Hertz Logs Best Quarterly Results in Nearly Two Years, Driven by Half a Billion Dollar Profitability Improvement

Business Wire

4 days ago

ESTERO, Fla.--(BUSINESS WIRE)--Hertz Global Holdings, Inc. (NASDAQ: HTZ) ("Hertz," "Hertz Global," or the "Company") today reported results for its second quarter 2025.
HIGHLIGHTS
Net income and Adjusted Corporate EBITDA both improved ~$0.5 billion year-over-year, marking the Company's first quarter of positive Adjusted Corporate EBITDA in nearly two years, a result of its disciplined fleet management, operational efficiency, and rigorous cost management
The Company's 'Buy Right, Hold Right, Sell Right' strategy continued to deliver results:
Hertz achieved depreciation per unit per month (DPU) of $251, exceeding its North Star target of sub $300 by 16% and building on the momentum from the first quarter of 2025. The Company has secured all of its Model Year 2025 fleet at pre-tariff pricing
Vehicle Utilization reached 83%, a year-over-year increase of 300 basis points, as the Company executed on fleet optimization with greater precision and agility. Nearly 80% of the core U.S. rental fleet is less than a year old
Hertz achieved its highest second-quarter retail vehicle sales volume in five years, including through its direct-to-consumer Hertz Car sales, highlighting strong demand
Direct operating expenses (DOE) declined 3% year-over-year. DOE per transaction day improved both sequentially and year-over-year, reflecting disciplined cost control and operational agility
The Company's global Net Promoter Score improved by 11 points year-over-year, underscoring its commitment to service excellence and digital innovation
The Company ended the quarter with over $1.45 billion in liquidity
EARNINGS WEBCAST INFORMATION
Hertz Global's live webcast and conference call to discuss its second quarter 2025 results will be held on August 7, 2025 at 9:00 a.m. Eastern Time. The conference call will be broadcast live in listen-only mode on the Company's Investor Relations website at IR.Hertz.com. If you would like to access the call by phone and ask a question, please go to Hertz Q2 2025 earnings teleco registration, and you will be provided with dial in details. Investors are encouraged to dial in approximately 15 minutes prior to the call. A web replay will remain available on the website for approximately one year. The earnings release and related supplemental schedules containing the reconciliations of non-GAAP measures will be available on the Hertz website, IR.Hertz.com.
ABOUT HERTZ
Hertz Global Holdings, Inc. is one of the world's leading car rental and mobility solutions providers. Its subsidiaries, including The Hertz Corporation, and licensees operate the Hertz, Dollar, Thrifty, and Firefly vehicle rental brands, with more than 11,000 rental locations in 160 countries around the globe. The Company also operates the Hertz Car Sales brand, which offers a range of quality, competitively priced used cars for sale online and at locations across the United States, and the Hertz 24/7 car-sharing business in Europe. For more information about Hertz, visit www.hertz.com.
SUMMARY RESULTS
Three Months Ended
June 30,
Percent
Inc/(Dec)
2025 vs 2024
($ in millions, except earnings per share or where noted)
2025
2024
Hertz Global - Consolidated
Total revenues
$
2,185
$
2,353
(7
)%
Net income (loss)
$
(294
)
$
(865
)
(66
)%
Diluted earnings (loss) per share
$
(0.95
)
$
(2.82
)
(66
)%
Net income (loss) margin
(13
)%
(37
)%
Adjusted net income (loss) (a)
$
(104
)
$
(440
)
(76
)%
Adjusted diluted earnings (loss) per share (a)
$
(0.34
)
$
(1.44
)
(76
)%
Adjusted Corporate EBITDA (a)
$
1
$
(460
)
NM
Adjusted Corporate EBITDA Margin (a)
—
%
(20
)%
Average Vehicles (in whole units)
542,532
577,224
(6
)%
Average Rentable Vehicles (in whole units)
512,854
546,187
(6
)%
Vehicle Utilization
83
%
80
%
Transaction Days (in thousands)
38,695
39,721
(3
)%
Total RPD (in dollars) (b)
$
55.65
$
58.80
(5
)%
Total RPU Per Month (in whole dollars) (b)
$
1,400
$
1,425
(2
)%
Depreciation Per Unit Per Month (in whole dollars) (b)
$
251
$
595
(58
)%
Americas RAC Segment
Total revenues
$
1,738
$
1,928
(10
)%
Adjusted EBITDA
$
42
$
(403
)
NM
Adjusted EBITDA Margin
2
%
(21
)%
Average Vehicles (in whole units)
435,737
467,863
(7
)%
Average Rentable Vehicles (in whole units)
407,336
439,284
(7
)%
Vehicle Utilization
83
%
81
%
Transaction Days (in thousands)
30,935
32,216
(4
)%
Total RPD (in dollars) (b)
$
56.08
$
59.73
(6
)%
Total RPU Per Month (in whole dollars) (b)
$
1,420
$
1,460
(3
)%
Depreciation Per Unit Per Month (in whole dollars) (b)
$
248
$
644
(61
)%
International RAC Segment
Total revenues
$
447
$
425
5
%
Adjusted EBITDA
$
42
$
(6
)
NM
Adjusted EBITDA Margin
9
%
(1
)%
Average Vehicles (in whole units)
106,795
109,361
(2
)%
Average Rentable Vehicles (in whole units)
105,518
106,903
(1
)%
Vehicle Utilization
81
%
77
%
Transaction Days (in thousands)
7,760
7,505
3
%
Total RPD (in dollars) (b)
$
53.93
$
54.78
(2
)%
Total RPU Per Month (in whole dollars) (b)
$
1,322
$
1,282
3
%
Depreciation Per Unit Per Month (in whole dollars) (b)
$
261
$
384
(32
)%
NM = Not meaningful
(a) Represents a non-GAAP measure. See the accompanying reconciliations included in Supplemental Schedule II for 2025 and 2024.
(b) Based on December 31, 2024 foreign exchange rates.
