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- **Record Q3 performance**: $2.5B revenue, $190M EBITDA, 84% fleet utilization (highest since 2018).
- **Digital car sales success**: 70% rent-to-buy conversion in 100+ cities, e-commerce platform expansion.
- **Cost control & liquidity**: DOE per day down 1%, $2.2B total liquidity.
- **2026 growth plan**: Target $1B EBITDA by 2027 via off-airport (mid-single-digit growth) and mobility (10-20% growth).
- **Risks**: Q4 system outages cost $10-20M, 2026 DPU below $300/month contingent on fleet mix execution.

**【CEO Summary Section】**
- Q3 revenue reached $2.5 billion, with adjusted corporate EBITDA of $190 million, up $350 million year-over-year.
- Achieved record fleet utilization of 84% (highest since 2018) despite 2% of U.S. fleet under recall.
- Launched Hertz car sales e-commerce platform, with 70% rent-to-buy conversion rate in over 100 cities.
- North American Net Promoter Score (NPS) increased nearly 50% year-over-year.
- 2026 strategy includes growing off-airport and mobility businesses at mid-to-high single-digit rates, targeting $1 billion EBITDA by 2027.

**【CFO Financial Commentary】**
- Q3 GAAP net income: $184 million (first positive EPS in 2 years).
- Direct operating expenses (DOE) per day improved 1% year-over-year, driven by cost control.
- Total liquidity: $2.2 billion (including $1.1 billion unrestricted cash).
- Q4 guidance: Negative low to mid-single-digit EBITDA margin due to seasonal softness and $10-20 million revenue impact from system outages.
- 2026 outlook: 3-6% EBITDA margin, with DPU below $300/month.

**【Q&A Key Highlights】**
- **Value-creating platform**: Car sales, service, and mobility businesses will diversify revenue beyond core rental (e.g., 70%+ car sales through digital channels).
- **Fleet economics**: Model year 2026 buys at price/volume targets, enabling shorter hold periods and higher residuals.
- **International demand**: Airport demand up 4% year-over-year, corporate bookings improving post-Q2 lows.
- **2026 risks**: Elevated recalls and seasonal fluctuations may impact residuals and utilization.
- **Mobility growth**: Rideshare partnerships and AV infrastructure investments position Hertz for future mobility trends.

Hertz Global Holdings, Inc. (HTZ) 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

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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

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Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

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Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

HTZ

HTZ fundamentals

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