Hertz Global Hldgs — Income Statement, Cash Flows & Balance Sheet
Is Hertz profitable?
Hertz reported a second consecutive year of significant losses, though the damage was far smaller than the year prior.
| Item | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue ($M) | $9,371 | $9,049 | $8,504 |
| Net Income / (Loss) ($M) | $616 | $(2,862) | $(747) |
| Net Margin | 6.6% | (31.6%) | (8.8%) |
Revenue has declined for two straight years while the company has produced back-to-back net losses. The 2024 loss was inflated by a $1.0 billion asset-impairment charge and $3.6 billion in vehicle depreciation; 2025 was less severe but still showed a meaningful underlying operating deficit.
Two large non-recurring items in 2025 partially masked how the core business is performing.
| Item | 2025 ($M) |
|---|---|
| Gain on sale of non-vehicle capital assets | $144 |
| Legal settlement (antitrust class action) | $154 |
| Bankruptcy-related litigation reserve | $(24) |
| Net one-time benefit | $274 |
Hertz received a $154 million antitrust settlement payout and booked $144 million in gains from sale-leaseback transactions on real estate. Stripping these out, the underlying pre-tax loss would have been roughly $300 million deeper — meaning the core rental business is still losing money.
Vehicle depreciation normalized in 2025, but interest expense keeps rising.
| Line Item | 2023 | 2024 | 2025 | Change ('23–'25) |
|---|---|---|---|---|
| Vehicle depreciation & lease charges, net ($M) | $2,039 | $3,611 | $1,927 | -$112 |
| Total interest expense, net ($M) | $793 | $959 | $1,077 | +$284 |
The 2024 depreciation surge — driven by steep losses on used-car sales and EV write-downs — has subsided, which is meaningful relief. However, the total interest bill has grown sharply as debt levels have climbed, consuming a larger share of revenue each year.
Where does Hertz's revenue come from?
The Americas is by far the dominant business, but it is the segment dragging results.
| Segment | 2023 Revenue | 2024 Revenue | 2025 Revenue | 2025 Adj. EBITDA |
|---|---|---|---|---|
| Americas RAC ($M) | $7,722 | $7,398 | $6,759 | $(172) |
| International RAC ($M) | $1,649 | $1,651 | $1,745 | $124 |
Americas revenue has fallen roughly $1 billion over two years and the segment is loss-making at the operating level. International, which is primarily Europe, is modestly profitable and growing — but at roughly one-fifth the size, it cannot offset the Americas shortfall.
Does Hertz generate cash?
Operating cash flow remains positive, but it has eroded sharply.
| Cash Flow Item | 2023 | 2024 | 2025 | Change |
|---|---|---|---|---|
| Operating cash flow ($M) | $2,474 | $2,224 | $1,625 | -$849 |
| Vehicle capex, net of disposals ($M) | $(4,016) | $(2,846) | $(2,097) | +$1,919 |
| Free cash flow (approx.) ($M) | $(1,542) | $(622) | $(472) | +$1,070 |
Operating cash flow is positive largely because vehicle depreciation — a non-cash charge — is added back. Net spending on the vehicle fleet is declining, which has helped narrow the free-cash-flow deficit. Still, the business is not yet generating surplus cash after fleet investment.
How strong is Hertz's balance sheet?
Hertz carries an enormous debt load that dwarfs its assets at the corporate level.
| Item | 2024 | 2025 | Change |
|---|---|---|---|
| Total debt ($M) | $16,335 | $17,054 | +$719 |
| — of which vehicle debt ($M) | $11,231 | $11,629 | +$398 |
| — of which non-vehicle debt ($M) | $5,104 | $5,425 | +$321 |
| Total stockholders' equity / (deficit) ($M) | $153 | $(459) | -$612 |
Total debt has grown by over $700 million in a single year, and accumulated losses have pushed stockholders' equity negative — meaning the company's liabilities now exceed its total reported assets. The roughly $17 billion in debt is largely secured against the vehicle fleet, which provides some structural protection for those lenders, but leaves very little cushion for equity holders.
Liquidity is tight and near-term maturities are substantial.
| Item | Amount |
|---|---|
| Cash & equivalents ($M) | $565 |
| Available First Lien revolving credit facility ($M) | $924 |
| Total near-term liquidity ($M) | ~$1,489 |
| Debt maturing in 2026 ($M) | $3,185 |
| Debt maturing in 2027 ($M) | $4,760 |
Available liquidity is meaningful, but roughly $8 billion of debt matures within two years. Management has stated its intention to refinance these facilities, and the company was in compliance with all debt covenants as of year-end — but the refinancing risk is real, particularly given ongoing losses and a January 2026 legal payment of $346 million funded through the revolving credit line.