PART I. FINANCIAL INFORMATION [Condensed Consolidated Financial Statements (Unaudited)](index=4&type=section&id=ITEM%201.%20Condensed%20Consolidated%20Financial%20Statements%20%28Unaudited%29) Presents unaudited condensed consolidated financial statements for Hertz Global Holdings, including balance sheets, income, cash flows, and detailed notes [Financial Statements - Hertz Global Holdings, Inc.](index=5&type=section&id=Financial%20Statements%20-%20Hertz%20Global%20Holdings%2C%20Inc%2E) Hertz Global Holdings reported decreased Q2 2025 revenue but a narrowed net loss, with assets increasing and equity turning to a deficit Hertz Global Holdings, Inc. - Key Financials (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | | :--- | :--- | :--- | | **Revenues** | $2,185 | $2,353 | | **Net Loss** | $(294) | $(865) | | **Basic and Diluted EPS** | $(0.95) | $(2.82) | Hertz Global Holdings, Inc. - Balance Sheet Summary | Metric | June 30, 2025 (in millions) | Dec 31, 2024 (in millions) | | :--- | :--- | :--- | | Total Assets | $23,083 | $21,802 | | Total Liabilities | $23,587 | $21,649 | | Total Stockholders' Equity (Deficit) | $(504) | $153 | - For the six months ended June 30, 2025, net cash provided by operating activities was **$597 million**, a decrease from **$916 million** in the prior year period. Net cash used in investing activities improved to **$1.56 billion** from **$2.78 billion**[26](index=26&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=17&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail an **$89 million** gain from sale-leaseback, improved vehicle disposal gains, total debt increase to **$17.6 billion**, and a **$330 million** litigation accrual - In June 2025, the company sold and leased back certain properties, recognizing a pre-tax gain of **$89 million**. An additional sale-leaseback in July 2025 is expected to generate a pre-tax gain between **$35 million** and **$40 million**[56](index=56&type=chunk)[57](index=57&type=chunk) - The company recorded a net gain on disposal of revenue earning vehicles of **$38 million** in Q2 2025, a significant improvement from a **$182 million** loss in Q2 2024. This was a primary driver of improved profitability[60](index=60&type=chunk) Total Debt Summary | Debt Category | June 30, 2025 (in millions) | Dec 31, 2024 (in millions) | | :--- | :--- | :--- | | Non-Vehicle Debt | $5,434 | $5,104 | | Vehicle Debt | $12,202 | $11,231 | | **Total Debt** | **$17,636** | **$16,335** | - The company has accrued approximately **$330 million** for litigation related to make-whole premiums and post-petition interest on Unsecured Notes following an adverse appellate court ruling. The company is seeking a review by the U.S. Supreme Court[154](index=154&type=chunk) [Segment Information](index=39&type=section&id=Segment%20Information) Both operating segments improved profitability year-over-year, with Americas RAC Adjusted EBITDA swinging to **$42 million** profit and International RAC also turning positive, driven by lower vehicle depreciation Segment Performance (Three Months Ended June 30) | Segment | Revenues 2025 (in millions) | Revenues 2024 (in millions) | Adjusted EBITDA 2025 (in millions) | Adjusted EBITDA 2024 (in millions) | | :--- | :--- | :--- | :--- | :--- | | Americas RAC | $1,738 | $1,928 | $42 | $(403) | | International RAC | $447 | $425 | $42 | $(6) | | **Total** | **$2,185** | **$2,353** | **$84** | **$(409)** | [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=46&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) MD&A discusses Q2 2025 financial results, highlighting improved profitability despite revenue decline, primarily due to reduced vehicle depreciation, and details liquidity, capital resources, and debt financing [Consolidated Results of Operations](index=50&type=section&id=Consolidated%20Results%20of%20Operations) Q2 2025 consolidated revenues decreased by **7%** to **$2.19 billion**, but net loss narrowed significantly to **$179 million**, primarily due to a **60%** (**$620 million**) decrease in vehicle depreciation - The decrease in total revenues for Q2 2025 was primarily due to lower pricing and volume, particularly in the Americas RAC segment[200](index=200&type=chunk) - The