HERTZ CORP
For the period ended Dec 31, 2025. Filed Feb 26, 2026.
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FY2025 · Filed Feb 26, 2026
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RESULTS OF OPERATIONS AND SELECTED OPERATING DATA BY SEGMENT
As of December 31, 2025, our Americas RAC operations had a total of approximately 4,600 company-operated and franchisee locations, comprised of 2,000 airport and 2,600 off airport locations.
Results of operations and our discussion and analysis for our Americas RAC segment were as follows:
| Years Ended December 31, · Percent Increase/(Decrease) | |||||
|---|---|---|---|---|---|
| ($ In millions, except as noted) · 2025 · 2024 · 2025 vs. 2024 | |||||
| Total revenues | $6,759 | $7,398 | (9)% | ||
| Depreciation of revenue earning vehicles and lease charges, net | $1,574 | $3,198 | (51) | ||
| Direct vehicle and operating expenses | $4,461 | $4,726 | (6) | ||
| Direct vehicle and operating expenses as a percentage of total revenues | 66% | 64% | |||
| Non-vehicle depreciation and amortization | $96 | $109 | (12) | ||
| Selling, general and administrative expenses | $504 | $482 | 4 | ||
| Selling, general and administrative expenses as a percentage of total revenues | 7% | 7% | |||
| Vehicle interest expense | $510 | $479 | 6 | ||
| (Gain) from the sale of non-vehicle capital assets | $(144) | $— | NM | ||
| Legal settlement | $(154) | $— | NM | ||
| Long-Lived Assets impairment | $— | $865 | (100) | ||
| Adjusted EBITDA | $(172) | $(1,357) | (87) | ||
| Transaction Days (in thousands)(b) | 119,473 | 124,767 | (4) | ||
| Average Vehicles (in whole units)(c) | 422,346 | 453,706 | (7) | ||
| Average Rentable Vehicles (in whole units)(c) | 400,355 | 426,017 | (6) | ||
| Vehicle Utilization(c) | 82% | 80% | |||
| Total RPD (in dollars)(d) | $56.49 | $59.17 | (5) | ||
| Total RPU Per Month (in whole dollars)(e) | $1,405 | $1,444 | (3) | ||
| Depreciation Per Unit Per Month (in whole dollars)(f) | $310 | $587 | (47) | ||
| Percentage of program vehicles as of period end | 11% | 7% | |||
Footnotes to the table above are shown in the "Footnotes to the Results of Operations and Selected Operating Data by Segment Tables" section of this MD&A.
Total Americas RAC revenues decreased $639 million in 2025 compared to 2024 due primarily to lower pricing and lower volume. Total RPD and Transaction Days declined across most customer channels in 2025 compared to 2024. Airport revenues comprised 68% and 69% of total revenues for the segment in 2025 and 2024, respectively.
Depreciation of revenue earning vehicles and lease charges, net for Americas RAC decreased $1.6 billion in 2025 compared to 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 on vehicle dispositions recognized in 2025 compared to per unit losses recognized in the same period in 2024 resulting in part from the disposition of vehicles through a more optimized channel mix, (iii) lower Average Vehicles and (iv) write-downs on the carrying values of the EVs classified as held for sale in 2024.
DOE for Americas RAC decreased $265 million in 2025 compared to 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 facility rent expense resulting in part from sale leaseback transactions in 2025.
Non-vehicle depreciation and amortization decreased $13 million in 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.
SG&A for Americas RAC increased $22 million in 2025 compared to 2024 due primarily to increased professional fees, higher personnel costs and increased advertising spend, partially offset by lower restructuring related charges.
Vehicle interest expense for Americas RAC increased $31 million in 2025 compared to 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.
Americas RAC recognized a gain of $144 million on the sale of certain non-vehicle capital assets, primarily during the second and third quarters of 2025, as disclosed in Note 3, "Divestitures," in Part II, Item 8 of this 2025 Annual Report.
Americas RAC recognized a gain of $154 million in 2025 related to the receipt of a legal settlement distribution in connection with our participation in a class action settlement, as disclosed in Note 15, "Contingencies and Off-Balance Sheet Commitments," in Part II, Item 8 of this 2025 Annual Report.
Americas RAC recognized an impairment charge of $865 million in 2024 associated with certain long-lived assets, of which $740 million and $125 million related to its revenue earning vehicles and ROU assets, respectively. See Note 4, "Long-Lived Assets Impairment," in Part II, Item 8 of this 2025 Annual Report for further details.