Expand
UNAUDITED FINANCIAL DATA, SUPPLEMENTAL SCHEDULES, NON-GAAP MEASURES AND DEFINITIONS
In this earnings release, we include select unaudited financial data of Hertz Global, Supplemental Schedules, which are provided to present segment results, and reconciliations of non-GAAP measures to their most comparable GAAP measures. Following the Supplemental Schedules, the Company provides definitions for terminology used throughout the earnings release and the Company's rationale regarding the importance and usefulness of non-GAAP measures for investors and management.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain statements contained or incorporated by reference in this release, and in related comments by the Company's management, include 'forward-looking statements.' Forward-looking statements are identified by words such as "believe," "expect," "project," "potential," "anticipate," "intend," "plan," "estimate," "seek," "will," "may," "would," "should," "could," "forecasts," "guidance" or similar expressions, and include information concerning our liquidity, our results of operations, our business strategies, economic and industry conditions and other information. These forward-looking statements are based on certain assumptions that the Company has made in light of its experience in the industry, as well as its perceptions of historical trends, current conditions, expected future developments and other factors. The Company believes these judgments are reasonable, but you should understand that these forward-looking statements are not guarantees of future performance or results, and that the Company's actual results could differ materially from those expressed in the forward-looking statements due to a variety of important factors, both positive and negative, that may be revised or supplemented in subsequent reports, such as Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed or furnished to the SEC.
Important factors that could affect the Company's actual results and cause them to differ materially from those expressed in forward-looking statements include, among other things.
mix of program and non-program vehicles in the Company's fleet, which can lead to increased exposure to residual value risk upon disposition;
the potential for residual values associated with non-program vehicles in the Company's fleet to decline, including suddenly or unexpectedly, or fail to follow historical seasonal patterns;
the Company's ability to purchase adequate supplies of competitively priced vehicles at a reasonable cost in order to efficiently service rental demand, including upon any disruptions in the global supply chain;
the Company's ability to effectively dispose of vehicles, at the times and through the channels, that maximize the Company's returns;
the age of the Company's fleet, and its impact on vehicle carrying costs, customer service scores, as well as on the Company's ability to sell vehicles at acceptable prices and times;
disruptions in the supply chain, including in connection with any increases in tariffs or changes in tariff policies or trade agreements;
whether a manufacturer of the Company's program vehicle fulfills its repurchase obligations;
the frequency or extent of manufacturer safety recalls;
levels of travel demand, particularly business and leisure travel in the U.S. and in global markets;
seasonality and other occurrences that disrupt rental activity during the Company's peak periods, including in critical geographies;
the Company's ability to accurately estimate future levels of rental activity and adjust the number, location and mix of vehicles used in the Company's rental operations accordingly;
the Company's ability to implement its business strategy or strategic transactions, including the Company's ability to implement plans to support a modern mobility ecosystem;
the Company's ability to achieve cost savings and normalized depreciation levels, as well as revenue enhancements from its profitability initiatives and other operational programs;
the Company's ability to adequately respond to changes in technology impacting the mobility industry;
significant changes in the competitive environment and the effect of competition in the Company's markets on rental volume and pricing;
the Company's reliance on third-party distribution channels and related prices, commission structures and transaction volumes;
the Company's ability to offer services for a favorable customer experience, and to retain and develop customer loyalty and market share;
the Company's ability to maintain its network of leases and vehicle rental concessions at airports and other key locations in the U.S. and internationally;
the Company's ability to maintain favorable brand recognition and a coordinated branding and portfolio strategy;
the Company's ability to attract and retain effective front-line employees, senior management and other key employees;
the Company's ability to effectively manage its union relations and labor agreement negotiations;
the Company's ability to manage and respond to cybersecurity threats and cyber attacks on the Company's information technology systems or those of the Company's third-party providers;
the Company's ability, and that of the Company's key third-party partners, to prevent the misuse or theft of information the Company possesses, including as a result of cyber attacks and other security threats;
the Company's ability to evaluate, maintain, upgrade and consolidate its information technology systems;
the Company's ability to comply with current and future laws and regulations in the U.S. and internationally regarding data protection, data security and privacy risks;
risks associated with operating in many different countries, including the risk of a violation or alleged violation of applicable anti-corruption or anti-bribery laws and the Company's ability to repatriate cash from non-U.S. affiliates without adverse tax consequences;
risks relating to tax laws, including the elimination of tax credits for EVs purchased after September 30, 2025 and those tax laws that affect the Company's ability to recapture accelerated tax depreciation and expensing, as well as any adverse determinations or rulings by tax authorities;
the Company's ability to utilize its net operating loss carryforwards;
the Company's exposure to uninsured liabilities relating to personal injury, death and property damage, or otherwise, including material litigation;
the potential for adverse changes in laws, regulations, policies or other activities of governments, agencies and similar organizations, including those related to environmental matters, optional insurance products or policies, franchising and licensing matters, the ability to pass-through rental car related expenses or taxes, among others, that affect the Company's operations, the Company's costs or applicable tax rates;
the risk of an impairment of the Company's long-lived assets, which risk could be impacted by, among other things, the timing of our fleet rotation;
the Company's ability to recover its goodwill and indefinite-lived intangible assets when performing impairment analysis;
the potential for changes in management's best estimates and assessments;
the Company's ability to maintain an effective compliance program;
the availability of earnings and funds from the Company's subsidiaries;
the Company's ability to comply, and the cost and burden of complying, with corporate and social responsibility regulations or expectations of stakeholders, and otherwise advance the Company's corporate responsibility priorities;
the availability of additional, or continued sources, of financing at acceptable rates for the Company's revenue earning vehicles and to refinance the Company's existing indebtedness, and the Company's ability to comply with the covenants in the agreements governing its indebtedness;
the extent to which the Company's consolidated assets secure its outstanding indebtedness;
volatility in the Company's share price, the Company's ownership structure and certain provisions of the Company's charter documents, which could, among other things, negatively affect the market price of the Company's common stock;
the Company's ability to implement an effective business continuity plan to protect the business in exigent circumstances;
the Company's ability to effectively maintain effective internal control over financial reporting; and
the Company's ability to execute strategic transactions.
