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Sabre's Q1 Earnings Miss Expectations, Revenues Decline Y/Y
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Sabre Corporation (SABR - Free Report) reported break-even first-quarter 2025 bottom line against the Zacks Consensus Estimate of earnings of 1 cent per share. The company had incurred a loss of 2 cents per share in the year-ago quarter.
Sabre reported revenues of $776.62 million for the quarter ended March 31, 2025, which missed the Zacks Consensus Estimate by 1.77%. The figure declined 0.8% year over year.
Sabre’s Q1 in Detail
The Travel Solutions segment’s revenues declined 2% year over year to $702.13 million. The growth in this segment was led by a rise in global hotel and other travel bookings. The decline was primarily due to the impact of previously demigrated carriers in IT Solutions and a decrease in air bookings, partially offset by growth in hotel bookings and favorable travel supplier mix. Our model estimate for Travel Solutions’ revenues was pegged at $720.4 million.
Distribution’s (a sub-division of Travel Solutions) revenues decreased 0.5% to $569 million. The Distribution segment registered a decline due to lower air bookings. However, this was partly offset by a rise in average booking fees and an increase in hotel distribution bookings. Our model estimate for Distribution’s revenues was pegged at $577.9 million, which indicated 1% year-over-year growth.
Sabre Corporation Price, Consensus and EPS Surprise
IT Solutions’ (a sub-division of Travel Solutions) revenues were $133 million, down 6% year over year. This decline was attributed to previously disclosed customer demigrations. Our model estimate for IT Solutions’ revenues was pegged at $142.5 million.
The Hospitality Solutions segment’s revenues were $85.2 million compared with the year-ago quarter’s $78.8 million. The growth in revenues was mainly due to positive customer deployments, CRS transaction growth and a favorable mix within the customer base. Our model estimate for Hospitality Solutions’ revenues was pegged at $85 million.
Sabre reported an adjusted EBITDA of $149.6 million, which improved from the year-ago quarter’s $142 million. Adjusted EBITDA margin improved 110 basis points year over year to 19.3% in the first quarter of 2025. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Sabre’s Balance Sheet and Cash Flow
Sabre exited the March-end quarter with cash, cash equivalents and restricted cash of $672 million compared with the previous quarter’s $745.5 million.
During the first quarter, cash used in operating activities amounted to $81 million and negative free cash flow was $98 million.
Sabre Provides Guidance for Q2 and 2025
Sabre initiated the guidance for the second quarter and full-year 2025. For 2025, Sabre expects its revenues to grow year over year in high single digits. The Zacks Consensus Estimate for 2025 revenues is pegged at $3.23 billion, indicating year-over-year growth of 6.57%.
Adjusted EBITDA is forecasted to be approximately $630 million for 2025. The company expects to generate more than $200 million in cash flow throughout 2025.
Additionally, Sabre initiated guidance for the second quarter. SABR anticipates revenue growth in flat to low single digits. It anticipates an adjusted EBITDA of $140 million.
AFRM shares have gained 4% for the past year. The Zacks Consensus Estimate for AFRM’s full-year 2025 earnings is pegged at a loss of 6 cents per share, up by 7 cents over the past 60 days, suggesting a growth of 96.7% from the year-ago quarter’s reported figure.
SMCI shares have plunged 56.4% in the past year. The Zacks Consensus Estimate for SMCI’s full-year fiscal 2025 earnings have been revised downward to $2.52 in the past seven days reflecting a year-over-year growth of 14%.
PAYC shares have gained 6% over the past year. The Zacks Consensus Estimate for PAYC’s full-year 2025 earnings is pegged at $8.72 per share, implying a rise of 6.21% from the year-ago quarter’s levels.
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Sabre's Q1 Earnings Miss Expectations, Revenues Decline Y/Y
Sabre Corporation (SABR - Free Report) reported break-even first-quarter 2025 bottom line against the Zacks Consensus Estimate of earnings of 1 cent per share. The company had incurred a loss of 2 cents per share in the year-ago quarter.
