The core rental business is showing clear operational improvement (revenue +10%, RPD +9%, EBITDA +$63M) but recall headwinds and rising depreciation (DPU +18%) cap earnings power. The adjusted EPS beat of 55% vs consensus is notable but driven by non-operational items (warrant revaluation, asset sale gains). Watch for Q3 guidance on recall normalization and DPU trajectory toward the $300 target — if recalls abate, the stock could re-rate higher. The Oro Mobility AV partnership with Uber is a long-term catalyst but not near-term material.
Price Chart
Executive Summary
Hertz reported Q2 2026 revenue of $2.396B (+10% YoY) and GAAP net income of $64M (vs -$294M loss a year ago), but an adjusted net loss of -$47M. Adjusted Corporate EBITDA of $81M beat the top end of revised guidance and improved $63M YoY. The company continues to face headwinds from elevated vehicle recalls (~$30M EBITDA impact) and rising depreciation costs (DPU +18% YoY), but strong pricing (RPD +9%) and commercial momentum drove the top line.
Key Financial Metrics
Key Facts
- Revenue $2.396B, +10% YoY, driven by strongest Q2 RPD on record (ex-2022)
- GAAP net income $64M vs -$294M loss YoY; Diluted GAAP EPS $0.05
- Adjusted net loss -$47M; Adjusted Diluted EPS -$0.11 (vs consensus -$0.24, beat)
- Adjusted Corporate EBITDA $81M, +$63M YoY, above top end of revised guidance
- Net DPU $302, +18% YoY, in line with revised guidance; expects full-year DPU at or below $300
- Recall headwind ~$30M to Adjusted Corporate EBITDA; impacted ~15,000 vehicles
- Liquidity $984M at quarter-end; issued $350M Exchangeable First Lien Notes in June
- Oro Mobility drivers completed >6M miles; AV partnership with Uber on track for H2 2026
Financial Impact
Revenue +10% YoY to $2.396B; Adjusted Corporate EBITDA $81M vs $18M YoY; GAAP net income swing of +$358M YoY
Risk Factors
- Vehicle recall activity remains elevated (~300% YoY) and unpredictable, impacting utilization and EBITDA
- Net DPU rose 18% YoY to $302; fleet aging and residual value risk could pressure depreciation further
- Stockholders' equity deficit widened to -$628M; total debt $18.7B vs market cap ~$493M — high leverage
- Adjusted net loss persists (-$47M); GAAP profitability driven by non-cash warrant gains and asset sales
- LTM Adjusted Corporate EBITDA remains negative at -$59M; net corporate leverage not meaningful
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001657853-26-000045 |
| Document: htz-20260806.htm | 0001657853-26-000045 |
| Document: 0001657853-26-000045-index-headers.html | 0001657853-26-000045 |
| Document: 0001657853-26-000045-index.html | 0001657853-26-000045 |
| Document: 0001657853-26-000045.txt | 0001657853-26-000045 |
| 8-K Data (Synthetic) | 0001657853-26-000045 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 21, 2026 5d ago | SC 13D/A | $2.18 | awaiting T+60 | — | $2.01 (−8.03%) |
Oct 20, 2026 7d ago | 8-K | $1.92 | awaiting T+60 | — | $2.01 (+4.43%) |
Oct 13, 2026 13d ago | 3 | $1.85 | awaiting T+60 | — | $2.01 (+8.38%) |
Oct 5, 2026 21d ago | SC 13D/A | $2.06 | awaiting T+60 | — | $2.01 (−2.67%) |
Oct 1, 2026 25d ago | 8-K | $1.76 | awaiting T+60 | — | $2.01 (+13.92%) |
Aug 6, 2026 11w ago | 8-K | $2.02 | awaiting T+60 | — | $2.01 (−0.74%) |
Jul 23, 2026 13w ago | 8-K | $1.81 $1.84 | ▲ +1.66% | ▼ −2.07% | $2.01 (+10.77%) |
Jun 29, 2026 17w ago | 8-K | $2.27 $1.74 | ▲ +23.18% | ▲ +26.00% | $2.01 (+11.48%) |
Jun 26, 2026 17w ago | 424B5 | $2.30 $1.85 | ▲ +19.57% | ▲ +23.93% | $2.01 (+12.83%) |
Jun 25, 2026 17w ago | 8-K | $2.68 $1.82 | ▲ +32.09% | ▲ +35.94% | $2.01 (+25.19%) |
US Market Status
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