AVIS BUDGET GROUP, INC.

Previous wording

We operate three of the most globally recognized brands in mobility solutions, Avis, Budget and Zipcar, together with several other brands well recognized in their respective markets. We are a leading vehicle rental operator in North America, Europe, Australasia and certain other regions we serve, with an average rental fleet of approximately 699,000 vehicles in second quarter 2025. We also license the use of our trademarks to licensees in the areas in which we do not operate directly. We and our licensees operate our brands in approximately 180 countries throughout the world.

Current wording

We operate three of the most globally recognized brands in mobility solutions, Avis, Budget and Zipcar, together with several other brands well recognized in their respective markets. We are a leading vehicle rental operator in North America, Europe, Australasia and certain other regions we serve, with an average rental fleet of approximately 746,000 vehicles in third quarter 2025. We also license the use of our trademarks to licensees in the areas in which we do not operate directly. We and our licensees operate our brands in approximately 180 countries throughout the world.

Previous wording

Our strategy continues to focus on transforming key parts of our business through technology, system enhancements and data, particularly with respect to customer experience, revenue generation and costs. Additionally, during the fourth quarter of our fiscal year ended December 31, 2024, we changed our fleet strategy with respect to United States and Canadian rental car vehicles, to accelerate certain fleet rotations in order to decrease the age of our fleet for competitive reasons. We believe our strategies will continue to strengthen our Company, maximize profitability, and deliver stakeholder value. During the three months ended June 30, 2025, we generated revenues of $3.0 billion, net income of $5 millionand Adjusted EBITDA of $277 million. These results were primarily driven by sustained volume and decreased fleet costs, offset by decreased revenue per day.

Current wording

Our strategy continues to focus on transforming key parts of our business through technology, system enhancements and data, particularly with respect to customer experience, revenue generation and costs. Additionally, during the fourth quarter of our fiscal year ended December 31, 2024, we changed our fleet strategy with respect to United States and Canadian rental car vehicles, to accelerate certain fleet rotations in order to decrease the age of our fleet for competitive reasons. We believe our strategies will continue to strengthen our Company, maximize profitability, and deliver stakeholder value. During the three months ended September 30, 2025, we generated revenues of$3.5 billion, net income of $360 millionand Adjusted EBITDA of$559 million. These results were primarily driven by increased volume and decreased fleet costs, partially offset by decreased revenue per day.

Previous wording

•Our revenues totaled $5.5 billion, a decrease of $130 million year-over-year, primarily due to decreased revenue per day and volume.

Current wording

•Our revenues totaled $9.0 billion, a decrease of$91 million year-over-year, primarily due to decreased revenue per day.

Previous wording

•Our net loss attributable to Avis Budget Group, Inc. was $501 million, representing an additional loss of $401 million year-over-year, primarily dueto other fleet charges related to the accelerated disposal of certain fleet in our Americas reportable segment.

Current wording

•Our net loss attributable to Avis Budget Group, Inc. was $142 million, representing a decrease of $279 million year-over-year, primarily dueto other fleet charges related to the accelerated disposal of certain fleet in our Americas reportable segment.

Previous wording

•Our Adjusted EBITDA was $184 million, representing a decrease of $42 million year-over-year.

Current wording

•Our Adjusted EBITDA was $743 million, representing an increase of $14 million year-over-year.

Previous wording

Revenues decreased $9 million during the three months ended June 30, 2025 compared to the similar period in 2024, primarily due to a 1% decrease in revenue per day, excluding exchange rate effects, partially offset by a $24 million positive impact from currency exchange rate movements. Total expenses during the three months ended June 30, 2025 were consistent with the similar period in 2024. Our effective tax rates were a provision of 66.7% and 44.4% for the three months ended June 30, 2025 and 2024, respectively. As a result of these items, our net income attributable to Avis Budget Group, Inc. decreased by $10 million compared to the similar period in 2024. For the three months ended June 30, 2025 and 2024, we reported diluted earnings per share of $0.10 and $0.41, respectively.

