Sabre (SABR) Down 10.1% Since Last Earnings Report: Can It Rebound?

A month has gone by since the last earnings report for Sabre (SABR). Shares have lost about 10.1% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Sabre due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Sabre Corporation before we dive into how investors and analysts have reacted as of late.

Sabre's Q3 Earnings Miss, Revenues Grow on Higher Bookings and Rates

Sabre reported mixed results for the third quarter of 2025, wherein the top line surpassed the Zacks Consensus Estimate, while the bottom line missed the same. SABR reported an adjusted loss of 1 cent per share for the third quarter, which compared unfavorably with the Zacks Consensus Estimate of earnings of 4 cents. However, the quarterly loss narrowed from the year-ago quarter’s loss of 5 cents.

Sabre reported revenues of $715.2 million for the quarter ended Sept. 30, 2025, which beat the Zacks Consensus Estimate $708.8 million. The figure rose 3.5% year over year on higher air and hotel bookings, as well as increased rates. Earlier, management projected third-quarter revenues to grow in the low-to-mid single-digit percentage range.

Sabre’s Q3 in Detail

Distribution revenues increased 4% to $575 million, primarily driven by an increase in air and hotel distribution bookings, a favorable travel supplier mix and rate impacts. Our model estimate for Distribution’s revenues was pegged at $570.7 million, which indicated 3.6% year-over-year growth.

IT Solutions’ revenues were $140 million, flat on a year-over-year basis. Our model estimate for IT Solutions’ revenues was pegged at $137 million.

Sabre reported normalized adjusted EBITDA of $150 million, which improved from the year-ago quarter’s $121 million. It also matched the top-end of management’s previous guidance of $140-150 million. The normalized adjusted EBITDA margin improved 350 basis points year over year to 19.7% in the third quarter of 2025.

Sabre’s Balance Sheet and Cash Flow

Sabre exited the September-end quarter with cash, cash equivalents and restricted cash of $447 million compared with the previous quarter’s $682.8 million.

During the third quarter, the company generated operating cash flow and free cash flow of $33.7 million and $13.4 million, respectively. During the first nine months of 2025, cash used in operating activities amounted to $248.2 million, and negative free cash flow was $307.6 million.

Sabre Updates Guidance for FY25

For 2025, Sabre now expects its pro-forma revenues (which excludes the recently divested Hospitality Solutions business) to be flat year over year, down from the earlier prediction of a low single-digit percentage increase.

Pro-forma adjusted EBITDA is now projected to be approximately $530 million, instead of the previous forecasted range of $530-$570 million. The company now expects to generate pro-forma free cash flow of approximately $70 million, down from $100-$140 million anticipated earlier.

Additionally, Sabre initiated guidance for the fourth quarter. SABR anticipates pro-forma revenue growth in the low single-digit percentage range. It expects pro-forma adjusted EBITDA to be around $110 million. The company forecasts to generate free cash flow of around $130 million.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates review.

VGM Scores

At this time, Sabre has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock has a score of C on the value side, putting it in the middle 20% for value investors.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Sabre has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Sabre is part of the Zacks Internet - Software and Services industry. Over the past month, Tyler Technologies (TYL), a stock from the same industry, has gained 0.4%. The company reported its results for the quarter ended September 2025 more than a month ago.

Tyler Technologies reported revenues of $595.88 million in the last reported quarter, representing a year-over-year change of +9.7%. EPS of $2.97 for the same period compares with $2.52 a year ago.

Tyler Technologies is expected to post earnings of $2.70 per share for the current quarter, representing a year-over-year change of +11.1%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.7%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Tyler Technologies. Also, the stock has a VGM Score of C.

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This article originally published on Zacks Investment Research (zacks.com).

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