Sabre reports first quarter 2026 results (Form 8-K)

Sabre reports first quarter 2026 results

First quarter revenue growth of 8% and air distribution bookings growth of 6%; reaffirms full year 2026 Pro Forma Adjusted EBITDA and Free Cash Flow guidance

Business Highlights:

•Exceeded revenue and Pro Forma Adjusted EBITDA guidance and achieved air distribution bookings guidance, reflecting continued execution of our growth strategies and effective cost management

•Reaffirming 2026 guidance for Pro Forma Adjusted EBITDA and Free Cash Flow

•Grew Marketplace revenue 9% year-on-year, driven by strong bookings and higher booking fees

•Achieved 6% air distribution bookings growth, the highest in over two years

•Delivered 27% year-on-year increase in operating income and expanded margin two percentage points from 13% to 15%

•Sabre's AI platform successfully launched first agentic AI experience for travel with MindTrip and PayPal

First Quarter 2026 Financial Results:

•First quarter revenue of $760 million, up 8% from Q1'25

•Operating income of $116 million, up 27% from Q1'25

•Net income attributable to common stockholders of $8 million

•Adjusted EBITDA(1) of $159 million, up 21% from Q1'25

•Normalized Adjusted EBITDA(1) of $169 million, up 21% from Q1'25

•Ended quarter with cash balance of $665 million

SOUTHLAKE, Texas - May 7, 2026 - Sabre Corporation ("Sabre" or the "Company") (NASDAQ: SABR) today announced financial results for the quarter ended March 31, 2026.

"We are pleased with our strong start to the year, delivering 8% revenue growth and a 21% increase in Normalized Adjusted EBITDA, significantly exceeding our first quarter outlook. Air distribution bookings grew 6%, our highest rate in more than two years, and we believe it outpaced the broader industry, underscoring our solid execution and continued momentum across our growth initiatives," said Kurt Ekert, President and CEO.

Ekert continued, "While the conflict in the Middle East and higher fuel prices have weighed on near-term air bookings, our outlook assumes the conflict subsides during the second quarter. We expect a gradual recovery through the summer and fall, driving positive full-year air bookings growth. Given our strong first-quarter performance and current outlook, we are reaffirming our full-year guidance for Pro Forma Adjusted EBITDA and Free Cash Flow. Through continued share gains, disciplined execution, and our leadership role in next-generation, AI-powered travel solutions, we are confident in our ability to deliver sustained, long-term growth."

Q1 2026 Financial Summary

Effective this quarter, we have updated the terminology used to describe our revenue to better reflect our evolving brand identity and market positioning. Historically referred to as "Distribution" and "IT Solutions", these revenue streams have been renamed to "Marketplace" and "Airline Technology", respectively. The specific revenue from products, services, and underlying solutions offered within each category remain unchanged.

First quarter revenue totaled $760 million, compared to $702 million in the first quarter of 2025.

•Marketplace revenue increased by $49 million, or 9%, to $618 million, driven by a $42 million increase in transaction-based revenue primarily due to an increase in distribution bookings and favorable rate impacts, and a $7 million increase in other revenue.

◦Total Marketplace bookings, net of cancellations, were 101 million, an increase of approximately 5% from first quarter 2025 levels.

◦Average booking fee totaled $6.10, an increase of approximately 3% from first quarter 2025.

•Airline Technology revenue increased by $9 million, or 7%, to $142 million, driven primarily by revenue that was previously deferred being recognized.

Operating income totaled $116 million versus $91 million in the first quarter of 2025. The increase in operating income was driven by the increase in revenue described above, partially offset by an increase in incentive and other expenses.

Income from continuing operations totaled $9 million, versus a loss of $3 million in the first quarter of 2025. The increase in net income from continuing operations in the first quarter of 2026 is primarily attributed to an increase in operating income described above, partially offset by an increase in interest expense, net.

Income attributable to common stockholders totaled $8 million, versus income of $35 million in the first quarter of 2025. The decrease in income attributable to common stockholders in the first quarter of 2026 was primarily driven by a decrease in income from discontinued operations, net of tax, partially offset by the items impacting net income from continuing operations described above.

Normalized Adjusted EBITDA(1) was $169 million, up 21% year-on-year, an improvement versus Normalized Adjusted EBITDA(1) of $140 million in the first quarter of 2025. The improvement in Normalized Adjusted EBITDA(1) was driven by the items impacting revenue described above, partially offset by increased incentive expense.

With regard to Sabre's first quarter 2026 cash flows (versus prior year):

•Cash used in operating activities totaled $134 million (vs. $64 million)

•Cash used in investing activities totaled $21 million (vs. $7 million)

•Cash used in financing activities totaled $92 million (vs. $13 million provided by)

•Capitalized expenditures totaled $21 million (vs. $17 million)

Free Cash Flow(1) was negative $155 million, compared to Free Cash Flow(1) of negative $81 million and Pro Forma Free Cash Flow(1) of negative $70 million in the first quarter of 2025.

