Sabre Corp 10-K

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA Index to Financial Statements and Supplementary Data Consolidated Financial Statements: Reports of Independent Registered Public Accounting Firm (PCAOB ID: 42 ) 49 Consolidated Statements of Operations for the Years Ended December 31, 2025, 2024 and 2023 52 Consolidated Statements of Other Comprehensive Income (Loss) for the Years Ended December 31, 2025, 2024 and 2023 53 Consolidated Balance Sheets as of December 31, 2025 and 2024 54 Consolidated Statements of Cash Flows for the Years Ended December 31, 2025, 2024 and 2023 55 Consolidated Statements of Stockholders’ Deficit for the Years Ended December 31, 2025, 2024 and 2023 56 Notes to Consolidated Financial Statements 57 Financial Statement Schedules: Schedule II — Valuation and Qualifying Accounts as of December 31, 2025, 2024 and 2023 108 48 Report of Independent Registered Public Accounting Firm To the Stockholders and the Board of Directors of Sabre Corporation Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Sabre Corporation (the Company) as of December 31, 2025 and 2024, the related consolidated statements of operations, comprehensive income (loss), stockholders' deficit and cash flows for each of the three years in the period ended December 31, 2025, and the related notes and financial statement schedule listed in the Index at Item 15 (collectively referred to as the “ consolidated financial statements ” ). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company ’ s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 18, 2026 expressed an unqualified opinion thereon. Basis for Opinion These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matter The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosure to which it relates. 49 Measurement of IT Solutions Revenue Description of the Matter As discussed in Note 2 of the financial statements, the Company recognized $554 million of IT Solutions revenue. IT Solutions customer agreements are long-term contracts that frequently contain multiple performance obligations. Judgment exists in determining which performance obligations are distinct and accounted for separately. These contracts also contain variable consideration in the form of tiered pricing, contractual minimums or discounts. Judgment exists in estimating the total contract consideration and allocating amounts to each distinct performance obligation. Auditing management’s recognition of IT Solutions revenue was complex and involved a high degree of judgment because of the significant management judgments and estimates required to identify the distinct performance obligations, estimate and allocate contract consideration, and determine the rate used to recognize revenue. How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design, and tested the operating effectiveness of internal controls related to the Company’s process for recognizing IT Solutions revenue, including management’s review of the significant judgments and estimates used in the identification of distinct performance obligations, the estimation and allocation of amounts to each performance obligation, and the determination of the rate used to recognize revenue. Our audit procedures included, among others, testing management’s identification of the distinct performance obligations based on terms in the contracts and the Company’s policies. Our procedures also included testing the judgments and estimates used to determine the rate to recognize revenue based on the contractual minimums, tiered pricing and other discounts, and current economic conditions. To test the calculation of the amount of consideration allocated to each distinct performance obligation, we performed procedures to test management’s judgments and assumptions related to the allocation of consideration to each distinct performance obligation. Our procedures included an evaluation of the significant assumptions and the accuracy and completeness of the underlying data used in management’s calculation of revenue recognized. We have also evaluated the adequacy of the Company’s IT Solutions revenue disclosures included in Note 2 in relation to these revenue recognition matters. /s/ Ernst & Young LLP We have served as the Company ’ s auditor since 1993. Dallas, Texas February 18, 2026 50 Report of Independent Registered Public Accounting Firm To the Stockholders and the Board of Directors of Sabre Corporation Opinion on Internal Control Over Financial Reporting We have audited Sabre Corporation ’ s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, Sabre Corporation (the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on the COSO criteria. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2025 and 2024, the related consolidated statements of operations, comprehensive income (loss), stockholders' deficit and cash flows for each of the three years in the period ended December 31, 2025, and the related notes and financial statement schedule listed in the Index at Item 15, and our report dated February 18, 2026 expressed an unqualified opinion thereon. Basis for Opinion The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Definition and Limitations of Internal Control Over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/ Ernst & Young LLP Dallas, Texas February 18, 2026 51 SABRE CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) Year Ended December 31, 2025 2024 2023 Revenue $ 2,770,983 $ 2,744,845 $ 2,642,077 Cost of revenue, excluding technology costs 1,206,987 1,146,275 1,076,241 Technology costs 711,100 780,749 950,726 Selling, general and administrative 557,401 575,972 582,887 Operating income 295,495 241,849 32,223 Other expense: Interest expense, net ( 447,829 ) ( 453,274 ) ( 396,598 ) Loss on extinguishment of debt, net ( 90,680 ) ( 37,994 ) ( 108,577 ) Equity method income 3,389 2,606 2,042 Other, net 391 ( 20,628 ) 13,017 Total other expense, net ( 534,729 ) ( 509,290 ) ( 490,116 ) Loss from continuing operations before income taxes ( 239,234 ) ( 267,441 ) ( 457,893 ) Provision for income taxes 16,256 4,107 33,645 Loss from continuing operations ( 255,490 ) ( 271,548 ) ( 491,538 ) Income (loss) from discontinued operations, net of tax 779,452 ( 7,135 ) ( 36,402 ) Net income (loss) 523,962 ( 278,683 ) ( 527,940 ) Net (loss) income attributable to noncontrolling interests ( 655 ) 76 ( 332 ) Net income (loss) attributable to Sabre Corporation 524,617 ( 278,759 ) ( 527,608 ) Preferred stock dividends — — 14,257 Net income (loss) attributable to common stockholders $ 524,617 $ ( 278,759 ) $ ( 541,865 ) Basic net income (loss) per share attributable to common stockholders: Loss from continuing operations $ ( 0.65 ) $ ( 0.71 ) $ ( 1.46 ) Income (loss) from discontinued operations 1.99 ( 0.02 ) ( 0.10 ) Net income (loss) per common share $ 1.34 $ ( 0.73 ) $ ( 1.56 ) Diluted net income (loss) per share attributable to common stockholders: Loss from continuing operations $ ( 0.65 ) $ ( 0.71 ) $ ( 1.46 ) Income (loss) from discontinued operations 1.99 ( 0.02 ) ( 0.10 ) Net income (loss) per common share $ 1.34 $ ( 0.73 ) $ ( 1.56 ) Weighted-average common shares outstanding: Basic 391,707 383,733 346,567 Diluted 391,707 383,733 346,567 See Notes to Consolidated Financial Statements. 52 SABRE CORPORATION CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (In thousands) Year Ended December 31, 2025 2024 2023 Net income (loss) $ 523,962 $ ( 278,683 ) $ ( 527,940 ) Other comprehensive income (loss), net of tax: Unrealized foreign currency translation adjustment 4,182 ( 950 ) 3,890 Realized foreign currency translation from divestiture of business ( 3,621 ) — — Foreign currency translation adjustments ("CTA") 561 ( 950 ) 3,890 Retirement-related benefit plans: Net actuarial gain (loss), net of taxes of $( 217 ), $( 114 ) and $ 8 4,418 166 ( 5,179 ) Amortization of prior service credits, net of taxes of nil in all periods ( 1,432 ) ( 1,432 ) ( 1,432 ) Amortization of actuarial losses, net of taxes of nil in all periods 2,921 2,812 2,302 Net change in retirement-related benefit plans, net of tax 5,907 1,546 ( 4,309 ) Derivatives: Unrealized gains (losses), net of taxes of nil in all periods 84 7,170 ( 794 ) Reclassification adjustment for realized losses (gains), net of taxes of nil in all periods 988 ( 7,094 ) ( 6,652 ) Net change in derivatives, net of tax 1,072 76 ( 7,446 ) Share of other comprehensive loss of equity method investments ( 449 ) ( 495 ) ( 326 ) Other comprehensive income (loss) 7,091 177 ( 8,191 ) Comprehensive income (loss) 531,053 ( 278,506 ) ( 536,131 ) Less: Comprehensive loss (income) attributable to noncontrolling interests 655 ( 76 ) 332 Comprehensive income (loss) attributable to Sabre Corporation $ 531,708 $ ( 278,582 ) $ ( 535,799 ) See Notes to Consolidated Financial Statements. 53 SABRE CORPORATION CONSOLIDATED BALANCE SHEETS (In thousands) December 31, 2025 2024 Assets Current assets Cash and cash equivalents $ 791,555 $ 724,479 Restricted cash 118,558 21,039 Accounts receivable, net 311,870 286,601 Prepaid expenses and other current assets 74,055 76,518 Discontinued operations — 54,581 Total current assets 1,296,038 1,163,218 Property and equipment, net of accumulated depreciation 255,323 233,785 Equity method investments 23,082 22,470 Goodwill 2,384,191 2,383,380 Acquired customer relationships, net of accumulated amortization 159,326 177,874 Other intangible assets, net of accumulated amortization 125,556 137,411 Deferred income taxes 3,874 8,113 Other assets, net 254,738 272,876 Discontinued operations — 235,802 Total assets $ 4,502,128 $ 4,634,929 Liabilities and stockholders’ deficit Current liabilities Accounts payable $ 260,035 $ 242,992 Accrued compensation and related benefits 103,521 105,533 Accrued subscriber incentives 289,095 265,065 Deferred revenues 58,413 60,200 Other accrued liabilities 256,856 186,563 Current portion of debt 245,651 230,214 Discontinued operations — 51,207 Total current liabilities 1,213,571 1,141,774 Deferred income taxes 36,614 30,120 Other noncurrent liabilities 173,172 204,041 Discontinued operations — 15,989 Long-term debt 4,103,208 4,834,776 Commitments and contingencies (Note 18) Redeemable noncontrolling interests 12,057 12,928 Stockholders’ equity Common stock: $ 0.01 par value; 1,000,000 authorized shares; 427,366 and 414,754 shares issued, 395,004 and 385,932 shares outstanding at December 31, 2025 and 2024, respectively 4,274 4,147 Additional paid-in capital 3,351,111 3,304,466 Treasury stock, at cost, 32,362 and 28,822 shares at December 31, 2025 and 2024, respectively ( 537,197 ) ( 526,789 ) Accumulated deficit ( 3,802,535 ) ( 4,327,152 ) Accumulated other comprehensive loss ( 66,656 ) ( 73,747 ) Noncontrolling interest 14,509 14,376 Total stockholders’ deficit ( 1,036,494 ) ( 1,604,699 ) Total liabilities and stockholders’ deficit $ 4,502,128 $ 4,634,929 See Notes to Consolidated Financial Statements. 54 SABRE CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Year Ended December 31, 2025 2024 2023 Operating Activities Net income (loss) $ 523,962 $ ( 278,683 ) $ ( 527,940 ) Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities: (Income) loss from discontinued operations ( 779,452 ) 7,135 36,402 Payment of previously paid-in-kind interest ( 199,938 ) — — Depreciation and amortization 105,920 109,521 121,217 Loss on extinguishment of debt, net 90,680 37,994 108,577 Stock-based compensation expense 45,661 49,027 46,707 Amortization of upfront incentive consideration 38,225 34,317 34,833 Amortization of debt discount and issuance costs 28,611 26,634 20,478 Paid-in-kind interest 28,327 117,752 53,859 Other ( 6,264 ) 6,988 ( 3,258 ) (Gain) on sale of assets ( 5,191 ) — — Deferred income taxes 5,134 ( 1,802 ) 19,076 Provision for expected credit losses 1,869 2,194 4,954 (Gain) loss on investment fair value adjustment — ( 3,234 ) 2,400 Changes in operating assets and liabilities: Accounts and other receivables ( 65,288 ) 18,029 18,306 Prepaid expenses and other current assets 37,794 4,280 51,236 Capitalized implementation costs ( 8,563 ) ( 13,085 ) ( 4,242 ) Upfront incentive consideration ( 23,712 ) ( 9,432 ) ( 13,942 ) Other assets ( 13,892 ) ( 4,391 ) 128 Accrued compensation and related benefits ( 18,921 ) ( 31,246 ) 1,038 Accounts payable and other accrued liabilities 126,177 36,971 49,359 Deferred revenue including upfront solution fees ( 20,003 ) ( 38,720 ) 48,181 Cash (used in) provided by operating activities ( 108,864 ) 70,249 67,369 Investing Activities Additions to property and equipment ( 82,887 ) ( 79,527 ) ( 80,920 ) Proceeds from sale of assets 9,267 — — Other investing activities ( 200 ) ( 300 ) 664 Proceeds from sale of investments in securities — 54,834 — Purchase of investments — — ( 11,200 ) Cash used in investing activities ( 73,820 ) ( 24,993 ) ( 91,456 ) Financing Activities Payments on borrowings from lenders ( 3,686,879 ) ( 1,750,740 ) ( 1,573,729 ) Proceeds of borrowings from lenders 3,098,196 1,755,104 1,530,473 Payments on borrowings under Securitization Facility ( 123,450 ) ( 91,300 ) ( 108,600 ) Proceeds from borrowings under Securitization Facility 123,250 183,500 218,600 Debt prepayment fees and issuance costs ( 88,641 ) ( 50,325 ) ( 159,589 ) Net payment on the settlement of equity-based awards ( 10,410 ) ( 6,667 ) ( 5,535 ) Net Receipts on Behalf under TSA 2,183 — — Dividends paid on preferred stock — — ( 16,039 ) Proceeds from sale of redeemable shares in subsidiary — — 16,000 Other financing activities — — 4,200 Cash (used in) provided by financing activities ( 685,751 ) 39,572 ( 94,219 ) Cash Flows from Discontinued Operations Cash (used in) provided by operating activities ( 21,659 ) 345 ( 11,554 ) Cash provided by (used in) investing activities 1,050,242 ( 4,621 ) ( 18,525 ) Cash provided by (used in) discontinued operations 1,028,583 ( 4,276 ) ( 30,079 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash 4,447 ( 4,278 ) 1,706 Increase (decrease) in cash, cash equivalents and restricted cash 164,595 76,274 ( 146,679 ) Cash, cash equivalents and restricted cash at beginning of period 745,518 669,244 815,923 Cash, cash equivalents and restricted cash at end of period $ 910,113 $ 745,518 $ 669,244 Cash payments for interest $ 589,045 $ 382,966 $ 394,539 Capitalized interest $ 5,871 $ 8,056 $ 5,740 Non-cash additions to property and equipment $ 13 $ 23 $ — See Notes to Consolidated Financial Statements. 55 SABRE CORPORATION CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT (In thousands, except share data) Stockholders’ Equity (Deficit) Preferred Stock Common Stock Additional Paid in Capital Treasury Stock Retained Earnings (Deficit) Accumulated Other Comprehensive Income (Loss) Noncontrolling Interest Total Stockholders' Deficit Shares Amount Shares Amount Shares Amount Balance at December 31, 2022 3,290,000 $ 33 353,436,503 $ 3,534 $ 3,198,580 24,894,998 $ ( 514,215 ) $ ( 3,506,528 ) $ ( 65,731 ) $ 11,500 $ ( 872,827 ) Comprehensive loss — — — — — — — ( 527,608 ) ( 8,191 ) 1,160 ( 534,639 ) Preferred stock dividend (1) — — — — — — — ( 14,257 ) — — ( 14,257 ) Conversion of preferred stock to common stock ( 3,290,000 ) ( 33 ) 46,999,367 470 ( 437 ) — — — — — — Settlement of stock-based awards — — 5,478,793 55 375 1,450,686 ( 5,909 ) — — — ( 5,479 ) Stock-based compensation expense — — — — 52,015 — — — — — 52,015 Other — — — — ( 632 ) — — — — — ( 632 ) Balance at December 31, 2023 — — 405,914,663 4,059 3,249,901 26,345,684 ( 520,124 ) ( 4,048,393 ) ( 73,922 ) 12,660 ( 1,375,819 ) Comprehensive loss — — — — — — — ( 278,759 ) 177 1,716 ( 276,866 ) Settlement of stock-based awards — — 8,839,013 88 ( 2 ) 2,476,800 ( 6,665 ) — — — ( 6,579 ) Stock-based compensation expense — — — — 54,567 — — — — — 54,567 Other — — — — — — — — ( 2 ) — ( 2 ) Balance at December 31, 2024 — — 414,753,676 4,147 3,304,466 28,822,484 ( 526,789 ) ( 4,327,152 ) ( 73,747 ) 14,376 ( 1,604,699 ) Comprehensive income — — — — — — — 524,617 7,091 133 531,841 Settlement of stock-based awards — — 12,612,965 127 ( 2 ) 3,539,950 ( 10,408 ) — — — ( 10,283 ) Stock-based compensation expense — — — — 46,387 — — — — — 46,387 Other — — — — 260 — — — — — 260 Balance at December 31, 2025 — $ — 427,366,641 $ 4,274 $ 3,351,111 32,362,434 $ ( 537,197 ) $ ( 3,802,535 ) $ ( 66,656 ) $ 14,509 $ ( 1,036,494 ) (1) Our mandatory convertible preferred stock accumulated cumulative dividends at an annual rate of 6.50 %. See Notes to Consolidated Financial Statements. 56 SABRE CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. Summary of Business and Significant Accounting Policies Description of Business Sabre Corporation is a Delaware corporation formed in December 2006. On March 30, 2007, Sabre Corporation acquired Sabre Holdings Corporation (“Sabre Holdings”). Sabre Holdings is the sole direct subsidiary of Sabre Corporation. Sabre GLBL Inc. (“Sabre GLBL”) is the principal operating subsidiary and sole direct subsidiary of Sabre Holdings. Sabre GLBL or its direct or indirect subsidiaries conduct all of our businesses. In these consolidated financial statements, references to “Sabre,” the “Company,” “we,” “our,” “ours,” and “us” refer to Sabre Corporation and its consolidated subsidiaries unless otherwise stated or the context otherwise requires. At Sabre, we make travel happen. We are a global technology company that provides a global business-to-business travel marketplace for travel suppliers and travel buyers, including a broad portfolio of software technology products and solutions for airlines. With the disposition of our Hospitality Solutions business during 2025, we manage and report our business in one reportable segment that constitutes our consolidated results. Recent Events— On April 27, 2025, we entered into a definitive purchase agreement with an affiliate of TPG (the “Buyer”), an unrelated party, pursuant to which the Buyer agreed to purchase our Hospitality Solutions business, and on July 3, 2025, we closed the sale (the “Hospitality Solutions Sale”). The assets and liabilities associated with the Hospitality Solutions business are presented as discontinued operations on our consolidated balance sheet as of December 31, 2024, and the operating results of our Hospitality Solutions business are presented as discontinued operations on our consolidated statements of operations for all periods presented. See Note 3. Discontinued Operations and Dispositions for further details. Basis of Presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). We consolidate all majority-owned subsidiaries and companies over which we exercise control through majority voting rights. No entities are consolidated due to control through operating agreements, financing agreements or as the primary beneficiary of a variable interest entity. The consolidated financial statements include our accounts after elimination of all significant intercompany balances and transactions. All dollar amounts in the financial statements and the tables in the notes, except per share amounts, are stated in thousands of U.S. dollars, unless otherwise indicated. All amounts in the notes reference results from continuing operations, unless otherwise indicated. We have reclassified certain amounts in the notes to the financial statements, in the prior periods, to conform to current period presentation. The preparation of these annual financial statements in conformity with GAAP requires that certain amounts be recorded based on estimates and assumptions made by management. Actual results could differ from these estimates and assumptions. Our accounting policies that utilize significant estimates and assumptions include: (i) estimation for revenue recognition and multiple performance obligation arrangements, (ii) the evaluation of the recoverability of the carrying value of intangible assets and goodwill, (iii) the evaluation of uncertainties surrounding the calculation of our tax assets and liabilities, and (iv) estimation of loss contingencies. Within our results of operations, cost of revenue, excluding technology costs, primarily consists of costs associated with the delivery and distribution of our products and services, including employee-related costs for our delivery, customer operations and call center teams, transactional-related costs, including travel agency incentive consideration for reservations made on our global distribution system ("GDS"), amortization of upfront incentive consideration, depreciation and amortization associated with capitalized implementation costs, and certain intangible assets, and costs such as stock-based compensation and restructuring charges (in applicable periods). Technology costs consist of expenses related to third-party providers and employee-related costs to operate technology operations including data processing and hosting, third-party software, other costs associated with the maintenance and minor enhancement of our technology, and depreciation and amortization associated with software developed for internal use that supports our products, assets supporting our technology platform, businesses and systems and intangible assets related to technology. Technology costs also include costs associated with our technology transformation efforts as well as certain expenses such as stock-based compensation and restructuring charges (in applicable periods). Selling, general and administrative expenses consist of professional service fees, certain settlement charges or reimbursements, costs to defend legal disputes, provision for expected credit losses, non-recoverable taxes, indirect taxes, other overhead costs, personnel-related expenses, including stock-based compensation, for employees engaged in sales, sales support, account management and who administratively support the business in finance, legal, human resources, information technology and communications, and depreciation and amortization associated with property and equipment, acquired customer relationships, trademarks and brand names. Revenue Recognition Revenue recognition is primarily driven by GDS and reservation system transactions. Timing of revenue recognition is primarily based on the consistent provision of services in a stand-ready series SaaS environment, and the amount of revenue recognized varies with the volume of transactions processed. Revenue is recognized if it is not considered probable of reversal. 