HERTZ GLOBAL HOLDINGS, INC. Q4 2025 EARNINGS PRESENTATION 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 February 26, 2026, and Hertz Global Holdings, Inc. ("Hertz Global" or the "C ...

4Q & FY 2025 Supplemental Financials Forward-Looking Statements Certain statements in this presentation constitute "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. The forward-looking statements contained herein are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause our actual results, performance or achievements to be materially different from those expressed or implied by any such forward-looking stat ...

Core Insights - The analysis of CAR stock options indicates a potential price range between $105.55 and $135.30 by the March 20 expiration date, based on the Black-Scholes-derived Expected Move calculator [1] - The volatility skew suggests that traders are more focused on protecting against upside volatility rather than hedging against downside risks, indicating a belief in potential upside for CAR stock [2][3] - Recent options flow data shows a bullish sentiment, with significant net trade sentiment favoring optimistic positions, particularly noted on February 4 with $562,800 above parity and nearly $197 million on January 15 [4] Earnings Report Expectations - Avis Budget Group (CAR) is set to release its earnings report on February 18, and trading patterns in the options market suggest a non-trivial possibility of an earnings surprise [5] - Despite CAR stock losing approximately 22% over the past six months and starting the new year down more than 6%, certain indicators hint at a potential positive surprise [6] Price Movement Projections - The Black-Scholes model indicates that CAR stock is expected to trade within a range that reflects one standard deviation from the current price, with a 68% probability of staying within this range [7][8] - A probabilistic analysis suggests that CAR stock may move between $115 and $145 over the next 10 weeks, with the highest probability density around $133 [14] Analytical Framework - The Markov property is applied to assess future price movements based on current trends, indicating that the recent pattern of three up weeks in the last ten weeks suggests a specific drift pattern for CAR stock [13] - The analysis acknowledges the limitations of various models, including the Black-Scholes assumption of lognormally distributed returns, while arguing that Markov-based analyses provide a more grounded approach to narrowing uncertainty [15][16][17]

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].

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 ...

Q2 2025 Financial Performance - Revenue decreased by 7% year-over-year, from $2.4 billion in Q2 2024 to $2.2 billion in Q2 2025, driven by lower fleet and pricing[10] - RPU decreased by 2% year-over-year, from $1,425 in Q2 2024 to $1,400 in Q2 2025, but was flat excluding fleet mix impact[10] - RPD decreased by 5% year-over-year, from $58.80 in Q2 2024 to $55.65 in Q2 2025, driven by market pricing and fleet mix shift[10] - DPU decreased significantly by 58% year-over-year, from $595 in Q2 2024 to $251 in Q2 2025, exceeding the North Star target by 16%[10] - Adjusted Corporate EBITDA improved from $(460) million in Q2 2024 to $1 million in Q2 2025, driven by lower vehicle depreciation and DOE[10] - Adjusted Free Cash Flow increased from $(553) million in Q2 2024 to $327 million in Q2 2025, driven by profitability improvement and increased vehicle funding advance rates[10] Operational Metrics - Transaction Days decreased by 3% year-over-year, from 39.7 million in Q2 2024 to 38.7 million in Q2 2025, reflecting strategic fleet reduction[10] - Average Fleet decreased by 6% year-over-year, from 577,000 in Q2 2024 to 543,000 in Q2 2025, aligning fleet size with demand[10] - Vehicle Utilization improved by 300 bps year-over-year, from 80% in Q2 2024 to 83% in Q2 2025, driven by fleet management and improved operations[10] - DOE per Transaction Day decreased by 1% year-over-year, from $36.25 in Q2 2024 to $36.03 in Q2 2025, driven by cost discipline and productivity[10]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $1.8 billion, with adjusted EBITDA loss of $325 million, an improvement from a loss of $567 million in the prior year, resulting in a 9% margin improvement year over year [32][34] - Depreciation per unit (DPU) decreased by 45% year over year, with DPU for the quarter at $353 per month, and expectations to drop below $300 in Q2 2025 [34][35] - Direct operating expenses (DOE) per day decreased by 4% quarter over quarter and 1% year over year on a volume-adjusted basis [35] Business Line Data and Key Metrics Changes - The fleet was down 8% year over year, with a focus on tighter fleet management to capitalize on strong residual values [22][43] - Retail car sales saw a record quarter, with an increase in average selling price through the retail channel positively impacting depreciation per unit [15][16] - The company is focusing on increasing net margins by managing reconditioning costs and capturing more finance and insurance commissions [16] Market Data and Key Metrics Changes - Overall demand remains solid, but there are potential macroeconomic headwinds; corporate, government, and US inbound segments are moderating, while leisure bookings are up year over year [25][61] - The rental car index for April was up 8%, indicating rising residual values in the wholesale market [56] Company Strategy and Development Direction - The company is focused on disciplined fleet management, revenue optimization, and rigorous cost management as part of its transformation strategy [7][8] - The strategy includes a shift towards a younger fleet, with over 70% of the core US rental fleet being 12 months old or newer, aimed at reducing costs and improving utilization [10][12] - The company is leveraging technology partnerships to enhance fleet management and customer experience, including collaborations with Palantir and Amadeus [18][19] Management's Comments on Operating Environment and Future Outlook - Management acknowledges macroeconomic uncertainties but remains confident in the company's strategy and ability to adapt [20][46] - The company expects to achieve its North Star metrics, which could unlock over $1 billion of EBITDA run rate by 2026 [45][47] - Management is optimistic about rising residual values and solid demand, particularly in leisure segments, while remaining cautious about potential headwinds [47][42] Other Important Information - The company amended its revolving credit facility, extending the maturity date and maintaining strong liquidity of $1.2 billion at the end of Q1 [36][37] - The company is pursuing various transactions to optimize liquidity, including an ATM equity offering to start deleveraging [41][40] Q&A Session Summary Question: About fleet overfitting and residuals in retail vs wholesale - Management clarified that while there was temporary overfitting at the local market level due to early vehicle deliveries, overall fleet management remains tight [52][54] - Residual values are rising, with retail sales skewed towards higher values, and wholesale markets showing quicker price movements [55][56] Question: Geographic demand variations and corporate spending - Management noted no major geographic differences in demand but acknowledged a dip in corporate and government segments, with seasonal demand expected to pick up [60][61] Question: Fleet activity in April and May - The company continues to take deliveries and expects a mid to high single-digit increase in fleet size in Q2 compared to Q1 [66] Question: Balance of cost-cutting and revenue generation - Management emphasized the importance of maintaining customer experience while controlling costs, with improvements in Net Promoter Scores indicating success in this area [72][73] Question: Fleet strategy and RPD - The company is focusing on diversifying revenue streams and improving unit economics, with a tighter fleet aimed at producing more demand than can be satisfied [78][82]

