SABR Q4 2025 Earnings

Call Details

• Call Title: Sabre Corporation Q4 2025 Earnings Call
• Date: February 18, 2026 at 2:00 PM UTC
• Management Team:
  • Roshan Zenooz (Senior Vice President of Finance)
  • Kurt Ekert (Chief Executive Officer)
  • Mike Randolfi (Chief Financial Officer)
  • Garry Wiseman (President, Product and Engineering)
  • Sean Williams (Chief Operating Officer)
  • Andy Finkelstein (Chief Commercial Officer at Travel Marketplace)
  • Dave Medrano (Chief People Officer)
  • Roshan Mendes (Chief Commercial Officer)

Call Summary

Financial Performance

• Fourth quarter total revenue grew 3% year-on-year and was described as consistent with prior low single-digit guidance.
• Full year 2025 revenue was $2.8B, up 1% year-on-year driven primarily by distribution revenue.
• Fourth quarter normalized adjusted EBITDA was $119M, which was up 10% year-on-year and expanded normalized adjusted EBITDA margin to 18%, up 107 basis points versus the prior year quarter.
• Full year 2025 normalized adjusted EBITDA was $536M, which was up 10% year-on-year, with margin expanding to 19%, up approximately 166 basis points year-on-year.
• Fourth quarter gross margin was 58%, and full year gross margin was 57.2%, with year-on-year pressure attributed primarily to revenue mix and FX impacts.
• Fourth quarter pro forma free cash flow was $116M, which was an increase of $45M year-on-year, and full year pro forma free cash flow was $57M.
• Sabre ended the year with a cash balance of $910M, which includes $98M of restricted cash for debt repayments in Q1 2026.
• IT solutions revenue of $140M in the fourth quarter was within prior expected ranges.

Guidance

• For full year 2026, Sabre expects mid-single-digit volume growth and year-on-year revenue growth in the mid-single-digits.
• IT solutions revenue for 2026 is expected to be in the range of $140M to $150M per quarter, with growth skewed to the back half of the year.
• Pro forma gross margin for 2026 is expected to be in the range of 56% to 57%, with first quarter at the low end of the range due to mix and FX.
• Sabre expects pro forma adjusted EBITDA of approximately $585M for 2026.
• Sabre expects 2026 free cash flow to be negative $70M, driven primarily by approximately $60M of restructuring cash outflows; excluding the restructuring charge, free cash flow is expected to be near break-even.
• Sabre expects mid-single-digit revenue growth in 2027 and anticipates positive free cash flow in 2027 driven by continued revenue growth and cost discipline.
• Annual capital expenditures for 2026 are expected to remain approximately $80M.
• Annual cash interest in 2026 is expected to be approximately $470M, which represents about a $140M year-on-year increase primarily due to the end of the paid-in-kind instrument.
• The outlook expressly excludes potential upside from agentic AI initiatives that are considered too early to quantify.