Sabre (SABR)
NASDAQ:SABR
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Sabre
(NASDAQ:SABR)
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Rating:52Neutral
Price Target:
$1.50
▼(-1.32% Downside)
Action:ReiteratedDate:03/06/26
The score is held back primarily by weak financial resilience (negative equity, heavy leverage, and negative TTM operating/free cash flow). Momentum is strong but technically overbought, while earnings-call guidance and recent corporate actions support a gradual operational improvement despite higher interest burden and near-term free-cash-flow pressure.
Positive Factors
Durable Marketplace + Tech Revenue Model
Sabre’s core GDS plus airline technology platforms create recurring, transaction- and subscription-based revenue streams. This two-sided marketplace and long-term airline contracts generate durable cash flow drivers tied to travel volumes and sticky customer relationships, supporting structural revenue resilience over multiple cycles.
Negative Factors
Stressed Balance Sheet
Negative equity and elevated leverage are structural constraints: they limit financial flexibility, increase creditor scrutiny, and reduce cushion against demand shocks. Over a 2–6 month horizon this raises refinancing and covenant risk and constrains strategic optionality despite operational gains.
Read all positive and negative factors
Positive Factors
Negative Factors
Durable Marketplace + Tech Revenue Model
Sabre’s core GDS plus airline technology platforms create recurring, transaction- and subscription-based revenue streams. This two-sided marketplace and long-term airline contracts generate durable cash flow drivers tied to travel volumes and sticky customer relationships, supporting structural revenue resilience over multiple cycles.
Read all positive factors
Sabre (SABR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$600.65M
Dividend YieldN/A
Average Volume (3M)5.93M
Price to Earnings (P/E)―
Beta (1Y)2.00
Revenue Growth-3.61%
EPS GrowthN/A
CountryUS
Employees6,253
SectorTechnology
Sector Strength88
IndustryTravel Services
Share Statistics
EPS (TTM)-0.01
Shares Outstanding395,165,040
10 Day Avg. Volume7,461,945
30 Day Avg. Volume5,934,532
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)-0.51
Price to Sales (P/S)0.19
P/FCF Ratio-2.50
Enterprise Value/Market Cap7.10
Enterprise Value/Revenue1.50
Enterprise Value/Gross Profit3.43
Enterprise Value/Ebitda11.00
Forecast
1Y Price Target
$1.91Price Target Upside25.66% Upside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)-0.02
Revenue Forecast (FY)$2.92B
Sabre Business Overview & Revenue Model
Company Description
Sabre Corporation, through its subsidiary, Sabre Holdings Corporation, provides software and technology solutions for the travel industry worldwide. It operates in two segments, Travel Solutions and Hospitality Solutions. The Travel Solutions segm...
How the Company Makes Money
Sabre primarily makes money through (1) travel distribution fees and (2) technology solutions sold to travel suppliers.
1) Travel marketplace / distribution (GDS) revenue: Sabre operates a global distribution system that enables travel agencies a...
Sabre Earnings Call Summary
Earnings Call Date:Feb 18, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The call conveyed cautious optimism: Sabre demonstrated clear operational and financial progress — double-digit normalized adjusted EBITDA growth, margin expansion, meaningful deleveraging (paid down >$1B of debt and reduced net leverage ~25%), a strong cash balance, accelerating product initiatives (Agentic APIs, MCP server), notable partnerships (PayPal, MindTrip, Virgin Australia), robust payments growth (>35% gross spend growth), and constructive guidance for mid-single-digit volume and revenue growth in 2026–2027. Near-term headwinds include a one-time restructuring charge driving a negative free cash flow in 2026, a materially higher cash interest profile (~$470M in 2026), gross margin pressure from mix and FX, and some disruption from exogenous events (e.g., government shutdown) that temporarily suppressed Q4 air bookings versus prior guidance. On balance, the company’s positives — operational momentum, product/AI positioning, deleveraging, and guidance for improving metrics and return to positive free cash flow in 2027 — outweigh the near-term financial and macro-related challenges.Positive Updates
Normalized Adjusted EBITDA Growth
Full-year 2025 normalized adjusted EBITDA grew 10% year-over-year to $536,000,000, with normalized adjusted EBITDA margin expanding ~166 basis points to 19%. Fourth-quarter 2025 normalized adjusted EBITDA was $119,000,000, up 10% year-over-year, with margin expanding ~107 basis points to 18%.
Negative Updates
Near-Term Free Cash Flow Pressure in 2026
2026 free cash flow is expected to be negative $70,000,000, driven primarily by approximately $60,000,000 of cash outflows related to the inflation offset / restructuring program. Management noted that excluding the restructuring charge, 2026 free cash flow would be near breakeven.
Read all updates
Q4-2025 Updates
Positive
Negative
Normalized Adjusted EBITDA Growth
Full-year 2025 normalized adjusted EBITDA grew 10% year-over-year to $536,000,000, with normalized adjusted EBITDA margin expanding ~166 basis points to 19%. Fourth-quarter 2025 normalized adjusted EBITDA was $119,000,000, up 10% year-over-year, with margin expanding ~107 basis points to 18%.
