Hertz Global (HTZ) Q4 2025 earnings summary

Executive summary

• Full-year 2025 revenue reached $8.5B, with Q4 revenue at $2.0B, the strongest in nearly two years, despite a 3% smaller fleet and significant external headwinds totaling over $100M.

• Adjusted EBITDA improved by over $1B year-over-year for 2025, with Q4 Adjusted Corporate EBITDA at $(205)M, a $150M improvement year-over-year, reflecting better cost control and lower depreciation.

• Customer satisfaction surged nearly 50% year-over-year, with Net Promoter Score at record levels, driven by improvements in rental ease, fleet quality, and service reliability.

• Completed fleet rotation, secured model year 2026 vehicles at target prices and volumes, achieving the lowest average fleet age in nearly a decade.

• Profitability improved by over $2B year-over-year, with net loss narrowing to $194M in Q4 and $747M for 2025; diluted EPS improved to $(0.72) for Q4 and $(2.43) for the year.

Financial highlights

• Q4 2025 revenue was $2.0B, flat year-over-year, with RPD down ~1% but nearly flat excluding prior year loyalty adjustment.

• Adjusted Corporate EBITDA for Q4 was $(205)M, a 43% improvement from Q4 2024, but $100M below target due to vehicle carrying costs and non-cash depreciation charges.

• Depreciation per unit per month (DPU) was $330 in Q4 and $300 for the year, a 44% year-over-year improvement.

• Adjusted DOE per transaction day improved 6% year-over-year, reaching $36.39.

• Liquidity at year-end was ~$1.5B, with access to over $1B in additional enhancements; net debt at year-end was $16.2B.

Outlook and guidance

• Q1 2026 revenue and RPD trends are positive year-over-year, with Q1 revenue expected up mid-single digits and fleet growth in low single digits.

• Q1 2026 margin expected in negative high single-digit to low double-digit range, a 600-800 basis point improvement year-over-year.

• Full-year 2026 guidance maintained at 3%-6% Adjusted EBITDA margin; targeting $1B Adjusted EBITDA in 2027.

• Liquidity expected to trough below $1B at end of Q2 2026, then recover above $1B by year-end as free cash flow improves.

• Focus remains on expanding off-airport and mobility businesses, accelerating revenue growth, and maintaining cost discipline.