for the second half and emphasized the middle scenario as the current orientation while not assigning explicit weightings to each scenario.