SABR

Sabre’s second quarter performance saw revenue growth ahead of Wall Street expectations and continued resilience in its core travel technology segments. Management attributed these results to share gains in air bookings, robust corporate travel demand, and growing traction in payments and hotel-related offerings. CEO Kurt Ekert pointed out that, “corporate volumes, which represent nearly half of our Marketplace bookings, demonstrated continued steady performance and resilience throughout the second quarter,” helping offset lingering softness in leisure demand. The company also cited progress in its developer ecosystem and agentic AI initiatives as contributors to operational momentum. Is now the time to buy SABR? Find out in our full research report (it’s free). Revenue: $712 million vs analyst estimates of $694.1 million (3.6% year-on-year growth, 2.6% beat) EPS (GAAP): -$0.09 vs analyst estimates of -$0.13 (30.4% beat) Adjusted EBITDA: $143 million vs analyst estimates of $127 million (20.1% margin, 12.6% beat) EBITDA guidance for Q3 CY2026 is $127 million at the midpoint, below analyst estimates of $151.9 million Operating Margin: 13%, in line with the same quarter last year Total Bookings: up 1.7 million year on year Market Capitalization: $831.4 million While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Jack Halpert (Cantor Fitzgerald) asked about the quarter-over-quarter decline in Airline Technology revenue and if anti-competitive actions by Amadeus were a factor. CFO Michael Randolfi clarified that quarter-to-quarter fluctuations stemmed from the timing of license fees and deliverables, and reiterated the company’s longer-term growth expectations for this segment. Jack Halpert (Cantor Fitzgerald) also inquired about Sabre’s progress in AI-powered travel and the competitive landscape. CEO Kurt Ekert explained that Sabre is investing in AI infrastructure and emphasized the opportunity for agentic AI to become a significant future distribution channel, even as consumer adoption timing remains uncertain. Hin Fung Cheng (Bank of America) questioned the drivers behind Q2 bookings outperformance and the mix between corporate and leisure travel. CEO Kurt Ekert attributed the outperformance to share gains, low-cost carrier platform growth, and a strong corporate travel mix, which now accounts for 45% of distribution volumes. Hin Fung Cheng (Bank of America) asked about NDC (New Distribution Capability) adoption and its impact on unit economics. Ekert confirmed NDC now comprises about 5% of distribution volumes and acknowledged a slight margin impact, especially in Europe, but noted limited exposure due to global mix. Hin Fung Cheng (Bank of America) requested comment on a competitor’s recent customer win. Ekert declined to discuss specific agreements but highlighted Sabre’s own recent airline wins and ongoing momentum in Airline Technology. Looking ahead, the StockStory team will be watching (1) the pace of agentic AI adoption and new developer partnerships, (2) sustained corporate travel strength as a buffer against leisure volatility, and (3) customer wins in Airline Technology, particularly the migration of new airlines to SabreMosaic and NDC platforms. Progress on margin expansion and execution of planned technology investments will also be important to monitor. Sabre currently trades at $2.07, down from $2.12 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members). ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 9:00 a.m. ET Vice President of Investor Relations - Jim Mathias President and Chief Executive Officer - Kurt Ekert Chief Financial Officer - Michael Randolfi Operator: Good morning, and welcome to Sabre's Second Quarter 2026 Earnings Conference Call. My name is Rica, and I'll be your operator. As a reminder, please note, today's call is being recorded. I will now turn the call over to the Vice President of Investor Relations, Jim Mathias. Please go ahead. Jim Mathias: Good morning, and welcome to our second quarter 2026 earnings call. This morning, we issued an earnings press release, which is available on our website at investors.sabre.com. A slide presentation, which accompanies today's prepared remarks, is also available during this call on the Sabre Investor Relations web page. A replay of today's call will be available on our website later this morning. We advise you that our comments contain forward-looking statements that represent our beliefs or expectations about future events, including results of our growth strategies, our AI offerings and AI-related developments in the industry, transactions and bookings growth, expectations regarding the Middle East conflict and recovery as well as the impact of other geopolitical events, commercial and strategic arrangements, our financial guidance, outlook and expectations, pro forma financial information, free cash flow and liquidity, among others. All forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from the statements made on today's conference call. More information on these risks and uncertainties is contained in our earnings release issued this morning and our SEC filings, including our Form 10-Q for the quarter ended June 30, 2026. Throughout today's call, we will also be presenting certain non-GAAP financial measures. References during today's call to adjusted EBITDA, adjusted EBITDA margin, normalized adjusted EBITDA, normalized adjusted EBITDA margin and adjusted technology and adjusted SG&A expenses have been adjusted to exclude certain items. The most directly comparable GAAP measures and reconciliations for non-GAAP measures are available in the earnings release and other documents posted on our website at investors.sabre.com. Normalized amounts have been adjusted for estimated costs, historically allocated to our Hospitality Solutions business, which was sold on July 3, 2025. We are also presenting certain financial information on a pro forma basis to give effect to the sale of the Hospitality Solutions business. Unless otherwise noted, results presented are based on continuing operations. As a reminder, effective last quarter we updated the terminology used to describe our revenue to better reflect our evolving brand identity and market positioning, historically referred to as distribution and IT solutions, these revenue streams have been renamed, Marketplace and Airline Technology, respectively. The specific revenue from products, services and underlying solutions offered within each category remain unchanged. Participating with me today are Kurt Ekert, President and Chief Executive Officer; and Mike Randolfi, Chief Financial Officer. With that, I will turn the call over to Kurt. Kurt Ekert: Thanks, Jim. Good morning, and thank you for joining us. In the second quarter, we delivered results ahead of our expectations and generated positive free cash flow. Importantly, with the strength we've seen in the first half of this year, and our outlook for the remainder of the year, we are increasing our full year 2026 guidance for both pro forma adjusted EBITDA and free cash flow, and we are reaffirming our outlook for revenue and air distribution bookings growth. Revenue in Q2 grew 4% and normalized adjusted EBITDA grew 19% year-on-year to $151 million, exceeding our expectations. Air distribution bookings growth in the quarter came in ahead of our outlook, up 1% year-on-year. We are encouraged by the continued momentum we are seeing from our growth strategies. Since late 2025, Sabre's rate of bookings growth is outpacing the broader industry by approximately 600 basis points. Second quarter air distribution bookings trends were better than expected, driven by a modest recovery in the month of June. The trends we saw in June have continued through July and are reflected in our full year outlook. Consistent with what we shared during our first quarter earnings call regarding conflict-related headwinds in the month of March, air distribution bookings growth remained positive throughout the second quarter in both North and South America. That strength was partially offset by continued impacts from the Middle East conflict as well as higher fuel prices, which