Hertz Global Holdings Reports Strong Q1 2026 Revenue Growth as Transformation Strategy Gains Momentum
Hertz Global Holdings has reported its financial results for the first quarter of 2026, highlighting the company’s strongest year-over-year revenue growth in three years as its operational turnaround and “Back-to-Basics” strategy continued to gain traction. The company posted first-quarter revenue of $2.0 billion, representing an 11% increase compared with the same period last year. The growth was largely attributed to improved commercial execution, disciplined fleet management, and stronger pricing trends across the rental business.
The first-quarter performance reflects the company’s ongoing effort to stabilize operations while laying the groundwork for long-term growth. Hertz has spent the past several quarters refining its strategy around fleet utilization, vehicle depreciation management, operational efficiency, and customer satisfaction. The latest results suggest that many of these initiatives are beginning to deliver measurable improvements despite ongoing industry challenges such as vehicle recalls and fluctuating used car market conditions.
Revenue and Pricing Metrics Show Significant Improvement
One of the most notable aspects of Hertz’s first-quarter performance was the continued improvement in its key revenue metrics. Revenue Per Unit (RPU) and Revenue Per Day (RPD) both improved sequentially on a year-over-year basis, signaling healthier demand and stronger pricing execution. RPD increased 5.5% compared with the prior year, marking the most substantial year-over-year improvement since the unusual travel rebound and microchip-driven market surge seen in 2022.
The company’s improved pricing performance demonstrates how Hertz has become more disciplined in balancing fleet supply with customer demand. Rather than aggressively expanding fleet size, the company has focused on optimizing vehicle allocation across markets and maintaining profitability. Executives indicated that structural changes in commercial strategy have played a major role in driving these results.
The 11% revenue increase also marked Hertz’s strongest annual revenue growth in three years, underscoring the effectiveness of its transformation initiatives. The company noted that improvements were broad-based across its operations and supported by a younger and more efficient fleet.
Losses Narrow as EBITDA Improves Nearly 50%
Although Hertz remained unprofitable during the quarter, the company significantly reduced its losses compared with the previous year. GAAP net loss for the quarter totaled $333 million, while diluted GAAP earnings per share came in at negative $1.06.
On an adjusted basis, which excludes certain items, Hertz reported an adjusted net loss of $224 million and adjusted diluted earnings per share of negative $0.72. These figures represented a year-over-year improvement of $105 million in adjusted net loss and a $0.35 improvement in adjusted EPS.
The company also delivered a sharp improvement in Adjusted Corporate EBITDA, which came in at negative $161 million. That represented nearly a 50% improvement from the same quarter last year. Importantly, the EBITDA results included a negative impact exceeding $25 million from elevated vehicle recall activity.
The improvement in profitability metrics highlights the company’s focus on cost discipline and operational efficiency. Hertz has aggressively targeted reductions in depreciation costs, better fleet utilization, and lower operating expenses as part of its turnaround strategy.
Fleet Strategy Continues Delivering Results
A major pillar of Hertz’s operational recovery has been its “Buy Right, Hold Right, Sell Right” fleet strategy. The approach is designed to optimize the vehicle lifecycle by purchasing vehicles strategically, maintaining them efficiently, and disposing of them at the right time to minimize depreciation losses.
The company reported that its fleet is now the youngest it has been in nearly a decade, helping improve maintenance efficiency, customer satisfaction, and resale value performance.
Net Depreciation per Unit per Month (Net DPU), one of Hertz’s most closely watched metrics, improved to $312 during the quarter. That represented a 13% year-over-year improvement and brought the company closer to its long-term “North Star” target of maintaining DPU below $300.
Hertz noted that the used car market remained weak through February, reflecting seasonal softness, but conditions improved considerably later in the quarter. The strengthening used vehicle environment helped support the company’s disciplined fleet rotation strategy.
The company’s utilization rate reached 79% during the quarter, representing a decline of 70 basis points compared with the prior year. However, management emphasized that elevated recall activity had a significant effect on utilization. Excluding recall-related disruptions, utilization would have increased by approximately 140 basis points year over year.
Vehicle Recalls Create Temporary Operational Headwinds
One of the biggest challenges facing Hertz during the quarter was an unusually high level of vehicle recall activity. According to the company, recall-related disruptions were approximately 300% higher than the same period last year.
The elevated recall environment reduced utilization by around 200 basis points and negatively affected transaction days by roughly 930,000. Hertz estimated the revenue impact from these disruptions at approximately $50 million during the quarter.