Read all positive updates
Company Guidance
Sabre guided to mid-single-digit volume growth in 2026 (and again in 2027) driving mid-single-digit revenue growth, with IT Solutions revenue also expected to grow mid-single-digits and run about $140–$150M per quarter (back‑half weighted); they expect pro forma gross margin of 56–57% and pro forma adjusted EBITDA of ~ $585M in 2026, roughly $80M of annual CapEx, approximately $470M of cash interest (up ~$140M YoY), and total restructuring costs of ~ $65M (including a $51M charge in 2025 and ~ $60M of cash outflows in 2026) that contribute to 2026 free cash flow of about negative $70M (near breakeven excluding restructuring), with Q1 2026 expected to deliver mid‑single‑digit volume and revenue growth, gross margin at the low end of the 56–57% range, and pro forma adjusted EBITDA of ~ $130M; management also expects to keep pro forma adjusted technology roughly flat (low‑single‑digit increase for volume) and pro forma adjusted SG&A down a low single digit through an inflation‑offset program.Sabre Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
23
Negative
Cash Flow
31
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.77B | 3.03B | 2.91B | 2.54B | 1.69B |
| Gross Profit | 1.56B | 908.83M | 681.54M | 400.10M | -55.41M |
| EBITDA | 456.80M | 358.67M | 103.03M | 56.43M | -418.38M |
| Net Income | 524.62M | -278.76M | -527.61M | -435.45M | -928.47M |
Balance Sheet | |||||
| Total Assets | 4.50B | 4.63B | 4.67B | 4.96B | 5.29B |
| Cash, Cash Equivalents and Short-Term Investments | 791.55M | 725.03M | 700.18M | 849.19M | 978.35M |
| Total Debt | 4.45B | 5.12B | 4.89B | 4.81B | 4.83B |
| Total Liabilities | 5.53B | 6.23B | 6.03B | 5.84B | 5.79B |
| Stockholders Equity | -1.05B | -1.62B | -1.39B | -884.33M | -508.91M |
Cash Flow | |||||
| Free Cash Flow | -213.41M | -13.55M | -31.18M | -345.95M | -472.45M |
| Operating Cash Flow | -130.52M | 70.59M | 56.24M | -276.46M | -418.15M |
| Investing Cash Flow | 976.42M | -29.61M | -110.41M | 170.72M | -29.43M |
| Financing Cash Flow | -685.75M | 39.57M | -94.22M | -75.37M | -50.56M |
Sabre Technical Analysis
Positive
1.52
Price Trends
1.32
Positive
1.45
Positive
1.88
Negative
Market Momentum
0.05
Positive
53.24
Neutral
53.01
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SABR, the sentiment is Positive. The current price of 1.52 is below the 20-day moving average (MA) of 1.58, above the 50-day MA of 1.32, and below the 200-day MA of 1.88, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 53.24 is Neutral, neither overbought nor oversold. The STOCH value of 53.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SABR.
Sabre Risk Analysis
Sabre disclosed 35 risk factors in its most recent earnings report. Sabre reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 2 New Risks
1.
An active market for our common stock may not be maintained. Q4, 2025
2.
The market price of our common stock may be volatile and could decline regardless of our operating performance. Q4, 2025
Sabre Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $32.94B | 10.21 | 20.98% | 0.39% | 17.34% | 91.50% | |
69 Neutral | $128.66B | 30.43 | -93.64% | 0.71% | 13.39% | -4.72% | |
62 Neutral | $27.67B | 27.45 | 114.29% | 0.56% | 7.61% | 9.99% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
52 Neutral | $600.65M | -1.30 | -38.78% | ― | -3.61% | ― | |
50 Neutral | $3.44B | 276.78 | 31.18% | ― | 11.07% | -76.51% | |
50 Neutral | $1.16B | 45.50 | 6.10% | ― | 3.05% | 890.32% |
* Technology Sector Average
SABR
Sabre
1.52
-1.29
-45.91%
TCOM
Trip.com Group Sponsored ADR
48.49
-15.09
-23.73%
EXPE
Expedia
225.81
59.07
35.42%
MMYT
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36.30
-61.69
-62.96%
BKNG
Booking Holdings
4,062.14
-509.73
-11.15%
TRIP
TripAdvisor
10.11
-4.06
-28.65%
Sabre Corporate Events
Business Operations and StrategyExecutive/Board Changes
Sabre Forms Strategic Governance Partnership With Constellation Software
Positive
Mar 5, 2026
On March 5, 2026, Sabre Corporation entered into a strategic governance agreement with Constellation Software and its affiliate, under which Sabre will add Constellation executive Damian McKay to its board as an independent director representing C...
Business Operations and StrategyPrivate Placements and Financing
Sabre Completes Redemption of 2027 Senior Secured Notes
Positive
Mar 4, 2026
On December 23, 2025, Sabre GLBL Inc. notified Computershare Trust Company, N.A., acting as trustee and collateral agent, of its intention to redeem all $91.6 million of its 8.625% Senior Secured Notes due 2027 on March 1, 2026. The planned redemp...
Business Operations and Strategy
Sabre Adopts One-Year Shareholder Rights Plan Amid Stake Build
Negative
Mar 2, 2026
On March 1, 2026, Sabre’s board adopted a one‑year, limited‑duration shareholder rights plan and declared a dividend of one preferred share purchase right for each common share outstanding as of March 11, 2026. The plan, which ex...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.