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Sabre : Q2 2026 Earnings Presentation
Sabre : Q2 2026 Earnings
About this update from Sabre Corporation
Q2 2026 Earnings Report August 6, 2026 ® Today's presenters Kurt Ekert President and Chief Executive Officer Mike Randolfi Chief Financial Officer Confidential | ©2026 Sabre GLBL Inc. All rights reserved. Strong Q2'26 growth Revenue Normalized Adjusted EBITDA Air Distribution Bookings +$25M (+4%) +$24M (+19%) +0.5M (+1%) Normalized Adjusted EBITDA is a non-GAAP measure. See slide 2 and appendix for a discussion of non-GAAP financial measures, including reconciliations to the most closely correlated GAAP measure. Confidential | ©2026 Sabre GLBL Inc. All rights reserved. Delivering on our strategic priorities Generate Free Cash Flow and Delever the Balance Sheet RECENT ACHIEVEMENTS Exceeded outlook for Normalized Adjusted EBITDA; fourth consecutive quarter of double-digit Normalized Adjusted EBITDA growth Reaffirmed outlook for revenue and air distribution bookings growth Increased outlook for FY'26 Pro Forma Adjusted EBITDA and Free Cash Flow Generated positive Free Cash Flow in Q2'26 No debt maturities until 2029 Drive Growth through Innovation RECENT ACHIEVEMENTS Extending our leadership position in the emerging Agentic AI travel channel Positive air distribution bookings growth Hotel-related revenue increased 11% year-on-year Payment Suite gross spend up 32% year-on-year NDC bookings continued growth Normalized Adjusted EBITDA, Pro Forma Adjusted EBITDA, and Free Cash Flow are non-GAAP measures. See slide 2 and appendix for a discussion of non-GAAP financial measures, including reconciliations to the most closely correlated GAAP measure. Confidential | ©2026 Sabre GLBL Inc. All rights reserved. Q2'26 business and financial results $712M Revenue +4% YoY $151M Normalized Adjusted EBITDA +19% YoY 92M Total Marketplace Bookings +1% YoY 76M Air Distribution Bookings +1% YoY 12M Hotel Distribution Bookings +8% YoY ~35% hotel attachment rate $6B+ Payments Gross Spend +32% YoY 174M Passengers Boarded +2% YoY Normalized Adjusted EBITDA is a non-GAAP measure. See slide 2 and appendix for a discussion of non-GAAP financial measures, including reconciliations to the most closely correlated GAAP measure. Confidential | ©2026 Sabre GLBL Inc. All rights reserved. Cloud-Native Airline Technology Modular AI solutions including revenue optimization tools and GenAI chat solutions Agentic AI Driving growth through innovation Vision: Guiding the world into the Next Age of Travel Strategic Focus Intelligent Retailing & Commerce Open Marketplace Modern Technology Leading Portfolio Air Expansion Expect low-to-mid-single-digit air bookings growth in 2026 Lodging Expansion Modernized connectivity, strong attachment, and growth in media, drive sustained growth Payment Suite Integrated fintech hub, well positioned for continued strong growth Secure & Reliable AI-Powered Open & Interoperable Confidential | ©2026 Sabre GLBL Inc. All rights reserved. The information presented here represents forward-looking statements and reflects expectations as of August 6, 2026. Sabre assumes no obligation to update these statements. Refer to "Forward-looking statements" on Slide 2. Results may be materially different and are affected by many factors including those detailed in the accompanying release and in Sabre's Form 10-Q filed with the SEC on August 6, 2026. Mike Randolfi Chief Financial Officer Confidential | ©2026 Sabre GLBL Inc. All rights reserved. Q2'26 financial highlights $712M Revenue +4% YoY 57% Gross Margin $151M Normalized Adj. EBITDA +19% YoY Normalized Adj. EBITDA Margin +272 bps YoY 21.2% Free Cash Flow $10M Cash on Balance Sheet $697M Normalized Adjusted EBITDA, Normalized Adjusted EBITDA margin, and Free Cash Flow are non-GAAP measures. See slide 2 and the appendix for a discussion of non-GAAP financial measures, including reconciliations to the most closely correlated GAAP measure. Confidential | ©2026 Sabre GLBL Inc. All rights reserved. Q2'26 actual results versus guidance Q2'26 Guidance Q2'26 Actual Air Distribution Bookings Near flat YoY growth 1% YoY Revenue Flat-to-nominal YoY growth $712M +4% YoY Pro Forma Adj. EBITDA ~$130M $151M +19% YoY Pro Forma Adjusted EBITDA is a non-GAAP measures. See slide 2 and the appendix for a discussion