Hertz — Q3 2026 Earnings Summary

Financial Performance:

• Total revenue for Q3 2026 was $2.617 billion, a 6% increase year-over-year (YoY) from $2.478 billion.
• GAAP net income was $116 million, down from $184 million in Q3 2025; Diluted GAAP EPS was $0.20 compared to $0.42.
• Adjusted net income was $67 million, up 26% YoY from $53 million; Adjusted Diluted EPS was $0.14, flat YoY.
• Adjusted Corporate EBITDA was $233 million, a 15% YoY increase from $203 million, representing the company's best quarter in three years.
• Adjusted Corporate EBITDA margin improved to 9% from 8% in the prior year period.
• Net Depreciation Per Unit (Net DPU) was $285 per month, consistent with expectations and up 2% YoY from $279.
• Direct Operating Expense (DOE) per day increased 6% YoY to $37.76; Adjusted DOE per day increased 5% YoY to $37.72.
• Revenue Per Day (RPD) increased 5% YoY to $64.06 globally, with an 8% increase in the U.S. core business.
• Revenue Per Unit (RPU) increased 5% YoY to $1,639 per month.
• The spread between RPD and Adjusted DOE per day improved by approximately 5% YoY, or $1.36 globally.
• Cash and cash equivalents were $531 million; total liquidity including restricted cash and available credit facility capacity was approximately $946 million.
• Total debt was $17.911 billion as of September 30, 2026, up from $17.054 billion as of December 31, 2025.

Business Segments and Product Lines:

• Americas RAC Segment: Revenue was $2.045 billion (up 7% YoY); Adjusted EBITDA was $188 million (up 23% YoY); Adjusted EBITDA margin was 9%.
• International RAC Segment: Revenue was $572 million (up 1% YoY); Adjusted EBITDA was $94 million (down 9% YoY); Adjusted EBITDA margin was 16%.
• Rental: Hertz signed an agreement with an existing Baltic franchise partner to transition operations in the Czech Republic and Slovakia to a franchise model.
• Service: Vehicle transportation capabilities were extended to third-party customers, with approximately 50,000 vehicle moves expected for the year.
• Fleet: Launched "Test Drive+," an enhanced iteration of the Rent2Buy program, at neighborhood rental locations.
• Mobility: Oro Mobility secured an $80 million strategic equity investment from a consortium of investors; Oro has logged over 10 million miles and has an active autonomous vehicle (AV) partnership in the San Francisco Bay Area. Hertz retains majority economic ownership of Oro.

Other Key Points:

• Hertz aligned its organizational structure in September 2026 to its platform with dedicated leaders accountable for Rental, Service, Fleet, and Mobility.
• The U.S. core fleet has an average age of nine months, the youngest in 12 years.
• The company revised definitions for Adjusted Net Income and Adjusted Corporate EBITDA effective Q1 2026 to adjust for realized (gains) losses from financial instruments, share-based compensation, and foreign currency (gains) losses.
• The company changed its definition of Average Rentable Vehicles and Average Vehicles to use a daily average rather than a simple average effective Q1 2026.
• No reconciliation is provided for Adjusted Corporate EBITDA for the quarter ended December 31, 2026, or fiscal years 2026 and 2027 due to uncertainty regarding the change in fair value of Public Warrants.
• Total vehicle utilization remained flat at 81% YoY; operational vehicle utilization was 83% (down from 84%).
• Nine months ended September 30, 2026: Revenue was $7.017 billion (up 8% YoY); GAAP net loss was $153 million; Adjusted net loss was $204 million; Adjusted Corporate EBITDA was $153 million (up from a loss of $82 million).