Current wording

Revenues increased $39 million during the three months ended September 30, 2025 compared to the similar period in 2024, primarily due to a 1% increase in volume and a $37 million positive impact from currency exchange rate movements, partially offset by a 1% decrease in revenue per day, excluding exchange rate effects. Total expenses decreased 3% during the three months ended September 30, 2025 compared to the similar period in 2024, primarily due to decreased fleet costs. Our effective tax rates were a provision of 23.9% and 27.7% for the three months ended September 30, 2025 and 2024, respectively. As a result of these items, our net income attributable to Avis Budget Group, Inc. increased by $122 million compared to the similar period in 2024. For the three months ended September 30, 2025 and 2024, we reported diluted earnings per share of $10.11 and $6.65, respectively.

Previous wording

Revenues decreased $130 million or 2% during the six months ended June 30, 2025 compared to the similar period in 2024, primarily due to a 2% decrease in revenue per day, excluding exchange rate effects and a 1% decrease in volume, partially offset by a $1 million positive impact from currency exchange rate movements. Total expenses increased 7% during the six months ended June 30, 2025, compared to the similar period in 2024, primarily due to fleet costs. Our effective tax rates were a benefit of 24.6% and 14.8% for the six months ended June 30, 2025 and 2024, respectively. As a result of these items, our net loss attributable to Avis Budget Group, Inc. resulted in an additional loss of $401 million compared to the similar period in 2024. For the six months ended June 30, 2025 and 2024, we reported diluted loss per share of $14.24 and $2.80, respectively.

Current wording

Revenues decreased $91 million during the nine months ended September 30, 2025 compared to the similar period in 2024, primarily due to a 1% decrease in revenue per day, excluding exchange rate effects, and sustained volume, partially offset by a $38 million positive impact from currency exchange rate movements. Total expenses increased 4% during the nine months ended September 30, 2025 compared to the similar period in 2024, primarily due to increased fleet costs. Our effective tax rates were a benefit of 26.5% and a provision of 34.6% for the nine months ended September 30, 2025 and 2024, respectively. As a result of these items, our net income (loss) attributable to Avis Budget Group, Inc. resulted in a decrease of $279 million compared to the similar period in 2024. For the nine months ended September 30, 2025 and 2024, we reported diluted loss per share of $4.02 and diluted earnings per share $3.84, respectively.

Previous wording

Operating expenses increased to 52.6% of revenue during the six months ended June 30, 2025 compared to 51.4% during the similar period in 2024, primarily due to a decrease in revenue per day, excluding exchange rate effects, and sustained costs. Vehicle depreciation and lease charges increased to 30.9% of revenue during the six months ended June 30, 2025 compared to 24.4% during the similar period in 2024, primarily due to other fleet charges related to the accelerated disposal of certain fleet in our Americas reportable segment. Selling, general and administrative costs increased to 12.9% of revenue during the six months ended June 30, 2025, compared to 12.0% during the similar period in 2024, primarily due toincreased commissions and marketing costs. Vehicle interest costs decreased to 8.0% of revenue during the six months ended June 30, 2025 compared to 8.6% during the similar period in 2024, primarily due to decreased fleet levels and interest rates.

Current wording

Operating expenses were 48.9% of revenue during the nine months ended September 30, 2025 compared to 49.0% during the similar period in 2024. Vehicle depreciation and lease charges increased to 26.4% of revenue during the nine months ended September 30, 2025 compared to 24.0% during the similar period in 2024, primarily due to other fleet charges related to the accelerated disposal of certain fleet in our Americas reportable segment. Selling, general and administrative costs increased to 12.5% of revenue during the nine months ended September 30, 2025 compared to 11.5% during the similar period in 2024, primarily due toincreased commissions, marketing and other general and administrative costs. Vehicle interest costs decreased to 7.6% of revenue during the nine months ended September 30, 2025 compared to 8.0% during the similar period in 2024, primarily due to decreased fleet levels and interest rates.

Previous wording

Following is a more detailed discussion of the results of each of our reportable segments and corporate and other, together with a reconciliation of net loss to Adjusted EBITDA:

Current wording

Following is a more detailed discussion of the results of each of our reportable segments and corporate and other, together with a reconciliation of net income (loss) to Adjusted EBITDA:

Previous wording

(d)Consists of $2 million reported within selling, general and administrative expenses for the six months ended June 30, 2025 and $11 million and $7 million reported within operating expenses for the six months ended June 30, 2025 and 2024, respectively.

Current wording

(d)Consists of $98 million of income reported within operating expenses and $2 million reported within selling, general and administrative expenses for the nine months ended September 30, 2025. Consists of $7 million reported within operating expenses for the nine months ended September 30, 2024.

