second quarter 2026
Filed Aug 6, 2026Sabre reports second quarter 2026 results; exceeds second quarter guidance and raises full year 2026 Pro Forma Adjusted EBITDA and Free Cash Flow guidance.
Revenue increased 4%, operating income increased 4%, and Normalized Adjusted EBITDA increased 19%, while the Company generated $9,747 of Free Cash Flow. Sabre raised full-year Pro Forma Adjusted EBITDA and Free Cash Flow guidance while reaffirming revenue and air distribution bookings growth guidance.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $711,961 (in thousands) | – | 4% |
| Marketplace RevenueGAAP | $576,839 (in thousands) | – | 6% |
| Airline Technology RevenueGAAP | $135,122 (in thousands) | – | (4%) |
| Operating IncomeGAAP | $92,783 (in thousands) | – | 4% |
| Operating MarginGAAP | 13.0% | – | – |
| Net loss attributable to common stockholdersGAAP | $(36,151) (in thousands) | – | 86% |
| Diluted net loss per share attributable to common stockholders (EPS) from continuing operationsGAAP | $(0.09) | – | 82% |
| Net Income MarginGAAP | (5.1)% | – | – |
| Adjusted EBITDAnon-GAAP | $142,984 (in thousands) | – | 21% |
| Adjusted EBITDA Marginnon-GAAP | 20.1% | – | – |
| Normalized Adjusted EBITDAnon-GAAP | $151,150 (in thousands) | – | 19% |
| Normalized Adjusted EBITDA Marginnon-GAAP | 21.2% | – | – |
| Adjusted Net Incomenon-GAAP | $(67,441) (in thousands) | – | (762%) |
| Adjusted EPSnon-GAAP | $(0.17) | – | (750%) |
| Cash provided by (used in) operating activitiesGAAP | $36,149 (in thousands) | – | 117% |
| Cash used in investing activitiesGAAP | $(26,402) (in thousands) | – | (16%) |
| Cash provided by (used in) financing activitiesGAAP | $23,126 (in thousands) | – | 9% |
| Capitalized expendituresother | $(26,402) (in thousands) | – | (19%) |
| Free Cash Flownon-GAAP | $9,747 (in thousands) | – | 104% |
| Pro Forma Free Cash Flownon-GAAP | NA | – | NM |
| Net Debt (total debt, less cash and cash equivalents)other | $3,808,440 (in thousands) | – | – |
| Total Bookingsother | 91,618 (in thousands) | – | 1% |
| Air Bookingsother | 76,077 (in thousands) | – | 1% |
| Lodging and Other Bookingsother | 15,541 (in thousands) | – | 5% |
| Passengers Boardedother | 174,092 (in thousands) | – | 2% |
| Six Months Ended June 30 RevenueGAAP | $1,472,287 (in thousands) | – | 6% |
| Six Months Ended June 30 Marketplace RevenueGAAP | $1,194,850 (in thousands) | – | 7% |
| Six Months Ended June 30 Airline Technology RevenueGAAP | $277,437 (in thousands) | – | 1% |
| Six Months Ended June 30 Operating IncomeGAAP | $208,700 (in thousands) | – | 16% |
| Six Months Ended June 30 Operating MarginGAAP | 14.2% | – | – |
| Six Months Ended June 30 Net loss attributable to common stockholdersGAAP | $(28,035) (in thousands) | – | 87% |
| Six Months Ended June 30 Diluted net loss per share attributable to common stockholders (EPS) from continuing operationsGAAP | $(0.07) | – | 87% |
| Six Months Ended June 30 Net Income MarginGAAP | (1.9)% | – | – |
| Six Months Ended June 30 Adjusted EBITDAnon-GAAP | $301,694 (in thousands) | – | 21% |
| Six Months Ended June 30 Adjusted EBITDA Marginnon-GAAP | 20.5% | – | – |
| Six Months Ended June 30 Normalized Adjusted EBITDAnon-GAAP | $320,239 (in thousands) | – | 20% |
| Six Months Ended June 30 Normalized Adjusted EBITDA Marginnon-GAAP | 21.8% | – | – |
| Six Months Ended June 30 Adjusted Net Incomenon-GAAP | $(43,148) (in thousands) | – | (757%) |
| Six Months Ended June 30 Adjusted EPSnon-GAAP | $(0.11) | – | (89%) |
| Six Months Ended June 30 Cash provided by (used in) operating activitiesGAAP | $(98,011) (in thousands) | – | 65% |
| Six Months Ended June 30 Cash used in investing activitiesGAAP | $(47,632) (in thousands) | – | (58%) |
