Travel tech firm Sabre beats Q3 revenue estimates on higher bookings

Sabre

05/11/2025 12:49

Overview

Sabre Q3 revenue rises 3% yr/yr to $715 mln, beating analyst expectations

Adjusted EBITDA for Q3 misses analyst estimates

Company repaid ~$825 mln of debt from Hospitality Solutions sale proceeds

Outlook

Sabre expects Q4 2025 Pro Forma Adjusted EBITDA of ~$110 mln, +2% YoY

Company forecasts full-year 2025 Pro Forma Adjusted EBITDA of ~$530 mln, +9% YoY

Sabre anticipates Q4 2025 Pro Forma Free Cash Flow of ~$130 mln

Result Drivers

DISTRIBUTION REVENUE - Co cites a 4% YoY increase in distribution revenue driven by higher bookings and favorable supplier mix

OPERATING MARGIN - Co reports a 5 percentage point improvement in operating margin due to revenue growth, cost management, and lower technology costs

DEBT REPAYMENT - Co repaid ~$825 mln of debt from the proceeds of the Hospitality Solutions sale

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$715 mln
$711.50 mln (3 Analysts)
Q3 EPS
-$0.01
Q3 Net Income
$849 mln
Q3 Adjusted EBITDA
Miss
$141 mln
$143 mln (3 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for Sabre Corp is $2.40, about 16.7% above its November 4 closing price of $2.00

The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)