of non-GAAP financial measures, including reconciliations to the most closely correlated GAAP measure. See slide 2 for information on Pro Forma amounts. Confidential | ©202 6 5 Sabre GLBL Inc. All rights reserved. Debt maturity profile June 30, 2026 - Debt Maturity Profile $4.4B in Gross Debt 1 $ in millions $1,325 $1,150 4 $917 $470 $373 $200 3 $50 2 2030 Q2 Q3 Q4 Q1 2029 Q2 Q3 Q4 Q1 2028 Q2 Q3 Q4 Q1 2027 Q2 Q3 Q4 Q1 2026 Q2 Q3 Q4 Q1 1 Reflects the paydown of the $50M 2026 Exchangeable Notes stub. 2 The 2026 Exchangeable Notes matured on August 1, 2026 and were settled with cash. 3 Agreement with existing lenders to extend the existing AR Securitization facility through September 28, 2029, subject to certain springing maturity conditions, has been signed and is expected to become effective on September 30, 2026, subject to certain conditions precedent. 4 The 2031 Exchangeable Notes contractually mature in May 2031 and the holders possess a non-contingent, unilateral option to require us to repurchase all or any portion of their Notes, exercisable solely on May 15, 2029; the 2031 Exchangeable Notes are presented as a Q2 2029 maturity in the table above. Confidential | ©2026 Sabre GLBL Inc. All rights reserved. FY 2026 pro forma guidance 1 Positive momentum in 2026, expected to carry into 2027 Expect 2027 mid-single-digit revenue growth, that, combined with cost controls, is anticipated to result in continued year-on-year Adjusted EBITDA growth and full-year positive Free Cash Flow FY'26 Previous Guidance Air Distribution Bookings Low-to-mid-single-digit YoY growth Low-to-mid-single-digit YoY growth Revenue Low-to-mid-single-digit YoY growth Low-to-mid-single-digit YoY growth Pro Forma Gross Margin 56% - 57% 56% - 57% Pro Forma Adj. Technology Expense Low-single-digit YoY increase Low-single-digit YoY increase Pro Forma Adj. SG&A Expense Low-single-digit YoY decrease Low-single-digit YoY decrease Pro Forma Adj. EBITDA ~$600M +12% YoY ~$585M +9% YoY CapEx ~$90M ~$80M Cash Interest ~$475M ~$470M Restructuring ~$60M ~$60M Cash Taxes & Other ~$40M ~$45M Free Cash Flow ~($65M) Includes ~$60M of restructuring ~($70M) Includes ~$60M of restructuring Pro Forma Gross Margin, Pro Forma Adjusted Technology Expense, Pro Forma Adjusted SG&A Expense, Pro Forma Adjusted EBITDA, and Free Cash Flow are non-GAAP measures. See slide 2 and the appendix for a discussion of non-GAAP financial measures, including reconciliations to the most closely correlated GAAP measure. See slide 2 for information on Pro Forma amounts. The information presented here represents forward-looking statements and reflects expectations as of August 6, 2026. Sabre assumes no Confidential | ©2026 Sabre GLBL Inc. All rights reserved. obligation to update these statements. Refer to "Forward-looking statements" on Slide 2. Results may be materially different and are affected by many factors including those detailed in the accompanying release and in Sabre's Form 10-Q filed with the SEC on August 6, 2026. Q3'26 & Q4'26 pro forma guidance 1 Q3'26 Q4'26 Air Distribution Bookings Flat-to-low-single-digit YoY growth Low-to-mid-single-digit YoY growth Revenue Flat-to-low-single-digit YoY growth Low-to-mid-single-digit YoY growth Pro Forma Adj. EBITDA ~$155M ~$125M Pro Forma Adjusted EBITDA is a non-GAAP measures. See slide 2 and the appendix for a discussion of non-GAAP financial measures, including reconciliations to the most closely correlated GAAP measure. See slide 2 for information on Pro Forma amounts. The information presented here represents forward-looking statements and reflects expectations as of August 6, 2026. Sabre assumes no obligation to update these statements. Refer to "Forward-looking statements" on Slide 2. Results may be materially different and are affected by many factors including those detailed in the accompanying release and in Sabre's Form 10-Q filed with the SEC on August 6, 2026. Confidential | ©2026 Sabre GLBL Inc. All rights reserved. Appendix Confidential | ©2026 Sabre GLBL Inc. All rights reserved. Non-GAAP financial measures We have included both financial measures prepared in accordance with U.S. generally accepted accounting principles ("GAAP") as well as certain supplemental non-GAAP financial measures, including Adjusted Net Loss from continuing operations ("Adjusted Net Loss"), Adjusted