Hertz Q3 2026 Revenue, Adjusted EBITDA Rise as Free Cash Flow Turns Negative

Hertz Global Holdings Inc. (NASDAQ: HTZ) reported higher third-quarter revenue and adjusted earnings as stronger U.S. pricing lifted revenue per day, while adjusted free cash flow turned negative amid fleet-related cash movements.

Revenue rose 6% year over year to $2.62 billion in the quarter ended September 30, 2026, the company’s best quarterly revenue result in three years. Adjusted Corporate EBITDA increased 15% to $233 million, also the strongest quarterly result in three years, and the adjusted EBITDA margin expanded to 9% from 8%.

GAAP net income, however, declined to $116 million from $184 million. The reconciliation to adjusted EBITDA included $158 million of non-vehicle net interest expense, $21 million of restructuring and related charges, and a $76 million gain on financial instruments. The prior-year quarter included a $154 million litigation settlement benefit. Hertz revised its definition of Adjusted Corporate EBITDA in the first quarter of 2026, and the prior-year figure was recast for comparability.

Pricing Drives Revenue Growth

Total revenue per transaction day, a constant-currency measure of pricing, increased 5% to $64.06, with U.S. revenue per day up 8%. Revenue per unit per month rose 5% to $1,639, its highest quarterly level in four years, reflecting stronger revenue productivity across the rental fleet.

Demand was broadly stable. Transaction days were 41.0 million, compared with 40.9 million a year earlier, while the average fleet increased 1% to about 550,000 vehicles. Total vehicle utilization remained at 81%, though operational utilization declined to 83% from 84%. Hertz said utilization remained strong despite elevated vehicle recalls.

Fleet depreciation per unit per month increased 2% to $285 from $279, which the company characterized as stable fleet economics. Average rentable vehicles rose to 533,757 from 528,641.

Operating costs increased alongside revenue. Adjusted direct operating expense per transaction day rose 5% to $37.72. Hertz attributed roughly half of the increase to costs associated with improved revenue per day, with most of the remainder tied to elevated collision and maintenance expenses.

Free Cash Flow Turns Negative

Adjusted free cash flow was negative $38 million, compared with positive $248 million in the third quarter of 2025. Adjusted operating cash flow declined to $87 million from $178 million, while net fleet growth after financing used $101 million of cash versus a $45 million contribution a year earlier. Hertz said the year-over-year free-cash-flow comparison also reflected fleet-related cash flow and sale-leaseback proceeds in the prior-year period.

Net cash provided by operating activities, the closest GAAP measure, was $599 million, down from $835 million. Revenue-earning vehicle expenditures totaled $1.63 billion, while proceeds from vehicle disposals were $1.70 billion.

Liquidity and Debt

Hertz ended the quarter with $946 million of liquidity, consisting of $531 million in unrestricted cash and $415 million available under its first-lien revolving credit facility. The company also reported a $900 million excess fair-market-value cushion in its global asset-backed securities facilities.

Total non-vehicle debt was $5.95 billion as of September 30. The disclosed maturity schedule includes $203 million due in 2026, $18 million in 2027, $2.45 billion in 2028, $2.54 billion in 2029 and $805 million in 2030, subject to the exclusions detailed in the presentation.

The presentation did not provide a new financial forecast. Hertz cautioned that forward-looking statements are subject to uncertainty and that actual results could differ materially. Near-term operating constraints identified in the quarter included elevated recalls, collision and maintenance expenses, while the company’s debt profile and negative adjusted free cash flow remain important financial considerations.