Hertz Global (HTZ) Q1 2026 earnings summary

Executive summary

• Achieved 11% year-over-year revenue growth in Q1 2026 to $2.0 billion, the strongest in three years, driven by commercial strategy improvements and market strength.

• Adjusted Corporate EBITDA improved by $141 million year-over-year to $(161) million, reflecting strong revenue, lower depreciation, and resilience despite recall headwinds.

• Launched Oro Mobility, expanding into driver-led and autonomous fleet management, with major partnerships including Uber.

• Transformation strategy focused on disciplined fleet management, revenue optimization, cost control, and progress on North Star metrics.

• Completed fleet refresh and continued expansion in mobility and rideshare, including autonomous fleet operations.

Financial highlights

• Revenue increased 11% year-over-year to $2.0 billion, with RPD up 5.5% to $57.38 and RPU up 5% to $1,353.

• GAAP net loss was $333 million; adjusted net loss was $224 million, improving by $105 million year-over-year.

• Adjusted EBITDA was negative $161 million, a $141 million improvement year-over-year.

• EBITDA margin improved by 860 basis points to -8% from -17% last year.

• Net Depreciation per Unit per Month (DPU) improved 13% year-over-year to $312.

Outlook and guidance

• Full-year EBITDA margin guidance maintained at 3%-6%; targeting $1 billion EBITDA in 2027.

• Days expected to be up mid-single digits for the year, with Q2 days down 2-3% year-over-year due to recalls.

• Fleet growth outlook reduced to low single digits year-over-year; targeting DPU under $300 and RPU over $1,500 for 2026.

• Liquidity expected to end Q2 just under $1 billion and above $1.5 billion by year-end, supported by additional ABS financing.

• Management expects continued progress in core rental operations and platform expansion, with ongoing focus on cost control and asset efficiency.