Executive Summary

HTZ returned to GAAP EPS profitability: Q3 revenue $2.48B, GAAP diluted EPS $0.42, Adjusted EPS $0.12, and Adjusted Corporate EBITDA $190M with an 8% margin, aided by record utilization (84%) and sub-$300 DPU cadence .
Strong beat vs S&P Global consensus: revenue +3.2% ($2.48B vs $2.40B*) and Adjusted/Primary EPS +$0.06 ($0.12 vs $0.07*) on better utilization and disciplined fleet/DOE execution; international margins expanded to 18% .
Q4 guide cautious: negative low-to-mid-single-digit EBITDA margin, DPU expected to rise to $280–$285, with $10–$20M revenue impact from vendor IT outages and demand softness likely tied to the government shutdown; 2026 framework targets 3–6% EBITDA margin, with 2027 EBITDA goal of ~$1B .
Structural narrative turning: fleet rotation complete, retail car sales scaling (Cox/Amazon), NPS +~50% YoY in North America, and AI-enabled service—key drivers for price power, utilization, and multi-vertical platform build-out (rental, fleet, service, mobility) .

What Went Well and What Went Wrong

What Went Well
- Record utilization (84%) with improved process discipline despite recalls; RPU at $1,530, nearly flat YoY and improving intra-quarter; international RPD/RPU strength lifted margins to 18% .
- Sub-$300 DPU cadence maintained ($273), procurement for MY26 secured, positioning for below-$300 DPU through 2026; “Buy Right, Hold Right, Sell Right” retail channels expanding .
- Customer metrics and digital: NPS up ~50% YoY in North America; AI chat/call now handles 72% of U.S. inbound, improving satisfaction and cost efficiency; CEO: “creating a new platform for growth” .
What Went Wrong
- RPD down ~4% YoY as mix shifts and pricing headwinds persisted; management is reworking commercial levers, with October trends better than September .
- Q4 headwinds: elevated recalls, vendor outages ($10–$20M revenue hit), and government shutdown softness; guide implies negative EBITDA margin in Q4 .
- GAAP upside partially driven by one-time items (e.g., $154M legal settlement gain; $39M non-vehicle asset sale gains), highlighting the importance of Adjusted metrics for run-rate profitability assessment .

Financial Results

Metric	Q3 2024	Q2 2025	Q3 2025	Consensus (Q3 2025)*	Δ vs Cons (Q3 2025)*
Revenue ($B)	$2.58	$2.19	$2.48	$2.40*	+3.2%*
GAAP Diluted EPS ($)	-4.34	-0.95	0.42	—	—
Adjusted Diluted EPS ($)	-0.68	-0.34	0.12	0.07*	+$0.06*
Adjusted Corporate EBITDA ($M)	-157	1	190	—	—
Net Income Margin (%)	(52)%	(13)%	7%	—	—
Adj. Corp. EBITDA Margin (%)	(6)%	~0%	8%	—	—

Notes: S&P Global consensus and deltas marked with *; see Estimates Context for details.

Segment performance (Q3 2025 vs Q3 2024)

Segment	Revenue ($M)	YoY	Adj. EBITDA ($M)	Margin	YoY
Americas RAC	1,910 vs 2,062	(7)%	152 vs (169)	8% vs (8)%	+1,600 bps
International RAC	568 vs 514	+11%	100 vs 63	18% vs 12%	+600 bps

Key KPIs (company-wide)

KPI	Q1 2025	Q2 2025	Q3 2025
Average Rentable Vehicles (units)	477,273	512,854	527,992
Transaction Days (000s)	33,902	38,695	40,884
Utilization (%)	79%	83%	84%
Total RPD ($)	53.38	55.65	59.26
Total RPU/Month ($)	1,264	1,400	1,530
DPU/Month ($)	353	251	273

Non-GAAP/one-timers in Q3 impacting GAAP: $154M legal settlement gain and $39M gain on sale of non-vehicle assets; Adjusted metrics remove these items .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Adjusted Corp. EBITDA Margin	Q4 2025	n/a	Negative low-to-mid single digits	New
Depreciation per Unit (DPU)	Q4 2025	n/a	$280–$285 per month	New
DOE per day	Q4 2025	n/a	~5% YoY lower; ex prior-year reserve true-up: down ~1%–2%	New
Revenue impact (IT outages)	Q4 2025	n/a	-$10M to -$20M	New
DPU cadence	FY 2026	Sub-$300 target in 2025	Maintain sub-$300 throughout 2026	Maintained/Extended
EBITDA margin	FY 2026	n/a	3%–6%	New
EBITDA target	FY 2027	n/a	~$1B	New
Fleet procurement	MY26	n/a	>80% secured	New
Transaction days growth	FY 2026	n/a	Mid-single-digit	New
Segment growth cadence	FY 2026	n/a	Airport: low SD; Off-airport: mid–high SD; Mobility: 10%–20%	New