| Six Months Ended June 30 Cash provided by (used in) financing activitiesGAAP | $(68,880) (in thousands) | – | (300%) |
| Six Months Ended June 30 Capitalized expendituresother | $(47,632) (in thousands) | – | (22%) |
| Six Months Ended June 30 Free Cash Flownon-GAAP | $(145,643) (in thousands) | – | 55% |
| Six Months Ended June 30 Pro Forma Free Cash Flownon-GAAP | NA | – | NM |
| Six Months Ended June 30 Total Bookingsother | 192,880 (in thousands) | – | 3% |
| Six Months Ended June 30 Air Bookingsother | 163,050 (in thousands) | – | 3% |
| Six Months Ended June 30 Lodging and Other Bookingsother | 29,830 (in thousands) | – | 4% |
| Six Months Ended June 30 Passengers Boardedother | 344,126 (in thousands) | – | 2% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| MarketplaceA $25 million increase in transaction-based revenue, primarily due to an increase in distribution bookings and favorable rate impacts, and a $6 million increase in product-based revenue. | $576,839 (in thousands) | – | 6% |
| Airline TechnologyDecrease in license revenue and other revenue. | $135,122 (in thousands) | – | (4%) |
Q3 2026, Q4 2026 and FY 2026 outlook
- RevenueQ3 2026: Flat to low-single-digit YoY growth; Q4 2026: Low-to-mid-single-digit YoY growth; FY 2026: Low-to-mid-single-digit YoY growth
- NoteAir Distribution Bookings, Q3 2026: Flat to low-single-digit YoY growth
- NoteAir Distribution Bookings, Q4 2026: Low-to-mid-single-digit YoY growth
- NoteAir Distribution Bookings, FY 2026: Low-to-mid-single-digit YoY growth
- NotePro Forma Adjusted EBITDA, Q3 2026: ~$155M +3% YoY
- NotePro Forma Adjusted EBITDA, Q4 2026: ~$125M +5% YoY
- NotePro Forma Adjusted EBITDA, FY 2026: ~$600M +12% YoY
- NoteFree Cash Flow, FY 2026: ~($65M)
- NoteFY 2026 expected cash provided by operating activities: approximately $25 million
- NoteFY 2026 expected additions to property and equipment: approximately $90 million
- NoteQ3 2026 expected net loss from continuing operations: approximately $38 million
- NoteQ4 2026 expected net loss from continuing operations: approximately $68 million
- NoteFY 2026 expected net loss from continuing operations: approximately $133 million
What drove it
- Marketplace revenue increased by $31 million, or 6%, to $577 million.
- Total Marketplace bookings, net of cancellations, were 92 million, an increase of approximately 1% from second quarter 2025 levels.
- Average booking fee totaled $6.30, an increase of approximately 4% from second quarter 2025.
- Normalized Adjusted EBITDA improvement was driven by revenue growth and a decrease in labor and professional services due to the inflation offset program, partially offset by an increase in incentive expense.
- The reduction in loss from continuing operations reflected higher operating income, a decrease in loss on extinguishment of debt, and a reduction in the provision for income taxes, partially offset by higher interest expense, net.
Concerns
- Airline Technology revenue decreased by $6 million, or 4%, to $135 million.
- Adjusted Net Income was $(67,441) (in thousands), compared with $(7,821) (in thousands).
- Adjusted EPS was $(0.17), compared with $(0.02).
- The Company cited the impact of the conflict in the Middle East and higher fuel prices on global travel demand.
- FY 2026 Free Cash Flow guidance is ~($65M).
What to watch
- Whether Q3 2026 Air Distribution Bookings and revenue achieve flat to low-single-digit YoY growth.
- Whether Q4 2026 Air Distribution Bookings and revenue achieve low-to-mid-single-digit YoY growth.
- Delivery of FY 2026 Pro Forma Adjusted EBITDA of ~$600M +12% YoY.
- Delivery of FY 2026 Free Cash Flow of ~($65M) and expected cash provided by operating activities of approximately $25 million.
