HERTZ GLOBAL HOLDINGS, INC (HTZ): Results of Operations and Financial Condition
HERTZ GLOBAL HOLDINGS, INC (HTZ) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 HERTZ ANNOUNCES Q2 2026 RESULTS, HIGHLIGHTS STRONG COMMERCIAL MOMENTUM AND CONTINUED TRANSFORMATION PROGRESS ------------------------------------------------------------------------------------------------------------------ “This quarter’s results reflect the discipl
How this was made
The 30-second read
Why it matters
Traders can update expectations for full-year RPU and Net DPU targets based on disclosed Q2 performance, revised guidance adherence, and liquidity position.
Market read
The filing provides fresh, decision-grade operating and financial metrics (including adjusted EBITDA vs revised guidance, liquidity, and recall headwind magnitude) that can drive near-term positioning in HTZ.
What to watch
DOE per day was slightly above expectations due to sale-leaseback expenses and variable costs; normalization helps, but it flags potential margin pressure if revenue mix or recall days worsen.
Hertz reported 10% revenue growth, returned to GAAP profitability, and delivered Adjusted Corporate EBITDA above the top end of revised guidance.
Revenue, pricing, utilization, GAAP net income, and Adjusted Corporate EBITDA improved year over year, while elevated recalls, higher variable costs, higher sale leaseback expenses, and higher depreciation remained material headwinds.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenuesGAAP | $2,396 million | – | 10% |
| Net income (loss)GAAP | $64 million | – | NM |
| Diluted earnings (loss) per shareGAAP | $0.05 | – | NM |
| Net income (loss) marginGAAP | 3% | – | – |
| Adjusted net income (loss)non-GAAP | $(47) million | – | 48% |
| Adjusted diluted earnings (loss) per sharenon-GAAP | $(0.11) | – | 62% |
| Adjusted Corporate EBITDAnon-GAAP | $81 million | – | NM |
| Adjusted Corporate EBITDA Marginnon-GAAP | 3% | – | – |
| Average Vehiclesother | 539,118 | – | (1)% |
| Average Rentable Vehiclesother | 517,835 | – | 1% |
| Total Vehicle Utilizationother | 79% | – | – |
| Operational Vehicle Utilizationother | 82% | – | – |
| Transaction Daysother | 38,646 thousand | – | —% |
| Total RPDother | $61.98 | – | 9% |
| Total RPU Per Monthother | $1,542 | – | 8% |
| Depreciation Per Unit Per Monthother | $302 | – | 18% |
| DOE per Transaction Dayother | $37.62 | – | 4% |
| Adjusted DOE per Transaction Daynon-GAAP | $37.49 | – | 4% |
| Recall activity year-over-year increaseother | approximately 300% | – | – |
| Average vehicles impacted by recallsother | nearly 15,000 vehicles | – | – |
| Estimated year-over-year impact of recalls to GAAP Net IncomeGAAP | $27 million | – | – |
| Estimated year-over-year impact of recalls to Adjusted Corporate EBITDAnon-GAAP | approximately $30 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Americas RAC SegmentContinued commercial momentum and strong pricing performance. | $1,918 million | – | 10% |
full year outlook
- NoteFull-year RPU is expected to trend above its North Star target of $1,500.
- NoteHertz expects to achieve its Net DPU target of at or below $300 for the full year.
What drove it
- Revenue increased 10% year over year despite operating with a 1% smaller fleet.
- RPU increased 8% year over year and RPD increased 9% year over year through strong pricing performance.
- The Company cited commercial execution, supply discipline at airports, and a small incremental 1 bonus from the World Cup.
- Total Utilization was 79%, up 80 basis points year over year; excluding elevated recalls, Total Utilization was 81%, up 190 basis points compared with the second quarter of 2025.
- The RPD-to-DOE per Day spread improved 17% year over year, the third consecutive quarter of year-over-year spread improvement.
- Hertz's U.S. core fleet consisted of approximately 94% model year 2025 and 2026 vehicles.
Concerns
- Recall activity was approximately 300% higher year over year and impacted an average of nearly 15,000 vehicles.
- The estimated year-over-year impact of recalls was $27 million to GAAP Net Income and approximately $30 million to Adjusted Corporate EBITDA.
- Depreciation Per Unit Per Month increased 18% year over year to $302.
- Adjusted DOE per Day increased 4% year over year, driven primarily by higher revenue-related variable costs and higher expenses related to sale leaseback transactions.
- Operational Vehicle Utilization was 82%, compared with 83% in the prior-year period.
- The Company reported an adjusted net loss of $(47) million and Adjusted Diluted EPS of $(0.11).
What to watch
- Full-year RPU performance relative to the North Star target of $1,500.
- Progress toward the full-year Net DPU target of at or below $300.
- The effect of elevated recalls on utilization, GAAP Net Income, and Adjusted Corporate EBITDA.
- Whether Adjusted DOE per Day improves after normalizing for revenue-related variable costs, sale leaseback expenses, and recall-related Days impact.
- Oro's first AV partnership, which is expected to begin operations later this year in the San Francisco Bay Area.
Balance sheet and cash flow
- Hertz ended the quarter with $984 million of liquidity, including cash and cash equivalents and available capacity under its revolving credit facility.
- In June, the Company completed the issuance of Exchangeable First Lien Notes Due 2030 for a total of $350 million.
