Sabre — Financial Results
Operating Performance Is Improving, But Sabre Still Runs at a Net Loss
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Revenue | $2.77B | $2.74B | $2.64B |
| Operating Income | $295M | $242M | $32M |
| Loss from Continuing Operations | $(255M) | $(272M) | $(492M) |
| Adjusted EBITDA | $500M | $447M | $289M |
Revenue grew a modest 1% in 2025, but operating income (profit from core business activity before interest and taxes) jumped from $242M to $295M, driven by meaningful cost cuts. The headline net loss of $255M looks alarming but is heavily distorted by $448M in interest expense and a $91M loss from debt restructuring — neither of which reflects the day-to-day business. Adjusted EBITDA (a measure of underlying cash earnings that strips out those distortions) rose 12% to $500M, continuing a strong recovery from $289M just two years ago.
Technology Costs Fell Sharply, Proving the Cost-Cutting Program Is Working
| Cost Category | 2025 | 2024 | Change |
|---|---|---|---|
| Technology Costs | $711M | $781M | -9% |
| SG&A | $557M | $576M | -3% |
Technology costs dropped $70M, driven by lower headcount expenses and $18M in savings from moving systems to the cloud. Selling, general and administrative costs fell a further $19M. Together, these reductions are the main reason operating profit improved so much despite only modest revenue growth.
A $965M Asset Sale Cleared Significant Debt
Sabre sold its Hospitality Solutions business (software for hotels) to private equity firm TPG in July 2025 for net cash proceeds of $965M. The vast majority of that cash went straight to paying down debt — over $800M in term loans were repaid using the proceeds. This meaningfully reduced the debt load and shifted Sabre to a pure-play travel technology company focused on airlines and travel agencies.
Debt Remains the Dominant Financial Risk at $4.3 Billion
Despite the asset sale proceeds, Sabre still carries $4.3B in outstanding debt (net of issuance costs) as of year-end 2025, with interest expense consuming $448M in 2025 alone. The company spent much of the year refinancing — issuing new notes at rates as high as 11.125% to push maturities out to 2029 and 2030. Near-term maturities look manageable: $150M in exchangeable notes due August 2026 and $202M under a securitization facility due March 2027, against $792M in cash on hand.
A New Cost Program Is Coming, With Restructuring Charges Already Hitting
Sabre accrued a restructuring charge (a one-time cost for workforce reductions and reorganization) of $51M in 2025, with total program costs estimated at $65M. The goal is to keep technology and administrative costs flat in nominal terms over the next two to three years, offsetting inflation without growing the cost base. Management expects 2026 operating cash flow of roughly $10M and free cash flow (operating cash after capital spending) of negative $70M, primarily due to cash payments related to this restructuring.
Travel Agency Incentive Costs Are Rising Faster Than Revenue
Incentive consideration — the payments Sabre makes to travel agencies to secure their bookings on its platform — rose $56M (about 5%) in 2025, outpacing the 1% revenue growth. Large travel agencies have strong bargaining power, and Sabre competes aggressively with rival booking platforms to retain them. Management acknowledges this trend is expected to continue into 2026, which will pressure profit margins unless offset by higher booking volumes or rates.