- The trajectory of Airline Technology revenue, which declined 4% in the second quarter.
Balance sheet and cash flow
- Ended quarter with cash balance of $697 million.
- Net Debt (total debt, less cash and cash equivalents) was $3,808,440 (in thousands), compared with $4,738,760 (in thousands).
- Cash provided by operating activities totaled $36 million, versus $218 million used in the second quarter of 2025.
- Free Cash Flow was $10 million, compared to Free Cash Flow of negative $240 million and Pro Forma Free Cash Flow of negative $2 million in the second quarter of 2025.
Analysis
Sabre reported second-quarter revenue of $711,961 (in thousands), up 4%, led by Marketplace Revenue of $576,839 (in thousands), up 6%. Marketplace growth reflected a $25 million increase in transaction-based revenue, primarily from increased distribution bookings and favorable rate impacts, plus a $6 million increase in product-based revenue. Total Marketplace bookings increased approximately 1% to 92 million and the average booking fee increased approximately 4% to $6.30. Airline Technology Revenue declined 4% to $135,122 (in thousands), driven primarily by lower license revenue and other revenue.
Profitability improved on the reported measures. Operating Income increased 4% to $92,783 (in thousands), while Operating Margin was unchanged at 13.0%. Adjusted EBITDA increased 21% to $142,984 (in thousands), and Normalized Adjusted EBITDA increased 19% to $151,150 (in thousands). The respective margins expanded to 20.1% from 17.2% and to 21.2% from 18.5%. Sabre attributed the Normalized Adjusted EBITDA improvement to revenue growth and lower labor and professional-services costs from the inflation offset program, partly offset by higher incentive expense.
The GAAP loss narrowed materially. Net loss attributable to common stockholders was $(36,151) (in thousands), compared with $(256,364) (in thousands), and loss from continuing operations totaled $36 million versus a loss of $201 million. The Company cited higher operating income, reduced loss on extinguishment of debt, and lower income-tax provision, partly offset by higher net interest expense. However, Adjusted Net Income was $(67,441) (in thousands), compared with $(7,821) (in thousands), and Adjusted EPS was $(0.17), compared with $(0.02).
Cash flow turned positive for the quarter. Cash provided by operating activities was $36,149 (in thousands), compared with $(217,880) (in thousands), and Free Cash Flow was $9,747 (in thousands), compared with $(240,159) (in thousands). Sabre ended the quarter with a cash balance of $697 million, while Net Debt was $3,808,440 (in thousands), compared with $4,738,760 (in thousands). Capitalized expenditures were $(26,402) (in thousands), compared with $(22,279) (in thousands).
For the remainder of 2026, Sabre reaffirmed revenue and Air Distribution Bookings growth guidance while raising Pro Forma Adjusted EBITDA and Free Cash Flow guidance. The outlook calls for FY 2026 Pro Forma Adjusted EBITDA of ~$600M +12% YoY and Free Cash Flow of ~($65M), with expected cash provided by operating activities of approximately $25 million and expected additions to property and equipment of approximately $90 million. The filing identifies the conflict in the Middle East and higher fuel prices as pressure on global travel demand, while the decline in Airline Technology revenue remains a notable area to monitor.
Management, verbatim
Sabre delivered a strong second quarter, exceeding our expectations for both revenue and Normalized Adjusted EBITDA growth while generating positive free cash flow.
Kurt Ekert, president and CEO
Despite the impact of the conflict in the Middle East and higher fuel prices on global travel demand, we grew revenue by 4% and Normalized Adjusted EBITDA by 19% in the quarter.
Kurt Ekert, president and CEO
Our first-half performance and outlook for the balance of the year support reaffirming our full-year guidance for revenue and air distribution bookings growth.
Kurt Ekert, president and CEO
Not in the filing
stated, not guessed- Prior-quarter comparisons for reported second-quarter metrics
- Gross margin
- Gross profit
- Operating expenses
- GAAP effective tax rate
- Total debt before cash and cash equivalents
- Cash and cash equivalents line item
- Share repurchases
- Dividends
- Q3 2026 and Q4 2026 Free Cash Flow guidance
- Q3 2026 and Q4 2026 gross-margin guidance
- Q3 2026 and Q4 2026 operating-expense guidance
- Q3 2026 and Q4 2026 tax-rate guidance
- Previous-release outlook for comparison against actual results
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.