As of December 31, 2025, our International RAC operations had approximately 6,300 company-operated and franchisee locations, comprised of 1,500 airport and 4,800 off airport locations in over 110 countries and jurisdictions, including Africa, Asia, Australia, Europe, the Middle East and New Zealand.
Results of operations and our discussion and analysis for our International RAC segment were as follows:
| Years Ended December 31, · Percent Increase/(Decrease) | |||||
|---|---|---|---|---|---|
| ($ In millions, except as noted) · 2025 · 2024 · 2025 vs. 2024 | |||||
| Total revenues | $1,745 | $1,651 | 6% | ||
| Depreciation of revenue earning vehicles and lease charges, net | $353 | $413 | (15) | ||
| Direct vehicle and operating expenses | $1,031 | $971 | 6 | ||
| Direct vehicle and operating expenses as a percentage of total revenues | 59% | 59% | |||
| Non-vehicle depreciation and amortization | $14 | $13 | 2 | ||
| Selling, general and administrative expenses | $228 | $244 | (6) | ||
| Selling, general and administrative expenses as a percentage of total revenues | 13% | 15% | |||
| Vehicle interest expense | $98 | $111 | (12) | ||
| Long-Lived Assets impairment | $— | $183 | (100) | ||
| Adjusted EBITDA | $124 | $31 | NM | ||
| Transaction Days (in thousands)(b) | 29,813 | 29,104 | 2 | ||
| Average Vehicles (in whole units)(c) | 105,033 | 106,573 | (1) | ||
| Average Rentable Vehicles (in whole units)(c) | 103,704 | 104,661 | (1) | ||
| Vehicle Utilization(c) | 79% | 76% | |||
| Total RPD (in dollars)(d) | $54.70 | $54.48 | — | ||
| Total RPU Per Month (in whole dollars)(e) | $1,311 | $1,262 | 4 | ||
| Depreciation Per Unit Per Month (in whole dollars)(f) | $260 | $311 | (16) | ||
| Percentage of program vehicles as of period end | 24% | 26% | |||
Footnotes to the table above are shown in the "Footnotes to the Results of Operations and Selected Operating Data by Segment Tables" section of this MD&A.
Total revenues for International RAC increased $94 million in 2025 compared to 2024, due primarily to higher volume resulting from increases primarily in our leisure channel in 2025 compared to 2024. Total revenues for International RAC were also impacted by a favorable $47 million foreign currency impact in 2025.
Depreciation of revenue earning vehicles and lease charges, net for International RAC decreased $60 million in 2025 compared to 2024 due primarily to (i) per unit gains recognized on vehicle dispositions in 2025 compared to per unit losses recognized in the same period in 2024 and (ii) changes in fleet mix.
DOE for International RAC increased $60 million in 2025 compared to 2024 due primarily to higher facility rent costs, increased maintenance costs and increased volume.
SG&A for International RAC decreased $16 million in 2025 compared to 2024 due primarily to decreased restructuring related charges, partially offset by expenses incurred related to an unfavorable litigation ruling in the third quarter of 2025.
Vehicle interest expense for International RAC decreased $13 million in 2025 compared to 2024 due primarily to lower debt levels and lower market rates.
International RAC recognized an impairment charge of $183 million in 2024 associated with its revenue earning vehicles. See Note 4, "Long-Lived Assets Impairment," in Part II, Item 8 of this 2025 Annual Report for further details.
Footnotes to the Results of Operations and Selected Operating Data by Segment Tables
(a)Adjusted Corporate EBITDA is calculated as net income (loss), adjusted for income taxes; non-vehicle depreciation and amortization; non-vehicle debt interest, net; vehicle debt-related charges; restructuring and restructuring related charges; unrealized (gains) losses from financial instruments; change in fair value of Public Warrants and certain other miscellaneous items. When evaluating our operating performance, investors should not consider Adjusted Corporate EBITDA in isolation of, or as a substitute for, measures of our financial performance determined in accordance with U.S. GAAP. The reconciliations to the most comparable consolidated U.S. GAAP measure are presented below.
