HERTZ CORP
For the period ended Sep 30, 2025. Filed Nov 4, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 4, 2025
HTZ$1.64-8.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-07.
0001657853-25-000094
ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-04.
0001657853-25-000134
ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 234 previous paragraphs and 268 current paragraphs.
163 unchanged; 55 reworded; 47 added; 14 removed; 2 previous and 3 current paragraphs rearranged.
Tables are not compared: 22 previous and 25 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (47)
Current report
On July 4, 2025, the OBBBA was enacted, reinstating full bonus depreciation, allowing interest deductions based on EBITDA, expensing R&D costs and modifying certain international provisions of the Internal Revenue Code. As a result, we expect federal cash taxes to decrease in the near term, assuming fleet investments are maintained or increased from current levels. These provisions are also expected to increase deferred tax assets, such as net operating losses, and may necessitate additional valuation allowances depending on future taxable income and loss trends.
Current report
Non-vehicle depreciation and amortization decreased $5 million in the third quarter of 2025 compared to the same period in 2024 due primarily to certain asset retirements in 2024 resulting in an increase in assets that were fully depreciated in 2025 in our Americas RAC segment.
Current report
SG&A increased $51 million in the third quarter of 2025 compared to the same period in 2024 driven primarily by an increase of $23 million in our International RAC segment, an increase of $15 million in our corporate operations and an increase of $13 million in our Americas RAC segment. The increase in SG&A was due primarily to higher personnel costs, expenses incurred related to an unfavorable litigation ruling in the third quarter of 2025 in our International RAC segment and increased advertising spend in our Americas RAC segment.
Current report
Vehicle interest expense, net increased $4 million in the third quarter of 2025 compared to the same period in 2024 due primarily to higher average rates due in part to the issuance of the HVF III 2025 Notes, partially offset by lower debt levels and lower market rates.
Current report
In the third quarter of 2025, we recognized a gain of $154 million related to the receipt of a legal settlement distribution in connection with our participation in a class action settlement, as disclosed in Note 13, "Contingencies and Off-Balance Sheet Commitments," in Part I, Item 1 of this Quarterly Report.
Current report
In the third quarter of 2025, we recognized additional expense of $4 million in our corporate operations related to an existing bankruptcy-related litigation reserve for interest that continues to accrue during each subsequent reporting period until resolved. Refer also to Note 13, "Contingencies and Off-Balance Sheet Commitments," in Part I, Item 1 of this Quarterly Report.
Current report
In the third quarter of 2024, we recognized an impairment charge of $1.0 billion associated with the Long-Lived Assets in our Americas RAC and International RAC segments, as disclosed in Note 4, "Long-Lived Assets Impairment," in Part I, Item 1 of this Quarterly Report.
Current report
Non-vehicle depreciation and amortization decreased $19 million in the nine months ended September 30, 2025 compared to the same period in 2024, resulting primarily from decreases of $10 million associated with our corporate operations and $8 million in our Americas RAC segment. The decrease in non-vehicle depreciation and amortization was due primarily to certain asset retirements in 2024 resulting in an increase in assets that were fully depreciated in 2025.
Current report
Vehicle interest expense, net increased $6 million in the nine months ended September 30, 2025 compared to the same period in 2024 due primarily to to higher average rates due in part to the issuance of the HVF III 2025 Notes, partially offset by lower debt levels and lower market rates.
Current report
In the nine months ended September 30, 2025, we recognized a gain of $154 million related to the receipt of a legal settlement distribution in connection with our participation in a class action settlement, as disclosed in Note 13, "Contingencies and Off-Balance Sheet Commitments," in Part I, Item 1 of this Quarterly Report.
Current report
In the nine months ended September 30, 2025, we recognized additional expense of $12 million in our corporate operations related to an existing bankruptcy-related litigation reserve for interest that continues to accrue during each subsequent reporting period until resolved. Refer also to Note 13, "Contingencies and Off-Balance Sheet Commitments," in Part I, Item 1 of this Quarterly Report.
Current report
In the nine months ended September 30, 2024, we recognized an impairment charge of $1.0 billion associated with the Long-Lived Assets in our Americas RAC and International RAC segments, as disclosed in Note 4, "Long-Lived Assets Impairment," in Part I, Item 1 of this Quarterly Report.
Current report
Non-vehicle depreciation and amortization decreased $5 million in the third quarter of 2025 compared to the same period in 2024 due primarily to certain asset retirements in 2024 resulting in an increase in assets that were fully depreciated in 2025.
Current report
SG&A for Americas RAC increased $13 million in the third quarter of 2025 compared to the same period in 2024 due primarily to higher personnel costs and increased advertising spend.
Current report
Americas RAC recognized a gain of $39 million in the third quarter of 2025 on the sale of certain non-vehicle capital assets, as disclosed in Note 3, "Divestitures," in Part I, Item 1 of this Quarterly Report. We expect to continue to evaluate and complete, when deemed appropriate, sales and lease backs of certain non-vehicle capital assets through the end of 2025.
Current report
Americas RAC recognized a gain of $154 million in the third quarter of 2025 related to the receipt of a legal settlement distribution in connection with our participation in a class action settlement, as disclosed in Note 13, "Contingencies and Off-Balance Sheet Commitments," in Part I, Item 1 of this Quarterly Report.
Current report
Americas RAC recognized an impairment charge of $865 million in the third quarter of 2024 associated with its Long-Lived Assets, of which $740 million and $125 million related to its revenue earning vehicles and ROU assets, respectively. Refer to Note 4, "Long-Lived Assets Impairment," in Part I, Item 1 of this Quarterly Report for further details.
