Sabre (SABR) Q1 2026 earnings summary

Executive summary

• Achieved 8% year-over-year revenue growth in Q1 2026 to $760 million, with strong performance in Marketplace and Airline Technology segments and 6% growth in air distribution bookings, the highest in over two years.

• Normalized Adjusted EBITDA increased 21% year-over-year to $169 million, reflecting operational efficiency and exceeding expectations.

• Operating income rose 27% year-over-year to $116 million, with margin expanding from 13% to 15%.

• Sale of Hospitality Solutions business in July 2025 generated $969 million in net cash proceeds, used primarily to pay down debt; results now presented as discontinued operations.

• Launched first agentic AI travel experience in partnership with MindTrip and PayPal.

Financial highlights

• Q1 2026 revenue: $760 million, up 8% year-over-year, surpassing guidance.

• Marketplace revenue grew 9% to $618 million, driven by a 5% increase in bookings to 101 million and higher average booking fee.

• Airline Technology revenue rose 7% to $142 million, primarily from recognition of previously deferred revenue.

• Operating income: $116 million (up 27%); Net income from continuing operations: $9 million; Adjusted Net Income: $24 million; Adjusted EPS: $0.06.

• Free cash flow was negative $155 million, impacted by higher interest and restructuring costs.

Outlook and guidance

• Reaffirmed full-year 2026 guidance: Pro Forma Adjusted EBITDA ~$585 million (+9% YoY) and Free Cash Flow ~negative $70 million.

• Full-year 2026 air distribution bookings and revenue expected to grow in low- to mid-single digits.

• Q2 2026 guidance: near flat YoY air distribution bookings and revenue, Pro Forma Adjusted EBITDA ~$130 million.

• Gross margin for 2026 expected at the higher end of 56%-57% range.

• Outlook assumes Middle East conflict subsides in Q2, with gradual recovery in air bookings through summer and fall.