HERTZ
| Years Ended December 31, | ||
|---|---|---|
| (In millions) | 2025 | 2024 |
| Net income (loss) | $(703) | $(3,137) |
| Adjustments: | ||
| Income tax provision (benefit) | (83) | (375) |
| Non-vehicle depreciation and amortization | 117 | 139 |
| Non-vehicle debt interest, net(1) | 498 | 375 |
| Vehicle debt-related charges(2) | 46 | 45 |
| Restructuring and restructuring related charges(3) | 18 | 66 |
| Unrealized (gains) losses on financial instruments(4) | (37) | 7 |
| Gain on sale of non-vehicle capital assets(5) | (144) | — |
| Legal settlement(6) | (154) | — |
| Bankruptcy-related litigation reserve(7) | 24 | 292 |
| Long-Lived Assets impairment(8) | — | 1,048 |
| Non-cash stock-based compensation forfeitures(9) | — | (64) |
| Other items(10) | 79 | 63 |
| Adjusted Corporate EBITDA | $(339) | $(1,541) |
HERTZ GLOBAL
| Years Ended December 31, | ||
|---|---|---|
| (In millions) | 2025 | 2024 |
| Net income (loss) | $(747) | $(2,862) |
| Adjustments: | ||
| Income tax provision (benefit) | (83) | (375) |
| Non-vehicle depreciation and amortization | 117 | 139 |
| Non-vehicle debt interest, net(1) | 498 | 375 |
| Vehicle debt-related charges(2) | 46 | 45 |
| Restructuring and restructuring related charges(3) | 18 | 66 |
| Unrealized (gains) losses on financial instruments(4) | (37) | 7 |
| Gain on sale of non-vehicle capital assets(5) | (144) | — |
| Legal settlement(6) | (154) | — |
| Bankruptcy-related litigation reserve(7) | 24 | 292 |
| Long-Lived Assets impairment(8) | — | 1,048 |
| Non-cash stock-based compensation forfeitures(9) | — | (64) |
| Change in fair value of Public Warrants(11) | 44 | (275) |
| Other items(10) | 79 | 63 |
| Adjusted Corporate EBITDA | $(339) | $(1,541) |
(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.
(2)Represents vehicle debt-related charges relating to the amortization of deferred financing costs and debt discounts and premiums.
(3)Represents charges incurred under restructuring actions as defined in U.S. GAAP. Also includes restructuring related charges such as incremental costs incurred related to personnel reductions, litigation and closure of underperforming locations.
(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 12, "Financial Instruments," in Part II, Item 8 of this 2025 Annual Report.
(5)Represents the gains on sales of certain non-vehicle capital assets sold in 2025 and 2023. See Note 3, "Divestitures," in Part II, Item 8 of this 2025 Annual 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 15, "Contingencies and Off-Balance Sheet Commitments," in Part II, Item 8 of this 2025 Annual Report.
(7)Represents an increase to an existing bankruptcy-related litigation reserve initially recorded in September 2024, including interest that continues to accrue during each subsequent reporting period. See Note 15, "Contingencies and Off-Balance Sheet Commitments," in Part II, Item 8 of this 2025 Annual Report.
(8)Represents Long-Lived Assets impairment charges recognized in the third quarter of 2024. See Note 4, "Long-Lived Assets Impairment," in Part II, Item 8 of this 2025 Annual Report.
(9)Represents former CEO awards forfeited in March 2024. See Note 9, "Stock-Based Compensation," in Part II, Item 8 of this 2025 Annual Report.
(10)Represents miscellaneous items. For 2025, primarily includes a pension plan settlement reserve adjustment, a one-time settlement agreement to restructure an IT contract, certain IT-related charges, cloud computing costs, an unfavorable litigation ruling and certain concession-related adjustments. For 2024, primarily includes certain IT-related charges, cloud computing costs and certain storm-related vehicle damages, partially offset by a loss recovery settlement and certain litigation settlements.
(11)Represents the change in fair value during the reporting period for Hertz Global's outstanding Public Warrants, as disclosed in Note 13, "Fair Value Measurements," in Part II, Item 8 of this 2025 Annual Report.
(b) Transaction Days represents the total number of 24-hour periods, with any partial period counted as one Transaction Day, that vehicles were on rent (the period between when a rental contract is opened and closed) in a given period. Thus, it is possible for a vehicle to attain more than one Transaction Day in a 24-hour period.
