Sabre (SABR) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue rose 4% year-over-year to $712 million, with Normalized Adjusted EBITDA up 19% to $151 million and positive free cash flow generated, exceeding guidance.

• Net loss from continuing operations improved to $36 million from $201 million in Q2 2025, reflecting better operating performance.

• Full-year 2026 guidance for Pro Forma Adjusted EBITDA and Free Cash Flow was raised, with revenue and air distribution bookings outlook reaffirmed.

• Corporate travel demand remained resilient, offsetting leisure softness, and strategic investments in AI and technology continued.

• Sale of Hospitality Solutions business completed in July 2025, with proceeds used to pay down debt and results now presented as discontinued operations.

Financial highlights

• Q2 2026 revenue reached $712 million (+4% YoY), with Normalized Adjusted EBITDA at $151 million (+19% YoY) and Adjusted EBITDA at $143 million (+21% YoY).

• Free cash flow was $10 million in Q2 2026, a turnaround from negative $240 million in Q2 2025.

• Cash balance at quarter-end was $697 million.

• Gross margin was 57.1%, at the high end of the guided range.

• Marketplace bookings totaled 92 million (+1% YoY), with hotel distribution bookings up 8% and payment suite gross spend exceeding $6 billion (+32% YoY).

Outlook and guidance

• Full-year 2026 Pro Forma Adjusted EBITDA guidance raised to ~$600 million (+12% YoY), with Free Cash Flow expected at approximately -$65 million.

• Revenue and air distribution bookings guidance reaffirmed, expecting low- to mid-single-digit YoY growth.

• Q3 and Q4 2026 Pro Forma Adjusted EBITDA expected at ~$155 million and ~$125 million, respectively.

• Full-year Free Cash Flow guidance: ~$25 million operating cash flow, less ~$90 million in capex.

• Liquidity is expected to be sufficient for at least the next twelve months, with no major debt maturities until 2029.