Q1 2025 Financial Performance - Revenue decreased by 13% year-over-year, from $2.1 billion in Q1 2024 to $1.8 billion in Q1 2025, driven by lower volume and rate[9] - Transaction Days decreased by 8% year-over-year, from 36.9 million in Q1 2024 to 33.9 million in Q1 2025, due to a smaller fleet[9] - Total Revenue Per Day (RPD) decreased by 5% year-over-year, from $55.94 in Q1 2024 to $53.38 in Q1 2025, impacted by fleet mix and the shift of Easter into Q2[9] - Adjusted Corporate EBITDA improved by 43% year-over-year, from $(567) million in Q1 2024 to $(325) million in Q1 2025, driven by lower vehicle depreciation and DOE expense[9] - Adjusted Free Cash Flow improved by 21% year-over-year, from $(729) million in Q1 2024 to $(578) million in Q1 2025, reflecting the Adjusted Corporate EBITDA result and cash utilized for fleet rotation[9] Key Metrics and Fleet Management - Depreciation Per Unit (DPU) decreased by 40% year-over-year, from $588 in Q1 2024 to $353 in Q1 2025, benefiting from fleet rotation and improving residual values[9] - Vehicle Utilization increased by 240 basis points year-over-year, from 76% in Q1 2024 to 79% in Q1 2025, due to commercial strategy and capacity management[9] - Average Fleet decreased by 8% year-over-year, from 547,000 in Q1 2024 to 505,000 in Q1 2025, partially offset by early in-fleeting of model year 25 vehicles[9] Strategy and Liquidity - The company aims for Depreciation per unit per month to be under $300, Revenue per unit per month to be over $1,500, and Direct Operating Expense (DOE) per Transaction Day to be in the low $30s[11] - The company expects DPU, RPU and DOE/day to contribute approximately $1.5 billion, $200 million and $100 million, respectively, to Adjusted Corporate EBITDA in 2025[11] - The company had liquidity of $1.2 billion as of March 31, 2025, including $626 million of unrestricted cash and $549 million available under the First Lien RCF[16]

Core Viewpoint - Bill Ackman, a prominent hedge fund manager, has invested in Hertz Global Holdings, leading to a significant increase in the stock price, with expectations of further growth by 2029 [2][3]. Group 1: Investment Rationale - Ackman believes that current tariffs could positively impact Hertz by increasing the value of its vehicle fleet, potentially adding $1.2 billion to its value due to a 10% rise in used car prices [5]. - The company operates a fleet of approximately 500,000 vehicles valued at $12 billion, and Ackman aligns with management's revenue targets of $1,500 per vehicle per month, suggesting achievable growth [6]. - If tariffs lead to higher rental demand, Hertz could increase rental prices and reinvest profits to enhance its fleet [7]. Group 2: Financial Projections - Ackman projects that by 2029, Hertz could generate $2 billion in annual adjusted EBITDA, valuing the company at $15 billion with a target share price of around $30 [8]. Group 3: Market Dynamics - Hertz's stock is heavily shorted, with about 50% of its float sold short, which could lead to a short squeeze if the stock price rises rapidly due to covering by short sellers [10][12]. - The potential for a short squeeze is heightened by Ackman's influence as an activist investor, which could lead to significant price movements following positive quarterly results [13]. Group 4: Current Investment Sentiment - Despite Ackman's involvement adding credibility, uncertainties remain regarding Hertz's ability to sustain growth and the long-term impact of tariffs, leading to a cautious outlook on the stock [14][15].

Avis Budget Group (CAR) - Wall Street anticipates a year-over-year decline in earnings for Avis Budget Group, with an expected loss of $5.56 per share, reflecting a -73.2% change, and revenues projected at $2.52 billion, down 1.2% from the previous year [3][12] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook among analysts [4] - The Most Accurate Estimate for Avis Budget is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -6.54%, suggesting a bearish sentiment among analysts [10][11] Earnings Expectations - The upcoming earnings report is scheduled for May 7, and the stock may react positively if actual results exceed expectations, while a miss could lead to a decline [2] - Historical performance shows that Avis Budget has beaten consensus EPS estimates only once in the last four quarters, with a notable surprise of +76.04% in the last reported quarter [12][13] Comparison with Industry Peers - In contrast, Expeditors International (EXPD) is expected to report earnings of $1.30 per share, indicating a year-over-year increase of +11.1%, with revenues projected at $2.43 billion, up 9.9% from the previous year [17] - Expeditors International has an Earnings ESP of 3.76%, suggesting a higher likelihood of beating the consensus EPS estimate, having surpassed estimates three times in the last four quarters [18]