Current report
DOE for Americas RAC decreased $199 million in the nine months ended September 30, 2025 compared to the same period in 2024 due primarily to lower volume.
Current report
Non-vehicle depreciation and amortization decreased $8 million in the nine months ended September 30, 2025 compared to the same period in 2024 due primarily to certain asset retirements in 2024 resulting in an increase in assets that were fully depreciated in 2025.
Current report
Vehicle interest expense for Americas RAC increased $17 million in the nine months ended September 30, 2025 compared to the same period in 2024 due primarily to higher average rates due in part to the issuance of the HVF III 2025 Notes, partially offset by lower market rates and lower debt levels.
Current report
Americas RAC recognized a gain of $128 million in the nine months ended September 30, 2025 on the sales of certain non-vehicle capital assets during the second and third quarters of 2025, as disclosed in Note 3, "Divestitures," in Part I, Item 1 of this Quarterly Report. We expect to continue to evaluate and complete, when deemed appropriate, sales and lease backs of certain non-vehicle capital assets through the end of 2025.
Current report
Americas RAC recognized a gain of $154 million in the nine months ended September 30, 2025 related to the receipt of a legal settlement distribution in connection with our participation in a class action settlement, as disclosed in Note 13, "Contingencies and Off-Balance Sheet Commitments," in Part I, Item 1 of this Quarterly Report.
Current report
Americas RAC recognized an impairment charge of $865 million in the nine months ended September 30, 2024 associated with its Long-Lived Assets, of which $740 million and $125 million related to its revenue earning vehicles and ROU assets, respectively. Refer to Note 4, "Long-Lived Assets Impairment," in Part I, Item 1 of this Quarterly Report for further details.
Current report
Total revenues for International RAC increased $54 million in the third quarter of 2025 compared to the same period in 2024 due to higher volume and higher pricing. Transactions Days increased across most customer channels. Total RPD increased across our leisure and ride share channels, partially offset with declines in our business channel. Total revenues for International RAC were also impacted by a favorable $23 million fx impact in the third quarter of 2025.
Current report
International RAC recognized an impairment charge of $183 million in the third quarter of 2024 associated with its Long-Lived Assets, as disclosed in Note 4, "Long-Lived Assets Impairment," in Part I, Item 1 of this Quarterly Report.
Current report
Total revenues for International RAC increased $58 million in the nine months ended September 30, 2025 compared to the same period in 2024, due primarily to higher volume. Transactions Days increased across most customer channels. Total revenues for International RAC were also impacted by a favorable $26 million fx impact in the nine months ended September 30, 2025.
Current report
SG&A for International RAC increased $24 million in the nine months ended September 30, 2025 compared to the same period in 2024 due primarily to higher intercompany royalty assessment fees paid to our corporate operations, expenses incurred related to an unfavorable litigation ruling in the third quarter of 2025 and increased personnel costs, partially offset by decreased restructuring related charges. SG&A for International RAC was also impacted by an unfavorable $4 million fx impact in the nine months ended September 30, 2025.
Current report
Vehicle interest expense for International RAC decreased $11 million in the nine months ended September 30, 2025 compared to the same period in 2024 due primarily to lower debt levels and lower market rates.
Current report
International RAC recognized an impairment charge of $183 million in the nine months ended September 30, 2024 associated with its Long-Lived Assets, as disclosed in Note 4, "Long-Lived Assets Impairment," in Part I, Item 1 of this Quarterly Report.
Current report
(6)Represents the gain related to the receipt of a legal settlement distribution in September 2025 in connection with the Company’s participation in a class action settlement. See Note 13, "Contingencies and Off-Balance Sheet Commitments," in Part I, Item 1 of this Quarterly Report.
Current report
(7)Represents an increase to an existing bankruptcy-related litigation reserve initially recorded in September 2024, including interest which continues to accrue during each subsequent reporting period. See Note 13, "Contingencies and Off-Balance Sheet Commitments," in Part I, Item 1 of this Quarterly Report.
Current report
(8)Represents Long-Lived Assets impairment charges recognized in the third quarter of 2024. See Note 4, "Long-Lived Assets Impairment," in Part I, Item 1 of this Quarterly Report.
Current report
(1)Based on December 31, 2024 foreign currency exchange rates for all periods presented.
Current report
(1)Reflects one month of depreciation at post-impairment rates for the three and nine months ended September 30, 2024. See Note 4, "Long-Lived Assets Impairment," in Part I, Item 1 of this Quarterly Report.
Current report
(2)Based on December 31, 2024 foreign currency exchange rates for all periods presented.
Current report
(1) As of September 30, 2025, approximately $300 million of proceeds from the issuance of the Exchangeable Notes Due 2030, as disclosed in Note 6, "Debt," in Part I, Item 1 of this Quarterly Report, is anticipated to be used for the partial redemption of the Senior Notes Due 2026.
Current report
Exchangeable Notes Due 2029
Current report
Exchangeable Notes Due 2030
Current report
In September 2025, Hertz issued $425 million in aggregate principal amount of the Exchangeable Notes Due 2030, which are guaranteed by Hertz Holdings, Rental Car Intermediate Holdings, LLC and each of Hertz's existing and future, direct and indirect, U.S. subsidiaries that are guarantors under the First Lien Credit Agreement. The Exchangeable Notes Due 2030 bear interest at a rate of 5.500% per year, payable semi-annually in arrears on April 1 and October 1 of each year, beginning on April 1, 2026. The Exchangeable Notes Due 2030 mature on October 1, 2030, unless earlier repurchased, redeemed or exchanged, in accordance with their terms prior to the Maturity Date.