have driven airline fare increases. We estimate that the global impact of fuel and the Middle East conflict was 300 to 400 basis points in the second quarter and was relatively more acute in EMEA and Asia Pacific. Importantly, corporate volumes, which represent nearly half of our Marketplace bookings demonstrated continued steady performance and resilience throughout the second quarter, which offset softness in leisure demand. Looking ahead, the underlying assumptions for our growth outlook have not changed. We expect third quarter air distribution bookings growth of flat to low single digits. For the fourth quarter, and consistent with our prior outlook as well as recent airline commentary, we expect bookings to grow at a low to mid-single-digit rate year-on-year. Now turning to Slide 5. For the fourth consecutive quarter, we delivered double-digit year-on-year growth in normalized adjusted EBITDA. We believe these results and positive trends set us up well to continue to drive year-on-year top line and pro forma adjusted EBITDA growth for the remainder of the year and achieve our increased outlook. Our financial performance provides us with a foundation to continue investing in innovation and supporting our growth strategies. Turning to the right side of the slide. We believe Sabre is positioned to be a winner in the rapidly emerging Agentic AI travel channel, and we are working with partners and leaning into our leadership position by increasing the level of investment in AI initiatives. Our Marketplace continues to deliver multisource travel content at an incredible scale. Hotel related revenue growth accelerated in Q2 to 11% year-on-year, driven by higher attach rate and continued growth in media revenue. Our hotel attach rate has improved to approximately 35%. As we continue to enhance our hotel platform, we expect to drive higher conversion. Payment Suite gross spend exceeded $6 billion in the second quarter, up more than 30% year-on-year and is now over $25 billion on an annualized basis. NDC also continues to grow and we expect further acceleration during 2026. Turning to Slide 6. Our key financial and operational metrics demonstrate that we are executing well and delivering broad-based growth. Across our business, we continue to see positive trends, reflecting the disciplined execution of our strategy and the progress we are making against our long-term priorities. Moving to Slide 7. Our developer ecosystem continues to expand. Hundreds of developers are now working in our production environment, reinforcing Sabre's position as the critical infrastructure provider powering the next generation of travel commerce. Agentic AI is no longer just a future opportunity. It is transforming how travel is bought and serviced and Sabre is leading that evolution. Our open platform enables AI agents to shop, book and service travel autonomously, securely and at scale. As the ecosystem develops and adoption accelerates across the industry, we believe Sabre is uniquely positioned to build on our leadership position as we enter this next chapter of travel technology. We recently deployed our Model Context Protocol Server with a global enterprise loyalty and travel service company. MCP acts as a secure intelligent translation layer that lets AI agents handle complex servicing work on their own. Ticket reissues, exchanges, and itinerary changes. Driven by strong demand for our Agentic APIs and MCP Server, we doubled the number of active pilot and production partners from 30 to 60 in the second quarter. We also partnered with Vocal Bridge and DeepLearning.AI, part of the broader AI Fund ecosystem and hosted a Hackathon in Silicon Valley. The response was positive and exceeded our expectations. More than 400 developers participated and submitted over 100 projects built on our Agentic APIs and MCP Server. The solutions they built from voice-enabled travel assistance to agents that can seamlessly coordinate flights, hotels, rideshares and dining, built into a single itinerary demonstrate the power and flexibility of our platform. Importantly, they serve as examples of the growing developer interest in building on Sabre's infrastructure and reinforce our foundational position in enabling the next generation of Agentic AI-powered travel. We are making solid progress across our strategic priorities and believe we are well positioned to deliver sustainable, long-term growth. Across air expansion, Airline Technology, Lodging Expansion and Payments, we are executing our strategy, delivering meaningful value for our customers and investing in innovation that further strengthens our competitive position. We are excited with the momentum in Airline Technology, and I'm pleased to share that a notable carrier in Africa has selected Sabre as its new technology platform provider. As part of this agreement, the airline will migrate its core passenger services to the Sabre platform and adopt our SabreMosaic and NDC IT capabilities. This transition will help modernize key areas of the airline's operations and implementation is expected to be completed by the end of this year. Our progress together with our strong first half performance supports our updated 2026 guidance and increases our confidence in the significant opportunities ahead. With that, I'll turn the call over to Mike to walk through our second quarter financial results and our outlook in more detail. Michael Randolfi: Thanks, Kurt, and good morning, everyone. Please turn to Slide 9. Second quarter revenue, gross profit, normalized adjusted EBITDA and free cash flow all exceeded our expectations. As a result, and based on our current outlook, which is consistent with our prior view for the second half of 2026, we are reaffirming our full year guidance for revenue and air distribution bookings growth and increasing our full year guidance for both pro forma adjusted EBITDA and free cash flow. Turning to the financials. Total revenue was $712 million, an increase of 4% year-on-year, exceeding our expectations of flat to nominal growth. Marketplace revenue grew $31 million, an increase of 6% due to a 1.5% increase in distribution bookings and a 4% increase in average booking fee, which includes growth from our payments and media offerings. Airline Technology revenue was $135 million, broadly in line with our expectations. Second quarter revenue reflected the timing of certain items that can create normal quarter-to-quarter variability. We continue to expect growth in passengers boarded in future quarters. As a result, we expect Airline Technology revenue of $140 million to $150 million per quarter in Q3 and Q4 and continue to expect year-on-year revenue growth in 2026. Gross margin of 57.1% came in at the high end of our 56% to 57% range due primarily to favorability in our average booking fee driven by bookings mix, and revenue growth in higher-margin payments and media products. Second quarter normalized adjusted EBITDA was $151 million, a 19% increase year-on-year and adjusted EBITDA margin expanded 272 basis points to 21.2%. Free cash flow was positive $10 million for the second quarter. Importantly, our expectation for full year free cash flow has improved to approximately negative $65 million from negative $70 million. As a reminder, the negative free cash flow this year is driven almost entirely by approximately $60 million of restructuring costs associated with our inflation offset program. Absent these restructuring costs, we would expect near breakeven free cash flow. We ended the quarter with a cash balance of $697 million. Moving to Slide 10. Air Distribution bookings grew 1% and exceeded expectations despite the impacts of the conflict in the Middle East and higher fuel prices on global travel demand. Revenue growth of 4% exceeded our guidance of flat to nominal. Our normalized adjusted EBITDA result of $151 million was favorable to our guide of approximately $130 million by $21 million. Approximately 2/3 of this outperformance is attributable to higher gross income, which was driven by a higher average booking fee and higher air distribution bookings. The remainder is driven by timing of technology