SABR · Sabre Corporation

Sabre Corporation delivered a strong Q1 2026 performance, with revenue rising 8% to $760 million, primarily fueled by a 9% increase in Marketplace revenue to $618 million. This growth stemmed from a 5% rise in total bookings to 101 million, including 6% air distribution bookings growth—the highest in over two years—coupled with a 3% higher average booking fee of $6.10. Airline Technology revenue also grew 7% to $142 million, aided by recognition of previously deferred revenue. Operating income surged 27% to $116 million, lifting the margin from 13% to 15.2%, reflecting effective cost management despite higher incentive expenses. Normalized Adjusted EBITDA climbed 21% to $169 million, exceeding prior guidance and underscoring execution of growth strategies. CEO Kurt Ekert highlighted momentum in air bookings outpacing industry trends, tempered by Middle East conflict and fuel prices, but expects recovery driving full-year positive growth. The company reaffirmed FY2026 Pro Forma Adjusted EBITDA guidance at ~$585 million (+9% YoY) and Free Cash Flow outlook, signaling confidence amid AI innovations like the agentic AI launch with MindTrip and PayPal. Cash flows showed increased seasonal usage, with operating cash burn at $134 million versus $64 million prior year, ending with $665 million cash and reduced net debt to $3.8 billion.