Revenue and reported EPS beat a low bar. Revenue reached $2.396 billion versus published consensus of roughly $2.28 billion, while diluted EPS was $0.05 versus an expected loss of about $0.23. The headline GAAP profit is helped by a $98 million gain from changes in Public Warrant fair value, so the underlying result is less dramatic than the EPS swing suggests. (Income Statement)
| Metric | Q2 2026 | Q2 2025 | Published expectation / comparison |
|---|---|---|---|
| Revenue | $2.396B | $2.185B | ~$2.28B consensus |
| Diluted EPS | $0.05 | $(0.95) | $(0.23) consensus |
| Adjusted net income | $(47)M | $(91)M | — |
| Adjusted diluted EPS | $(0.11) | $(0.29) | — |
| Adjusted Corporate EBITDA | $81M | $18M | — |
| Total RPD | $61.98 | $56.89 | — |
| Total RPU per month | $1,542 | $1,429 | Company target: $1,500 full-year North Star |
| Adjusted DOE per transaction day | $37.49 | $36.13 | Slightly worse than company expectation |
| Adjusted free cash flow | $162M | $327M | — |
| Total net debt | $17.962B | $16.208B at Dec. 31, 2025 | — |
The operating beat is real and concentrated in pricing. Transaction days were essentially flat and the fleet was 1% smaller, yet RPD rose 9% and RPU rose 8%, pushing revenue up 10%; Americas RAC delivered the strongest performance, with RPD up 10% and segment adjusted EBITDA more than doubling to $88 million. (Financial Highlights; Segment results — Americas RAC) The company also says full-year RPU should finish above its $1,500 target, which is a modestly better outlook than previously implied. (Management discussion)
Costs remain the main limiter. Adjusted DOE rose 4% year over year to $37.49, slightly above expectations, although Hertz says normalized DOE improved about 2% after excluding higher revenue-linked costs, sale-leaseback expenses, and recall-related effects. Net depreciation per vehicle rose 18% to $302, in line with revised guidance, while recalls affected roughly 15,000 vehicles and reduced quarterly Adjusted Corporate EBITDA by approximately $30 million. (Financial Highlights; Management discussion)
The balance-sheet picture is still weak despite better quarterly earnings. Adjusted net income remained negative at $47 million, first-half adjusted free cash flow was negative $304 million, total debt increased to $18.747 billion from $17.054 billion at year-end, and LTM Adjusted Corporate EBITDA remained negative $59 million. (Adjusted Net Income reconciliation; Adjusted Free Cash Flow; Balance Sheet; LTM Adjusted Corporate EBITDA) Liquidity was roughly $984 million, in line with prior guidance and later lifted slightly above $1 billion by the July greenshoe issuance, so financing pressure eased but did not disappear. (Liquidity discussion)
Net read: better than feared, not a clean turnaround. The filing delivers a meaningful commercial improvement and a revenue/GAAP EPS beat, but the adjusted business is still loss-making, vehicle depreciation remains elevated, and leverage is rising. Relative to the low expectations embedded in the published consensus, that supports a narrow positive read; relative to a full recovery, the filing falls short.
Read the original 8-K on SEC EDGAR ↗