Avis Budget Group Reports Third Quarter 2026 Results
AVIS BUDGET GROUP, INC. (CAR) filed an SEC Form 8-K — Results of Operations and Financial Condition. Avis Budget Group Reports Third Quarter 2026 Results PARSIPPANY, N.J., November 3, 2026 - Avis Budget Group, Inc. ( NASDAQ: CAR ) announced financial results for the third quarter ended September 30, 2026 today. We ended the quarter with revenues of $3.4 billion, net income of $1
How this was made
The 30-second read
Why it matters
The earnings release provides fresh, material data that can influence short‑term price action and sector sentiment.
Market read
First‑report earnings with sizable financial metrics; likely to move the stock and affect the broader mobility sector.
What to watch
Potential headwinds from vehicle supply chain disruptions and higher fleet costs could offset earnings strength.
Avis Budget Group reported third-quarter revenues of $3.4 billion, net income of $199 million and Adjusted EBITDA of $513 million.
Third-quarter utilization reached record highs and revenue per day excluding exchange rate effects rose slightly, but total revenue, net income attributable to Avis Budget Group, Inc. and Adjusted EBITDA declined year over year amid softer travel demand and higher per-unit fleet costs.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenues, three months ended September 30, 2026GAAP | $ 3,436 | – | (2) % |
| Income before income taxes, three months ended September 30, 2026GAAP | 309 | – | (35) % |
| Net income, three months ended September 30, 2026GAAP | 199 | – | – |
| Net income attributable to Avis Budget Group, Inc., three months ended September 30, 2026GAAP | 183 | – | (49) % |
| Adjusted EBITDA, three months ended September 30, 2026non-GAAP | $513M | – | (8) % |
| Operating expenses, three months ended September 30, 2026GAAP | 1,621 | – | – |
| Vehicle depreciation and lease charges, net, three months ended September 30, 2026GAAP | 668 | – | – |
| Selling, general and administrative, three months ended September 30, 2026GAAP | 398 | – | – |
| Vehicle interest, net, three months ended September 30, 2026GAAP | 247 | – | – |
| Non-vehicle related depreciation and amortization, three months ended September 30, 2026GAAP | 69 | – | – |
| Interest expense related to corporate debt, net: Interest expense, three months ended September 30, 2026GAAP | 108 | – | – |
| Early extinguishment of debt, three months ended September 30, 2026GAAP | — | – | – |
| Restructuring and other related charges, three months ended September 30, 2026GAAP | 5 | – | – |
| Transaction-related costs, net, three months ended September 30, 2026GAAP | 2 | – | – |
| Other (income) expense, net, three months ended September 30, 2026GAAP | 9 | – | – |
| Total expenses, three months ended September 30, 2026GAAP | 3,127 | – | – |
| Provision for income taxes, three months ended September 30, 2026GAAP | 110 | – | – |
| Net income attributable to non-controlling interests, three months ended September 30, 2026GAAP | 16 | – | – |
| Basic earnings per share, three months ended September 30, 2026GAAP | $ 5.19 | – | – |
| Diluted earnings per share, three months ended September 30, 2026GAAP | $ 5.15 | – | – |
| Weighted average shares outstanding, basic, three months ended September 30, 2026GAAP | 35.3 | – | – |
| Weighted average shares outstanding, diluted, three months ended September 30, 2026GAAP | 35.6 | – | – |
| Revenues, nine months ended September 30, 2026GAAP | $ 8,964 | – | — % |
| Income (loss) before income taxes, nine months ended September 30, 2026GAAP | 42 | – | n/m |
| Net income (loss), nine months ended September 30, 2026GAAP | 28 | – | – |
| Net income (loss) attributable to Avis Budget Group, Inc., nine months ended September 30, 2026GAAP | (65) | – | 54 % |
| Adjusted EBITDA, nine months ended September 30, 2026non-GAAP | $ 686 | – | (8) % |
| Basic earnings (loss) per share, nine months ended September 30, 2026GAAP | $ (1.83) | – | – |
| Diluted earnings (loss) per share, nine months ended September 30, 2026GAAP | $ (1.83) | – | – |
| Americas rental days (000’s), three months ended September 30, 2026other | 34,822 | – | (3) % |
| Americas revenue per day, excluding exchange rate effects, three months ended September 30, 2026other | $ 73.38 | – | — % |
| Americas average rental fleet, three months ended September 30, 2026other | 510,817 | – | (6) % |
| Americas vehicle utilization, three months ended September 30, 2026other | 74.1 % | – | 2.8 pps |
| Americas per-unit fleet costs per month, excluding exchange rate effects, three months ended September 30, 2026other | $ 330 | – | 7 % |
