Core Viewpoint - Hertz Global Holdings, Inc. experienced a significant stock price increase of 40% following the release of its Q3 earnings, driven by strong earnings momentum and a potential short squeeze [1][2]. Financial Performance - Hertz reported earnings per share (EPS) of 12 cents, surpassing analyst expectations, with revenues reaching $2.48 billion, marking its first quarterly profit in nearly two years [2]. - The company's turnaround was attributed to strategic cost discipline, a refreshed rental fleet, and the early results of CEO Gil West's restructuring plan [2]. Market Dynamics - The stock's surge attracted a large number of retail buyers, as traders sought the next high-risk, high-reward meme stock [3]. - Hertz's short interest was reported at 43.22%, indicating a high susceptibility to a short squeeze, similar to past events with GameStop and AMC [4]. - The significant short float above 40%, combined with the company's recent transition from loss to profit and high institutional ownership, increases the risk for short sellers [5]. Investor Sentiment - The spike in Hertz's stock price reflects both a potential short squeeze and renewed confidence in the company's strategic direction [6]. - The narrative of Hertz becoming the next meme stock is gaining traction on trader forums and social media, positioning it as a battleground between short sellers and retail investors [6].

Core Insights - The rental car company has reported improvements across several key metrics in the third quarter [1] Group 1 - The company experienced growth in rental revenues, indicating a positive trend in demand for rental vehicles [1] - Key performance indicators such as fleet utilization and average daily rates have shown significant improvement compared to previous quarters [1] - The overall market conditions for the rental car industry appear to be stabilizing, contributing to the company's positive performance [1]

Core Insights - Hertz Global Holdings, Inc. reported quarterly earnings of $0.12 per share, exceeding the Zacks Consensus Estimate of a loss of $0.02 per share, and showing a significant improvement from a loss of $0.68 per share a year ago, resulting in an earnings surprise of +700.00% [1] - The company generated revenues of $2.48 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.85%, although this represents a decline from year-ago revenues of $2.58 billion [2] - Hertz Global shares have increased approximately 35% year-to-date, outperforming the S&P 500's gain of 16.5% [3] Earnings Outlook - The future performance of Hertz Global's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook, including current consensus earnings expectations for upcoming quarters [4][5] - The current consensus EPS estimate for the next quarter is -$0.47 on revenues of $2.02 billion, and for the current fiscal year, it is -$1.99 on revenues of $8.45 billion [7] Industry Context - The Transportation - Services industry, to which Hertz Global belongs, is currently ranked in the bottom 10% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact investor sentiment and stock performance [5][6]