EBITDA, Normalized Adjusted EBITDA, Pro Forma Adjusted EBITDA, Adjusted EPS, Free Cash Flow, and ratios derived from these measures. The non-GAAP financial measures are presented in addition to, and not as a substitute for, financial results prepared in accordance with GAAP. GAAP financial measures are presented with equal or greater prominence wherever non-GAAP financial measures are discussed. Definitions Adjusted Net Loss is defined as loss from continuing operations adjusted to exclude acquisition-related amortization; restructuring and other costs; loss on extinguishment of debt, net; other, net; disposition-related costs; litigation costs, net; indirect tax matters; stock-based compensation; and the related tax impacts of these adjustments. Pro Forma Gross Margin is defined as Pro Forma Gross Income (as defined below) divided by revenue. Pro Forma Adjusted Technology expense is defined as Technology expense adjusted for expected depreciation and amortization of property and equipment, expected restructuring and other costs, and expected stock-based compensation; less expected pro forma adjustments associated with costs previously allocated to Hospitality Solutions. Pro Forma Adjusted SG&A expense is defined as SG&A expense adjusted for expected depreciation and amortization of property and equipment, expected restructuring and other costs, and expected stock-based compensation; less expected pro forma adjustments associated with costs previously allocated to Hospitality Solutions. Adjusted EBITDA is defined as income (loss) from continuing operations adjusted to exclude depreciation and amortization of property and equipment; amortization of capitalized implementation costs; acquisition-related amortization; restructuring and other costs; interest expense, net; other, net; loss on extinguishment of debt; disposition-related costs; litigation costs, net; indirect tax matters; stock-based compensation; and the provision for income taxes. Normalized Adjusted EBITDA and Pro Forma Adjusted EBITDA are defined as Adjusted EBITDA adjusted for the estimated costs historically allocated to Hospitality Solutions. Normalized Adjusted EBITDA Margin is defined as Normalized Adjusted EBITDA divided by revenue Free Cash Flow is defined as cash provided by (used in)operating activities, less cash used for additions to property and equipment. Adjusted EPS is defined as Adjusted Net Loss divided by diluted weighted-average common shares outstanding. Pro Forma Gross Income is defined as Operating Income adjusted for expected Technology expense, expected SG&A expense, and expected adjustments to Cost of Revenue, excluding technology costs expenses including expected depreciation and amortization of property and equipment and amortization of capitalized implementation costs, expected restructuring and other costs, and expected stock-based compensation; less expected pro forma adjustments associated with costs previously allocated to Hospitality Solutions. Pro Forma Free Cash Flow is defined as Free Cash Flow adjusted to give effect to the Hospitality Solutions Sale. Pro Forma Net Leverage is defined as gross debt minus cash, including net proceeds from the sale of Hospitality Solutions, divided by Pro Forma Adjusted EBITDA Confidential | ©2026 Sabre GLBL Inc. All rights reserved. Non-GAAP financial measures Purpose and Use by Management Management and the board of directors use these non-GAAP financial measures to evaluate trends in our operating performance, assess period-to-period comparability, and support internal planning and decision-making. These measures are particularly useful in evaluating operating performance because historical results have been affected by items that management believes are not indicative of ongoing core operations. In addition, amounts derived from Adjusted EBITDA are used in connection with certain financial covenants under our senior secured credit facilities. These non-GAAP financial measures should not be considered measures of liquidity, nor do they represent cash available for discretionary use. Free Cash Flow does not represent residual cash available for distribution and does not reflect all cash requirements of the business. Other companies, including those within our industry, may define or calculate similarly titled non-GAAP financial measures