Hertz Global : Q1 2026 Earnings Presentation

Published: 2026-05-07 08:21:11 ET HTZ

Published on 05/07/2026 at 08:21 am EDT

Over 100 years of operations

locations

countries

annual revenue

employees

vehicles

annual rentals

INVESTOR PRESENTATION | Q1 2026

*includes company operated and franchisee locations

Note: Data For Full Year 2025 3

Multiple brands provide customers a full range of mobility services

METRIC TARGET COMMENTARY

FLEET

Depreciation per unit per month (DPU)

UNIT

REVENUE

Revenue per unit per month (RPU)

Under $300

Over $1,500

Fleet refresh is complete, maintaining optimal hold strategy going forward

Achieved $300 DPU for 2025. Fleet strategy implemented to maintain $300 DPU in 2026.

Model Year 2026 buys have landed with both price and volume hitting our targets

Continued focus on growing vehicle sales through retail channels

Revenue diversification by growing off-airport and mobility business units

Drive a higher mix of durable segments - loyalty and direct bookings

Better monetization through dynamic pricing for value added services

Improve unit economics at local market level through foundational changes to our

systems and processes

Eliminate waste by reducing Out of Service fleet

Continue strategy of maintaining fleet below demand curve

MANAGE COSTS

Direct Operating Expense (DOE) per

Transaction Day Low $30s

Operational excellence

Workforce management

Improved procurement and contract management

Footprint optimization

Technology

INVESTOR PRESENTATION | Q1 2026 7

Q1 2025

Q1 2026

COMMENTARY

REVENUE

$1.8B

$2.0B

11%

Strongest year-over-year revenue growth in three years through structural improvements to commercial strategies

RPU

$1,294

$1,353

Gaining traction towards our North Star RPU metric despite recall headwinds

RPD

$54.40

$57.38

Driven by structural improvements through commercial strategies and supported by broader market strength

TRANSACTION DAYS

33.9M

34.9M

Larger fleet and improved asset efficiency of vehicles available for rent

AVG. FLEET

506K

514K

Carried a larger fleet to manage through higher recall activity

UTILIZATION

79%

(70) bps

Utilization decrease YoY; if not for elevated recalls, utilization would have improved 140 basis points

DPU

$358

$312

(13)%

Driven by fleet refresh and "Buy Right, Hold Right, Sell Right" strategy

ADJ. DOE/TRANS. DAY

$37.79

$38.43

Increase from EBITDA-accretive revenue-related costs and higher real estate expense from sale leaseback transactions last year

ADJ. CORP. EBITDA

$(302)M

$(161)M

47%

$141 million improvement driven by strong revenue performance and lower depreciation expense

ADJ. FREE CASH FLOW

$(578)M

$(466)M

19%

Increase primarily driven by improved operating performance

See Appendix for definitions of key metrics and reconciliations of non-GAAP measures to the most directly comparable GAAP measure where applicable.

dollars in millions

LIQUIDITY POSITION

Liquidity of $837M as of March 31, 2026

$583M of unrestricted cash

$254M available under First Lien RCF

$0.6B of excess fair market value cushion in ABS facilities globally

Settlement of $346M of "make-whole" claims in January 2026

In April, completed additional ABS financing adding $200M of liquidity in Q2

With other liquidity enhancements planned, we expect to end Q2 just under $1B in liquidity and look to end the year above

$1.5B

*Non-vehicle debt maturity profile as of March 31, 2026. As of March 31, 2026, total non-vehicle debt was $6,246 million. The chart excludes $6 million of other non-vehicle debt that is comprised of finance lease obligations and the $245 million Term C Loan (maturing June 2028) since the cash is restricted to collateralize letters of credit.

Hertz Global Holdings, Inc.

Investor Relations 8501 Williams Rd, Estero, FL 33928

[email protected]

(In Millions)

Q1 2026

Q1 2025

Adjusted Corporate EBITDA:

Net Income (Loss)

$(333)

$(443)

Adjustments:

Income Tax Provision (Benefit)

(82)

Non-vehicle Depreciation and Amortization

Non-vehicle Debt Interest, Net of Interest Income

137

121

Vehicle Debt-related Charges

Restructuring and Restructuring Related Charges

Net (Gains) Losses on Financial Instruments

(29) 3

Share-based Compensation Expense

Foreign Currency (Gains) Losses

(Gain) on Sale of Non-vehicle Capital Assets

Bankruptcy-related Litigation Reserves

Change in Fair Value of Public Warrants

(33) 9

Other Items

Adjusted Corporate EBITDA(A)

$(161)

$(302)

Revenues

$2,004

$1,813

Adjusted Corporate EBITDA Margin

(8)%

(17)%

HERTZ GLOBAL HOLDINGS, INC. RECONCILIATION OF GAAP TO NON-GAAP MEASURE - ADJUSTED CORPORATE EBITDA

Adjusted Corporate EBITDA represents income or loss attributable to the Company as adjusted to eliminate the impact of GAAP income tax; non-vehicle depreciation and amortization; non-vehicle debt interest, net; vehicle debt-related charges; restructuring and restructuring related charges; net (gains) losses on financial instruments; share-based compensation expense; foreign currency (gains) losses; change in fair value of Public Warrants; and certain other miscellaneous items.

