Hertz Misses Q1 Estimates, Expects Q3 Turnaround

Hertz Global Holdings reported a larger-than-expected first-quarter loss in 2025, with adjusted earnings per share at -$1.12 and revenue down 13% to $1.81 billion, both missing analyst estimates. The company attributed the weak results to a smaller fleet and decreased demand from corporate and government clients, though leisure bookings grew. Hertz's shares fell following the earnings release, despite having risen over 80% year-to-date on news of Bill Ackman's major stake. CEO Gil West emphasized progress in cost control and a 45% reduction in vehicle depreciation, as well as a $92 million decrease in operating expenses. Management anticipates returning to positive adjusted EBITDA by Q3 2025 and sees potential upside if vehicle supply remains tight. However, Hertz has missed consensus earnings and revenue estimates for the past four quarters, raising questions about its near-term prospects.