We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Sabre Stock Plunges 36% on Q2 Loss and Revenue Decline
Read MoreHide Full Article
Key Takeaways
{\"0\":\"SABR stock fell nearly 35.7% after Q2 earnings, revenues and EBITDA missed prior guidance.\",\"1\":\"Q2 revenues declined 1% to $687.2M, below estimates, due to weak air bookings.\",\"2\":\"FY25 revenue and EBITDA outlook cut sharply, with FCF now seen at $100-$140M vs. $200M+ forecasted earlier.\"}
Sabre Corporation (SABR - Free Report) shares dropped nearly 35.7% on Thursday after the company reported weaker-than-expected second-quarter 2025 results. The company missed every guidance management had provided previously.
Sabre reported an adjusted loss of 2 cents per share for the second quarter, which compared unfavorably with the Zacks Consensus Estimate of break-even earnings. However, the quarterly loss narrowed from the year-ago quarter’s loss of 6 cents.
SABR missed the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 53.7%.
Sabre reported revenues of $687.2 million for the quarter ended June 30, 2025, which lagged the Zacks Consensus Estimate $705.3 million. The figure declined 1% year over year. Earlier, management projected second-quarter revenues to increase in the low-single-digit percentage range.
Sabre Corporation Price, Consensus and EPS Surprise
Distribution revenues decreased 1% to $546 million. The Distribution segment registered a decline due to lower air bookings and a slight decrease in average booking fees. However, this was partly offset by an increase in hotel distribution bookings. Our model estimate for Distribution’s revenues was pegged at $573.2 million, which indicated 4.1% year-over-year growth.
IT Solutions’ revenues were $141 million, down 2% year over year. This decline was attributed to previously disclosed customer demigrations, partially offset by an increase in license fee revenues and volume growth. Our model estimate for IT Solutions’ revenues was pegged at $144.4 million.
Sabre reported normalized adjusted EBITDA of $127.2 million, which improved from the year-ago quarter’s $120 million. However, it fell short of management’s previous guidance of approximately $140 million. The normalized adjusted EBITDA margin improved 120 basis points year over year to 18.5% in the second quarter of 2025.
Sabre’s Balance Sheet and Cash Flow
Sabre exited the June-end quarter with cash, cash equivalents and restricted cash of $447 million compared with the previous quarter’s $672 million.
During the second quarter, cash used in operating activities amounted to $218 million, and negative free cash flow was $240 million.
Sabre Updates Guidance for FY25
For 2025, Sabre now expects its pro-forma revenues (which excludes the recently divested Hospitality Solutions business) to grow year over year in the low single-digit percentage range, down from the earlier prediction of a double-digit percentage increase.
Pro-forma adjusted EBITDA is now forecasted between $530 million and $570 million, significantly down from the previous forecast of approximately $630 million. The company now expects to generate pro-forma free cash flow in the range of $100-$140 million, down from more than $200 million anticipated earlier.
Additionally, Sabre initiated guidance for the third quarter. SABR anticipates pro-forma revenue growth in the low-to-mid single-digit percentage range. It anticipates pro-forma adjusted EBITDA in the $140-$150 million range. The company forecasts to generate free cash flow between $40 million and $50 million.
The Zacks Consensus Estimate for Bumble’s 2025 earnings has been revised upward by a penny to $1.05 per share in the past 30 days, implying a strong improvement from the loss of $4.61 reported in 2024. Bumble shares have declined 21% year to date.
The Zacks Consensus Estimate for Arista Networks’ 2025 earnings has been revised downward by a penny to $2.57 per share over the past seven days and suggests a year-over-year increase of 13.2%. Arista Networks shares have rallied 26% year to date.
