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- **Revenue Recovery**: First YoY growth in 8 quarters with $3.51 billion Q3 revenue, up 1%.
- **Avis First Success**: 4.9-star ratings and $100+ RPD, despite 3% Americas RPD decline.
- **Recall Impact**: $90 million+ costs from 5% grounded fleet, delaying EBITDA normalization.
- **International Expansion**: 5% RPD growth (excl. FX) and 40% EBITDA increase through strategic mix shifts.
- **Customer-Centric Strategy**: Long-term focus on service consistency, technology, and employee empowerment to differentiate from competitors.

**【CEO Summary Section】**
- **Revenue Growth**: Q3 2025 revenue reached $3.51 billion, a 1% year-over-year increase, marking the first quarter of YoY growth in 8 quarters.
- **Avis First Launch**: The premium product line achieved a 4.9-star customer rating, with RPD over $100, despite a 3% decline in overall Americas RPD.
- **Customer Experience Focus**: Emphasis on service consistency, dependability, and value differentiation to drive long-term growth, with investments in technology and employee experience.
- **Recall Impact**: 5% of Americas fleet grounded due to safety recalls, contributing to a 3% RPD decline and $90 million in incremental costs.

**【CFO Financial Commentary】**
- **Adjusted EBITDA**: Increased by 4% year-over-year, driven by cost control and mix shift to higher-margin leisure business in International.
- **Recall Costs**: Total recall-related expenses projected at $90-$100 million for 2025, with 2/3 of affected vehicles still awaiting repairs.
- **Liquidity and Capital**: $1 billion available liquidity, $1.9 billion ABS capacity, and $517 million negative free cash flow year-to-date due to fleet investments.
- **Fleet Management**: Retained older vehicles to meet summer demand, impacting depreciation and fleet costs.

**【Q&A Highlights】**
- **Summer Performance**: Americas RPD declined 3% YoY, but July/August showed stabilization; Q4 expected to see modest improvement.
- **Interest Expense**: Vehicle interest costs to rise due to $3 billion in maturing debt, half refinanced at higher rates.
- **International Growth**: RPD up 5% (excl. FX), driven by leisure mix shift; EBITDA up 40% YoY through cost discipline.
- **Customer Experience Tech**: Investing in real-time fleet monitoring and AI-driven customer care to improve service consistency.
- **Recall Outlook**: Majority of recall impact to persist into Q4 2025, with no immediate resolution from OEMs.


Avis Budget Group, Inc. (CAR) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

CAR

CAR fundamentals

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