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 2025 and Q1 2025)	Current Period (Q3 2025)	Trend
Fleet/DPU	Q1: DPU $353, targeted sub-$300 by Q2; >70% of U.S. fleet ≤12 months . Q2: DPU $251; ~80% of U.S. fleet <1 year .	DPU $273; sub-$300 cadence; MY26 buys secured; maintain sub-$300 through 2026 .	Sustained normalization; stable sub-$300 outlook.
Utilization	Q1 79% ; Q2 83% (record second-quarter) .	84% (highest since 2018); total-fleet utilization also improved .	Improving, process-driven.
Pricing/RPD	Q1 RPD down 5% YoY amid mix shifts . Q2 RPD down 5% YoY .	RPD down ~4% YoY; intra-quarter/October improved; price tactics overhaul underway .	Inflecting, but still a headwind YoY.
Retail Car Sales	Q1 record retail sales; leaning into DTC . Q2 strong retail volumes .	Expanding digital (Cox/Amazon); targeting majority retail e-comm; +$2k+ per unit vs wholesale opportunity .	Scaling as structural profit lever.
Customer Experience/AI	Q1 NPS +11 pts . Q2 NPS improved .	NPS +~50% YoY in NA; AI chat covers 72% inbound; digital CX upgrades .	Material progress.
Macro/Recalls	Q1 tightening fleet amid uncertainties . Q2: improving airport demand; recalls manageable .	2% U.S. fleet under recall in Q3; Q4 recalls elevated; gov’t shutdown softness .	Near-term headwinds.
Liquidity/Capital	Q1: RCF/ABS maturities extended . Q2: $1.45B+ liquidity .	$2.2B+ liquidity; $425M unsecured exchangeables with capped call; ABS markets healthy .	Strengthened access/cushion.
Platform Vision	Q1 “Back-to-Basics” roadmap . Q2: best results in ~2 years .	Platform across rental, fleet, service, mobility to drive diversified growth .	Broadening story beyond RAC.

Management Commentary

CEO (Gil West): “This quarter proves that we're delivering on our commitments... creating a new platform for growth.” “We completed our transformative fleet refresh... achieved a record high utilization rate since 2018.”
CCO (Sandeep Dube): “Global RPD was down approximately 4% YoY... October RPD performed even better” as pricing tools and tactics improve; “RPU came in at $1,530… utilization 84%” .
CFO (Scott Haralson): “First positive EPS in over two years… targeting a 3%–6% EBITDA margin for next year… on our way to $1B of EBITDA in 2027” .
Strategy: Retail car sales evolution (Cox/Amazon), short-hold fleet strategy, and modern pricing systems; 2026 MY buys at target price/volume support sub-$300 DPU .

Q&A Highlights

Platform strategy beyond rental: Management framing Hertz as a mobility platform across rental, fleet, service, and mobility with scalable car sales and service footprints; Q&A emphasized retail/e-comm capacity and AV readiness over time .
Sub-$300 DPU sustainability: Anchored by 2026 procurement, mix/channel discipline, and disposal via retail channels; expects stable residuals and channel management to support DPU and revenue .
Demand/pricing dynamics: Corporate turned positive in October; inbound improving but still down low-single digits; government-related demand softness in November; pricing improved intra-quarter and into October .
Fleet growth vs market pricing: 2026 fleet growth concentrated in off-airport and mobility (mid–high SD and 10–20% growth, respectively) while airport grows at GDP-like rates; intent is not share grabs but disciplined, profitable growth .
Utilization sustainability: Gains driven by process, demand generation, and selling vehicles without long off-rent periods as e-comm scales; recalls a short-term headwind, especially in Q4 .

Estimates Context

Q3 2025 vs S&P Global consensus: Revenue $2.48B vs $2.40B* (beat +3.2%); Primary (Adjusted) EPS $0.12 vs $0.07 (beat +$0.06*). Estimates based on ~7 contributors for EPS/Revenue* .
S&P “EBITDA” vs company measure: S&P EBITDA actual $326M* vs consensus $170M*; company’s Adjusted Corporate EBITDA $190M—definitions differ (S&P includes different add-backs vs company’s corporate measure) .
Forward snapshot (consensus): Q4 2025 revenue ~$1.94B*, Primary EPS ~-$0.54*—management’s Q4 guide (negative EBITDA margin, elevated recalls, IT outage headwinds) is directionally consistent .

Values marked with * are from S&P Global (Capital IQ) consensus and actuals.

Key Takeaways for Investors

The operating turnaround is taking: HTZ delivered GAAP EPS profitability and positive Adjusted EPS with record utilization and normalized DPU, while international drove attractive margins—evidence the core RAC engine is stabilizing .
Beat against low expectations: Clear revenue/EPS beats vs S&P consensus underscore execution and better late-quarter pricing/utilization; international pricing strength is a lever for mix/margin .
Near-term caution: Q4 guide implies margin softness on recalls, outages, and gov’t demand—watch RPD trajectory and DPU vs the $280–$285 guide for confirmation of resilience .
Structural upside from retail: Scaling direct-to-consumer car sales (Cox/Amazon) can capture ~$2k+ per unit incremental margins, compress off-rent time, bolster utilization, and monetize F&I—key to 2026–2027 earnings cadence .
2026–2027 roadmap credible: Sub-$300 DPU sustained, 3%–6% 2026 EBITDA margin target, and $1B 2027 EBITDA ambition provide a multi-year margin re-rating vector if commercial and CX initiatives deliver .
Monitor pricing power: October improvement is encouraging; sustained RPD progress alongside utilization is the swing factor for margin expansion and estimate revisions .
Balance sheet/liquidity adequate: >$2.2B liquidity and active ABS/unsecured financing (with 2026 partial redemption plans) reduce funding risk through the execution window .

Citations

Q3 2025 press release and 8-K (financials, KPIs, segments, non-GAAP, liquidity):
Q3 2025 earnings call (strategy, guidance, Q&A):
Prior quarters for trend analysis (Q2/Q1 2025):

S&P Global consensus note

Consensus estimate values and S&P actuals marked with * are retrieved from S&P Global (Capital IQ).

HERTZ GLOBAL HOLDINGS, INC (HTZ)·Q3 2025 Earnings Summary