Financial Data and Key Metrics Changes - The company achieved revenue of $2.5 billion and delivered adjusted corporate EBITDA of $190 million, representing a year-over-year improvement of $350 million and positive EPS for the first time in two years [7][40]. - The average DPU was $273 per month, in line with expectations, supported by healthy residuals and disciplined channel management [42]. - Direct operating expenses declined by 1% year over year, and DOE per day improved both sequentially and annually despite inflation [42]. Business Line Data and Key Metrics Changes - The fleet refresh was completed, resulting in an average fleet age of under twelve months and record high utilization rates of 84%, the highest since 2018 [10][41]. - RPU came in at $15.30, nearly flat year over year, with improvements seen sequentially throughout the quarter [40][21]. - The car sales segment is being transformed into a profit-generating engine, with a rent-to-buy program showing a 70% purchase rate among customers [12][14]. Market Data and Key Metrics Changes - International segments saw strong margins with larger RPD and RPU gains, indicating a robust pricing environment [40]. - Inbound demand showed improvement in Q3 compared to Q2, with positive trends noted in corporate demand as of October [91][94]. - The government segment experienced a decline in November due to the government shutdown, impacting overall demand [93]. Company Strategy and Development Direction - The company is focused on transforming its Rent A Car business while simultaneously laying the groundwork for a diversified value-creating platform across four strategic areas: rent a car, fleet, service, and mobility [10][19]. - The strategy includes enhancing customer experience, optimizing fleet management, and leveraging digital retail channels to capture additional revenue streams [15][16]. - The company aims to grow its mobility business, including partnerships with rideshare companies and exploring opportunities in the autonomous vehicle space [62]. Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, emphasizing the importance of execution and the potential for growth beyond the traditional rental car business [38][51]. - The company anticipates a stable setup for 2026, with expectations for mid-single-digit growth in transaction days and a focus on improving margins [48][50]. - Management acknowledged challenges such as vehicle recalls and external system outages but remains focused on long-term strategic goals [46][47]. Other Important Information - The company ended the quarter with $2.2 billion in total liquidity, including $1.1 billion in unrestricted cash [43]. - A $154 million benefit was recorded from a litigation settlement distribution during the quarter [43]. - The company is targeting a 3% to 6% EBITDA margin for 2026, aiming for $1 billion in EBITDA production by 2027 [50][51]. Q&A Session Summary Question: Can you unpack what becoming a value-creating mobility platform means in practice? - Management emphasized that while the rental car business remains core, there are additional growth opportunities in car sales, service, and mobility, leveraging their existing infrastructure and customer base [56][58]. Question: How does the customer mix affect RPD and pricing? - Management noted that while there are RPD headwinds, they are dynamically optimizing the car class mix based on customer demand and willingness to pay, which helps improve unit economics [66][68]. Question: What are the expectations for the sub-$300 DPU for next year? - Management indicated that the strategy of buying right, holding right, and selling right will support achieving this target, with stable residuals and good pricing expected for model year 2026 vehicles [75][78]. Question: Can you provide insights on international demand and market performance? - Management reported substantial improvement in demand from Q2 to Q3, with positive trends in corporate demand noted in October, although inbound demand remains slightly down year over year [90][94].

Financial Data and Key Metrics Changes - The company achieved $2.5 billion in revenue and delivered adjusted corporate EBITDA of $190 million, marking a $350 million year-over-year improvement and positive EPS for the first time in two years [5][28]. - The average fleet age is now under 12 months, with a record high utilization rate of 84%, the highest since 2018 [6][29]. - Direct operating expenses (DOE) per day improved both year-over-year and sequentially, while maintaining a sub-$350 DPU goal [7][29]. Business Line Data and Key Metrics Changes - Revenue per unit (RPU) came in at $1,530, nearly flat year-over-year, with record utilization driving performance despite a 7% smaller fleet [17][28]. - The company reported a 2% year-over-year improvement in RPU across the total fleet, with utilization across the total fleet improving by 460 basis points [18][29]. - The rent-to-buy program has a 70% purchase conversion rate, significantly exceeding traditional dealership rates [11]. Market Data and Key Metrics Changes - The international segment saw strong margins with larger RPD and RPU gains, indicating a robust pricing environment [28]. - Inbound demand remains down low single digits year-over-year, particularly affected by EMEA and Australia/New Zealand markets [66]. - Corporate demand showed improvement in October, indicating a positive trend moving into Q4 [64]. Company Strategy and Development Direction - The company is focused on transforming its rental car business while simultaneously laying the groundwork for a diversified, value-creating platform spanning rental car, fleet, service, and mobility [9][14]. - The strategy includes enhancing customer experience, optimizing fleet management, and leveraging e-commerce channels to drive sales [12][20]. - The company aims to grow its mobility business, including partnerships with rideshare companies and exploring autonomous vehicle opportunities [14][45]. Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for a stable setup in 2026, with expectations for mid-single-digit growth in transaction days and fleet size [33][36]. - The company anticipates challenges in Q4 due to government shutdown impacts and external system outages, which may affect revenue [32][68]. - Management emphasized the importance of execution and maintaining focus on core rental operations while expanding into new areas [39][45]. Other Important Information - The company ended the quarter with $2.2 billion in total liquidity, including $1.1 billion in unrestricted cash [30]. - The company completed a $425 million senior unsecured exchangeable note issuance, with plans to use part of the proceeds to redeem a $500 million bond maturing in December 2026 [30]. - The company is targeting a 3%-6% EBITDA margin for 2026, aiming for $1 billion in EBITDA production by 2027 [36]. Q&A Session Summary Question: Can you unpack what becoming a value-creating mobility platform means in practice? - Management highlighted that while the rental car business remains core, there are additional growth opportunities in car sales, service, and mobility, leveraging their existing infrastructure and customer base [41][42]. Question: Are the economics on a smaller vehicle footprint better despite potential RPD headwinds? - Management acknowledged RPD headwinds but emphasized the dynamic nature of vehicle mix optimization based on customer demand and market conditions [46][48]. Question: What are the expectations for DPU and fleet mix for next year? - Management indicated that the broader fleet strategy and stable residuals would support achieving sub-$300 DPU targets, with a focus on optimizing vehicle sales channels [54][55]. Question: Can you provide insights on international demand and market performance? - Management noted substantial improvement in airport demand and positive trends in corporate demand, although inbound demand remains slightly down year-over-year [62][64].