Additional information concerning these and other factors can be found in the Company's filings with the SEC, including its Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
You should not place undue reliance on forward-looking statements. All forward-looking statements attributable to the Company, or persons acting on its behalf, are expressly qualified in their entirety by the foregoing cautionary statements. All such statements speak only as of the date of this release, and, except as required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
UNAUDITED CONSOLIDATED BALANCE SHEETS
(In millions, except par value and share data)
December 31, 2024
ASSETS
Cash and cash equivalents
$
503
$
592
Restricted cash and cash equivalents:
Vehicle
341
258
Non-vehicle
285
283
Total restricted cash and cash equivalents
626
541
Total cash and cash equivalents and restricted cash and cash equivalents
1,129
1,133
Receivables:
Vehicle
276
389
Non-vehicle, net of allowance of $63 and $58, respectively
874
816
Total receivables, net
1,150
1,205
Prepaid expenses and other assets
739
894
Revenue earning vehicles:
Vehicles
14,468
12,714
Less: accumulated depreciation
(1,173
)
(751
)
Total revenue earning vehicles, net
13,295
11,963
Property and equipment, net
586
623
Operating lease right-of-use assets
2,286
2,088
Intangible assets, net
2,853
2,852
Goodwill
1,045
1,044
Total assets
$
23,083
$
21,802
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable:
Vehicle
$
367
$
161
Non-vehicle
531
481
Total accounts payable
898
642
Accrued liabilities
1,336
1,174
Accrued taxes, net
168
158
Debt:
Vehicle
12,202
11,231
Non-vehicle
5,434
5,104
Total debt
17,636
16,335
Public Warrants
302
178
Operating lease liabilities
2,280
2,073
Self-insured liabilities
640
617
Deferred income taxes, net
327
472
Total liabilities
23,587
21,649
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.01 par value, no shares issued and outstanding
—
—
Common stock, $0.01 par value, 484,708,939 and 481,502,623 shares issued, respectively, and 309,896,895 and 306,690,579 shares outstanding, respectively
5
5
Treasury stock, at cost, 174,812,044 and 174,812,044 common shares, respectively
(3,430
)
(3,430
)
Additional paid-in capital
6,421
6,396
Retained earnings (Accumulated deficit)
(3,239
)
(2,502
)
Accumulated other comprehensive income (loss)
(261
)
(316
)
Total stockholders' equity (deficit)
(504
)
153
Total liabilities and stockholders' equity (deficit)
$
23,083
$
21,802
Expand
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended
June 30,
Six Months Ended
June 30,
(In millions)
2025
2024
2025
2024
Cash flows from operating activities:
Net income (loss)
$
(294
)
$
(865
)
$
(737
)
$
(1,051
)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and reserves for revenue earning vehicles, net
458
1,124
1,082
2,194
Depreciation and amortization, non-vehicle
29
41
59
73
Amortization of deferred financing costs and debt discount (premium)
20
15
40
33
PIK Interest on Exchangeable Notes
—
—
11
—
Stock-based compensation charges
16
16
32
32
Stock-based compensation forfeitures
—
—
—
(68
)
Provision for receivables allowance
28
32
53
63
Deferred income taxes, net
(24
)
349
(148
)
(65
)
(Gain) loss on sale of non-vehicle capital assets
(89
)
—
(89
)
—
Change in fair value of Public Warrants
115
(165
)
124
(251
)
Changes in financial instruments
104
2
104
8
Other
8 8
9
(1
)
Changes in assets and liabilities:
Non-vehicle receivables
(127
)
(165
)
(84
)
(201
)
Prepaid expenses and other assets
(19
)
(3
)
(53
)
(59
)
Operating lease right-of-use assets
105
90
218
190
Non-vehicle accounts payable
21
67
28
63
Accrued liabilities
117
40
138
71
Accrued taxes, net
(34
)
31
4
52
Operating lease liabilities
(95
)
(100
)
(208
)
(200
)
Self-insured liabilities
7
29
14
33
Net cash provided by (used in) operating activities
346
546
597
916
Cash flows from investing activities:
Revenue earning vehicles expenditures
(3,049
)
(3,723
)
(5,896
)
(5,627
)
Proceeds from disposal of revenue earning vehicles
2,126
1,669
4,250
2,902
Non-vehicle capital asset expenditures
(22
)
(26
)
(44
)
(59
)
Proceeds from non-vehicle capital assets disposed of
99
4
126
7
Return of (investment in) equity investments
—
(1
)
—
(3
)
Net cash provided by (used in) investing activities
(846
)
(2,077
)
(1,564
)
(2,780
)
Cash flows from financing activities:
Proceeds from issuance of vehicle debt
2,648
1,149
3,774
1,683
Repayments of vehicle debt
(1,606
)
(229
)
(2,990
)
(1,121
)
Proceeds from issuance of non-vehicle debt
156
1,950
1,056
2,885
Repayments of non-vehicle debt
(579
)
(1,245
)
(859
)
(1,735
)
Payment of financing costs
(28
)
(42
)
(41
)
(42
)
Other
(4
)
(1
)
(7
)
(3
)
Net cash provided by (used in) financing activities
587
1,582
933
1,667
Effect of foreign currency exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents
21
(2
)
30
(15
)
Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents during the period
108
49
(4
)
(212
)
Cash and cash equivalents and restricted cash and cash equivalents at beginning of period
1,021
945
1,133
1,206
Cash and cash equivalents and restricted cash and cash equivalents at end of period
$
1,129
$
994
$
1,129
$
994
Expand
Supplemental Schedule I
Three Months Ended June 30, 2025
Three Months Ended June 30, 2024
Revenues
$
1,738
$
447
$
—
$
2,185
$
1,928
$
425
$
—
$
2,353
Expenses:
Direct vehicle and operating
1,132
263
(1
)
1,394
1,199
244
(3
)
1,440
Depreciation of revenue earning vehicles and lease charges, net
325
90
—
415
905
130
—
1,035
Depreciation and amortization of non-vehicle assets
23
4
2
29
28
3
10
41
Selling, general and administrative
132
57
57
246
137
46
60
243
Interest expense, net:
Vehicle
129
23
—
152
123
26
—
149
Non-vehicle
1
(4
)
235
232
—
(6
)
94
88
Total interest expense, net
130
19
235
384
123
20
94
237
Other (income) expense, net
1
1
5
7
1
—
(6
)
(5
)
(Gain) on sale of non-vehicle capital assets
(89
)
—
—
(89
)
—
—
—
—
Change in fair value of Public Warrants
—
—
115
115
—
—
(165
)
(165
)
Total expenses
1,654
434
413
2,501
2,393
443
(10
)
2,826
Income (loss) before income taxes
$
84
$
13
$
(413
)
(316
)
$
(465
)
$
(18
)
$
10
(473
)
Income tax (provision) benefit
22
(392
)
Net income (loss)
$
(294
)
$
(865
)
Expand
Supplemental Schedule I (continued)
HERTZ GLOBAL HOLDINGS, INC.