(c) Vehicle Utilization is calculated by dividing total Transaction Days by Available Car Days. Available Car Days represents Average Rentable Vehicles multiplied by the number of days in a given period. Average Rentable Vehicles excludes vehicles for sale on our retail lots or actively in the process of being sold through other disposition channels and is determined using a simple average of such vehicles at the beginning and end of a given period.
| Americas RAC · International RAC | ||||
|---|---|---|---|---|
| Years Ended December 31, | ||||
| 2025 | 2024 | 2025 | 2024 | |
| Transaction Days (in thousands) | 119,473 | 124,767 | 29,813 | 29,104 |
| Average Rentable Vehicles (in whole units) | 400,355 | 426,017 | 103,704 | 104,661 |
| Number of days in period (in whole units) | 365 | 366 | 365 | 366 |
| Available Car Days (in thousands) | 146,157 | 155,935 | 37,885 | 38,321 |
| Vehicle Utilization | 82% | 80% | 79% | 76% |
(d) Total RPD is calculated as revenues, with all periods adjusted to eliminate the effect of fluctuations in foreign currency exchange rates ("Total Revenues - adjusted for foreign currency"), divided by the total number of Transaction Days. Our management believes eliminating the effect of fluctuations in foreign currency exchange rates is useful in analyzing underlying trends. The calculation of Total RPD is shown below:
| Americas RAC · International RAC | ||||
|---|---|---|---|---|
| Years Ended December 31, | ||||
| ($ in millions, except as noted) | 2025 | 2024 | 2025 | 2024 |
| Revenues | $6,759 | $7,398 | $1,745 | $1,651 |
| Foreign currency adjustment(1) | (10) | (16) | (114) | (65) |
| Total Revenues-adjusted for foreign currency | $6,749 | $7,382 | $1,631 | $1,586 |
| Transaction Days (in thousands) | 119,473 | 124,767 | 29,813 | 29,104 |
| Total RPD (in dollars) | $56.49 | $59.17 | $54.70 | $54.48 |
(1)Based on December 31, 2024 foreign currency exchange rates for all periods presented.
(e) Total RPU Per Month is calculated as Total Revenues - adjusted for foreign currency divided by the Average Rentable Vehicles in each period and then divided by the number of months in the period reported.
| Americas RAC · International RAC | ||||
|---|---|---|---|---|
| Years Ended December 31, | ||||
| ($ in millions, except as noted) | 2025 | 2024 | 2025 | 2024 |
| Total Revenues-adjusted for foreign currency | $6,749 | $7,382 | $1,631 | $1,586 |
| Average Rentable Vehicles (in whole units) | 400,355 | 426,017 | 103,704 | 104,661 |
| Total revenue per unit (in whole dollars) | $16,856 | $17,328 | $15,726 | $15,150 |
| Number of months in period (in whole units) | 12 | 12 | 12 | 12 |
| Total RPU Per Month (in whole dollars) | $1,405 | $1,444 | $1,311 | $1,262 |
(f) Depreciation Per Unit Per Month represents the amount of average depreciation expense and lease charges, per vehicle per month and is calculated as depreciation of revenue earning vehicles and lease charges, net, with all periods adjusted to eliminate the effect of fluctuations in foreign currency exchange rates, divided by the Average Vehicles in each period, which is determined using a simple average of the number of vehicles at the beginning and end of a period, and then dividing by the number of months in the period reported. Our management believes eliminating the effect of fluctuations in foreign currency exchange rates is useful in analyzing underlying trends. The calculation of Depreciation Per Unit Per Month is shown below:
| Americas RAC · International RAC | ||||
|---|---|---|---|---|
| Years Ended December 31, | ||||
| ($ in millions, except as noted) | 2025 | 2024 | 2025 | 2024 |
| Depreciation of revenue earning vehicles and lease charges, net(1) | $1,574 | $3,198 | $353 | $413 |
| Foreign currency adjustment(2) | (1) | (2) | (25) | (16) |
| Adjusted depreciation of revenue earning vehicles and lease charges | $1,573 | $3,196 | $328 | $397 |
| Average Vehicles (in whole units) | 422,346 | 453,706 | 105,033 | 106,573 |
| Adjusted depreciation of revenue earning vehicles and lease charges divided by Average Vehicles (in whole dollars) | $3,724 | $7,044 | $3,123 | $3,729 |
| Number of months in period (in whole units) | 12 | 12 | 12 | 12 |
| Depreciation Per Unit Per Month (in whole dollars) | $310 | $587 | $260 | $311 |
(1)Reflects four months of depreciation at post-impairment rates for the year ended December 31, 2024. See Note 4, "Long-Lived Assets Impairment," in Part II, Item 8 of this 2025 Annual Report.
(2)Based on December 31, 2024 foreign currency exchange rates for all periods presented.
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