57 Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account under Accounting Standards Codification ("ASC") 606. The transaction price is allocated to each performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Most of our contracts for GDS services have a single stand-ready series performance obligation. For IT Solutions revenue, many of our contracts may have multiple performance obligations, which generally include software and product solutions through SaaS and hosted delivery, and other service fees. We also evaluate performance obligations across multiple agreements when entered into with the same customer at or near the same time. Our significant product and services and methods of recognition are as follows: Stand-ready series revenue recognition We recognize revenue from usage-based fees for the use of the software which represents a stand-ready performance obligation. Variability in the usage-based fee that does not align with the value provided to the customer can result in a difference between billings to the customer and the timing of contract performance and revenue recognition, which may result in the recognition of a contract asset. This can result in a requirement to forecast expected usage-based fees and volumes over the contract term in order to determine the rate for revenue recognition. This variable consideration is constrained if there is an inability to reliably forecast this revenue or if future reversal is considered probable. Additionally, we may occasionally recognize revenue in the current period for performance obligations partially or fully satisfied in the previous periods resulting from changes in estimates of the transaction price, including any changes to our assessment of whether an estimate of variable consideration is constrained. Transactional revenue We generate distribution revenue for bookings made through our GDS (e.g., Air, and Lodging, Ground and Sea ("LGS")). GDS services link and engage transactions between travel agents and travel suppliers. Revenue is generated from contracts with the travel suppliers as each booking is made or transaction occurs and represents a stand-ready series performance obligation where our systems perform the same service each day for the customer, based on the customer’s level of usage. Distribution revenue associated with car rental, hotel transactions and other travel providers is recognized at the time the reservation is used by the customer. Distribution revenue associated with airline travel reservations is recognized at the time of booking of the reservation, net of estimated future cancellations. Cancellations prior to the day of departure are estimated based on historical and expected levels of cancellation rates, adjusted to take into account any recent factors which could cause a change in those rates. We generate IT Solutions revenue from our product offerings including reservation systems for full-service and low-cost carriers, commercial and operations products, agency solutions and booking data. Reservation system revenue is primarily generated based on the number of passengers boarded. Generally, customers are charged a fixed, upfront solutions fee and a recurring usage-based fee for the use of the software in a stand-ready series performance obligation. In the context of both our reservation systems and our commercial and operations products, upfront solutions fees are recognized primarily on a straight-line basis over the relevant contract term, upon cut-over of the primary SaaS solution. Contract Assets and Deferred Customer Advances and Discounts Deferred customer advances and discounts are amortized against revenue in future periods as the related revenue is earned. Our contract assets include revenue recognized for services already transferred to a customer, for which the fulfillment of another contractual performance obligation is required, before we have the unconditional right to bill and collect based on contract terms. Contract assets and deferred customer advances and discounts are reviewed for recoverability on a periodic basis based on a review of impairment indicators, future contracted revenues and estimated direct costs of the contract when a significant event occurs that could impact the recoverability of the assets, such as a significant contract modification or early renewal of contract terms. Impairment related to these assets as a result of the related contract becoming uncollectible, modified or canceled were immaterial for each of the years ended December 31, 2025, 2024 and 2023. Contracts are priced to generate total revenues over the life of the contract that exceed any discounts or advances provided and any upfront costs incurred to implement the customer contract. Other revenue recognition patterns We also provide other services including development labor or professional consulting. These services can be sold separately or with other products and services, and we may bundle multiple technology solutions in one arrangement with these other services. Revenue from other services consisting of development services that represent minor configuration or professional consulting is generally recognized over the period the services are performed or upon completed delivery. We also collect subscription fees which are recognized over the term of the contract. We also directly license certain software to our customers where the customer obtains on-site control of the license. Revenue from software license fees is recognized when the customer gains control of the software enabling them to directly use the software and obtain substantially all of the remaining benefits. Fees for ongoing software maintenance are recognized ratably over the life of the contract. Under these arrangements, often we are entitled to minimum fees which are collected over the term of the agreement, while the revenue from the license is recognized at the point when the customer gains control, which results in current and long-term unbilled receivables for these arrangements. 58 Variability in the amounts billed to the customer and revenue recognized coincides with the customer’s level of usage with the exception of upfront solution fees, non-usage based variable consideration, license and maintenance agreements and other services including development labor and professional consulting. Contracts with the same customer which are entered into at or around the same period are analyzed for revenue recognition purposes on a combined basis across our businesses which can impact timing of revenue recognition. For contracts with multiple performance obligations, we account for separate performance obligations on an individual basis with value assigned to each performance obligation based on our best estimate of relative standalone selling price ("SSP"). Judgment is required to determine the SSP for each distinct performance obligation. SSP is assessed annually using a historical analysis of contracts with customers executed in the most recently completed calendar year to determine the range of selling prices applicable to a distinct good or service. In making these judgments, we analyze various factors, including discounting practices, price lists, contract prices, value differentiators, customer segmentation and overall market and economic conditions. Based on these results, the estimated SSP is set for each distinct product or service delivered to customers. As our market strategies evolve, we may modify pricing practices in the future which could result in changes to SSP. Revenue recognition from our business requires significant judgments such as identifying distinct performance obligations including estimating the total contract consideration and allocating amounts to each distinct performance obligation, determining whether variable pricing within a contract meets the allocation objective, assessing revenue for constraint and forecasting future volumes. For a small number of our contracts, we are required to forecast volumes as a result of pricing variability within the contract in order to calculate the rate for revenue recognition. Any changes in these judgments and estimates could have an impact on the revenue recognized in future periods. We evaluate whether it is appropriate to record the gross amount of our revenues and related costs by considering whether the entity is a principal (gross presentation) or an agent (net presentation) by evaluating the nature of our promise to the customer. We report revenue net of any revenue-based taxes assessed by governmental authorities that are imposed on and concurrent with specific revenue producing transactions. Incentive Consideration Certain service contracts with significant travel agency customers contain booking productivity clauses and other provisions that allow travel agency customers to receive cash payments or other consideration. We establish liabilities for these commitments and recognize the related expense as these travel agencies earn incentive consideration based on the applicable contractual terms. Periodically, we make cash payments to these travel agencies at inception or modification of a service contract which are capitalized and amortized to cost of revenue, excluding technology costs over the expected life of the service contract, which is generally three to ten years . Deferred charges related to such contracts are recorded in other assets, net on the consolidated balance sheets. The service contracts are priced so that the airline and other booking fees generated over the life of the contract will exceed the cost of the incentive consideration provided. Incentive consideration paid to the travel agency represents a commission paid to the travel agency for booking travel on our GDS. Similar to the revenue cancellation reserve, we record a reduction to incentive expense within cost of revenue, excluding technology costs for amounts considered probable of recovery from travel agencies for incentives previously paid on cancelled bookings. Advertising Costs Advertising costs are expensed as incurred. Advertising costs incurred by our continuing operations totaled $ 9 million, $ 8 million and $ 10 million for the years ended December 31, 2025, 2024 and 2023, respectively. Cash and Cash Equivalents We classify all highly liquid instruments, including money market funds and money market securities with original maturities of three months or less, as cash equivalents. Restricted Cash Restricted cash primarily includes $ 21 million of cash collateral for standby letters of credit associated with guarantees related to our bilateral letter of credit facility issued in conjunction with our Senior Secured Credit Facility and $ 98 million of cash restricted for purposes of redeeming the 8.625 % senior secured notes due 2027, in 2026, which is subject to an irrevocable satisfaction and discharge agreement with the trustee. See Note 10. Debt for additional information. Allowance for Credit Losses and Concentration of Credit Risk We are exposed to credit losses primarily through our sales of services provided to participants in the travel and transportation industry, which we consider to be our singular portfolio segment. We develop and document our methodology used in determining the allowance for credit losses at the portfolio segment level. Within the travel portfolio segment, we identify airlines, hoteliers and travel agencies as each presenting unique risk characteristics associated with historical credit loss patterns unique to each and we determine the adequacy of our allowance for credit loss by assessing the risks and losses inherent in our receivables related to each. 59 The majority of our receivables are trade receivables due in less than one year. In addition to our short-term trade and unbilled receivables, our receivables also include contract assets and long-term trade unbilled receivables. See Note 2. Revenue from Contracts with Customers for more information about these financial assets. Contract assets and long-term receivables are reviewed for recoverability on a periodic basis based on a review of subjective factors and trends in collection data including the aging of our trade receivable balances with these customers and expectations of future global economic growth. Our credit risk is mitigated with carriers who use the Airline Clearing House or other similar clearing houses (“ACH”), as ACH requires participants to deposit certain balances into their demand deposit accounts by certain deadlines, which facilitates a timely settlement process. For those carriers from which we do not collect payments through the ACH, our credit risk is higher. We monitor our ongoing credit exposure for these carriers through active review of customer balances against contract terms and due dates with account management. Our activities include established collection processes, account reconciliations, dispute resolution and payment confirmations. We may employ collection agencies and legal counsel to pursue recovery of defaulted receivables. We generally do not require security or collateral from our customers as a condition of sale. We evaluate the collectability of our receivables based on a combination of factors. In circumstances where we are aware of a specific customer’s inability to meet its financial obligations to us, such as bankruptcy filings or failure to pay amounts due to us or others, we specifically provide for credit losses against amounts due to reduce the recorded receivable to the amount we reasonably determine will be collected. For all other customers, we record reserves for receivables, including unbilled receivables and contract assets, based on historical experience and the length of time the receivables are past due. The estimate of credit losses is developed by analyzing historical twelve-month collection rates and assumes that economic and credit conditions existing at the balance sheet date would remain unchanged over the remaining contractual life of these assets. Receivables are considered to be delinquent when contractual payment terms are exceeded. All receivables aged over twelve months are fully reserved. Receivables are written off against the allowance when it is probable that all remaining contractual payments will not be collected as evidenced by factors such as the extended age of the balance, the exhaustion of collection efforts, and the lack of ongoing contact or billing with the customer. We maintained an allowance for credit losses of approximately $ 18 million and $ 24 million at December 31, 2025 and 2024, respectively. See Note 9. Credit Losses for further considerations involved in the development of this estimate. Derivative Financial Instruments We recognize all derivatives on the consolidated balance sheets at fair value and do not offset fair value amounts recognized for derivative instruments executed with the same counterparty under a master netting arrangement. If the derivative is designated as a hedge, depending on the nature of the hedge, changes in the fair value of derivatives are offset against the change in fair value of the hedged item through earnings (a “fair value hedge”) or recognized in other comprehensive income (loss) until the hedged item is recognized in earnings (a “cash flow hedge”). For derivative instruments not designated as hedging instruments, the gain or loss resulting from the change in fair value is recognized in current earnings during the period of change. No hedging ineffectiveness was recorded in earnings during the periods presented. Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization, which is calculated on the straight-line basis. Our depreciation and amortization policies are as follows: Buildings Lesser of lease term or 35 years Leasehold improvements Lesser of lease term or useful life Furniture and fixtures 5 to 15 years Equipment, general office and computer 3 to 5 years Software developed for internal use 3 to 7 years We capitalize certain costs related to our infrastructure, software applications and reservation systems in accordance with GAAP on software developed for internal use. Capitalizable costs consist of (a) certain external direct costs of materials and services incurred in developing or obtaining internal use computer software and (b) payroll and payroll related costs for employees who are directly associated with and who devote time to our GDS and SaaS-related development projects. Costs incurred during the preliminary project stage or costs incurred for data conversion activities and training, maintenance and general and administrative or overhead costs are expensed as incurred. Costs that cannot be separated between maintenance of, and relatively minor upgrades and enhancements to, internal use software are also expensed as incurred. See Note 7. Balance Sheet Components, for amounts capitalized as property and equipment in our consolidated balance sheets. Depreciation and amortization of property and equipment totaled $ 61 million, $ 62 million and $ 68 million for the years ended December 31, 2025, 2024 and 2023, respectively. Amortization of software developed for internal use totaled $ 50 million, $ 48 million and $ 55 million for the years ended December 31, 2025, 2024 and 2023, respectively. During the years ended December 31, 2025, 2024 and 2023, we capitalized $ 81 million, $ 61 million, and $ 71 million, respectively, related to software developed for internal use. We also evaluate the useful lives of these assets on an annual basis and test for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets used in combination to generate cash flows largely independent 60 of other assets may not be recoverable. We did not record any property and equipment impairment charges for the years ended December 31, 2025 and 2024. Leases We lease certain facilities under long term operating leases. We determine if an arrangement is a lease at inception. We evaluate lessee agreements with a minimum term greater than one year for recording on the balance sheet. Operating lease assets are included in operating lease right-of-use (“ROU”) assets within other assets, net and operating lease liabilities are included in other current liabilities and other noncurrent liabilities in our consolidated balance sheets. Finance lease assets are included in property and equipment with associated liabilities included in current portion of debt and long-term debt in our consolidated balance sheets. We did not have any finance lease assets for the years ended December 31, 2025 and 2024. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our internal borrowing rate for leases with a lease term of less than or equal to five years. For leases with a lease term greater than five years, we use our incremental borrowing rate based on the estimated rate of interest for corporate bond borrowings over a similar term of the lease payments. Certain of our lease agreements contain renewal options, early termination options and/or payment escalations based on fixed annual increases, local consumer price index changes or market rental reviews. We recognize rent expense with fixed rate increases and/or fixed rent reductions on a straight-line basis over the term of the lease. Business Combinations Business combinations are accounted for under the acquisition method of accounting. Under this method, the assets acquired and liabilities assumed are recognized at their respective fair values as of the date of acquisition. The excess, if any, of the acquisition price over the fair values of the assets acquired and liabilities assumed is recorded as goodwill. For significant acquisitions, we utilize third-party appraisal firms to assist us in determining the fair values for certain assets acquired and liabilities assumed. The measurement of these fair values requires us to make significant estimates and assumptions which are inherently uncertain. Adjustments to the fair values of assets acquired and liabilities assumed are made until we obtain all relevant information regarding the facts and circumstances that existed as of the acquisition date (the “measurement period”), not to exceed one year from the date of the acquisition. We recognize measurement-period adjustments in the period in which we determine the amounts, including the effect on earnings of any amounts we would have recorded in previous periods if the accounting had been completed at the acquisition date. Business Divestitures We periodically divest assets that we do not consider core to our business strategy. The carrying value of the net assets held for sale are compared to their fair value, less cost to sell, and any initial adjustments of the carrying value to fair value, less cost to sell are recorded when the held for sale criteria are met. Gains or losses associated with the disposal of assets held for sale are recorded within other, net in our consolidated statements of operations. When the net assets constitute a business, we allocate a portion of the goodwill from the related reporting unit to the carrying value of the net assets held for sale. The amount of goodwill allocated is based on the relative fair values of the business to be disposed of and the portion of the reporting unit that will be retained. Goodwill and Intangible Assets Goodwill is the excess of the purchase price over the fair value of identifiable tangible and intangible assets acquired in business combinations. Goodwill is not amortized but is reviewed for impairment on an annual basis or more frequently if events and circumstances indicate the carrying amount may not be recoverable. Definite-lived intangible assets are amortized on a straight-line basis and assigned useful economic lives of two to thirty years , depending on classification. The useful economic lives are evaluated on an annual basis. We perform our annual goodwill impairment assessment as of October 1 of each year and interim assessments as required upon the identification of a triggering event. We begin with the qualitative assessment of whether it is more likely than not that a reporting unit’s fair value is less than its carrying value before applying the quantitative assessment described below. If it is determined through the evaluation of events or circumstances that the carrying value may not be recoverable, or if we decide to bypass the qualitative assessment, we perform a quantitative assessment comparing the estimated fair value of the reporting unit to which the goodwill has been assigned to the sum of the carrying value of the assets and liabilities of that unit. If the sum of the carrying value of the assets and liabilities of a reporting unit exceeds the estimated fair value of that reporting unit, the carrying value of the reporting unit’s goodwill is reduced to its fair value through an adjustment to the goodwill balance, resulting in an impairment charge. We utilize third-party appraisal firms to assist us in determining the fair value of a reporting unit as part of performing the quantitative assessment. We have one reporting unit associated with our continuing operations. We did not record any goodwill impairment charges for the years ended December 31, 2025, 2024 and 2023. See Note 6. Goodwill and Intangible Assets for additional information. 61 Definite-lived intangible assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of definite lived intangible assets used in combination to generate cash flows largely independent of other assets may not be recoverable. If impairment indicators exist for definite-lived intangible assets, the undiscounted future cash flows associated with the expected service potential of the assets are compared to the carrying value of the assets. If our projection of undiscounted future cash flows is in excess of the carrying value of the intangible assets, no impairment charge is recorded. If our projection of undiscounted cash flows is less than the carrying value, the intangible assets are measured at fair value and an impairment charge is recorded based on the excess of the carrying value of the assets to its fair value. We did not record any intangible asset impairment charges for the years ended December 31, 2025, 2024 and 2023. See Note 6. Goodwill and Intangible Assets for additional information. Equity Method Investments We utilize the equity method to account for our interests in entities that we do not control but over which we exert significant influence. We periodically evaluate investments accounted for under the equity method for impairment by reviewing updated financial information provided by the investee, including valuation information from new financing transactions by the investee and information relating to competitors of investees when available. We own voting interests in various national marketing companies ranging from 20 % to 49 %, a voting interest of 40 % in ESS Elektroniczne Systemy Spzedazy Sp. zo.o, and a voting interest of 20 % in Asiana Sabre, Inc. The carrying value of these equity method investments in joint ventures amounts to $ 20 million and $ 19 million as of December 31, 2025 and 2024, respectively. Contract Acquisition Costs and Capitalized Implementation Costs We incur contract acquisition costs related to new contracts with our customers in the form of sales commissions based on estimated contract value. These costs are capitalized and reviewed for impairment on an annual basis. We generally amortize these costs, and those for renewals, over the average contract term for those businesses, excluding commissions on contracts with a term of one year or less, which are generally expensed in the period earned and recorded within selling, general and administrative expenses. We incur upfront costs to implement new customer contracts under our SaaS revenue model. We capitalize these costs, including (a) certain external direct costs of materials and services incurred to implement a customer contract and (b) payroll and payroll related costs for employees who are directly associated with and devote time to implementation activities. Capitalized implementation costs are amortized on a straight-line basis over the related contract term, ranging from two to ten years , as they are recoverable through deferred or future revenues associated with the relevant contract. These assets are reviewed for recoverability on a periodic basis or when an event occurs that could impact the recoverability of the assets, such as a significant contract modification or early renewal of contract terms. Recoverability is measured based on the future estimated revenue and direct costs of the contract compared to the capitalized implementation costs. See Note 7. Balance Sheet Components and Note 2. Revenue from Contracts with Customers, for additional information. Amortization of capitalized implementation costs, included in depreciation and amortization, totaled $ 11 million, $ 13 million and $ 17 million for the years ended December 31, 2025, 2024 and 2023, respectively. Income Taxes Deferred income tax assets and liabilities are determined based on differences between financial reporting and income tax basis of assets and liabilities and are measured using the tax rates and laws enacted at the time of such determination. We regularly review our deferred tax assets for recoverability and a valuation allowance is provided when it is more likely than not that some portion, or all, of a deferred tax asset will not be realized. In assessing the need for a valuation allowance, we make estimates and assumptions regarding projected future taxable income, the reversal of deferred tax liabilities and implementation of tax planning strategies. We reassess these assumptions regularly which could cause an increase or decrease to the valuation allowance, resulting in an increase or decrease in the effective tax rate, and could materially impact our results of operations. We recognize liabilities when we determine a tax position is not more likely than not to be sustained upon examination by the tax authorities. We use significant judgment in determining whether a tax position's technical merits are more likely than not to be sustained and in measuring the amount of tax benefit that qualifies for recognition. For matters that are determined will more likely than not be sustained, we measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. We recognize penalties and interest accrued related to income taxes as a component of the 62 provision for income taxes. As the matters challenged by the taxing authorities are typically complex and open to subjective interpretation, their ultimate outcome may differ from the amounts recognized. We recognize liabilities, if any, related to global low-taxed intangible income (“GILTI”) in the year in which the liability arises and not as a deferred tax liability. Pension and Other Postretirement Benefits We recognize the funded status of our defined benefit pension plans and other postretirement benefit plans in our consolidated balance sheets. The funded status is the difference between the fair value of plan assets and the benefit obligation as of the balance sheet date. The fair value of plan assets represents the cumulative contributions made to fund the pension and other postretirement benefit plans which are invested primarily in domestic and foreign equities and fixed income securities. The benefit obligation of our pension and other postretirement benefit plans are actuarially determined using certain assumptions approved by us. The benefit obligation is adjusted annually in the fourth quarter to reflect actuarial changes and may also be adjusted upon the adoption of plan amendments. These adjustments are initially recorded in accumulated other comprehensive income (loss) and are subsequently amortized over the life expectancy of the plan participants as a component of net periodic benefit costs. Equity-Based Compensation We account for our stock awards and options by recognizing compensation expense, measured at the grant date based on the fair value of the award, on a straight-line basis over the award vesting period, giving consideration as to whether the amount of compensation cost recognized at any date is equal to the portion of grant date value that is vested at that date. Compensation expense on stock awards subject to performance conditions, which is based on the quantity of awards we have determined are probable of vesting, is recognized over the longer of the estimated performance goal attainment period or time vesting period. We recognize equity-based compensation expense net of any actual forfeitures. We measure the grant date fair value of stock option awards as calculated by the Black-Scholes option-pricing model which requires certain subjective assumptions, including the expected term of the option, the expected volatility of our common stock, risk-free interest rates and expected dividend yield. The expected term is estimated by using the “simplified method” which is based on the midpoint between the vesting date and the expiration of the contractual term. We utilized the simplified method due to the lack of sufficient historical experience under our current grant terms. The expected volatility is based on the historical volatility of our stock price. The expected risk-free interest rates are based on the yields of U.S. Treasury securities with maturities appropriate for the expected term of the stock options. The expected dividend yield is based on the calculated yield on our common stock at the time of grant. No stock options were granted during the years ended December 31, 2025, 2024 and 2023. Foreign Currency We remeasure foreign currency transactions into the relevant functional currency and record the foreign currency transaction gains or losses as a component of other, net in our consolidated statements of operations. We translate the financial statements of our non-U.S. dollar functional currency foreign subsidiaries into U.S. dollars in consolidation and record the translation gains or losses as a component of other comprehensive income (loss). Translation gains or losses of foreign subsidiaries related to divested businesses are reclassified into earnings as a component of other, net in our consolidated statements of operations once the liquidation of the respective foreign subsidiaries is substantially complete. Adoption of New Accounting Standards In December 2023, the Financial Accounting Standards Board ("FASB") issued updated guidance to enhance the transparency and decision usefulness of income tax disclosures through improvements primarily related to the rate reconciliation and income taxes paid information. The updated standard is effective for public companies for fiscal years beginning after December 15, 2024, with early adoption permitted. The updated standard can be applied on a prospective basis, although retrospective application to all periods presented is permitted. We adopted this standard on a prospective basis as of December 31, 2025. See Note 8. Income Taxes for more information on the impacts from adoption. In July 2025, the FASB issued updated guidance to simplify the application of the current expected credit loss (“CECL”) model for certain short-duration financial assets. The standard is effective for fiscal years beginning after December 15, 2025, including interim periods within those fiscal years, with early adoption permitted. We early adopted this standard for the year ended December 31, 2025, including the application of the practical expedient related to the estimation of expected credit losses for current accounts receivable and current contract assets. The adoption had no impact on our financial statements. Recent Accounting Pronouncements In November 2024, the FASB issued guidance regarding disaggregation of income statement expenses, which requires additional disclosure of certain costs and expenses within the notes to the financial statements. The standard is effective for public companies for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. We are currently evaluating the impact that this standard will have on our consolidated financial statement disclosures. In September 2025, the FASB issued guidance regarding intangibles—goodwill and other—internal-use software, which updates the accounting and disclosures for software costs. The standard is effective for public companies for fiscal years 63 beginning after December 15, 2027, and interim reporting periods within those annual reporting periods, with early adoption permitted. We are currently evaluating the impact that this standard will have on our consolidated financial statements and related disclosures. 2. Revenue from Contracts with Customers Contract Balances Revenue recognition for a significant portion of our revenue coincides with normal billing terms, including our transactional revenues, SaaS revenues, and hosted revenues. Timing differences among revenue recognition, unconditional rights to bill, and receipt of contract consideration may result in contract assets or contract liabilities. The following table presents our assets and liabilities with customers as of December 31, 2025 and December 31, 2024 (in thousands): Account Consolidated Balance Sheet Location December 31, 2025 December 31, 2024 Contract assets and customer advances and discounts (1) Prepaid expenses and other current assets / other assets, net $ 16,692 $ 28,112 Trade and unbilled receivables, net Accounts receivable, net 308,825 282,173 Long-term trade unbilled receivables, net Other assets, net 7,795 9,331 Contract liabilities Deferred revenues / other noncurrent liabilities 96,753 107,867 _______________________________ (1) Includes contract assets of $ 4 million and $ 8 million for December 31, 2025 and 2024, respectively. During the year ended December 31, 2025, we recognized revenue of approximately $ 25 million from contract liabilities that existed as of January 1, 2025. Our long-term trade unbilled receivables, net relate to fixed license fees billed over the contractual period and recognized when the customer gains control of the software. We evaluate collectability of our accounts receivable based on a combination of factors and record reserves as described further in Note 9. Credit Losses. Revenue The following table presents our revenues disaggregated by business (in thousands): Year Ended December 31, 2025 2024 2023 Distribution $ 2,216,990 $ 2,173,619 $ 2,057,044 IT Solutions (1) 553,993 571,226 585,033 Total Sabre Revenue $ 2,770,983 $ 2,744,845 $ 2,642,077 _______________________________ (1) Includes license fee revenue recognized upon delivery to the customer of $ 5 million, $ 7 million and $ 7 million for the years ended December 31, 2025, 2024 and 2023, respectively. We may occasionally recognize revenue in the current period for performance obligations partially or fully satisfied in the previous periods resulting from changes in estimates for the transaction price, including any changes to our assessment of whether an estimate of variable consideration is constrained. For the year ended December 31, 2025, the impact on revenue recognized in the current period, from performance obligations partially or fully satisfied in the previous period, is $ 3 million. Unearned performance obligations primarily consist of deferred revenue for fixed implementation fees and future product implementations, which are included in deferred revenue and other noncurrent liabilities in our consolidated balance sheet. We have not disclosed the performance obligation related to contracts containing minimum transaction volume, as it represents a subset of our business, and therefore would not be meaningful in understanding the total future revenues expected to be earned from our long-term contracts. See Note 1. Summary of Business and Significant Accounting Policies regarding revenue recognition of our various revenue streams for more information. We estimate future cancellations using the expected value approach at the end of each reporting period based on the number of undeparted bookings, expected cancellations and an estimated rate. Assumptions used in our cancellation reserve include our estimate of bookings that we expect will eventually travel, as well as to the mix of those bookings between domestic and international, given the varying rates paid by airline suppliers. Our air booking cancellation reserve totaled $ 13 million and $ 11 million as of December 31, 2025 and 2024, respectively. Contract Acquisition Costs and Capitalized Implementation Costs We incur contract costs in the form of acquisition costs and implementation costs. Contract acquisition costs are related to new contracts with our customers in the form of sales commissions based on the estimated contract value. We incur contract implementation costs to implement new customer contracts under our SaaS revenue model . We periodically assess contract costs for recoverability, and our assessment did not result in any material impairments for the years ended December 31, 2025 64 and 2024. See Note 1. Summary of Business and Significant Accounting Policies for an overview of our policy for capitalization of acquisition and implementation costs. The following table presents the activity of our acquisition costs and capitalized implementation costs for the years ended December 31, 2025 and 2024 (in thousands): Year Ended December 31, 2025 2024 Contract acquisition costs: Beginning balance $ 8,008 $ 7,847 Additions 3,016 2,835 Amortization ( 2,696 ) ( 2,674 ) Ending balance $ 8,328 $ 8,008 Capitalized implementation costs: Beginning balance $ 50,365 $ 50,363 Additions 8,563 13,085 Amortization ( 11,423 ) ( 12,698 ) Impairment ( 1,062 ) ( 1,092 ) Other 1,042 707 Ending balance $ 47,485 $ 50,365 3. Discontinued Operations and Dispositions On April 27, 2025, we entered into a definitive purchase agreement with the Buyer pursuant to which the Buyer agreed to purchase our Hospitality Solutions business, and on July 3, 2025, we closed the transaction for estimated cash proceeds of $ 965 million, net. Cash proceeds are net of estimated taxes and fees, cash acquired by the Buyer and customary closing adjustments. We recognized a pre-tax gain on sale of $ 822 million (after-tax $ 724 million) in the third quarter of 2025, which is recorded in other, net , within discontinued operations in our consolidated statements of operations during the year ended December 31, 2025. The assets and liabilities associated with the Hospitality Solutions business are presented as discontinued operations on our consolidated balance sheet as of December 31, 2024, and the operating results of our Hospitality Solutions business are presented as discontinued operations in our consolidated statements of operations for all periods presented. The presentation of discontinued operations excludes general corporate overhead and other costs that do not meet the requirements to be presented as discontinued operations. Interest expense associated with the debt that was required to be repaid with the proceeds from the Hospitality Solutions Sale as well as the related loss on extinguishment of debt is classified as discontinued operations within our results of operations in all periods presented. See Note 10. Debt for further details. In connection with the closing of the Hospitality Solutions Sale, we entered into transition services agreements ("TSA") with the Buyer, under which we provide transition services consisting of technology, employment, administrative and other services for up to an eighteen month period to help provide for an orderly transition and facilitate the ongoing operations of the Hospitality Solutions business following the close. Consideration received under the agreements is primarily based on actual costs incurred for each service provided. Amounts due for transition services provided to the Hospitality Solutions business under the TSA, net of direct and incremental costs to provide the services, are