Unaudited
Six Months Ended June 30, 2025
Six Months Ended June 30, 2024
(In millions)
Americas RAC
International
RAC
Corporate
Hertz Global
Americas RAC
International
RAC
Corporate
Hertz Global
Revenues
$
3,228
$
770
$
—
$
3,998
$
3,667
$
766
$
—
$
4,433
Expenses:
Direct vehicle and operating
2,198
470
—
2,668
2,351
460
(5
)
2,806
Depreciation of revenue earning vehicles and lease charges, net
787
163
—
950
1,781
223
—
2,004
Depreciation and amortization of non-vehicle assets
49
7
3
59
53
7
13
73
Selling, general and administrative
246
104
115
465
261
103
41
405
Interest expense, net:
Vehicle
246
46
—
292
239
51
—
290
Non-vehicle
—
(8
)
367
359
(2
)
(10
)
175
163
Total interest expense, net
246
38
367
651
237
41
175
453
Other (income) expense, net
1
(2
)
12
11
—
1
(4
)
(3
)
(Gain) on sale of non-vehicle capital assets
(89
)
—
—
(89
)
—
—
—
—
Change in fair value of Public Warrants
—
—
124
124
—
—
(251
)
(251
)
Total expenses
3,438
780
621
4,839
4,683
835
(31
)
5,487
Income (loss) before income taxes
$
(210
)
$
(10
)
$
(621
)
(841
)
$
(1,016
)
$
(69
)
$
31
(1,054
)
Income tax (provision) benefit
104
3
Net income (loss)
$
(737
)
$
(1,051
)
Expand
Supplemental Schedule II
HERTZ GLOBAL HOLDINGS, INC.
Unaudited
Three Months Ended
June 30,
Six Months Ended
June 30,
(In millions, except per share data)
2025
2024
2025
2024
Adjusted Net Income (Loss) and Adjusted Diluted Earnings (Loss) Per Share:
Net income (loss) (a)
$
(294
)
$
(865
)
$
(737
)
$
(1,051
)
Adjustments:
Income tax provision (benefit)
(22
)
392
(104
)
(3
)
Vehicle and non-vehicle debt-related charges (b)
26
16
51
34
Restructuring and restructuring related charges (c)
4
12
7
44
Acquisition accounting-related depreciation and amortization (d)
1
1
1
1
Unrealized (gains) losses on financial instruments (e)
104
2
104
8
(Gain) on sale of non-vehicle capital assets (f)
(89
)
—
(89
)
—
Change in fair value of Public Warrants
115
(165
)
124
(251
)
Other items (g)(k)
17
20
44
28
Adjusted pre-tax income (loss) (h)
(138
)
(587
)
(599
)
(1,190
)
Income tax (provision) benefit on adjusted pre-tax income (loss) (i)
34
147
150
298
Adjusted Net Income (Loss)
$
(104
)
$
(440
)
$
(449
)
$
(892
)
Weighted-average number of diluted shares outstanding
309
306
308
306
Adjusted Diluted Earnings (Loss) Per Share (j)
$
(0.34
)
$
(1.44
)
$
(1.46
)
$
(2.92
)
Expand
Supplemental Schedule II (continued)
Three Months Ended
June 30,
Six Months Ended
June 30,
(In millions, except per share data)
2025
2024
2025
2024
Adjusted Corporate EBITDA:
Net income (loss)
$
(294
)
$
(865
)
$
(737
)
$
(1,051
)
Adjustments:
Income tax provision (benefit)
(22
)
392
(104
)
(3
)
Non-vehicle depreciation and amortization
29
41
59
73
Non-vehicle debt interest, net of interest income (k)
127
88
248
163
Vehicle debt-related charges (b)
12
10
23
22
Restructuring and restructuring related charges (c)
4
12
7
44
Unrealized (gains) losses on financial instruments (e)
104
2
104
8
(Gain) on sale of non-vehicle capital assets (f)
(89
)
—
(89
)
—
Non-cash stock-based compensation forfeitures (m)
—
—
—
(64
)
Change in fair value of Public Warrants
115
(165
)
124
(251
)
Other items (g)
15
25
41
32
Adjusted Corporate EBITDA (n)
$
1
$
(460
)
$
(324
)
$
(1,027
)
Adjusted Corporate EBITDA margin
—
%
(20
)%
(8
)%
(23
)%
Expand
(a)
Net income (loss) margin for the three and six months ended June 30, 2025 was (13)% and (18)%, respectively. Net income (loss) margin for the three and six months ended June 30, 2024 was (37)% and (24)%, respectively.
(b)
Represents debt-related charges relating to the amortization of deferred financing costs and debt discounts and premiums.
(c)
Represents charges incurred under restructuring actions as defined in U.S. GAAP. Also includes restructuring related charges such as incremental costs incurred related to personnel reductions, litigation and closure of underperforming locations.
(d)
Represents incremental expense associated with the amortization of other intangible assets and depreciation of property and equipment relating to acquisition accounting.
(e)
Represents unrealized gains (losses) on derivative financial instruments, including the Exchange Feature.
(f)
Represents gain on the sale of certain non-vehicle assets in June 2025.
(g)
Represents miscellaneous items. For the three months ended June 30, 2025, primarily includes certain litigation charges, certain IT-related charges and cloud computing costs. For the three months ended June 30, 2024, primarily includes certain IT-related charges, cloud computing costs and certain storm-related damages. For the six months ended June 30, 2025, primarily includes certain litigation charges, certain IT-related charges, cloud computing costs and certain concession-related adjustments. For the six months ended June 30, 2024, primarily includes certain IT-related charges, cloud computing costs and certain storm-related damages, partially offset by certain litigation settlements.
(h)
The table below reconciles expenses as reported in the condensed consolidated unaudited statement of operations to adjusted expenses utilized in calculating Adjusted Pretax Income (Loss) and Adjusted Net Income (Loss), all of which are deemed non-GAAP measures.