Previous wording

Revenues decreased during the three months ended June 30, 2025 compared to the similar period in 2024, primarily due to a 2% decrease in revenue per day, excluding exchange rate effects, and a $1 million negative impact from currency exchange rate movements, offset by a 1% increase in volume.

Current wording

Revenues decreased during the nine months ended September 30, 2025 compared to the similar period in 2024, primarily due to a 3% decrease in revenue per day, excluding exchange rate effects, and a $7 million negative impact from currency exchange rate movements, partially offset by a 1% increase in volume.

Previous wording

Operating expenses increased to 52.9% of revenue during the six months ended June 30, 2025 compared to 51.4% during the similar period in 2024, primarily due to a decrease in revenue per day, excluding exchange rate effects, and sustained costs. Vehicle depreciation and lease charges increased to 33.2% of revenue during the six months ended June 30, 2025 compared to 24.0% during the similar period in 2024, primarily due to other fleet charges related to the accelerated disposal of certain fleet. Selling, general and administrative costs were approximately 10.9% of revenue during the six months ended June 30, 2025 compared to 9.8% during the similar period in 2024, primarily due to increased commissions and marketing costs. Vehicle interest costs decreased to 8.8% of revenue during the six months ended June 30, 2025 compared to 9.4% during the similar period in 2024, primarily due to decreased fleet levels and interest rates.

Current wording

Operating expenses were 49.1% of revenue during the nine months ended September 30, 2025 compared to 49.3% during the similar period in 2024. Vehicle depreciation and lease charges increased to 27.9% of revenue during the nine months ended September 30, 2025 compared to 23.7% during the similar period in 2024, primarily due to other fleet charges related to the accelerated disposal of certain fleet. Selling, general and administrative costs increased to 10.7% of revenue during the nine months ended September 30, 2025 compared to 9.5% during the similar period in 2024, primarily due to increased commissions and marketing costs. Vehicle interest costs were 8.5% of revenue during the nine months ended September 30, 2025 compared to 8.7% during the similar period in 2024.

Previous wording

Adjusted EBITDA decreased during the six months ended June 30, 2025 compared to the similar period in 2024, primarily due to decreased revenue per day and other fleet charges related to the accelerated disposal of certain fleet, partially offset by approximately $1 million positive impact from currency exchange rate movements.

Current wording

Adjusted EBITDA decreased during the nine months ended September 30, 2025 compared to the similar period in 2024, primarily due to decreased revenue per day, excluding exchange rate effects, and other fleet charges related to the accelerated disposal of certain fleet.

Previous wording

Revenues increased during the three months ended June 30, 2025, compared to the similar period in 2024, primarily due to a 3% increase in revenue per day, excluding exchange rate effects, and a $25 million positive impact from currency exchange rate movements, partially offset by a 4% decrease in volume.

Current wording

Revenues increased during the nine months ended September 30, 2025 compared to the similar period in 2024, primarily due to a 3% increase in revenue per day, excluding exchange rate effects, and a $45 million positive impact from currency exchange rate movements, partially offset by a 3% decrease in volume.

Previous wording

Operating expenses decreased to 46.7% of revenue during the three months ended June 30, 2025 compared to 48.0% during the similar period in 2024, primarily due to an increase in revenue per day, excluding exchange rate effects, offset by sustained costs. Vehicle depreciation and lease charges decreased to 21.4% of revenue during the three months ended June 30, 2025 compared to 25.2% during the similar period in 2024, primarily due to decreased per-unit fleet costs, excluding exchange rate effects, driven by decreased fleet levels, partially offset by a decrease in the gain on sale of vehicles. Selling, general and administrative costs decreased to 15.5% of revenue during the three months ended June 30, 2025 compared to 15.8% during the similar period in 2024 primarily due to decreased commissions, partially offset by an increase in marketing costs and other selling, general and administrative costs. Vehicle interest costs decreased to 4.9% of revenue during the three months ended June 30, 2025 compared to 5.5% during the similar period in 2024, primarily due to decreased fleet levels and interest rates.