Core Insights - Hertz Global reported a third-quarter profit for the first time in nearly two years, indicating a significant turnaround for the company [1] - The profit was driven by strong demand for used vehicle sales and a newer fleet of rental cars, which contributed to a 27% increase in the company's shares [1] Financial Performance - Hertz Global achieved profitability in the third quarter after a prolonged period of losses, marking a pivotal moment in its financial recovery [1] - The company's reliance on used vehicle sales played a crucial role in boosting its revenue and overall financial performance [1] Market Reaction - Following the announcement of the profit, Hertz Global's shares surged by 27%, reflecting positive investor sentiment and confidence in the company's recovery strategy [1]

IMPORTANT DISCLOSURES FORWARD-LOOKING STATEMENTS Certain statements made within this presentation contain forward-looking statements. Forward-looking statements are not guarantees of future performance and by their nature are subject to inherent uncertainties. Actual results may differ materially. Any forward-looking information relayed in this presentation speaks only as of November 4, 2025, and Hertz Global Holdings, Inc. ("Hertz Global" or the "Company") undertakes no obligation to update that informatio ...

Core Insights - Hertz reported a profit in the third quarter, attributed to a significant reduction in depreciation costs as the company continues its strategy of replacing older vehicles with a newer fleet [1] Financial Performance - The company experienced a turnaround in profitability during the third quarter, indicating effective cost management and operational efficiency [1] Strategic Initiatives - Hertz's ongoing strategy involves swapping out older cars for a newer fleet, which is contributing to improved financial results and overall company performance [1]