Expand
(in millions)
Three Months Ended June 30, 2025
Three Months Ended June 30, 2024
Direct vehicle and operating
$
1,394
$
(6
)
$
1,388
$
1,440
$
(10
)
$
1,430
Depreciation of revenue earning vehicles and lease charges, net
415
—
415
1,035
—
1,035
Depreciation and amortization of non-vehicle assets
29
—
29
41
—
41
Selling, general and administrative
246
(4
)
242
243
(16
)
227
Interest expense, net:
Vehicle
152
(12
)
140
149
(13
)
136
Non-vehicle
232
(124
)
108
88
(10
)
78
Total interest expense, net
384
(136
)
248
237
(23
)
214
Other (income) expense, net
7
(6
)
1
(5
)
(2
)
(7
)
(Gain) on sale of non-vehicle capital assets
(89
)
89
—
—
—
—
Change in fair value of Public Warrants
115
(115
)
—
(165
)
165
—
Total
$
2,501
$
(178
)
$
2,323
$
2,826
$
114
$
2,940
Expand
(in millions)
Six Months Ended June 30, 2025
Six Months Ended June 30, 2024
Direct vehicle and operating
$
2,668
$
(22
)
$
2,646
$
2,806
$
(16
)
$
2,790
Depreciation of revenue earning vehicles and lease charges, net
950
—
950
2,004
5
2,009
Depreciation and amortization of non-vehicle assets
59
—
59
73
—
73
Selling, general and administrative
465
(7
)
458
405
(55
)
350
Interest expense, net:
Vehicle
292
(23
)
269
290
(26
)
264
Non-vehicle
359
(148
)
211
163
(20
)
143
Total interest expense, net
651
(171
)
480
453
(46
)
407
Other (income) expense, net
11
(7
)
4
(3
)
(3
)
(6
)
(Gain) on sale of non-vehicle capital assets
(89
)
89
—
—
—
—
Change in fair value of Public Warrants
124
(124
)
—
(251
)
251
—
Total
$
4,839
$
(242
)
$
4,597
$
5,487
$
136
$
5,623
Expand
(i)
Derived utilizing a combined statutory rate of 25% for the three and six months ended June 30, 2025 and 2024, respectively, applied to the respective Adjusted Pre-tax Income (Loss).
(j)
Adjustments used to reconcile diluted earnings (loss) per share on a GAAP basis to Adjusted Diluted Earnings (Loss) Per Share are comprised of the same adjustments, inclusive of the tax impact, used to reconcile net income (loss) to Adjusted Net Income (Loss) divided by the weighted-average diluted shares outstanding during the period.
(k)
Also includes letter of credit fees.
(l)
Excludes gains (losses) related to the fair value of the Exchange Feature.
(m)
Represents former CEO awards forfeited in March 2024.
(n)
The table below reconciles expenses as reported in the condensed consolidated unaudited statement of operations to adjusted expenses utilized in calculating Adjusted Corporate EBITDA, both of which are deemed non-GAAP measures.
Expand
(in millions)
Three Months Ended June 30, 2025
Three Months Ended June 30, 2024
Direct vehicle and operating
$
1,394
$
(6
)
$
1,388
$
1,440
$
(10
)
$
1,430
Depreciation of revenue earning vehicles and lease charges, net
415
—
415
1,035
—
1,035
Depreciation and amortization of non-vehicle assets
29
(29
)
—
41
(41
)
—
Selling, general and administrative
246
(4
)
242
243
(17
)
226
Interest expense, net:
Vehicle
152
(12
)
140
149
(13
)
136
Non-vehicle
232
(232
)
—
88
(88
)
—
Total interest expense, net
384
(244
)
140
237
(101
)
136
Other (income) expense, net
7
(8
)
(1
)
(5
)
(9
)
(14
)
(Gain) on sale of non-vehicle capital assets
(89
)
89
—
—
—
—
Change in fair value of Public Warrants
115
(115
)
—
(165
)
165
—
Total expenses
$
2,501
$
(317
)
$
2,184
$
2,826
$
(13
)
$
2,813
Expand
(in millions)
Six Months Ended June 30, 2025
Six Months Ended June 30, 2024
Expenses:
As Reported
Adjustment
As Adjusted
As Reported
Adjustment
As Adjusted
Direct vehicle and operating
$
2,668
$
(22
)
$
2,646
$
2,806
$
(16
)
$
2,790
Depreciation of revenue earning vehicles and lease charges, net
950
—
950
2,004
5
2,009
Depreciation and amortization of non-vehicle assets
59
(59
)
—
73
(73
)
—
Selling, general and administrative
465
(7
)
458
405
8
413
Interest expense, net:
Vehicle
292
(23
)
269
290
(26
)
264
Non-vehicle
359
(359
)
—
163
(163
)
—
Total interest expense, net
651
(382
)
269
453
(189
)
264
Other (income) expense, net
11
(12
)
(1
)
(3
)
(13
)
(16
)
(Gain) on sale of non-vehicle capital assets
(89
)
89
—
—
—
—
Change in fair value of Public Warrants
124
(124
)
—
(251
)
251
—
Total
$
4,839
$
(517
)
$
4,322
$
5,487
$
(27
)
$
5,460
Expand
Supplemental Schedule III
Three Months Ended
June 30,
Six Months Ended
June 30,
(In millions)
2025
2024
2025
2024
ADJUSTED OPERATING CASH FLOW AND ADJUSTED FREE CASH FLOW:
Net cash provided by (used in) operating activities
$
346
$
546
$
597
$
916
Depreciation and reserves for revenue earning vehicles, net
(458
)
(1,124
)
(1,082
)
(2,194
)
Bankruptcy related payments (post emergence) and other payments
12
2
12
5
Adjusted operating cash flow
(100
)
(576
)
(473
)
(1,273
)
Non-vehicle capital asset proceeds (expenditures), net
77
(22
)
82
(52
)
Adjusted operating cash flow before vehicle investment
(23
)
(598
)
(391
)
(1,325
)
Net fleet growth after financing
350
45
140
43
Adjusted free cash flow
$
327
$
(553
)
$
(251
)
$
(1,282
)
CALCULATION OF NET FLEET GROWTH AFTER FINANCING:
Revenue earning vehicles expenditures
$
(3,049
)
$
(3,723
)
$
(5,896
)
$
(5,627
)
Proceeds from disposal of revenue earning vehicles
2,126
1,669
4,250
2,902
Revenue earning vehicles capital expenditures, net
(923
)
(2,054
)
(1,646
)
(2,725
)
Depreciation and reserves for revenue earning vehicles, net
458
1,124
1,082
2,194
Financing activity related to vehicles:
Borrowings
2,648
1,149
3,774
1,683
Payments
(1,606
)
(229
)
(2,990
)
(1,121
)
Restricted cash changes, vehicle
(227
)
55
(80
)
12
Net financing activity related to vehicles
815
975
704
574
Net fleet growth after financing
$
350
$
45
$
140
$
43
Expand
Supplemental Schedule IV
HERTZ GLOBAL HOLDINGS, INC.
