Hertz Q2 2026 Earnings: Pricing Drives 10% Revenue Growth

Hertz Global Holdings (NASDAQ: HTZ) reported Q2 2026 revenue of $2.396 billion, up 10% year over year, while diluted GAAP EPS improved to $0.05 from a loss of $0.95. GAAP net income reached $64 million and adjusted Corporate EBITDA rose by $63 million to $81 million, even as elevated vehicle recalls reduced adjusted EBITDA by approximately $30 million.

Core Earnings Data

For the quarter ended June 30, 2026, revenue growth was driven primarily by pricing rather than higher rental volume. Transaction days were essentially flat and the average fleet was 1% smaller, but revenue per day, or RPD, increased 9% and monthly revenue per unit, or RPU, rose 8%.

Profitability improved substantially from the prior-year quarter. However, adjusted net income remained negative, indicating that the EBITDA recovery had not yet translated into positive adjusted bottom-line earnings.

Adjusted net income and adjusted Corporate EBITDA are non-GAAP measures. Hertz revised their definitions in Q1 2026 to exclude additional items, including realized gains or losses from financial instruments, share-based compensation and foreign-currency gains or losses; the prior-year results were recast on the same basis.

Business and Segment Performance

Both rental segments increased revenue and adjusted EBITDA, although pricing growth was considerably stronger in the Americas. The International segment continued to produce the higher EBITDA margin.

Transaction days were essentially flat in both segments. Americas RPD increased 10% while its average fleet declined 2%, compared with a 3% RPD increase and 1% fleet growth internationally. Management attributed the overall pricing performance to its commercial approach, airport supply discipline, a more balanced industry supply-demand environment and a small incremental benefit from the World Cup.

Cost trends also differed by region. Americas adjusted direct operating expense per day increased 5%, while the International measure declined 1%. Depreciation per unit rose 22% in the Americas but only 2% internationally. RPD, RPU and depreciation-per-unit metrics are presented using December 31, 2025 foreign-exchange rates.

Pricing Outpaced Daily Costs, but Recalls and Depreciation Remained Headwinds

Adjusted direct operating expense per transaction day increased 4% to $37.49, slightly above Hertz’s expectations. The company attributed the increase mainly to revenue-related variable costs and expenses connected with sale-leaseback transactions. After normalizing for those factors and the effect of recalls on transaction days, Hertz said the measure improved approximately 2%.

RPD increased faster than daily operating costs, and the spread between RPD and direct operating expense per day improved 17% year over year. This was the third consecutive quarter in which the spread improved, supporting the recovery in adjusted Corporate EBITDA.

Vehicle recalls remained a significant constraint. Recall activity was approximately 300% higher than a year earlier and affected an average of nearly 15,000 vehicles. Hertz estimated that recalls reduced Q2 GAAP net income by $27 million and adjusted Corporate EBITDA by approximately $30 million. Total utilization still increased 80 basis points to 79%; excluding elevated recalls, it would have been 81%, up 190 basis points.

Net depreciation per unit per month was $302, up 18% from $256. Hertz nevertheless described forward residual-value trends as stable. Approximately 94% of its U.S. core fleet now consists of model-year 2025 and 2026 vehicles, giving the company its youngest fleet in 12 years.

Liquidity and Capital Structure

Hertz ended Q2 with approximately $984 million of liquidity, including cash, cash equivalents and available revolving-credit capacity. That was consistent with its previous expectation of just under $1 billion.

In June, Hertz issued $350 million of exchangeable first-lien notes due in 2030, using capacity created by expiring revolving commitments and term-loan amortization. A further $30 million was issued in July through the exercise of the offering’s overallotment option, taking pro forma liquidity to slightly more than $1 billion.

Oro Mobility Expands to Four Markets

Hertz’s operating affiliate Oro Mobility is now active in four markets through its driver-managed fleet business, and Oro drivers have completed more than six million miles. The operation provides fleet services to drivers supporting rideshare platforms while also developing capabilities for autonomous fleets.

Oro’s first autonomous-vehicle partnership is expected to begin operations later in 2026 in the San Francisco Bay Area. The program involves Uber’s robotaxi service, Lucid vehicles and Nuro autonomous-driving technology.

Earnings Guidance

Management expects full-year RPU to exceed its $1,500 North Star target following the Q2 result of $1,542. Hertz also continues to target full-year net depreciation per unit per month of $300 or less, slightly below the Q2 level.

Meeting both objectives would require Hertz to preserve its pricing performance while bringing depreciation slightly below the Q2 rate.

Recent Insider Transactions

The supplied six-month insider data recorded 17 acquisitions totaling 2,511,181 shares and one sale of 40,919 shares, resulting in net acquisitions of 2,470,262 shares. Most of the acquisitions were equity awards rather than open-market purchases, so they should not be interpreted as equivalent to discretionary insider buying.

All of the following transactions were reported as direct holdings.

Risks Investors Need to Watch

• Vehicle recalls: Recall activity affected nearly 15,000 vehicles and reduced adjusted EBITDA by about $30 million. Continued elevated recalls could limit utilization and rental days while adding operating costs.
• Depreciation and residual values: Net depreciation per unit increased 18% and remained slightly above the full-year target. Lower used-vehicle residual values or less effective fleet disposal could increase this expense further.
• Dependence on pricing: Transaction days were flat, meaning the quarter’s revenue growth depended heavily on higher RPD. A weaker travel market or less favorable industry supply-demand balance could pressure pricing.
• Daily operating costs: Adjusted direct operating expense per day rose 4% because of variable and sale-leaseback costs. EBITDA improvement depends partly on keeping RPD growth ahead of these expenses.

Summary

Hertz’s Q2 2026 results showed a meaningful operating recovery led by pricing, with higher revenue, positive GAAP net income and a $63 million improvement in adjusted Corporate EBITDA despite a smaller fleet. The main follow-up points are whether Hertz can sustain RPU above $1,500, reduce depreciation to $300 per unit or less, preserve the improved spread between pricing and daily costs, and contain the operational impact of vehicle recalls.