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Mar 31, 2025
Sabre Q1 2025 Earnings Report
Sabre reported solid first quarter 2025 results, reaffirming FY 2025 double-digit distribution bookings growth, high single-digit revenue growth, and pro forma Free Cash Flow expectations, alongside an agreement to sell Hospitality Solutions for $1.1 billion.
Key Takeaways
Sabre's first quarter 2025 financial performance was in line with guidance, with revenue of $777 million and operating income of $103 million. The company also announced an agreement to sell its Hospitality Solutions business for $1.1 billion, with net cash proceeds primarily intended for debt repayment.
Financial performance aligned with Q1 guidance, reaffirming FY'25 outlook for double-digit YoY distribution bookings growth and high single-digit YoY revenue growth.
Entered into an agreement to sell Hospitality Solutions business for $1.1 billion, with plans to use $960 million net cash proceeds to repay debt.
Continued commercial momentum in air distribution, including new agency agreements and 38 live NDC integrations.
Signed new SabreMosaic agreements with several airlines for AI-powered Offer Management products.
Revenue by Segment
Forward Guidance
Sabre provided second quarter and full year 2025 financial outlook on a pro forma basis, giving effect to the sale of the Hospitality Solutions business and the application of proceeds to pay down outstanding indebtedness as if these actions occurred on January 1, 2025.
Positive Outlook
- FY 2025 Air Distribution Bookings Growth Rate expected to be double digit.
- FY 2025 Pro Forma Revenue Growth Rate expected to be high single digit.
- FY 2025 Pro Forma Adjusted EBITDA expected to be greater than $630 million.
- FY 2025 Pro Forma Free Cash Flow expected to be greater than $200 million.
- Q2 2025 Pro Forma Free Cash Flow expected to be positive.
Challenges Ahead
- Q2 2025 Air Distribution Bookings Growth Rate expected to be low single digit.
- Q2 2025 Pro Forma Revenue Growth Rate expected to be low single digit.
- Q2 2025 Pro Forma Adjusted EBITDA expected to be approximately $140 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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