NET DEBT CALCULATION
Unaudited
As of June 30, 2025
As of December 31, 2024
(In millions)
Vehicle
Non-Vehicle
Total
Vehicle
Non-Vehicle
Total
First Lien RCF
$
—
$
375
$
375
$
—
$
175
$
175
Term loans
—
1,986
1,986
—
1,995
1,995
First lien senior notes
—
1,250
1,250
—
1,250
1,250
Exchangeable notes
—
261
261
—
250
250
Senior unsecured notes
—
1,500
1,500
—
1,500
1,500
U.S. vehicle financing (HVF III)
10,089
—
10,089
9,431
—
9,431
International vehicle financing (Various)
2,022
—
2,022
1,752
—
1,752
Other debt
145
6
151
97
—
97
Fair Value of the Exchange Features
—
175
175
—
61
61
Debt issue costs, discounts and premiums
(54
)
(119
)
(173
)
(49
)
(127
)
(176
)
Debt as reported in the balance sheet
12,202
5,434
17,636
11,231
5,104
16,335
Add:
Debt issue costs, discounts and premiums
54
119
173
49
127
176
Less:
Cash and cash equivalents
—
503
503
—
592
592
Restricted cash
341
—
341
258
—
258
Restricted cash and restricted cash equivalents associated with Term C Loan
—
245
245
—
245
245
Net Debt
$
11,915
$
4,805
$
16,720
$
11,022
$
4,394
$
15,416
LTM Adjusted Corporate EBITDA (a)
(838
)
(1,541
)
Net Corporate Leverage
(5.7)x
(2.9)x
Expand
(a)
Reconciliation of LTM Adjusted Corporate EBITDA for the six months ended June 30, 2025 and twelve months ended December 31, 2024 are as follows:
Expand
(In millions)
Six Months Ended
June 30, 2025
Twelve Months Ended
December 31, 2024
Net income (loss) three months ended:
September 30, 2024
$
(1,332
)
n/a
December 31, 2024
(479
)
n/a
March 31, 2025
(443
)
n/a
June 30, 2025
(294
)
n/a
LTM net income (loss)
(2,548
)
$
(2,862
)
Adjustments:
Income tax provision (benefit)
(476
)
(375
)
Non-vehicle depreciation and amortization
125
139
Non-vehicle debt interest, net of interest income
460
375
Vehicle debt-related charges
46
45
Restructuring and restructuring related charge
29
66
Unrealized (gains) losses on financial instruments
103
7
(Gain) on sale of non-vehicle capital assets
(89
)
—
Non-cash stock-based compensation forfeitures
—
(64
)
Bankruptcy-related litigation reserve
292
292
Long-Lived Assets impairment
1,048
1,048
Change in fair value of Public Warrants
100
(275
)
Other items
72
63
LTM Adjusted Corporate EBITDA
$
(838
)
$
(1,541
)
Expand
Supplemental Schedule V
HERTZ GLOBAL HOLDINGS, INC.
KEY METRICS CALCULATIONS
REVENUE, UTILIZATION AND DEPRECIATION
Unaudited
Global RAC
Three Months Ended
June 30,
Percent
Inc/(Dec)
Six Months Ended
June 30,
Percent
Inc/(Dec)
($ in millions, except where noted)
2025
2024
2025
2024
Total RPD
Revenues
$
2,185
$
2,353
$
3,998
$
4,433
Foreign currency adjustment (a)
(32
)
(17
)
(35
)
(36
)
Total Revenues - adjusted for foreign currency
$
2,153
$
2,336
$
3,963
$
4,397
Transaction Days (in thousands)
38,695
39,721
72,597
76,575
Total RPD (in dollars)
$
55.65
$
58.80
(5
)%
$
54.59
$
57.42
(5
)%
Total Revenue Per Unit Per Month
Total Revenues - adjusted for foreign currency
$
2,153
$
2,336
$
3,963
$
4,397
Average Rentable Vehicles (in whole units)
512,854
546,187
495,064
537,710
Total revenue per unit (in whole dollars)
$
4,199
$
4,276
$
8,005
$
8,178
Number of months in period (in whole units)
3
3
6
6
Total RPU Per Month (in whole dollars)
$
1,400
$
1,425
(2
)%
$
1,334
$
1,363
(2
)%
Vehicle Utilization
Transaction Days (in thousands)
38,695
39,721
72,597
76,575
Average Rentable Vehicles (in whole units)
512,854
546,187
495,064
537,710
Number of days in period (in whole units)
91
91
181
182
Available Car Days (in thousands)
46,670
49,701
89,607
97,882
Vehicle Utilization (b)
83
%
80
%
81
%
78
%
Depreciation Per Unit Per Month
Depreciation of revenue earning vehicles and lease charges, net
$
415
$
1,035
$
950
$
2,004
Foreign currency adjustment (a)
(7
)
(5
)
(8
)
(9
)
Adjusted depreciation of revenue earning vehicles and lease charges
$
408
$
1,030
$
942
$
1,995
Average Vehicles (in whole units)
542,532
577,224
523,628
562,358
Adjusted depreciation of revenue earning vehicles and lease charges divided by Average Vehicles (in whole dollars)
$
752
$
1,784
$
1,800
$
3,548
Number of months in period (in whole units)
3
3
6
6
Depreciation Per Unit Per Month (in whole dollars)
$
251
$
595
(58
)%
$
300
$
591
(49
)%
Expand
Note: Global RAC represents Americas RAC and International RAC segment information on a combined basis and excludes Corporate
(a)
Based on December 31, 2024 foreign exchange rates.
(b)
Calculated as Transaction Days divided by Available Car Days.
Expand
Supplemental Schedule V (continued)
HERTZ GLOBAL HOLDINGS, INC.