Sabre reported revenues of $776.62 million for the quarter ended March 31, 2025, which missed the Zacks Consensus Estimate by 1.77%. The figure declined 0.8% year over year.
Sabre’s Q1 in Detail
The Travel Solutions segment’s revenues declined 2% year over year to $702.13 million. The growth in this segment was led by a rise in global hotel and other travel bookings. The decline was primarily due to the impact of previously demigrated carriers in IT Solutions and a decrease in air bookings, partially offset by growth in hotel bookings and favorable travel supplier mix. Our model estimate for Travel Solutions’ revenues was pegged at $720.4 million.
Distribution’s (a sub-division of Travel Solutions) revenues decreased 0.5% to $569 million. The Distribution segment registered a decline due to lower air bookings. However, this was partly offset by a rise in average booking fees and an increase in hotel distribution bookings. Our model estimate for Distribution’s revenues was pegged at $577.9 million, which indicated 1% year-over-year growth.
Sabre Corporation Price, Consensus and EPS Surprise
Sabre Corporation price-consensus-eps-surprise-chart | Sabre Corporation Quote
IT Solutions’ (a sub-division of Travel Solutions) revenues were $133 million, down 6% year over year. This decline was attributed to previously disclosed customer demigrations. Our model estimate for IT Solutions’ revenues was pegged at $142.5 million.
The Hospitality Solutions segment’s revenues were $85.2 million compared with the year-ago quarter’s $78.8 million. The growth in revenues was mainly due to positive customer deployments, CRS transaction growth and a favorable mix within the customer base. Our model estimate for Hospitality Solutions’ revenues was pegged at $85 million.
Sabre reported an adjusted EBITDA of $149.6 million, which improved from the year-ago quarter’s $142 million. Adjusted EBITDA margin improved 110 basis points year over year to 19.3% in the first quarter of 2025. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Sabre’s Balance Sheet and Cash Flow
Sabre exited the March-end quarter with cash, cash equivalents and restricted cash of $672 million compared with the previous quarter’s $745.5 million.
During the first quarter, cash used in operating activities amounted to $81 million and negative free cash flow was $98 million.
Sabre Provides Guidance for Q2 and 2025
Sabre initiated the guidance for the second quarter and full-year 2025. For 2025, Sabre expects its revenues to grow year over year in high single digits. The Zacks Consensus Estimate for 2025 revenues is pegged at $3.23 billion, indicating year-over-year growth of 6.57%.
Adjusted EBITDA is forecasted to be approximately $630 million for 2025. The company expects to generate more than $200 million in cash flow throughout 2025.
Additionally, Sabre initiated guidance for the second quarter. SABR anticipates revenue growth in flat to low single digits. It anticipates an adjusted EBITDA of $140 million.
Zacks Rank and Stocks to Consider
Currently, SABR carries a Zacks Rank #3 (Hold).
Affirm (AFRM - Free Report) , Super Micro Computer (SMCI - Free Report) and Paycom Software (PAYC - Free Report) are some better-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. ACIW, SMCI and ACMR sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
AFRM shares have gained 4% for the past year. The Zacks Consensus Estimate for AFRM’s full-year 2025 earnings is pegged at a loss of 6 cents per share, up by 7 cents over the past 60 days, suggesting a growth of 96.7% from the year-ago quarter’s reported figure.
SMCI shares have plunged 56.4% in the past year. The Zacks Consensus Estimate for SMCI’s full-year fiscal 2025 earnings have been revised downward to $2.52 in the past seven days reflecting a year-over-year growth of 14%.
PAYC shares have gained 6% over the past year. The Zacks Consensus Estimate for PAYC’s full-year 2025 earnings is pegged at $8.72 per share, implying a rise of 6.21% from the year-ago quarter’s levels.