investments, which will now occur in the second half of the year. All in, we are pleased with this quarter's results. Turning to Slide 11. We have signed an agreement with our existing lenders to extend our AR securitization facility through September 2029. As a result of this agreement and our previous refinancing activities, we now have no maturities until 2029. Moving to Slide 12 and our outlook for 2026. We are increasing our outlook for full year pro forma adjusted EBITDA to approximately $600 million and free cash flow to approximately negative $65 million. While our forecast for full year Air Distribution Bookings revenue growth, gross margin and operating expenses remain largely unchanged, we do expect to trend slightly more favorably than prior expectations on gross margin, driving the increased adjusted EBITDA guide. We are increasing our outlook for CapEx by $10 million. Looking at adjusted technology expense, we continue to expect a low single-digit increase year-on-year. Adjusted technology expense is expected to be higher in the second half of the year as compared to the first half of the year due to a shift in timing of investments. Taken together, our total investment in technology in the second half will be higher due to additional investment in product development, including AI, Sabre Mosaic and lodging. With our increased pro forma adjusted EBITDA guidance, updated CapEx outlook and approximately $5 million of higher cash interest due to the May 2026 refinancing of our exchangeable notes, our expectation for full year free cash flow has increased by $5 million to approximately negative $65 million. On to Slide 13 and our expectation for the third and fourth quarters. As Kurt mentioned, the trends we saw in June continued through July. Based on our current outlook, we anticipate third quarter air distribution bookings and revenue to grow in the flat to low single-digit range and fourth quarter air distribution bookings and revenue to grow at a low to mid-single-digit pace year-on-year. We expect our third and fourth quarter gross margin to be towards the higher end of our 56% to 57% range due to the continuation of favorable trends experienced in the first half of the year. As I discussed previously, we expect adjusted technology expense to be higher in the second half of this year as compared to the first half of this year. We expect adjusted SG&A expense to be roughly flat in the second half of the year when compared to the first half of the year. For the third quarter, with guidance of flat to low single-digit growth in air distribution bookings, gross margin at the higher end of our range, the sequential increase in adjusted technology expense, and roughly flat SG&A expense sequentially, we expect normalized adjusted EBITDA to be approximately $155 million. For the fourth quarter, with guidance of low to mid-single-digit growth in air distribution bookings, and similar expectations for gross margin and operating expense versus the third quarter, we anticipate normalized adjusted EBITDA of approximately $125 million. Touching on free cash flow. We expect similar trends in operating cash flow in the third quarter as compared to the second quarter, excluding the impact of interest payments. As a reminder, within the website financials available on our Investor Relations website, we provide a quarterly interest walk. The schedule provides our expected quarterly cash interest payments. In the third quarter, we expect roughly $20 million of higher interest payments versus the second quarter. In total, for the second half of the year, we expect to generate approximately $80 million of free cash flow, primarily in the fourth quarter. We are pleased with our second quarter and the first half results. With our increased outlook for both full year pro forma adjusted EBITDA and free cash flow, we believe we are well positioned for sustained growth and free cash flow generation going forward. And with that, operator, please open the line for questions. Operator: [Operator Instructions] Our first question comes from the line of Jack Halpert of Cantor Fitzgerald. John Halpert: First one, I wanted to double-click a little bit on the Airline Tech being down a little year-over-year. I know you mentioned some quarter-over-quarter variability, down kind of more one-off. One, can you just kind of explain a bit more about what this is? And then I know last quarter, you talked a little bit about Amadeus potentially acting anti-competitively here. I was wondering if maybe that could have something to do with it or what you're seeing there in terms of what they're doing? And then just a second question on AI. We heard from Booking earlier this week that they're participating in some tests with Google and kind of potential agentic travel, checkout and AI mode on search. I was curious what you're hearing from partners about the potential for leading kind of AI labs to pursue this strategy, which maybe I think back in April, there was some news flow that they were stepping away and going more on commerce. I think you guys have said kind of the same thing. So just thoughts there. Michael Randolfi: Yes. Thanks for the question, Jack. On Airline Technology, first, I would just highlight that $135 million for the quarter was exactly in line with our expectations. The thing to keep in mind for that line item, about half of the revenue is driven by PBs. The other half is driven by other earnings constructs, primarily things like license fees and other performance deliverables. And so it can fluctuate a fair bit quarter-to-quarter. And it just happens that there's less of that license fee revenue and performance deliverables that were planned and scheduled in that quarter. Our overall perspective on the business is very much the same. We expect that will be in the $140 million to $150 million range in Q3, Q4. We expect that we'll have year-over-year growth for Airline Technology overall. And we are very optimistic as we move into 2027. Kurt Ekert: With respect to Amadeus' behavior in the market, the concerns that we raised previously still exist. Specifically, we believe that Amadeus is leveraging a dominant position in Passenger Service System, or PSS, to exclude alternative providers in the separate emerging market for Offer, Order, Settlement and Delivery or OOSD. We have 4 specific concerns here that limit airline choice and also constrained information in the market for OOSD. Number one is the restriction on airlines access to their own data. Number two is limitations on API access required for interoperability with Amadeus PSS. Number three is unfair or high integration costs. And number four is prolonged integration delays. Now the victims in this situation are airlines and travelers. By comparison, our approach is centered on openness and modularity where we enable airlines to modernize and evolve their retailing capabilities without being locked into a single vertically integrated stack. And to summarize this, the industry is looking for the industry to modernize for airlines to deserve equal and unequivocal access to best-in-breed modular, open AI-first cloud solutions and Sabre is marching down this path. Now the second question with respect to AI or agentic AI specifically, we've spoken previously, we believe that agentic will emerge as a distribution channel that's very material within the travel industry. What you're seeing near term is a focus by most of the large agentic platforms on enterprise following, for example, with Anthropic or OpenAI are doing, less of a focus near term on consumer. As they pivot to consumer, the first focus, we believe, will be retail e-commerce because it's the largest transaction category. But then they will go to travel thereafter. When you look at travel specifically, what we've heard from the larger agentic players is that they're seeking a solution that is basically an end-to-end experience for the consumer where they stay captive to that platform for the entire experience. With Sabre specifically, as we think about AI, we're investing aggressively to unlock what we believe will both be efficiency and revenue growth