Current report
Prior to July 1, 2030, the Exchangeable Notes Due 2030 will be exchangeable only upon satisfaction of certain conditions and during certain periods. Thereafter, the Exchangeable Notes Due 2030 will be exchangeable at any time until the close of business on the second scheduled trading day immediately preceding the Maturity Date. The Exchangeable Notes Due 2030 will be exchangeable by holders into shares of Hertz Global common stock, cash or a combination of common stock and cash, at Hertz's election, at an initial exchange rate of 108.2808 shares per $1,000 principal amount of Exchangeable Notes Due 2030, corresponding to an initial exchange price of $9.24 per share of Hertz Global common stock, subject to adjustment upon the occurrence of certain events.
Showing the first 40 of 47 passages. Open the source sections for the rest.
Removed paragraphs (14)
Previous report
On July 4, 2025, the OBBBA was enacted into law, bringing major changes to the U.S. tax code, beginning in 2025. Key provisions of the OBBBA include the extension of expiring Tax Cuts and Jobs Act provisions; restoration of 100% bonus depreciation for qualified property, including vehicle purchases; full write-off of R&D costs and changes to interest deductibility rules. The OBBBA also eliminates EV tax credits for EVs purchased after September 30, 2025. We are currently assessing the impact of the OBBBA on our financial statements.
Previous report
Non-vehicle depreciation and amortization decreased $12 million in the second quarter of 2025 compared to the same period in 2024, resulting primarily from a decrease of $8 million associated with our corporate operations. The decrease in non-vehicle depreciation and amortization in our corporate operations was due primarily to certain asset retirements in 2024 and first quarter of 2025 and an increase in assets that were fully depreciated.
Previous report
SG&A increased $3 million in the second quarter of 2025 compared to the same period in 2024 driven primarily by an increase of $11 million in our International RAC segment, partially offset by a decrease of $5 million and $3 million associated with our Americas RAC segment and corporate operations, respectively. SG&A in our International RAC segment increased due primarily to higher intercompany royalty assessment fees paid to our corporate operations. SG&A in our Americas RAC segment decreased due primarily to lower advertising spend, partially offset by higher personnel charges. The decrease in SG&A associated with our corporate operations was due primarily to lower restructuring related charges and higher intercompany royalty assessment fees received from our International RAC segment, partially offset by higher personnel costs and increased professional fees.
Previous report
Vehicle interest expense, net was comparable in the second quarter of 2025 compared to the same period in 2024.
Previous report
Non-vehicle depreciation and amortization decreased $14 million in the first half of 2025 compared to the same period in 2024, resulting primarily from a decrease of $9 million associated with our corporate operations. The decrease in non-vehicle depreciation and amortization in our corporate operations was due primarily to certain asset retirements in 2024 and first quarter of 2025 and an increase in assets that were fully depreciated.
Previous report
Vehicle interest expense, net was comparable in the first half of 2025 compared to the same period in 2024.
Previous report
SG&A for Americas RAC decreased $5 million in the second quarter of 2025 compared to the same period in 2024 due primarily to lower advertising spend, partially offset by higher personnel costs.
Previous report
Vehicle interest expense for Americas RAC increased $7 million in the second quarter of 2025 compared to the same period in 2024 due primarily to higher average rates due in part to the issuance of the HVF III 2025 Notes, partially offset by lower debt levels and lower market rates.
Previous report
DOE for Americas RAC decreased $153 million in the first half of 2025 compared to the same period in 2024 due primarily to lower volume.
Previous report
SG&A for Americas RAC decreased $16 million in the first half of 2025 compared to the same period in 2024 due primarily to lower restructuring related charges and decreased advertising spend, partially offset by increased professional fees and higher personnel costs.
Previous report
Vehicle interest expense for Americas RAC increased $7 million in the first half of 2025 compared to the same period in 2024 due primarily to higher average rates due in part to the issuance of the HVF III 2025 Notes, partially offset by lower debt levels and lower market rates.
Previous report
Total revenues for International RAC increased $22 million in the second quarter of 2025 compared to the same period in 2024 due primarily to a favorable $14 million fx impact in the second quarter of 2025.
Previous report
Total revenues for International RAC increased $3 million in the first half of 2025 compared to the same period in 2024, due primarily to a favorable $3 million fx impact in first half of 2025.
Previous report
Exchangeable Notes
Reworded paragraphs (55)
Previous wording
Our revenues are primarily derived from rental and related charges and consist of worldwide vehicle rental revenues from all company-operated vehicle rental operations and charges to customers for the reimbursement of costs incurred relating to airport concession fees and vehicle license fees, the fueling and electric charging of vehicles and revenues associated with value-added services, including the sale of loss or collision damage waivers, theft protection, liability and personal accident/effects insurance coverage, premium emergency roadside service and other products and fees. Also included are collections from customers for vehicle damages, ancillary revenues associated with retail vehicle sales and certain royalty fees from our franchisees (such fees are approximately 2% of total revenues each period).
