Hertz Global Holdings Reports Strong Revenue Gains Amid Transformation Efforts

Hertz Global Holdings, Inc. (NASDAQ: HTZ) unveiled its fourth quarter and full-year results for 2025, showcasing a robust transformation strategy that has begun to yield significant revenue gains. The company reported revenue of $2.0 billion for Q4 2025, and $8.5 billion for the entire year, marking the strongest year-over-year revenue performance since Q1 2024. This represents a notable recovery as Hertz navigates various external challenges.

The fourth quarter demonstrated sequential improvement in pricing, contributing to a year-over-year increase in Revenue per Unit (RPU) and Revenue Per Day (RPD). Hertz anticipates maintaining this momentum into Q1 2026, expecting mid-single-digit revenue growth driven by ongoing internal revenue management initiatives and a favorable pricing environment within the industry.

The company's utilization rate stood at 78% in Q4, and an average of 81% for the full year—an improvement of 200 basis points year over year. This increase in utilization has been instrumental in enhancing RPU, which averaged $1,334 for the quarter and $1,385 for the year.

Despite the positive revenue trajectory, Hertz reported a net loss of $194 million for Q4 and $747 million for the full year. However, the company highlighted a more than $2 billion year-over-year improvement in profitability, with diluted earnings per share (EPS) improving to $(0.72) for Q4 and $(2.43) for the year.

Adjusted Corporate EBITDA for Q4 reached $(205) million, marking an improvement of approximately $150 million year-over-year, significantly impacted by various transitory headwinds, including a government shutdown and FAA flight cancellations. For the full year, Adjusted Corporate EBITDA showed a remarkable improvement of over $1 billion.

Hertz has placed a strong emphasis on operational efficiency, with direct operating expense (DOE) per transaction day improving by 6% year-over-year. The company successfully reduced DOE by 3% in Q4 and 4% for the full year, despite a decline in transaction days.

Moreover, Hertz has made notable strides in enhancing customer experience, with its Net Promoter Score increasing nearly 50% year-over-year. This improvement reflects the company's commitment to enhancing rental ease, fleet quality, and service reliability.

The fourth quarter was not without challenges, as Hertz faced several external events that adversely affected EBITDA by over $100 million, including technology vendor outages and an unusually high level of vehicle recalls. Despite these hurdles, the company remains optimistic about the future, anticipating a more normalized outlook for residual values in 2026.

Looking ahead, Hertz is focused on expanding its off-airport and mobility business, further accelerating revenue growth while maintaining cost discipline. The early performance indicators for Q1 2026 show promising signs, with January revenue results indicating meaningful year-over-year improvement and a positive trend continuing into February.

Hertz is in the process of establishing a diversified platform for growth, focusing on four strategic areas: Rent-a-Car, Service, Fleet, and Mobility. Each segment presents unique scaling opportunities, and the company is committed to developing capabilities across these areas. This includes the digital evolution of Hertz Car Sales, exploring growth opportunities in Rent-a-Car, and piloting new offerings in Service.

Hertz Global Holdings is navigating through a transformative phase, with clear indications of structural revenue gains and operational improvements. As the company continues to optimize its fleet and enhance customer experiences, it is well-positioned to capitalize on favorable market conditions and drive sustained growth in the upcoming quarters.

Investors and stakeholders will be keen to follow the developments as Hertz conducts its earnings webcast on February 26, 2026, to discuss these results in detail.