TLDR
- Avis posted a Q1 loss of $8.01 per share, worse than the $7.29 analysts expected
- Revenue came in at $2.53 billion, up 4.3% year over year and ahead of estimates
- The stock fell around 15-17% in premarket trading Wednesday
- CAR has dropped over 70% from its short squeeze high of $713.97 hit on April 21
- Adjusted free cash flow improved by more than $570 million compared to Q1 last year
Avis Budget Group reported a first-quarter loss that came in worse than Wall Street expected, sending the stock lower in premarket trading on Wednesday and extending what has been a brutal stretch for investors.
AVIS-BUDGET $CAR EARNINGS ARE OUT!
đ´ EPS: -$8.01 | Est. -$7.50
đ˘ REV: $2.53B | Est. $2.44B
IMPLIED MOVE TODAY: Âą15.73%!! pic.twitter.com/k7ct6qXLsK— Schaeffer's Investment Research (@schaeffers) April 29, 2026
The company posted a GAAP loss of $8.01 per share for Q1, missing the consensus estimate of $7.29 by $0.51. That said, it was still an improvement on the $14.35 per share loss from Q1 a year ago.
Revenue for the quarter was $2.53 billion, up 4.3% year over year and ahead of the $2.4 billion analysts had penciled in.
CAR fell roughly 15-17% in premarket trading to around $151-$155, putting it on track for a sixth straight session of losses.
The earnings miss adds pressure, but the bigger story here is the stock’s dramatic fall from its short squeeze highs.
CAR skyrocketed starting in late March, driven by aggressive call buying from momentum funds and options speculators against a heavily shorted stock. It hit a record closing high of $713.97 on April 21.
Since then, the stock has lost more than 70% of its value as that technical mismatch between supply and demand unwound.
Operating Metrics Show Some Improvement
Beneath the headline loss, there were some green shoots in the operating data.
Revenue per day, excluding exchange rate effects, rose 3% in both the Americas and International segments. Vehicle utilization exceeded 70% in both segments as well.
Adjusted EBITDA came in at -$113 million, compared to -$93 million in Q1 last year, so losses on that measure widened slightly.
Adjusted free cash flow was $80 million, an improvement of more than $570 million from Q1 2025. The company’s liquidity stood at $915 million at quarter end, with an additional $2.9 billion in fleet funding capacity.
What Management Said
CEO Brian Choi pointed to the quarter as evidence of a turning point in operations.
“We executed on the changes we outlined last quarter, and the first quarter reflects a meaningful inflection in our operating performance,” Choi said.
“With tighter fleet discipline, improving pricing, and stronger utilization, we are building a more resilient business with clear momentum heading into the rest of the year,” he added.
The company highlighted tighter fleet management and better pricing as key levers it has been pulling.
Car rental peer Hertz Global (HTZ) was also lower in early trading, down about 1.1% in the premarket session.
At the time of the premarket move, CAR was trading near $151, more than 70% below its April 21 peak.
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