Adjusted Corporate EBITDA Margin is calculated as the ratio of Adjusted Corporate EBITDA to Revenues.

Management uses these measures as operating performance metrics for internal monitoring and planning purposes, including the preparation of the Company's annual operating budget and monthly operating reviews, and analysis of investment decisions, profitability and performance trends.

These measurements enable management and investors to assess the performance of the entire business on the same basis as its reportable segments. Adjusted Corporate EBITDA is also utilized in the determination of certain executive compensation. 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 herein.

(A) 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 GLOBAL HOLDINGS, INC. RECONCILIATION OF GAAP TO NON-GAAP MEASURES - ADJUSTED OPERATING CASH FLOW AND ADJUSTED FREE CASH FLOW

Adjusted operating cash flow represents net cash provided by operating activities net of the non-cash add back for vehicle depreciation and reserves, and exclusive of bankruptcy related payments made post emergence. Adjusted operating cash flow is important to management and investors as it provides useful information about the amount of cash generated from operations when fully burdened by fleet costs.

Adjusted free cash flow represents adjusted operating cash flow plus the impact of net non-vehicle capital expenditures and net fleet growth after financing. Adjusted free cash flow is important to management and investors as it provides useful information about the amount of cash available for, but not limited to, the reduction of non-vehicle debt, share repurchase and acquisition. When evaluating our operating performance, investors should not consider Adjusted Corporate Operating Cash Flow or Adjusted Free Cash Flow in isolation of, or as a substitute for, measures of our financial performance determined in accordance with U.S. GAAP. The most comparable GAAP measure for adjusted operating cash flow and adjusted free cash flow is net cash provided by (used in) operating activities.

(In Millions)

Q1 2026

Q1 2025

Adjusted Operating Cash Flow And Adjusted Free Cash Flow:

Net cash provided by (used in) operating activities

$20

$251

Depreciation and reserves for revenue earning vehicles, net

(537)

(624)

Bankruptcy related payments (post emergence) and other payments

359

Adjusted operating cash flow

(158)

(373)

Non-vehicle capital asset proceeds (expenditures), net

(23) 5

Adjusted operating cash flow before vehicle investment

(181)

(368)

Net fleet growth after financing

(285)

(210)

Adjusted free cash flow

$(466)

$(578)

Calculation Of Net Fleet Growth After Financing:

Revenue earning vehicles expenditures

$(3,602)

$(2,847)

Proceeds from disposal of revenue earning vehicles

2,527

2,124

Revenue earning vehicles capital expenditures, net

(1,075)

(723)

Depreciation and reserves for revenue earning vehicles, net

537

624

Financing activity related to vehicles:

Borrowings

745

1,126

Payment

(425)

(1,384)

Restricted cash changes, vehicles

(67)

147

Net financing activity related to vehicles

253

(111)

Net fleet growth after financing

$(285)

$(210)

($ In Millions, Except Where Noted)

Q1 2026

Q1 2025

Total RPD

Revenues

$2,004

$1,813

Foreign Currency Adjustment(A)

(2)

Total Revenues - Adjusted for Foreign Currency

$2,002

$1,844

Transaction Days (in thousands)

34,893

33,902

Total RPD (In Dollars)

$57.38

$54.40

Transaction Days ("Days"; also referred to as "volume")

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. This metric is important to management and investors as it represents the number of revenue-generating days.

Total Revenue Per Transaction Day ("Total RPD" or "RPD"; also referred to as "pricing")

($ In Millions, Except Where Noted)

Q1 2026

Q1 2025

RPU

Total Revenues - Adjusted for Foreign Currency

$2,002

$1,844

Average Rentable Vehicles (in whole units)(B)

493,359

475,117

Total revenue per unit (in whole dollars)

$4,058

$3,882

Number of months in period

RPU (in whole dollars)

$1,353

$1,294

Total RPD represents revenue generated per transaction day, excluding the impact of foreign currency exchange rates so as not to affect the comparability of underlying trends. This metric is important to management and investors as it represents a measure of changes in the underlying pricing in the vehicle rental business and encompasses the elements in vehicle rental pricing that management has the ability to control.