KEY METRICS CALCULATIONS
REVENUE, UTILIZATION AND DEPRECIATION
Unaudited
Americas RAC
($ in millions, except where noted)
2025
2024
2025
2024
Total RPD
Revenues
$
1,738
$
1,928
$
3,228
$
3,667
Foreign currency adjustment (a)
(3
)
(4
)
(3
)
(7
)
Total Revenues - adjusted for foreign currency
$
1,735
$
1,924
$
3,225
$
3,660
Transaction Days (in thousands)
30,935
32,216
58,693
62,776
Total RPD (in dollars)
$
56.08
$
59.73
(6
)%
$
54.94
$
58.30
(6
)%
Total Revenue Per Unit Per Month
Total Revenues - adjusted for foreign currency
$
1,735
$
1,924
$
3,225
$
3,660
Average Rentable Vehicles (in whole units)
407,336
439,284
397,047
436,553
Total revenue per unit (in whole dollars)
$
4,259
$
4,381
$
8,122
$
8,383
Number of months in period (in whole units)
3
3
6
6
Total RPU Per Month (in whole dollars)
$
1,420
$
1,460
(3
)%
$
1,354
$
1,397
(3
)%
Vehicle Utilization
Transaction Days (in thousands)
30,935
32,216
58,693
62,776
Average Rentable Vehicles (in whole units)
407,336
439,284
397,047
436,553
Number of days in period (in whole units)
91
91
181
182
Available Car Days (in thousands)
37,068
39,974
71,865
79,470
Vehicle Utilization (b)
83
%
81
%
82
%
79
%
Depreciation Per Unit Per Month
Depreciation of revenue earning vehicles and lease charges, net
$
325
$
905
$
787
$
1,781
Foreign currency adjustment (a)
(1
)
(1
)
(1
)
(1
)
Adjusted depreciation of revenue earning vehicles and lease charges
$
324
$
904
$
786
$
1,780
Average Vehicles (in whole units)
435,737
467,863
424,559
459,224
Adjusted depreciation of revenue earning vehicles and lease charges divided by Average Vehicles (in whole dollars)
$
744
$
1,932
$
1,852
$
3,875
Number of months in period (in whole units)
3
3
6
6
Depreciation Per Unit Per Month (in whole dollars)
$
248
$
644
(61
)%
$
309
$
646
(52
)%
Expand
(a)
Based on December 31, 2024 foreign exchange rates.
(b)
Calculated as Transaction Days divided by Available Car Days.
Expand
Supplemental Schedule V (continued)
HERTZ GLOBAL HOLDINGS, INC.
KEY METRICS CALCULATIONS
REVENUE, UTILIZATION AND DEPRECIATION
Unaudited
International RAC
Three Months Ended
June 30,
Percent
Inc/(Dec)
Six Months Ended
June 30,
Percent
Inc/(Dec)
($ in millions, except where noted)
2025
2024
2025
2024
Total RPD
Revenues
$
447
$
425
$
770
$
766
Foreign currency adjustment (a)
(28
)
(14
)
(32
)
(28
)
Total Revenues - adjusted for foreign currency
$
419
$
411
$
738
$
738
Transaction Days (in thousands)
7,760
7,505
13,904
13,799
Total RPD (in dollars)
$
53.93
$
54.78
(2
)%
$
53.11
$
53.46
(1
)%
Total Revenue Per Unit Per Month
Total Revenues - adjusted for foreign currency
$
419
$
411
$
738
$
738
Average Rentable Vehicles (in whole units)
105,518
106,903
98,017
101,156
Total revenue per unit (in whole dollars)
$
3,967
$
3,846
$
7,534
$
7,293
Number of months in period (in whole units)
3
3
6
6
Total RPU Per Month (in whole dollars)
$
1,322
$
1,282
3
%
$
1,256
$
1,216
3
%
Vehicle Utilization
Transaction Days (in thousands)
7,760
7,505
13,904
13,799
Average Rentable Vehicles (in whole units)
105,518
106,903
98,017
101,156
Number of days in period (in whole units)
91
91
181
182
Available Car Days (in thousands)
9,601
9,727
17,752
18,413
Vehicle Utilization (b)
81
%
77
%
78
%
75
%
Depreciation Per Unit Per Month
Depreciation of revenue earning vehicles and lease charges, net
$
90
$
130
$
163
$
223
Foreign currency adjustment (a)
(6
)
(4
)
(7
)
(7
)
Adjusted depreciation of revenue earning vehicles and lease charges
$
84
$
126
$
156
$
216
Average Vehicles (in whole units)
106,795
109,361
99,069
103,134
Adjusted depreciation of revenue earning vehicles and lease charges divided by Average Vehicles (in whole dollars)
$
782
$
1,153
$
1,575
$
2,090
Number of months in period (in whole units)
3
3
6
6
Depreciation Per Unit Per Month (in whole dollars)
$
261
$
384
(32
)%
$
262
$
348
(25
)%
Expand
(a)
Based on December 31, 2024 foreign exchange rates.
(b)
Calculated as Transaction Days divided by Available Car Days.
Expand
NON-GAAP MEASURES AND KEY METRICS
The term 'GAAP' refers to accounting principles generally accepted in the United States. Adjusted EBITDA is the Company's segment measure of profitability and complies with GAAP when used in that context.
NON-GAAP MEASURES
Non-GAAP measures are not recognized measurements under GAAP. When evaluating the Company's operating performance or liquidity, investors should not consider non-GAAP measures in isolation of, superior to, or as a substitute for measures of the Company's financial performance as determined in accordance with GAAP.
Adjusted Net Income (Loss) and Adjusted Diluted Earnings (Loss) Per Share ("Adjusted EPS")
Adjusted Net Income (Loss) represents income or loss attributable to the Company as adjusted to eliminate the impact of GAAP income tax; vehicle and non-vehicle debt-related charges; restructuring and restructuring related charges; acquisition accounting-related depreciation and amortization; unrealized (gains) losses on financial instruments; change in fair value of Public Warrants and certain other miscellaneous or non-recurring items on a pre-tax basis. Adjusted Net Income (Loss) includes a provision (benefit) for income taxes derived utilizing a combined statutory rate. The combined statutory rate is management's estimate of the Company's long-term tax rate. Its most comparable GAAP measure is net income (loss) attributable to the Company.
Adjusted EPS represents Adjusted Net Income (Loss) on a per diluted share basis using the weighted-average number of diluted shares outstanding for the period. Its most comparable GAAP measure is diluted earnings (loss) per share.
Adjusted Net Income (Loss) and Adjusted EPS are important operating metrics because they allow management and investors to assess operational performance of the Company's business, exclusive of the items mentioned above that are not operational in nature or comparable to those of the Company's competitors.
Adjusted Corporate EBITDA and Adjusted Corporate EBITDA Margin
Adjusted Corporate EBITDA represents income or loss attributable to the Company as adjusted to eliminate the impact of GAAP income tax; non-vehicle depreciation and amortization; non-vehicle debt interest, net; vehicle debt-related charges; restructuring and restructuring related charges; unrealized (gains) losses on financial instruments; change in fair value of Public Warrants and certain other miscellaneous or non-recurring items.
