Avis Budget Group (CAR) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 rose 4% year-over-year to $2.53 billion, driven by improved pricing and operational execution, despite flat or slightly lower rental days and a smaller fleet.

• Net loss narrowed to $283 million from $505 million in Q1 2025, reflecting operational improvements, cost discipline, and higher revenue per day.

• Adjusted EBITDA loss was $113 million, $20 million higher than the prior year, due to increased operating and administrative costs and strategic investments.

• Adjusted free cash flow improved by over $570 million year-over-year, reaching $80 million for the quarter.

• Liquidity at quarter-end was $915 million, with $2.9 billion in additional fleet funding capacity.

Financial highlights

• Revenue per day rose 3% year-over-year to $63.43, offsetting a 1% decline in rental days.

• Vehicle utilization reached a record 70.1% in Q1 2026.

• Per-unit fleet costs per month remained flat at $351.

• Adjusted free cash flow was $80 million, a $570 million improvement from 1Q25.

• Total liquidity stood at $915 million, with $2.9 billion in additional ABS capacity as of March 31.

Outlook and guidance

• Full-year 2026 adjusted EBITDA guidance is $850 million–$1 billion.

• Per-unit fleet costs per month expected to decrease to $315–$325 for FY 2026.

• Management expects continued operational resilience and improvement, with constructive summer demand and strong bookings in major event cities.

• Longer-term, normalized EBITDA is expected to be higher as fleet right-sizing costs subside.

• Further restructuring expenses of approximately $24 million are expected in 2026.