key driver of improved profitability was a **$620 million** decrease in net vehicle depreciation expense in Q2 2025 compared to Q2 2024, resulting from a fleet refresh, stronger residual values, and gains on vehicle sales[201](index=201&type=chunk) [Results of Operations by Segment](index=53&type=section&id=Results%20of%20Operations%20by%20Segment) Americas RAC revenue declined **10%** but Adjusted EBITDA improved to **$42 million** profit, driven by **61%** lower depreciation; International RAC revenue grew **5%**, with Adjusted EBITDA turning to **$42 million** profit Americas RAC - Key Metrics (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $1,738 M | $1,928 M | (10)% | | Adjusted EBITDA | $42 M | $(403) M | NM | | Total RPD | $56.08 | $59.73 | (6)% | | Depreciation Per Unit Per Month | $248 | $644 | (61)% | International RAC - Key Metrics (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $447 M | $425 M | 5% | | Adjusted EBITDA | $42 M | $(6) M | NM | | Vehicle Utilization | 81% | 77% | +4 p.p. | | Depreciation Per Unit Per Month | $261 | $384 | (32)% | [Liquidity and Capital Resources](index=62&type=section&id=Liquidity%20and%20Capital%20Resources) Corporate liquidity was **$1.45 billion** as of June 30, 2025, a decrease from year-end 2024, deemed sufficient for the next twelve months, with recent RCF amendments and new vehicle-backed notes - Corporate liquidity stood at **$1.45 billion** as of June 30, 2025, down from **$1.84 billion** at December 31, 2024[275](index=275&type=chunk) - In May 2025, the company amended its First Lien RCF, extending the maturity of **$1.7 billion** of commitments from June 2026 to March 2028[277](index=277&type=chunk) - Net capital expenditures for revenue earning vehicles for the first six months of 2025 was **$1.65 billion**, a **40%** decrease from **$2.73 billion** in the same period of 2024, driven by higher proceeds from vehicle disposals[306](index=306&type=chunk)[307](index=307&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=73&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes to market risk exposures, including interest rates, foreign currency, and fuel prices, have occurred since the 2024 Form 10-K disclosures - There have been no material changes to the company's market risk disclosures since its Annual Report on Form 10-K for the year ended December 31, 2024[328](index=328&type=chunk) [Controls and Procedures](index=73&type=section&id=ITEM%204.%20Controls%20and%20Procedures) CEO and CFO concluded disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that as of June 30, 2025, the company's disclosure controls and procedures were effective[329](index=329&type=chunk)[331](index=331&type=chunk) - No material changes in internal control over financial reporting occurred during the three months ended June 30, 2025[330](index=330&type=chunk)[332](index=332&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=74&type=section&id=ITEM%201.%20Legal%20Proceedings) Refers to Note 12 of the Condensed Consolidated Financial Statements for detailed information on pending legal proceedings - For a description of pending legal proceedings, the report refers to Note 12, "Contingencies and Off-Balance Sheet Commitments," in Part I, Item 1[334](index=334&type=chunk) [Risk Factors](index=74&type=section&id=ITEM%201A.%20Risk%20Factors) No material changes to risk factors have occurred since those disclosed in the company's 2024 Annual Report on Form 10-K - There have been no material changes to the risk factors disclosed in the company's 2024 Form 10-K[335](index=335&type=chunk) [Other Items (Items 2, 3, 5, 6)](index=74&type=section&id=Other%20Items%20%28Items%202%2C%203%2C%205%2C%206%29) Covers standard disclosures, reporting no unregistered equity sales, no defaults on senior securities, no Rule 10b5-1 trading plans by directors/officers, and refers to the Exhibit Index - The company reported no unregistered sales of equity securities or use of proceeds for the period[336](index=336&type=chunk) - No defaults upon senior securities were reported[337](index=337&type=chunk) - No director or officer entered into a Rule 10b5-1 trading arrangement during the quarter ended June 30, 2025[338](index=338&type=chunk)

