Financial Performance - Q2 2025 - Revenues decreased slightly to $3,039 million, a marginal decrease from $3,048 million in 2Q 2024[8] - Rental days remained almost flat at 44,945 thousand, compared to 45,034 thousand in 2Q 2024[8] - Revenue per day excluding exchange rate effects decreased by 1% to $6706 from $6769 in 2Q 2024[8] - Adjusted EBITDA increased by 29% to $277 million from $214 million in 2Q 2024[8] Regional Performance - Americas revenues decreased by 1% to $2,332 million from $2,361 million in 2Q 2024, but improved sequentially throughout the quarter[9] - International revenues excluding exchange rate effects decreased by 1% to $682 million from $687 million in 2Q 2024, driven by Global Rightsizing initiatives[10] - International Adjusted EBITDA increased significantly by 71% to $82 million from $48 million in 2Q 2024, driven by segmentation strategy and lower fleet costs[10] Fleet and Utilization - Average rental fleet decreased by 1% to 698,633 vehicles from 705,145 in 2Q 2024[8] - Vehicle utilization improved to 707%, a 05 percentage point increase from 702% in 2Q 2024[8] - Per-unit fleet costs per month excluding exchange rate effects decreased by 13% to $300 from $346 in 2Q 2024[8] Liquidity and Outlook - Adjusted Free Cash Flow was $(475) million, reflecting a decision to invest approximately $500 million of corporate debt into vehicle programs, expected to reverse by year-end[11] - The company anticipates full year 2025 Adjusted EBITDA to be approximately $900 million - $1,000 million and per-unit fleet costs per month to be approximately $310-$320[16]

Core Insights - Avis Budget Group reported revenue of $3.04 billion for the quarter ended June 2025, a decrease of 0.3% year-over-year, and EPS of $0.10, down from $0.41 in the same quarter last year [1] - The reported revenue fell short of the Zacks Consensus Estimate of $3.07 billion, resulting in a surprise of -0.9%, while the EPS surprise was -95.05% against a consensus estimate of $2.02 [1] Financial Performance Metrics - Avis Budget's shares have returned +21.9% over the past month, outperforming the Zacks S&P 500 composite's +3.6% change [3] - The company currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3] Cost and Revenue Analysis - In the Americas, per-unit fleet costs were reported at $312 per month, lower than the estimated $362.8 [4] - Internationally, per-unit fleet costs were $278, compared to the estimated $296 [4] - Total rental days were reported at 44,945, slightly below the estimated 45,546.19 [4] - Geographic revenue for the Americas was $2.33 billion, down 1.2% year-over-year and below the estimated $2.37 billion [4] - International geographic revenue was $707 million, representing a year-over-year increase of +2.9% and slightly above the estimated $702.26 million [4]

Group 1: Earnings Performance - Avis Budget Group reported quarterly earnings of $0.1 per share, missing the Zacks Consensus Estimate of $2.02 per share, and down from $0.41 per share a year ago, representing an earnings surprise of -95.05% [1] - The company posted revenues of $3.04 billion for the quarter ended June 2025, missing the Zacks Consensus Estimate by 0.9%, and compared to year-ago revenues of $3.05 billion [2] - Over the last four quarters, Avis Budget has surpassed consensus EPS estimates only once [2] Group 2: Stock Performance and Outlook - Avis Budget shares have increased approximately 155.6% since the beginning of the year, significantly outperforming the S&P 500's gain of 8.6% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $10.12 on revenues of $3.51 billion, and $2.53 on revenues of $11.72 billion for the current fiscal year [7] Group 3: Industry Context - The Zacks Industry Rank indicates that the Transportation - Services sector is currently in the bottom 17% of over 250 Zacks industries, suggesting potential underperformance compared to higher-ranked industries [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5] - The estimate revisions trend for Avis Budget was unfavorable ahead of the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6]

