Avis Budget Group — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total company revenue for the third quarter ended September 30, 2026, was $3.436 billion, a 2% decrease from $3.519 billion in the same period in 2025; year-to-date revenue was $8.964 billion, flat compared to $8.988 billion in 2025.
• Net income attributable to Avis Budget Group, Inc. was $183 million for the quarter, down 49% from $359 million in 2025; year-to-date net income was a loss of $65 million compared to a loss of $142 million in 2025.
• Adjusted EBITDA was $513 million for the quarter, an 8% decrease from $559 million in 2025; year-to-date Adjusted EBITDA was $686 million, an 8% decrease from $743 million in 2025.
• Income before income taxes was $309 million for the quarter, down 35% from $473 million in 2025; year-to-date income was $42 million compared to a loss of $189 million in 2025.
• Cash and cash equivalents were $561 million as of September 30, 2026, compared to $519 million as of December 31, 2025.
• Debt under vehicle programs was $18.920 billion as of September 30, 2026, compared to $19.188 billion as of December 31, 2025.
• Corporate debt was $6.011 billion as of September 30, 2026, compared to $6.073 billion as of December 31, 2025.
• Stockholders' equity attributable to Avis Budget Group, Inc. was a deficit of $3.210 billion as of September 30, 2026, compared to a deficit of $3.129 billion as of December 31, 2025.
• Net cash provided by operating activities for the nine months ended September 30, 2026, was $2.259 billion.
• Adjusted Free Cash Flow for the nine months ended September 30, 2026, was $198 million.

Guidance and Future Outlook:

• No specific forward-looking financial guidance or quantitative future outlook targets were provided in the press release.
• Management stated the objective is to improve transaction economics, strengthen profitability, and deliver more consistent financial performance over time.

Business Segments and Product Lines:

• Americas segment revenue was $2.552 billion for the quarter (down 3% from 2025) and $6.802 billion year-to-date (down 1% from 2025).
• International segment revenue was $884 million for the quarter (down 2% from 2025) and $2.162 billion year-to-date (up 2% from 2025).
• Americas Adjusted EBITDA was $365 million for the quarter (down 8% from 2025) and $522 million year-to-date (down 5% from 2025).
• International Adjusted EBITDA was $180 million for the quarter (down 5% from 2025) and $240 million year-to-date (down 11% from 2025).
• Corporate and other Adjusted EBITDA was a loss of $32 million for the quarter (down 10% from 2025) and a loss of $76 million year-to-date (down 1% from 2025).
• Total Company Revenue per Day was $71.54 (excluding exchange rate effects) for the quarter, a slight increase compared to the third quarter of 2025.
• Total Company Vehicle Utilization was 74.0% for the quarter, up 2.0 percentage points year-over-year; Americas utilization was 74.1%, up 2.8 percentage points.
• Total Company per-unit fleet costs were $316 per month (excluding exchange rate effects) for the quarter, an increase of 4% compared to the third quarter of 2025.

Market and Competitive Landscape:

• The press release notes a "softer travel demand environment" despite strong utilization performance.
• The company operates in approximately 180 countries with approximately 10,000 rental locations.
• The company identifies high competition in the mobility industry, including from new companies or technology, as a risk factor.

Risks and Challenges:

• Risks include high competition, changes in fleet costs due to inflation, trade disputes, tariffs, or manufacturer recalls.
• Risks include supply chain disruptions, semiconductor shortages, and changes in the used vehicle market.
• Risks include volatility in travel demand, economic conditions, and geopolitical events such as military conflicts in the Middle East and Eastern Europe.
• Risks include changes in fuel prices, labor costs, and regulatory or legal changes regarding privacy, labor, and tax.
• Risks include indebtedness, interest rate increases, and the ability to meet financial covenants.
• Risks include cybersecurity breaches and disruptions to communication networks.

Management Commentary and Tone:

• Brian Choi, CEO, stated the third quarter demonstrated "continued progress in how we manage our fleet," with Americas utilization being the best in twenty years despite softer demand.
• Management emphasized building on improvements in fleet management and field operations to improve transaction economics and profitability.

Other Key Points:

• On October 5, 2026, the company received $650 million in cash pursuant to a settlement with Pentwater Capital Management LP, to be recognized in Q4.
• On November 2, 2026, the company delivered a redemption notice to repay the remaining $350 million outstanding principal amount of its 5.750% Senior Notes due 2027 prior to year-end.
• Liquidity position at the end of the quarter was $866 million, with an additional $2.5 billion of fleet funding capacity.
• The company hosts a conference call on November 4, 2026, at 8:30 a.m. (ET) to discuss results.
• The company operates brands including Avis, Budget, and Zipcar, and licenses these trademarks in areas where it does not operate directly.