The Zacks Consensus Estimate for MongoDB’s fiscal 2026 earnings has been revised upward by 4 cents to $3.07 per share in the past 60 days, calling for a 16.1% year-over-year decline. MongoDB shares have fallen 2.2% year to date.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Sabre Stock Plunges 36% on Q2 Loss and Revenue Decline
Key Takeaways
Sabre Corporation (SABR - Free Report) shares dropped nearly 35.7% on Thursday after the company reported weaker-than-expected second-quarter 2025 results. The company missed every guidance management had provided previously.
Sabre reported an adjusted loss of 2 cents per share for the second quarter, which compared unfavorably with the Zacks Consensus Estimate of break-even earnings. However, the quarterly loss narrowed from the year-ago quarter’s loss of 6 cents.
SABR missed the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 53.7%.
Sabre reported revenues of $687.2 million for the quarter ended June 30, 2025, which lagged the Zacks Consensus Estimate $705.3 million. The figure declined 1% year over year. Earlier, management projected second-quarter revenues to increase in the low-single-digit percentage range.
Sabre Corporation Price, Consensus and EPS Surprise
Sabre Corporation price-consensus-eps-surprise-chart | Sabre Corporation Quote
Sabre’s Q2 in Detail
Distribution revenues decreased 1% to $546 million. The Distribution segment registered a decline due to lower air bookings and a slight decrease in average booking fees. However, this was partly offset by an increase in hotel distribution bookings. Our model estimate for Distribution’s revenues was pegged at $573.2 million, which indicated 4.1% year-over-year growth.
IT Solutions’ revenues were $141 million, down 2% year over year. This decline was attributed to previously disclosed customer demigrations, partially offset by an increase in license fee revenues and volume growth. Our model estimate for IT Solutions’ revenues was pegged at $144.4 million.
Sabre reported normalized adjusted EBITDA of $127.2 million, which improved from the year-ago quarter’s $120 million. However, it fell short of management’s previous guidance of approximately $140 million. The normalized adjusted EBITDA margin improved 120 basis points year over year to 18.5% in the second quarter of 2025.
Sabre’s Balance Sheet and Cash Flow
Sabre exited the June-end quarter with cash, cash equivalents and restricted cash of $447 million compared with the previous quarter’s $672 million.
During the second quarter, cash used in operating activities amounted to $218 million, and negative free cash flow was $240 million.
Sabre Updates Guidance for FY25
For 2025, Sabre now expects its pro-forma revenues (which excludes the recently divested Hospitality Solutions business) to grow year over year in the low single-digit percentage range, down from the earlier prediction of a double-digit percentage increase.
Pro-forma adjusted EBITDA is now forecasted between $530 million and $570 million, significantly down from the previous forecast of approximately $630 million. The company now expects to generate pro-forma free cash flow in the range of $100-$140 million, down from more than $200 million anticipated earlier.
Additionally, Sabre initiated guidance for the third quarter. SABR anticipates pro-forma revenue growth in the low-to-mid single-digit percentage range. It anticipates pro-forma adjusted EBITDA in the $140-$150 million range. The company forecasts to generate free cash flow between $40 million and $50 million.
Sabre’s Zacks Rank & Stocks to Consider
Currently, SABR carries a Zacks Rank #3 (Hold).
Some better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector are Bumble (BMBL - Free Report) , Arista Networks (ANET - Free Report) and MongoDB (MDB - Free Report) . Bumble sports a Zacks Rank #1 (Strong Buy) at present, while Arista Networks and MongoDB each carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Bumble’s 2025 earnings has been revised upward by a penny to $1.05 per share in the past 30 days, implying a strong improvement from the loss of $4.61 reported in 2024. Bumble shares have declined 21% year to date.
The Zacks Consensus Estimate for Arista Networks’ 2025 earnings has been revised downward by a penny to $2.57 per share over the past seven days and suggests a year-over-year increase of 13.2%. Arista Networks shares have rallied 26% year to date.
The Zacks Consensus Estimate for MongoDB’s fiscal 2026 earnings has been revised upward by 4 cents to $3.07 per share in the past 60 days, calling for a 16.1% year-over-year decline. MongoDB shares have fallen 2.2% year to date.