opportunities for the company. We believe we're going to win for the following reasons: We have a multisource platform and we have recent agentic AI investments where we're uniquely positioned to serve as the critical infrastructure layer for AI agents, powering the next generation of travel commerce. We were the first to market, and we have had significant engagement with developers with now over 60 active pilot production partners utilizing our agentic APIs and our MCP Server. So we're really excited for the future of agentic AI. The timing on this because of the behavior of the large agentic players is uncertain, but the opportunity is large. Operator: [Operator Instructions] Our next question comes from the line of Victor Cheng of Bank of America. Hin Fung Cheng: Maybe 2 from my side. Can you elaborate a bit more, give us a bit more color on the outperformance in Q2 bookings versus maybe some of your peers? How much of it is leisure versus corporate mix? And kind of when you look at your Q3, Q4 guide what assumptions are you making for both segments? And then secondly, I think Amadeus talked about a 40 million PB Air IT win that they expect to be coming in 2027. Can you comment a bit about that, whether that's existing SabreSonic customer, please? Kurt Ekert: Yes. So let me take them in reverse, Victor. Thank you. First of all, with respect to our Airline Technology business, this is -- has emerged now as a growth business for Sabre. As you heard, we reiterated our full year revenue growth outlook today. We expect that momentum for the overall business as well as for Airline Technology to extend into 2027. We're seeing very strong interest in the SabreMosaic offer and order platform, specifically for the offer management capabilities that we brought to market. As you know, we've recently won Hawaiian and Lao Airlines. And as we announced on the prepared remarks today, we have another undisclosed exciting win. We also expect to announce another significant win in the coming months. Otherwise, we don't comment on the details of individual customer agreements. With respect to the outperformance versus the peers, as we indicated, starting in the fourth quarter of last year, up through today, we're outperforming our competitive peers by about 600 basis points or 6% on average. That existed before the conflict in the Middle East, that's prevailed since then as well. Why is that happening? One is share takeaways, which continue. Two is growth with our low-cost carrier platform. And three is growth in NDC. So it's a matter of competing well with our existing marketplace and also growing the TAM for that travel. The resilience and the strength in the corporate marketplace has certainly buoyed our performance because we have about 45% of our distribution volumes come from corporate or TMC versus for the industry, about 25% to 30%. And as we see, corporate is relatively outperforming leisure, which is a nice reversal on what we experienced last year. When you look at the forward guide, what we have assumed is that the -- again, we saw about a 400 basis point impact from the conflict in the Middle East, coupled with fuel. Fuel being the much bigger portion of the impact. We assume that, that impact will persist but dissipate through the balance of this calendar year. It's clear that the yield increases by airlines are there to stay for some period of time. We're not certain how long. But we're assuming a modest improvement in the macro environment around us going forward. Hin Fung Cheng: And if I can have a follow-up on the NDC that you touched upon. Where are you with NDC volumes right now? And kind of -- it seems like your revenue per booking continues to grow very strong. I guess NDC is not having too much of an impact on that unit economics. Kurt Ekert: Thanks, Victor. With respect to NDC, NDC now represents about 5% of our distribution volumes. It's growing very steadily. Year-on-year, we see, one, that's a combination of adoption of NDC by existing clientele. Two, there is a degree of NDC reintermediation or to say differently, NDC volumes that previously were direct connected that are now coming through our channel. With respect to unit economics, we've long talked about the fact that outside of Europe, the impact of NDC on a revenue basis is slightly dilutive, on a margin basis is also slightly dilutive. Within Europe, where prevailing EDIFACT booking fees are nearly double what they are in the balance of the world, there's a more material degradation of both revenue and unit margin. I remind you that, that represents Europe, only about 16% of our point-of-sale bookings globally. So we have relatively less exposure to that impact than our competitive set. But overall, what you see is that impact measured against our mix performance as well as the strong growth with hotel and with other non-transaction-based revenue, for example, media and payments. So we're very comfortable with the per unit revenue performance that we're seeing. Operator: I am showing no further questions at this time. I would now like to turn it back to Kurt Ekert for closing remarks. Kurt Ekert: Thanks, everybody, for the interest and the support. We look forward to performing and to speaking to you in forward quarters. Thank you. Operator: Thank you for your participation in today's conference. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool recommends Sabre. The Motley Fool has a disclosure policy. Sabre (SABR) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Sabre Corporation? Here are five stocks we like better. Strong second-quarter performance: Revenue rose 4% year over year to $712 million, while normalized adjusted EBITDA increased 19% to $151 million and free cash flow turned positive at $10 million. Results benefited from higher booking fees, Marketplace growth and resilient corporate travel demand. Full-year guidance increased: Sabre raised its pro forma adjusted EBITDA outlook to approximately $600 million and improved its free cash flow forecast to negative $65 million, largely due to about $60 million in restructuring costs. The company ended the quarter with $697 million in cash and no debt maturities until 2029. Investing in future growth: Sabre is expanding its AI, NDC, payments and lodging offerings, with active agentic AI partners doubling to 60 and Payments Suite annualized volume exceeding $25 billion. It also expects continued Airline Technology growth, though fuel costs and Middle East conflict reduced second-quarter performance by an estimated 300–400 basis points. 5 of the Most Active Penny Stocks Worth Your Precious Time Sabre (NASDAQ:SABR) reported second-quarter 2026 results that exceeded its expectations, supported by growth in Marketplace revenue, a higher average booking fee and continued strength in corporate travel volumes. The company raised its full-year outlook for pro forma adjusted EBITDA and free cash flow while reaffirming its projections for revenue and air distribution bookings growth. Revenue rose 4% year over year to $712 million, while normalized adjusted EBITDA increased 19% to $151 million. Adjusted EBITDA margin expanded 272 basis points to 21.2%, and free cash flow was positive $10 million for the quarter. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth “In the second quarter, we delivered results ahead of our expectations and generated positive free cash flow,” President and Chief Executive Officer Kurt Ekert said. He added that Sabre’s first-half performance and outlook for the rest of the year supported higher guidance for adjusted EBITDA and free cash flow. Air distribution bookings increased 1% year over year during the quarter, exceeding the company’s outlook. Marketplace revenue increased $31 million, or 6%, reflecting a 1.5% gain in distribution bookings and a 4% increase in average booking fee. Sabre said the higher booking fee included contributions from its payments and media offerings. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Ekert said Sabre’s booking growth rate has outpaced the broader industry by about 600 basis points since late 2025. He attributed the company’s relative performance to continued share gains, growth in its low-cost carrier platform and NDC expansion. Corporate travel, which accounts for nearly half of Sabre’s Marketplace bookings, remained resilient during the quarter and helped offset weaker leisure demand. Ekert said corporate and travel management company volumes represent about 45% of Sabre’s distribution volume, compared with an estimated 25% to 30% for the industry. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling However, the company continued to see effects from the Middle East conflict and higher fuel prices, which contributed to airline fare increases. Sabre estimated that the combined global impact from fuel costs and the conflict reduced second-quarter performance by roughly 300 to 400 basis points, with EMEA and Asia-Pacific facing relatively greater pressure. Sabre said a modest recovery in June continued into July. For the third quarter, it expects air distribution bookings and revenue to grow from flat to low single digits year over year. For the fourth quarter, it expects low- to mid-single-digit growth. Chief Financial Officer Mike Randolfi said roughly two-thirds of Sabre’s second-quarter adjusted EBITDA outperformance versus its guidance came from higher gross income, driven by average booking fee strength and higher air distribution bookings. The remainder reflected the timing of technology investments that are now expected to occur in the second half of the year. Sabre increased its full-year pro forma adjusted EBITDA outlook to approximately $600 million and improved its full-year free cash flow forecast to approximately negative $65 million, from its prior outlook of negative $70 million. Randolfi said the expected negative free cash flow is driven almost entirely by roughly $60 million in restructuring costs tied to the company’s inflation offset program. Excluding those costs, Sabre would expect near break-even free cash flow for the year. The company ended the quarter with $697 million in cash. It also signed an agreement with existing lenders to extend its accounts receivable securitization facility through September 2029. Following that extension and prior refinancing actions, Sabre said it has no debt maturities until 2029. Third-quarter normalized adjusted EBITDA is expected to be approximately $155 million. Fourth-quarter normalized adjusted EBITDA is expected to be approximately $125 million. Airline Technology revenue is expected to be between $140 million and $150 million in each of the third and fourth quarters. Sabre expects approximately $80 million of free cash flow in the second half, primarily in the fourth quarter. Sabre also increased its capital expenditure outlook by $10 million. It expects technology expense to rise in the second half as it invests further in product development, including artificial intelligence, Sabre Mosaic and lodging initiatives. Sabre said it is expanding investment in AI and views agentic AI as an emerging travel distribution channel. The company’s developer ecosystem included hundreds of developers working in its production environment, according to Ekert. During the second quarter, Sabre doubled the number of active pilot and production partners using its agentic APIs and Model Context Protocol server to 60 from 30. The company said its MCP server was recently deployed with a global enterprise loyalty and travel service company, enabling AI agents to perform servicing tasks such as ticket reissues, exchanges and itinerary changes. Sabre also partnered with Vocal Bridge and DeepLearning.AI to host a Silicon Valley hackathon. More than 400 developers participated and submitted more than 100 projects built using Sabre’s agentic APIs and MCP server, the company said. Elsewhere, hotel-related revenue growth accelerated to 11% year over year, driven by a higher hotel attach rate and continued media revenue growth. Sabre said its hotel attach rate reached about 35%. Payments Suite gross spend exceeded $6 billion during the quarter, up more than 30% from a year earlier, and surpassed a $25 billion annualized run rate. NDC represented about 5% of Sabre’s distribution volume and continued to grow, according to Ekert. He said NDC economics are slightly dilutive to revenue and margins outside Europe, while the impact is more material in Europe because prevailing traditional booking fees are higher there. Europe represents about 16% of Sabre’s global point-of-sale bookings, he said. Airline Technology revenue totaled $135 million, broadly in line with Sabre’s expectations. Randolfi said quarterly results can vary because about half of the segment’s revenue comes from passengers boarded, while the other half is linked to license fees and performance deliverables. Sabre reiterated that it expects Airline Technology revenue to grow in 2026 and said it is optimistic about 2027. Ekert said an African carrier selected Sabre as its new technology platform provider, with plans to migrate core passenger service operations to Sabre’s platform and adopt Sabre Mosaic NDC IT capabilities. Implementation is expected to be completed by the end of 2026. Ekert also said Sabre continues to have concerns about what it views as Amadeus leveraging its passenger service systems position to limit alternative providers in the market for offer, order, settlement and delivery capabilities. He cited airline data access restrictions, API limitations, high integration costs and extended integration delays as concerns, while positioning Sabre’s approach as focused on openness and modularity. Sabre Corporation is a leading travel technology company that provides software, data, mobile and distribution solutions to the global travel industry. Through its Sabre travel marketplace, the company operates one of the world's principal global distribution systems (GDS), connecting travel buyers and suppliers across airlines, hotels, car rental companies and other travel providers. Sabre's suite of products includes reservation and ticketing systems for travel agencies, comprehensive airline operations and passenger services solutions, as well as hospitality property management and central reservation systems for hotels. Established in 1960 as a joint venture between American Airlines and IBM, Sabre introduced one of the first computerized airline reservation systems, pioneering the automation of ticketing and inventory control. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Sabre Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Sabre Corp (NASDAQ:SABR) delivered Q2 2026 results ahead of expectations, with revenue growing 4% year-over-year and normalized adjusted EBITDA up 19% to $151 million, exceeding guidance. The company raised its full-year 2026 guidance for pro forma adjusted EBITDA to approximately $600 million and improved free cash flow outlook to negative $65 million. Sabre Corp (NASDAQ:SABR) continues to outperform the industry in air distribution bookings growth by approximately 600 basis points since late 2025, driven by share gains, low-cost carrier growth, and NDC expansion. Strong growth in ancillary revenue streams: hotel-related revenue grew 11% year-over-year, payment suite gross spend exceeded $6 billion (up 30%+), and NDC volumes are accelerating. Sabre Corp (NASDAQ:SABR) is making significant strides in Agentic AI, doubling active pilot/production partners to 60 and deploying its MCP server, positioning itself as a leader in the emerging AI travel channel. The company secured a new airline technology win with a notable African carrier, adding to recent wins like Hawaiian and Laos Airlines, and expects further momentum into 2027. Corporate travel volumes, representing nearly half of marketplace bookings, showed resilience and outperformed leisure, providing a stable revenue base. Sabre Corp (NASDAQ:SABR) extended its AR securitization facility through 2029, eliminating any debt maturities until 2029 and improving financial flexibility. Gross margin came in at the high end of guidance (57.1%), benefiting from favorable booking mix and higher-margin payments and media revenue. The company generated positive free cash flow of $10 million in Q2, a notable improvement, and