```markdown [Q2 2025 Earnings Overview](index=1&type=section&id=Q2%202025%20Earnings%20Overview) A comprehensive overview of Avis Budget Group's Q2 2025 financial performance, strategic initiatives, and operational highlights [Consolidated Financial Highlights](index=1&type=section&id=Consolidated%20Financial%20Highlights) Avis Budget Group reported Q2 2025 revenues of **$3.0 billion**, with net income of **$5 million** and Adjusted EBITDA of **$277 million** Q2 2025 Consolidated Financial Results | Metric | Q2 2025 (Millions) | | :----------------- | :----------------- | | Revenues | $3,000 | | Net Income | $5 | | Adjusted EBITDA | $277 | [Strategic Announcements & Operational Highlights](index=1&type=section&id=Strategic%20Announcements%20%26%20Operational%20Highlights) The company launched Avis First, a premium car rental product, and announced a multi-year partnership with Waymo for autonomous ride-hailing operations in Dallas, providing end-to-end fleet management services. Operationally, Americas Adjusted EBITDA increased by **18%** and International Adjusted EBITDA by **71%** year-over-year, driven by lower fleet costs and improved utilization - Launch of Avis First, a premium product offering frictionless curbside pick-up and drop-off with dedicated concierge and premium vehicles[4](index=4&type=chunk) - Strategic partnership with Waymo to launch fully autonomous ride-hailing operations in Dallas, Texas, with Avis providing end-to-end fleet management services[4](index=4&type=chunk) Q2 2025 Segment Adjusted EBITDA (YoY Change) | Segment | Q2 2025 (Millions) | Q2 2024 (Millions) | % Change | | :---------- | :----------------- | :----------------- | :------- | | Americas | $220 | $186 | 18% | | International | $82 | $48 | 71% | [Company Information](index=2&type=section&id=Company%20Information) An overview of Avis Budget Group's global operations, brand portfolio, and market presence [About Avis Budget Group](index=2&type=section&id=ABOUT%20AVIS%20BUDGET%20GROUP) Avis Budget Group is a leading global provider of mobility solutions through its Avis, Budget, and Zipcar brands, operating approximately 10,250 rental locations in about 180 countries, with direct operations primarily in North America, Europe, and Australasia - Avis Budget Group is a global provider of mobility solutions with Avis, Budget, and Zipcar brands, operating approximately **10,250** rental locations in **180** countries[8](index=8&type=chunk) [Financial Performance Details](index=6&type=section&id=Financial%20Performance%20Details) Detailed financial statements, key operational metrics, and cash flow analysis for Q2 and year-to-date 2025 [Summary Data Sheet](index=6&type=section&id=SUMMARY%20DATA%20SHEET) The summary data sheet provides a snapshot of key financial figures for Q2 and YTD 2025 compared to 2024, including revenues, net income, Adjusted EBITDA, and balance sheet items like cash, vehicles, and debt Income Statement and Other Items (Q2 & YTD) | Metric | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2025 | % Change | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | % Change | | :------------------------------------------ | :------------------------------- | :------------------------------- | :------- | :----------------------------- | :----------------------------- | :------- | | Revenues | $3,048 | $3,039 | — % | $5,469 | $5,599 | (2)% | | Income (loss) before income taxes | $27 | $15 | (44)% | $(662) | $(115) | n/m | | Net income (loss) attributable to Avis Budget Group, Inc. | $14 | $4 | (71)% | $(501) | $(100) | n/m | | Adjusted EBITDA | $214 | $277 | 29 % | $184 | $226 | (19)% | Balance Sheet Items (As of June 30, 2025 vs. December 31, 2024) | Metric | As of June 30, 2025 | As of December 31, 2024 | | :------------------------------------------ | :------------------ | :---------------------- | | Cash and cash equivalents | $541 | $534 | | Program cash and restricted cash | $62 | $63 | | Vehicles, net | $20,510 | $17,619 | | Debt under vehicle programs | $19,914 | $17,536 | | Corporate debt | $6,077 | $5,393 | | Stockholders' equity attributable to Avis Budget Group, Inc. | $(2,745) | $(2,327) | Segment Results (Q2 & YTD) | Segment | Three Months Ended June 30, 2025 Revenues | Three Months Ended June 30, 2024 Revenues | % Change | Six Months Ended June 30, 2025 Revenues | Six Months Ended June 30, 2024 Revenues | % Change | | :---------- | :---------------------------------------- | :---------------------------------------- | :------- | :-------------------------------------- | :-------------------------------------- | :------- | | Americas | $2,332 | $2,361 | (1)% | $4,239 | $4,354 | (3)% | | International | $707 | $687 | 3 % | $1,230 | $1,245 | (1)% | | Total Company | $3,039 | $3,048 | — % | $5,469 | $5,599 | (2)% | | | | | | | | | | Segment | Three Months Ended June 30, 2025 Adjusted EBITDA | Three Months Ended June 30, 2024 Adjusted EBITDA | % Change | Six Months Ended June 30, 2025 Adjusted EBITDA | Six Months Ended June 30, 2024 Adjusted EBITDA | % Change | | :---------- | :----------------------------------------------- | :----------------------------------------------- | :------- | :--------------------------------------------- | :--------------------------------------------- | :------- | | Americas | $220 | $186 | 18 % | $153 | $230 | (33)% | | International | $82 | $48 | 71 % | $79 | $33 | 139 % | | Corporate and other | $(25) | $(20) | (25)% | $(48) | $(37) | (30)% | | Total Company | $277 | $214 | 29 % | $184 | $226 | (19)% | [Condensed Consolidated Statements of Operations](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) The condensed consolidated statements of operations detail revenues and various expense categories, leading to net income (loss) and earnings per share for both the three and six months ended June 30, 2025 and 2024 Condensed Consolidated Statements of Operations (Unaudited) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenues | $3,039 | $3,048 | $5,469 | $5,599 | | Operating Expenses | $1,526 | $1,532 | $2,879 | $2,876 | | Vehicle depreciation and lease charges, net | $636 | $733 | $1,691 | $1,369 | | Selling, general and administrative | $396 | $348 | $704 | $673 | | Vehicle interest, net | $229 | $244 | $439 | $483 | | Non-vehicle related depreciation and amortization | $60 | $58 | $116 | $119 | | Interest expense related to corporate debt, net | $110 | $88 | $207 | $171 | | Early extinguishment of debt | $3 | $1 | $3 | $1 | | Restructuring and other related charges | $59 | $14 | $81 | $17 | | Transaction-related costs, net | — | $1 | — | $2 | | Other (income) expense, net | $5 | $2 | $11 | $3 | | Total expenses | $3,024 | $3,021 | $6,131 | $5,714 | | Income (loss) before income taxes | $15 | $27 | $(662) | $(115) | | Provision for (benefit from) income taxes | $10 | $12 | $(163) | $(17) | | Net income (loss) | $5 | $15 | $(499) | $(98) | | Less: Net income attributable to non-controlling interests | $1 | $1 | $2 | $2 | | Net income (loss) attributable to Avis Budget Group, Inc. | $4 | $14 | $(501) | $(100) | | Earnings (loss) per share - Basic | $0.10 | $0.41 | $(14.24) | $(2.80) | | Earnings (loss) per share - Diluted | $0.10 | $0.41 | $(14.24) | $(2.80) | | Weighted average shares outstanding - Basic | 35.2 | 35.6 | 35.2 | 35.6 | | Weighted average shares outstanding - Diluted | 35.4 | 35.7 | 35.2 | 35.6 | [Key Metrics Summary](index=8&type=section&id=KEY%20METRICS%20SUMMARY) This section summarizes key operational metrics for Americas, International, and Total segments, including rental days, revenue per day, vehicle utilization, and per-unit fleet costs, highlighting year-over-year changes for Q2 and YTD Americas Key Metrics (Q2 & YTD) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | % Change | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | % Change | | :------------------------------------ | :------------------------------- | :------------------------------- | :------- | :----------------------------- | :----------------------------- | :------- | | Rental Days (000's) | 33,292 | 32,940 | 1 % | 62,739 | 62,632 | — % | | Revenue per Day | $70.03 | $71.67 | (2)% | $67.56 | $69.51 | (3)% | | Vehicle Utilization | 70.7 % | 70.2 % | 0.5 pps | 70.2 % | 67.9 % | 2.3 pps | | Per-Unit Fleet Costs per Month | $312 | $361 | (14)% | $343 | $344 | — % | International Key Metrics (Q2 & YTD) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | % Change | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | % Change | | :------------------------------------ | :------------------------------- | :------------------------------- | :------- | :----------------------------- | :----------------------------- | :------- | | Rental