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Sabre
(NASDAQ:SABR)
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Rating:51Neutral
Price Target:
$1.50
▼(-29.91% Downside)
Action:Reiterated
Date:10/27/26
The score is held back primarily by a stressed capital structure (negative equity, high leverage) and uneven cash-flow reliability, despite improved reported profitability. Technicals are also weak with the stock below major moving averages and bearish momentum signals. Offsetting factors include a very low P/E and a supportive earnings update with raised adjusted EBITDA guidance and constructive debt-management actions.
Positive Factors
Revenue and EBITDA improvement
The combination of revenue growth, EBITDA expansion, and wider margins indicates improving operating execution rather than growth purchased solely through higher spending. If sustained, stronger profitability can support reinvestment, debt service, and competitive product development over the next several quarters.
Negative Factors
High leverage and negative equity
Persistently negative equity and substantial debt leave Sabre with a thin capital cushion and limited flexibility if travel volumes weaken. High leverage also increases the importance of consistent cash generation, because interest and refinancing obligations can constrain investment and strategic choices.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and EBITDA improvement
The combination of revenue growth, EBITDA expansion, and wider margins indicates improving operating execution rather than growth purchased solely through higher spending. If sustained, stronger profitability can support reinvestment, debt service, and competitive product development over the next several quarters.
Read all positive factors
Sabre (SABR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$629.59M
Dividend Yield50.78%
Average Volume (3M)7.79M
Price to Earnings (P/E)0.9
Beta (1Y)2.23
Revenue Growth-3.03%
EPS GrowthN/A
CountryUS
Employees4,650
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)1.82
Shares Outstanding403,583,220
10 Day Avg. Volume10,657,868
30 Day Avg. Volume7,790,715
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)-0.51
Price to Sales (P/S)0.19
P/FCF Ratio-2.50
Enterprise Value/Market Cap7.12
Enterprise Value/Revenue1.57
Enterprise Value/Gross Profit2.79
Enterprise Value/Ebitda25.70
Forecast
1Y Price Target
$2.08Price Target Upside-2.65% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)-0.05
Revenue Forecast (FY)$2.89B
Sabre Business Overview & Revenue Model
Company Description
Sabre Corporation, founded in 2006 and headquartered in Southlake, Texas, is a global provider of advanced software and technology solutions specifically designed for the travel industry. The company structures its operations into two primary divi...
How the Company Makes Money
Sabre makes money primarily by selling technology and distribution services to travel suppliers (such as airlines and hotels) and to travel sellers (such as travel agencies and online booking platforms). A major revenue engine is its GDS/travel ma...
Sabre Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call conveyed predominantly positive operational and financial momentum: revenue and normalized adjusted EBITDA beat expectations, margins expanded, Q2 free cash flow turned positive, management raised pro forma adjusted EBITDA guidance to ~$600M and improved the full‑year free cash flow outlook. Growth drivers include Marketplace (payments, media), lodging acceleration, Payment Suite expansion, NDC adoption, Airline Technology wins, and clear early leadership in Agentic AI with growing developer engagement. Offsetting these positives are persistent macro and geopolitical headwinds (Middle East conflict and higher fuel costs estimated to have reduced bookings by ~300–400 bps), modest near‑term bookings growth (+1% in Q2 and cautious H2 guidance), quarter‑to‑quarter variability in Airline Technology revenue, increased near‑term technology investment and interest costs, and one‑time restructuring charges (~$60M) keeping full‑year free cash flow negative. Overall, highlights materially outweigh the lowlights given the beat, raised guidance, and strategic progress.Positive Updates
Revenue Growth Above Expectations
Total revenue of $712 million in Q2, up 4% year‑over‑year, exceeding guidance of flat to nominal growth.
Negative Updates
Middle East Conflict and Fuel Headwinds
Management estimated the combined global impact of the Middle East conflict and higher fuel prices reduced bookings by ~300–400 basis points in Q2, with more acute effects in EMEA and Asia Pacific.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth Above Expectations
Total revenue of $712 million in Q2, up 4% year‑over‑year, exceeding guidance of flat to nominal growth.
