Executive Summary

Q4 2024 met company guidance: revenue $714.7M (+4% y/y) and Adjusted EBITDA $115.4M (+20% y/y); GAAP EPS was $(0.19) and Adjusted EPS $(0.08) .
Management introduced FY 2025 outlook of high single-digit revenue growth, Adjusted EBITDA >$700M, and Free Cash Flow >$200M; Q1 2025 expected to be the low point with flat–low single-digit revenue growth and >$150M Adjusted EBITDA .
Mix headwinds: average booking fee expected to be slightly below 2024’s $5.98 in 2025 due to geographic mix and NDC/LCC growth, implying slightly lower gross margin percentage even as gross profit dollars rise .
Balance sheet actions: ~$1.6B maturities extended to Q4’29; company expects to repay 2025 maturities with cash on hand, supporting deleveraging narrative into 2025 .

What Went Well and What Went Wrong

What Went Well
- Achieved Q4 and FY 2024 revenue and Adjusted EBITDA guidance, with margin expansion; Q4 Adjusted EBITDA margin rose to 16.1% (from 14.0% y/y) .
- Strategic momentum: multi-year renewal with American Airlines for SabreSonic PSS in Q4; continued NDC integrations and commercial wins to drive double-digit 2025 bookings growth .
- Technology transformation substantially complete (99%+ compute in cloud) with >$150M cost benefits vs 2019 and 2023, underpinning 2025 cost trajectory and EBITDA target .
- Management quote: “We delivered solid revenue and Adjusted EBITDA growth, reflecting strong momentum” – Kurt Ekert, CEO .
What Went Wrong
- Mix pressure: 2025 average booking fee and gross margin % expected to be marginally down due to North America mix and NDC/LCC growth, despite higher gross profit dollars .
- Q4 free cash flow down y/y ($66.6M vs $77.2M) partly due to $19M debt modification cash costs; FY 2024 FCF remained negative ($13.6M) before turning positive ex-refi accounting .
- IT Solutions quarterly revenue was flat to down modestly in 2H24 (Q4 -1% y/y) and expected to be slightly down in 1H25 before resuming growth in 2H25, reflecting de-migrations and timing effects .

Financial Results

Consolidated results by quarter

Metric	Q2 2024	Q3 2024	Q4 2024
Revenue ($M)	$767.2	$764.7	$714.7
Operating Income ($M)	$60.9	$70.1	$57.1
Operating Margin (%)	7.9%	9.2%	8.0%
GAAP Diluted EPS	$(0.18)	$(0.16)	$(0.19)
Adjusted EBITDA ($M)	$128.7	$130.6	$115.4
Adjusted EBITDA Margin (%)	16.8%	17.1%	16.1%
Adjusted EPS	$(0.05)	$(0.04)	$(0.08)
Cash from Operations ($M)	$28.1	$27.8	$82.7
Capital Expenditures ($M)	$(20.1)	$(20.3)	$(16.1)
Free Cash Flow ($M)	$8.0	$7.6	$66.6

Q4 2024 vs Q4 2023 (YoY)

Metric	YoY Change
Revenue	+4%
Operating Income	+53%
Net Loss Attributable to Common	Improved to $(74.7)M from $(96.5)M
GAAP Diluted EPS	$(0.19) vs $(0.26)
Adjusted EBITDA	+20%
Free Cash Flow	$66.6M vs $77.2M

Segment breakdown

Segment Metric	Q2 2024	Q3 2024	Q4 2024
Travel Solutions Revenue ($M)	$695.1	$691.3	$644.9
— Distribution Revenue ($M)	$550.6	$551.0	$499.8
— IT Solutions Revenue ($M)	$144.5	$140.3	$145.1
Travel Solutions Adj. EBITDA ($M)	$180.3	$179.7	$156.2
Hospitality Solutions Revenue ($M)	$83.2	$84.0	$80.8
Hospitality Solutions Adj. EBITDA ($M)	$10.2	$10.6	$9.0

KPIs

KPI	Q2 2024	Q3 2024	Q4 2024
Total Distribution Bookings (M)	91	92.8	81.0
Average Booking Fee ($)	$6.05	$5.94	$6.17
Passengers Boarded (000s)	168,906	177,272	170,032
CRS Transactions (M)	33.2	34.5	31.0

Notes and drivers

Q4 revenue growth driven by higher air/hotel bookings and favorable supplier mix; IT Solutions -1% y/y on de-migrations; Hospitality +8% y/y on CRS growth .
Q4 Adjusted EBITDA improved on revenue growth, lower tech/labor/pro services; partially offset by higher incentives .
Q4 EPS impacted by $21M debt modification costs and higher interest expense .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue growth	FY 2025	N/A	High single-digit YoY growth	New FY guide
Adjusted EBITDA	FY 2025	“> $700M” initial 2025 target communicated last Feb	>$700M	Maintained
Free Cash Flow	FY 2025	N/A	>$200M	New FY guide
Capex	FY 2025	N/A	≈$85M	New detail
Cash interest expense	FY 2025	N/A	≈$375M	New detail
Revenue growth	Q1 2025	N/A	Flat to low single-digit y/y; Q1 to be lowest quarter of year	New
Adjusted EBITDA	Q1 2025	N/A	>$150M	New
Average booking fee / Gross margin %	FY 2025	N/A	Slightly down vs 2024 on mix (NA, NDC, LCC)	New directional
Bookings	FY 2025	N/A	>30M incremental air bookings vs 2024; double-digit growth in air/hotel distribution and CRS	New

