Hertz Global Holdings, Inc.

Q1 revenue was $2.0 billion, up 11% year over year. GAAP net loss was $333 million; adjusted net loss was $224 million, an improvement of about $105 million year over year. GAAP diluted EPS was negative $1.06 and adjusted EPS was negative $0.72, improving by $0.35 year over year. Adjusted EBITDA was negative $161 million, up $141 million year over year, and EBITDA margin improved 860 basis points to negative 8% from negative 17%. Adjusted DOE per transaction day was $38.43, up 1.7% year over year. Gross DPU was $296 and net DPU was $312. Liquidity ended at $837 million, with an additional $200 million ABS financing completed in April; management expects just under $1 billion at the end of Q2 and more than $1.5 billion by year-end. For guidance, Hertz now expects full-year days to be up in the mid-single-digit range versus prior expectations of mid- to high single digits, fleet to be up low single digits versus prior mid-single digits, and EBITDA margin to remain in the 3% to 6% range. For Q2, days are expected to be down 2% to 3% year over year, fleet down 1% to 2%, net DPU well below $300, and EBITDA margin in the low to mid-single-digit range.

Gil West framed Q1 as proof that Hertz’s transformation strategy is working, repeatedly tying results to the company’s three North Star metrics: DPU below $300, RPU above $1,500, and DOE per day in the low $30s. He said Hertz is on track to hit the DPU target again this year and the RPU target in full-year 2026, while still aiming for $1 billion of EBITDA in 2027. His tone was confident and expansive, especially around Oro, which he described as a new chapter for Hertz and a bridge into future mobility and autonomy.

Scott Haralson focused on the numbers and the balance between growth and supply discipline. He cited revenue of $2.0 billion, adjusted EBITDA of negative $161 million, adjusted EPS of negative $0.72, and DOE per transaction day of $38.43, while noting recalls cost about $50 million of revenue and more than $25 million of adjusted EBITDA. He said liquidity was $837 million at quarter-end, with $200 million of new ABS liquidity in April, and expects just under $1 billion by Q2-end and north of $1.5 billion by year-end. He also said full-year net DPU should remain below $300, full-year EBITDA margin guidance stays at 3% to 6%, and the company is slightly reducing its full-year days and fleet outlook because it is choosing to limit capacity growth in the first half of the year.

Analysts pressed management on how to value Hertz now that Oro, fleet, and services are becoming more important than the core rental business. Management said the current valuation still reflects a traditional rental-car lens, but argued a sum-of-the-parts framework may be more appropriate once the platform is better disclosed and separated, and even suggested reporting may need to evolve. They also addressed whether the company could miss the low-$30s DOE target if revenue and RPU remain stronger than expected, with Scott saying the business may need only 10% to 15% more scale to get below $35 DOE per day. On RPD durability, management said pricing discipline in the market and Hertz’s own commercial strategies support confidence that the improvement can continue through the year.