differently, limiting the usefulness of such measures as comparative tools. Limitations of Non-GAAP Financial Measures Adjusted Net Loss, Adjusted EBITDA, Normalized Adjusted EBITDA, Adjusted EPS, Free Cash Flow, and related ratios are not recognized measures under GAAP and have inherent limitations as analytical tools. Accordingly, they should not be considered in isolation or as substitutes for net income (loss), income (loss) from continuing operations, or cash flows from operating activities prepared in accordance with GAAP. The limitations of these non-GAAP financial measures include, but are not limited to, the following: They exclude certain expenses that are recurring in nature, including stock-based compensation and amortization of acquired intangible assets. Although depreciation and amortization are non-cash expenses, the assets being depreciated and amortized may require replacement in the future, and Adjusted EBITDA does not reflect the capital expenditures required for these replacements. Adjusted EBITDA excludes amortization of capitalized implementation costs related to revenue contracts, which may result in future working capital or cash requirements. Adjusted Net Loss and Adjusted EBITDA do not reflect changes in, or cash requirements associated with, working capital. Adjusted EBITDA does not reflect interest expense, principal repayments, or other cash requirements necessary to service our indebtedness. Adjusted EBITDA does not reflect income tax payments that could reduce cash available to us. Free Cash Flow reflects changes in operating assets and liabilities determined under accrual accounting and does not reflect all cash requirements, including mandatory debt service obligations. Pro Forma Gross Income and Margin do not reflect certain technology costs that other companies may include within a gross income and margin calculation, significantly limiting comparability. Additionally, these measures do not reflect amortization of capitalized implementation costs associated with our revenue contracts, which may require future working capital or cash needs in the future. Other companies, including those within our industry, may define or calculate similarly titled non-GAAP financial measures differently, limiting the usefulness of such measures as comparative tools. Confidential | ©2026 Sabre GLBL Inc. All rights reserved. Non-GAAP pro forma outlook The non-GAAP pro forma financial outlook in this presentation, including Pro Forma Adjusted EBITDA, Pro Forma Gross Margin, Pro Forma Adjusted Technology expense, and Pro Forma Adjusted SG&A expense, is not necessarily indicative of the operating results of the Company after closing of the Hospitality Solutions Sale and utilization of the net proceeds from the sale to pay down outstanding indebtedness, or of the operating results of the Company in the future. The non-GAAP pro forma financial outlook included in this presentation is not pro forma information prepared in accordance with Article 11 of Regulation S-X of the SEC, and the preparation of information in accordance with Article 11 would result in a different presentation. Confidential | ©2026 Sabre GLBL Inc. All rights reserved. Business and financial pro forma financial outlook The Company is providing the third quarter, fourth quarter, and full year 2026 outlook included below on a pro forma basis to give effect to the sale of the Hospitality Solutions business. Pro forma adjustments include an adjustment to remove costs previously allocated to Hospitality Solutions, but that do not meet the GAAP definition for discontinued operations reporting. We believe this presentation will enhance investors' ability to evaluate and compare the Company's operations on a go-forward basis. Third quarter Pro Forma Adjusted EBITDA guidance consists of expected net loss from continuing operations of approximately $38 million; less impact of acquisition-related amortization of approximately $8 million; expected stock-based compensation expense of approximately $20 million; expected depreciation and amortization of property and equipment and amortization of capitalized implementation costs of approximately $20 million; expected interest expense, inclusive of issuance costs and debt discounts, net of approximately $127 million; expected other expenses of approximately $3 