May 7th, 2026

The call presented robust financial and operating momentum: double-digit normalized adjusted EBITDA growth (21%), revenue up 8%, strong bookings growth (air distribution +6%) and accelerating product initiatives (payments, lodging, NDC, agentic AI integrations). Management reaffirmed full-year adjusted EBITDA and free cash flow guidance and emphasized a multi-year balance sheet runway. Offsetting these positives were meaningful short-term headwinds from the Middle East conflict and higher fuel costs (an estimated ~7 percentage point Q1 bookings drag in March), a larger-than-expected negative free cash flow in the quarter driven by higher interest and restructuring costs, and a modest trimming of full-year bookings expectations to low- to mid-single-digit growth. Overall, the operational outperformance and strategic progress outweigh the near-term macro and cash-flow pressures.

Company Guidance

Sabre reaffirmed full‑year 2026 guidance of approximately $585 million of pro forma adjusted EBITDA and roughly negative $70 million of free cash flow (driven almost entirely by restructuring costs; excluding those costs FCF would be near‑breakeven), and now expects full‑year air distribution bookings and revenue to grow in the low‑ to mid‑single‑digit range with positive bookings growth in H2 2026. For Q2 it guided revenue to be flat to nominal year‑over‑year, air distribution bookings near flat, gross margin at the higher end of its 56%–57% range, and pro forma adjusted EBITDA of about $130 million, with adjusted technology and SG&A roughly flat sequentially for the remainder of the year. Management also affirmed similar expected gross income versus its February view, reiterated expected positive Airline Technology revenue growth for 2026, and cited Q1 outperformance (Q1 revenue $760M, +8% YoY; normalized adjusted EBITDA $169M, +21%, beating prior ~$130M guide by $39M) as support for maintaining the EBITDA and FCF outlook.