Hertz Global Holdings (NASDAQ:HTZ) shares surged 15% in premarket trading after the car rental company delivered its first quarterly profit in two years, supported by tighter cost controls, higher vehicle utilization, and a modernized fleet mix.
For the third quarter, revenue rose to $2.5 billion, up from $2.41 billion in the same period last year and ahead of Wall Street forecasts. Net income reached $184 million, or $0.42 per share, while adjusted EBITDA surged by roughly $350 million to $190 million. Adjusted earnings per share of $0.12 beat analyst expectations by five cents, according to consensus estimates.
CEO Gil West said the quarter highlighted progress under Hertz’s “Back-to-Basics” strategy, which prioritizes fleet efficiency, cost management, and improved customer experience.
Vehicle utilization climbed above 84%, the company’s highest level since 2018, as Hertz reduced downtime and optimized its inventory. Depreciation per vehicle averaged $273 per month, comfortably within its target of staying below $300. Hertz also confirmed that it has already secured vehicle procurement for the 2026 model year and expects to maintain similar depreciation levels next year.
The company generated $250 million in positive free cash flow and ended the quarter with $2.2 billion in liquidity. Direct operating expenses declined 1% year-over-year, while cost per rental day improved both sequentially and annually.
Hertz also expanded its direct-to-consumer vehicle sales platform, boosting retail fleet sales by 570 basis points in 2025 compared with the prior year period.
“We’re building a new platform for growth as we continue to transform Hertz into a company that can operate profitably across multiple segments of the mobility market,” West said.