Sabre Corporation reported its third‑quarter 2025 results on November 5, 2025, showing revenue of $715.18 million—up 3% year‑over‑year and $6.34 million above the consensus estimate of $708.84 million. Adjusted earnings per share fell to –$0.01, missing the consensus estimate of $0.04, while GAAP earnings per share rose to $1.98, a sharp turnaround from the prior quarter’s $1.12.
Revenue growth was driven by a 4% increase in distribution revenue, largely from higher air and hotel bookings, and a modest 1% rise in IT Solutions revenue. Travel Solutions revenue, the company’s core segment, grew 3% YoY, reflecting stronger demand for airline and hotel distribution services. The flat performance of IT Solutions was offset by the growth in distribution, keeping overall revenue on track.
The adjusted EPS miss was largely due to a one‑time charge related to the sale of Sabre’s hospitality technology business, which generated $1.1 billion in proceeds but also created a non‑recurring expense that weighed on profitability. The GAAP EPS beat, however, was driven by the sale proceeds and a reduction in operating expenses, illustrating the impact of the transaction on the company’s financial statements.
Operating margin expanded to 13.1% from 10.1% year‑over‑year, driven by higher mix of high‑margin distribution contracts and improved operational leverage. Adjusted EBITDA rose to $141 million, a 25% increase YoY, reflecting stronger revenue and disciplined cost management. These margin gains counterbalance the negative adjusted EPS, underscoring the company’s focus on long‑term profitability.
Management guided for Q4 revenue of $644.9 million, below analyst expectations, and full‑year EBITDA guidance of $530 million, also below estimates. CEO Kurt Ekert said the company remains “focused on debt reduction and technology transformation,” noting that the sale of the hospitality business has strengthened the balance sheet and freed capital for AI‑driven initiatives. The guidance signals caution about near‑term demand while affirming confidence in the company’s strategic priorities.
Sabre’s strategic narrative centers on transforming its platform into an open travel marketplace and leveraging AI to create new revenue streams. The company’s debt‑reduction plan, accelerated by the hospitality sale, positions it to invest in high‑return technology projects, while the mixed earnings results highlight the transitional nature of its current growth phase.
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