million; expected provision for income taxes of approximately $10 million; expected pro forma adjustments of approximately $5 million associated with costs previously allocated to Hospitality Solutions. Fourth quarter Pro Forma Adjusted EBITDA guidance consists of expected net loss from continuing operations of approximately $68 million; less impact of acquisition-related amortization of approximately $8 million; expected stock-based compensation expense of approximately $20 million; expected depreciation and amortization of property and equipment and amortization of capitalized implementation costs of approximately $22 million; expected interest expense, inclusive of issuance costs and debt discounts, net of approximately $123 million; expected other expenses of approximately $1 million; expected provision for income taxes of approximately $18 million; expected pro forma adjustments of approximately $1 million associated with costs previously allocated to Hospitality Solutions. Full-year Pro Forma Adjusted EBITDA guidance consists of expected net loss from continuing operations of approximately $133 million; less impact of acquisition-related amortization of approximately $31 million; expected stock-based compensation expense of approximately $67 million; expected depreciation and amortization of property and equipment and amortization of capitalized implementation costs of approximately $80 million; expected interest expense, inclusive of issuance costs and debt discounts, net of approximately $497 million; expected restructuring and other expenses, net of approximately $5 million; expected provision for income taxes of approximately $28 million; expected pro forma adjustments of approximately $25 million associated with costs previously allocated to Hospitality Solutions. Full year Free Cash Flow guidance consists of expected cash provided by operating activities of approximately $25 million, and less expected additions to property and equipment of approximately $90 million. We have not reconciled our non-GAAP Pro Forma Gross Income or Margin, Adjusted Technology expense and Adjusted SG&A expense to the most comparable GAAP measure because we cannot predict with a reasonable degree of certainty the amount of certain costs including stock-based compensation, restructuring and other expenses and pro forma adjustments associated with costs previously allocated to Hospitality Solutions within each of the respective expense lines, Cost of Revenue, excluding technology costs, Technology costs and SG&A costs, without unreasonable effort. The variability of these items may have a significant impact on our future GAAP financial results. Confidential | ©2026 Sabre GLBL Inc. All rights reserved. Tabular reconciliations for non-GAAP measures Reconciliation of Loss from continuing operations to Adjusted Net Loss from continuing operations and Loss from continuing operations to Adjusted EBITDA: (in thousands, except per share amounts; unaudited) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Loss from continuing operations (36,373) (201,018) (26,979) (204,395) Adjustments: Acquisition-related amortization (1a) 7,730 7,732 15,460 15,464 Restructuring and other costs (2) 2,057 - 11,824 - Loss on extinguishment of debt 230 85,182 2,958 85,182 Other, net (3) (6,161) 3,202 (13,162) 497 Disposition-related costs (4) - (163) - 520 Indirect tax matters (5) 131 (8,226) (3,229) (7,951) Stock-based compensation (6) 20,582 11,290 26,243 23,602 Stockholder Matter Costs (7) 51 - 3,542 - Tax impact of adjustments (8) (55,688) 94,180 (59,805) 82,044 Adjusted Net Loss from continuing operations $ (67,441) $ (7,821) $ (43,148) $ (5,037) Adjusted Net Loss from continuing operations per share $ (0.17) $ (0.02) $ (0.11) $ (0.01) Adjusted diluted weighted-average common shares outstanding 399,351 390,905 397,264 388,601 Loss from continuing operations $ (36,373) $ (201,018) $ (26,979) $ (204,395) Adjustments: Depreciation and amortization of property and equipment (1b) 16,276 14,820 32,422 29,615 Amortization of capitalized implementation costs (1c) 2,997 2,930 5,586 5,893 Acquisition-related amortization (1a) 7,730 7,732 15,460 15,464 Restructuring and other costs (2) 2,057 - 11,824 - Interest expense, net 123,768 111,244 246,731 221,034 Other, net (3) (6,161) 3,202 (13,162) 497 Loss on extinguishment