Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2026

Schedule of Fair Value of the Debt Facilities

The fair value of the debt facilities is estimated based on quoted market rates as well as borrowing rates currently available to the Company for loans with similar terms and average maturities (i.e., Level 2 inputs).



	September 30, 2026				December 31, 2025
(In millions)	Nominal Unpaid Principal Balance		Aggregate Fair Value		Nominal Unpaid Principal Balance		Aggregate Fair Value
Exchangeable Notes Due 2029	$	294	$	97	$	271	$	311
Exchangeable Notes Due 2030	425		113		425		324
Exchangeable First Lien Notes Due 2030	380		262		—		—
Other Non-Vehicle Debt	5,174		3,260		4,828		4,187
Total Non-Vehicle Debt	6,273		3,732		5,524		4,822
Vehicle Debt	12,027		12,068		11,679		11,662
Total	$	18,300	$	15,800	$	17,203	$	16,484

Schedule of Company's Assets And Liabilities

The following table summarizes the Company's assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy as follows:


	September 30, 2026								December 31, 2025
(In millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total

Assets:
Cash equivalents and restricted cash equivalents	$	206	$	—	$	—	$	206	$	287	$	—	$	—	$	287
Capped Call Transactions 2030	—		—		5		5		—		—		21		21
Liabilities:
Public Warrants	$	72	$	—	$	—	$	72	$	222	$	—	$	—	$	222
Exchange Features 2029	—		—		13		13		—		—		78		78
Exchange Feature 2030	—		—		11		11		—		—		54		54
First Lien Exchangeable Feature 2030	—		—		68		68		—		—		—		—

Schedule of Estimated Fair Value of the Exchange Feature

The estimated fair values of the Exchange Features 2029 were computed using the following key inputs as of September 30, 2026 and December 31, 2025:


	September 30, 2026			December 31, 2025
Hertz Global common share price	$	1.67		$	5.14
Expected term (years)	2.79			3.54
Risk-free interest rate	4.98		%	3.60		%
Credit spread	42.94		%	11.26		%
Expected volatility	70.00		%	35.00		%

The estimated fair value of the Exchange Feature 2030 was computed using the following key inputs as of September 30, 2026 and December 31, 2025:


	September 30, 2026			December 31, 2025
Hertz Global common share price	$	1.67		$	5.14
Expected term (years)	4.00			4.75
Risk-free interest rate	5.05		%	3.71		%
Credit spread	44.61		%	12.45		%
Expected volatility	70.00		%	35.00		%

The estimated fair value of the First Lien Exchangeable Feature 2030 was computed using the following key inputs as of September 30, 2026 and upon issuance:


	September 30, 2026			Issuance
Hertz Global common share price	$	1.67		$	2.30
Expected term (years)	3.75			4.01
Risk-free interest rate	5.03		%	4.12		%
Credit spread	22.76		%	13.91		%
Expected volatility	70.00		%	70.00		%

The estimated fair value of the Capped Call Transactions 2030 was computed using the following key inputs as of September 30, 2026 and December 31, 2025:


	September 30, 2026			December 31, 2025
Hertz Global common share price	$	1.67		$	5.14
Expected term (years)	4.00			4.75


Risk-free interest rate	5.05		%	3.71		%
Dividend yield	—		%	—		%
Expected volatility	70.00		%	36.00		%

Schedule of Fair Value Measurements

The following table summarizes the activity related to the Exchange Features 2029 measured at fair value utilizing significant unobservable inputs (Level 3):


(In millions)	Exchange Features 2029
Balance as of December 31, 2024	$	61
Initial recognition of derivative liability(1)	11
(Gain) loss in fair value recognized in earnings	6
Balance as of December 31, 2025	78
Initial recognition of derivative liability(2)	4
(Gain) loss in fair value recognized in earnings(3)	(19)
Balance as of March 31, 2026	63
(Gain) loss in fair value recognized in earnings(3)	(37)
Balance as of June 30, 2026	26

(Gain) loss in fair value recognized in earnings(4)	(13)
Balance as of September 30, 2026	$	13

(1) Represents the initial debt discounts recognized in association with the Semi-annual PIK Events occurring in the first and third quarters of 2025.

(2) Represents the initial debt discount recognized in association with the Semi-annual PIK Event in the first quarter of 2026. See Note 5, "Debt," for further details.

(3) Included in Non-vehicle interest expense, net in the accompanying unaudited condensed consolidated statements of operations for the nine months ended September 30, 2026.

(4) Included in Non-vehicle interest expense, net in the accompanying unaudited condensed consolidated statements of operations for the three and nine months ended September 30, 2026.

The following table summarizes the activity related to the Exchange Feature 2030 measured at fair value utilizing significant unobservable inputs (Level 3):


(In millions)	Exchange Feature 2030
Balance as of December 31, 2024	$	—
Initial recognition of derivative liability	103
(Gain) loss in fair value recognized in earnings	(49)
Balance as of December 31, 2025	54
(Gain) loss in fair value recognized in earnings(1)	(14)
Balance as of March 31, 2026	40
(Gain) loss in fair value recognized in earnings(1)	(19)
Balance as of June 30, 2026	21

(Gain) loss in fair value recognized in earnings(2)	(10)
Balance as of September 30, 2026	$	11

(1) Included in Non-vehicle interest expense, net in the accompanying unaudited condensed consolidated statements of operations for the nine months ended September 30, 2026.

(2) Included in Non-vehicle interest expense, net in the accompanying unaudited condensed consolidated statements of operations for the three and nine months ended September 30, 2026.

The following table summarizes the activity related to the First Lien Exchangeable Feature 2030 measured at fair value utilizing significant unobservable inputs (Level 3):


(In millions)	First Lien Exchangeable Feature 2030
Balance as of December 31, 2025	$	—
Initial recognition of derivative liability	115
(Gain) loss in fair value recognized in earnings(1)	(5)
Balance as of June 30, 2026	110
Initial recognition of derivative liability - Greenshoe Option	8
(Gain) loss in fair value recognized in earnings(2)	(50)
Balance as of September 30, 2026	$	68

(1) Included in Non-vehicle interest expense, net in the accompanying unaudited condensed consolidated statements of operations for the nine months ended September 30, 2026.

(2) Included in Non-vehicle interest expense, net in the accompanying unaudited condensed consolidated statements of operations for the three and nine months ended September 30, 2026.

The following table summarizes the activity related to the Capped Call Transactions 2030 measured at fair value utilizing significant unobservable inputs (Level 3):


(In millions)	Capped Call Transactions 2030



Balance as of December 31, 2024	$	—
Initial recognition of derivative asset	37
Gain (loss) in fair value recognized in earnings	(16)
Balance as of December 31, 2025	21
Gain (loss) in fair value recognized in earnings(1)	(5)
Balance as of March 31, 2026	16
Gain (loss) in fair value recognized in earnings(1)	(8)
Balance as of June 30, 2026	8
Gain (loss) in fair value recognized in earnings(2)	(3)
Balance as of September 30, 2026	$	5

(1) Included in Non-vehicle interest expense, net in the accompanying unaudited condensed consolidated statements of operations for the nine months ended September 30, 2026.

(2) Included in Non-vehicle interest expense, net in the accompanying unaudited condensed consolidated statements of operations for the three and nine months ended September 30, 2026.