Days (000's) | 11,653 | 12,094 | (4)% | 21,661 | 22,454 | (4)% | | Revenue per Day | $60.74 | $56.85 | 7 % | $56.81 | $55.47 | 2 % | | Vehicle Utilization | 70.6 % | 70.2 % | 0.4 pps | 69.9 % | 68.7 % | 1.2 pps | | Per-Unit Fleet Costs per Month | $278 | $305 | (9)% | $276 | $299 | (8)% | Total Company Key Metrics (Q2 & YTD) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | % Change | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | % Change | | :------------------------------------ | :------------------------------- | :------------------------------- | :------- | :----------------------------- | :----------------------------- | :------- | | Rental Days (000's) | 44,945 | 45,034 | — % | 84,400 | 85,086 | (1)% | | Revenue per Day | $67.62 | $67.69 | — % | $64.80 | $65.81 | (2)% | | Vehicle Utilization | 70.7 % | 70.2 % | 0.5 pps | 70.1 % | 68.1 % | 2.0 pps | | Per-Unit Fleet Costs per Month | $303 | $346 | (12)% | $326 | $332 | (2)% | [Condensed Consolidated Schedule of Cash Flows](index=9&type=section&id=CONDENSED%20CONSOLIDATED%20SCHEDULE%20OF%20CASH%20FLOWS) The cash flow statement for the six months ended June 30, 2025, shows net cash provided by operating activities, net cash used in investing activities (including vehicle programs), and net cash provided by financing activities (including vehicle programs), resulting in a net change in cash and equivalents Condensed Consolidated Schedule of Cash Flows (Six Months Ended June 30, 2025) | Activity | Amount (Millions) | | :---------------------------------------------------------- | :---------------- | | Net cash provided by operating activities | $1,456 | | Net cash used in investing activities exclusive of vehicle programs | $(83) | | Net cash used in investing activities of vehicle programs | $(3,873) | | Net cash used in investing activities | $(3,956) | | Net cash provided by financing activities exclusive of vehicle programs | $475 | | Net cash provided by financing activities of vehicle programs | $1,996 | | Net cash provided by financing activities | $2,471 | | Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash | $35 | | Net change in cash and cash equivalents, program and restricted cash | $6 | | Cash and cash equivalents, program and restricted cash, beginning of period | $597 | | Cash and cash equivalents, program and restricted cash, end of period | $603 | Adjusted Free Cash Flow (Six Months Ended June 30, 2025) | Metric | Amount (Millions) | | :---------------------------------------------------------- | :---------------- | | Adjusted EBITDA | $184 | | Interest expense related to corporate debt, net (excluding early extinguishment of debt) | $(207) | | Working capital and other | $336 | | Capital expenditures | $(90) | | Tax payments, net of refunds | $(57) | | Vehicle programs and related | $(641) | | Adjusted Free Cash Flow | $(475) | [Non-GAAP Measures and Definitions](index=2&type=section&id=Non-GAAP%20Measures%20and%20Definitions) Explanation and reconciliation of non-GAAP financial measures, along with detailed calculations and definitions for key operational metrics [Introduction to Non-GAAP Financial Measures](index=2&type=section&id=NON-GAAP%20FINANCIAL%20MEASURES%20AND%20KEY%20METRICS) This section introduces non-GAAP financial measures like Adjusted EBITDA and Adjusted Free Cash Flow, explaining their use for performance evaluation and comparison, and noting that reconciliations to GAAP measures are provided - The release includes non-GAAP financial measures such as **Adjusted EBITDA** and **Adjusted Free Cash Flow**, which are not considered GAAP measures[9](index=9&type=chunk) - These non-GAAP measures are used to evaluate operating business performance and compare results, with definitions and reconciliations provided in the tables and Appendix I[9](index=9&type=chunk) [Reconciliation of Non-GAAP Measures](index=10&type=section&id=RECONCILIATION%20OF%20NON-GAAP%20MEASURES) Detailed reconciliations are provided for net income (loss) to Adjusted EBITDA and net cash provided by operating activities to Adjusted Free Cash Flow for the three and six months ended June 30, 2025 and 2024 Reconciliation of Net Income (Loss) to Adjusted EBITDA | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income (loss) | $5 | $15 | $(499) | $(98) | | Provision for (benefit from) income taxes | $10 | $12 | $(163) | $(17) | | Income (loss) before income taxes | $15 | $27 | $(662) | $(115) | | Non-vehicle related depreciation and amortization | $60 | $58 | $116 | $119 | | Interest expense related to corporate debt, net | $110 | $88 | $207 | $171 | | Early extinguishment of debt | $3 | $1 | $3 | $1 | | Other fleet charges | — | — | $390 | — | | Restructuring and other related charges | $59 | $14 | $81 | $17 | | Transaction-related costs, net | — | $1 | — | $2 | | Other (income) expense, net | $5 | $2 | $11 | $3 | | Legal matters, net | $12 | $12 | $13 | $7 | | Cloud computing costs | $13 | $11 | $25 | $21 | | Adjusted EBITDA | $277 | $214 | $184 | $226 | Reconciliation of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow (Six Months Ended June 30, 2025) | Metric | Amount (Millions) | | :---------------------------------------------------------- | :---------------- | | Net cash provided by operating activities | $1,456 | | Net cash used in investing activities of vehicle programs | $(3,873) | | Net cash provided by financing activities of vehicle programs | $1,996 | | Capital expenditures | $(85) | | Proceeds received on asset sales | $2 | | Change in program and restricted cash | $10 | | Other receipts (payments), net | $19 | | Adjusted Free Cash Flow | $(475) | [Key Metrics Calculations](index=11&type=section&id=KEY%20METRICS%20CALCULATIONS) This section provides the detailed calculations for key operational metrics such as Revenue per Day, Vehicle Utilization, and Per-Unit Fleet Costs for both Americas and International segments, for the three and six months ended June 30, 2025 and 2024 Revenue per Day (RPD) Calculation (Q2 & YTD) | Metric | Americas Q2 2025 | International Q2 2025 | Total Q2 2025 | Americas Q2 2024 | International Q2 2024 | Total Q2 2024 | | :------------------------------------ | :--------------- | :-------------------- | :------------ | :--------------- | :-------------------- | :------------ | | Revenue | $2,332 | $707 | $3,039 | $2,361 | $687 | $3,048 | | Rental days (000's) | 33,292 | 11,653 | 44,945 | 32,940 | 12,094 | 45,034 | | RPD excluding exchange rate effects ($) | $70.06 | $58.51 | $67.06 | $71.67 | $56.85 | $67.69 | | | | | | | | | | Metric | Americas YTD 2025 | International YTD 2025 | Total YTD 2025 | Americas YTD 2024 | International YTD 2024 | Total YTD 2024 | | :------------------------------------ | :---------------- | :--------------------- | :------------- | :---------------- | :--------------------- | :------------- | | Revenue | $4,239 | $1,230 | $5,469 | $4,354 | $1,245 | $5,599 | | Rental days (000's) | 62,739 | 21,661 | 84,400 | 62,632 | 22,454 | 85,086 | | RPD excluding exchange rate effects ($) | $67.65 | $56.49 | $64.78 | $69.51 | $55.47 | $65.81 | Vehicle Utilization Calculation (Q2 & YTD) | Metric | Americas Q2 2025 | International Q2 2025 | Total Q2 2025 | Americas Q2 2024 | International Q2 2024 | Total Q2 2024 | | :-------------------- | :--------------- | :-------------------- | :------------ | :--------------- | :-------------------- | :------------ | | Rental days (000's) | 33,292 | 11,653 | 44,945 | 32,940 | 12,094 | 45,034 | | Average rental fleet | 517,363 | 181,270 | 698,633 | 515,852 | 189,293 | 705,145 | | Number of days in period | 91 | 91 | 91 | 91 | 91 | 91 | | Available rental days (000's) | 47,080 | 16,496 | 63,576 | 46,943 | 17,226 | 64,169 | | Vehicle utilization | 70.7 % | 70.6 % | 70.7 % | 70.2 % | 70.2 % | 70.2 % | | | | | | | | | | Metric | Americas YTD 2025 | International YTD 2025 | Total YTD 2025 | Americas YTD 2024 | International YTD 2024 | Total YTD 2024 | | :-------------------- | :---------------- | :--------------------- | :------------- | :---------------- | :--------------------- | :------------- | | Rental days (000's) | 62,739 | 21,661 | 84,400 | 62,632 | 22,454 | 85,086 | | Average rental fleet | 493,744 | 171,260 | 665,004 | 506,583 | 179,682 | 686,265 | | Number of days in period | 181 | 181 | 181 | 182 | 182 | 182 | | Available rental days (000's) | 89,368 | 30,998 | 120,366 | 92,198 | 32,702 | 124,900 | | Vehicle utilization | 70.2 % | 69.9 % | 70.1 % | 67.9 % | 68.7 % | 68.1 % | Per-Unit Fleet Costs Calculation (Q2 & YTD) | Metric | Americas Q2 2025 | International Q2 2025 | Total Q2 2025 | Americas Q2 2024 | International Q2 2024 | Total Q2 2024 | | :------------------------------------------------ | :--------------- | :-------------------- | :------------ | :--------------- | :-------------------- | :------------ | | Vehicle depreciation and lease charges, net | $484 | $152 | $636 | $559 | $174 | $733 | | Average rental fleet | 517,363 | 181,270 | 698,633 | 515,852 | 189,293 | 705,145 | | Number of months in period | 3 | 3 | 3 | 3 | 3 | 3 | | Per-unit fleet costs per month excluding exchange rate effects ($) | $312 | $266 | $300 | $361 | $305 | $346 | | | | | | | | | | Metric | Americas YTD 2025 | International YTD 2025 | Total YTD 2025 | Americas YTD 2024 | International YTD 2024 | Total YTD 2024 | | :------------------------------------------------ | :---------------- | :--------------------- | :------------- | :---------------- | :--------------------- | :------------- | | Vehicle depreciation and lease charges, net | $1,017 | $284 | $1,301 | $1,046 | $323 | $1,369 | | Average rental fleet | 493,744 | 171,260 | 665,004 | 506,583 | 179,682 | 686,265 | | Number of months in period | 6 | 6 | 6 | 6 | 6 | 6 | | Per-unit fleet costs per month excluding exchange rate effects ($) | $344 | $274 | $326 | $344 | $299 | $332 | [Definitions of Non-GAAP Measures and Key Metrics](index=13&type=section&id=DEFINITIONS%20OF%20NON-GAAP%20MEASURES%20AND%20KEY%20METRICS) This appendix provides comprehensive definitions for all non-GAAP financial measures and key operational metrics used in the report, including Adjusted EBITDA, Adjusted Free Cash Flow, Rental Days, Revenue per Day, and Vehicle Utilization - **Adjusted EBITDA** is defined as income (loss) from continuing operations before non-vehicle related depreciation and amortization, various charges, non-vehicle related interest, and income taxes[36](index=36&type=chunk) - **Adjusted Free Cash Flow** represents net cash provided by operating activities adjusted for capital expenditures, vehicle program investing and financing activities, asset sales, and certain other charges[38](index=38&type=chunk) - Key metrics defined include **Rental Days**, **Revenue per Day**, **Vehicle Utilization**, **Available Rental Days**, **Average Rental Fleet**, **Per-Unit Fleet Costs**, and **Currency Exchange Rate Effects**[41](index=41&type=chunk)[42](index=42&type=chunk)[43](index=43&type=chunk)[48](index=48&type=chunk)[49](index=49&type=chunk)[50](index=50&type=chunk)[51](index=51&type=chunk) [Liquidity and Capital Structure](index=2&type=section&id=Liquidity%20and%20Capital%20Structure) An overview of the company's debt management strategies and current liquidity position [Debt Management and Liquidity Position](index=2&type=section&id=Debt%20Management%20and%20Liquidity%20Position) In May, the company issued **$600 million** in unsecured Senior Notes to repay existing debt. In July, a **$1.1 billion** floating rate term loan maturity was extended to July 2032. The quarter ended with nearly **$950 million** in liquidity and an additional **$1.7 billion** in fleet funding capacity - Issued **$600 million** of unsecured Senior Notes in May, using proceeds to repay outstanding borrowings under a secured floating rate term loan due 2025 and a portion of unsecured Senior Notes due 2027[11](index=11&type=chunk) - Amended **$1.1 billion** floating rate term loan in July, extending its maturity date from August 2027 to July 2032[11](index=11&type=chunk) - Liquidity position at the end of the quarter was nearly **$950 million**, with an additional **$1.7 billion** of fleet funding capacity[11](index=11&type=chunk) [Forward-Looking Statements and Risk Factors](index=3&type=section&id=FORWARD-LOOKING%20STATEMENTS) A disclaimer regarding forward-looking statements and a comprehensive list of potential risks affecting future financial results [Forward-Looking Statements Disclaimer](index=3&type=section&id=Forward-Looking%20Statements%20Disclaimer) This section serves as a disclaimer regarding forward-looking statements, indicating that actual results may differ materially due to various known and unknown risks, uncertainties, and assumptions - Statements in the press release are 'forward-looking