Sabre Q4 Earnings Call Highlights

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• Sabre strongly disagrees with the view that AI tools could bypass Sabre's marketplace through direct supplier connections

  80% confidence

• Sabre is in conversations with effectively all the meaningful large players in AI

  80% confidence

• Fourth-quarter results were solid and broadly in line with expectations shared on the third-quarter call, though partially offset by impacts related to a U.S. government shutdown

  80% confidence

• Q4 gross margin decline was primarily due to revenue mix and foreign exchange impacts from a weaker U.S. dollar

  80% confidence

• 2025 was a challenging and dynamic year impacted by exogenous events, but the company met or exceeded fourth-quarter guidance and ended the year with positive momentum

  80% confidence

• Cash interest in 2026 is expected to be about $470 million, up approximately $140 million year-over-year, primarily because Sabre no longer benefits from a prior paid-in-kind instrument

  80% confidence

• Management currently expects mid-single-digit revenue growth in 2027, sustained adjusted EBITDA growth, and positive free cash flow in 2027

  80% confidence

• The government shutdown's impacts were broader than expected due to lower inbound U.S. traffic and an increase in flight cancellations

  80% confidence

• Sabre plans to keep pro forma adjusted technology expense and pro forma adjusted SG&A relatively flat over the next two to three years through an inflation offset program

  80% confidence

• Conversational commerce will be a major channel shift, and agentic travel's potential is comparable to the emergence of online travel agencies decades earlier

  80% confidence

• Sabre's role is underpinned by scale and proprietary capabilities, including over 50 petabytes of curated travel data, processing 14,000 transactions per second, and 11 billion shopping signals per month

  80% confidence

• Sabre launched the first agentic APIs and MCP server for travel about six months ago, purpose-built for LLM consumption at enterprise scale

  80% confidence

• IT solutions revenue is expected to grow mid-single digits in 2026, with quarterly revenue in the $140M to $150M range and growth weighted to the back half of the year

  80% confidence

• 2026 free cash flow is expected to be negative $70 million, driven primarily by restructuring cash costs; excluding restructuring, free cash flow would be near breakeven

  80% confidence

• AI systems need the foundational transaction layer Sabre provides to shop, price, book, and service travel, and the shift toward agentic AI could make Sabre more essential, not less

  80% confidence

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