Adjusted Corporate EBITDA Margin is calculated as the ratio of Adjusted Corporate EBITDA to total revenues.
Management uses these measures as operating performance metrics for internal monitoring and planning purposes, including the preparation of the Company's annual operating budget and monthly operating reviews, and analysis of investment decisions, profitability and performance trends. These measures enable management and investors to isolate the effects on profitability of operating metrics most meaningful to the business of renting and leasing vehicles. They also allow management and investors to assess the performance of the entire business on the same basis as its reportable segments. Adjusted Corporate EBITDA is also utilized in the determination of certain executive compensation. Its most comparable GAAP measure is net income (loss) attributable to the Company.
Adjusted operating cash flow and adjusted free cash flow
Adjusted operating cash flow represents net cash provided by operating activities net of the non-cash add back for vehicle depreciation and reserves, and exclusive of bankruptcy related payments made post emergence. Adjusted operating cash flow is an important performance measure to management and investors as it provides useful information about the amount of cash generated from operations when fully burdened by fleet costs.
Adjusted free cash flow represents adjusted operating cash flow plus the impact of net non-vehicle capital expenditures and net fleet growth after financing. Adjusted free cash flow is an important performance measure to management and investors as it provides useful information about the amount of cash available for, but not limited to, the reduction of non-vehicle debt, share repurchase and acquisition.
The most comparable GAAP measure for adjusted operating cash flow and adjusted free cash flow is net cash provided by (used in) operating activities.
Net Fleet Growth After Financing
U.S. and International Rental Car segments Fleet Growth is defined as revenue earning vehicles expenditures, net of proceeds from disposals, plus vehicle depreciation and net vehicle financing, which includes borrowings, repayments and the change in restricted cash associated with vehicles. Fleet Growth is important as it allows the Company to assess the cash flow required to support its investment in revenue earning vehicles.
Net Non-vehicle Debt
Net Non-vehicle Debt is calculated as non-vehicle debt as reported on the Company's balance sheet, excluding the impact of unamortized debt issuance costs associated with non-vehicle debt, less cash and cash equivalents. Non-vehicle debt consists of the Company's Senior Term Loans, Senior RCF, First Lien Senior Notes, Second Lien Exchangeable Notes, Senior Unsecured Notes, Promissory Notes and certain other non-vehicle indebtedness of its domestic and foreign subsidiaries. Net Non-vehicle Debt is important to management and investors as it helps measure the Company's corporate leverage. Net Non-vehicle Debt also assists in the evaluation of the Company's ability to service its non-vehicle debt without reference to the expense associated with the vehicle debt, which is collateralized by assets not available to lenders under the non-vehicle debt facilities.
Net Vehicle Debt
Net Vehicle Debt is calculated as vehicle debt as reported on the Company's balance sheet, excluding the impact of unamortized debt issue costs associated with vehicle debt, less restricted cash associated with vehicles. Restricted cash associated with vehicle debt is restricted for the purchase of revenue earning vehicles and other specified uses under the Company's vehicle debt facilities. Net Vehicle Debt is important to management, investors and ratings agencies as it helps measure the Company's leverage with respect to its vehicle assets.
Total Net Debt
Total Net Debt is calculated as total debt, excluding the impact of unamortized debt issuance costs, less total cash and cash equivalents and restricted cash associated with vehicle debt. Unamortized debt issuance costs are required to be reported as a deduction from the carrying amount of the related debt obligation under GAAP. Management believes that eliminating the effects that these costs have on debt will more accurately reflect the Company's net debt position. Total Net Debt is important to management, investors and ratings agencies as it helps measure the Company's gross leverage.
Net Corporate Leverage
Net Corporate Leverage is calculated as non-vehicle net debt divided by Adjusted Corporate EBITDA for the last twelve months. Net Corporate Leverage is important to management and investors as it measures the Company's corporate leverage net of unrestricted cash. Net Corporate Leverage also assists in the evaluation of the Company's ability to service its non-vehicle debt with reference to the generation of Adjusted Corporate EBITDA.
KEY METRICS
Available Car Days
Available Car Days represents Average Rentable Vehicles multiplied by the number of days in a given period.
Average Vehicles ("Fleet Capacity" or "Capacity")
Average Vehicles is determined using a simple average of the number of vehicles in the fleet whether owned or leased by the Company at the beginning and end of a given period.
Average Rentable Vehicles
Average Rentable Vehicles reflects Average Vehicles excluding vehicles for sale on the Company's retail lots or actively in the process of being sold through other disposition channels.
Depreciation Per Unit Per Month ("Depreciation Per Unit" or "DPU")
Depreciation Per Unit Per Month represents the amount of average depreciation expense and lease charges per vehicle per month, exclusive of the impacts of foreign currency exchange rates so as not to affect the comparability of underlying trends. This metric is important to management and investors as it reflects how effectively the Company is managing the costs of its vehicles and facilitates comparisons with other participants in the vehicle rental industry.
Total Revenue Per Transaction Day ("Total RPD" or "RPD"; also referred to as "pricing")
Total RPD represents revenue generated per transaction day, excluding the impact of foreign currency exchange rates so as not to affect the comparability of underlying trends. This metric is important to management and investors as it represents a measure of changes in the underlying pricing in the vehicle rental business and encompasses the elements in vehicle rental pricing that management has the ability to control.
Total Revenue Per Unit Per Month ("Total RPU", "RPU" or "Total RPU Per Month")
Total RPU Per Month represents the amount of revenue generated per vehicle in the rental fleet each month, excluding the impact of foreign currency exchange rates so as not to affect the comparability of underlying trends. This metric is important to management and investors as it provides a measure of revenue productivity relative to the number of vehicles in our rental fleet whether owned or leased, or asset efficiency.
Transaction Days ("Days"; also referred to as "volume")
Transaction Days represents the total number of 24-hour periods, with any partial period counted as one Transaction Day, that vehicles were on rent (the period between when a rental contract is opened and closed) in a given period. Thus, it is possible for a vehicle to attain more than one Transaction Day in a 24-hour period. This metric is important to management and investors as it represents the number of revenue-generating days.
Vehicle Utilization ("Utilization")
Vehicle Utilization represents the ratio of Transaction Days to Available Car Days. This metric is important to management and investors as it is the measurement of the proportion of vehicles that are being used to generate revenues relative to rentable fleet capacity.