Company: SABR
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001597033-25-000090
Chunk: 312

Company: Sabre Corp
Filing Date: 2025-08-07
Form: 10-Q
Item: Part II, Item 7
Chunk 312
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 effective tax rate for the three months ended June 30, 2025 represents the rate expected for the year applied to year to date earnings before tax and the impact of certain discrete items in the quarter. The effective tax rate is impacted by an increase in the valuation allowance due primarily to interest expense limitations, offset by loss utilization. The difference between our effective tax rates and the U.S. federal statutory income tax rate primarily results from the impact of changes in the valuation allowance, our geographic mix of taxable income in various tax jurisdictions, tax permanent differences and tax credits.

Six Months Ended June 30, 2025 and 2024

Revenue

 Six Months Ended June 30,   20252024Change (Amounts in thousands)  Revenue $1,389,275 $1,408,683 $(19,408)(1)%

Revenue decreased $19 million, or 1%, for the six months ended June 30, 2025 compared to the same period in the prior year, primarily due to:

•an $8 million, or 1%, decrease in transaction-based distribution revenue primarily due to a 2% decrease in direct billable bookings to 187 million, partially offset by favorable rate impacts; and

•an $11 million, or 4%, decrease in IT solutions revenue driven by a $15 million decrease due to the impact of de-migrations from carriers who de-migrated prior to 2024. We expect revenue growth for IT solutions beginning in the third quarter of 2025 following the anniversary of the impact of these de-migrations on our revenue. This decrease was partially offset by a $3 million increase in volume growth and a $1 million increase in license fee revenue.

Cost of revenue, excluding technology costs

 Six Months Ended June 30,   20252024Change (Amounts in thousands)  Cost of revenue, excluding technology costs$601,825 $586,050 $15,775 3 %

Cost of revenue, excluding technology costs, increased $16 million, or 3%, for the six months ended June 30, 2025 compared to the same period in the prior year, primarily due to a $16 million increase in incentive consideration due to an increase in rates and transaction mix.

Technology Costs

 Six Months Ended June 30, 20252024Change (Amounts in thousands)  Technology costs$347,801 $400,634