Sabre Corporation Reports $776.6 Million Revenue in Q1 2025, Announces Sale of Hospitality Solutions Business

Sabre Corporation reported a revenue of $776.6 million for the first quarter of 2025, a decrease of 0.8% from $782.9 million in the same period of 2024. The company achieved an operating income of $103.4 million, up from $98.1 million year-over-year. Notably, net income attributable to common stockholders was $35.3 million, compared to a loss of $71.5 million in the prior year, resulting in a basic and diluted earnings per share of $0.09, a significant recovery from a loss of $0.19 per share in the previous year.

The decline in revenue was primarily driven by a 2% decrease in transaction-based distribution revenue within the Travel Solutions segment, which reported $702.1 million, down from $713.6 million. This was partially offset by an 8% increase in the Hospitality Solutions segment, which generated $85.2 million, up from $78.8 million, largely due to increased transaction volumes and new customer deployments. The overall cost of revenue, excluding technology costs, rose to $333.7 million, reflecting a 4% increase from $321.1 million, attributed to higher incentive consideration expenses.

In terms of strategic developments, Sabre announced a definitive agreement to sell its Hospitality Solutions business for approximately $1.1 billion in cash, expected to close by the end of the third quarter of 2025. The company plans to use the net proceeds to reduce its outstanding debt, which stood at $5.1 billion as of March 31, 2025. This divestiture is part of a broader strategy to streamline operations and focus on core business segments.

Operationally, Sabre reported a total of 96.4 million direct billable bookings in the Travel Solutions segment, a decrease of 2.1% from the previous year. However, the Hospitality Solutions segment saw a 5.9% increase in transactions processed through its Central Reservation System, totaling 30.8 million. The company’s employee headcount increased slightly to 6,500, reflecting ongoing investments in technology and customer service enhancements.

Looking ahead, Sabre anticipates revenue growth in its IT solutions segment beginning in the third quarter of 2025, following the anniversary of prior de-migrations that impacted revenue. The company remains focused on managing liquidity and operational efficiency amid a challenging economic environment, with expectations of generating over $200 million in free cash flow for the full year 2025, bolstered by the anticipated sale of the Hospitality Solutions business.