statements' subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause actual results to differ materially[12](index=12&type=chunk) [Key Risk Factors](index=3&type=section&id=Key%20Risk%20Factors) The report outlines numerous factors that could affect future results, including high competition, changes in fleet costs, volatility in travel demand, economic conditions, geopolitical events, supply chain disruptions, and risks related to debt, litigation, cybersecurity, and regulatory compliance - Key risk factors include high competition in the mobility industry, changes in fleet costs (new vehicle costs, disposal prices), and the financial condition of vehicle manufacturers[12](index=12&type=chunk) - Other risks involve volatility in travel demand, deteriorating economic conditions, geopolitical events (terrorism, pandemics, conflicts), and changes in the cost or supply of fuel, labor, or other resources[12](index=12&type=chunk) - Risks also encompass indebtedness, ability to obtain financing, compliance with covenants, litigation, governmental inquiries, cybersecurity breaches, and changes in tax laws or accounting standards[14](index=14&type=chunk) [Investor Information](index=2&type=section&id=Investor%20Information) Information for investors, including access to supplemental financials, conference call details, and contact information [Supplemental Financials & Investor Conference Call](index=2&type=section&id=SUPPLEMENTAL%20FINANCIALS) Investors can access supplemental financials on the investor relations website and details for the Q2 results conference call are provided, including access methods and replay information - Second quarter supplemental financials are available on the investor relations website at ir.avisbudgetgroup.com[6](index=6&type=chunk) - A conference call to discuss Q2 results will be held on **July 30, 2025**, at **8:30 a.m. (ET)**, accessible via the investor relations website or by dialing (877) 407-2991[7](index=7&type=chunk) [Investor & Media Contacts](index=5&type=section&id=Investor%20%26%20Media%20Contacts) Contact information for investor relations and media relations teams is provided for inquiries - Investor Relations Contact: David Calabria, IR@avisbudget.com. Media Relations Contact: Media Relations Team, ABGPress@coynepr.com[16](index=16&type=chunk) ```

Core Insights - Avis Budget Group reported Q2 2025 revenues of $3.0 billion, net income of $5 million, and Adjusted EBITDA of $277 million, reflecting a 29% increase from the previous year [1][20][21]. Financial Performance - Revenues for Q2 2025 were $3.0 billion, slightly down from $3.048 billion in Q2 2024, with revenue per day, excluding exchange rate effects, decreasing by 1% [9][20]. - Adjusted EBITDA in the Americas increased to $220 million from $186 million year-over-year, attributed to lower fleet costs and improved vehicle utilization [9][20]. - International Adjusted EBITDA rose to $82 million from $48 million, driven by stronger pricing and decreased fleet costs, despite a decrease in rental days [9][20]. Operational Highlights - The company launched Avis First, a premium car rental service, on July 21, 2025, aimed at enhancing customer experience with features like dedicated concierge service and premium vehicles [3][8]. - Avis Budget Group announced a multi-year partnership with Waymo to initiate fully autonomous ride-hailing operations in Dallas, Texas, positioning itself as a key player in the evolving mobility ecosystem [3][8]. Debt and Liquidity - In May 2025, Avis issued $600 million in unsecured Senior Notes, using the proceeds to repay existing borrowings and improve liquidity [9][20]. - The company amended its $1.1 billion floating rate term loan, extending its maturity from August 2027 to July 2032, and reported a liquidity position of nearly $950 million at the end of the quarter [9][20]. Key Metrics - The average rental fleet size was 698,633 vehicles, with vehicle utilization at 70.7%, an increase from 70.2% in the previous year [25][40]. - Rental days in the Americas were 33,292, up 1% from the previous year, while international rental days decreased by 4% to 11,653 [25][40]. - Per-unit fleet costs decreased by 12% to $303 per month, reflecting improved operational efficiency [25][40].