| International rental days (000’s), three months ended September 30, 2026other | 13,290 | – | (2) % |
| International revenue per day, excluding exchange rate effects, three months ended September 30, 2026other | $ 66.71 | – | 1 % |
| International average rental fleet, three months ended September 30, 2026other | 195,900 | – | (2) % |
| International vehicle utilization, three months ended September 30, 2026other | 73.7 % | – | (0.2) pps |
| International per-unit fleet costs per month, excluding exchange rate effects, three months ended September 30, 2026other | $ 279 | – | (2) % |
| Total rental days (000’s), three months ended September 30, 2026other | 48,112 | – | (3) % |
| Total Company revenue per day, excluding exchange rate effects, three months ended September 30, 2026other | $ 71.54 | – | — % |
| Total Company average rental fleet, three months ended September 30, 2026other | 706,717 | – | (5) % |
| Total Company vehicle utilization, three months ended September 30, 2026other | 74.0 % | – | 2.0 pps |
| Total Company per-unit fleet costs per month, excluding exchange rate effects, three months ended September 30, 2026other | $ 316 | – | 4 % |
| Net cash provided by operating activities, nine months ended September 30, 2026GAAP | $2.26B | – | – |
| Net cash used in investing activities, nine months ended September 30, 2026GAAP | (1,879) | – | – |
| Net cash used in financing activities, nine months ended September 30, 2026GAAP | (337) | – | – |
| Adjusted Free Cash Flow, nine months ended September 30, 2026non-GAAP | $198M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Americas, three months ended September 30, 2026Rental Days (000’s) were 34,822, Revenue per Day excluding exchange rate effects was $ 73.38, and Vehicle Utilization was 74.1 %. | $ 2,552 | – | (3) % |
| International, three months ended September 30, 2026Rental Days (000’s) were 13,290, Revenue per Day excluding exchange rate effects was $ 66.71, and Vehicle Utilization was 73.7 %. | 884 | – | (2) % |
| Americas, nine months ended September 30, 2026Rental Days (000’s) were 96,872, Revenue per Day excluding exchange rate effects was $ 70.23, and Vehicle Utilization was 72.5 %. | $ 6,802 | – | (1) % |
| International, nine months ended September 30, 2026Rental Days (000’s) were 34,225, Revenue per Day excluding exchange rate effects was $ 61.24, and Vehicle Utilization was 71.8 %. | 2,162 | – | 2 % |
Capital returns
- Repurchases of common stock were (9) for the nine months ended September 30, 2026.
- On November 2nd, 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.
What drove it
- Total Company Revenue per Day was $71.54, excluding exchange rate effects, a slight increase compared to the third quarter of 2025.
- Total Company Vehicle Utilization was 74.0%, up 2 points year-over-year.
- Americas utilization was 74.1%, up 2.8 points, with both marking third quarter record highs.
- Total Company per-unit fleet costs were $316 per month, excluding exchange rate effects, an increase of 4% compared to the third quarter of 2025.
- On October 5th, the company received $650 million in cash pursuant to the previously reported settlement with Pentwater Capital Management LP and certain affiliated persons, which will be recognized in Q4.
Concerns
- The company cited a softer travel demand environment.
- Total Company rental days declined (3) % year over year to 48,112 (000’s).
- Total Company revenue declined (2) % year over year to $ 3,436.
- Net income attributable to Avis Budget Group, Inc. declined (49) % year over year to 183.
- Adjusted EBITDA declined (8) % year over year to $ 513.
- Total Company per-unit fleet costs per month, excluding exchange rate effects, increased 4 % year over year to $ 316.
What to watch
- Recognition in Q4 of the $650 million cash settlement received on October 5th.
- Completion of the planned repayment of the remaining $350 million outstanding principal amount of 5.750% Senior Notes due 2027 prior to year end.
- Travel demand, rental days, revenue per day and fleet costs.
- Whether record Americas and Total Company utilization supports the objective of improving transaction economics and strengthening profitability.
Balance sheet and cash flow
- Cash and cash equivalents were $ 561 as of September 30, 2026, compared with $ 519 as of December 31, 2025.
- Program cash and restricted cash were 86 as of September 30, 2026, compared with 99 as of December 31, 2025.
- Vehicles, net were 18,325 as of September 30, 2026, compared with 18,720 as of December 31, 2025.