recorded to other, net, within continuing operations in our consolidated statements of operations during the year ended December 31, 2025 and presented within the operating activities section of the statement of cash flows. Service charges under the TSA were approximately $ 39 million for the year ended December 31, 2025 and cash receipts related to the charges were approximately $ 33 million for the year ended December 31, 2025. Under the TSA, we also collect funds and make payments on behalf of Hospitality Solutions. These net receipts or payments are presented as Net Receipts (Payments) on Behalf under TSA within the financing activities section of the statement of cash flows. Additionally, at the time of sale, Hospitality Solutions entered into certain long-term agreements with us to continue to utilize our GDS for bookings which generates revenue for us. Consideration received under these revenue agreements has been assessed and determined to be at fair value. Revenue earned and cash received since the closing of the Hospitality Solutions Sale related to these agreements was approximately $ 25 million and $ 18 million, respectively for the year ended December 31, 2025. Historically, Travel Solutions recognized inter-segment revenue for bookings generated by our Hospitality Solutions business. Revenue that was previously eliminated but is now in our results of continuing operations was $ 35 million and $ 42 million for the years ended December 31, 2025 and 2024, respectively. The following table presents the major categories of income from discontinued operations related to the Hospitality Solutions business (in thousands): 65 Year Ended December 31, 2025 2024 2023 Revenue $ 174,317 $ 326,819 $ 304,168 Cost of revenue, excluding technology costs 84,732 150,562 151,874 Technology costs 41,991 85,249 85,870 Selling, general and administrative 27,025 46,698 51,750 Operating income 20,569 44,310 14,674 Other expense: Interest expense, net ( 42,070 ) ( 56,368 ) ( 51,281 ) Loss on extinguishment of debt ( 13,519 ) — — Other, net 825,247 ( 960 ) 897 Total other expense, net 769,658 ( 57,328 ) ( 50,384 ) Income (loss) from discontinued operations before income taxes 790,227 ( 13,018 ) ( 35,710 ) Provision (benefit) for income taxes (1) 10,775 ( 5,883 ) 692 Net income (loss) from discontinued operations $ 779,452 $ ( 7,135 ) $ ( 36,402 ) ______________________ (1) We used an intra-period tax allocation to allocate the provision for income taxes for all periods presented between continuing operations and discontinued operations. The following table presents the major classes of assets and liabilities from discontinued operations at December 31, 2024 related to the Hospitality Solutions business (in thousands): December 31, 2024 Assets: Accounts receivable, net $ 53,377 Prepaid expenses and other current assets 1,204 Current assets 54,581 Property and equipment, net of accumulated depreciation 14,614 Goodwill and intangibles 192,156 Other assets, net 29,032 Long-term assets 235,802 Total assets $ 290,383 Liabilities: Accounts payable $ 20,687 Other accrued liabilities and accrued compensation 18,609 Deferred revenues 11,911 Current liabilities 51,207 Other noncurrent liabilities and deferred income taxes 15,989 Long-term liabilities 15,989 Total liabilities $ 67,196 The following table presents selected financial information related to cash flows from discontinued operations for the years ended December 31, 2025 and 2024 (in thousands): 66 Year Ended December 31, 2025 2024 2023 Cash (used in) provided by operating activities $ ( 21,659 ) $ 345 $ ( 11,554 ) Cash provided by (used in) investing activities 1,050,242 ( 4,621 ) ( 18,525 ) Cash provided by (used in) discontinued operations $ 1,028,583 $ ( 4,276 ) $ ( 30,079 ) 4. Redeemable Noncontrolling Interest On February 1, 2023, we sold common shares representing a 19 % interest in the direct parent of Conferma Limited, our subsidiary that is a virtual payments technology company ( “ Conferma ” ) , to a third party for cash consideration of $ 16 million. In connection with the sale, we entered into a governing agreement which requires us under limited conditions to redeem the 19 % interest, if requested, for the original purchase price of $ 16 million. We currently do not believe it is probable that the noncontrolling interest will become redeemable, given the remote likelihood of the applicable conditions being satisfied. As the common shares are redeemable upon the occurrence of conditions not solely within our control, we recorded the noncontrolling interest as redeemable and classified it as temporary equity within our consolidated balance sheet initially at fair value. The noncontrolling interest is adjusted each reporting period for loss or income attributable to the noncontrolling interest. As of December 31, 2025 and 2024, the redeemable noncontrolling interest was $ 12 million and $ 13 million, respectively. The following table presents the changes in redeemable noncontrolling interest of a consolidated subsidiary in temporary equity during the years ended December 31, 2025 and 2024 (in thousands): Year Ended December 31, 2025 2024 Redeemable noncontrolling interest, beginning of period $ 12,928 $ 14,375 Net loss attributable to redeemable noncontrolling interest ( 871 ) ( 1,447 ) Redeemable noncontrolling interest, end of period $ 12,057 $ 12,928 5. Restructuring Activities We have announced that we are implementing a program in 2026, designed to offset normal inflationary pressures over the next two to three years, with the goal of keeping technology costs and selling, general and administrative costs relatively flat when compared to 2025. In connection with these efforts, we accrued restructuring costs within our consolidated statement of operations during the year ended December 31, 2025, primarily associated with our workforce. We expect to record additional restructuring charges associated with these activities in 2026, and currently estimate the total costs to be $ 65 million, primarily associated with our workforce. During the year ended December 31, 2025, we accrued $ 51 million in connection with this program, of which $ 7 million is recorded within cost of revenue, excluding technology costs , $ 21 million is recorded within technology costs and $ 23 million is recorded within selling, general and administrative costs within our consolidated statement of operations. These restructuring costs are primarily comprised of amounts that will be paid in cash for severance and related benefits costs. 6. Goodwill and Intangible Assets Changes in the carrying amount of goodwill during the years ended December 31, 2025 and 2024 are as follows (in thousands): Total Goodwill Balance as of December 31, 2023 $ 2,384,480 Adjustments (1) ( 1,100 ) Balance as of December 31, 2024 2,383,380 Adjustments (1) 811 Balance as of December 31, 2025 $ 2,384,191 ________________________ (1) Includes net foreign currency effects during the years ended December 31, 2025 and 2024. 67 The following table presents our intangible assets as of December 31, 2025 and 2024 (in thousands): December 31, 2025 December 31, 2024 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Acquired customer relationships $ 956,093 $ ( 796,767 ) $ 159,326 $ 955,800 $ ( 777,926 ) $ 177,874 Trademarks and brand names 315,630 ( 197,005 ) 118,625 315,563 ( 186,376 ) 129,187 Purchased technology 380,867 ( 373,936 ) 6,931 379,972 ( 371,748 ) 8,224 Acquired contracts, supplier and distributor agreements 24,600 ( 24,600 ) — 24,600 ( 24,600 ) — Total intangible assets $ 1,677,190 $ ( 1,392,308 ) $ 284,882 $ 1,675,935 $ ( 1,360,650 ) $ 315,285 Amortization expense relating to intangible assets subject to amortization totaled $ 31 million for the year ended December 31, 2025 and $ 33 million for each of the years ended December 31, 2024 and 2023. Estimated amortization expense related to intangible assets subject to amortization for each of the five succeeding years and beyond is as follows (in thousands): 2026 $ 31,011 2027 30,640 2028 29,894 2029 28,997 2030 26,584 2031 and thereafter 137,756 Total $ 284,882 7. Balance Sheet Components Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist of the following (in thousands): December 31, 2025 2024 Prepaid Expenses $ 38,270 $ 37,629 Value added tax receivable 21,766 26,659 Other 14,019 12,230 Prepaid expenses and other current assets $ 74,055 $ 76,518 68 Property and Equipment, Net Property and equipment, net consists of the following (in thousands): December 31, 2025 2024 Buildings and leasehold improvements $ 23,522 $ 25,086 Furniture, fixtures and equipment 31,908 31,631 Computer equipment 117,421 117,867 Software developed for internal use 1,806,517 1,755,336 Property and equipment 1,979,368 1,929,920 Accumulated depreciation and amortization ( 1,724,045 ) ( 1,696,135 ) Property and equipment, net $ 255,323 $ 233,785 Other Assets, Net Other assets, net consist of the following (in thousands): December 31, 2025 2024 Right-of-Use asset (1) $ 57,520 $ 66,835 Capitalized implementation costs, net 47,485 50,365 Deferred upfront incentive consideration 58,476 61,058 Long-term contract assets and customer advances and discounts (2) 16,111 26,069 Long-term trade unbilled receivables (2) 7,795 9,331 Other 67,351 59,218 Other assets, net $ 254,738 $ 272,876 ________________________________ (1) Refer to Note 13. Leases for additional information. (2) Refer to Note 2. Revenue from Contracts with Customers for additional information. Other Noncurrent Liabilities Other noncurrent liabilities consist of the following (in thousands): December 31, 2025 2024 Pension and other postretirement benefits (1) $ 38,904 $ 61,990 Deferred revenue 38,867 47,668 Lease liabilities (2) 45,393 52,516 Other 50,008 41,867 Other noncurrent liabilities $ 173,172 $ 204,041 ___________________________ (1) Refer to Note 17. Pension and Other Postretirement Benefit Plans, for additional information. (2) Refer to Note 13. Leases, for additional information. 69 Accumulated Other Comprehensive Loss Accumulated other comprehensive loss consists of the following (in thousands): December 31, 2025 2024 Defined benefit pension and other postretirement benefit plans $ ( 70,603 ) $ ( 76,510 ) Unrealized foreign currency translation gain 8,757 8,196 Unrealized loss on interest rate swaps ( 1,721 ) ( 2,793 ) Share of other comprehensive loss of equity method investment ( 3,089 ) ( 2,640 ) Total accumulated other comprehensive loss, net of tax $ ( 66,656 ) $ ( 73,747 ) See Note 17. Pension and Other Postretirement Benefit Plans, for information on the income statement line items affected as the result of amortization of actuarial losses and periodic service credits associated with our retirement-related benefit plans. See Note 11. Derivatives, for information on the income statement line items affected as the result of reclassification adjustments associated with derivatives. 8. Income Taxes The components of pretax income from continuing operations, generally based on the jurisdiction of the legal entity, were as follows: Year Ended December 31, 2025 2024 2023 Components of pre-tax loss: Domestic $ ( 373,099 ) $ ( 363,329 ) $ ( 542,089 ) Foreign 133,865 95,888 84,196 $ ( 239,234 ) $ ( 267,441 ) $ ( 457,893 ) The provision for income taxes relating to continuing operations consists of the following: Year Ended December 31, 2025 2024 2023 Current portion: Federal $ 539 $ 6,804 $ 115 State and Local 2,995 1,746 1,024 Non U.S. 7,588 ( 2,641 ) 13,430 Total current 11,122 5,909 14,569 Deferred portion: Federal 3,405 1,746 ( 1,315 ) State and Local ( 953 ) ( 722 ) 18,332 Non U.S. 2,682 ( 2,826 ) 2,059 Total deferred 5,134 ( 1,802 ) 19,076 Total provision for income taxes $ 16,256 $ 4,107 $ 33,645 The provision for income taxes relating to continuing operations differs from amounts computed at the statutory federal income tax rate for the year ended December 31, 2025 as follows (in thousands, except percentages): 70 Year Ended December 31, 2025 U.S. federal statutory tax rate $ ( 50,239 ) 21.0 % State and local income tax, net of federal (national) income tax effect (1) 1,859 ( 0.8 )% Foreign tax effects United Kingdom 7,180 ( 3.0 )% Uruguay Free trade zone incentives ( 12,326 ) 5.2 % Other 2,148 ( 0.9 )% Other foreign jurisdictions ( 9,551 ) 4.0 % Effect of cross-border tax laws Branch income or loss 7,111 ( 3.0 )% Global intangible low-tax income 12,929 ( 5.4 )% Subpart F income inclusion 10,209 ( 4.3 )% Dividend received deduction ( 5,611 ) 2.3 % Other 943 ( 0.4 )% Tax credits Research tax credit ( 10,794 ) 4.5 % Changes in valuation allowances 73,071 ( 30.5 )% Changes in unrecognized tax benefits ( 4,674 ) 2.0 % Other adjustments ( 5,999 ) 2.5 % Effective tax rate $ 16,256 ( 6.8 )% ______________________ (1) Florida, Massachusetts, Oklahoma, and Illinois represent the majority (greater than 50%) of the tax effect in this category. The provision for income taxes relating to continuing operations differs from amounts computed at the statutory federal income tax rate for the years ended December 31, 2024 and 2023 is as follows: Year Ended December 31, 2024 2023 Income tax provision at statutory federal income tax rate $ ( 56,163 ) $ ( 96,157 ) State income taxes, net of federal benefit ( 4,736 ) ( 6,465 ) Impact of non U.S. taxing jurisdictions, net ( 6,783 ) ( 4,823 ) Base erosion and anti-abuse tax 5,310 9,818 Employee stock based compensation 8,178 8,965 Research tax credit ( 11,261 ) ( 31,296 ) Valuation Allowance 70,487 154,392 Other, net ( 925 ) ( 789 ) Total (benefit) provision for income taxes $ 4,107 $ 33,645 Cash paid for income taxes, net of refunds received, by jurisdiction for the year ended December 31, 2025 is as follows (in thousands): Year Ended December 31, 2025 Federal $ 5,200 State 5,029 Foreign India 2,075 Other Foreign Jurisdictions 2,602 Cash paid for income taxes, net of refunds received $ 14,906 Cash paid for income taxes was $ 18 million and $ 24 million for the years ended December 31, 2024 and 2023, respectively. 71 The components of our deferred tax assets and liabilities are as follows: As of December 31, 2025 2024 Deferred tax assets: Interest expense carryforwards $ 355,202 $ 251,985 Software developed for internal use 159,172 198,354 Tax loss carryforwards 140,844 188,202 Tax credit carryforwards 103,103 96,135 Employee benefits other than pension 22,393 31,874 Deferred revenue 19,509 27,320 Lease liabilities 13,057 14,803 Suspended loss 14,723 14,737 Pension obligations 7,389 11,087 Accrued expenses 6,413 10,901 Incentive consideration 3,067 4,223 Other 1,751 1,324 Total deferred tax assets 846,623 850,945 Deferred tax liabilities: Intangible assets ( 67,193 ) ( 81,467 ) Non U.S. operations ( 22,588 ) ( 24,982 ) Right of use assets ( 12,033 ) ( 14,126 ) Unrealized gains and losses ( 15,792 ) ( 16,016 ) Investment in partnership ( 10,632 ) ( 10,345 ) Bond discounts ( 10,346 ) ( 2,078 ) Depreciation and amortization ( 3,388 ) ( 3,255 ) Total deferred tax liabilities ( 141,972 ) ( 152,269 ) Valuation allowance (1) ( 737,391 ) ( 727,805 ) Net deferred tax liability (2) $ ( 32,740 ) $ ( 29,129 ) ______________________ (1) The change in the valuation allowance includes movement for both continuing operations and discontinued operations. (2) The deferred balances as of the year ended December 31, 2024 are inclusive of the discontinued operations net deferred tax liability of $ 7 million. We do not consider undistributed foreign earnings to be indefinitely reinvested as of December 31, 2025, with certain limited exceptions and have not, in those cases, recorded corresponding deferred taxes. We consider the undistributed capital investments in most of our foreign subsidiaries to be indefinitely reinvested as of December 31, 2025, and have not provided deferred taxes on any outside basis differences. The determination of the liability for the undistributed capital investments is not practicable. As of December 31, 2025, we have U.S. federal research tax credit carryforwards of approximately $ 73 million, which will expire between 2038 and 2045. U.S federal NOL carryforwards are forecast to be utilized with the filing of the 2025 U.S. federal tax return. There are no U.S. federal NOLs subject to the annual limit on the ability of a corporation to use certain tax attributes (as defined in Section 382 of the Internal Revenue Code). We have state NOLs of $ 7 million which will expire primarily between 2028 and 2045 and state research tax credit carryforwards of $ 28 million which will expire between 2035 and 2045. We have $ 585 million of non-U.S. NOL carryforwards and $ 8 million of foreign tax credits related to certain non-U.S. taxing jurisdictions that are primarily from countries with indefinite carryforward periods. We regularly review our deferred tax assets for realizability and a valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. The ultimate realization of deferred tax assets is dependent upon future taxable income during the periods in which those temporary differences become deductible. When assessing the need for a valuation allowance, all positive and negative evidence is analyzed, including our ability to carry back NOLs to prior periods, the reversal of deferred tax liabilities, tax planning strategies and projected future taxable income. Significant losses related to COVID-19 resulted in a three-year cumulative loss in certain jurisdictions, which represents significant negative evidence regarding the ability to realize deferred tax assets. As a result, we maintain a cumulative valuation allowance on our U.S. federal and state deferred tax assets of $ 547 million and $ 57 million, respectively as of December 31, 2025. For non-U.S. deferred tax assets of certain subsidiaries, we maintained a cumulative valuation allowance on current year losses and other deferred tax assets of $ 134 million as of December 31, 2025. We reassess these assumptions regularly, which could cause an increase or decrease to the valuation allowance resulting in an increase or decrease in the effective tax rate and could materially impact our results of operations. It is our policy to recognize penalties and interest accrued related to income taxes as a component of the provision for income taxes from continuing operations. During the year ended December 31, 2025, we recognized a benefit of $ 2 million, and 72 during the years ended December 31, 2024, and 2023, we recognized an expense of $ 4 million, and $ 12 million, respectively, related to interest and penalties. As of December 31, 2025 and 2024, we had a liability, including interest and penalties, of $ 48 million and $ 53 million, respectively, for uncertain tax positions, including cumulative accrued interest and penalties of approximately $ 8 million and $ 10 million, respectively. A reconciliation of the beginning and ending amount of uncertain tax positions, excluding interest and penalties, is as follows: Year Ended December 31, 2025 2024 2023 Balance at beginning of year $ 42,510 $ 52,850 $ 88,162 Additions for tax positions taken in the current year 1,444 4,022 6,275 Additions for tax positions of prior years 3,091 3,340 1,737 Reductions for tax positions of prior years ( 3,128 ) ( 16,265 ) ( 19,900 ) Reductions for tax positions of expired statute of limitations ( 3,227 ) ( 1,134 ) ( 18,485 ) Settlements ( 358 ) ( 303 ) ( 4,939 ) Balance at end of year $ 40,332 $ 42,510 $ 52,850 We present uncertain tax positions as a reduction to deferred tax assets for NOLs, similar tax loss or a tax credit carryforward that is available to settle additional income taxes that would result from the disallowance of a tax position, presuming disallowance at the reporting date. The amount of uncertain tax positions that were offset against deferred tax assets on our balance sheets was $ 19 million, $ 19 million, and $ 27 million as of December 31, 2025, 2024, and 2023 respectively, with remaining amounts recorded as a liability. As of December 31, 2025, 2024, and 2023, the amount of uncertain tax positions that, if recognized, would impact the effective tax rate was $ 40 million, $ 25 million, and $ 37 million, respectively. In the normal course of business, we are subject to examination by taxing authorities throughout the world. The following table summarizes, by major tax jurisdiction, our tax years that remain subject to examination by taxing authorities: Tax Jurisdiction Years Subject to Examination United Kingdom 2023 - forward Singapore 2021 - forward India 2003 - forward U.S. Federal 2020 - forward Texas 2016 - forward We currently have ongoing audits in India and various other jurisdictions. We do not expect that the results of these examinations will have a material effect on our financial condition or results of operations. With few exceptions, we are no longer subject to income tax examinations by tax authorities for years prior to 2016. 