Hertz Global: Revenue Growth Is Still Absent Amid Legal Scrutiny and Financial Strain

Let's cut to the chase: Hertz Global Holdings (HTZ) is a company in crisis. Despite a post-bankruptcy rebound that briefly lit up Wall Street, the rental car giant is now facing a perfect storm of stagnant revenue growth, mounting legal liabilities, and a shattered trust with customers and investors alike. The numbers don't lie, and the risks are piling up faster than Hertz can fix its broken fleet.

The Illusion of Recovery

Hertz's Q2 2025 results might look like a silver lining at first glance: revenues hit $2.185 billion, and adjusted EBITDA turned positive at $1 million after nearly two years of red ink Hertz Global Holdings Inc Reports Q2 2025 Earnings: Revenue at $2,185 Million, EPS Misses Estimates at -$0.95 [https://www.gurufocus.com/news/3044656/hertz-global-holdings-inc-reports-q2-2025-earnings-revenue-at-2185-million-eps-misses-estimates-at-095]^[3]. But dig deeper, and the picture darkens. Year-over-year revenue fell 7%, and the company's net loss—while improved from $865 million to $294 million—still reflects a business teetering on the edge Hertz Global Holdings Inc Reports Q2 2025 Earnings: Revenue at $2,185 Million, EPS Misses Estimates at -$0.95 [https://www.gurufocus.com/news/3044656/hertz-global-holdings-inc-reports-q2-2025-earnings-revenue-at-2185-million-eps-misses-estimates-at-095]^[3]. This isn't growth; it's a temporary reprieve.

The real problem? Hertz's core revenue drivers remain absent. The company's fleet utilization improved to 83%, but that's just a band-aid on a broken bone. With depreciation per unit at $251—still 16% above its $300 target—Hertz is squeezing every drop of efficiency from a system that's fundamentally broken Hertz Faces Revenue Miss, Data Breach Threatens Trust [https://stockstotrade.com/news/hertz-global-holdings-inc-htz-news-2025_05_13/]^[1]. Investors are right to ask: When's the last time Hertz posted consistent revenue growth? The answer: They haven't.

Legal Time Bombs and a Data Breach Disaster

Now let's talk about the 2025 data breach—a catastrophe that's compounding Hertz's woes. In April, the company admitted that a third-party vendor's zero-day vulnerabilities exposed millions of customer records, including Social Security numbers, payment card data, and driver's licenses Hertz Stock Takes a Hit: Analyzing the Plunge [https://stockstotrade.com/news/hertz-global-holdings-inc-htz-news-2025_04_21/]^[2]. This isn't just a PR nightmare; it's a financial landmine.

Take Texas alone: 96,665 residents were notified of the breach, triggering class-action lawsuits under state privacy laws Hertz Faces Revenue Miss, Data Breach Threatens Trust [https://stockstotrade.com/news/hertz-global-holdings-inc-htz-news-2025_05_13/]^[1]. Maine, New Hampshire, and California are following suit, with plaintiffs alleging negligence and delayed notifications Hertz Global Holdings Inc Reports Q2 2025 Earnings: Revenue at $2,185 Million, EPS Misses Estimates at -$0.95 [https://www.gurufocus.com/news/3044656/hertz-global-holdings-inc-reports-q2-2025-earnings-revenue-at-2185-million-eps-misses-estimates-at-095]^[3]. And let's not forget the $300 million make-whole claim from its 2020 bankruptcy—now resurfacing as a fresh headache for creditors Why Hertz Faces Major Challenges Ahead? [https://stockstotrade.com/news/hertz-global-holdings-inc-htz-news-2025_04_21-3/]^[4].

The SEC already has a history with Hertz. In 2022, an investigation confirmed accounting misconduct, though plaintiffs couldn't revive their case due to procedural limits Hertz Faces Revenue Miss, Data Breach Threatens Trust [https://stockstotrade.com/news/hertz-global-holdings-inc-htz-news-2025_05_13/]^[1]. Now, with the data breach and ongoing litigation, Hertz's governance risks are no longer theoretical—they're existential.

Liquidity, Debt, and the Road to Nowhere

Hertz's balance sheet tells a story of desperation. The company carries $18.4 billion in debt, a burden that's only worsened by the breach's remediation costs Hertz Stock Takes a Hit: Analyzing the Plunge [https://stockstotrade.com/news/hertz-global-holdings-inc-htz-news-2025_04_21/]^[2]. While management claims it has over $1 billion in liquidity post-breach, that's a drop in the bucket compared to its obligations.

Bank of America just cut its price target to $2.70 from $3.30, citing “ongoing financial struggles” Hertz Stock Takes a Hit: Analyzing the Plunge [https://stockstotrade.com/news/hertz-global-holdings-inc-htz-news-2025_04_21/]^[2]. The stock's -16.02% plunge after the breach announcement wasn't just a blip—it was a vote of no confidence Why Hertz Faces Major Challenges Ahead? [https://stockstotrade.com/news/hertz-global-holdings-inc-htz-news-2025_04_21-3/]^[4]. And with a current ratio of 2.0 and a quick ratio of 0.9, Hertz's ability to meet short-term liabilities is shaky at best Hertz Faces Revenue Miss, Data Breach Threatens Trust [https://stockstotrade.com/news/hertz-global-holdings-inc-htz-news-2025_05_13/]^[1].

The Bottom Line: A High-Risk Bet

Hertz's story is a cautionary tale for investors. The company's revenue stagnation, legal quagmires, and debt overload create a toxic mix. Even if Hertz navigates the data breach lawsuits and bankruptcy claims, the damage to its brand and customer trust will linger.

For now, this is a stock to avoid. The risks far outweigh the potential rewards—and in a market that punishes governance failures, Hertz is paying the price.