Current wording
Our revenues are primarily derived from rental and related charges and consist of worldwide vehicle rental revenues from all company-operated vehicle rental operations and charges to customers for the reimbursement of costs incurred relating to airport concession fees and vehicle license fees, the fueling and electric charging of vehicles and revenues associated with value-added services, including the sale of loss or collision damage waivers, theft protection, liability and personal accident/effects insurance coverage, premium emergency roadside service and other products and fees. Also included are collections from customers for vehicle damages, ancillary revenues associated with retail vehicle sales and certain royalty fees from our franchisees (such fees are approximately 2% to 3% of total revenues each period).
Previous wording
Three and Six Months Ended June 30, 2025 Operating Overview
Current wording
Three and Nine Months Ended September 30, 2025 Operating Overview
Previous wording
The charts below provide the period-over-period change for several key factors influencing our results for the three and six months ended June 30, 2025 and 2024.
Current wording
The charts below provide the period-over-period change for several key factors influencing our results for the three and nine months ended September 30, 2025 and 2024.
Previous wording
Total revenues decreased $167 million in the second quarter of 2025 compared to the same period in 2024, resulting from a decrease of $190 million in our Americas RAC segment, partially offset by an increase of $22 million in our International RAC segment. The decrease in total revenues was due primarily to lower pricing and lower volume.
Current wording
Total revenues decreased $98 million in the third quarter of 2025 compared to the same period in 2024, resulting from a decrease of $152 million in our Americas RAC segment, partially offset by an increase of $54 million in our International RAC segment. The decrease in total revenues was due primarily to lower pricing in our Americas RAC segment.
Previous wording
Depreciation of revenue earning vehicles and lease charges, net decreased $620 million in the second quarter of 2025 compared to the same period in 2024, of which $580 million and $40 million were attributed to our Americas RAC and International RAC segments, respectively. Depreciation of revenue earning vehicles and lease charges, net decreased due primarily to (i) impacts from our fleet refresh reducing the capital cost of newly acquired vehicles and strengthening of residual values at the expected time of disposal resulting from market improvements, (ii) per unit gains recognized in the second quarter of 2025 compared to per unit losses recognized in the same period in
Current wording
Depreciation of revenue earning vehicles and lease charges, net decreased $480 million in the third quarter of 2025 compared to the same period in 2024, of which $467 million and $14 million were attributed to our Americas RAC and International RAC segments, respectively. Depreciation of revenue earning vehicles and lease charges, net decreased due primarily to (i) impacts from our fleet refresh reducing the capital cost of newly acquired vehicles and strengthening of residual values at the expected time of disposal resulting from market improvements, (ii) per unit gains recognized in the third quarter of 2025 compared to per unit losses recognized in the same period in 2024 resulting in part from increased dispositions of vehicles through a more optimized disposition channel mix and (iii) lower Average Vehicles.
Previous wording
DOE decreased $46 million in the second quarter of 2025 compared to the same period in 2024, resulting from a decrease of $67 million in our Americas RAC segment, partially offset by an increase of $20 million in our International RAC segment. DOE in our Americas RAC segment decreased due primarily to lower volume, decreased collision and damage charges and lower maintenance costs, partially offset by increased self-insurance liabilities as a result of adverse experience and case development. DOE in our International RAC segment increased due primarily to higher volume and an unfavorable fx impact in the second quarter of 2025.
Current wording
DOE decreased $16 million in the third quarter of 2025 compared to the same period in 2024, resulting from a decrease of $47 million in our Americas RAC segment, partially offset by an increase of $27 million in our International RAC segment. The decrease in DOE was due primarily to lower volume in our Americas RAC segment, partially offset by higher volume and an unfavorable $12 million fx impact in the third quarter of 2025 in our International RAC segment.
Previous wording
Non-vehicle interest expense, net increased $196 million in the first half of 2025 compared to the same period in 2024 due primarily to unrealized losses related to changes in the fair value of the Exchange Features, higher debt levels and higher average interest rates.
Current wording
Non-vehicle interest expense, net decreased $4 million in the third quarter of 2025 compared to the same period in 2024 due primarily to an unrealized gain related to changes in the fair value of the Exchange Features 2029, partially offset by higher debt levels and higher average interest rates.
Previous wording
In the first half of 2025, we recognized a gain of $89 million on the sales of certain non-vehicle capital assets during the second quarter of 2025 in our Americas RAC segment, as disclosed in Note 3, "Divestitures," in Part I, Item 1 of this Quarterly Report.
Current wording
In the third quarter of 2025, we recognized a gain of $39 million on the sale of certain non-vehicle capital assets in our Americas RAC segment, as disclosed in Note 3, "Divestitures," in Part I, Item 1 of this Quarterly Report. We expect to continue to evaluate and complete, when deemed appropriate, sales and lease backs of certain non-vehicle capital assets through the end of 2025.
Previous wording
In the second quarter of 2025, we recorded a tax benefit of $22 million, which resulted in an effective tax rate of 11%. In the second quarter of 2024, we recorded a tax provision of $391 million, which resulted in an effective tax rate of (61%). The change in taxes in the three months ended June 30, 2025 compared to the same period in 2024 was driven primarily by the establishment of valuation allowances on existing deferred tax assets in the second quarter of 2024 and the effects of fewer tax credits in 2025.
Current wording
In the third quarter of 2025, we recorded a tax provision of $50 million, which resulted in an effective tax rate of 21%. In the third quarter of 2024, we recorded a tax benefit of $287 million, which resulted in an effective tax rate of 17%. The change in taxes in the three months ended September 30, 2025 compared to the same period in 2024 was driven primarily by higher pretax income offset by lower valuation allowances on deferred tax assets.