Financial Performance - Total revenues for Q3 2025 were $2,478 million, a decrease of 3.8% compared to $2,576 million in Q3 2024[18]. - Net income for Q3 2025 was $184 million, compared to a net loss of $1,332 million in Q3 2024[19]. - Total comprehensive income for Q3 2025 was $176 million, compared to a loss of $1,292 million in Q3 2024[19]. - For the nine months ended September 30, 2025, Hertz reported a net income loss of $553 million, an improvement from a loss of $2,383 million in the same period of 2024[26]. - Total revenues for the nine months ended September 30, 2025, were $6,476 million, down from $7,009 million in 2024, representing a decrease of approximately 7.6%[34]. - The company reported a loss before income taxes of $607 million for the nine months ended September 30, 2025[203]. Assets and Liabilities - Total assets increased to $22,990 million as of September 30, 2025, up from $21,802 million at the end of 2024, representing an increase of 5.4%[15]. - Total debt rose to $17,408 million as of September 30, 2025, compared to $16,335 million at the end of 2024, an increase of 6.6%[15]. - The accumulated deficit increased to $3,055 million as of September 30, 2025, compared to $2,502 million at the end of 2024[15]. - As of September 30, 2025, Hertz reported a total stockholder's equity of $858 million, down from $3,543 million at the end of 2023, reflecting a significant decline in accumulated deficit to $(3,474) million[38]. Cash Flow and Expenses - Cash flows from operating activities provided $1,432 million, compared to $1,810 million in the prior year, reflecting a decrease of 20.9%[26]. - The company incurred $1,454 million in direct vehicle and operating expenses for the three months ended September 30, 2025, slightly down from $1,470 million in 2024[34]. - Selling, general and administrative expenses increased to $241 million in Q3 2025, up from $189 million in Q3 2024, a rise of 27.5%[18]. - Cash and cash equivalents at the end of the period were $1,549 million, up from $905 million at the end of September 2024, showing a significant increase of 71.1%[28]. Vehicle and Operations - The number of revenue earning vehicles increased to 14,023 as of September 30, 2025, up from 12,714 vehicles at the end of 2024, a growth of 10.3%[15]. - The net revenue earning vehicles amounted to $12,693 million, an increase from $11,963 million as of December 31, 2024[65]. - Operating lease income from vehicle rentals for the three months ended September 30, 2025 was $2,232 million, down from $2,330 million in 2024, representing a decline of 4.2%[113]. Legal and Settlement Matters - The company reported a legal settlement expense of $154 million in Q3 2025[18]. - The company received a pro rata settlement distribution of $154 million from the In re Automotive Parts Antitrust Litigation, recorded in the financial statements for the three and nine months ended September 30, 2025[195]. - The Company has accrued approximately $334 million for litigation related to Unsecured Notes, including $260 million on underlying claims and $74 million in pre-judgment interest as of September 30, 2025[187]. Debt and Financing - The company’s total debt as of September 30, 2025, includes $1,250 million in First Lien Senior Notes due 2029 and $500 million in Senior Notes due 2026[70]. - The total borrowing capacity available to the company as of September 30, 2025, is $2.506 billion, with $1.119 billion available under the First Lien RCF and $1.387 billion under various vehicle debt facilities[103]. - The company recognized a total interest expense of $1 million for the Exchangeable Notes Due 2030 for the three months ended September 30, 2025, which includes a gain of $1 million on the fair value of the Exchange Feature[87]. Stock and Equity - Hertz's common stock shares increased from 305 million at December 31, 2023, to 307 million by September 30, 2024[21]. - The company has authorized 36,966,397 shares for future grants under the 2021 Omnibus Incentive Plan as of September 30, 2025[131]. - The total fair value of Restricted Stock Units (RSUs) that vested in the nine months ended September 30, 2025, was $39 million, compared to $26 million in the same period of 2024[141]. Tax and Regulatory Matters - The company recorded a tax provision of $50 million for the three months ended September 30, 2025, resulting in an effective tax rate of 21%, compared to a tax benefit of $288 million and an effective tax rate of 18% in the same period of 2024[118]. - The company expects federal cash taxes to decrease in the near term due to the enactment of the One Big Beautiful Bill Act, which reinstates full bonus depreciation and modifies certain tax provisions[121]. Market and Economic Conditions - The Hertz Global common share price was $6.80 as of September 30, 2025, reflecting an increase from $3.66 as of December 31, 2024[170]. - The risk-free interest rate for the Exchange Features 2029 was 3.66% as of September 30, 2025, down from 4.35% as of December 31, 2024[170].

Exhibit 99.1 HERTZ TRANSFORMATION DRIVES RECORD UTILIZATION AND RETURN TO EPS PROFITABILITY ------------------------------------------------------------------------------------------------------------------ "This quarter proves that we're delivering on our commitments: driving strong results through focused execution and operational discipline," said Gil West, CEO of Hertz. "Throughout this transformation, we're rebuilding our foundation while sharpening our skills and capabilities, creating a new platform ...