10-Q · May 7, 2026
Sabre Corporation reported Q1 2026 results with revenue of $760 million, up 8% year-over-year, transitioning back to profitability with an EPS of $0.06 compared to a loss in the prior year. However, significant cash…
Earnings analysis · 10-Q
SABR earnings analysis
Filed November 5, 2026 · Our reading of the company's report
The latest report
Sabre delivered $738.426 million of third-quarter revenue, beating consensus by approximately $7.2 million, while operating margin improved to 14.8% and Normalized Adjusted EBITDA rose 13% to $169.655 million. Diluted…
Read full summary
Sabre delivered $738.426 million of third-quarter revenue, beating consensus by approximately $7.2 million, while operating margin improved to 14.8% and Normalized Adjusted EBITDA rose 13% to $169.655 million. Diluted EPS of $(0.06) missed the $(0.05) estimate, and free cash flow remains structurally weak, with FY2026 guidance still approximately negative $50 million. The company raised Pro Forma Adjusted EBITDA guidance to approximately $610 million, but its $4.4 billion debt balance and 9.875% secured notes underscore significant leverage and refinancing risks.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.06
- Operating margin
- 14.8%
What stood out
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Revenue beat estimates and grew year over year
Third-quarter revenue was $738.426 million, up 3.7% from $712 million in 2026Q2 and 3.3% from $715 million in 2025Q3. Revenue exceeded the $731.252 million consensus estimate by approximately $7.2 million.
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Operating leverage improved
Operating margin increased to 14.8% from 13.0% in 2026Q2 and 13.1% in 2025Q3, a sequential improvement of 180 basis points and year-over-year improvement of 170 basis points.
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EBITDA rose despite EPS miss
Normalized Adjusted EBITDA increased 13% to $169.655 million, indicating stronger operating performance despite the company reporting diluted EPS of $(0.06), below the $(0.05) consensus estimate.
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Full-year EBITDA outlook raised
Management reaffirmed FY2026 revenue and air marketplace bookings growth at low-to-mid-single-digit rates and raised Pro Forma Adjusted EBITDA guidance to approximately $610 million, or 14% year-over-year growth.
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Cash-flow outlook improved
FY2026 Free Cash Flow guidance was raised to approximately negative $50 million, an improvement in the expected cash-burn outlook but still indicating negative full-year free cash flow.
What to watch
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Heavy leverage and refinancing risk
The company reported $4.4 billion of indebtedness outstanding as of September 30, 2026, increasing exposure to refinancing, interest expense and covenant risks. The filing also disclosed 9.875% senior secured notes due 2032, highlighting the elevated cost of debt capital.
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Cash generation remains negative
Management’s raised FY2026 Free Cash Flow outlook remains approximately negative $50 million, while the filing states the company may require more cash than it generates from operating activities to fund capital investments and liquidity needs.
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Customer contract renewals threaten revenue
Approximately 15% to 20% of bookings are represented by travel-buyer agreements up for renewal in any given year. Failure to renew these contracts on favorable terms could pressure transaction volumes, revenue and margins.
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Impairment exposure remains material
Goodwill and intangible assets totaled $2.6 billion as of September 30, 2026. Lower booking volumes, travel supplier capacity, growth rates or cost-saving realization could lead to impairment charges.
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Unfunded pension obligations
The company’s pension plans were estimated to be unfunded by $38 million as of December 31, 2025, creating potential future cash contribution requirements that could reduce liquidity available for operations.
Management's outlook
FY2026 revenue and air marketplace bookings outlook was reaffirmed at low-to-mid-single-digit growth. Pro Forma Adjusted EBITDA guidance was raised to approximately $610 million, or 14% year-over-year growth, and Free Cash Flow guidance was raised to approximately negative $50 million.
Earlier filings 4
10-K · February 18, 2026
Sabre positions itself as a technology-first travel platform focused on its Sabre Mosaic Marketplace and airline SaaS products, while prioritizing two strategic objectives: “driving growth through innovation” and…
10-K · February 20, 2025
Sabre positions itself as a global travel technology platform organized into two segments (Travel Solutions and Hospitality Solutions) with a stated strategic focus on generating positive free cash flow, modernizing…
10-Q · August 1, 2024
Sabre reported Q2 revenue of $767,241 (thousands) (+$29,712 vs. Q2 2023) and YTD revenue of $1,550,127 (thousands) (+$69,903 Y/Y). Operating profit turned positive to $60,855 (thousands) in the quarter versus an…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.