Read all positive updates
Company Guidance
Management raised full‑year pro forma adjusted EBITDA to approximately $600 million and improved full‑year free cash flow to about negative $65 million (from negative $70 million) while reaffirming revenue and air distribution bookings guidance; Q3 air distribution bookings are expected flat to low‑single digits and Q4 low to mid‑single digits. Quarterly guidance calls for normalized adjusted EBITDA of roughly $155 million in Q3 and $125 million in Q4, with gross margin toward the high end of the 56%–57% range (Q2 gross margin was 57.1%); Airline Technology revenue is expected to be $140–$150 million per quarter in Q3/Q4, adjusted technology expense is expected to be up low single digits year‑over‑year, and CapEx was increased by $10 million. Q2 results that underpinned the raise included revenue of $712 million (up 4%), normalized adjusted EBITDA of $151 million (up 19%) with a 21.2% adjusted EBITDA margin (up 272 bps), positive free cash flow of $10 million, a cash balance of $697 million, Payment Suite gross spend >$6 billion in the quarter (annualized >$25 billion), hotel revenue growth of 11% with ~35% hotel attach rate, NDC at ~5% of volumes, and the company expects ~ $80 million of free cash flow in H2 (primarily Q4) despite ~$60 million of restructuring costs driving this year's negative FCF; the AR securitization was extended to September 2029 leaving no maturities until 2029.Sabre Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
28
Negative
Cash Flow
40
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.85B | 2.77B | 3.03B | 2.91B | 2.54B | 1.69B |
| Gross Profit | 1.60B | 1.56B | 908.83M | 681.54M | 400.10M | -55.41M |
| EBITDA | 174.33M | 313.53M | 358.67M | 103.03M | 56.43M | -418.38M |
| Net Income | 717.61M | 524.62M | -278.76M | -527.61M | -435.45M | -928.47M |
Balance Sheet | ||||||
| Total Assets | 4.37B | 4.50B | 4.63B | 4.67B | 4.96B | 5.29B |
| Cash, Cash Equivalents and Short-Term Investments | 675.98M | 791.55M | 725.03M | 700.18M | 849.19M | 978.35M |
| Total Debt | 4.32B | 4.45B | 5.12B | 4.89B | 4.81B | 4.83B |
| Total Liabilities | 5.43B | 5.53B | 6.23B | 6.03B | 5.84B | 5.79B |
| Stockholders Equity | -1.07B | -1.05B | -1.62B | -1.39B | -884.33M | -508.91M |
Cash Flow | ||||||
| Free Cash Flow | -16.42M | -213.41M | -13.55M | -31.18M | -345.95M | -472.45M |
| Operating Cash Flow | 74.95M | -130.52M | 70.59M | 56.24M | -276.46M | -418.15M |
| Investing Cash Flow | -1.16B | 976.42M | -29.61M | -110.41M | 170.72M | -29.43M |
| Financing Cash Flow | -789.13M | -685.75M | 39.57M | -94.22M | -75.37M | -50.56M |
Sabre Technical Analysis
Negative
2.14
Price Trends
2.01
Negative
1.95
Negative
1.73
Negative
Market Momentum
-0.14
Positive
35.66
Neutral
38.52
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SABR, the sentiment is Negative. The current price of 2.14 is above the 20-day moving average (MA) of 1.75, above the 50-day MA of 2.01, and above the 200-day MA of 1.73, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 35.66 is Neutral, neither overbought nor oversold. The STOCH value of 38.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SABR.
Sabre Risk Analysis
Sabre disclosed 35 risk factors in its most recent earnings report. Sabre reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Sabre Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $112.81B | 16.56 | -96.70% | 1.09% | 12.85% | 56.24% | |
73 Outperform | $33.37B | 16.67 | 184.84% | 0.66% | 12.00% | 92.75% | |
72 Outperform | $25.87B | 7.22 | 14.59% | 0.45% | 18.08% | 35.16% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
52 Neutral | $3.89B | 118.04 | -12.96% | ― | 5.49% | -35.47% | |
51 Neutral | $629.59M | 0.86 | -69.54% | 50.78% | -3.03% | ― | |
49 Neutral | $1.05B | 224.50 | 0.76% | 12.33% | -4.37% | -92.21% |
* Technology Sector Average
SABR
Sabre
1.60
-0.31
-16.23%
TCOM
Trip.com Group Sponsored ADR
38.57
-33.90
-46.78%
EXPE
Expedia
275.53
57.39
26.31%
MMYT
Makemytrip
42.41
-34.89
-45.14%
BKNG
Booking Holdings
147.94
-53.25
-26.47%
TRIP
TripAdvisor
8.94
-7.00
-43.91%
Sabre Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Sabre Retires High-Coupon Notes, Strengthening Balance Sheet
Positive
Oct 14, 2026
On October 13, 2026, Sabre Financial Borrower, LLC, an indirect wholly owned subsidiary of Sabre Corporation, settled a previously announced cash tender offer for its 11.125% Senior Secured Notes due 2029. The offer, which expired on October 12, 2...
Business Operations and StrategyPrivate Placements and Financing
Sabre Restructures Secured Debt and Extends Maturities
Positive
Sep 28, 2026
On September 28, 2026, Sabre Financial issued $1.35 billion of 9.875% senior secured notes due 2032 and entered into a new $1.35 billion first-lien intercompany loan to Sabre GLBL, using the proceeds to refinance an existing intercompany facility ...
Business Operations and StrategyPrivate Placements and Financing
Sabre Upsizes Secured Notes Offering To Strengthen Capital
Positive
Sep 15, 2026
On September 14, 2026, Sabre announced that subsidiary Sabre Financial Borrower, LLC had launched a private offering of senior secured notes initially sized at $1.1 billion and guaranteed by Sabre Financing Holdings LLC and certain foreign subsidi...
Business Operations and StrategyPrivate Placements and Financing
Sabre Expands and Extends Receivables Securitization Facility
Positive
Aug 7, 2026
On August 4, 2026, Sabre’s indirect subsidiary Sabre Securitization, LLC agreed to amend its accounts receivable securitization facility with PNC and other lenders, with the changes expected to take effect on September 30, 2026 subject to co...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.