expects to generate approximately $80 million in the second half of 2026. Sabre Corp (NASDAQ:SABR) is investing in technology, including AI, Sabre Mosaic, and lodging, to drive long-term growth and innovation. The company's open platform and developer ecosystem are expanding, with hundreds of developers and over 100 projects submitted at a recent hackathon, reinforcing its infrastructure position. Management expressed confidence in the airline technology business, expecting revenue of $140-$150 million per quarter in Q3 and Q4 and year-over-year growth in 2026. The company's strategic focus on air expansion, airline technology, lodging, and payments is delivering broad-based growth and disciplined execution. Sabre Corp (NASDAQ:SABR) is well-positioned for sustained growth and free cash flow generation, with a clear path to near breakeven free cash flow excluding restructuring costs. Air distribution bookings growth was only 1% year-over-year in Q2, impacted by the Middle East conflict and higher fuel prices, which reduced global travel demand. The company estimates that the Middle East conflict and fuel prices had a 300-400 basis point negative impact on bookings in Q2, with more acute effects in EMEA and Asia Pacific. Leisure demand remained soft, partially offsetting the strength in corporate volumes, indicating a mixed demand environment. Airline technology revenue was $135 million in Q2, down year-over-year due to timing of license fees and performance deliverables, though in line with expectations. Full-year free cash flow is still expected to be negative at approximately -$65 million, driven by $60 million in restructuring costs related to the inflation offset program. The company increased its CapEx outlook by $10 million for 2026, reflecting higher technology investments, which could pressure near-term cash flow. Adjusted technology expenses are expected to be higher in the second half of 2026 due to a shift in investment timing, potentially impacting margins. The company faces competitive concerns regarding Amadeus' alleged anti-competitive behavior in the PSS and OOSD markets, which could limit Sabre's growth opportunities. NDC unit economics are slightly dilutive to revenue and margins, particularly in Europe, where booking fees are higher, though Europe represents only 16% of bookings. The company's guidance for Q3 and Q4 assumes a modest improvement in the macro environment, but uncertainty remains regarding the duration of fuel price increases and geopolitical tensions. The timing of Agentic AI revenue generation is uncertain, as large AI platforms are currently focused on enterprise rather than consumer travel, delaying potential material contributions. The company's free cash flow generation is still constrained by restructuring costs and higher interest payments from the May 2026 refinancing of exchangeable notes. Sabre Corp (NASDAQ:SABR) faces ongoing challenges in the airline technology segment, with revenue variability quarter-to-quarter and a need to secure new wins to sustain growth. The company's reliance on corporate travel volumes (45% of bookings) exposes it to potential downturns in business travel demand. Despite positive momentum, the company's overall revenue growth remains modest at 4%, indicating a slow recovery in the travel industry. Warning! GuruFocus has detected 10 Warning Signs with SABR. Is SABR fairly valued? Test your thesis with our free DCF calculator. Q: Can you elaborate on the Q2 bookings outperformance versus peers, the leisure versus corporate mix, and the assumptions for Q3/Q4? Also, can you comment on the recent airline technology win and whether it's an existing Sabre customer?A: Kurt Eckert (CEO) and Mike Randolfi (CFO) explained that Sabre has been outperforming competitive peers by about 600 basis points since Q4 2025, driven by share takeaways, growth in the low-cost carrier platform, and NDC growth. Corporate volumes, which represent about 45% of distribution volumes versus the industry's 25-30%, have shown resilience and outperformed leisure. For the forward guide, they assume the Middle East conflict and fuel impact (estimated at 300-400 basis points in Q2) will persist but dissipate through the year. Regarding airline technology, they reiterated full-year revenue growth and expect momentum to extend into 2027, citing recent wins with Hawaiian and Laos Airlines, an undisclosed African carrier, and another significant win expected in the coming months, though they don't comment on individual customer agreements. Q: Can you explain the year-over-year decline in airline technology revenue and whether Amadeus' anti-competitive behavior is a factor? Also, what are your thoughts on AI labs potentially pursuing agentic travel strategies?A: Kurt Eckert (CEO) clarified that the $135 million airline technology revenue was exactly in line with expectations, noting that about half of the revenue is driven by passengers boarded and the other half by license fees and performance deliverables, which can fluctuate quarter to quarter. He reiterated concerns about Amadeus leveraging its dominant PSS position to exclude alternative providers in the OOSD market, citing four specific issues: restrictions on airline data access, API access limitations, high integration costs, and prolonged delays. On AI, he noted that large agentic platforms are currently focused on enterprise, but as they pivot to consumer, travel will follow retail e-commerce. Sabre is investing aggressively in AI, with over 60 active pilot/production partners using its agentic APIs and MCP server, positioning itself as the critical infrastructure layer for AI agents. Q: Where are NDC volumes currently, and is NDC impacting unit economics?A: Kurt Eckert (CEO) stated that NDC represents about 5% of distribution volumes and is growing steadily through adoption by existing clientele and reintermediation of previously direct-connected volumes. On unit economics, outside of Europe, NDC is slightly dilutive to revenue and margin; within Europe, where booking fees are nearly double, there's more material degradation. However, Europe represents only about 16% of point-of-sale bookings, so Sabre has relatively less exposure than competitors. This impact is offset by strong growth in hotel, media, and payments revenue, making management comfortable with per-unit revenue performance. Q: What drove the Q2 outperformance versus guidance, and what are the updated full-year 2026 expectations?A: Mike Randolfi (CFO) reported that Q2 revenue of $712 million grew 4% year-over-year, exceeding guidance of flat to nominal growth. Normalized adjusted EBITDA of $151 million beat guidance of approximately $130 million by $21 million, with about two-thirds attributable to higher gross income from a higher average booking fee and higher bookings, and the remainder from timing of technology investments shifted to H2. As a result, full-year pro forma adjusted EBITDA guidance was increased to approximately $600 million, and free cash flow guidance improved to approximately negative $65 million (from negative $70 million), with the negative cash flow driven almost entirely by $60 million of restructuring costs. Q: What are the expectations for Q3 and Q4 2026 in terms of bookings, revenue, and EBITDA?A: Mike Randolfi (CFO) guided Q3 air distribution bookings and revenue to grow flat to low single-digit, with normalized adjusted EBITDA of approximately $155 million. For Q4, bookings and revenue are expected to grow at a low to mid single-digit pace, with normalized adjusted EBITDA of approximately $125 million. Gross margins are expected to trend toward the higher end of the 56-57% range in both quarters due to favorable trends. Adjusted technology expenses will be higher in H2 due to increased investment in AI, Sabre Mosaic, and lodging, while SG&A is expected to remain roughly flat. Q: Can you provide more color on the Q2 free cash flow and the company's liquidity position?A: Mike Randolfi (CFO) noted that Q2 free cash flow was positive at $10 million, and the full-year expectation improved to approximately negative $65 million. Excluding restructuring costs, the company would