TLDR
- Hertz posted a Q2 adjusted loss of $0.11 per share, beating estimates of a $0.23 loss
- Revenue came in at $2.40 billion, up 9.7% year over year and above the $2.28 billion consensus
- Revenue per day rose 9% and revenue per unit rose 8%, with a 1% smaller fleet
- Q3 guidance calls for adjusted corporate EBITDA of $275 million to $325 million and positive EPS
- HTZ stock has gained over 20% following the earnings release but remains down 57.6% year to date
Hertz (HTZ) stock is up more than 20% following its second-quarter 2026 earnings release on August 6, with the stock trading around $2.22 per share.
Hertz Global Holdings, Inc., HTZ
The company reported an adjusted loss of $0.11 per share, well ahead of the $0.23 loss analysts had penciled in. That was a 52.2% positive surprise and an improvement from the $0.29 adjusted loss in the same quarter last year.
Revenue came in at $2.40 billion, beating the consensus estimate of $2.28 billion by 4.9%. That marked a 9.7% increase year over year.
The revenue growth was driven by pricing. Revenue per day rose 9% and revenue per unit climbed 8%, even as Hertz operated with a fleet that was 1% smaller than the prior year.
Adjusted corporate EBITDA came in at $81 million, up $63 million from a year ago. EBITDA margin improved to 3.4% from just 0.8% in Q2 2025. Results included an estimated $30 million EBITDA headwind from elevated vehicle recalls.
Q3 and Full-Year Outlook
For Q3 2026, Hertz is guiding for adjusted corporate EBITDA of $275 million to $325 million and positive earnings per share. Transaction days are expected to grow approximately 1% year over year.
The full-year 2026 outlook calls for adjusted corporate EBITDA of $225 million to $275 million, with net depreciation per unit of around $300 per month and transaction day growth of roughly 2%.
Hertz expects to end 2026 with liquidity of between $1.0 billion and $1.4 billion, and it expects positive free cash flow in the second half of the year.
The company exited Q2 with total cash, cash equivalents and restricted cash of $1.30 billion, up from $1.17 billion at the end of 2025. It generated $381 million in net cash from operations and $162 million in adjusted free cash flow during the quarter. Quarter-end liquidity stood at $984 million.
A Stock Still Deep in the Red
Despite the pop, context matters here. HTZ is still down 57.6% since the start of 2026 and trades 71.6% below its 52-week high of $7.81 reached in April 2026.
Direct vehicle and operating expenses rose 4.3% year over year to $1.45 billion. Net depreciation of revenue-earning vehicles jumped 17.3% to $487 million. SG&A expenses increased 4.9% to $258 million, though as a percentage of revenue, SG&A improved slightly to 10.8% from 11.3%.
HTZ currently carries a Zacks Rank of 4 (Sell).
The stock had surged nearly 30% in the session before the post-earnings move, suggesting markets were already pricing in some optimism going into the report.
Net depreciation per unit for Q3 is expected to range from $285 to $295 per month.
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