Hertz(US:HTZ)2025-11-04 13:06Financial 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].