HTZMEDIUM SIGNALFINANCIAL10-K

Hertz substantially reduced net losses while experiencing declining operating cash flows and increasing debt levels.

The meaningful improvement in net losses suggests management's restructuring efforts may be gaining traction, though this remains a company working through significant financial distress. However, the decline in operating cash flow generation paired with rising debt levels indicates ongoing liquidity pressures that investors should monitor closely.

Comparing 2026-02-26 vs 2025-02-18View on EDGAR →
FINANCIAL ANALYSIS

Hertz showed a substantial improvement in net losses, moving from -$2.9B to -$747M, indicating meaningful progress in stemming financial hemorrhaging. However, this improvement was offset by concerning operational trends, with operating cash flow declining 26.9% to $1.6B and total debt increasing 13.2% to $15.7B. The combination of reduced cash generation and higher debt burden suggests the company continues to face significant liquidity challenges despite the improved bottom-line performance.

FINANCIAL STATEMENT CHANGES
Net Income
P&L
+73.9%
-$2.9B-$747.0M

Net income grew 73.9% — bottom-line growth signals improving overall business health.

Operating Cash Flow
Cash Flow
-26.9%
$2.2B$1.6B

Operating cash flow softened — monitor whether temporary working capital timing or structural deterioration.

SG&A Expense
P&L
+16.8%
$819.0M$957.0M

SG&A increased modestly — likely reflects growth-related hiring or sales expansion investment.

Total Debt
Balance Sheet
+13.2%
$13.9B$15.7B

Debt rose 13.2% — additional borrowing for investment or operations; monitor coverage ratios.

LANGUAGE CHANGES
NEW — 2026-02-26
PRIOR — 2025-02-18
ADDED
Class Shares Outstanding as of February 19, 2026 Hertz Global Holdings, Inc.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 46 CONSOLIDATED RESULTS OF OPERATIONS - HERTZ 51 RESULTS OF OPERATIONS AND SELECTED OPERATING DATA BY SEGMENT 53 LIQUIDITY AND CAPITAL RESOURCES 59 ITEM 7A.
AND SUBSIDIARIES THE HERTZ CORPORATION AND SUBSIDIARIES (xxxiii) "VIE" means variable interest entity.
We have proprietary rights to a number of trademarks used in this 2025 Annual Report that are important to our business, including, without limitation, Hertz, Dollar and Thrifty.
AND SUBSIDIARIES THE HERTZ CORPORATION AND SUBSIDIARIES CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS AND SUMMARY OF RISK FACTORS (Continued) our ability to offer services for a favorable customer experience, and to retain and develop customer loyalty and market share; our ability to maintain our network of leases and vehicle rental concessions at airports and other key locations in the U.S.
AND SUBSIDIARIES THE HERTZ CORPORATION AND SUBSIDIARIES CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS AND SUMMARY OF RISK FACTORS (Continued) volatility in our share price, our ownership structure and certain provisions of our charter documents, which could, among other things, negatively affect the market price of our common stock; our ability to implement an effective business continuity plan to protect the business in exigent circumstances; our ability to effectively maintain effective internal control over financial reporting; and our ability to execute strategic transactions.
We also operate the Hertz Car Sales brand, which offers a range of quality, competitively-priced used cars for sale online and at locations across the U.S.
Our Strategy Through our "Back-to-Basics" roadmap, we are committed to executing a comprehensive strategy to transform our business, anchored by three financial pillars: disciplined fleet management, revenue optimization and rigorous cost control.
Building on our brand strength, global network and fleet management expertise, we remain committed to operational excellence and keeping customers central to everything we do.
We have strengthened our fleet by refining our capabilities by sourcing vehicles strategically, deploying them efficiently and monetizing them effectively.
REMOVED
Class Shares Outstanding as of February 6, 2025 Hertz Global Holdings, Inc.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 47 ITEM 7A.
and The Hertz Corporation into a single filing; (ii) "Amendment No.
GAAP" means accounting principles generally accepted in the U.S.; (xxx) "vehicles means cars, vans, crossovers and light trucks; and (xxxi) "VIE" means variable interest entity.
AND SUBSIDIARIES THE HERTZ CORPORATION AND SUBSIDIARIES We have proprietary rights to a number of trademarks used in this 2024 Annual Report that are important to our business, including, without limitation, Hertz, Dollar, Thrifty, Hertz Gold Plus Rewards and Hertz Ultimate Choice.
AND SUBSIDIARIES THE HERTZ CORPORATION AND SUBSIDIARIES CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS AND SUMMARY OF RISK FACTORS (Continued) our ability to maintain our network of leases and vehicle rental concessions at airports and other key locations in the U.S.
AND SUBSIDIARIES THE HERTZ CORPORATION AND SUBSIDIARIES CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS AND SUMMARY OF RISK FACTORS (Continued) our ability to implement an effective business continuity plan to protect the business in exigent circumstances; our ability to effectively maintain effective internal control over financial reporting; and our ability to execute strategic transactions.
Our Strategy Our strategy is focused on excellence in execution of the basics.
We are committed to delivering unmatched customer experiences, optimizing fleet economics and building on our leadership in ride share.
Continuing to build on our brand strength, global network and global fleet management capabilities, while also combining those efforts with investments in technology, shared mobility and a digital-first customer experience, will allow us to deliver on the basics and remain a central player in the modern mobility ecosystem.
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