v3.26.3
Segment Information
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company's CODM is its Chief Executive Officer. The CODM uses Adjusted EBITDA to determine segment profitability, which aids the CODM in the assessment of segment operating performance and assists in the evaluation of resource needs and the allocation of resources to the Company's reportable segments. The CODM conducts regular meetings with finance and operational leaders to review targeted results versus actual results to facilitate the evaluation of Adjusted EBITDA. The Company has identified two reportable segments, which are consistent with its operating segments and organized based primarily on the geographic areas in which business is conducted, as follows:
•Americas RAC – Rental of vehicles (cars, crossovers, vans and light trucks), as well as sales of value-added services, in the U.S., Canada, Latin America and the Caribbean. The Company maintains a network of company-operated rental locations in this segment and has franchisees and partners that operate rental locations under the Company's brands; and

•International RAC – Rental of vehicles (cars, crossovers, vans and light trucks), as well as sales of value-added services, in locations other than the U.S., Canada, Latin America and the Caribbean. The Company maintains a network of company-operated rental locations, a majority of which are in Europe, and has franchisees and partners that operate rental locations under the Company's brands.

In addition to its reportable segments, the Company has corporate operations ("Corporate"), which includes general corporate assets and expenses and net interest expense on non-vehicle debt. Corporate includes other items necessary to reconcile the reportable segments to the Company's total amounts.

The Oro Mobility transactions, as further disclosed in Note 15, "Subsequent Events," along with the implementation of the Company's new Platform Operating Model, as defined in Note 15, "Subsequent Events," are expected to
impact the Company's operating and reportable segments. As a result, the Company expects to revise its reportable segments effective in the fourth quarter of 2026.

The following tables provide revenue, significant expenses, other segment expenses and the segment measure of profitability, Adjusted EBITDA, by reportable segment, including a reconciliation of Adjusted EBITDA to consolidated income (loss) before income taxes for Hertz Global and Hertz.

Effective in the first quarter of 2026, the Company revised its definition of Adjusted EBITDA to adjust for realized (gains) losses from financial instruments, share-based compensation expense and foreign currency (gains) losses. The update to Adjusted EBITDA is to better reflect the CODM's view of ongoing operations and assessment of the Company's operational performance. The presentation of the prior periods has been recast to conform to the current period presentation.

Three Months Ended September 30, 2026
(In millions)Americas RACInternational RACTotal
Revenues$2,045 $572 $2,617 
Significant segment expenses:
Direct vehicle and operating1,242 303 
Depreciation of revenue earning vehicles and lease charges, net(1)
358 110 
Selling, general and administrative137 71 
Other segment items(2)
120 (6)
Segment profit (loss): Adjusted EBITDA$188 $94 $282 
Adjustments:
Corporate(3)
(49)
Non-vehicle depreciation and amortization(28)
Non-vehicle debt interest, net(4)
(158)
Vehicle debt-related charges(5)
(11)
Restructuring and restructuring related charges(6)
(21)
Net gains (losses) on financial instruments(7)
76 
Share-based compensation expense(8)
(18)
Foreign currency gains (losses)(9)
(2)
Legal settlement(10)
6 
Other items(11)
(9)
Income (loss) before income taxes - Hertz68 
Change in fair value of Public Warrants(12)
19 
Income (loss) before income taxes - Hertz Global$87 
Three Months Ended September 30, 2025
(In millions)Americas RACInternational RACTotal
Revenues$1,910 $568 $2,478 
Significant segment expenses:
Direct vehicle and operating1,155 298 
Depreciation of revenue earning vehicles and lease charges, net(1)
355 102 
Selling, general and administrative127 80 
Other segment items(2)
120 (15)
Segment profit (loss): Adjusted EBITDA$153 $103 $256 
Adjustments:
Corporate(3)
(53)
Non-vehicle depreciation and amortization(29)
Non-vehicle debt interest, net(4)
(123)
Vehicle debt-related charges(5)
(12)
Restructuring and restructuring related charges(6)
(4)
Net gains (losses) on financial instruments(7)
43 
Share-based compensation expense(8)
(14)
Foreign currency gains (losses)(9)
(8)
Legal settlement(10)
154 
Gain on sale of non-vehicle capital assets(13)
39 
Other items(11)
(9)
Income (loss) before income taxes - Hertz240 
Change in fair value of Public Warrants(12)
(6)
Income (loss) before income taxes - Hertz Global$234 

