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Sabre Shares Soar on Narrower-Than-Expected Q4 Loss, Revenues Rise Y/Y
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Key Takeaways
Sabre's Q4 revenues grew 3% to $667M, beating estimates on higher bookings and rates.
Normalized adjusted EBITDA climbed to $119M, with a 110-bps margin improvement to 17.8%.
The company expects revenues to grow in the mid-single-digit percentage range in 2026.
Sabre Corporation (SABR - Free Report) shares were trading 36% higher during the pre-market session today after the company reported better-than-expected results for the fourth quarter of 2025. SABR reported an adjusted loss of 1 cent per share for the fourth quarter, which was way narrower than the year-ago quarter’s loss of 8 cents as well as the Zacks Consensus Estimate of a loss of 7 cents.
Sabre reported revenues of $667 million for the quarter ended Dec. 31, 2025, which beat the Zacks Consensus Estimate of $653.4 million. The figure rose 3% year over year on higher air bookings and increased rates.
Sabre’s Q4 in Detail
Distribution revenues rose 5% to $527 million, primarily driven by an increase in air distribution bookings, a favorable travel supplier mix and rate impacts. Our model estimate for Distribution’s revenues was pegged at $513.3 million, indicating 2.7% year-over-year growth.
IT Solutions’ revenues were $140 million, down 4% from the year-ago quarter. Our model estimate for IT Solutions’ revenues was pegged at $141.8 million.
Sabre reported normalized adjusted EBITDA of $119 million, which improved from the year-ago quarter’s $108 million. It also surpassed management’s previous guidance of $110 million. The normalized adjusted EBITDA margin improved 110 basis points year over year to 17.8% in the fourth quarter of 2025.
Sabre Corporation Price, Consensus and EPS Surprise
Sabre exited the December-end quarter with cash, cash equivalents and restricted cash of $910 million compared with the previous quarter’s $447 million.
During the fourth quarter, the company generated operating cash flow and free cash flow of $139 million and $116 million, respectively. During full-year 2025, cash used in operating activities amounted to $109 million, and negative free cash flow was $192 million.
Sabre Initiates Guidance for Q1 & FY26
Sabre initiated guidance for the first quarter and full-year 2026. SABR anticipates pro-forma (which excludes the last year’s divested Hospitality Solutions business) revenue growth in the mid-single-digit percentage range. It expects pro-forma adjusted EBITDA to be around $130 million.
For 2026, Sabre expects its pro-forma revenues to grow in the mid-single-digit percentage range. Pro-forma adjusted EBITDA is projected to be approximately $585 million. The company expects to end 2026 with a negative pro-forma free cash flow of approximately $70 million.
The Zacks Consensus Estimate for Amphenol’s full-year 2026 earnings is pegged at $4.32 per share, revised upward by 8 cents over the past 30 days and suggests a year-over-year increase of 29.3%. Amphenol shares have soared 112.8% over the past year.
The Zacks Consensus Estimate for Analog Devices’ fiscal 2026 earnings has moved upward by 4 cents over the past seven days to $10.01 per share, calling for an increase of 28.5% year over year. Analog Devices shares have climbed 39.7% in trailing 12 months.
The Zacks Consensus Estimate for Applied Optoelectronics’ full-year 2026 earnings has been revised upward to 55 cents per share from 43 cents over the past 60 days. Applied Optoelectronics shares have surged 60.7% over the past year.
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Sabre Shares Soar on Narrower-Than-Expected Q4 Loss, Revenues Rise Y/Y
Key Takeaways
Sabre Corporation (SABR - Free Report) shares were trading 36% higher during the pre-market session today after the company reported better-than-expected results for the fourth quarter of 2025. SABR reported an adjusted loss of 1 cent per share for the fourth quarter, which was way narrower than the year-ago quarter’s loss of 8 cents as well as the Zacks Consensus Estimate of a loss of 7 cents.
Sabre reported revenues of $667 million for the quarter ended Dec. 31, 2025, which beat the Zacks Consensus Estimate of $653.4 million. The figure rose 3% year over year on higher air bookings and increased rates.
Sabre’s Q4 in Detail
Distribution revenues rose 5% to $527 million, primarily driven by an increase in air distribution bookings, a favorable travel supplier mix and rate impacts. Our model estimate for Distribution’s revenues was pegged at $513.3 million, indicating 2.7% year-over-year growth.
IT Solutions’ revenues were $140 million, down 4% from the year-ago quarter. Our model estimate for IT Solutions’ revenues was pegged at $141.8 million.
Sabre reported normalized adjusted EBITDA of $119 million, which improved from the year-ago quarter’s $108 million. It also surpassed management’s previous guidance of $110 million. The normalized adjusted EBITDA margin improved 110 basis points year over year to 17.8% in the fourth quarter of 2025.
Sabre Corporation Price, Consensus and EPS Surprise
Sabre Corporation price-consensus-eps-surprise-chart | Sabre Corporation Quote
Sabre’s Balance Sheet and Cash Flow
Sabre exited the December-end quarter with cash, cash equivalents and restricted cash of $910 million compared with the previous quarter’s $447 million.
During the fourth quarter, the company generated operating cash flow and free cash flow of $139 million and $116 million, respectively. During full-year 2025, cash used in operating activities amounted to $109 million, and negative free cash flow was $192 million.
Sabre Initiates Guidance for Q1 & FY26
Sabre initiated guidance for the first quarter and full-year 2026. SABR anticipates pro-forma (which excludes the last year’s divested Hospitality Solutions business) revenue growth in the mid-single-digit percentage range. It expects pro-forma adjusted EBITDA to be around $130 million.
For 2026, Sabre expects its pro-forma revenues to grow in the mid-single-digit percentage range. Pro-forma adjusted EBITDA is projected to be approximately $585 million. The company expects to end 2026 with a negative pro-forma free cash flow of approximately $70 million.
Sabre’s Zacks Rank & Stocks to Consider
Currently, SABR carries a Zacks Rank #3 (Hold).
Amphenol (APH - Free Report) , Analog Devices (ADI - Free Report) and Applied Optoelectronics (AAOI - Free Report) are some better-ranked stocks that investors can consider in the Zacks Computer and Technology sector. Amphenol, Analog Devices and Applied Optoelectronics each carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Amphenol’s full-year 2026 earnings is pegged at $4.32 per share, revised upward by 8 cents over the past 30 days and suggests a year-over-year increase of 29.3%. Amphenol shares have soared 112.8% over the past year.
The Zacks Consensus Estimate for Analog Devices’ fiscal 2026 earnings has moved upward by 4 cents over the past seven days to $10.01 per share, calling for an increase of 28.5% year over year. Analog Devices shares have climbed 39.7% in trailing 12 months.
The Zacks Consensus Estimate for Applied Optoelectronics’ full-year 2026 earnings has been revised upward to 55 cents per share from 43 cents over the past 60 days. Applied Optoelectronics shares have surged 60.7% over the past year.