of debt 230 85,182 2,958 85,182 Disposition-related costs (4) - (163) - 520 Indirect tax matters (5) 131 (8,226) (3,229) (7,951) Stock-based compensation (6) 20,582 11,290 26,243 23,602 Stockholder Matter Costs (7) 51 - 3,542 - Provision for income taxes 11,696 91,262 298 79,614 Adjusted EBITDA $ 142,984 $ 118,255 $ 301,694 $ 249,075 Plus estimated costs historically allocated to Hospitality Solutions 8,166 8,943 18,545 17,781 Normalized Adjusted EBITDA $ 151,150 $ 127,198 $ 320,239 $ 266,856 Net Income Margin (5.1)% (37.3)% (1.9)% (15.9)% Adjusted EBITDA margin 20.1 % 17.2 % 20.5 % 17.9 % Normalized Adjusted EBITDA margin 21.2 % 18.5 % 21.8 % 19.2 % Confidential | ©2026 Sabre GLBL Inc. All rights reserved. Tabular reconciliations for non-GAAP measures Reconciliation of Free Cash Flow and Free Cash Flow from Discontinued Operations (in thousands) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Cash provided by (used in) operating activities $ 36,149 $ (217,880) $ (98,011) (281,841) Cash used in investing activities (26,402) (22,853) (47,632) (30,083) Cash provided by (used in) financing activities 23,126 21,292 (68,880) 34,500 Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Cash provided by (used in) operating activities $ 36,149 $ (217,880) $ (98,011) $ (281,841) Additions to property and equipment (26,402) (22,279) (47,632) (39,150) Free Cash Flow $ 9,747 $ (240,159) $ (145,643) $ (320,991) 2026 2025 2026 2025 $ 186 $ (5,973) $ (785) $ (22,616) - (769) - (1,788) $ 186 $ (6,742) $ (785) $ (24,404) Three Months Ended June 30, Six Months Ended June 30, Cash provided by (used in) operating activities from Discontinued Operations Additions to property and equipment from Discontinued Operations Free Cash Flow from Discontinued Operations Confidential | ©2026 Sabre GLBL Inc. All rights reserved. Non-GAAP footnotes Depreciation and amortization expenses: Acquisition-related amortization represents amortization of intangible assets from the take-private transaction in 2007 as well as intangibles associated with acquisitions since that date. Depreciation and amortization of property and equipment includes software developed for internal use as well as amortization of contract acquisition costs. Amortization of capitalized implementation costs represents amortization of upfront costs to implement new customer contracts under our SaaS and hosted revenue model. Restructuring and other costs primarily represent charges related to the inflation offset program we began implementing in the fourth quarter of 2025. Other, net includes $18 million of transition services agreement income, net, in the current year period and a gain on the sale of assets of $5 million recognized in the prior year period. In addition, all periods presented include foreign exchange gains and losses related to the remeasurement of foreign currency denominated balances included in our consolidated balance sheets into the relevant functional currency. Disposition-related costs represent fees and expenses incurred associated with disposition-related activities. 5) Indirect tax matters represents charges and adjustments to charges associated with certain digital services taxes ("DST") and other indirect tax matters related to historical periods, which may ultimately be settled in cash, and certain foreign non-income tax litigation matters. Stock-based compensation represents expense associated with restricted stock units, performance-based restricted stock units, and liability-classified awards related to our 2026 short-term incentive compensation program. Stockholder matter costs represents external legal and professional advisory fees associated with a strategic governance agreement. These costs are considered non-recurring and are not representative of our core ongoing operating performance. The tax impact of adjustments includes the tax effect of each separate adjustment based on the statutory tax rate for the jurisdiction(s) in which the adjustment was taxable or deductible, and the tax effect of items that relate to tax specific financial transactions, tax law changes, uncertain tax positions, valuation allowances and other items. Confidential | ©2026 Sabre GLBL Inc. All rights reserved. Attention : This is an excerpt of the original content. To continue reading it, access the original document here .