HERTZ CORP
For the period ended Mar 31, 2026. Filed May 8, 2026.
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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.
Mar 31, 2026 · Filed May 8, 2026
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Results of Operations and Selected Operating Data by Segment
Americas RAC
| Three Months EndedMarch 31, · % Change | |||
|---|---|---|---|
| ($ in millions, except as noted) · 2026 · 2025 | |||
| Total revenues | $1,628 | $1,490 | 9% |
| Depreciation of revenue earning vehicles and lease charges, net | $402 | $462 | (13) |
| Direct vehicle and operating expenses | $1,098 | $1,066 | 3 |
| Direct vehicle and operating expenses as a percentage of total revenues | 67% | 72% | |
| Non-vehicle depreciation and amortization | $21 | $26 | (20) |
| Selling, general and administrative expenses | $122 | $114 | 8 |
| Selling, general and administrative expenses as a percentage of total revenues | 8% | 8% | |
| Vehicle interest expense | $124 | $117 | 6 |
| Adjusted EBITDA | $(103) | $(235) | 56 |
| Transaction Days (in thousands)(b) | 28,562 | 27,758 | 3 |
| Average Vehicles (in whole units)(f) | 419,829 | 413,892 | 1 |
| Average Rentable Vehicles (in whole units)(c) | 401,094 | 385,191 | 4 |
| Vehicle Utilization(c) | 79% | 80% | |
| Total RPD (in dollars)(d) | $57.00 | $53.77 | 6 |
| Total RPU Per Month (in whole dollars)(e) | $1,353 | $1,292 | 5 |
| Depreciation Per Unit Per Month (in whole dollars)(f) | $319 | $373 | (14) |
| Percentage of program vehicles as of period end | 11% | 8% | |
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 increased $138 million in the first quarter of 2026 compared to the same period in 2025 due primarily to higher pricing and increased volume, in which Total RPD and Transaction Days increased across most customer channels. Airport revenues comprised 68% of total revenues for the segment in the first quarter of 2026 compared to 69% in the same period in 2025.
Depreciation of revenue earning vehicles and lease charges, net for Americas RAC decreased $60 million in the first quarter of 2026 compared to the same period in 2025 due primarily to (i) a reduction in costs associated with the sales of vehicles driven by fewer dispositions through our retail channels and (ii) impacts from a reduction in capital costs for newly acquired vehicles and the strengthening of residual values at the expected time of disposal resulting from market improvements.
DOE for Americas RAC increased $32 million in the first quarter of 2026 compared to the same period in 2025 primarily on increased volume.
Non-vehicle depreciation and amortization decreased $5 million in the first quarter of 2026 compared to the same period in 2025 due primarily to an increase in assets that are fully depreciated and certain asset retirements that occurred in 2025.
SG&A for Americas RAC increased $9 million in the first quarter of 2026 compared to the same period in 2025 due primarily to increased advertising spend.
Vehicle interest expense for Americas RAC increased $7 million in the first quarter of 2026 compared to the same period in 2025 due primarily to higher average rates and increased debt levels driven by the issuance of the HVF III Series 2025 Notes during 2025, partially offset by lower market rates.
International RAC
| Three Months EndedMarch 31, · % Change | |||
|---|---|---|---|
| ($ in millions, except as noted) · 2026 · 2025 | |||
| Total revenues | $376 | $323 | 16% |
| Depreciation of revenue earning vehicles and lease charges, net | $79 | $73 | 7 |
| Direct vehicle and operating expenses | $242 | $207 | 17 |
| Direct vehicle and operating expenses as a percentage of total revenues | 64% | 64% | |
| Non-vehicle depreciation and amortization | $3 | $3 | 17 |
| Selling, general and administrative expenses | $58 | $47 | 24 |
| Selling, general and administrative expenses as a percentage of total revenues | 15% | 14% | |
| Vehicle interest expense | $22 | $23 | (5) |
| Adjusted EBITDA | $(2) | $(10) | 78 |
| Transaction Days (in thousands)(b) | 6,331 | 6,144 | 3 |
| Average Vehicles (in whole units)(f) | 94,334 | 91,660 | 3 |
| Average Rentable Vehicles (in whole units)(c) | 92,265 | 89,926 | 3 |
| Vehicle Utilization(c) | 76% | 76% | |
| Total RPD (in dollars)(d) | $59.12 | $57.28 | 3 |
| Total RPU Per Month (in whole dollars)(e) | $1,352 | $1,304 | 4 |
| Depreciation Per Unit Per Month (in whole dollars)(f) | $277 | $294 | (6) |
| Percentage of program vehicles as of period end | 16% | 24% | |
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 $52 million in the first quarter of 2026 compared to the same period in 2025 due to higher pricing and increased volume. Total RPD increased across our leisure channels. Transaction Days increased primarily across our business channels. Total revenues for International RAC were also impacted by a favorable $33 million fx impact in the first quarter of 2026.
