Hertz Global (HTZ) Q3 2025 earnings summary

Executive summary

• Achieved $2.48–$2.5 billion in Q3 2025 revenue and $190 million in adjusted corporate EBITDA, a $350 million year-over-year improvement, with first positive net income and EPS in two years at $184 million.

• Completed a transformative fleet refresh, resulting in a younger fleet, record high utilization since 2018, and improved vehicle lifecycle management.

• Net Promoter Score in North America rose nearly 50% year-over-year, reflecting improved customer experience and brand perception.

• Strategic focus on disciplined fleet management, revenue optimization, and cost control, while building a diversified mobility platform.

• Utilization increased to 84%, up 260 basis points year-over-year, reflecting improved fleet management and demand generation.

Financial highlights

• Q3 2025 revenue was $2.48–$2.5 billion (down 4% year-over-year); adjusted corporate EBITDA was $190 million (8% margin); net income was $184 million.

• Revenue per unit per month (RPU) was $1,530, nearly flat year-over-year but up 9% sequentially; record utilization at 84%.

• Depreciation per unit per month dropped 49% year-over-year to $273, aligning with sub-$300 target.

• Direct operating expenses declined 1% year-over-year; DOE per day improved both sequentially and annually.

• Generated $250 million in positive adjusted free cash flow; $154 million benefit from litigation settlement.

Outlook and guidance

• Q4 guidance updated to a slightly negative EBITDA margin (low to mid-single digits) due to system outages and used car pricing headwinds.

• Expect transaction days to be flat year-over-year in Q4, with fleet down just under 5% and utilization remaining solid.

• Targeting 3%–6% EBITDA margin for 2026, with mid-single-digit growth in transaction days and continued margin improvement.

• Plan to grow fleet in 2026, with airport business at low-single-digit growth, off-airport mid to high-single-digit, and mobility 10%–20%.

• Secured procurement for Model Year 2026 vehicles, expecting to maintain sub-$300 depreciation per unit per month through 2026.