Current wording

Operating expenses decreased to 46.0% of revenue during the nine months ended September 30, 2025 compared to 46.4% during the similar period in 2024, primarily due to an increase in revenue per day, excluding exchange rate effects, partially offset by a decrease in volume. Vehicle depreciation and lease charges decreased to 21.3% of revenue during the nine months ended September 30, 2025 compared to 24.8% during the similar period in 2024, primarily due to decreased per-unit fleet costs, excluding exchange rate effects, driven by decreased fleet levels. Selling, general and administrative costs were 15.3% of revenue during the nine months ended September 30, 2025 compared to 15.5% during the similar period in 2024. Vehicle interest costs decreased to 4.9% of revenue during the nine months ended September 30, 2025 compared to 5.6% during the similar period in 2024, primarily due to decreased fleet levels and interest rates.

Previous wording

The increase in total liabilities exclusive of liabilities under vehicle programs is primarily due to the increase in corporate indebtedness from the issuance of Senior Notes due June 2032. See “Liquidity and Capital Resources,” and Note 10 – Long-term Corporate Debt and Borrowing Arrangements to our Condensed Consolidated Financial Statements. The increases in both assets under vehicle programs and liabilities under vehicle programs is primarily due to the increase in the cost of our rental fleet. The decrease in total stockholders’ equity is primarily due to our net loss.

Current wording

The increase in total assets exclusive of assets under vehicle programs is primarily due to the remeasurement of our deferred income taxes due to the enactment of the One Big Beautiful Bill Act. The increase in total liabilities exclusive of liabilities under vehicle programs is primarily due to the increase in corporate indebtedness from the issuance of Senior Notes due June 2032. See “Liquidity and Capital Resources,” and Note 10 – Long-term Corporate Debt and Borrowing Arrangements to our Condensed Consolidated Financial Statements. The increases in both assets under vehicle programs and liabilities under vehicle programs is primarily due to the increase in the cost of our rental fleet and, to a lesser extent, the remeasurement of our deferred income tax liability due to the enactment of the One Big Beautiful Bill Act. The decrease in total stockholders’ equity is primarily due to our net loss.

Previous wording

In April 2025, our Avis Budget Rental Car Funding (AESOP) LLC subsidiary amended and extended its asset-backed variable-funding financing facilities to increase its capacity. The proceeds from these borrowings were used to repay maturing vehicle-backed debt and the acquisition of rental cars in the United States.

Current wording

In April 2025, our Avis Budget Rental Car Funding (AESOP) LLC subsidiary amended and restated its asset-backed variable-funding financing facilities. The proceeds from these borrowings were used to repay maturing vehicle-backed debt and the acquisition of rental cars in the United States.

Previous wording

During 2025, our Avis Budget Rental Car Funding (AESOP) LLC subsidiary issued approximately $1,008 million of asset-backed notes with expected final payment dates ranging from August 2027 to August 2030 and a weighted average interest rate of 5.95%. The proceeds from these borrowings were used to fund the repayment of maturing vehicle-backed debt and the acquisition of rental cars in the United States.

Current wording

During 2025, our Avis Budget Rental Car Funding (AESOP) LLC subsidiary issued approximately $1,708 million of asset-backed notes with expected final payment dates ranging from August 2027 to February 2031 and a weighted average interest rate of 5.33%. The proceeds from these borrowings were used to fund the repayment of maturing vehicle-backed debt and the acquisition of rental cars in the United States.

Previous wording

Our Board of Directors has authorized the repurchase of up to approximately $8.1 billion of our common stock under a plan originally approved in 2013 and subsequently expanded most recently in February 2023 (the “Stock Repurchase Program”). Our stock repurchases may occur through open market purchases, privately negotiated transactions or trading plans pursuant to Rule 10b5-1 of the Securities Exchange Act of 1934, as amended. The amount and timing of specific repurchases are subject to market conditions, applicable legal requirements, restricted payment capacity under our debt instruments and other factors. The Stock Repurchase Program may be suspended, modified or discontinued at any time without prior notice. The Stock Repurchase Program has no set expiration or termination date. During the six months ended June 30, 2025, we did not repurchase shares of common stock under the Stock Repurchase Program. As of June 30, 2025, approximately $757 million of authorization remained available to repurchase common stock under the Stock Repurchase Program.

