Total Revenue

Down ~6% (from $2,184M in Q4 2023 to $2,040M in Q4 2024)

The overall revenue decline is driven by a sharp drop in the Americas RAC segment overshadowing gains in International RAC revenue. While International revenue increased by approximately 87% YoY, the Americas segment fell dramatically by 26%, leading to the 6% overall decline in revenue. " " " "

Americas RAC Revenue

Down ~26% (from $1,805M in Q4 2023 to $1,331M in Q4 2024)

Americas RAC revenue contracted significantly due to lower transaction volumes and flat pricing, echoing similar trends observed in previous periods where reduced customer activity affected volume. This large drop highlights operational challenges in core markets and mirrors past issues seen in Q3 2024 with lower volumes driving revenue declines. " "

International RAC Revenue

Up ~87% (from $379M in Q4 2023 to $709M in Q4 2024)

International RAC revenue experienced a robust increase likely due to elevated travel demand and improved market conditions, with gains possibly supported by favorable foreign exchange impacts noted in earlier periods. The strong performance in this segment contrasts with domestic difficulties and indicates potential strategic recovery in international markets. " "

Net Income (Loss)

Worsened by ~37% (loss expanded from $348M in Q4 2023 to $479M in Q4 2024)

The net loss increased as the compound effects of reduced total revenue and rising operating costs took hold. This deterioration, with losses expanding from $348 million to $479 million, builds on earlier period weaknesses where lower revenues and operational inefficiencies began to weigh on profitability. " "

Interest Expense

Up ~19% (from $218M in Q4 2023 to $260M in Q4 2024)

Interest expense grew due to a combination of higher benchmark rates and increased debt levels used to support operations and fleet management—a trend consistent with previous observations when market conditions led to higher financing costs. The rise in interest expenses reflects the sensitivity of HTZ’s financial costs to external rate fluctuations. " " "

Operating Cash Flow

Down ~26% (from $564M in Q4 2023 to $414M in Q4 2024)

Operating cash flow declined as lower revenue levels and increased operating challenges reduced cash generation, further compounded by working capital adjustments. This 26% drop from $564 million to $414 million suggests that the operational headwinds observed in earlier quarters are now more pronounced, affecting liquidity and cash performance. " "

DPU

Q1 2025

"$350 to $375 range" " "

"Slightly inflated" " " "

lowered

DOE

Q1 2025

"low 30s per transaction day" " "

"low 30s per transaction day" " "

no change

EBITDA

Q1 2025

no prior guidance

"Negative EBITDA" "

no prior guidance

DPU

FY 2025

"targeting run rate DPU of below $300" " " "

"Targeting sub‑$300 net DPU" " " "

no change

RPU

FY 2025

no prior guidance

"Progressing toward a target of $1,500 RPU" "

no prior guidance

EBITDA margin

FY 2025

no prior guidance

"low single‑digit adjusted EBITDA margin" "

no prior guidance

Fleet Rotation

FY 2024

no prior guidance

"60% of cars being less than a year old" "

no prior guidance

Cash Flow

FY 2025

no prior guidance

"Anticipating cash burn in the first half of FY 2025 followed by cash generation in the second half" "

no prior guidance

Depreciation Per Unit Management

Q1 discussed elevated DPU driven by EV charges and early rotation plans " " ; Q2 set a target in the low $300s by early 2026 through fleet rotation " ; Q3 emphasized a robust strategy with targets below $300 and improvements in operational transformation " " "

Q4 noted that although guidance was set at $350–375, mis-timed vehicle sales and a drop in MMR values pushed net DPU above the top end of the range, while expressing confidence for Q1 2025 improvements "

Consistently discussed with evolving operational details. Although Q4 presented short‐term challenges due to sales timing, overall sentiment remains optimistic about long‑term targets.

Direct Operating Expense Efficiency

Q1 reported DOE per transaction day around $37 with cost-savings initiatives and early fleet benefits " ; Q2 showed a slight sequential improvement to $36 and set long‑term DOE targets in the low $30s " ; Q3 detailed measurable process improvements and a disciplined cost-control focus " "

Q4 highlighted that despite notable headwinds (a sizable increase in the insurance reserve), core DOE components and a slight decline in DOE per day were maintained, with expectations for normalized costs in 2025 " "

A recurring focus with gradual improvements; while insurance-related headwinds emerged in Q4, overall operational efficiency remains on track.

Revenue Generation and Dynamic Pricing Strategies

Q1 focused on rideshare growth, yield enhancements and new digital tools, including skip‑the‑counter and prepaid booking options " ; Q2 emphasized value‑added services and implementation of dynamic pricing tools " " ; Q3 discussed a test‑and‑learn approach, dynamic pricing gains and a customer‑first strategy " "

Q4 stressed leveraging dynamic pricing for value‑added services with a target RPU above $1,500 and noted strong improvements in direct digital booking channels and higher RPD bookings " "

Consistently positive with an expanding emphasis on digital optimization and revenue growth, reinforcing a robust, evolving approach to pricing and demand generation.

Fleet Rotation and Utilization Optimization

Q1 laid out an 18‑ to 24‑month rotation plan with significant EV reductions and plans to lower depreciation " ; Q2 focused on an accelerated rotation to push DPU lower and optimize market-level vehicle allocation " " ; Q3 highlighted being about 40% through the refresh with notable improvements in utilization and operational synchronization " " "

Q4 detailed aggressive fleet rotation with over 100,000 vehicles sold, a 30,000‑unit EV reduction and a 270 basis point improvement in utilization, despite short‑term DPU pressures from losses on vehicle sales " " " "

Intensified execution with clear improvements in utilization. Although short‑term DPU impact was noted, the overall strategy remains effective and positions the company for cost efficiencies.