73 9. Credit Losses Our allowance for credit losses relates to all financial assets, primarily trade receivables due in less than one year recorded in Accounts Receivable, net on our consolidated balance sheets. Our allowance for credit losses for the year ended December 31, 2025 and 2024 for our portfolio segment is summarized as follows (in thousands): Year Ended December 31, 2025 Balance at December 31, 2023 $ 31,098 Provision for expected credit losses 2,194 Write-offs ( 9,492 ) Other ( 243 ) Balance at December 31, 2024 23,557 Provision for expected credit losses 1,869 Write-offs ( 7,540 ) Other 67 Balance at December 31, 2025 $ 17,953 We regularly monitor the financial condition of the air transportation industry. The credit risk related to the air carriers’ difficulties is significantly mitigated by the fact that we collect a significant portion of the receivables from these carriers through the ACH. As of December 31, 2025, approximately 57 % of our air customers make payments through the ACH which accounts for approximately 88 % of transaction revenue related to air customers. For these carriers, the use of ACH mitigates our credit risk with respect to airline bankruptcies. For those carriers from which we do not collect payments through the ACH or other similar clearing houses, our credit risk is higher. We monitor these carriers and account for the related credit risk through our normal reserve policies. 10. Debt As of December 31, 2025 and 2024, our outstanding debt included in our consolidated balance sheets totaled $ 4,349 million and $ 5,065 million, respectively, which are net of debt issuance costs of $ 60 million and $ 56 million, respectively, and unamortized discounts of $ 123 million and $ 100 million, respectively. The following table sets forth the face values of our outstanding debt as of December 31, 2025 and 2024 (in thousands): 74 December 31, Rate Maturity 2025 2024 Senior Secured Credit Facilities: 2021 Term Loan B-1 S (1) + 3.50 % December 2027 $ — $ 314,860 2021 Term Loan B-2 S (1) + 3.50 % December 2027 — 366,280 2022 Term Loan B-1 S (1) + 4.25 % June 2028 — 382,147 2022 Term Loan B-2 S (1) + 5.00 % June 2028 — 414,482 2024 Term Loan B-1 S (1) + 6.00 % November 2029 397,100 700,000 2024 Term Loan B-2 S (1) + 6.00 % November 2029 74,250 75,000 2025 Term Loan B-1 S (1) + 6.25 % July 2029 288,240 — 2025 Term Loan B-2 S (1) + 6.25 % July 2029 86,760 — 2028 Term Loan RR (2) + 1.75 % (3) December 2028 — 871,611 Securitization facility: AR Facility S (1) + 4.00 % (4) March 2027 82,000 82,200 FILO Facility S (1) + 8.00 % March 2027 120,000 120,000 9.25 % senior secured notes due 2025 9.25 % April 2025 — 10,416 4.00 % senior exchangeable notes due 2025 4.00 % April 2025 — 183,220 7.375 % senior secured notes due 2025 7.375 % September 2025 — 23,393 7.32 % senior exchangeable notes due 2026 7.32 % August 2026 150,000 150,000 8.625 % senior secured notes due 2027 8.625 % June 2027 91,607 656,783 11.25 % senior secured notes due 2027 11.25 % December 2027 1,558 45,814 10.75 % senior secured notes due 2029 10.75 % November 2029 445,715 824,714 11.125 % senior secured notes due 2030 11.125 % July 2030 1,325,000 — 10.75 % senior secured notes due 2030 10.75 % March 2030 469,802 — 11.125 % senior secured notes due 2029 11.125 % June 2029 1,000,000 — Face value of total debt outstanding 4,532,032 5,220,920 Less current portion of debt outstanding ( 247,665 ) ( 230,704 ) Face value of long-term debt outstanding $ 4,284,367 $ 4,990,216 ______________________ (1) Represents the Secured Overnight Financing Rate ("SOFR"). (2) Represents the Reference Rate as defined below. (3) At our election, if interest is paid in cash the spread was 0.25 % per annum, and in the case of interest paid-in-kind the spread was 1.75 %. (4) In connection with the issuance of the FILO Facility (as defined below), the drawn fee rate varies based on our leverage ratio. The drawn fee rate ranges from 3.00 % to 4.00 %, with incremental increases of 0.25 % between these levels. We had outstanding letters of credit totaling $ 11 million and $ 13 million as of December 31, 2025 and 2024, respectively. The outstanding letters of credit were secured by a $ 21 million cash collateral deposit account which is presented in restricted cash on our consolidated balance sheets as of December 31, 2025 and 2024. The weighted average interest rate on our short-term borrowings, which include our 7.32 % senior exchangeable notes due 2026, 8.625 % senior secured notes due 2027, 11.25 % senior secured notes due 2027 and the current portions of the 2025 Term Loan B-1, 2025 Term Loan B-2 and 2024 Term Loan B-2, is 7.88 % as of December 31, 2025. Interest is accrued in other accrued liabilities in our consolidated balance sheets. As of December 31, 2025 and 2024 we had $ 111 million and $ 43 million, respectively, of accrued interest within other current liabilities on our consolidated balance sheets. Senior Secured Credit Facilities Refinancing Transactions 75 On November 25, 2024, we entered into a third and fourth amendment (together, the “Term Loan B Amendments”) to the Amended and Restated Credit Agreement dated as of February 19, 2013 (the "Amended and Restated Credit Agreement") pursuant to which Sabre GLBL agreed to exchange $ 775 million of our then-existing senior secured term loans for the same amount of new senior secured term loans maturing on November 15, 2029 (the “2024 Term Loans”). The Term Loan B Amendments included the application of the proceeds of a new $ 700 million and $ 75 million term loan “B” facility (the “2024 Term Loan B-1” and the”2024 Term Loan B-2”, respectively), borrowed by Sabre GLBL under our Amended and Restated Credit Agreement, with the effect of extending the maturity of approximately $ 775 million of the then-existing Term Loan B credit facility under the Amended and Restated Credit Agreement. Sabre GLBL did not receive any cash proceeds from the exchange and did not incur additional indebtedness as a result of the Term Loan B Amendments. We incurred third-party fees of approximately $ 10 million plus $ 14 million of accrued and unpaid interest, of which $ 9 million and $ 14 million were paid in cash, respectively, during the year ending December 31, 2024. The remaining third-party fees have been paid as of December 31, 2025. We determined that the Term Loan B Amendments represented a debt modification and therefore we expensed all $ 10 million of third-party costs, to other, net in our consolidated statements of operations for the year ended December 31, 2024 and were included in cash flow from operations as paid. The 2024 Term Loan B-1 and 2024 Term Loan B-2 mature on November 15, 2029. They offer us the ability to prepay or repay with a 1.0 % call premium on or prior to the six-month anniversary of the amendment effective date, or without a call premium thereafter. The 2024 Term Loans bear interest at term SOFR, plus an applicable margin of 600 basis points, or at base rate, plus an applicable margin of 500 basis points. The term SOFR for the 2024 Term Loans is subject to a floor of 0.50 % per annum and the base rate is subject to a floor of 1.50 % per annum. Except for the extended maturity and new pricing terms, the 2024 Term Loans have substantially similar terms as the then-existing term loans, including guarantees and security interests. On December 9, 2025, we entered into a tenth and eleventh amendment (together, the “2025 Term Loan B Amendments”) to the Amended and Restated Credit Agreement dated pursuant to which Sabre GLBL agreed to exchange $ 347 million of the existing senior secured term loans (the “Existing Term Loans”) for $ 375 million of new senior secured term loans maturing on July 30, 2029 (the “2025 Term Loans”). The 2025 Term Loan B Amendments included the application of the proceeds of a new $ 288 million and $ 87 million term loan “B” facility (the “2025 Term Loan B-1” and the”2025 Term Loan B-2”, respectively), borrowed by Sabre GLBL under our Amended and Restated Credit Agreement, with the effect of extending the maturity of approximately $ 347 million of the existing Term Loan B credit facility under the Amended and Restated Credit Agreement. Sabre GLBL did not receive any cash proceeds from the exchange. We incurred third-party fees of approximately $ 5 million plus $ 2 million of accrued and unpaid interest,which were paid in cash, during the year ending December 31, 2025. We determined that the Term Loan B Amendments represent a debt modification and therefore we expensed all $ 5 million of third-party costs, to other, net in our consolidated statements of operations for the year ended December 31, 2025 and are included in cash flow from operations as paid. The 2025 Term Loan B-1 and 2025 Term Loan B-2 mature on July 30, 2029. They offer us the ability to prepay or repay with a 1.0 % call premium on or prior to the six-month anniversary of the amendment effective date, or without a call premium thereafter. The 2025 Term Loans bear interest at term SOFR, plus an applicable margin of 625 basis points, or at base rate, plus an applicable margin of 525 basis points. The term SOFR for the 2025 Term Loans is subject to a floor of 0.50 % per annum and the base rate is subject to a floor of 1.50 % per annum. Except for the extended maturity and new pricing terms, the 2025 Term Loans have substantially similar terms as the Existing Term Loans, including guarantees and security interests. On December 24, 2025, $ 233 million of our 2021 Term Loan B-1, $ 146 million of our 2021 Term Loan B-2, $ 135 million of our 2022 Term Loan B-1 and $ 113 million of our 2022 Term Loan B-2 was paid off with a portion of the proceeds borrowed under the 2025 Pari Passu Loan Agreement (as defined below). In connection with these paydowns, we recognized a loss on extinguishment of debt during the year ended December 31, 2025 of approximately $ 5 million, consisting of the write off of unamortized discount of $ 4 million and unamortized debt issuance costs of $ 1 million. Principal Payments As required under the terms of the credit facility, we used proceeds of $ 16 million from the sale of AirCentre assets to pay down the principal on the 2021 Term Loan B-2 in May 2023. We also used proceeds of $ 6 million from the issuance of the 2028 Term Loan (as defined below) to pay down the principal on the 2021 Term Loan B-1 and the 2021 Term Loan B-2 in June 2023. As required under the terms of the credit facility, we used proceeds of $ 158 million from the sale of Hospitality Solutions to pay down the principal on the 2021 Term Loan B-2 in July 2025. These payments resulted in the deferral of principal payments of the 2021 Term Loan B-1 and the 2021 Term Loan B-2 until June 2024 and maturity, respectively. In December 2025, we paid off all remaining principal balances associated with the 2021 Term Loan B-1 and the 2021 Term Loan B-2. As required under the terms of the credit facility, we used proceeds of $ 32 million from the sale of AirCentre assets to pay down the principal on the 2022 Term Loan B-1 and 2022 Term Loan B-2 in May 2023. In addition, we repurchased $ 10 million of the 2022 Term Loan B-2 using the proceeds from the issuance of 2028 Term Loan (as defined below) in June 2023. As required under the terms of the credit facility, we used proceeds of $ 164 million and $ 178 million from the sale of Hospitality Solutions to pay down the principal on the 2022 Term Loan B-1 and 2022 Term Loan B-2, respectively, in July 2025. These principal payments resulted in the deferral of principal payments of 2022 Term Loan B-1 and 2022 Term Loan B-2 until maturity. In December 2025, we paid off all remaining principal balances associated with the 2022 Term Loan B-1 and the 2022 Term Loan B-2. The 2024 Term Loan B-1 and 2024 Term Loan B-2 mature on November 15, 2029 and require principal payments in equal quarterly installments of 0.25 % through the maturity date on which the remaining balance is due. The first principal payments on 2024 Term Loan B-1 and 2024 Term Loan B-2 were due on the last business day of March 2025. As required under the terms of the credit facility, we used proceeds of $ 299 million from the sale of Hospitality Solutions to pay down the principal on the 2024 76 Term Loan B-1 in July 2025. These payments resulted in the deferral of principal payments on the 2024 Term Loan B-1 until maturity. The 2025 Term Loan B-1 and 2025 Term Loan B-2 mature on July 30, 2029 and require principal payments in equal quarterly installments of 0.25 % through the maturity date on which the remaining balance is due. The first principal payments on 2025 Term Loan B-1 and 2025 Term Loan B-2 are due on the last business day of March 2026. For the year ended December 31, 2025, we made $ 7 million of scheduled principal payments. We are also required to pay down the term loans, by an amount equal to 50 % of annual excess cash flow, as defined in the Amended and Restated Credit Agreement. This percentage requirement may decrease or be eliminated if certain leverage ratios are achieved. Based on our results for the year ended December 31, 2024, we were not required to make an excess cash flow payment in 2025, and no excess cash flow payment is expected to be required in 2026 with respect to our results for the year ended December 31, 2025. Debt paydown related to the sale of Hospitality Solutions business Following the closing of the Hospitality Solutions Sale on July 3, 2025, we used the net proceeds primarily to repay a portion of our outstanding indebtedness, as required and described above under Principal Payments. We recognized a loss on extinguishment of debt during the year ended December 31, 2025 of approximately $ 14 million in discontinued operations within our results of operations, primarily consisting of unamortized debt issuance cost and discount associated with these prepayments. Interest expense associated with the principal indebtedness that was repaid is classified as discontinued operations within our results of operations in all periods presented. Financial Covenants Under the Amended and Restated Credit Agreement, the loan parties are subject to certain customary non-financial covenants, including restrictions on incurring certain types of indebtedness, creation of liens on certain assets, making of certain investments, and payment of dividends. We are further required to pay down the term loans with proceeds from certain asset sales, if not reinvested into the business within 15 months, as defined in the Amended and Restated Credit Agreement. As of December 31, 2025, we were in compliance with all covenants under the terms of the Amended and Restated Credit Agreement. Interest Borrowings under the Amended and Restated Credit Agreement for our Senior Secured Credit Facilities bear interest at a rate equal to either, at our option: (i) the term SOFR rate plus an applicable margin for term SOFR borrowings as set forth below, or (ii) a base rate determined by the highest of (1) the prime rate of Bank of America, (2) the federal funds effective rate plus 0.50 % or (3) term SOFR plus 1.00 %, plus an applicable margin for base rate borrowings as set forth below. The term SOFR rate is based on SOFR for all U.S. dollar borrowings and has a floor. We have elected the one-month SOFR as the floating interest rate on our outstanding term loans that are subject to SOFR. Interest payments are due on the last day of each month as a result of electing one-month SOFR. Term SOFR borrowings Base rate borrowings Applicable Margin Applicable Margin 2024 Term Loan B-1 6.00 % (1) 5.00 % (1) 2024 Term Loan B-2 6.00 % (1) 5.00 % (1) 2025 Term Loan B-1 6.25 % (1) 5.25 % (1) 2025 Term Loan B-2 6.25 % (1) 5.25 % (1) _____________________________ (1) Subject to a 0.50 % floor and a SOFR adjustment factor of 0.10 % for the term SOFR rate and 1.50 % floor for the base rate. Our effective interest rates on borrowings under the Amended and Restated Credit Agreement for the years ended December 31, 2025, 2024 and 2023, are as follows: Year Ended December 31, 2025 2024 2023 Including the impact of interest rate swaps 10.00 % 9.71 % 9.93 % Excluding the impact of interest rate swaps 9.95 % 10.03 % 10.21 % 2028 Term Loan On June 13, 2023, Sabre Financial Borrower, LLC (“Sabre FB”), our indirect, consolidated subsidiary entered into a series of transactions including a term loan credit agreement with certain lenders (the "2023 Term Loan Agreement") and an intercompany secured term loan agreement (the "2023 Pari Passu Loan Agreement"). On June 4, 2025, we repaid all outstanding balances under these agreements in conjunction with the June 2025 Refinancing (as defined below). 77 The 2023 Term Loan Agreement provided for a senior secured term loan (the “2028 Term Loan”) that matures on December 15, 2028 and offered us the ability to prepay subject to prepayment premiums as follows: (i) with respect to any prepayment occurring on or prior to the second anniversary of the 2023 Term Loan Agreement, a customary make-whole amount, and (ii) with respect to any prepayment occurring after the second anniversary of the 2023 Term Loan Agreement and on or prior the third anniversary of the 2023 Term Loan Agreement, 25 % of the applicable interest margin assuming all interest was payable-in-kind. After the third anniversary of the 2023 Term Loan Agreement, all prepayments could have been made at par plus accrued interest. The interest on the 2028 Term Loan was payable in cash; provided that, at our election, from the date of the agreement, until the last interest payment date occurring on or prior to December 31, 2025, the interest could have been payable-in-kind. The 2028 Term Loan bore interest at a floating rate, with interest periods ending on each successive three month anniversary of the closing date and set in arrears based on the average of the highest yield to maturity of any tranche of Sabre GLBL’s or any of its affiliates’ outstanding secured indebtedness (as defined within the 2023 Term Loan Agreement) on each of the 20 prior trading days (the “Reference Rate”), plus (i) 25 basis points for cash interest or (ii) 175 basis points for payable-in-kind interest. The all-in interest rate floor was 11.50 % for cash interest and 13.00 % for payable-in-kind interest and the all-in interest rate ceiling was 17.50 % for cash interest and 19.00 % for payable-in-kind interest. We elected interest to be payable-in-kind. Interest on the 2028 Term Loan was accrued and payable or capitalized to principal if not elected to be paid in cash, commencing on June 13, 2023, and ending on the date three months thereafter and each successive three-month anniversary thereof on September 13, December 13, March 13, and June 13 of each year. We capitalized interest for the 2028 Term Loan totaling $ 28 million during the six months ended June 30, 2025. We did not capitalize interest during the six months ended December 31, 2025 as we repaid all outstanding borrowings under the 2028 Term Loan on June 4, 2025 in conjunction with the June 2025 Refinancing. Senior Secured Notes On March 7, 2024, Sabre GLBL exchanged approximately $ 36 million of our then-outstanding 7.375 % senior secured notes due 2025 (the “September 2025 Notes”) and approximately $ 7 million of our then-outstanding 9.250 % senior secured notes due 2025 (the “April 2025 Notes”) for approximately $ 50 million aggregate principal amount of additional 8.625 % senior secured notes due 2027 (the “June 2027 Notes”) (the "March 2024 Senior Secured Exchange Transaction"). No additional indebtedness was incurred as a result of the March 2024 Senior Secured Exchange Transaction, other than amounts covering exchange fees of approximately $ 7 million. Other than the issuance date and issue price, these additional June 2027 Notes have the same terms, form a single series with, and are fungible with the June 2027 Notes issued in September 2023. We incurred additional fees of approximately $ 1 million, which were funded with cash on hand. We determined that the March 2024 Senior Secured Exchange Transaction, including the impact of the exchange fees, represented a debt extinguishment and therefore recognized a loss on extinguishment of debt during the year ended December 31, 2024 of approximately $ 7 million, primarily consisting of exchange fees related to the June 2027 Notes. On November 25, 2024, Sabre GLBL exchanged approximately $ 246 million in principal amount of the June 2027 Notes and approximately $ 509 million in principal amount of our 11.250 % senior secured notes due December 2027 (the “December 2027 Notes”) for approximately $ 800 million of new 10.750 % senior secured notes due November 2029 (the “November 2029 Notes”) (the “Initial November 2024 Exchange Transactions”). Shortly thereafter, on November 27, 2024, Sabre GLBL issued an additional approximately $ 25 million in aggregate principal amount of November 2029 Notes in exchange for approximately $ 21 million of the then-outstanding April 2025 Notes and approximately $ 4 million of the then-outstanding September 2025 Notes (together with the Initial November 2024 Exchange Transactions, the “November 2024 Exchange Transactions”). Other than the issuance date and issue price, these additional November 2029 notes have the same terms, form a single series with, and are fungible with the November 2029 Notes described above. The November 2029 Notes bear interest at a rate of 10.750 % per annum, and interest payments are due semi-annually in arrears on May 15 and November 15 of each year, beginning May 15, 2025. The November 2029 Notes mature on November 15, 2029. Sabre GLBL did not receive any cash proceeds from the exchange and did not incur additional indebtedness as a result of the exchange other than $ 45 million of early exchange consideration on the November 2029 Notes, which was recorded as a discount. We incurred $ 11 million in fees, along with $ 31 million in accrued and unpaid interest. We determined that the November 2024 Exchange Transactions, including the impact of the early exchange consideration, represented a debt modification and therefore, expensed $ 11 million of debt modification costs in other, net in our consolidated statements of operations for the year ended December 31, 2024 and included in cash flow from operations as paid. The November 2029 Notes are jointly and severally, irrevocably and unconditionally guaranteed by Sabre Holdings and all of Sabre GLBL’s restricted subsidiaries that guarantee Sabre GLBL’s credit facilities governed by the Amended and Restated Credit Agreement. The remaining April 2025 Notes of $ 10 million and the September 2025 Notes of $ 23 million matured, and were repaid in full in the second and third quarters of 2025, respectively. 