HERTZ CORP

The footnote in the table above is shown in the "Footnotes to the Results of Operations and Selected Operating Data by Segment Tables" section of this MD&A.

Total revenues increased $211 million in the second quarter of 2026 compared to the same period in 2025, resulting from increases of $180 million and $31 million in our Americas RAC and International RAC segments, respectively. The increase in total revenues was due primarily to improved pricing.

Depreciation of revenue earning vehicles and lease charges, net increased $72 million in the second quarter of 2026 compared to the same period in 2025, of which $66 million was attributed to our Americas RAC segment.

Depreciation of revenue earning vehicles and lease charges, net increased due primarily to reduced gains and residual variability. The reduction in gains recognized on vehicle disposals resulted in large part from our disposition strategy in the second quarter of 2026, which included the prioritization of older vehicles and certain models and a higher mix of sales through less favorable disposition channels. The increase was partially offset by a reduction in costs associated with the sales of vehicles resulting in part from disposition channel mix.

DOE increased $60 million in the second quarter of 2026 compared to the same period in 2025, resulting from increases of $51 million and $7 million in our Americas RAC and International RAC segments, respectively. The increase in DOE was due primarily to higher collision, refueling and maintenance costs in our Americas RAC segment. DOE was also impacted by an unfavorable $10 million fx impact in the second quarter of 2026 in our International RAC segment.

Non-vehicle depreciation and amortization was comparable in the second quarter of 2026 to the same period in 2025.

SG&A increased $12 million in the second quarter of 2026 compared to the same period in 2025 driven primarily by increases of $7 million in each of our Americas RAC and International RAC segments, partially offset by a decrease of $3 million in our corporate operations. The increase in SG&A was due primarily to higher advertising spend in our Americas RAC and International RAC segments. SG&A associated with our corporate operations decreased primarily due to a reduction in personnel costs, partially offset by increased restructuring related charges.

Vehicle interest expense, net increased $13 million in the second quarter of 2026 compared to the same period in 2025 due primarily to our Americas RAC segment resulting largely from increased debt levels driven by the issuances of HVF III Series 2025 Notes in June and December 2025 and the issuance of HVF III Series 2026 Notes in May 2026.

Non-vehicle interest expense, net decreased $138 million in the second quarter of 2026 compared to the same period in 2025 due primarily to unrealized gains related to changes in the fair value of the Exchange Features 2029 and the Exchange Feature 2030, partially offset by increased debt levels.

In the second quarters of 2026 and 2025, we recognized gains of $64 million and $89 million, respectively, 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. 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 2026.

In the second quarter of 2026, we recorded a tax provision of $7 million, which resulted in an effective tax rate of (24)%. In the second quarter of 2025, we recorded a tax benefit of $22 million, which resulted in an effective tax rate of 11%. The change in taxes in the second quarter of 2026 compared to the same period in 2025 was driven by lower pretax losses and decreases in valuation allowances on deferred tax assets.

Total revenues increased $402 million in the first half of 2026 compared to the same period in 2025, resulting primarily from increases of $318 million and $84 million in our Americas RAC and International RAC segments, respectively. The increase in total revenues was due primarily to improved pricing.

Depreciation of revenue earning vehicles and lease charges, net increased $18 million in the first half of 2026 compared to the same period in 2025 with increases of $12 million and $6 million in our International RAC and Americas RAC segments, respectively. Depreciation of revenue earning vehicles and lease charges, net was impacted by an unfavorable $11 million fx impact in the first half of 2026 in our International RAC segment. Depreciation of revenue earning vehicles and lease charges, net was also negatively impacted from a reduction in gains recognized on vehicle disposals in the second quarter of 2026, which included the prioritization of older vehicles and certain models and a higher mix of sales through less favorable disposition channels. The increase was partially offset by a reduction in costs associated with the sales of vehicles resulting in part from disposition channel mix.

DOE increased $129 million in the first half of 2026 compared to the same period in 2025 with increases of $83 million and $42 million in our Americas RAC and International RAC segments, respectively. The increase in DOE was due primarily to higher collision and maintenance costs in our Americas RAC segment and as a result of increased volume. DOE was also impacted by an unfavorable $33 million fx impact in the first half of 2026 in our International RAC segment.

Non-vehicle depreciation and amortization decreased $7 million in the first half of 2026 compared to the same period in 2025, resulting primarily from our Americas RAC segment. The decrease in non-vehicle depreciation and amortization was due primarily to an increase in assets that were fully depreciated and certain asset retirements in the first quarter of 2025 in our Americas RAC segment.

SG&A increased $26 million in the first half of 2026 compared to the same period in 2025 driven primarily by increases of $18 million and $15 million in our International RAC and Americas RAC segments, respectively, partially offset by a decrease of $7 million associated with our corporate operations. SG&A increased primarily from higher advertising spend and increased personnel costs in our International RAC segment, partially offset by a reduction in personnel costs associated with our corporate operations. SG&A was also impacted by an unfavorable $8 million fx impact in the first half of 2026.

Vehicle interest expense, net increased $19 million in the first half of 2026 compared to the same period in 2025 due primarily to increased debt levels and higher average rates in our Americas RAC segment resulting largely from the issuances of HVF III Series 2025 Notes in June and December 2025 and the issuance of HVF III Series 2026 Notes in May 2026.

Non-vehicle interest expense, net decreased $154 million in the first half of 2026 compared to the same period in 2025 due primarily to unrealized gains related to changes in the fair value of the Exchange Features 2029 and the Exchange Feature 2030, partially offset by increased debt levels.

In the first half of 2026 and 2025, we recognized gains of $64 million and $89 million, respectively, on the sales of certain non-vehicle capital assets during the second quarters of 2026 and 2025 respectively, 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 2026.

In the first half of 2026, we recorded a tax provision of $37 million, which resulted in an effective tax rate of (10)%. In the first half of 2025, we recorded a tax benefit of $104 million, which resulted in an effective tax rate of 15%. The change in tax in the first half of 2026 compared to the same period in 2025 was driven primarily by lower pretax losses and increases in valuation allowances on deferred tax assets.

CONSOLIDATED RESULTS OF OPERATIONS – HERTZ GLOBAL

The above discussion for Hertz also applies to Hertz Global.

Hertz Global had income of $98 million and $131 million from the change in fair value of Public Warrants that was incremental to Hertz for the second quarter and first half of 2026, respectively, included in Hertz Global's unaudited condensed consolidated statements of operations in Part I, Item 1 of this Quarterly Report.

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.