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Travel technology company Sabre (NASDAQ:SABR) missed Wall Street’s revenue expectations in Q1 CY2025, with sales flat year on year at $776.6 million. Next quarter’s revenue guidance of $786.4 million underwhelmed, coming in 1.8% below analysts’ estimates. Its non-GAAP loss of $0 per share was in line with analysts’ consensus estimates.
Is now the time to buy SABR? Find out in our full research report (it’s free).
Sabre’s first quarter results were shaped by broad-based softness in air travel bookings, with leadership citing particular weakness in inbound U.S. travel from Europe and Canada, as well as a notable decline in U.S. Government and Military activity. CEO Kurt Ekert explained, “The most acute softness was in two specific areas: inbound travel to the United States from certain European markets and from Canada, and group bookings out of North Asia.” Despite these challenges, the company pointed to year-on-year growth in its hotel B2B distribution and digital payments businesses as key contributors to overall stability during the quarter.
Looking ahead, Sabre’s guidance reflects expectations for accelerating air and hotel B2B distribution bookings growth, underpinned by the ramp-up of new agency agreements and product innovation. CFO Mike Randolfi stated, “We see outperformance in certain elements of our business: more content coming on our platform, continued payments growth, and a more profitable customer mix.” While management reaffirmed its full-year outlook for double-digit distribution bookings growth, they acknowledged that execution risk remains around the timing of large agency implementations, and that industry-wide air travel demand will depend on macro trends and airline capacity decisions.
Management attributed the quarter’s results to both macroeconomic pressures and operational changes, while emphasizing the strategic impact of the Hospitality Solutions business sale and new contract wins.
Sabre’s outlook for the remainder of 2025 is driven by the ramp-up of new agency contracts, ongoing product investments, and industry capacity trends.
In the coming quarters, the StockStory team will watch (1) the pace and success of large agency contract implementations, (2) the company’s ability to sustain hotel B2B and digital payments segment growth, and (3) how quickly leverage declines following the Hospitality Solutions sale. Additional focus will be placed on any margin improvements tied to operational efficiency and ongoing technology investments.
Sabre currently trades at a forward P/E ratio of 16.1×. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).
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