Liquidity Management and Capital Market Activities

Q1 emphasized sufficient liquidity backed by a strong ABS cushion and revolving credit facilities " " ; Q2 highlighted a $1‑billion capital raise alongside $1.8 billion liquidity, setting the stage for refinancing and fleet investments " " ; Q3 reported liquidity exceeding $1.6 billion with proactive debt management and refinancing plans "

Q4 reported a liquidity position of $1.8 billion, including over $500 million in cash, a $500 million capital raise through new senior secured notes, and active steps toward managing upcoming maturities with plans for Q2 2025 as the liquidity low‐point " " "

Consistent focus on balance sheet strength with proactive capital market activities. The robust liquidity profile remains a cornerstone of the transformation strategy.

Vehicle Residual Value Risk

Q1 discussed the impact of declining residuals, especially for EVs, and measures to manage additional depreciation " " " ; Q2 mentioned liquidity cushions and accelerated rotation to cope with residual declines, along with potential incremental payments " " ; Q3 highlighted a large impairment charge and rotation strategies to mitigate risk " "

Q4 acknowledged MMR values dropping below forecasts due to mistimed sales, which impacted residual values, but noted that residuals appear to be stabilizing as 2025 approaches and that the overall strategy remains intact "

A persistent concern with volatility evident across periods. In Q4, the discussion focused on short‑term mis‑estimations while reinforcing a long‑term stabilization outlook.

Electric Vehicle Fleet Optimization

Q1 set an increased target to reduce the EV fleet by 30,000 with emphasis on lower utilization and higher depreciation for EVs " " ; Q2 noted EVs comprise less than 10% of the fleet and discussed allocation across business channels " ; Q3 reiterated that EVs are under 10% and are less of a focus compared to ICE vehicles "

Q4 announced the completion of a 30,000‑unit EV fleet reduction and stressed the strategic importance of EVs for rideshare markets, underscoring optimized placement in markets with strong EV infrastructure "

Consistent downsizing and optimization. The focus remains on aligning the EV mix with demand and operational efficiency while reducing cost pressures associated with lower utilization.

Customer Experience and Digital Transformation

Q1 highlighted initiatives to improve NPS through digital tools, including enhanced customer interfaces and skip‑the‑counter features for Dollar and Thrifty brands " " ; Q2 introduced a self‑service platform boosting NPS and loyalty, and leveraged technology to optimize websites " ; Q3 reinforced a customer‑first approach via rapid test‑and‑learn methodologies "

Q4 showcased significant progress with improved digital experiences yielding a 60‑point improvement in service recovery scores, 18% loyalty growth and expanded retail sales channels that enhanced overall customer satisfaction " " "

Continually emphasized with increasing positive sentiment. Digital transformation initiatives are maturing, resulting in enhanced customer satisfaction and loyalty across periods.

Vehicle Sales Forecasting and MMR Valuation Issues

Q1 had little to no discussion on forecasting or MMR valuation; Q2 mentioned challenges with residual forecasts and detailed MMR impacts indirectly via ABS adjustments " " ; Q3 did not prominently discuss these issues

Q4 explicitly addressed the misjudgment in MMR values that led to losses on vehicle sales and announced improved forecasting methods to better capture market trends going forward "

Emerging focus in Q4; although previously not emphasized, the company has increased attention on accurate forecasting and mitigating MMR valuation risks to improve future performance.

Operational Cost Pressures (Insurance, Repair, and Collisions)

Q1 discussed high repair and collision costs with steps to consolidate spend and manage out‑of‑service rates, targeting over $100 million in cost savings " ; Q2 dealt with higher insurance and labor costs partially offset by improvements in maintenance and collision expenses " ; Q3 highlighted increasing insurance costs alongside efforts on process improvements "

Q4 elaborated on a significant rise in the insurance reserve impacting DOE, while also noting favorable trends in repair and collision cost components, expecting cost normalization in 2025 " "

Consistent theme with evolving focus; while rising insurance costs are more pronounced in Q4, ongoing initiatives in repair and collision management continue to yield process improvements.

Leadership Change and Strategic Repositioning

Q1 featured CEO Wayne West outlining a transformation plan focused on operational excellence, fleet management and revenue growth " " ; Q2 detailed new executive appointments (including CFO, CCO, fleet, and legal leadership) as part of the transformation " ; Q3 underscored a best‑in‑class management team with a clear, data‑driven roadmap "

Q4 announced further leadership enhancements with the addition of executives like Chris Berg and Doria Holbrook, along with an organizational restructuring designed to accelerate execution across fleet, revenue and cost management pillars "

A consistently prioritized topic; leadership changes and strategic repositioning have progressively strengthened management focus, providing reassurance and setting the stage for long‑term success.

Macroeconomic Risks and Tariff Impacts

Q1, Q2 and Q3 had little to no mention of macroeconomic risks or tariff impacts in detail

Q4 introduced explicit commentary on macroeconomic risks, noting Hertz’s insulation from tariffs due to fleet diversification, and even suggesting that higher new car prices from tariffs could improve residual values "

New emphasis emerging in Q4; while previously not discussed, the topic now receives attention as a potential positive factor amid external economic pressures.