expect near breakeven free cash flow. The company ended the quarter with a cash balance of $697 million. Additionally, Sabre signed an agreement to extend its AR securitization facility through September 2029, meaning the company now has no debt maturities until 2029. Q: What is the current status of the Agentic AI initiatives and developer ecosystem?A: Kurt Eckert (CEO) highlighted that Sabre recently deployed its Model Context Protocol (MCP) server with a global enterprise loyalty and travel service company, enabling AI agents to handle complex servicing tasks like ticket reissues and itinerary changes. The company doubled the number of active pilot and production partners from 30 to 60 in Q2. A hackathon in Silicon Valley attracted over 400 developers who submitted more than 100 projects built on Sabre's agentic APIs and MCP server, demonstrating the platform's flexibility and growing developer interest. Q: How is the hotel and payments business performing?A: Kurt Eckert (CEO) reported that hotel-related revenue growth accelerated to 11% year-over-year in Q2, driven by higher attach rates (now approximately 35%) and continued growth in media revenue. Payment suite gross spend exceeded $6 billion in Q2, up more than 30% year-over-year, and is now over $25 billion on an annualized basis. These higher-margin revenue streams are contributing to the favorable gross margin trends and helping offset any dilution from NDC. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

SOUTHLAKE, Texas, Aug. 6, 2026 /PRNewswire/ -- Sabre Corporation ("Sabre") (NASDAQ: SABR) today announced financial results for the quarter ended June 30, 2026. Sabre has posted its second quarter 2026 earnings release and earnings presentation to its Investor Relations webpage at investors.sabre.com/financial-information/quarterly results. The earnings release is also available on the Securities and Exchange Commission's website at www.sec.gov. As previously announced, Sabre will host a live webcast of its second quarter 2026 earnings conference call today at 9:00 a.m. ET. Management will discuss the financial results, as well as comment on the forward outlook. The webcast is expected to last approximately one hour and will be accessible by visiting the Investor Relations section of Sabre's website at investors.sabre.com. A replay of the event will be available on the website for at least 90 days following the event. About SabrePowering the agentic revolution in travel. Sabre is an AI-native technology leader, backed by one of the world's largest travel data clouds. With AI at its core and operating at unparalleled scale, Sabre transforms insights into innovation, empowering airlines, hoteliers, agencies and other partners to retail, distribute and fulfill travel worldwide. Sabre is built on an open, modular, cloud-native architecture and serves as the backbone for both established leaders and bold, new disruptors, guiding them to the next age of travel retailing through intelligent, connected, and personalized experiences. For more information visit www.sabre.com. Website Information Sabre routinely posts important information for investors on the Investor Relations section of its website, investors.sabre.com, on its LinkedIn account, and on its X account, @Sabre_Corp. The Company intends to use the Investor Relations section of its website, its LinkedIn account, and its X account as a means of disclosing material, non-public information and for complying with disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investor Relations section of Sabre's website, its LinkedIn account and its X account, in addition to following its press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, Sabre's website, its LinkedIn account or its X account is not incorporated by reference into, and is not a part of, this document. SABR-F Contacts MediaCassidy [email protected] [email protected] InvestorsJim [email protected]@sabre.com View original content to download multimedia:https://www.prnewswire.com/news-releases/sabres-second-quarter-2026-earnings-materials-available-on-its-investor-relations-website-302844629.html

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Delivered 4% revenue growth and 19% normalized adjusted EBITDA growth, exceeding expectations despite geopolitical and macroeconomic headwinds. Outpaced broader industry air distribution bookings growth by approximately 600 basis points since late 2025, driven by share gains and low-cost carrier platform expansion. Attributed performance resilience to a high corporate volume mix (nearly 50% of Marketplace bookings), which successfully offset broader softness in leisure demand. Identified a 300 to 400 basis point global impact from the Middle East conflict and high fuel prices, which triggered airline fare increases and dampened demand in EMEA and Asia Pacific. Accelerated lodging expansion with hotel-related revenue growing 11% year-on-year, supported by an improved hotel attach rate of approximately 35%. Positioned the company as a critical infrastructure provider for the emerging Agentic AI channel, doubling active pilot and production partners to 60 in the second quarter. Reported significant momentum in the Payments Suite, with gross spend exceeding $6 billion in Q2, representing a 30% year-on-year increase. Increased full-year 2026 guidance for pro forma adjusted EBITDA to $600 million and free cash flow to negative $65 million based on first-half outperformance. Anticipate air distribution bookings to grow at a low to mid-single-digit rate in Q4, assuming the impact of high fuel prices and regional conflict gradually dissipates. Expect Airline Technology revenue to stabilize between $140 million and $150 million per quarter in the second half of 2026, driven by upcoming passenger service migrations. Planned a sequential increase in technology investment for the second half of the year to support AI initiatives, SabreMosaic, and lodging platform enhancements. Projecting positive free cash flow generation of approximately $80 million in the second half of the year, primarily concentrated in the fourth quarter. Extended the accounts receivable securitization facility through September 2029, resulting in no debt maturities for the next three years. Reported that negative full-year free cash flow is almost entirely driven by $60 million in one-time restructuring costs related to the inflation offset program. Flagged concerns regarding anti-competitive behavior by a major competitor in the Passenger Service System market, specifically regarding data access and API limitations. Noted that while NDC volumes have reached 5% of distribution, the shift remains slightly dilutive to unit margins, particularly in the European market. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management explained that Q2 revenue was impacted by the timing of license fees and performance deliverables, which comprise half of the segment's revenue. Expressed optimism for 2027 growth, citing the SabreMosaic platform and a new undisclosed technology win with a notable African carrier. Reiterated concerns that Amadeus is leveraging its dominant PSS position to restrict airline access to data and interoperability in the emerging OOSD market. Management views Agentic AI as a material future distribution channel and is focusing on providing the 'translation layer' for AI agents to handle complex servicing. Noted that while large AI platforms are currently focused on enterprise and retail e-commerce, Sabre is preparing the infrastructure for their eventual pivot to travel. Highlighted the deployment of the Model Context Protocol (MCP) Server to enable AI agents to autonomously handle ticket reissues and itinerary changes. Attributed the 600 basis point industry outperformance to share takeaways, growth in low-cost carrier content, and NDC re-intermediation. Confirmed that NDC revenue impact is manageable due to Sabre's lower exposure to the European market (16% of bookings) where fee degradation is most acute. Stated that growth in high-margin media and payment products is successfully offsetting the slight dilution caused by the transition to NDC.