Previous wording
Total revenues decreased $435 million in the first half of 2025 compared to the same period in 2024, resulting primarily from a decrease of $439 million in our Americas RAC segment. The decrease in total revenues was due primarily to lower volume and lower pricing.
Current wording
Total revenues decreased $533 million in the nine months ended September 30, 2025 compared to the same period in 2024, resulting primarily from a decrease of $590 million in our Americas RAC segment, partially offset by an increase of $58 million in our International RAC segment. The decrease in total revenues was due primarily to lower volume and lower pricing, primarily in our Americas RAC segment.
Previous wording
Depreciation of revenue earning vehicles and lease charges, net decreased $1.1 billion in the first half of 2025 compared to the same period in 2024, of which $994 million is attributable to our Americas RAC segment. Depreciation of revenue earning vehicles and lease charges, net decreased due primarily to (i) impacts from our fleet refresh reducing the capital cost of newly acquired vehicles and strengthening of residual values at the expected time of disposal resulting from market improvements, (ii) per unit gains recognized on increased vehicle dispositions in the first half of 2025 compared to per unit losses recognized in the same period in 2024 resulting in part from increased dispositions of older vehicles through a more optimized disposition channel mix, (iii) write-downs on the carrying values of the EVs classified as held for sale in the first half of 2024 and (iv) lower Average Vehicles.
Current wording
Depreciation of revenue earning vehicles and lease charges, net decreased $1.5 billion in the nine months ended September 30, 2025 compared to the same period in 2024, which primarily is attributable to our Americas RAC segment. Depreciation of revenue earning vehicles and lease charges, net decreased due primarily to (i) impacts from our fleet refresh reducing the capital cost of newly acquired vehicles and strengthening of residual values at the expected time of disposal resulting from market improvements, (ii) per unit gains recognized on increased vehicle dispositions in the nine months ended September 30, 2025 compared to per unit losses recognized in the same period in 2024 resulting in part from increased dispositions of vehicles through a more optimized disposition channel mix, (iii) lower Average Vehicles and (iv) write-downs on the carrying values of the EVs classified as held for sale in the first half of 2024.
Previous wording
DOE decreased $138 million in the first half of 2025 compared to the same period in 2024 with a decrease of $153 million in our Americas RAC segment, partially offset by an increase of $10 million in our International RAC segment. The decrease in DOE was due primarily to lower volume.
Current wording
DOE decreased $154 million in the nine months ended September 30, 2025 compared to the same period in 2024 with a decrease of $199 million in our Americas RAC segment, partially offset by an increase of $37 million in our International RAC segment. The decrease in DOE was due primarily to lower volume in our Americas RAC segment, partially offset by higher volume and an unfavorable $13 million fx impact in the nine months ended September 30, 2025 in our International RAC segment.
Previous wording
SG&A increased $60 million in the first half of 2025 compared to the same period in 2024 driven primarily by an increase of $75 million associated with our corporate operations, partially offset by a decrease of $16 million in our Americas RAC segment. The increase in SG&A associated with our corporate operations was due primarily to a non-cash stock-based compensation gain related to forfeitures of former CEO awards in March 2024, increased professional fees and higher personnel costs, partially offset by lower restructuring related costs and increased intercompany royalty assessment fees received from our International RAC segment. SG&A in our Americas RAC segment decreased due primarily to lower restructuring related charges and decreased advertising spend, partially offset by increased professional fees and higher personnel costs.
Current wording
SG&A increased $112 million in the nine months ended September 30, 2025 compared to the same period in 2024 driven primarily by an increase of $88 million associated with our corporate operations and an increase of $24 million in our International RAC segment. The increase in SG&A associated with our corporate operations was due primarily to a non-cash stock-based compensation gain related to forfeitures of former CEO awards in March 2024, higher personnel costs and increased professional fees, partially offset by lower restructuring related costs and increased intercompany royalty assessment fees received from our International RAC segment. SG&A in our International RAC segment increased due primarily to higher intercompany royalty assessment fees paid to our corporate operations, expenses incurred related to an unfavorable litigation ruling in the third quarter of 2025 and increased personnel costs, partially offset by decreased restructuring related charges.
Previous wording
Non-vehicle interest expense, net increased $144 million in the second quarter of 2025 compared to the same period in 2024 due primarily to unrealized losses related to changes in the fair value of the Exchange Features, higher debt levels and higher average interest rates.
Current wording
Non-vehicle interest expense, net increased $193 million in the nine months ended September 30, 2025 compared to the same period in 2024 due primarily to unrealized losses related to changes in the fair value of the Exchange Features 2029, higher average interest rates and higher debt levels.
Previous wording
In the second quarter of 2025, we recognized a gain of $89 million on the sales of certain non-vehicle capital assets in our Americas RAC segment, as disclosed in Note 3, "Divestitures," in Part I, Item 1 of this Quarterly Report.
Current wording
In the nine months ended September 30, 2025, we recognized a gain of $128 million on the sales of certain non-vehicle capital assets during the second and third quarters of 2025 in our Americas RAC segment, as disclosed in Note 3, "Divestitures," in Part I, Item 1 of this Quarterly Report. We expect to continue to evaluate and complete, when deemed appropriate, sales and lease backs of certain non-vehicle capital assets through the end of 2025.
Previous wording
In the first half of 2025, we recorded a tax benefit of $104 million, which resulted in an effective tax rate of 15%. In the first half of 2024, we recorded a tax benefit of $4 million, which resulted in an effective tax rate of 0%. The change in tax in the first half of 2025 compared to the same period in 2024 was driven primarily by lower valuation allowances and lower pre-tax losses.