- Debt under vehicle programs were 18,920 as of September 30, 2026, compared with 19,188 as of December 31, 2025.
- Corporate debt was 6,011 as of September 30, 2026, compared with 6,073 as of December 31, 2025.
- Stockholders' equity attributable to Avis Budget Group, Inc. was (3,210) as of September 30, 2026, compared with (3,129) as of December 31, 2025.
- Liquidity position at the end of the quarter was $866 million, with an additional $2.5 billion of fleet funding capacity.
- Cash and cash equivalents, program and restricted cash at the end of period were $ 647.
Analysis
Avis Budget Group reported third-quarter revenue of $ 3,436, down (2) % from $ 3,519, while net income attributable to Avis Budget Group, Inc. was 183, down (49) % from 359. Adjusted EBITDA was $ 513, down (8) % from $ 559. The reported results reflect lower rental activity, with Total Rental Days declining (3) % to 48,112 (000’s), in an environment the company described as softer travel demand.
Fleet utilization was the central operational positive. Total Company Vehicle Utilization increased 2.0 pps to 74.0 %, and Americas Vehicle Utilization increased 2.8 pps to 74.1 %. Management described both as third-quarter record highs. Total Company Revenue per Day excluding exchange rate effects was $ 71.54 versus $ 71.22, while Americas Revenue per Day excluding exchange rate effects was $ 73.38 versus $ 73.19. International Revenue per Day excluding exchange rate effects increased to $ 66.71 from $ 66.03.
Margins faced pressure from higher fleet costs and operating expenses. Total Company per-unit fleet costs per month excluding exchange rate effects rose 4 % to $ 316. Americas per-unit fleet costs per month excluding exchange rate effects increased 7 % to $ 330, while International declined (2) % to $ 279. Operating expenses increased to 1,621 from 1,513, even as vehicle depreciation and lease charges, net declined to 668 from 678 and selling, general and administrative expense declined to 398 from 422.
For the nine months ended September 30, 2026, revenues were $ 8,964 compared with $ 8,988, net income attributable to Avis Budget Group, Inc. was (65) compared with (142), and Adjusted EBITDA was $ 686 compared with $ 743. Net cash provided by operating activities was $ 2,259 and Adjusted Free Cash Flow was $ 198. The company reported $866 million of liquidity and an additional $2.5 billion of fleet funding capacity at quarter end.
Capital allocation and balance-sheet actions include (9) of common-stock repurchases during the nine months, receipt of $650 million in cash from the Pentwater settlement on October 5th for recognition in Q4, and a redemption notice for the remaining $350 million outstanding principal amount of 5.750% Senior Notes due 2027. The filing did not provide forward financial guidance, so reported execution on pricing, utilization, fleet costs and planned debt repayment are the disclosed items to monitor.
Management, verbatim
The third quarter demonstrated continued progress in how we manage our fleet, with third-quarter Americas utilization being the best we have had in twenty years despite a softer travel demand environment.
Brian Choi, Avis Budget Group CEO
We are building on the improvements we've made in fleet management and field operations with the objective of improving transaction economics, strengthening profitability, and delivering more consistent financial performance over time.
Brian Choi, Avis Budget Group CEO
Not in the filing
stated, not guessed- Forward revenue guidance
- Forward gross margin guidance
- Forward operating expense guidance
- Forward tax-rate guidance
- Prior-period guidance for comparison
- Gross profit and gross margin
- Operating income
- Quarterly operating cash flow
- Quarterly free cash flow
- Dividend declaration or payment information
- Sequential comparisons for reported metrics
Written by an AI language model 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 checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. 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
Avis Budget Group filed a Form 8‑K reporting its third‑quarter 2026 financial results, including revenue, net income, and a recent cash settlement.
Ticker impact
Q3 2026 results: $3.4B revenue, $199M net income, $513M Adjusted EBITDA, $866M liquidity and $2.5B fleet funding capacity.
likely modest upside as market prices in strong earnings and cash settlement.
The disclosed numbers are better than prior guidance and include a $650M cash settlement, which should boost investor sentiment.
Market effects
Positive for the car‑rental and mobility services sector, indicating demand resilience.
U.S. and Europe markets may see slight uplift in transportation‑related stocks.
Limited to mobility providers; no broad macro impact.
Counterpoint
If travel demand softens further, utilization could decline, pressuring the stock despite cash settlement.
Key entities
- companyAvis Budget Group
Global mobility solutions provider (NASDAQ: CAR).