In addition, recalls reduced Adjusted Corporate EBITDA by more than $25 million. Despite the setback, the company stressed that the underlying business continued to perform well and that the recalls represented a temporary rather than structural issue.
To minimize the impact, Hertz redeployed available vehicles to stronger demand markets, coordinated closely with automotive manufacturers and government agencies, and maintained disciplined fleet planning. The company believes these actions helped preserve operational stability while managing through the disruptions.
Focus on Customer Experience Gains Recognition
Beyond financial and operational metrics, Hertz also highlighted continued progress in improving customer experience and brand perception.
The company earned the only car rental position on USA Today’s list of Most Trusted Brands for 2026. Hertz also recorded the largest year-over-year improvement among rental car companies in Business Travel News’ satisfaction survey.
Management said customer experience remains a core focus area across the organization. Hertz continues investing in service improvements at every customer touchpoint, from reservation systems and vehicle pickup processes to digital tools and fleet quality.
The company also reported record customer satisfaction levels in Europe during the first quarter, contributing to stronger Global Net Promoter Scores across the business.
These improvements are especially important as Hertz seeks to rebuild brand loyalty and compete more effectively in a highly competitive rental market.
Liquidity Position Strengthened
Hertz ended the first quarter with approximately $837 million in liquidity, providing the company with financial flexibility as it continues executing its turnaround strategy.
In April, the company also completed additional financing transactions that added approximately $200 million in liquidity. Management indicated that maintaining a strong liquidity position remains essential while the company navigates industry volatility and continues investing in operational improvements.
The strengthened balance sheet is expected to support fleet investments, technology initiatives, and expansion into new mobility opportunities.
Building a Diversified Growth Platform
While Hertz continues focusing heavily on stabilizing its core rental car operations, the company is also pursuing a broader long-term growth strategy designed to diversify its business model.
Management outlined four strategic platform areas that will shape future expansion: Rent-a-Car, Service, Fleet, and Mobility. Each segment is intended to create additional value streams beyond traditional vehicle rentals.
In the Rent-a-Car segment, Hertz recently introduced an advanced fleet planning engine aimed at improving allocation efficiency and operational precision. The company believes this technology will enhance decision-making across fleet management, pricing, and utilization.
In the Fleet segment, Hertz Car Sales continued expanding its omnichannel retail strategy through a new partnership with eBay Motors. The partnership allows thousands of Hertz Certified near-new vehicles to be listed on one of the world’s largest online automotive marketplaces, increasing visibility and sales opportunities for the company’s retail inventory.
The initiative reflects Hertz’s broader push toward digital retailing and direct-to-consumer vehicle sales.
Oro Mobility Marks Entry into Emerging Mobility Markets
One of the most significant strategic announcements during the quarter was the launch of Oro Mobility, an affiliated operating company focused on fleet management solutions for emerging mobility services.
Oro Mobility is designed to provide driver-led and autonomous end-to-end fleet management services across multiple transportation segments. The company aims to capitalize on the growing shift from personally owned vehicles toward commercially managed transportation fleets.
Hertz believes Oro addresses a major operational gap within the evolving mobility ecosystem by offering fleet ownership, orchestration, logistics, and maintenance services at scale.
The new venture leverages Hertz’s expertise in large-scale fleet management, vehicle servicing, facility operations, and logistics coordination. Management also noted that Oro’s leadership team possesses significant autonomous vehicle operational experience, positioning the company to support future autonomous mobility deployments.
One of Oro’s first major partnerships involves Uber Technologies, extending the companies’ long-standing relationship in rideshare vehicle rentals. The collaboration will support both autonomous and driver-led operations, potentially opening new opportunities in fleet services and mobility infrastructure.
Transformation Strategy Continues to Evolve
Hertz executives emphasized that the company’s transformation remains centered around measurable operational improvements guided by a series of long-term performance targets. These include reducing DPU below $300, maintaining RPU above $1,500, and lowering Direct Operating Expense per Transaction Day into the low-$30 range.
Management stated that the first-quarter results demonstrate tangible progress toward these objectives, even amid external challenges such as elevated recall activity.
Although the company still faces profitability pressures and broader economic uncertainty, the combination of improving revenue trends, disciplined fleet management, enhanced customer satisfaction, and strategic expansion initiatives suggests Hertz is gradually rebuilding operational momentum.
As the company moves through 2026, investors and industry observers will likely continue monitoring Hertz’s ability to sustain revenue growth, manage fleet economics, and expand into new mobility markets while maintaining financial discipline.
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