Current wording
In the nine months ended September 30, 2025, we recorded a tax benefit of $54 million, which resulted in an effective tax rate of 11%. In the nine months ended September 30, 2024, we recorded a tax benefit of $291 million, which resulted in an effective tax rate of 10%. The change in tax in the nine months ended September 30, 2025 compared to the same period in 2024 was driven primarily by lower pretax loss and lower EV credits, offset with lower valuation allowances on deferred tax assets.
Previous wording
Hertz Global had losses of $115 million and $124 million from the change in fair value of Public Warrants that were incremental to Hertz for the second quarter and first half of 2025, respectively, included in Hertz Global's unaudited condensed consolidated statements of operations in Part I, Item 1 of this Quarterly Report.
Current wording
Hertz Global had losses of $6 million and $130 million from the change in fair value of Public Warrants that were incremental to Hertz for the third quarter and nine months ended September 30, 2025, respectively, included in Hertz Global's unaudited condensed consolidated statements of operations in Part I, Item 1 of this Quarterly Report.
Previous wording
Hertz Global had income of $165 million and $251 million from the change in fair value of Public Warrants that were incremental to Hertz for the second quarter and first half of 2024, respectively, included in Hertz Global's unaudited condensed consolidated statements of operations in Part I, Item 1 of this Quarterly Report.
Current wording
Hertz Global had income of $21 million and $272 million from the change in fair value of Public Warrants that were incremental to Hertz for the third quarter and the nine months ended September 30, 2024, respectively, included in Hertz Global's unaudited condensed consolidated statements of operations in Part I, Item 1 of this Quarterly Report.
Previous wording
Total Americas RAC revenues decreased $190 million in the second quarter of 2025 compared to the same period in 2024 due primarily to lower pricing and lower volume. Total RPD declined across most customer channels and Transaction Days declined primarily in our business channel, partially offset with increases in our leisure channel. Airport revenues comprised 69% of total revenues for the segment in the second quarter of 2025 compared to 70% in the same period in 2024.
Current wording
Total Americas RAC revenues decreased $152 million in the third quarter of 2025 compared to the same period in 2024 due primarily to lower pricing and lower volume. Total RPD declined across most customer channels and Transaction Days declined primarily in our business channel, partially offset with increases in our leisure channel. Airport revenues comprised 69% of total revenues for the segment in the third quarter of 2025 compared to 70% in the same period in 2024.
Previous wording
Depreciation of revenue earning vehicles and lease charges, net for Americas RAC decreased $580 million in the second quarter of 2025 compared to the same period in 2024 due primarily to (i) impacts from our fleet refresh reducing the capital cost of newly acquired vehicles and strengthening of residual values at the expected time of disposal resulting from market improvements, (ii) per unit gains recognized in the second quarter of 2025 compared to per unit losses recognized in the same period in 2024 resulting in part from increased dispositions of older vehicles through a more optimized disposition channel mix and (iii) lower Average Vehicles.
Current wording
Depreciation of revenue earning vehicles and lease charges, net for Americas RAC decreased $467 million in the third quarter of 2025 compared to the same period in 2024 due primarily to (i) impacts from our fleet refresh reducing the capital cost of newly acquired vehicles and strengthening of residual values at the expected time of disposal resulting from market improvements, (ii) lower Average Vehicles and (iii) per unit gains recognized in the third quarter of 2025 compared to per unit losses recognized in the same period in 2024 resulting in part from increased dispositions of vehicles through a more optimized disposition channel mix.
Previous wording
DOE for Americas RAC decreased $67 million in the second quarter of 2025 compared to the same period in 2024 due primarily to lower volume, decreased collision and damage charges and lower maintenance costs, partially offset by increased self-insurance liabilities as a result of adverse experience and case development.
Current wording
DOE for Americas RAC decreased $47 million in the third quarter of 2025 compared to the same period in 2024 due primarily to lower volume, reduced self-insurance liabilities as a result of adverse experience and case development and decreased collision and damage charges, partially offset by increased personnel costs and increased facility rent expense resulting in part from sale leaseback transactions beginning in the second quarter of 2025.
Previous wording
Vehicle interest expense for International RAC decreased $2 million in the second quarter of 2025 compared to the same period in 2024 due primarily to lower market rates and lower debt levels.
Current wording
Vehicle interest expense for Americas RAC increased $9 million in the third quarter of 2025 compared to the same period in 2024 due primarily to higher average rates due in part to the issuance of the HVF III 2025 Notes, partially offset by lower market rates and lower debt levels.
Previous wording
Total Americas RAC revenues decreased $439 million in the first half of 2025 compared to the same period in 2024 due primarily to lower volume and lower pricing. Total RPD and Transaction Days declined across most customer channels in the first half of 2025 compared to the same period in 2024. Airport revenues comprised 69% of total revenues for the segment in the first half of 2025 compared to 68% in the same period in 2024.
Current wording
Total Americas RAC revenues decreased $590 million in the nine months ended September 30, 2025 compared to the same period in 2024 due primarily to lower pricing and lower volume. Total RPD and Transaction Days declined across most customer channels in the nine months ended September 30, 2025 compared to the same period in 2024. Airport revenues comprised 69% of total revenues for the segment in the nine months ended September 30, 2025 and 2024.
