Core Insights - Hertz Global Holdings Inc. reported a significant financial turnaround for Q4 and the full year 2025, achieving a $2 billion year-over-year improvement in profitability, with total revenue reaching $8.5 billion [1][4]. Financial Performance - The company ended Q4 with $1.5 billion in liquidity, marking its strongest year-over-year revenue performance in nearly two years despite facing over $100 million in transitory headwinds [2]. - A non-cash depreciation charge of $60 million was recorded due to revised third-party residual value forecasts [2]. - Operational discipline led to a 6% year-over-year improvement in adjusted direct operating expenses per transaction day [3]. Strategic Initiatives - Hertz's profitability gains were driven by its Back-to-Basics strategy, which included a 44% improvement in depreciation per unit and a 200-basis-point increase in fleet utilization [1][4]. - Customer experience improved significantly, with the Net Promoter Score increasing by nearly 50% throughout the year, reflecting better fleet quality and service reliability [3]. Future Outlook - For 2026, Hertz expects mid-single-digit revenue growth in the first quarter, supported by a positive pricing environment and improving residual values [3].