78 On June 4, 2025, Sabre GLBL issued $ 1.325 billion aggregate principal amount of 11.125 % Senior Secured Notes due 2030 (the “July 2030 Notes”). The net proceeds from the issuance were used (i) to fully prepay $ 900 million of its outstanding principal under the 2023 Pari Passu Loan Agreement with Sabre FB, which applied such amounts toward full prepayment of Sabre FB’s 2028 Term Loan; and (ii) to repurchase $ 325 million in principal amount of its June 2027 Notes (the “June 2025 Refinancing”). Interest on the July 2030 Notes is due semi-annually in arrears on January 15 and July 15 of each year, beginning on January 15, 2026, at a rate of 11.125 % per year, and the notes mature on July 15, 2030. As a result of the refinancing, Sabre GLBL incurred additional indebtedness of $ 100 million. In connection with the June 2025 Refinancing, we repaid an aggregate of $ 1.225 billion in outstanding principal, $ 44 million in related fees, $ 34 million in accrued and unpaid interest, and $ 27 million in third-party fees. We concluded that the June 2025 Refinancing represented a debt extinguishment and therefore recognized a loss on extinguishment of debt during the year ended December 31, 2025 of approximately $ 85 million. Cash proceeds from the new issuance, payments for the debt principal prepayment (excluding previously capitalized interest amounts) as well as third-party costs and fees paid to lenders that were directly related to the debt extinguishment were reflected as financing cash flows within our consolidated statements of cash flows. Payments associated with interest previously capitalized are reflected as operating cash flows within our consolidated statement of cash flows. The July 2030 Notes are jointly and severally, irrevocably and unconditionally guaranteed by Sabre Holdings and all of Sabre GLBL’s restricted subsidiaries that guarantee Sabre GLBL’s credit facilities governed by the Amended and Restated Credit Agreement. On December 5, 2025, Sabre Financial Borrower, LLC (“Sabre FB”), our indirect, consolidated subsidiary entered into a series of transactions governing Sabre FB's newly issued 11.125 % senior secured notes due 2029 (the “June 2029 Notes”) and an intercompany loan agreement (the "2025 Pari Passu Loan Agreement"). The June 2029 Notes were issued in an aggregate principal amount of $ 1 billion, subject to Sabre FB using the proceeds from the June 2029 Notes for an intercompany loan to Sabre GLBL. On December 5, 2025, Sabre FB borrowed the full $ 1 billion amount under the June 2029 Notes and lent the funds to Sabre GLBL under the 2025 Pari Passu Loan Agreement. Sabre FB’s obligations under the June 2029 Notes are required to be guaranteed on a secured basis by Sabre Financing Holdings LLC (“Sabre Financing”) and, up to an amount of $ 400 million certain of our existing and future foreign subsidiaries (the “Foreign Guarantors”). The June 2029 Notes pay interest semiannually in arrears on June 15 and December 15 of each year, beginning on June 15, 2026, at a rate of 11.125 % per year, and will mature on June 15, 2029. The proceeds of $ 1 billion received from the sale of the June 2029 Notes were used to repay $ 627 million of our outstanding term loans and $ 287 million of our existing senior secured notes (inclusive of $ 93 million that were or will be redeemed in the first quarter of 2026), plus $ 15 million of accrued interest and $ 13 million of third party costs related to these transactions (refer to the 2025 Term Loan B Amendments above and December 2025 Senior Secured Exchange Transaction defined below for more details). The remaining proceeds were partially used to pay $ 19 million in debt issuance costs. On December 8, 2025, Sabre GLBL exchanged approximately $ 379 million in principal amount of the November 2029 Notes, $ 240 million in principal amount of the June 2027 Notes and $ 44 million in principal amount of the December 2027 Notes for approximately $ 470 million of new 10.750 % senior secured notes due March 2030 (the “March 2030 Notes”) and $ 237 million in cash, inclusive of early exchange consideration, which was recorded as a discount (the "December 2025 Senior Secured Exchange Transaction"). The March 2030 Notes bear interest at a rate of 10.750 % per annum, and interest payments are due semi-annually in arrears on March 15 and September 15 of each year, beginning on March 15, 2026. The March 2030 Notes mature on March 15, 2030. We incurred $ 7 million in fees, along with $ 11 million in accrued and unpaid interest. We determined that the December 2025 Senior Secured Exchange Transaction, including the impact of the early exchange consideration, represents a debt modification and therefore, expensed $ 7 million of debt modification costs in other, net in our consolidated statements of operations for the year ended December 31, 2025 and included in cash flow from operations as paid. The March 2030 Notes are jointly and severally, irrevocably and unconditionally guaranteed by Sabre Holdings and all of Sabre GLBL’s restricted subsidiaries that guarantee Sabre GLBL’s credit facilities governed by the Amended and Restated Credit Agreement. On December 23, 2025, we issued a notice of full redemption to redeem all $ 92 million in aggregate principal amount of the June 2027 Notes on March 1, 2026 for a redemption price equal to 102.156 % of the aggregate principal amount of the June 2027 Notes to be redeemed plus accrued, but unpaid interest, to, but not including, the redemption date. On December 23, 2025, we irrevocably deposited or caused to be deposited funds in trust solely for the benefit of holders of the June 2027 Notes of $ 98 million, which is an amount sufficient to fully pay the redemption price. The $ 98 million is presented in restricted cash on our consolidated balance sheet as of December 31, 2025 and is made up of the following: $ 92 million principal amount due, $ 2 million call premium and $ 4 million of accrued interest through February 28, 2026. The debt will be repaid by the trustee at the early call price on March 2, 2026 under the terms of the notes. Subsequent to December 31, 2025, on January 22, 2026, we repaid the outstanding balance of our December 2027 Notes of $ 2 million in full, inclusive of redemption premiums and accrued and unpaid interest. Securitization Facility On February 14, 2023, Sabre Securitization, LLC, our indirect, consolidated subsidiary and a special purpose entity (“Sabre Securitization”), entered into a three-year committed accounts receivable securitization facility (as amended from time to time the “Securitization Facility”) of up to $ 200 million with PNC Bank, N.A. On March 29, 2024, Sabre Securitization increased the overall size of the existing Securitization Facility from $ 200 million to $ 235 million by issuing a $ 120 million "first-in, last-out" term loan tranche under the Securitization Facility (such tranche, the "FILO Facility") and reducing the revolving tranche under the Securitization Facility to $ 115 million (such tranche, the "AR Facility"). In connection with the issuance of the FILO Facility, the maturity date of the Securitization Facility was extended to March 29, 2027 and the springing maturity date thereunder was terminated. The FILO Facility provides the ability to prepay or 79 repay at certain redemption premiums as set forth in the agreement. The net proceeds received from the FILO Facility of $ 117 million, net of $ 3 million in fees paid to creditors, will be used for general corporate purposes. We incurred additional fees of $ 4 million, which were funded with cash on hand. On July 3, 2025, we repaid $ 23 million of the outstanding balance on our Securitization Facility due to the removal of receivables related to the Hospitality Solutions business. The amount available for borrowings at any one time under the Securitization Facility is limited to a borrowing base calculated based on the outstanding balance of eligible receivables, subject to certain reserves. As of December 31, 2025, we had $ 202 million outstanding under the Securitization Facility, consisting of $ 82 million under the AR Facility and $ 120 million outstanding under the FILO Facility. The FILO Facility bears interest at SOFR plus a drawn fee of 8.00 % per annum. Interest and fees payable by Sabre Securitization under the FILO Facility are due monthly. Borrowings under the AR Facility bear interest at a rate equal to SOFR, subject to a 0 % floor, plus a drawn fee, initially in the amount of 2.25 %, plus a 0.10 % SOFR adjustment. In connection with the issuance of the FILO Facility, the initial drawn fee rate was increased from 2.25 % to 4.00 %. The drawn fee rate, which was 4.00 % as of December 31, 2025 , varies based on our leverage ratio . Sabre Securitization also pays a fee on the undrawn committed amount of the AR Facility. Interest and fees payable by Sabre Securitization under the AR Facility are due monthly. Unamortized net debt issuance costs related to our AR Facility are $ 1 million for the year ended December 31, 2025 and $ 1 million for the year ended December 31, 2024, which are recorded in other assets, net in our consolidated balance sheets. In connection with the Securitization Facility, certain of our subsidiaries (the “Originators”) have sold and contributed, and will continue to sell or contribute, substantially all of their accounts receivable and certain related assets (collectively, the “Receivables”) to Sabre Securitization to be held as collateral for borrowings under the Securitization Facility. Sabre Securitization’s assets are not available to satisfy the obligations of Sabre Corporation or any of its affiliates. Under the terms of the Securitization Facility, the lenders under the AR Facility and FILO Facility would have a senior priority claim to the assets of Sabre Securitization, which will primarily consist of the Receivables of the Originators participating in the Securitization Facility. As of December 31, 2025, $ 274 million of Receivables are held as assets by Sabre Securitization, consisting of $ 266 million of accounts receivable and $ 8 million of other as sets, net in our conso lidated balance sheets. The Securitization Facility is accounted for as a secured borrowing on a consolidated basis, rather than a sale of assets; as a result, (i) Receivables balances pledged as collateral are presented as assets and the borrowings are presented as liabilities on our consolidated balance sheets, (ii) our consolidated statements of operations reflect the associated charges for bad debt expense (a component of general and administrative expenses) related to the pledged Receivables and interest expense associated with the Securitization Facility and (iii) receipts from customers related to the underlying Receivables are reflected as operating cash flows and borrowings and repayments u nder the Securitization Facility are reflected as financing cash flows within our consolidated statements of cash flows. The receivables and other assets of Sabre Securitization are not available to satisfy creditors of any entity other than Sabre Securitization. The Securitization Facility contains certain customary representations, warranties, affirmative covenants, and negative covenants, subject to certain cure periods in some cases, including the eligibility of the Receivables being sold by the Originators and securing the loans made by the lenders, as well as customary reserve requirements, events of default, termination events, and servicer defaults. As of December 31, 2025, we were in compliance with the financial covenants of the Securitization  Facility. Exchangeable Notes On April 17, 2020, Sabre GLBL entered into a debt agreement (the "2025 Exchangeable Notes Indenture") consisting of $ 345 million aggregate principal amount of 4.000 % senior exchangeable notes due 2025 (the “2025 Exchangeable Notes”). The 2025 Exchangeable Notes were senior, unsecured obligations of Sabre GLBL, and accrued interest payable semi-annually in arrears. The 2025 Exchangeable Notes matured on April 15, 2025 , and were settled with cash . On March 19, 2024, Sabre GLBL exchanged $ 150 million aggregate principal amount of its then-outstanding 2025 Exchangeable Notes for $ 150 million aggregate principal amount of Sabre GLBL's newly-issued 7.32 % senior exchangeable notes due 2026 (the "2026 Exchangeable Notes" and, together with the 2025 Exchangeable Notes, the "Exchangeable Notes") and approximately $ 30 million of cash (the "March 2024 Exchangeable Notes Exchange Transaction"). We incurred additional fees of approximately $ 5 million in associated fees and expenses plus $ 3 million of accrued and unpaid interest, all of which were funded with cash on hand. We determined that the March 2024 Exchangeable Notes Exchange Transaction , including the impact of the exchange fees, represents a debt extinguishment and therefore recognized a loss on extinguishment of debt of $ 31 million during the year ended December 31, 2024. We did not receive any cash proceeds from the exchange and did not incur additional indebtedness in excess of the aggregate principal amount of existing notes that were exchanged. The 2026 Exchangeable Notes are senior, unsecured obligations of Sabre GLBL, accrue interest payable semi-annually in arrears on February 1 and August 1 of each year, beginning on August 1 2024, and mature on August 1, 2026, unless earlier repurchased or exchanged in accordance with specified circumstances and terms of the indenture governing the 2026 Exchangeable Notes (the "2026 Exchangeable Notes Indenture") and, together with the 2025 Exchangeable Notes Indenture, the Exchangeable Notes Indentures). As of December 31, 2025, we have $ 150 million aggregate principal amount of 2026 Exchangeable Notes outstanding. 80 Under the terms of the 2026 Exchangeable Notes Indenture , the 2026 Exchangeable Notes are exchangeable into common stock of Sabre Corporation (referred to as “ our common stock” herein) at the following times or circumstances: • during any calendar quarter commencing after the calendar quarter ended June 30, 2024, if the last reported sale price per share of our common stock exceeds 130 % of the exchange price for each of at least 20 trading days (whether or not consecutive) during the 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter; • during the five consecutive business days immediately after any five consecutive trading day period (such five consecutive trading day period, the “ Measurement Period”) if the trading price per $1,000 principal amount of the 2026 Exchangeable Notes, as determined following a request by a holder in accordance with the procedures in the 2026 Exchangeable Notes Indenture , for each trading day of the Measurement Period was less than 98 % of the product of the last reported sale price per share of our common stock on such trading day and the exchange rate on such trading day; • upon the occurrence of certain corporate events or distributions on our common stock, including but not limited to a “Fundamental Change” (as defined in the 2026 Exchangeable Notes Indenture ); • upon the occurrence of specified corporate events; or • on or after February 1, 2026, until the close of business on the second scheduled trading day immediately preceding the maturity date, August 1, 2026. With certain exceptions, upon a Change of Control or other Fundamental Change (both as defined in the 2026 Exchangeable Notes Indenture), the holders of the 2026 Exchangeable Notes may require us to repurchase all or part of the principal amount of the 2026 Exchangeable Notes at a repurchase price equal to 100 % of the principal amount of the 2026 Exchangeable Notes, plus any accrued and unpaid interest to, but excluding, the repurchase date. As of December 31, 2025 , none of the conditions allowing holders of the 2026 Exchangeable Notes to exchange have been met. The 2026 Exchangeable Notes are exchangeable at their holder’s election into shares of our common stock based on an initial exchange rate of 222.2222 shares of common stock per $1,000 principal amount of the 2026 Exchangeable Notes , which is equivalent to an initial exchange price of approximately $ 4.50 per share. The exchange rate is subject to anti-dilution and other adjustments. Upon exchange, Sabre GLBL will pay or deliver, as the case may be, cash, shares of our common stock or a combination of cash and shares of common stock, at our election. If a “Make-Whole Fundamental Change” (as defined in the 2026 Exchangeable Notes Indenture) occurred with respect to any 2026 Exchangeable Note and the exchange date for the exchange of such 2026 Exchangeable Note occurred during the related “Make-Whole Fundamental Change Exchange Period” (as defined in the 2026 Exchangeable Notes Indenture), then, subject to the provisions set forth in the 2026 Exchangeable Notes Indenture, the exchange rate applicable to such exchange would have been increased by a number of shares set forth in the table contained in the 2026 Exchangeable Notes Indenture, based on a function of the time since origination and our stock price on the date of the occurrence of such Make-Whole Fundamental Change. Debt issuance costs are amortized over the contractual life of the Exchangeable Notes through interest expense, within our results from continuing operations. The effective interest rate at December 31, 2025 was 8.82 % for the 2026 Exchangeable Notes. The effective interest rates at December 31, 2024 were 4.78 % and 8.82 % for the 2025 Exchangeable Notes and the 2026 Exchangeable Notes, respectively. 