Financial Highlights (in thousands, except for EPS; unaudited):			Three Months Ended March 31,
			2026						2025						% Change (B/W)
Total Company:
Revenue			$760,326						$702,126						8
Marketplace Revenue			$618,011						$569,115						9
Airline Technology Revenue			$142,315						$133,011						7
Operating Income			$115,917						$91,395						27
Operating Margin			15.2%						13.0%
Net income attributable to common stockholders			$8,116						$35,335						(77)
Diluted net income (loss) per share attributable to common stockholders (EPS) from continuing operations			$0.02						$(0.01)						300
Net Income Margin			1.1%						5.0%
Adjusted EBITDA(1)			$158,710						$130,818						21
Adjusted EBITDA Margin(1)			20.9%						18.6%
Normalized Adjusted EBITDA(1)			$169,089						$139,656						21
Normalized Adjusted EBITDA Margin(1)			22.2%						19.9%
Adjusted Net Income(1)			$24,293						$2,783						773
Adjusted EPS(1)			$0.06						$0.01						500
Cash used in operating activities			$(134,160)						$(63,961)						(110)
Cash used in investing activities			$(21,230)						$(7,230)						(194)
Cash (used in) provided by financing activities			$(92,006)						$13,208						(797)
Capitalized expenditures			$(21,230)						$(16,871)						(26)
Free Cash Flow(1)			$(155,390)						$(80,832)						(92)
Pro Forma Free Cash Flow(1)			NA						$(70,321)						NM
Net Debt (total debt, less cash and cash equivalents)			$3,795,267						$4,613,756
Volume Metrics:
Total Bookings			101,262						96,356						5
Air Bookings			86,973						82,438						6
Lodging and Other Bookings			14,289						13,918						3
Passengers Boarded			170,035						165,826						3
(1)Indicates non-GAAP financial measure; see descriptions and reconciliations below.
NM - not meaningful

Business and Pro Forma Financial Outlook

With respect to the second quarter and full-year 2026 financial outlook below:

•Second quarter Pro Forma Adjusted EBITDA guidance consists of expected net loss from continuing operations of approximately $63 million; less impact of acquisition-related amortization of approximately $8 million; expected stock-based compensation expense of approximately $18 million; expected depreciation and amortization of property and equipment and amortization of capitalized implementation costs of approximately $18 million; expected interest expense, inclusive of issuance costs and debt discounts, net of approximately $124 million; expected provision for income taxes of approximately $17 million; expected pro forma adjustments of approximately $8 million associated with costs previously allocated to Hospitality Solutions.

•Full-year Pro Forma Adjusted EBITDA guidance consists of expected net loss from continuing operations of approximately $128 million; less impact of acquisition-related amortization of approximately $31 million; expected stock-based compensation expense of approximately $59 million; expected depreciation and amortization of property and equipment and amortization of capitalized implementation costs of approximately $73 million; expected interest expense, inclusive of issuance costs and debt discounts, net of approximately $491 million; expected restructuring and other expenses, net of approximately $6 million; expected provision for income taxes of approximately $26 million; expected pro forma adjustments of approximately $27 million associated with costs previously allocated to Hospitality Solutions.

•Full year Free Cash Flow guidance consists of expected cash provided by operating activities of approximately $10 million, and less expected additions to property and equipment of approximately $80 million.

Second Quarter and Full Year 2026 Pro Forma Financial Outlook

Sabre's second quarter and full year 2026 outlook is set forth below:

			Q2 2026			FY 2026
Air Distribution Bookings			Near flat YoY growth			Low-to-mid-single-digit YoY growth
Revenue			Flat-to-nominal YoY Growth			Low-to-mid-single-digit YoY growth
Pro Forma Adjusted EBITDA			~$130M +2% YoY			~$585M +9% YoY
Free Cash Flow						~($70M)

Conference Call

Sabre will conduct its first quarter 2026 investor conference call today at 9:00 a.m. ET. The live webcast and accompanying slide presentation can be accessed via the Investor Relations section of our website, investors.sabre.com. A replay of the event will be available on the website for at least 90 days following the event.

About Sabre

Powering the agentic revolution in travel. Sabre is an AI-native technology leader, backed by one of the world's largest travel data clouds. With AI at its core and operating at unparalleled scale, Sabre transforms insights into innovation, empowering airlines, hoteliers, agencies and other partners to retail, distribute and fulfill travel worldwide. Sabre is built on an open, modular, cloud-native architecture and serves as the backbone for both established leaders and bold, new disruptors, guiding them to the next age of travel retailing through intelligent, connected, and personalized experiences. For more information visit  www.sabre.com.

Website Information

Sabre routinely posts important information for investors on the Investor Relations section of its website, investors.sabre.com, on its LinkedIn account, and on its X account, @Sabre_Corp. The Company intends to use the Investor Relations section of its website, its LinkedIn account, and

its X account as a means of disclosing material, non-public information and for complying with disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investor Relations section of Sabre's website, its LinkedIn account and its X account, in addition to following its press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, Sabre's website, its LinkedIn account or its X account is not incorporated by reference into, and is not a part of, this document.

Supplemental Financial Information

In conjunction with today's earnings report, a file of supplemental financial information will be available on the Investor Relations section of our website, investors.sabre.com.

Industry Data

This release contains industry data, forecasts and other information that Sabre obtained from industry publications and surveys, public filings and internal company sources, and there can be no assurance as to the accuracy or completeness of the included information. Statements as to Sabre's ranking, market position, bookings share and market estimates are based on independent industry publications, government publications, third-party forecasts and management's estimates and assumptions about our markets and our internal research. The Company has not independently verified this third-party information nor has it ascertained the underlying economic assumptions relied upon in those sources, and cannot assure you of the accuracy or completeness of this information.

Note on Non-GAAP Financial Measures