Sabre reported a sharp improvement in cash generation and profitability during the second quarter of 2026, with free cash flow turning positive and adjusted EBITDA increasing 21% year-over-year as growth in its travel marketplace offset softness in Airline Technology.
Free cash flow reached approximately $9.7 million during the quarter, compared with negative $240.2 million in the prior-year period. Cash provided by operating activities improved to approximately $36.1 million from negative $217.9 million a year earlier.
Adjusted EBITDA increased 21% to approximately $143 million from $118.3 million. Normalized adjusted EBITDA, which further adjusts for certain items, increased 19% to approximately $151.2 million from $127.2 million.
Sabre generated $712 million in second-quarter revenue, up 4% from $687.1 million a year earlier. Marketplace revenue increased 6% to approximately $576.8 million, while Airline Technology revenue declined 4% to approximately $135.1 million.
Marketplace growth was driven by higher transaction-based revenue as distribution bookings increased and booking economics improved. Total Marketplace bookings, net of cancellations, increased approximately 1% year-over-year, while the average booking fee increased approximately 4% to $6.30.
Hotel-related revenue also increased during the quarter, providing another growth driver within Sabre’s travel marketplace as the company continues to broaden its exposure beyond traditional air distribution.
Operating income increased to approximately $92.8 million from $89.1 million, while the net loss attributable to common stockholders narrowed substantially to approximately $36.2 million from $256.4 million.
Sabre ended the second quarter with approximately $3.81 billion of net debt, highlighting the importance of continued cash-flow improvement as the company works to strengthen its balance sheet.
Management said the quarter exceeded its expectations for both revenue and normalized adjusted EBITDA growth despite pressure on global travel demand from conflict in the Middle East and higher fuel prices. Sabre believes its performance since the beginning of the year has outpaced the broader industry.
The company is also positioning its technology platform for emerging AI-driven travel distribution. Sabre said it intends to expand its technology capabilities, continue gaining share and extend its position in the emerging Agentic AI travel channel.
KEY QUOTES:
“Sabre delivered a strong second quarter, exceeding our expectations for both revenue and Normalized Adjusted EBITDA growth while generating positive free cash flow.”
“Despite the impact of the conflict in the Middle East and higher fuel prices on global travel demand, we grew revenue by 4% and Normalized Adjusted EBITDA by 19% in the quarter. Since the start of the year, we believe our performance has outpaced the broader industry, reflecting disciplined execution of our strategy.”
Kurt Ekert, President and CEO of Sabre