Core Insights - Avis Budget Group has announced a multi-year strategic partnership with Waymo to launch a fully autonomous ride-hailing service in Dallas, marking a significant shift in its business model from traditional car rental to mobility solutions [1][2][3] Company Overview - Avis Budget Group is a leading global provider of mobility solutions, operating approximately 10,250 rental locations in around 180 countries, with a strong presence in North America, Europe, and Australasia [5] Partnership Details - The partnership will see Avis serve as Waymo's fleet operations partner in Dallas, providing end-to-end services including infrastructure, vehicle readiness, maintenance, and depot operations [2] - Waymo will manage the ride-hailing service through its app, while also being responsible for the performance of the Waymo Driver [2] Strategic Goals - This partnership reflects Avis's ambition to expand beyond traditional travel services and actively shape the future of mobility, leveraging its expertise in large-scale fleet management [3] - The initial testing phase is already underway, with a public launch planned for 2026, and intentions to expand to additional cities in the future [2][4] Leadership Statements - Brian Choi, CEO of Avis Budget Group, emphasized the partnership as a pivotal milestone in the company's evolution towards becoming a leading provider of fleet management and operations within the mobility ecosystem [4] - Tekedra Mawakana, co-CEO of Waymo, expressed excitement about bringing the autonomous ride-hailing service to Dallas, highlighting the potential for safe and seamless transportation [4]

Core Insights - Waymo, a subsidiary of Alphabet, announced plans to expand its ride-hailing service to Dallas, Texas by 2026 [1] - The company will partner with Avis Budget Group for strategic collaboration, which will provide end-to-end fleet management services [1] Company Developments - Waymo's expansion into Dallas marks a significant step in its growth strategy for autonomous ride-hailing services [1] - The partnership with Avis Budget Group will include infrastructure support, vehicle preparation, maintenance, and general fleet operations [1]

Partnerships & Operations - Waymo partners with Avis to manage its robotaxi fleet in Dallas [1] Autonomous Vehicle Industry - The partnership signifies the expansion of robotaxi services in the Dallas area [1]

Group 1 - Waymo plans to launch a robotaxi service in Dallas next year, expanding its commercial operations which already include Los Angeles and San Francisco [1][6] - The company is partnering with Avis Budget Group to manage its fleet of all-electric autonomous Jaguar I-Pace vehicles, with Avis handling depot operations such as charging and maintenance [1][2] - Waymo has previously partnered with companies like Uber and Moove, but this marks the first collaboration with a rental car company, indicating a potential for future expansions to other cities [2] Group 2 - Waymo has conducted preliminary testing in Dallas, including mapping the city and testing autonomous vehicles on public roads with a human safety operator [3] - The fleet is expected to scale to hundreds of vehicles over time, although specific launch dates and initial fleet size have not been disclosed [4] - Waymo currently operates commercially in five cities and plans to launch services in Washington, D.C., and Miami next year [6]

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