Hertz Global (HTZ), a leading vehicle rental company with a vast international network, reported its financial results for the second quarter on August 7, 2025. The company delivered a Non-GAAP earnings per share (EPS) loss of $(0.34), outperforming consensus expectations of a $(0.41) non-GAAP loss. Revenue (GAAP) reached $2,185 million, surpassing analyst estimates of $2,156.98 million (GAAP) but representing a 7% decline from the same quarter last year. Notably, Adjusted Corporate EBITDA improved from a significant loss a year ago to $1 million, marking the first positive result for this metric (Adjusted Corporate EBITDA) in nearly two years. Despite operational gains, revenue and rental volumes continued to contract. The quarter reflects progress in cost controls and fleet management, but ongoing top-line pressure remains a substantial concern for the business.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | ($0.34) | ($0.41) | ($1.44) | 76.4 % |
| Revenue | $2,185 million | $2,157 million | $2,353 million | (7.1 %) |
| Adjusted Corporate EBITDA | $1 million | ($460 million) | NM | |
| Vehicle Utilization | 83 % | 80 % | 3.0 pp | |
| Depreciation Per Unit Per Month | $251 | $595 | (57.8 % decrease) |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Overview of Hertz Global’s Business and Its Key Focus Areas
Hertz Global operates one of the world's largest vehicle rental networks, serving both leisure and business travelers through its core brands: Hertz, Dollar, and Thrifty. The company manages a fleet that spans more than 11,200 locations in 160 countries, offering cars and vans for short- and long-term rental needs.
In recent periods, Hertz has concentrated on several core areas: optimizing fleet management, elevating customer experience through technology, forming strategic partnerships in the mobility sector, and ensuring compliance with regulatory and environmental standards. Success for Hertz relies on its ability to keep a modern, cost-effective fleet, deliver consistent brand value across its network, and adapt to evolving traveler expectations through digital solutions and efficient operations.
Key Developments in the Quarter: Financials, Operations, and Strategy
The second quarter saw substantial operational progress, even as Total revenue (GAAP) was $2,185 million. Management reported a sharp improvement in Adjusted Corporate EBITDA, which swung to a $1 million profit after an extended period of losses. Net income (GAAP) loss narrowed to $(294) million, a marked improvement from $(865) million in GAAP net income (loss) for Q2 2024. Several operational drivers contributed to these results, including rigorous cost controls and fleet management initiatives that reduced direct vehicle and operating expenses to $1,394 million (GAAP).
A critical metric for the vehicle rental industry is depreciation per unit per month, or DPU, which measures how quickly a company loses value on its vehicles. For the quarter, DPU dropped to $251 from $595 a year ago, beating the company's target and reflecting the benefits of securing a newer fleet at pre-tariff prices. Nearly 80% of Hertz's U.S. rental fleet was less than a year old. Fleet size was trimmed by 6% compared to Q2 2024, with Global average vehicles totaled 542,532. This smaller, younger fleet helped improve vehicle utilization—how often each vehicle is rented—to 83%, up 3 percentage points from Q2 2024.
Customer experience also improved, with the global Net Promoter Score—an industry measure of customer satisfaction and loyalty—rose by 11 points year over year. The company credits digital initiatives such as faster check-in, AI-driven vehicle sales pricing, and new systems for revenue management with driving both customer satisfaction and efficiency. Notably, Retail car sales reached their highest Q2 volume in five years, with Hertz Car Sales (its direct-to-consumer vehicle sales channel) helping capture strong used car prices. This trend has helped with vehicle disposal costs and overall profitability.
From a segment perspective, the Americas segment (which remains the largest) continued to face pressure, with Americas RAC segment revenues (GAAP) were down 10% and Transaction days—each period a car is rented—fell 4% year-over-year. Meanwhile, international operations showed improvement. International revenue increased by 5%, utilization rose to 81% in the International segment, and Transaction days increased by 3% for the International RAC segment compared to Q2 2024. Adjusted EBITDA turned positive in both regions, with $42 million in the Americas and $42 million internationally after prior year losses. Company-wide, revenue per transaction day (RPD) dropped 5% to $55.65, and Revenue per unit per month (RPU) declined 2% to $1,400.
Hertz continued to invest in technology to improve operations and service. Recent initiatives include leveraging artificial intelligence for pricing and vehicle inspection, enhancing mobile app functionality, and working with partners like Amadeus to upgrade its revenue management system. These technology-driven changes aim to boost utilization, streamline vehicle rotation, and create a more seamless rental experience. The company also highlighted the importance of its “Buy Right, Hold Right, Sell Right” fleet strategy, which aligns vehicle acquisition, holding period, and sales channel choice to maximize returns while reducing costs.
On the balance sheet, Liquidity remained robust at over $1.45 billion. However, Net debt (non-GAAP) reached $16,720 million, up from $15,416 million at the end of 2024. Adjusted free cash flow turned positive at $327 million, reflecting better fleet economics and disciplined spending. There were no major new strategic partnerships or regulatory developments announced this quarter, but ongoing mobility initiatives and sustainability efforts remain focal points as Hertz adapts to changes in the industry.
Looking Ahead: Financial Outlook and Watch Points
Disclosure focused instead on reaffirming existing operational targets, such as sustaining DPU below $300, aiming for RPU above $1,500, and managing direct operating expenses per day in the low 30s. These "North Star" targets are intended to guide longer-term progress but fall short of a concrete financial forecast for the near term.
The focus remains on operational discipline, technological upgrades, and adaptation to fast-changing market conditions. HTZ does not currently pay a dividend.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