Stock Performance - Hertz stock is up 64% [1] Revenue Impact - Car damage AI could add 16.4% to Hertz revenue [1]

DOVER, DELAWARE - JULY 20: John H. Nemechek, driver of the #42 Hertz Toyota, walks onstage during driver intros prior to the NASCAR Cup Series AutoTrader EchoPark Automotive 400 at Dover Motor Speedway on July 20, 2025 in Dover, Delaware. (Photo by Meg Oliphant/Getty Images) Getty Images Hertz's stock price is up 64% in 2025, according to Google Finance. Most of that rise is due to the April 17 news of Bill Ackman's Pershing Square taking a 20% stake in the car rental company, reported Proactive. Hertz stoc ...

Summary of Hertz Global Holdings, Inc. (HTZ) Core Viewpoint - The market anticipates Hertz Global Holdings, Inc. to report a year-over-year increase in earnings despite lower revenues for the quarter ended June 2025, with actual results being crucial for stock price movement [1][2]. Financial Expectations - The upcoming earnings report is expected to show a quarterly loss of $0.44 per share, reflecting a year-over-year change of +69.4%. Revenues are projected to be $2.17 billion, down 7.6% from the previous year [3]. - The consensus EPS estimate has been revised 4.72% higher in the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for Hertz is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.96%. This indicates a bearish outlook from analysts [12]. - The stock currently holds a Zacks Rank of 4, making it challenging to predict an earnings beat [12]. Historical Performance - In the last reported quarter, Hertz was expected to post a loss of $1.08 per share but actually reported a loss of -$1.12, resulting in a surprise of -3.70%. The company has not beaten consensus EPS estimates in the last four quarters [13][14]. Industry Comparison - In contrast, Expeditors International (EXPD), another player in the Zacks Transportation - Services industry, is expected to post earnings of $1.24 per share with revenues of $2.4 billion, reflecting a slight decline from the previous year. The company has a positive Earnings ESP of +0.11% and a Zacks Rank of 3, indicating a higher likelihood of beating the consensus EPS estimate [18][19][20].

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Financial Data and Key Metrics Changes - The preliminary vote report indicates that all director nominees have been elected for a three-year term, and the appointment of Ernst and Young LLP as the independent auditor for the fiscal year ending December 31, 2025, has been ratified [13] Business Line Data and Key Metrics Changes - No specific data or metrics related to individual business lines were discussed during the meeting [11] Market Data and Key Metrics Changes - No specific market data or metrics were provided in the meeting [11] Company Strategy and Development Direction and Industry Competition - The company continues to focus on maintaining strong governance through the election of directors and the appointment of independent auditors, which reflects its commitment to transparency and accountability [9][10] Management's Comments on Operating Environment and Future Outlook - Management did not provide specific comments on the operating environment or future outlook during this meeting [11] Other Important Information - The meeting was conducted virtually, and a quorum was established with proxies representing more than 50% of the company's outstanding shares present [6] Summary of Q&A Session Question: Were there any questions relevant to matters to be voted on at today's meeting? - There were no questions relevant to the matters to be voted on at the meeting [11]

Group 1 - Bill Ackman has made significant investments in the automotive sector, particularly in Uber Technologies, acquiring over 30 million shares, making it the largest holding in the Pershing Square portfolio [2][4] - Ackman increased his stake in Hertz Global Holdings by 18%, with a purchase of 12.7 million shares that was initially undisclosed due to confidentiality [2][3] - Pershing Square exited its position in Nike, previously holding 18.8 million shares, marking a complete divestment [3][5] Group 2 - The latest 13F filing reveals that Ackman and Pershing Square currently hold 11 stocks, with Uber representing 19% of the portfolio, followed by Brookfield Corporation at 18% and Restaurant Brands International at 13% [4][6] - Other notable holdings include Howard Hughes Holdings at 12%, Chipotle at 9.1%, and Canadian Pacific at 8.7% [6] - The portfolio has seen significant changes, with Hilton Worldwide Holdings decreasing by 45% and Google Class C shares down by 16% [5][6]

Core Viewpoint - JPMorgan analyst Ryan Brinkman maintains an Underweight rating on Hertz Global Holdings, indicating concerns about the sustainability of the company's earnings despite recent partnerships and pricing strategies [1][3]. Financial Performance - Hertz reported first-quarter revenue of $1.81 billion, which fell short of the $2 billion analyst consensus, marking a 13% year-over-year decline [4]. - The company also experienced a first-quarter adjusted loss of $1.12 per share, compared to an expected loss of 97 cents per share [4]. Earnings Outlook - Brinkman suggests that while Hertz may appear undervalued based on normalized earnings, the company is not expected to reach those levels until after 2026 [3]. - The company is projected to generate negative free cash flow in 2024 and 2025, which will limit its ability to repurchase shares at current lower prices [3]. Operational Initiatives - Hertz is making progress on cost efficiency initiatives, including partnerships with technology firms aimed at enhancing customer experience and operational productivity [5]. - The company is implementing improvements to its revenue management system and deploying AI tools for vehicle inspection and pricing optimization [5]. - Management has reaffirmed expectations for the progression of EBITDA throughout the year [5]. Market Reaction - Hertz shares are trading lower by 2.88% to $5.60 at the time of publication [6].

From giving a friendly Jeep® wave to showing kindness with rubber ducks, Hertz has everything drivers need to join the Jeep community and explore the open road like a Jeep 4x4 owner this summer ESTERO, Fla., May 14, 2025 /PRNewswire/ -- Hertz, one of the world's largest car rental companies, is teaming up with the iconic Jeep® brand to add a dedicated collection of Jeep Wrangler 4xe vehicles to its newest fleet yet. Just in time to open the roof top and enjoy open-air freedom, the Wrangler 4xe (America's No ...

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The news team covers medium and small-cap markets, as well as blue-chip companies, commodities, and broader investment stories [3] - Proactive focuses on sectors such as biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] Group 2 - Proactive is committed to adopting technology to enhance workflows and content production [4] - The company utilizes automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]