Sabre

The hotel software sale sends cash straight at the balance sheet. Long term debt falls from about 4.9 billion dollars to roughly 4.1 billion, an 809 million dollar cut, while cash climbs from 651 million to about 864 million dollars. That saves close to 83 million dollars a year in interest, or about 18.6 million every quarter.

Stripped down to just the travel technology business, Sabre brought in about 702 million dollars this quarter with 90 million dollars of operating profit. Net income landed at 42.5 million dollars, or 11 cents a share. Profit margins are running near 18 percent, which is healthy for a business that gets paid a small fee on huge volumes of bookings.

Even after the paydown, Sabre still owes more than 4 billion dollars long term plus another 233 million due within the year. Interest alone runs about 426 million dollars annually, which is larger than the 242 million dollars of operating profit the slimmed down business produced in 2024. That is why the full year still showed a 261 million dollar loss.

Revenue is barely moving, up just under 1 percent, with the airline focused business at about 2.74 billion dollars for 2024. Sabre only earns money when people book flights, so any travel slowdown hits fast. With a market value near 838 million dollars against billions in debt, there is very little cushion if bookings soften.