Beyond the headline.
Inside the numbers.
Ticker Byline
Sabre provides travel-booking technology to agencies and software to airlines, earning booking fees and revenue from airline technology services.
Sabre Corporation supplies travel-booking technology to agencies and software to airlines. The Delaware company is based in Southlake, Texas, and trades on Nasdaq as SABR.
Marketplace revenue comes from the booking platform connecting travel suppliers with agencies. Airline Technology includes software used to manage airline reservations and operations. These are revenue categories within one reported operating segment.
| Measure | 2025 | 2026 |
|---|---|---|
| Revenue | $715.2 | $738.4 |
| Operating income | $93.6 | $109.4 |
| Net income (loss) | $48.2 | ($26.0) |
| Adjusted EBITDA | $140.6 | $163.7 |
| Normalized adjusted EBITDA | $150.0 | $169.7 |
| Operating cash flow | $33.7 | ($24.7) |
| Free cash flow | $13.4 | ($47.5) |
| Measure | 2025 | 2026 |
|---|---|---|
| Revenue | $687.1 | $712.0 |
| Operating income | $89.1 | $92.8 |
| Net loss | ($201.0) | ($36.4) |
| Adjusted EBITDA | $118.3 | $143.0 |
| Normalized adjusted EBITDA | $127.2 | $151.2 |
| Operating cash flow | ($217.9) | $36.1 |
| Free cash flow | ($240.2) | $9.7 |
Operating income and net income or loss follow U.S. accounting rules. Adjusted EBITDA excludes interest, taxes, depreciation, amortization and selected other costs. Normalized adjusted EBITDA also removes costs historically allocated to the former Hospitality Solutions business. Free cash flow is operating cash flow less capital spending.
Third-quarter air bookings fell 1.4% to 79.4 million, while lodging and other bookings rose 7.6% to 15.7 million. Average booking fees rose about 3% to $6.24. Marketplace revenue increased 3% to $594.0 million; Airline Technology revenue also rose 3%, to $144.5 million.
Quarterly net interest expense rose to $123.4 million from $111.3 million, exceeding operating income. The continuing-operation profit comparison also reflects a fall in the tax benefit from $58.5 million to $3.3 million.
At September 30, unrestricted cash was $588.3 million, down from $676.0 million in June. A separate $99.3 million was restricted, including about $78 million earmarked for the October debt redemption and $21 million supporting letters of credit.
Debt principal was $4.61 billion. Its balance-sheet carrying value, after financing discounts and costs, was $4.37 billion. Sabre's reported $4.03 billion net debt subtracts unrestricted cash from principal.
Sabre issued $1.35 billion of 9.875% notes on September 28, due October 15, 2032, refinancing higher-coupon notes. The remaining old notes were retired on October 13. Separate $150 million exchangeable notes mature in May 2031, but holders can demand cash repayment in May 2029.
An amended receivables financing facility took effect September 30 with $250 million of commitments and $213 million drawn. Sabre reported no immediately available undrawn borrowing capacity under that facility.
Across the first nine months, operating cash flow was negative $122.7 million and free cash flow was negative $193.2 million. The comparison with 2025 benefits from the absence of a roughly $200 million payment of previously accumulated payment-in-kind interest made that year. Third-quarter 2026 cash flow included about $15 million of refinancing fees paid and $40 million of accrued interest payments.
Sabre sold Hospitality Solutions to a TPG affiliate on July 3, 2025. Final net proceeds reached $969 million after a first-quarter 2026 working-capital settlement. Transition services run for up to 18 months, alongside continuing commercial booking relationships.
In November, Sabre raised its approximate 2026 pro forma adjusted EBITDA target from $600 million to $610 million. Research by Ticker Byline shows that both the August and November outlook reconciliations assume a $133 million loss from continuing operations. Our analysis of Sabre's higher target and unchanged loss assumption explains the gap.
The company improved its annual free-cash-flow forecast from negative $65 million to negative $50 million, based on about $45 million of operating cash flow and $95 million of capital spending. Management expects positive free cash flow in 2027. The immediate test is whether rising operating earnings begin to cover interest and investment in cash.
The travel-technology company lifted its adjusted earnings outlook, but the calculation still assumes a $133 million annual loss from continuing operations. Cash flow is improving, with a long way to go.