Depreciation of revenue earning vehicles and lease charges, net for International RAC in the first quarter of 2026 increased $5 million compared to the same period in 2025 due primarily to an unfavorable $7 million fx impact in the first quarter of 2026.
DOE for International RAC increased $35 million in the first quarter of 2026 compared to the same period in 2025 resulting primarily from higher personnel and maintenance costs and increased volume. DOE for International RAC was also impacted by an unfavorable $23 million fx impact in the first quarter of 2026.
SG&A for International RAC in the first quarter of 2026 increased $11 million compared to the same period in 2025 due primarily to increased personnel and restructuring related costs. SG&A for International RAC was also impacted by an unfavorable $6 million fx impact in the first quarter of 2026.
Vehicle interest expense for International RAC was comparable in the first quarter of 2026 to the same period in 2025.
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; net (gains) losses from financial instruments; share-based compensation expense; foreign currency (gains) losses; 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 reconciliation to the most comparable U.S. GAAP measure is presented below.
Effective in the first quarter of 2026, we revised our definition of Adjusted Corporate EBITDA to adjust for realized (gains) losses from financial instruments, share-based compensation expense and foreign currency (gains) losses. The update to Adjusted Corporate EBITDA is to better reflect management's view of ongoing operations and its assessment of our operational performance. The presentation of the prior period has been recast to conform to the current period presentation.
Hertz
| Three Months EndedMarch 31, | ||
|---|---|---|
| (In millions) | 2026 | 2025 |
| Net income (loss) | $(365) | $(434) |
| Adjustments: | ||
| Income tax provision (benefit) | 30 | (82) |
| Non-vehicle depreciation and amortization | 26 | 30 |
| Non-vehicle debt interest, net(1) | 137 | 121 |
| Vehicle debt-related charges(2) | 12 | 11 |
| Restructuring and restructuring related charges(3) | 8 | 3 |
| Net (gains) losses on financial instruments(4) | (29) | 3 |
| Share-based compensation expense | 17 | 15 |
| Foreign currency (gains) losses(5) | — | 4 |
| Other items(6) | 3 | 27 |
| Adjusted Corporate EBITDA | $(161) | $(302) |
Hertz Global
| Three Months EndedMarch 31, | ||
|---|---|---|
| (In millions) | 2026 | 2025 |
| Net income (loss) | $(333) | $(443) |
| Adjustments: | ||
| Income tax provision (benefit) | 29 | (82) |
| Non-vehicle depreciation and amortization | 26 | 30 |
| Non-vehicle debt interest, net(1) | 137 | 121 |
| Vehicle debt-related charges(2) | 12 | 11 |
| Restructuring and restructuring related charges(3) | 8 | 3 |
| Net (gains) losses on financial instruments(4) | (29) | 3 |
| Share-based compensation expense | 17 | 15 |
| Foreign currency (gains) losses(5) | — | 4 |
| Change in fair value of Public Warrants(7) | (33) | 9 |
| Three Months EndedMarch 31, | ||
|---|---|---|
| (In millions) | 2026 | 2025 |
| Other items(6) | 5 | 27 |
| Adjusted Corporate EBITDA | $(161) | $(302) |
(1)Excludes gains (losses) related to the fair value of the Exchange Features 2029, the Exchange Feature 2030 and the Capped Call Transactions 2030, which are included in footnote 4 below.
(2)Represents vehicle debt-related charges related 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 primarily to personnel reductions and litigation.
(4)Represents total realized and unrealized (gains) losses on derivative financial instruments, including gains (losses) related to the fair value of the Exchange Features 2029, the Exchange Feature 2030 and the Capped Call Transactions 2030. See Note 9, "Financial Instruments," in Part I, Item 1 of this Quarterly Report. As a result from the revision to Adjusted Corporate EBITDA, includes realized losses of $1 million and $4 million on derivative financial instruments for the three months ended March 31, 2026 and 2025, respectively.
(5)Represents (gains) losses recognized on the remeasurement and settlement of foreign currency transactions, excluding gains (losses) related to foreign currency derivative financial instruments, which are included in footnote 4 above.
(6)Represents miscellaneous items. For the three months ended March 31, 2026, primarily includes certain IT-related charges and cloud computing costs. For the three months ended March 31, 2025, primarily includes certain litigation charges, certain IT-related charges and certain concessions-related adjustments.