- The Company added an additional $30 million of notes in July as part of the exercising of the greenshoe.
- Pro forma liquidity post transaction was slightly over $1 billion.
Analysis
Hertz delivered a stronger second quarter, with total revenues of $2,396 million, up 10%, despite Average Vehicles declining 1% to 539,118. Pricing was the central contributor: Total RPD rose 9% to $61.98 and Total RPU Per Month rose 8% to $1,542. Management attributed the outcome to commercial execution, airport supply discipline, and a small incremental 1 bonus from the World Cup.
Profitability improved substantially from the prior-year loss. GAAP net income was $64 million, compared with a net loss of $(294) million, and diluted GAAP EPS was $0.05, compared with $(0.95). Adjusted Corporate EBITDA rose to $81 million from $18 million and was above the top end of revised guidance. However, adjusted results remained negative, with Adjusted net income of $(47) million and Adjusted diluted EPS of $(0.11).
The operating mix showed better utilization and pricing but persistent cost and fleet-pressure items. Total Vehicle Utilization increased to 79% from 78%, while Operational Vehicle Utilization declined to 82% from 83%. Depreciation Per Unit Per Month increased 18% to $302, and Adjusted DOE per Transaction Day increased 4% to $37.49. The RPD-to-DOE per Day spread nevertheless improved 17% year over year, marking the third consecutive quarter of year-over-year improvement.
Recalls remained a meaningful constraint. Recall activity was approximately 300% higher year over year, affected an average of nearly 15,000 vehicles, and was estimated to reduce GAAP Net Income by $27 million and Adjusted Corporate EBITDA by approximately $30 million year over year. The Company said its U.S. core fleet is approximately 94% model year 2025 and 2026 vehicles, positioning the fleet for better economics than prior model year vehicles.
Liquidity was $984 million at quarter end, in line with prior guidance of just under $1 billion. Hertz issued $350 million of Exchangeable First Lien Notes Due 2030 in June and added $30 million of notes in July through the greenshoe, resulting in pro forma liquidity slightly over $1 billion. For the full year, management expects RPU to trend above its $1,500 North Star target and expects Net DPU of at or below $300. These targets place attention on sustaining pricing while bringing depreciation below the second-quarter level and managing recall-related utilization pressure.
Management, verbatim
This quarter’s results reflect the disciplined execution of our strategy and our consistent commercial strength.
Gil West, Chief Executive Officer of Hertz
Our performance demonstrates the progress we're making in transforming the business and delivering tangible operational improvements across the company. Revenue increased 10% year over year despite operating with a 1% smaller fleet, driven by our strongest second quarter RPD on record, excluding the extraordinary market conditions in 2022.
Gil West, Chief Executive Officer of Hertz
To unlock long-term opportunities, we’re strengthening our core business while building a platform for growth across four strategic areas: Rent-a-Car, Service, Fleet, and Mobility. We are applying our commercial, operational, and fleet management capabilities across these areas to drive greater efficiency, establish diverse engines of growth, and create long-term value.
Gil West, Chief Executive Officer of Hertz
Not in the filing
stated, not guessed- International RAC Segment revenue and operating metrics are not available because the supplied filing text ends at the International RAC Segment heading.
- GAAP gross profit and gross margin were not provided in the supplied text.
- GAAP operating income (loss) and operating margin were not provided in the supplied text.
- Total operating expenses were not provided in the supplied text.
- Cash and cash equivalents balance was not separately provided.
- Total debt and debt maturities were not provided in the supplied text.
- Operating cash flow and free cash flow were not provided in the supplied text.
- Share repurchases and dividends were not provided in the supplied text.
- A full current-quarter balance sheet was not provided in the supplied text.
- Revenue, gross margin, operating expenses, and tax-rate guidance were not provided.
- Prior-quarter comparisons were not provided for the reported consolidated metrics.
- Prior outlook section was not provided.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC Form 8-K with Exhibit 99.1 covering Hertz’s Q2 2026 results and transformation progress.
Ticker impact
Hertz reported Q2 2026 results with revenue up 10% YoY, GAAP net income of $64M, and adjusted EBITDA above the top end of revised guidance.
Likely positive bias for HTZ into the next session, with volatility around recall-related cost/vehicle availability updates.
The filing discloses multiple decision-relevant datapoints: revenue, GAAP and adjusted EPS, adjusted EBITDA vs revised guidance, utilization, liquidity, and explicit recall headwind magnitude.
Market effects
Signals continued pricing strength and operating leverage in the car rental sector, but highlights recall-driven utilization and cost sensitivity.
Primarily US-focused operational metrics (U.S. core fleet composition, utilization, liquidity).
Mentions global platform initiatives (Rent-a-Car, Service, Fleet, Mobility) and an AV partnership progressing in the San Francisco Bay Area.
Counterpoint
Despite the EBITDA beat, adjusted net loss and elevated recall activity (300% YoY, ~15,000 vehicles impacted) could cap upside if costs re-accelerate.
Key entities
- companyHertz Global Holdings, Inc.
Reported Q2 2026 revenue, profitability metrics, utilization, liquidity, and transformation/platform progress in the 8-K.
- personGil West
CEO quoted on disciplined execution, commercial momentum, and transformation progress.
- operating affiliateOro Mobility
Reported to be gaining momentum with millions of miles driven and an AV partnership expected to begin later in 2026.