Revenue Per Unit Per Month ("RPU")

Revenue Per Unit Per Month represents the amount of revenue generated per vehicle in the rental fleet each month, excluding the impact of foreign currency exchange rates so as not to affect the comparability of underlying trends. This metric is important to management and investors as it provides a measure of revenue productivity relative to the number of vehicles in our rental fleet whether owned or leased, or asset efficiency.

Note: Global represents Americas RAC and International RAC segment information on a combined basis and excludes Corporate

Based on December 31, 2025 foreign exchange rates

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. The prior period has been recast to reflect this change.

($ In Millions, Except Where Noted)

Q1 2026

Q1 2025

Vehicle Utilization

Transaction Days (In Thousands)

34,893

33,902

Average Rentable Vehicles (In Whole Units)(A)

493,359

475,117

Number of Days in Period (In Whole Units)

Available Car Days (In Thousands)

44,409

42,770

Vehicle Utilization(B)

79%

Depreciation Per Unit Per Month

Depreciation of Revenue Earning Vehicles and Lease Charges, Net

$481

$535

Foreign Currency Adjustment(C)

Adjusted Depreciation of Revenue Earning Vehicles and Lease Charges, Net

$481

$543

Average Vehicles (In Whole Units)(D)

514,163

505,552

Adjusted Depreciation of Revenue Earning Vehicles and Lease Charges Divided by Average Vehicles (In Whole Dollars)

$935

$1,075

Number of Months in Period (In Whole Units)

Depreciation Per Unit Per Month (In Whole Dollars)

$312

$358

Available Car Days

Available Car Days represents Average Rentable Vehicles multiplied by the number of days in a given period.

Average Vehicles ("Fleet Capacity" or "Capacity")

Average Vehicles is determined using a daily average of the number of vehicles in the fleet whether owned or leased by the Company.

Note: Global represents Americas RAC and International RAC segment information on a combined basis and excludes Corporate

Average Rentable Vehicles

Average Rentable Vehicles reflects Average Vehicles excluding vehicles for sale on the Company's retail lots or actively in the process of being sold through other disposition channels.

Vehicle Utilization ("Utilization")

Vehicle Utilization represents the ratio of Transaction Days to Available Car Days. This metric is important to management and investors as it is the measurement of the proportion of vehicles that are being used to generate revenues relative to rentable fleet capacity.

Depreciation Per Unit Per Month ("Depreciation Per Unit" or "DPU") Depreciation Per Unit Per Month represents the amount of average depreciation expense and lease charges per vehicle per month, exclusive of the impacts of foreign currency exchange rates so as not to affect the comparability of underlying trends. This metric is important to management and investors as it reflects how effectively the Company is managing the costs of its vehicles and facilitates comparisons with other participants in the vehicle rental industry.

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. The prior period has been recast to reflect this change.

Calculated as Transaction Days divided by Available Car Days

Based on December 31, 2025 foreign exchange rates

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. The prior period has been recast to reflect this change.

($ In Millions, Except Where Noted)

Q1 2026

Q1 2025

Adjusted DOE per Transaction Day

Direct Operating Expense - as reported

$1,344

$1,274

Adjustments:

Foreign Currency Adjustment(A)

(1)

Other(B)

(2)

(16)

Direct Operating Expense (DOE) - as adjusted

1,341

1,281

Transaction Days (In Thousands)

34,893

33,902

Adjusted DOE per Transaction Day

$38.43

$37.79

Adjusted Direct Operating Expense per Transaction Day ("Adjusted DOE per Day")

Adjusted DOE per Day is calculated as Direct Operating Expenses - as reported, exclusive of the impacts of foreign currency exchange rates and adjustments for certain miscellaneous items, divided by the number of Transaction Days during the period.

Adjusted DOE per Day is important to management and investors as it measures the Company's cost efficiency on a per unit basis excluding the impact of variable direct operating expense fluctuations attributable to changes in volume, so as not to affect the comparability of underlying trends. Its most comparable GAAP measure is DOE per Transaction Day.

Note: Global represents Americas RAC and International RAC segment information on a combined basis and excludes Corporate

Based on December 31, 2025 foreign exchange rates

For Q1 2026, primarily reflects restructuring related IT costs. For Q4 2025, primarily reflects a pension plan settlement reserve adjustment and a one-time settlement agreement to restructure an IT contract. For Q1 2025, primarily reflects concession-related adjustments and restructuring related IT costs.

Disclaimer

Hertz Global Holdings Inc. published this content on May 07, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 07, 2026 at 12:20 UTC.