Nine Months Ended September 30, 2026
(In millions)Americas RACInternational RACTotal
Revenues$5,591 $1,426 $7,017 
Significant segment expenses:
Direct vehicle and operating3,523 815 
Depreciation of revenue earning vehicles and lease charges, net(1)
1,151 285 
Selling, general and administrative398 193 
Other segment items(2)
346 (6)
Segment profit (loss): Adjusted EBITDA$173 $139 $312 
Adjustments:
Corporate(3)
(159)
Non-vehicle depreciation and amortization(80)
Non-vehicle debt interest, net(4)
(443)
Vehicle debt-related charges(5)
(33)
Restructuring and restructuring related charges(6)
(37)
Net gains (losses) on financial instruments(7)
156 
Share-based compensation expense(8)
(55)
Foreign currency gains (losses)(9)
(2)
Nine Months Ended September 30, 2026
(In millions)Americas RACInternational RACTotal
Legal settlement(10)
6 
Gain on sale of non-vehicle capital assets(13)
64 
Other items(11)
(23)
Income (loss) before income taxes - Hertz(294)
Change in fair value of Public Warrants(12)
150 
Other(2)
Income (loss) before income taxes - Hertz Global$(146)

Nine Months Ended September 30, 2025
(In millions)Americas RACInternational RACTotal
Revenues$5,138 $1,338 $6,476 
Significant segment expenses:
Direct vehicle and operating3,353 768 
Depreciation of revenue earning vehicles and lease charges, net(1)
1,142 265 
Selling, general and administrative373 184 
Other segment items(2)
310 (10)
Segment profit (loss): Adjusted EBITDA$(40)$131 $91 
Adjustments:
Corporate(3)
(173)
Non-vehicle depreciation and amortization(88)
Non-vehicle debt interest, net(4)
(371)
Vehicle debt-related charges(5)
(35)
Restructuring and restructuring related charges(6)
(11)
Net gains (losses) on financial instruments(7)
(69)
Share-based compensation expense(8)
(45)
Foreign currency gains (losses)(9)
(10)
Legal settlement(10)
154 
Gain on sale of non-vehicle capital assets(13)
128 
Other items(11)
(48)
Income (loss) before income taxes - Hertz(477)
Change in fair value of Public Warrants(12)
(130)
Income (loss) before income taxes - Hertz Global$(607)
(1)    Includes the write-down to carrying value of non-program vehicles classified as held for sale. See Note 4, "Revenue Earning Vehicles."
(2)    Represents certain other segment items that are not deemed significant segment expenses, which primarily consist of vehicle interest expense, net and other adjustments, such as intercompany royalty assessment fees, vehicle-debt related charges, restructuring and restructuring related charges and certain other miscellaneous items as described in footnote 11 below.
(3)    Represents other reconciling items primarily consisting of general corporate expenses as well as other business activities.
(4)    Excludes gains (losses) related to the fair value of the Exchange Features 2029, the Exchange Feature 2030, the First Lien Exchangeable Feature 2030 and the Capped Call Transactions 2030, which are included in footnote 7 below.
(5)    Represents vehicle debt-related charges relating to the amortization of deferred financing costs and debt discounts and premiums which are recorded within vehicle interest expense.
(6)    Represents charges incurred under restructuring actions as defined in U.S. GAAP. Also includes restructuring related charges such as incremental costs incurred related primarily to consulting fees, personnel reductions, litigation and closures of underperforming locations. Charges are recorded within selling, general and administrative expense.
(7)    Represents total realized and unrealized gains (losses) on derivative financial instruments in which interest rate instrument gains (losses) are recorded within vehicle interest expense, net and foreign currency forward contract gains (losses) are recorded within selling, general and administrative expense. Also includes gains (losses) associated with the Exchange Features 2029, the Exchange Feature 2030, the First Lien Exchangeable Feature 2030 and the Capped Call Transactions 2030, which are recorded within non-vehicle interest expense, net. See Note 10, "Financial Instruments." As a result of the revision to Adjusted EBITDA, the three months ended September 30, 2026 and 2025, includes a realized loss of $3 million and a realized gain of $10 million, respectively, on derivative financial instruments, and the nine months ended September 30, 2026 and 2025, includes a realized loss of $7 million and a realized gain of $3 million, respectively, on derivative financial instruments.
(8)    Represents total employee compensation expense associated with grants made under the 2021 Omnibus Plan. See Note 9, "Stock-Based Compensation."
(9)    Represents (gains) losses recognized on the remeasurement and settlement of foreign currency transactions, excluding gains (losses) related to foreign currency derivative financial instruments, which are included in footnote 7 above.
(10)    Represents the gain related to the receipt of legal settlement distributions in August 2026 and September 2025 in connection with the Company’s participation in a class action settlement. See Note 12, "Contingencies and Off-Balance Sheet Commitments."
(11)    Represents miscellaneous items. For the three months ended September 30, 2026, primarily includes certain IT-related charges, certain environmental remediation costs and cloud computing costs. For the three months ended September 30, 2025, primarily includes an unfavorable litigation ruling and an increase to an existing bankruptcy-related litigation reserve, partially offset by certain other litigation adjustments. For the nine months ended September 30, 2026, primarily includes certain IT-related charges, cloud computing costs and certain environmental remediation costs. For the nine months ended September 30, 2025, primarily includes an increase to an existing bankruptcy-related litigation reserve, certain IT-related charges, an unfavorable litigation ruling, cloud computing costs, certain concession-related adjustments and certain other litigation charges and adjustments.
(12)    Represents the change in fair value during the reporting period for Hertz Global's outstanding Public Warrants. See Note 11, "Fair Value Measurements."
(13)    Represents the gain recognized on the sales of certain non-vehicle capital assets sold in the second quarter of 2026 and in June and July 2025. See Note 3, "Divestitures."
The following tables provide other significant segment statement of operations, balance sheet and cash flow information for each of Hertz Global and Hertz.
Three Months Ended September 30,
(In millions)Americas RACInternational RAC
Unallocated(1)
Total Hertz Global and Hertz
2026
Depreciation and amortization, non-vehicle assets$23 $3 $2 $28 
Vehicle interest expense, net(2)
139 24 — 163 
Non-vehicle interest expense, net(2)
4 (3)87 88 
2025
Depreciation and amortization, non-vehicle assets$23 $3 $3 $29 
Vehicle interest expense, net(2)
134 27 — 161 
Non-vehicle interest expense, net(2)
1 (4)89 86 
Nine Months Ended September 30,
(In millions)Americas RACInternational RAC
Unallocated(1)
Total Hertz Global and Hertz
2026
Depreciation and amortization, non-vehicle assets$65 $10 $5 $80 
Vehicle interest expense, net(2)
401 73 — 474 
Non-vehicle interest expense, net(2)
9 (10)293 292 
2025
Depreciation and amortization, non-vehicle assets$72 $10 $6 $88 
Vehicle interest expense, net(2)
380 73 — 453 
Non-vehicle interest expense, net(2)
1 (12)456 445 
(1)    Includes expenses associated with the Company's corporate operations which are not attributable to a particular reportable segment.
(2)    The Company's CODM relies primarily on interest expense, net when reviewing targeted results versus actual results to facilitate in the evaluation of segment results.