Previous wording
Depreciation of revenue earning vehicles and lease charges, net for Americas RAC decreased $994 million in the first half of 2025 compared to the same period in 2024 due primarily to (i) impacts from our fleet refresh reducing the capital cost of newly acquired vehicles and strengthening of residual values at the expected time of disposal resulting from market improvements, (ii) per unit gains recognized on increased vehicle dispositions in the first half of 2025 compared to per unit losses recognized in the same period in 2024 resulting in part from increased dispositions of older vehicles through a more optimized disposition channel mix, (iii) write-downs on the carrying values of the EVs classified as held for sale in 2024 and (iv) lower Average Vehicles.
Current wording
Depreciation of revenue earning vehicles and lease charges, net for Americas RAC decreased $1.5 billion in the nine months ended September 30, 2025 compared to the same period in 2024 due primarily to (i) impacts from our fleet refresh reducing the capital cost of newly acquired vehicles and strengthening of residual values at the expected time of disposal resulting from market improvements, (ii) per unit gains recognized on increased vehicle dispositions in the nine months ended September 30, 2025 compared to per unit losses recognized in the same period in 2024 resulting in part from increased dispositions of vehicles through a more optimized disposition channel mix, (iii) lower Average Vehicles and (iv) write-downs on the carrying values of the EVs classified as held for sale in 2024.
Previous wording
SG&A for International RAC was comparable in the first half of 2025 to the same period in 2024 due primarily to higher intercompany royalty assessment fees paid to our corporate operations, partially offset by decreased restructuring related charges.
Current wording
SG&A for Americas RAC was comparable in the nine months ended September 30, 2025 to the same period in 2024 due primarily to higher personnel costs and increased professional fees, partially offset by lower restructuring related charges.
Previous wording
Depreciation of revenue earning vehicles and lease charges, net for International RAC decreased $60 million in the first half of 2025 compared to the same period in 2024 due primarily to (i) per unit gains recognized on vehicle dispositions in the first half of 2025 compared to per unit losses recognized in the same period in 2024 and (ii) improved fleet mix resulting from our rental fleet rotation initiatives.
Current wording
Depreciation of revenue earning vehicles and lease charges, net for International RAC in the third quarter of 2025 decreased $14 million compared to the same period in 2024 due primarily to (i) per unit gains recognized on vehicle dispositions in the third quarter of 2025 compared to per unit losses recognized in the same period in 2024.
Previous wording
DOE for International RAC increased $20 million in the second quarter of 2025 compared to the same period in 2024 due primarily to higher volume. DOE for International RAC was also impacted by an unfavorable $9 million fx impact in the second quarter of 2025.
Current wording
DOE for International RAC increased $27 million in the third quarter of 2025 compared to the same period in 2024 due primarily to higher volume. DOE for International RAC was also impacted by an unfavorable $12 million fx impact in the third quarter of 2025.
Previous wording
SG&A for International RAC in the second quarter of 2025 increased $11 million compared to the same period in 2024 due primarily to higher intercompany royalty assessment fees paid to our corporate operations.
Current wording
SG&A for International RAC in the third quarter of 2025 increased $23 million compared to the same period in 2024 due primarily to expenses incurred related to an unfavorable litigation ruling in the third quarter of 2025 and higher personnel costs. SG&A for International RAC was also impacted by an unfavorable $4 million fx impact in the third quarter of 2025.
Previous wording
Vehicle interest expense for International RAC decreased $5 million in the first half of 2025 compared to the same period in 2024 due primarily to lower market rates and lower debt levels.
Current wording
Vehicle interest expense for International RAC decreased $5 million in the third quarter of 2025 compared to the same period in 2024 due primarily to lower debt levels and lower market rates.
Previous wording
Depreciation of revenue earning vehicles and lease charges, net for International RAC in the second quarter of 2025 decreased $40 million compared to the same period in 2024 due primarily to (i) per unit gains recognized on vehicle dispositions in the second quarter of 2025 compared to per unit losses recognized in the same period in 2024 and (ii) improved fleet mix resulting from our rental fleet rotation initiatives.
Current wording
Depreciation of revenue earning vehicles and lease charges, net for International RAC decreased $73 million in the nine months ended September 30, 2025 compared to the same period in 2024 due primarily to (i) per unit gains recognized on vehicle dispositions in the nine months ended September 30, 2025 compared to per unit losses recognized in the same period in 2024 and (ii) improved fleet mix resulting from our rental fleet rotation initiatives.
Previous wording
DOE for International RAC increased $10 million in the first half of 2025 compared to the same period in 2024 due primarily to higher facility rent costs and increased volume.
Current wording
DOE for International RAC increased $37 million in the nine months ended September 30, 2025 compared to the same period in 2024 due primarily to higher volume, increased personnel costs and higher facility rent costs. DOE for International RAC was also impacted by an unfavorable $13 million fx impact in the nine months ended September 30, 2025.
Previous wording
(1)In 2025, excludes gains (losses) related to the fair value of the Exchange Features, which are included in footnote 4 below.
Current wording
(1)In 2025, excludes gains (losses) related to the fair value of the Exchange Features 2029 and the Exchange Feature 2030, which are included in footnote 4 below.
Previous wording
(4)Represents unrealized (gains) losses on derivative financial instruments. In 2025, also includes gains (losses) related to the fair value of the Exchange Features. See Note 10, "Financial Instruments," in Part I, Item 1 of this Quarterly Report.
Current wording
(4)Represents unrealized (gains) losses on derivative financial instruments. In 2025, also includes gains (losses) related to the fair value of the Exchange Features 2029 and the Exchange Feature 2030. See Note 11, "Financial Instruments," in Part I, Item 1 of this Quarterly Report.