FY 2024 guidance checkpoints (from Q3’24) and actuals

Q4 2024: Revenue ~ $715M; Adjusted EBITDA ~ $115M; FCF >$80M – Actuals: $714.7M revenue; $115.4M Adjusted EBITDA; $66.6M FCF (includes $19M refi costs) .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 & Q3 2024)	Current Period (Q4 2024)	Trend
AI/Technology stack	Announced SabreMosaic (AI-infused); progressing cloud migration; product/AI enhancements	99%+ cloud migration; >$150M cost benefits vs 2019 & 2023; embedding Google Gemini into optimization and Mosaic; AI to boost dev and support productivity	Execution progressing; monetization roadmap forming
Distribution expansion & NDC	Q2/Q3: distribution wins incl. InterparkTriple; NDC reach expanding	NDC live with 27 airlines; multi-source strategy (NDC/LCC/EDIFACT); double-digit bookings growth guided for 2025	Scaling content; volume inflection in 2025
Hospitality (CRS/Retail Studio)	CRS transactions rising; Hyatt implementation underway; HS EBITDA improving	Double-digit CRS growth expected in 2025; Hyatt ≈half of growth; Retail Studio driving >5x ancillary sales at properties	Accelerating deployments and monetization
Mix & margins	Margin expansion in 2024 with cost control	2025 gross margin % and avg booking fee slightly down on mix; EBITDA dollars to grow	Near-term mix headwind vs stronger volumes
Macro/travel demand	Q3: corporate/international contributed; bookings +4% y/y	2025 base case assumes flat to nominal industry growth; backdrop constructive (corp/international)	Company growth driven more by wins than macro
Balance sheet	Q2 positive OpCF; stable liquidity	~$1.6B maturities extended to 2029; plan to pay 2025 maturities with cash	Improved maturity profile, liquidity confidence
Strategic partnerships	Renewals/additions across airlines/hospitality	Multi-year renewal of American Airlines PSS	Strengthening flagship relationships

Management Commentary

“Sabre had a successful year in 2024… position[ing] Sabre for accelerated growth in 2025 and beyond.” – Kurt Ekert, CEO .
“Our partnership with Google… infuses high-quality data into our next-generation products… leveraging classical and generative AI to improve engineering productivity and throughput.” – Kurt Ekert .
“We expect double-digit growth for air distribution bookings, hotel distribution bookings, and Hospitality Solutions CRS transactions [in 2025]… more than 30 million incremental air bookings in 2025.” – Mike Randolfi, CFO .
“Average booking fee and gross margin as a percentage of total revenue [in 2025] to be marginally down… driven by geographic mix, NDC, and LCC growth… [but] substantial gross profit dollars.” – Mike Randolfi .
“In November 2024, we opportunistically extended $1.6 billion in debt maturities to Q4 2029… well positioned to repay our 2025 maturities with cash on hand.” – Mike Randolfi .

Q&A Highlights

Implementation ramp of large agency wins: management confident in 2025 ramp; timelines depend on customer readiness; teams specialized in migrations .
Cost efficiencies: final ~$100M tech transformation savings actions completed by end-2024; 2025 P&L benefits realized .
2025 mix: average booking fee slightly below $5.98; North America mix and NDC/LCC dilutive to fee and gross margin %, but EBITDA growth led by gross profit dollar expansion .
NDC volumes: low single-digit of total bookings today but expected significant growth in 2025 and beyond; shift to tracking total distribution bookings vs GDS share .
Hospitality: Hyatt to be roughly half of 2025 CRS transaction growth; HS EBITDA margin expansion expected y/y .

Estimates Context

Wall Street consensus (S&P Global) for Q4 2024 revenue/EPS was unavailable at retrieval time due to provider limits; therefore, vs-consensus comparisons are omitted. We benchmarked against company guidance and prior periods instead .

Key Takeaways for Investors

Execution set-up for 2025: double-digit bookings and CRS growth with >30M incremental air bookings expected; FY25 Adjusted EBITDA >$700M and FCF >$200M targets anchor the bull case .
Q1 2025 is the trough for revenue/EBITDA given implementation timing; sequential acceleration expected from Q2 onward—timing is a trading catalyst around migration milestones .
Mix headwinds (NA/NDC/LCC) will modestly pressure booking fee and gross margin %, but absolute gross profit dollars and EBITDA should grow on volumes and lower tech cost base .
Balance sheet risk moderated: extended maturities to 2029 and plan to cover 2025 maturities with cash; supports multiple expansion if FCF inflects as guided .
Strategic wins and platform modernization (cloud, AI, Mosaic) strengthen competitive positioning; renewal with American underscores product credibility, aiding win rates and share gains .
Watch-lists: pace of large-agency migrations, NDC/LCC adoption ramp, IT Solutions inflection in 2H25, and free cash flow conversion versus cash interest burden .

Appendix: Additional Q4 Details and Context

Q4 Travel Solutions: Distribution revenue +5% y/y to $500M; bookings +4% to 81M; average booking fee $6.17 (+1% y/y). IT Solutions $145M (-1% y/y) on de-migrations .
Q4 Hospitality: revenue +8% y/y to $81M; CRS transactions +8% to 31M; segment Adjusted EBITDA $9M (+$4M y/y) .
Non-GAAP adjustments in Q4 included litigation costs, indirect tax matters, acquisition-related items and stock-based comp; quarter included $21M debt modification costs tied to refi .

Sources: Q4 2024 8-K earnings release and exhibits ; Q4 2024 earnings call transcript ; Q3 2024 8-K ; Q2 2024 8-K ; American Airlines PSS renewal press release .

Sabre Corp (SABR)·Q4 2024 Earnings Summary