(7)Represents the change in fair value during the reporting period for Hertz Global's outstanding Public Warrants. See Note 10, "Fair Value Measurements," in Part I, Item 1 of this Quarterly 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 daily average of such vehicles. Effective in the first quarter of 2026, we changed our definition of Average Rentable Vehicles to use a daily average of rentable vehicles as opposed to a simple average of rentable vehicles at the beginning and end of a period. We believe this a better, more accurate measure of our rentable vehicles. Accordingly, the prior period has been recast to reflect this change.
| Americas RAC · International RAC | ||||
|---|---|---|---|---|
| Three Months Ended March 31, | ||||
| 2026 | 2025 | 2026 | 2025 | |
| Transaction Days (in thousands) | 28,562 | 27,758 | 6,331 | 6,144 |
| Average Rentable Vehicles (in whole units) | 401,094 | 385,191 | 92,265 | 89,926 |
| Number of days in period (in whole units) | 90 | 90 | 90 | 90 |
| Available Car Days (in thousands) | 36,099 | 34,671 | 8,310 | 8,099 |
| Vehicle Utilization | 79% | 80% | 76% | 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.
| Americas RAC · International RAC | ||||
|---|---|---|---|---|
| Three Months Ended March 31, | ||||
| ($ in millions, except as noted) | 2026 | 2025 | 2026 | 2025 |
| Revenues | $1,628 | $1,490 | $376 | $323 |
| Foreign currency adjustment(1) | — | 2 | (2) | 29 |
| Total Revenues - adjusted for foreign currency | $1,628 | $1,492 | $374 | $352 |
| Transaction Days (in thousands) | 28,562 | 27,758 | 6,331 | 6,144 |
| Total RPD (in dollars) | $57.00 | $53.77 | $59.12 | $57.28 |
(1)Based on December 31, 2025 foreign currency exchange rates for all periods presented.
(e) Total RPU Per Month is calculated as Total Revenues - adjusted for foreign currency divided by the Average Rentable Vehicles in each period and then divided by the number of months in the period reported.
| Americas RAC · International RAC | ||||
|---|---|---|---|---|
| Three Months Ended March 31, | ||||
| ($ in millions, except as noted) | 2026 | 2025 | 2026 | 2025 |
| Total Revenues - adjusted for foreign currency | $1,628 | $1,492 | $374 | $352 |
| Average Rentable Vehicles (in whole units) | 401,094 | 385,191 | 92,265 | 89,926 |
| Total revenue per unit (in whole dollars) | $4,059 | $3,875 | $4,057 | $3,913 |
| Number of months in period (in whole units) | 3 | 3 | 3 | 3 |
| Total RPU Per Month (in whole dollars) | $1,353 | $1,292 | $1,352 | $1,304 |
(f) Depreciation Per Unit Per Month represents the amount of average depreciation expense and lease charges, per vehicle per month and is calculated as depreciation of revenue earning vehicles and lease charges, net, with all periods adjusted to eliminate the effect of fluctuations in foreign currency exchange rates, divided by the Average Vehicles in each period, which is determined using a daily average of vehicles, and then dividing by the number of months in the period reported. Our management believes eliminating the effect of fluctuations in foreign currency exchange rates is useful in analyzing underlying trends. Effective in the first quarter of 2026, we changed our definition of Average Vehicles to use a daily average of vehicles as opposed to a simple average of vehicles at the beginning and end of a period. We believe this a better, more accurate measure of our vehicles. Accordingly, the prior period has been recast to reflect this change.
| Americas RAC · International RAC | ||||
|---|---|---|---|---|
| Three Months Ended March 31, | ||||
| ($ in millions, except as noted) | 2026 | 2025 | 2026 | 2025 |
| Depreciation of revenue earning vehicles and lease charges, net | $402 | $462 | $79 | $73 |
| Foreign currency adjustment(1) | — | 1 | (1) | 8 |
| Adjusted depreciation of revenue earning vehicles and lease charges | $402 | $463 | $78 | $81 |
| Average Vehicles (in whole units) | 419,829 | 413,892 | 94,334 | 91,660 |
| Adjusted depreciation of revenue earning vehicles and lease charges divided by Average Vehicles (in whole dollars) | $958 | $1,118 | $831 | $881 |
| Number of months in period (in whole units) | 3 | 3 | 3 | 3 |
| Depreciation Per Unit Per Month (in whole dollars) | $319 | $373 | $277 | $294 |
(1)Based on December 31, 2025 foreign currency exchange rates for all periods presented.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.