Current wording

Our Board of Directors has authorized the repurchase of up to approximately $8.1 billion of our common stock under a plan originally approved in 2013 and subsequently expanded most recently in February 2023 (the “Stock Repurchase Program”). Our stock repurchases may occur through open market purchases, privately negotiated transactions or trading plans pursuant to Rule 10b5-1 of the Securities Exchange Act of 1934, as amended. The amount and timing of specific repurchases are subject to market conditions, applicable legal requirements, restricted payment capacity under our debt instruments and other factors. The Stock Repurchase Program may be suspended, modified or discontinued at any time without prior notice. The Stock Repurchase Program has no set expiration or termination date. During the nine months ended September 30, 2025, we did not repurchase shares of common stock under the Stock Repurchase Program. As of September 30, 2025, approximately $757 million of authorization remained available to repurchase common stock under the Stock Repurchase Program.

Previous wording

Cash provided by operating activities during the six months ended June 30, 2025 is consistent with the similar period in 2024.

Current wording

Cash provided by operating activities during the nine months ended September 30, 2025 increased when compared with the similar period in 2024, primarily due to changes in the components of working capital.

Previous wording

Cash used in investing activities during the six months ended June 30, 2025 increased when compared with the similar period in 2024, primarily due to the increase in our investment in vehicles.

Current wording

Cash used in investing activities during the nine months ended September 30, 2025 increased when compared with the similar period in 2024, primarily due to the increase in our investment in vehicles, partially offset by the increase in proceeds received on vehicle sales.

Previous wording

Cash provided by financing activities during the six months ended June 30, 2025 increased when compared with the similar period in 2024, primarily due to the increase in our borrowings under vehicle programs.

Current wording

Cash provided by financing activities during the nine months ended September 30, 2025 increased when compared with the similar period in 2024, primarily due to the increase in our net borrowings under vehicle programs, partially offset by the increase in our payments on corporate borrowings.

Previous wording

As of June 30, 2025, we had approximately $26.0 billion of indebtedness, including corporate indebtedness of approximately $6.1 billion and debt under vehicle programs of approximately $19.9 billion. For information regarding our debt and borrowing arrangements, see Note 1 – Basis of Presentation, Note 10 – Long-term Corporate Debt and Borrowing Arrangements and Note 11 – Debt Under Vehicle Programs and Borrowing Arrangements to our Condensed Consolidated Financial Statements.

Current wording

As of September 30, 2025, we had approximately $25.3 billion of indebtedness, including corporate indebtedness of approximately $6.0 billion and debt under vehicle programs of approximately $19.3 billion. For information regarding our debt and borrowing arrangements, see Note 1 – Basis of Presentation, Note 10 – Long-term Corporate Debt and Borrowing Arrangements and Note 11 – Debt Under Vehicle Programs and Borrowing Arrangements to our Condensed Consolidated Financial Statements.

Previous wording

As of June 30, 2025, we had $541 million of available cash and cash equivalents and access to $403 million of available borrowing capacity under our revolving credit facility, providing us with access to approximately $944 million of total liquidity.

Current wording

As of September 30, 2025, we had $564 million of available cash and cash equivalents and access to $429 million of available borrowing capacity under our revolving credit facility, providing us with access to approximately $993 million of total liquidity.

Previous wording

Our future contractual obligations have not changed significantly from the amounts reported within our 2024 Form 10-K with the exception of our commitment to purchase vehicles, which decreased by approximately $4.0 billion from December 31, 2024, to approximately $2.3 billion as of June 30, 2025 due to existing fleet levels. Changes to our obligations related to corporate indebtedness and debt under vehicle programs are presented above within the section titled “Liquidity and Capital Resources—Debt and Financing Arrangements” and also within Note 10 – Long-term Corporate Debt and Borrowing Arrangements and Note 11 – Debt Under Vehicle Programs and Borrowing Arrangements to our Condensed Consolidated Financial Statements.

Current wording

Our future contractual obligations have not changed significantly from the amounts reported within our 2024 Form 10-K with the exception of our commitment to purchase vehicles, which decreased by approximately $2.1 billion from December 31, 2024, to approximately $4.2 billion as of September 30, 2025 due to existing fleet levels. Changes to our obligations related to corporate indebtedness and debt under vehicle programs are presented above within the section titled “Liquidity and Capital Resources—Debt and Financing Arrangements” and also within Note 10 – Long-term Corporate Debt and Borrowing Arrangements and Note 11 – Debt Under Vehicle Programs and Borrowing Arrangements to our Condensed Consolidated Financial Statements.