(In millions)Americas RACInternational RAC
Unallocated(1)
Total Hertz Global
Unallocated - Hertz(2)
Total Hertz
As of September 30, 2026
Revenue earning vehicles, net(3)
$11,125 $1,842 $— $12,967 $— $12,967 
Property and equipment, net347 64 86 497 — 497 
Total assets(4)
18,004 3,570 1,172 22,746 (1)22,745 
As of December 31, 2025
Revenue earning vehicles, net(3)
$10,844 $1,682 $— $12,526 $— $12,526 
Property and equipment, net415 63 88 566 — 566 
Total assets(4)
17,809 3,357 1,145 22,311 (3)22,308 
(1)    Includes assets associated with the Company's corporate operations, which are not attributable to a particular reportable segment.
(2)    Includes assets associated with Hertz's corporate operations, which are not attributable to a particular reportable segment.
(3)    Includes the carrying amount of vehicles classified as held for sale as of the respective balance sheet date. See Note 4, "Revenue Earning Vehicles."    
(4)    The consolidated total assets of Hertz Global and Hertz as of September 30, 2026 and December 31, 2025 include total assets of VIEs of $1.4 billion and $1.3 billion, respectively, which can only be used to settle obligations of the VIEs. See "Pledges Related to Vehicle Financing" in Note 5, "Debt," for further information.
Nine Months Ended September 30,
(In millions)Americas RACInternational RAC
Unallocated(1)
Total Hertz Global and Hertz
2026
Expenditures$(7,556)$(1,364)$(9)$(8,929)
Proceeds from disposals5,947 956 — 6,903 
Net expenditures$(1,609)$(408)$(9)$(2,026)
2025
Expenditures$(6,492)$(1,376)$(1)$(7,869)
Proceeds from disposals5,084 1,066 (3)6,147 
Net expenditures$(1,408)$(310)$(4)$(1,722)
(1)    Includes assets associated with the Company's corporate operations which are not attributable to a particular reportable segment.

The Company operates in the U.S. and in international countries. International operations are substantially in Europe. The operations within major geographic areas for each of Hertz Global and Hertz are summarized below:
Three Months Ended
September 30,		Nine Months Ended
September 30,
(In millions)2026202520262025
Revenues
U.S.$1,910 $1,779 $5,315 $4,865 
International
707 699 1,702 1,611 
Total Hertz Global and Hertz
$2,617 $2,478 $7,017 $6,476 

(In millions)U.S.InternationalTotal Hertz GlobalU.S. - HertzTotal Hertz
As of September 30, 2026
Revenue earning vehicles, net(1)
$10,623 $2,344 $12,967 $— $12,967 
Property and equipment, net417 80 497 — 497 
Operating lease right-of-use assets1,856 370 2,226 — 2,226 
Total assets18,317 4,429 22,746 (1)22,745 
As of December 31, 2025
Revenue earning vehicles, net(1)
$10,473 $2,053 $12,526 $— $12,526 
Property and equipment, net484 82 566 — 566 
Operating lease right-of-use assets1,927 330 2,257 — 2,257 
Total assets18,242 4,069 22,311 (3)22,308 
(1)    Includes the carrying amount of vehicles classified as held for sale as of the respective balance sheet date. See Note 4, "Revenue Earning Vehicles."