81 The following table sets forth the carrying value of the Exchangeable Notes as of December 31, 2025 and 2024 (in thousands): Year Ended December 31, 2025 Year Ended December 31, 2024 2025 Exchangeable Notes 2026 Exchangeable Notes 2025 Exchangeable Notes 2026 Exchangeable Notes Principal $ — $ 150,000 $ 183,220 $ 150,000 Less: Unamortized debt issuance costs — 1,274 414 3,311 Net carrying value $ — $ 148,726 $ 182,806 $ 146,689 The following table sets forth interest expense recognized related to the Exchangeable Notes for years ended December 31, 2025 and 2024 (in thousands): Year Ended December 31, 2025 Year Ended December 31, 2024 2025 Exchangeable Notes 2026 Exchangeable Notes 2025 Exchangeable Notes 2026 Exchangeable Notes Contractual interest expense $ 2,138 $ 10,980 $ 8,629 $ 8,601 Amortization of issuance costs 414 2,037 1,616 1,475 Aggregate Maturities As of December 31, 2025, aggregate maturities of our long-term debt were as follows (in thousands): Amount Years Ending December 31, 2026 $ 247,665 2027 206,500 2028 4,500 2029 2,278,565 2030 1,794,802 Total $ 4,532,032 11. Derivatives Hedging Objectives —We are exposed to certain risks relating to ongoing business operations. The primary risk managed by using derivative instruments is interest rate risk. Interest rate swaps are entered into to manage interest rate risk associated with our floating-rate borrowings. In accordance with authoritative guidance on accounting for derivatives and hedging, we designate interest rate swaps as cash flow hedges of floating-rate borrowings. Cash Flow Hedging Strategy —We enter into interest rate swap agreements to manage interest rate risk exposure. The interest rate swap agreements modify our exposure to interest rate risk by converting floating-rate debt to a fixed rate basis, thus reducing the impact of interest rate changes on future interest expense and net earnings. These agreements involve the receipt of floating rate amounts in exchange for fixed rate interest payments over the life of the agreements without an exchange of the underlying principal amount. For derivative instruments that are designated and qualify as cash flow hedges, the effective portions and ineffective portions of the gain or loss on the derivative instruments are reported as a component of other comprehensive income (loss) (“OCI”) and reclassified into earnings in the same line item associated with the forecasted transaction and in the same period or periods during which the hedged transaction affects earnings. As of December 31, 2025, we did not have any hedge components excluded from the assessment of effectiveness. Cash flow hedges are classified in the same category in the consolidated statements of cash flows as the items being hedged and gains and losses on the derivative financial instruments are reported in cash provided by (used in) operating activities within the consolidated statements of cash flows. Derivatives not designated as hedging instruments are carried at fair value with changes in fair value reflected in other, net in the consolidated statements of operations. Interest Rate Swap Contracts — Interest rate swaps outstanding at December 31, 2025 and matured during the years ended December 31, 2025, 2024 and 2023 are as follows: 82 Notional Amount Interest Rate Received Interest Rate Paid Effective Date Maturity Date Designated as Hedging Instrument $ 200 million 1 month SOFR (1) 3.09 % (2) April 30, 2022 December 31, 2023 $ 150 million 1 month SOFR (1) 3.98 % (3) June 30, 2022 December 31, 2023 $ 250 million 1 month SOFR (1) 4.72 % June 30, 2023 June 30, 2026 $ 250 million 1 month SOFR (1) 3.88 % December 31, 2023 December 31, 2024 $ 250 million 1 month SOFR (1) 4.37 % January 16, 2024 January 31, 2026 ____________________ (1) Subject to a 0.5 % floor. (2) Fixed fee of 1.71 % effective April 30, 2022, and expiring December 30, 2022, and 3.09 % effective December 31, 2022, and expiring December 31, 2023. (3) Fixed fee of 2.79 % effective June 30, 2022, and expiring December 30, 2022, and 3.98 % effective December 31, 2022, and expiring December 31, 2023. In April 2022, we entered into an interest rate swap to hedge the first interest payments associated with $ 200 million of certain of our term loans under our Amended and Restated Credit Agreement for the years 2022 and 2023. In June 2022, we entered into an interest rate swap to hedge the first interest payments associated with $ 150 million of certain of our term loans under our Amended and Restated Credit Agreement for the years 2022 and 2023. In February 2023, we entered into a forward-starting interest rate swap to hedge the first interest payments associated with $ 250 million of certain of our term loans under our Amended and Restated Credit Agreement for the year ended 2024. In June 2023, we entered into an interest rate swap to hedge the first interest payments associated with $ 250 million of certain of our term loans under our Amended and Restated Credit Agreement for the periods through June 2026. In January 2024, we entered into an interest rate swap to hedge the first interest payments associated with $ 250 million of certain of our term loans under our Amended and Restated Credit Agreement related to the years 2024 and 2025. We designated these swaps as cash flow hedges. For the year ended December 31, 2025, we recognized a cash flow impact of $ 1 million related to our interest rate swaps, which is reported as cash provided by operating activities within our consolidated statements of cash flows. As of December 31, 2025, we estimate that $ 1 million in losses will be reclassified from other comprehensive income (loss) to earnings over the next 12 months. The estimated fair values of our derivatives designated as hedging instruments as of December 31, 2025 and 2024 are as follows (in thousands): Derivative (Liabilities) Assets Fair Value as of December 31, Derivatives Designated as Hedging Instruments Consolidated Balance Sheet Location 2025 2024 Interest rate swaps Other accrued liabilities $ ( 1,381 ) $ ( 1,593 ) Interest rate swaps Other noncurrent liabilities — ( 673 ) Total $ ( 1,381 ) $ ( 2,266 ) The effects of derivative instruments, net of taxes, on OCI for the years ended December 31, 2025, 2024 and 2023 are as follows (in thousands): Amount of Gains (Losses) Recognized in OCI on Derivative, Effective Portion Year Ended December 31, Derivatives in Cash Flow Hedging Relationships 2025 2024 2023 Interest rate swaps $ 84 $ 7,170 $ ( 794 ) Total $ 84 $ 7,170 $ ( 794 ) Amount of Losses (Gains) Reclassified from Accumulated OCI into Income, Effective Portion Year Ended December 31, Derivatives in Cash Flow Hedging Relationships Income Statement Location 2025 2024 2023 Interest rate swaps Interest expense, net $ 988 $ ( 7,094 ) $ ( 6,652 ) Total $ 988 $ ( 7,094 ) $ ( 6,652 ) 83 12. Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal or most advantageous market for that asset or liability. Guidance on fair value measurements and disclosures establishes a valuation hierarchy for disclosure of inputs used in measuring fair value defined as follows: Level 1—Inputs are unadjusted quoted prices that are available in active markets for identical assets or liabilities. Level 2—Inputs include quoted prices for similar assets and liabilities in active markets and quoted prices in non-active markets, inputs other than quoted prices that are observable, and inputs that are not directly observable, but are corroborated by observable market data. Level 3—Inputs that are unobservable and are supported by little or no market activity and reflect the use of significant management judgment. The classification of a financial asset or liability within the hierarchy is determined based on the least reliable level of input that is significant to the fair value measurement. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. We also consider the counterparty and our own non-performance risk in our assessment of fair value. Assets and Liabilities that are Measured at Fair Value on a Recurring Basis Interest Rate Swaps— The fair value of our interest rate swaps is estimated using a combined income and market-based valuation methodology based upon Level 2 inputs, including credit ratings and forward interest rate yield curves obtained from independent pricing services. Pension Plan Assets —See Note 17. Pension and Other Postretirement Benefit Plans, for fair value information on our pension plan assets. Money market funds —Our valuation technique used to measure the fair values of our money market funds was derived from quoted market prices and active markets for these instruments that exist. Time deposits —Our valuation technique used to measure the fair values of our time deposit instruments was derived from the following: non-binding market consensus prices that were corroborated by observable market data and quoted market prices for similar instruments. Investment in securities— In May 2022, we acquired 8 million shares of Class A Common Stock, par value of $ 0.0001 per share, of Global Business Travel Group, Inc. ("GBT") for an aggregate purchase price of $ 80 million, which was included in prepaid expenses and other current assets in our consolidated balance sheets. The terms of these shares did not contain any restrictions that would impact our ability to sell the shares in the future. The fair value of our investment in GBT was based on its share price, a Level 1 input, as the stock is publicly traded on the New York Stock Exchange under the symbol GBTG. In the third quarter of 2024, we sold all 8 million shares of our investment for $ 55 million and recognized a net gain of $ 3 million for the year ended December 31, 2024. Our valuation technique used to measure the fair value of our existing investments in securities is based on the stock's publicly traded share price. The following tables present our assets (liabilities) that are required to be measured at fair value on a recurring basis as of December 31, 2025 and 2024 (in thousands): 84 Fair Value at Reporting Date Using Assets: December 31, 2025 Level 1 Level 2 Level 3 Money market funds $ 410,493 $ 410,493 $ — $ — Time deposits 30,280 — 30,280 — Investment in securities 633 633 — — Total assets $ 441,406 $ 411,126 $ 30,280 $ — Liabilities: Derivatives (1) Interest rate swap contracts $ ( 1,381 ) $ — $ ( 1,381 ) $ — Total liabilities $ ( 1,381 ) $ — $ ( 1,381 ) $ — ______________________ (1) See Note 11. Derivatives for further detail. Fair Value at Reporting Date Using Assets: December 31, 2024 Level 1 Level 2 Level 3 Money market funds $ 425,407 $ 425,407 $ — $ — Time deposits 78,595 — 78,595 — Investment in securities 555 555 — — Total assets $ 504,557 $ 425,962 $ 78,595 $ — Liabilities: Derivatives (1) Interest rate swap contracts $ ( 2,266 ) $ — $ ( 2,266 ) $ — Total liabilities $ ( 2,266 ) $ — $ ( 2,266 ) $ — ______________________ (1) See Note 11. Derivatives for further detail. There were no transfers between Levels 1 and 2 within the fair value hierarchy for the years ended December 31, 2025 and 2024. Other Financial Instruments The carrying value of our financial instruments including cash and cash equivalents, restricted cash and accounts receivable approximates their fair values due to the short term nature of these instruments. The fair values of our 2025 Exchangeable Notes and 2026 Exchangeable Notes, senior secured notes due 2025, 2027, 2029 and 2030 and term loans under our Amended and Restated Credit Agreement are determined based on quoted market prices for a similar liability when traded as an asset in an active market, a Level 2 input. The fair value of the 2028 Term Loan and FILO Facility were determined using a valuation model that includes certain assumptions and Level 3 inputs. The outstanding principal balances of our AR Facility and FILO Facility approximated their fair value as of December 31, 2025 and 2024. 85 The following table presents the fair value and carrying value of our senior notes and borrowings under our senior secured credit facilities as of December 31, 2025 and 2024 (in thousands): As of December 31, 2025 As of December 31, 2024 Financial Instrument Fair Value Carrying Value (1) Fair Value Carrying Value (1) 2021 Term Loan B-1 $ — $ — $ 303,643 $ 314,453 2021 Term Loan B-2 — — 356,665 364,600 2022 Term Loan B-1 — — 372,593 379,617 2022 Term Loan B-2 — — 407,228 400,748 2024 Term Loan B-1 355,652 392,183 712,250 689,655 2024 Term Loan B-2 66,500 74,169 76,313 74,902 2025 Term Loan B-1 294,725 265,206 — — 2025 Term Loan B-2 88,712 78,911 — — 2028 Term Loan — — 906,020 853,788 9.25 % senior secured notes due 2025 — — 10,510 10,416 7.375 % senior secured notes due 2025 — — 23,081 23,393 4.00 % senior exchangeable notes due 2025 — — 181,322 183,220 7.32 % senior exchangeable notes due 2026 133,701 150,000 172,500 150,000 8.625 % senior secured notes due 2027 93,342 91,607 649,105 656,783 11.25 % senior secured notes due 2027 1,609 1,548 49,400 45,253 11.125 % senior secured notes due 2029 1,015,660 1,000,000 — — 10.75 % senior secured notes due 2029 379,250 422,816 853,220 774,332 10.75 % senior secured notes due 2030 386,274 406,318 — — 11.125 % senior secured notes due 2030 1,114,418 1,325,000 — — _____________________ (1) Excludes net unamortized debt issuance costs. Assets that are Measured at Fair Value on a Nonrecurring Basis As described in Note 1. Summary of Business and Significant Accounting Policies, we assess goodwill and other intangible assets with indefinite lives for impairment annually or more frequently if indicators arise. We continually monitor events and changes in circumstances such as changes in market conditions, near and long-term demand and other relevant factors, that could indicate that the fair value of any one of our reporting units may more likely than not have fallen below its respective carrying amount. Although we have not identified any triggering events or changes in circumstances that would require us to perform a goodwill impairment test, periodically, we will perform a quantitative assessment in the absence of identifying triggering events, as part of the qualitative assessment. In 2023, we elected to perform a quantitative assessment. We have not identified any triggering events or changes in circumstances since the performance of our goodwill impairment test in 2023 that would require us to perform another quantitative goodwill impairment test. We did not record any goodwill impairment charges for the year ended December 31, 2025. 86 13. Leases We lease certain facilities under long-term operating leases. Operating lease assets are included in operating lease right-of-use (“ROU”) assets within other assets, net and operating lease liabilities are included in other accrued liabilities and other noncurrent liabilities in our consolidated balance sheets. The following table presents the components of lease expense for the years ended December 31, 2025 and 2024 (in thousands): Year Ended December 31, 2025 2024 Operating lease cost $ 16,092 $ 16,045 The following table presents supplemental cash flow information related to leases (in thousands): Year Ended December 31, 2025 2024 Supplemental Cash Flow Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used in operating leases $ 16,928 $ 16,705 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 4,220 $ 9,530 The following table presents supplemental balance sheet information related to leases (in thousands): December 31, 2025 2024 Operating Leases Operating lease right-of-use assets $ 57,520 $ 66,835 Other accrued liabilities 15,248 15,285 Other noncurrent liabilities 45,393 52,516 Total operating lease liabilities $ 60,641 $ 67,801 The following table presents other supplemental information related to leases: December 31, 2025 2024 Weighted Average Remaining Lease Term (in years) Operating leases 5.4 6.2 Weighted Average Discount Rate Operating leases 7.2 % 7.4 % Lease Commitments We lease certain facilities under long term operating leases. Collectively, we lease approximately 725 thousand square feet of office space in 49 locations in 37 countries. Certain of our lease agreements contain renewal options, early termination options and/or payment escalations based on fixed annual increases, local consumer price index changes or market rental 87 reviews. We recognize rent expense with fixed rate increases and/or fixed rent reductions on a straight line basis over the term of the lease. Our leases have remaining minimum terms that range between one and seven years . Some of our leases include options to extend for up to ten additional years; others include options to terminate the agreement within two months . Future minimum lease payments under non-cancellable operating leases as of December 31, 2025 are as follows (in thousands): Year Ending December 31, Operating Leases 2026 $ 15,545 2027 14,237 2028 11,354 2029 11,557 2030 6,999 Thereafter 12,446 Total 72,138 Imputed Interest ( 11,497 ) Total $ 60,641 14. Stock and Stockholders’ Equity Preferred Stock On August 24, 2020, we completed an offering of 3,340,000 shares of our 6.50 % Series A Mandatory Convertible Preferred Stock (the "Preferred Stock"), which generated net proceeds of approximately $ 323 million for use as general corporate purposes. During the year ended December 31, 2021, a certain holder elected to convert 50,000 shares of preferred stock to 595,240 shares of common stock, leaving 3,290,000 shares outstanding. On September 1, 2023, the mandatory conversion date, each outstanding share of Preferred Stock was automatically converted into shares of our common stock at a rate of 14.2857 of common stock per share of Preferred Stock. The number of shares issued at conversion was approximately 47 million shares. The Preferred Stock accumulated cumulative dividends at a rate per annum equal to 6.50 % of the liquidation preference of $ 100 per share (equivalent to $ 6.50 annually per share) payable in cash or, subject to certain limitations, by delivery of shares of our common stock or any combination of cash and shares of our common stock, at our election; provided, however, that any undeclared and unpaid dividends would have continued to accumulate. We accrued $ 14 million of preferred stock dividends in our consolidated results of operations for the year ended December 31, 2023. During the year ended December 31, 2023, we paid cash dividends on our preferred stock of $ 16 million. Share Repurchase Program In February 2017, we announced the approval of a multi-year share repurchase program (the "Share Repurchase Program") to purchase up to $ 500 million of Sabre's common stock outstanding. Repurchases under the Share Repurchase Program may take place in the open market or privately negotiated transactions. On March 16, 2020, we announced the suspension of share repurchases under the Share Repurchase Program in conjunction with certain cash management measures we undertook as a result of the market conditions caused by COVID-19. During the years ended December 31, 2025, 2024 and 2023 we did not repurchase any shares pursuant to the Share Repurchase Program. As of December 31, 2025, the Share Repurchase Program remains suspended and approximately $ 287 million remains authorized for repurchases. Exchangeable Notes On April 17, 2020, we issued $ 345 million aggregate principal amount of 2025 Exchangeable Notes. On March 19, 2024, Sabre GLBL exchanged $ 150 million aggregate principal amount of our then-outstanding 2025 Exchangeable Notes for $ 150 million aggregate principal amount of the 2026 Exchangeable Notes and approximately $ 30 million of cash. Under the terms of the Exchangeable Notes Indentures, the Exchangeable Notes are exchangeable into our common stock under specified circumstances, at our election. As of December 31, 2025, we had $ 150 million aggregate principal amount of 2026 Exchangeable Notes outstanding. The 2025 Exchangeable Notes matured on April 15, 2025, and were settled with cash . See Note 10. Debt for further details. Until the 2026 Exchangeable Notes mature, we expect to settle the principal amount of the outstanding 2026 Exchangeable Notes in shares of our common stock. 15. Equity-Based Awards As of December 31, 2025, our outstanding equity-based compensation plans and agreements include the Sabre Corporation 2014 Omnibus Incentive Compensation Plan (the “2014 Omnibus Plan”), the Sabre Corporation 2016 Omnibus 88 Incentive Compensation Plan (the “2016 Omnibus Plan”), the Sabre Corporation 2019 Omnibus Incentive Compensation Plan (the "2019 Omnibus Plan"), the 2019 Director Equity Compensation Plan (the "2019 Director Plan"), the Sabre Corporation 2021 Omnibus Incentive Compensation Plan (the "2021 Omnibus Plan"), the 2022 Director Equity Compensation Plan (the "2022 Director Plan"), the Sabre Corporation 2023 Omnibus Incentive Compensation Plan (the "2023 Omnibus Plan"), the Sabre Corporation 2024 Omnibus Incentive Compensation Plan (the "2024 Omnibus Plan"), the 2024 Director Equity Compensation Plan (the "2024 Director Plan") and the Sabre Corporation 2025 Omnibus Incentive Compensation Plan (the "2025 Omnibus Plan"). Our 2025 Omnibus Plan serves as a successor to the 2024 Omnibus Plan, 2023 Omnibus Plan, the 2021 Omnibus Plan, the 2019 Omnibus Plan, the 2016 Omnibus Plan, and the 2014 Omnibus Plan, and provides for the issuance of stock options, restricted shares, restricted stock units (“RSUs”), performance-based RSU awards (“PSUs”), cash incentive compensation and other stock-based awards. Our 2024 Director Plan serves as a successor to the 2022 Director Plan and the 2019 Director Plan, and provides for the issuance of RSUs, Deferred Stock Units ("DSUs"), and stock options to non-employee Directors. Outstanding awards under all plans continue to be subject to the terms and conditions of their respective plan. We initially reserved 20,000,000 shares of our common stock for issuance under our 2025 Omnibus Plan. We added 19,295,404 shares that were reserved but not issued under the 2014 Omnibus, 2016 Omnibus Plan, 2019 Omnibus Plan, 2021 Omnibus Plan, 2023 Omnibus Plan, and 2024 Omnibus Plan to the 2025 Omnibus Plan reserves, for a total of 39,295,404 authorized shares of common stock for issuance under the 2025 Omnibus Plan. Time-based options generally vest over a three-year period, vesting in equal annual installments, and are exercisable for up to 10 years. RSUs generally vest over a three year period, vesting in equal annual installments, and PSUs generally cliff vest at the end of three years . Vesting of PSUs is dependent upon the achievement of certain company-based performance measures. Stock-based compensation expense for all awards totaled $ 46 million, $ 49 million and $ 47 million for the years ended December 31, 2025, 2024 and 2023, respectively. The fair value of the stock options granted was estimated at the date of grant using the Black-Scholes option pricing model. For further details on these assumptions, see Note 1. Summary of Business and Significant Accounting Policies. No stock options were granted during the year ended December 31, 2025, 2024 and 2023. The following table summarizes the stock option award activities under our outstanding equity-based compensation plans and agreements for the year ended December 31, 2025: Weighted-Average Quantity Exercise Price Remaining Contractual Term (years) Aggregate Intrinsic Value (in thousands) (1) Outstanding at December 31, 2024 1,634,777 $ 12.01 4.6 $ — Cancelled ( 36,775 ) 9.16 Expired ( 702,249 ) 9.71 Outstanding at December 31, 2025 895,753 $ 13.94 3.4 $ — Vested and exercisable at December 31, 2025 895,753 $ 13.94 3.4 $ — ______________________ (1) Aggregate intrinsic value is calculated as the difference between the exercise price of the underlying stock options awards and the closing price of our common stock of $ 1.36 and $ 3.65 on December 31, 2025 and 2024, respectively. If the aggregate intrinsic value is negative, it is assigned a nil value. There were no options exercised during the years ended December 31, 2025, 2024, and 2023. As of December 31, 2025, there was no unrecognized compensation expense associated with stock options. The following table summarizes the activities for our RSUs for the year ended December 31, 2025: Quantity Weighted-Average Grant Date Fair Value Unvested at December 31, 2024 27,002,281 $ 3.65 Granted 16,589,006 2.94 Vested ( 11,369,033 ) 4.15 Forfeited ( 5,401,756 ) 3.16 Unvested at December 31, 2025 26,820,498 $ 3.09 The total fair value of RSUs vested, as of their respective vesting dates, was $ 47 million, $ 48 million, and $ 51 million during the years ended December 31, 2025, 2024 and 2023, respectively. As of December 31, 2025, approximately $ 57 million in unrecognized compensation expense associated with RSUs will be recognized over a weighted average period of 1.8 years. 