Previous wording
(6)Represents the gain recognized on the sales of certain non-vehicle capital assets sold in June 2025. See Note 3, "Divestitures," in Part I, Item 1 of this Quarterly Report.
Current wording
(5)Represents the gains recognized on the sales of certain non-vehicle capital assets sold in June and July 2025. See Note 3, "Divestitures," in Part I, Item 1 of this Quarterly Report.
Previous wording
(5)Represents former CEO awards forfeited in March 2024. See Note 9, "Stock-Based Compensation," in Part I, Item 1 of this Quarterly Report.
Current wording
(9)Represents former CEO awards forfeited in March 2024. See Note 10, "Stock-Based Compensation," in Part I, Item 1 of this Quarterly Report.
Previous wording
(7)Represents miscellaneous items. For the three months ended June 30, 2025, primarily includes certain litigation charges, certain IT-related charges and cloud computing costs. For the three months ended June 30, 2024, primarily includes certain IT-related charges, cloud computing costs and certain storm-related damages. For the six months ended June 30, 2025, primarily includes certain litigation charges, certain IT-related charges, cloud computing costs and certain concession-related adjustments. For the six months ended June 30, 2024, primarily includes certain IT-related charges, cloud computing costs and certain storm-related damages, partially offset by certain litigation settlements.
Current wording
(10)Represents miscellaneous items. For the three months ended September 30, 2025, primarily includes an unfavorable litigation ruling, partially offset by certain litigation adjustments. For the three months ended September 30, 2024, primarily includes certain IT-related charges, cloud computing costs and certain storm-related damages, partially offset by a loss recovery settlement. For the nine months ended September 30, 2025, primarily includes certain IT-related charges, an unfavorable litigation ruling, cloud computing costs, certain concession-related adjustments and certain litigation charges and adjustments. For the nine months ended September 30, 2024, primarily includes certain IT-related charges, cloud computing costs and certain storm-related damages, partially offset by certain litigation settlements and a loss recovery settlement.
Previous wording
(8)Represents the change in fair value during the reporting period for Hertz Global's outstanding Public Warrants.
Current wording
(11)Represents the change in fair value during the reporting period for Hertz Global's outstanding Public Warrants.
Previous wording
As of June 30, 2025, we had $503 million of cash and cash equivalents and $626 million of restricted cash and cash equivalents. As of June 30, 2025, $231 million of cash and cash equivalents and $65 million of restricted cash and cash equivalents were held by our subsidiaries outside of the U.S. We continue to assert no permanent reinvestment of foreign earnings that give rise to excess cash, provided such cash can be remitted in a tax efficient manner.
Current wording
As of September 30, 2025, we had $1.1 billion of cash and cash equivalents and $454 million of restricted cash and cash equivalents. As of September 30, 2025, $240 million of cash and cash equivalents and $90 million of restricted cash and cash equivalents were held by our subsidiaries outside of the U.S. We continue to assert no permanent reinvestment of foreign earnings that give rise to excess cash, provided such cash can be remitted in a tax efficient manner.
Previous wording
As of June 30, 2025 and December 31, 2024, Hertz had cash and cash equivalents of $503 million and $591 million, respectively, and restricted cash and cash equivalents of $626 million and $541 million, respectively. The following table summarizes the net change in cash and cash equivalents and restricted cash and cash equivalents for the periods shown:
Current wording
As of September 30, 2025 and December 31, 2024, Hertz had cash and cash equivalents of $1.1 billion and $591 million, respectively, and restricted cash and cash equivalents of $454 million and $541 million, respectively. The following table summarizes the net change in cash and cash equivalents and restricted cash and cash equivalents for the periods shown:
Previous wording
During the first half of 2025, cash flows from operating activities decreased $321 million period over period due primarily to $426 million change in net income, as adjusted for non-cash and non-operating items, partially offset by a $105 million change in working capital accounts. Cash flows from working capital accounts increased due primarily to a reduction in value added tax ("VAT") receivables due primarily to a VAT refund received in 2025, partially offset by a decrease in non-vehicle payables due to timing.
Current wording
During the nine months ended September 30, 2025, cash flows from operating activities decreased $378 million period over period due primarily to a $133 million change in net income, as adjusted for non-cash and non-operating items and a $245 million change in working capital accounts. Cash flows from working capital accounts decreased due primarily to an increase to an existing bankruptcy-related litigation reserve recorded in the third quarter of 2024, partially offset by a reduction in value added tax ("VAT") receivables due primarily to VAT refunds received in 2025.
Showing the first 40 of 55 pairs. Open the source sections for the rest.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
The net carrying amount of the Exchangeable Notes Due 2030 consists of the following:
Current report — wording carried from elsewhere
(1) Debt discounts, including the initial fair value, at issuance, of the Exchange Feature 2030, and debt issuance costs are amortized to non-vehicle interest expense over the term of the Exchangeable Notes Due 2030 using the effective interest method.
Current report — wording carried from elsewhere
Interest expense recognized for the Exchangeable Notes Due 2030 consists of the following:
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
2024 resulting in part from increased dispositions of older vehicles through a more optimized disposition channel mix and (iii) lower Average Vehicles.
Previous report — wording carried elsewhere
Amendment No. 8, and will sunset upon the end of the Relief Period, as discussed above. As of June 30, 2025, we were in compliance with the First Lien Ratio. As of June 30, 2025 and as of the filing of this Quarterly Report, we were in compliance with the minimum liquidity covenant, as discussed above.