Sabre Corp. (NASDAQ:SABR) shares fell 7% in premarket trading Wednesday after the travel technology company reported third-quarter 2025 earnings that missed Wall Street estimates, even as revenue edged higher year over year.
The company posted an adjusted loss of $0.01 per share, below analyst expectations for a $0.04 profit. Revenue rose 3% year-over-year to $715.2 million, narrowly beating the $711.5 million consensus forecast.
Sabre’s Distribution segment, its largest revenue driver, climbed 4% to $575.3 million, supported by a 3% increase in total bookings and higher average booking fees. The IT Solutions unit was flat at $139.9 million, unchanged from the prior year.
“Our third quarter results reflect solid execution and improving momentum across our business,” said Kurt Ekert, President and Chief Executive Officer of Sabre. “We delivered positive growth in quarterly air distribution bookings driven by strong growth in September.”
The company said it continued to make progress on deleveraging, having repaid about $825 million in debt from proceeds of its Hospitality Solutions sale. Normalized adjusted EBITDA grew 23% to $150 million, while operating margin improved by five percentage points compared to a year earlier.
Looking ahead, Sabre expects low single-digit revenue growth in the fourth quarter and forecasts Pro Forma Adjusted EBITDA of about $110 million, roughly 2% higher than the same period last year. The company also projects air distribution volumes will rise 6% to 8% year-over-year.
Sabre maintained its full-year 2025 guidance for flat revenue growth and Pro Forma Adjusted EBITDA of around $530 million, which would mark a 9% annual increase.