89 The following table summarizes the activities for our PSUs for the year ended December 31, 2025: Quantity Weighted-Average Grant Date Fair Value Unvested at December 31, 2024 9,198,596 $ 4.50 Granted 6,105,713 3.08 Vested ( 1,243,932 ) 9.70 Forfeited ( 2,474,441 ) 3.66 Unvested at December 31, 2025 11,585,936 $ 3.37 The total fair value of PSUs vested, as of their respective vesting dates, was $ 10 million during the year ended December 31, 2025, $ 11 million during the year ended December 31, 2024, and $ 19 million during the year ended December 31, 2023. The recognition of compensation expense associated with PSUs is contingent upon the achievement of annual company-based performance measures and a total shareholder return modifier. During the years ended December 31, 2025, 2024 and 2023, we assessed the probability of achieving the performance measures associated with PSU awards each reporting period and, if there was an adjustment, we recorded the cumulative effect of the adjustment in that respective reporting period. As of December 31, 2025, unrecognized compensation expense associated with PSUs expected to vest totaled $ 7 million and $ 5 million for the annual measurement periods ending December 31, 2026 and 2027, respectively. 16. Earnings Per Share The following table reconciles the numerators and denominators used in the computations of basic and diluted earnings per share from continuing operations (in thousands, except per share data): Year Ended December 31, 2025 2024 2023 Numerator: Loss from continuing operations $ ( 255,490 ) $ ( 271,548 ) $ ( 491,538 ) Less: Net income (loss) attributable to non-controlling interests ( 655 ) 76 ( 332 ) Less: Preferred stock dividends — — 14,257 Net loss from continuing operations available to common stockholders, basic and diluted $ ( 254,835 ) $ ( 271,624 ) $ ( 505,463 ) Denominator: Basic weighted-average common shares outstanding 391,707 383,733 346,567 Diluted weighted-average common shares outstanding 391,707 383,733 346,567 Earnings per share from continuing operations: Basic $ ( 0.65 ) $ ( 0.71 ) $ ( 1.46 ) Diluted $ ( 0.65 ) $ ( 0.71 ) $ ( 1.46 ) Basic earnings per share is computed by dividing net loss from continuing operations available to common stockholders by the weighted-average number of common shares outstanding during each period. Diluted earnings per share is computed by dividing net loss from continuing operations available to common stockholders by the weighted-average number of common shares outstanding plus the effect of all dilutive common stock equivalents during each period. The diluted weighted-average common shares outstanding calculation excludes 2 million, 4 million and 3 million of dilutive stock options and restricted stock awards for the years ended December 31, 2025, 2024 and 2023, respectively, as their effect would be anti-dilutive given the net loss incurred in those periods. The calculation of diluted weighted-average shares excludes the impact of 2 million, 2 million, and 6 million for the years ended December 31, 2025, 2024 and 2023, respectively, of anti-dilutive common stock equivalents. We have used the if-converted method for calculating any potential dilutive effect of the Exchangeable Notes on our diluted net income per share. Under the if-converted method, the 2025 Exchangeable Notes are assumed to be converted at the beginning of each period and the 2026 Exchangeable Notes are assumed to be converted at the beginning of the 2025 period and at the issuance date of March 19, 2024 for the 2024 period. The resulting common shares are included in the denominator of the diluted earnings per share calculation for the entire period being presented and interest expense, net of tax, recorded in connection with the Exchangeable Notes is added back to the numerator, only in the periods in which such effect is dilutive. The approximately 40 million resulting common shares related to the Exchangeable Notes for the year ended December 31, 2025, 57 million resulting common shares related to the Exchangeable Notes for the year ended December 31, 2024, and 42 million resulting common shares related to the 2025 Exchangeable Notes for the year ended December 31, 2023 are not included in the dilutive weighted-average common shares outstanding calculation as their effect would be anti-dilutive given the net loss incurred in those periods. 90 17. Pension and Other Postretirement Benefit Plans We sponsor the Sabre GLBL Inc. 401(k) Savings Plan (“401(k) Plan”), which is a tax qualified defined contribution plan that allows tax-deferred savings by eligible employees to provide funds for their retirement. We make a matching contribution equal to 100 % of each pre-tax dollar contributed by the participant on the first 6 % of eligible compensation. We recognized expenses related to the 401(k) Plan of approximately $ 14 million, $ 14 million and $ 17 million for the years ended December 31, 2025, 2024 and 2023, respectively. We sponsor the Sabre GLBL Inc. Legacy Pension Plan (“LPP”), which is a tax qualified defined benefit pension plan for employees meeting certain eligibility requirements. The LPP was amended to freeze pension benefit accruals as of December 31, 2005, and as a result, no additional pension benefits have been accrued since that date. In April 2008, we amended the LPP to add a lump sum optional form of payment which participants may elect when their plan benefits commence. The effect of the amendment was to decrease the projected benefit obligation by $ 34 million, which is being amortized over 23.5 years, representing the weighted average of the lump sum benefit period and the life expectancy of all plan participants. We also sponsor postretirement benefit plans for certain employees in Canada and other jurisdictions. The following tables provide a reconciliation of the changes in the LPP’s benefit obligations and fair value of assets during the years ended December 31, 2025 and 2024, and the unfunded status as of December 31, 2025 and 2024 (in thousands): Year Ended December 31, 2025 2024 Change in benefit obligation: Benefit obligation at January 1 $ ( 275,336 ) $ ( 292,212 ) Interest cost ( 14,708 ) ( 14,934 ) Actuarial (loss) gain, net ( 3,881 ) 6,046 Benefits paid 26,928 25,764 Benefit obligation at December 31 $ ( 266,997 ) $ ( 275,336 ) Change in plan assets: Fair value of assets at January 1 $ 212,217 $ 218,861 Actual return on plan assets 26,796 6,550 Employer contributions 16,430 12,570 Benefits paid ( 26,928 ) ( 25,764 ) Fair value of assets at December 31 $ 228,515 $ 212,217 Unfunded status at December 31 $ ( 38,482 ) $ ( 63,119 ) The actuarial loss of $ 4 million and gain of $ 6 million for the years ended December 31, 2025 and 2024, respectively, are attributable to decreases and increases, respectively, in the discount rate for each respective year. There were no settlement losses during the years ended December 31, 2025, 2024 and 2023. The net benefit obligation of $ 38 million and $ 63 million as of December 31, 2025 and 2024, respectively, is included in other noncurrent liabilities in our consolidated balance sheets. The amounts recognized in accumulated other comprehensive loss associated with the LPP, net of deferred taxes of $ 38 million as of December 31, 2025 and 2024, are as follows (in thousands): December 31, 2025 2024 Net actuarial loss $ ( 73,671 ) $ ( 81,027 ) Prior service credit 1,938 3,370 Accumulated other comprehensive loss $ ( 71,733 ) $ ( 77,657 ) 91 The following table provides the components of net periodic benefit costs associated with the LPP and the principal assumptions used in the measurement of the LPP benefit obligations and net benefit costs for the three years ended December 31, 2025, 2024 and 2023 (in thousands): Year Ended December 31, 2025 2024 2023 Interest cost (1) $ 14,708 $ 14,934 $ 16,151 Expected return on plan assets (1) ( 15,103 ) ( 16,098 ) ( 17,429 ) Amortization of prior service credit (1) ( 1,432 ) ( 1,432 ) ( 1,432 ) Amortization of actuarial loss (1) 2,921 2,812 2,302 Net periodic cost (benefit) $ 1,094 $ 216 $ ( 408 ) Weighted-average discount rate used to measure benefit obligations 5.46 % 5.72 % 5.38 % Weighted average assumptions used to determine net benefit cost: Discount rate (2) 5.72 % 5.38 % 5.72 % Expected return on plan assets 6.10 % 6.40 % 6.90 % ________________________________ (1) Included in other, net on our consolidated statement of operations. (2) Discount rates are as of January 1 of the respective years. The following table provides the pre-tax amounts recognized in other comprehensive income (loss), including the amortization of the actuarial loss and prior service credit, associated with the LPP for the years ended December 31, 2025, 2024 and 2023 (in thousands): Obligations Recognized in Year Ended December 31, Other Comprehensive Income (Loss) 2025 2024 2023 Net actuarial (gain) loss $ ( 4,635 ) $ ( 280 ) $ 5,187 Amortization of actuarial loss ( 2,921 ) ( 2,812 ) ( 2,302 ) Amortization of prior service credit 1,432 1,432 1,432 Total (income) loss recognized in other comprehensive income (loss) $ ( 6,124 ) $ ( 1,660 ) $ 4,317 Total recognized in net periodic benefit cost and other comprehensive income (loss) $ ( 5,030 ) $ ( 1,444 ) $ 3,909 Our overall investment strategy for the LPP is to provide and maintain sufficient assets to meet pension obligations both as an ongoing business, as well as in the event of termination, at the lowest cost consistent with prudent investment management, actuarial circumstances and economic risk, while minimizing the earnings impact. Diversification is provided by using an asset allocation primarily between equity and debt securities, and real assets, in proportions expected to provide opportunities for reasonable long term returns with acceptable levels of investment risk. Fair values of the applicable assets are determined as follows: Mutual Fund —The fair value of our mutual funds are estimated by using market quotes as of the last day of the period. Common Collective Trusts —The fair value of our common collective trusts are estimated by using market quotes as of the last day of the period, quoted prices for similar securities and quoted prices in non-active markets. Real Estate —For 2024, the fair value of our real estate funds are derived from the fair value of the underlying real estate assets held by the funds. These assets are initially valued at cost and are reviewed periodically utilizing available market data to determine if the assets held should be adjusted. The basis for the selected target asset allocation included consideration of the demographic profile of plan participants, expected future benefit obligations and payments, projected funded status of the plan and other factors. The target allocations for LPP assets are 40 % global equities, 15 % real estate assets, 15 % diversified credit, 28 % liability hedging assets, and 2 % cash. It 92 is recognized that the investment management of the LPP assets has a direct effect on the achievement of its goal. As defined in Note 12. Fair Value Measurements, the following tables present the value of the LPP assets as of December 31, 2025 and 2024: Assets at Fair Value as of December 31, 2025 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Common collective trust $ — $ 54,562 $ — $ 54,562 Money market mutual fund 2,127 — — 2,127 Total assets at fair value 2,127 54,562 — 56,689 Assets held at net asset value practical expedient: Commingled funds 137,710 Real estate 34,116 Total assets held at net asset value practical expedient 171,826 Total assets $ 228,515 Assets at Fair Value as of December 31, 2024 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Common collective trust $ — $ 172,546 $ — $ 172,546 Real estate — — 32,142 32,142 Money market mutual fund 7,529 — — 7,529 Total assets at fair value $ 7,529 $ 172,546 $ 32,142 $ 212,217 The following table provides a rollforward of plan assets valued using significant unobservable inputs (level 3), in thousands: Real Estate Ending balance at December 31, 2023 $ 32,569 Net distributions ( 169 ) Redemptions ( 188 ) Advisory fee ( 48 ) Net investment income 198 Unrealized loss ( 216 ) Net realized loss ( 4 ) Ending balance at December 31, 2024 $ 32,142 Net distributions ( 146 ) Redemptions ( 398 ) Advisory fee ( 42 ) Net investment income 187 Unrealized loss ( 78 ) Net realized gain 2,451 Sale of assets (1) ( 34,116 ) Ending balance at December 31, 2025 $ — ________________________________ (1) In 2025, we repurchased the assets in a limited partnership structure. Accordingly, at December 31, 2025 , the assets are no longer in Level 3 and are being reported at the net asset value practical expedient in the Real Estate Funds category. We contributed $ 16 million and $ 13 million to fund our defined benefit pension plans during each of the years ended December 31, 2025 and 2024, respectively. Annual contributions to our defined benefit pension plans in the United States, Canada, and other jurisdictions are based on several factors that may vary from year to year. Our funding practice is to contribute the minimum required contribution as defined by law while also maintaining an 80 % funded status as defined by the Pension Protection Act of 2006. Thus, past contributions are not always indicative of future contributions. Based on current assumptions, we expect to make a contribution of up to $ 11 million to our defined benefit pension plans in 2026. 93 The expected long term rate of return on plan assets for each measurement date was selected after giving consideration to historical returns on plan assets, assessments of expected long term inflation and market returns for each asset class and the target asset allocation strategy. We do not anticipate the return of any plan assets to us in 2026. We expect the LPP to make the following estimated future benefit payments (in thousands): Amount 2026 $ 27,562 2027 28,652 2028 30,378 2029 27,629 2030 25,087 2031-2035 105,003 18. Commitments and Contingencies Purchase Commitments In the ordinary course of business, we make various commitments in connection with the purchase of goods and services from specific suppliers. We have outstanding commitments of approximately $ 2.3 billion. These purchase commitments extend through 2038. Legal Proceedings While certain legal proceedings and related indemnification obligations to which we are a party specify the amounts claimed, these amounts may not represent reasonably possible losses. Given the inherent uncertainties of litigation, the ultimate outcome of these matters cannot be predicted at this time, nor can the amount of possible loss or range of loss, if any, be reasonably estimated, except in circumstances where an aggregate litigation accrual has been recorded for probable and reasonably estimable loss contingencies. A determination of the amount of accrual required, if any, for these contingencies is made after careful analysis of each matter. The amount of the accrual may change in the future due to new information or developments in each matter or changes in approach such as a change in settlement strategy in dealing with these matters. Indian Income Tax Litigation Sabre Asia Pacific Pte Ltd (“SAPPL”) is currently a defendant in income tax litigation brought by the Indian Director of Income Tax (“DIT”). The dispute arose when the DIT asserted that SAPPL has a permanent establishment within the meaning of the Income Tax Treaty between Singapore and India and accordingly issued tax assessments for assessment years ending March 2000 through March 2005. SAPPL appealed the tax assessments, and the Indian Commissioner of Income Tax (Appeals) returned a mixed verdict. SAPPL filed further appeals with the Income Tax Appellate Tribunal (“ITAT”). The ITAT ruled in SAPPL’s favor, finding that no income would be chargeable to tax for assessment years ending March 2000 through March 2005. The DIT appealed those decisions to the Bombay High Court and our case is pending before that court; the High Court dismissed the case for assessment years ending March 2001 through March 2004. The DIT also assessed taxes on a similar basis plus some additional issues for assessment years ending March 2006 through March 2016 and March 2018 through March 2021 and appeals for assessment years ending March 2006 through March 2016 and March 2018 through March 2021 are pending before the ITAT or the High Court depending on the year. If the DIT were to fully prevail on outstanding claims against us, that have not been dismissed, including SAPPL, and other group companies, we could be subject to taxes, interest and penalties of approximately $ 21 million as of December 31, 2025. We intend to continue to aggressively defend against each of the foregoing claims. Although we do not believe that the outcome of the proceedings will result in a material impact on our business or financial condition, litigation is by its nature uncertain. We do not believe this outcome is more likely than not and therefore have not made any provisions or recorded any liability for the potential resolution of any of these claims. Litigation Relating to Routine Proceedings We are also engaged from time to time in other routine legal and tax proceedings incidental to our business. We do not believe that any of these routine proceedings will have a material impact on the business or our financial condition. Other Other Tax Matters We operate in numerous jurisdictions in which taxing authorities may challenge our position with respect to income and non-income based taxes. We routinely receive inquiries and may also from time to time receive challenges or assessments from these taxing authorities. With respect to non-income based taxes, we recognize liabilities when we determine it is probable that amounts will be owed to the taxing authorities and such amounts are estimable. For example, in most countries we pay and collect Value Added Tax (“VAT”) when procuring goods and services, or providing services, within the normal course of business. 94 VAT receivables are established in jurisdictions where VAT paid exceeds VAT collected and are recoverable through the filing of refund claims. We intend to vigorously defend our positions against any claims that are not insignificant, including through litigation when necessary. As of December 31, 2025, we do not believe that an adverse outcome is probable and therefore have not made any provisions or recorded any liability for the potential resolution of any of these claims. We may incur expenses in future periods related to such matters, including litigation costs and possible pre-payment of a portion of any assessed tax amount to defend our position, and if our positions are ultimately rejected, it could have a material impact to our results from continuing operations. 19. Segment Information As a result of the Hospitality Solutions Sale, we now manage and report our business in one reportable segment. Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision maker (“CODM”), who is our Chief Executive Officer and President, in deciding how to allocate resources and assess performance. Our CODM reviews financial information presented on a consolidated basis to monitor budget versus actual results for purposes of allocating resources and evaluating financial performance. Our measure of segment profit and loss is net income (loss), as reported on our consolidated statements of operations. Our significant segment expenses, which are the expenses included in operating income, and other segment items, which includes other income (expense) and benefit from (provision for) income taxes, are included in our consolidated statements of operations. Total assets as presented on our consolidated balance sheets represent total assets considered by our CODM for any relevant operating evaluations. A significant portion of our revenue is generated through transaction-based fees that we charge to our customers. We generate revenue from our distribution activities through transaction fees for bookings on our GDS, and from our IT solutions through recurring usage-based fees for the use of our SaaS and hosted systems, as well as upfront fees and professional services fees. Transaction-based revenue accounted for approximately 85 % of our revenue for each of the years ended December 31, 2025, 2024 and 2023. Our revenues and long-lived assets, excluding goodwill and intangible assets, by geographic region are summarized below. Distribution revenue is attributed to countries based on the location of the travel supplier and IT Solutions revenue is based on the location of the customer. The majority of our revenues and long-lived assets are derived from the United States, Europe, and Asia-Pacific ("APAC") as follows (in thousands): Year Ended December 31, 2025 2024 2023 Revenue: United States $ 1,084,530 $ 1,012,591 $ 964,071 Europe 463,065 517,158 539,844 APAC 511,864 487,316 445,784 All Other 711,524 727,780 692,378 Total $ 2,770,983 $ 2,744,845 $ 2,642,077 As of December 31, 2025 2024 Long-lived assets United States $ 281,593 $ 263,349 Europe 16,998 21,907 APAC 5,994 6,439 All Other 8,258 9,151 Total $ 312,843 $ 300,846 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE Not applicable.