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Mar 31
Hertz Q1 2025 Earnings Report
Hertz reported a net loss as it continued executing its fleet transformation strategy.
Key Takeaways
Hertz saw declining revenue and a net loss in Q1 2025, but significant operational improvements in fleet management, cost control, and depreciation are setting up the company for future profitability.
Revenue fell 13% year-over-year to $1.813 billion due to tighter fleet strategy.
Net loss of $443 million, slightly higher than the $186 million loss a year earlier.
Depreciation per vehicle dropped significantly due to newer, more efficient fleet composition.
Retail vehicle sales hit a record, driven by strong residual values and the Hertz Car Sales strategy.
Hertz
Hertz
Hertz Revenue by Geographic Location
Revenue by Geographic Location
Americas RAC Revenue
CapyFin.com Forward Guidance
Hertz expects to return to positive Adjusted Corporate EBITDA by Q3 2025, driven by strategic fleet rotation, retail sales strength, and continued cost control.
Positive Outlook
- On track to achieve sub-$300 depreciation per unit in Q2 2025.
- Retail vehicle sales set a record in Q1 2025.
- 70% of U.S. fleet is now under 12 months old.
- Revenue management system upgrade expected to boost margins.
- Loyalty enrollments and Net Promoter Scores are improving.
Challenges Ahead
- Revenue declined due to 8% year-over-year fleet reduction.
- Macroeconomic uncertainty affecting corporate and government demand.
- Adjusted Corporate EBITDA remains negative.
- RPU and RPD slightly down due to timing of holidays and fleet mix.
- Free cash flow remains negative as investments continue.