Interested in Sabre Insurance Group plc? Here are five stocks we like better. First-half growth remained strong: Gross written premium rose 15.7% to £160 million, while profit before tax was £23.9 million. Sabre remains confident that full-year profit will exceed 2025 levels. Margins were temporarily pressured by growth timing: Net insurance margin fell to 15.7% from 19.2% as newly written business had not fully earned through, but management expects it to return to the 18%-22% target range by year-end. Motorcycle expansion and shareholder returns supported the outlook: Motorcycle premium increased more than 50%, the interim dividend rose 20% to 4.1 pence per share, and the company maintained a strong 161.4% solvency ratio while investing in AI and its Ambition 2030 strategy. Sabre Insurance Group (LON:SBRE) reported higher first-half premium income and said it remains confident that full-year profit will exceed the 2025 result, despite a temporary decline in its underwriting margin as new business written during the period has yet to fully earn through. Gross written premium rose 15.7% year-over-year to £160 million in the first half of 2026, while profit before tax was £23.9 million, slightly below the comparable prior-year period. Chief Financial Officer Adam Westwood said the profit outcome was in line with expectations, reflecting the timing difference between writing insurance policies and recognizing the associated revenue over their duration. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control The insurer said its net insurance margin was 15.7% in the first half, compared with 19.2% in 2025. Sabre expects the measure to return to its 18%-22% target range by year-end as higher 2026 premium volumes earn through and its expense ratio declines. Sabre’s net loss ratio was 55.7%, compared with 54.1% for 2025, while its expense ratio rose to 29.9%. Westwood said the higher expense ratio reflected lower earned premium from reduced volumes written during 2025, alongside continued investments in personnel, systems and technology under its Ambition 2030 strategy. → Financials Hit Record Highs as the AI Trade Unravels—Can They Keep Leading? “Because our growth returned strongly in the first half of this year, there’s a natural timing mismatch between writing the business and earning the associated revenue,” Westwood said. The current-year loss ratio was 66.5%, although the group said this remained within normal volatility and included substantial explicit margins for recently reported claims. Favorable prior-year development contributed a 10.8% prior-year loss ratio, reflecting releases of margins held against older reserves as claims matured. → Why Rare Earth Processing Could Be the Real 2027 Opportunity Chief Actuary Matt Wright said Sabre expects the overall loss ratio to improve in the second half. He said large claims were more prominent in the first quarter than the second, while the company expects the current-year loss ratio to move closer to its target range as business written at target margins earns through. Motor vehicle remained Sabre’s main source of profitability, delivering a 52% net loss ratio. Policy count in the division increased 16.5% year-over-year, while management said the company had maintained underwriting discipline and continued to write new business within its target margins. Motorcycle premium increased by more than 50% from the first half of 2025, driven largely by the rollout of Sabre Direct Motorcycle. The business had an elevated first-half loss ratio due to individually large claims, seasonal factors and the relatively small size of the portfolio. Wright noted that motorcycle claims tend to be weighted toward the peak riding season and said the product had shown similar half-year volatility in 2025. He said the loss ratio was above 100% at the 2025 half-year point before improving to roughly 70% by the end of that year. Taxi underwriting also improved, with its loss ratio falling to 48.2%. However, Sabre said it has deliberately limited volume in parts of the taxi market where pricing does not provide adequate returns. The company said it expects further growth in the second half, even if the wider market does not experience a significant pricing turn. It added that its core motor mix was broadly in line with expectations, although the increasing contribution from motorcycle and the gradual rollout of Ambition 2030 initiatives could reduce average premiums over time. Management described the motor insurance pricing environment as stabilized but still insufficient to fully cover expected claims inflation across the market. Sabre said it sees forward-looking claims inflation of 6% to 7% from its current rating base and believes its pricing already reflects that outlook. The company said other market participants may need to raise prices by 10% to 15% over the next two years to remain profitable. Management said Sabre could potentially increase prices by less than the market because of its existing price adequacy. Claims Director Trevor Webb said claims frequency had recently begun to edge higher after a period of improvement, while personal-injury frequency had remained broadly flat. He said the group was not seeing offsetting improvements in frequency or severity that would lessen the need to account for mid-single-digit claims inflation. Sabre said it was monitoring potential cost pressures in care claims and had not yet seen clear evidence that current geopolitical conflicts were affecting claims costs through the supply chain. The board declared an interim dividend of 4.1 pence per share, up 20% from 3.4 pence a year earlier and in line with its stated dividend policy. Sabre’s £5 million share buyback program is nearing completion. Its solvency coverage ratio stood at 161.4% after accounting for the interim dividend and buyback, slightly above the group’s preferred 140%-160% operating range. Westwood said the position provides flexibility to support growth and investment while maintaining shareholder returns. Sabre also outlined plans to use artificial intelligence to support software development, fraud detection, pricing and customer interactions. Management said it did not intend to reduce headcount through the technology program, instead describing AI as a tool to enhance employees’ work as the business grows. Webb said the insurer is alert to the potential use of AI-generated images and other material in fraudulent claims, but it has not seen large volumes so far. The company continues to use physical vehicle inspections, accident-scene investigations and other established fraud-control measures. Looking ahead, Sabre reiterated that it expects strong growth, full-year profit above 2025 levels and a return of net insurance margin to its target range by the end of 2026. Management said Ambition 2030 remains on track, with early evidence of progress coming from motorcycle growth and further motor pricing initiatives. Sabre Insurance Group plc, through its subsidiaries, engages in the writing of general insurance for motor vehicles in the United Kingdom. It offers taxi, private car, and motorcycle insurance through a network of insurance brokers, as well as through its Go Girl and Insure 2 Drive brands. The company was founded in 1982 and is based in Dorking, the United Kingdom. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Sabre Insurance Group H1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

The market expects Sabre (SABR) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on August 6, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This provider of technology services to the travel industry is expected to post quarterly loss of $0.06 per share in its upcoming report, which represents a year-over-year change of -200%. Revenues are expected to be $695.43 million, up 1.2% from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Sabre, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +65.22%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination indicates that Sabre will most likely beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Sabre would post a loss of$0.05 per share when it actually produced earnings of $0.06, delivering a surprise of +220.00%. Over the last four quarters, the company has beaten consensus EPS estimates two times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Sabre appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sabre Corporation (SABR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

SOUTHLAKE, Texas, July 23, 2026 /PRNewswire/ -- Sabre Corporation ("Sabre") (NASDAQ: SABR) will host a live webcast of its second quarter 2026 earnings conference call on August 6, 2026 at 9:00 a.m. ET. Management will discuss the financial results, as well as comment on the forward outlook. The webcast is expected to last approximately one hour and will be accessible by visiting the Investor Relations section of Sabre's website at investors.sabre.com. A replay of the event will be available on the website for at least 90 days following the event. About Sabre Powering the agentic revolution in travel. Sabre is an AI-native technology leader, backed by one of the world's largest travel data clouds. With AI at its core and operating at unparalleled scale, Sabre transforms insights into innovation, empowering airlines, hoteliers, agencies and other partners to retail, distribute and fulfill travel worldwide. Sabre is built on an open, modular, cloud-native architecture and serves as the backbone for both established leaders and bold, new disruptors, guiding them to the next age of travel retailing through intelligent, connected, and personalized experiences. For more information visit www.sabre.com. Website Information We routinely post important information for investors on the Investor Relations section of our website, investors.sabre.com, on our LinkedIn account, and on our X account, @Sabre_Corp. We intend to use the Investor Relations section of our website, our LinkedIn account, and our X account as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investor Relations section of our website, our LinkedIn account, and our X account, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website, our LinkedIn account, or our X account is not incorporated by reference into, and is not a part of, this document. SABR-F Contacts MediaCassidy [email protected]@sabre.com InvestorsJim [email protected]@sabre.com View original content to download multimedia:https://www.prnewswire.com/news-releases/sabre-announces-upcoming-webcast-of-its-second-quarter-2026-earnings-conference-call-302827252.html