Hertz Global Holdings, Inc. (HTZ) SEC Filings & Earnings Calls

Joint Venture Execution Risk

“The JV Entity will be governed by a six-person board, with each of the Issuer and the JV Investors entitled to designate three members.” · word for word

Board turnover may signal strategic shift; Knighthead Capital director appointment suggests increased influence of major shareholder

“Mr. Zirkin, who is associated with Knighthead Capital Management, LLC, will be compensated $1.00 per year for his directorship per the Policy.” · word for word

Increased debt obligations from new financing supplements may raise leverage.

“Creation of direct financial obligations under off-balance sheet arrangement.”

Governance risk from large shareholder voting cap and litigation settlement; potential for future control changes.

“CK Amarillo voting capped at 45%; sale-of-control provision triggers payment to other shareholders.”

Elevated recall activity impacted GAAP Net Income by $27M and Adjusted Corporate EBITDA by ~$30M; recall activity ~300% higher YoY.

“Recall activity was approximately 300% higher year over year and continued to be a measurable headwind to the business, impacting an average of nearly 15,000 vehicles. The estimated year-over-year impact to GAAP Net Income was $27 million and Adjusted Corporate EBITDA was approximately $30 million.” · word for word

Adjusted DOE per Day slightly above expectations due to higher revenue-related variable costs and sale leaseback expenses.

“Adjusted DOE per Day was $37.49, which was slightly higher than the Company's expectations, driven primarily by higher revenue-related variable costs and higher expenses related to sale leaseback transactions.” · word for word

High leverage and debt service costs

“Total debt $18.7 billion at June 30, 2026, with significant non-vehicle debt and PIK interest obligations.”

Fleet depreciation and residual value risk

“Depreciation of revenue earning vehicles increased 17.3% YoY, reflecting higher fleet costs and potential residual value pressure.”

Litigation risk

“The company is involved in litigation related to share repurchase program, as disclosed in subsequent events.”

Increased leverage from $380M debt issuance and potential dilution from warrant adjustments.

“Issuance of exchangeable notes and anti-dilution adjustment to warrants.”

Potential dilution from exchangeable notes and unregistered shares; increased leverage from new debt.

“Item 1.01: exchangeable notes convertible into up to 63.5M shares; Item 3.02: unregistered sales of equity securities.”

Dilution from share offering and potential conversion of notes; increased debt burden.

“Item 7.01: 37M share offering; Item 8.01: $350M notes.”

Potential dilution from equity offering and convertible notes; increased leverage.

“Item 7.01: $100M equity; Item 8.01: $300M notes.”

Used car market softness leading to depreciation losses and margin pressure.

“Unexpected softness in used car market caused losses on vehicle sales in May 2026.”

Standard securitization risk, but no immediate concern.

“Item 1.01: amortization events described, but routine.”

High leverage and debt service

“Total debt $18,196 million; net loss $(333) million; interest expense $256 million.”

Vehicle residual value risk

“Depreciation of revenue earning vehicles and lease charges, net $481 million; (Gain) loss on disposal of revenue earning vehicles $23 million.” · word for word

Liquidity covenant compliance

“Minimum liquidity covenant requires $400-$500 million; as of March 31, 2026, Hertz was in compliance.”

Vehicle recalls significantly impacted operations: ~300% higher YoY, reduced utilization by ~200 bps, impacted ~930,000 transaction days, revenue impact ~$50M, EBITDA impact >$25M.

“Recall activity was approximately 300% higher year over year and reduced Utilization by roughly 200 basis points, impacted Transaction Days by approximately 930,000, and resulted in a revenue impact of about $50 million. The total impact to Adjusted Corporate EBITDA was more than $25 million.” · word for word

Used car market seasonality in Q1; improvement expected later in year.

“The used car market was in the seasonal trough through February, but has since improved considerably.” · word for word

Standard securitization risk, but no immediate concern.

“Item 1.01: subordinated notes, but routine.”

External headwinds impacting profitability

“The fourth quarter presented a set of compounding external headwinds that impacted Adjusted Corporate EBITDA by more than $100 million, including recall volumes nearly three times above normal levels, a government shutdown coupled with FAA flight cancellations, and multiple technology vendor outages.” · word for word

Residual value risk from fleet depreciation

“DPU was also above its quarterly target, reflecting a revised Black Book residual value outlook and softer seasonal wholesale pricing driven by elevated OEM and rental de-fleeting activity, resulting in an approximately $60 million non-cash depreciation charge.” · word for word

Concentrated ownership and control risk

“CK Amarillo's ownership percentage was approximately 58% of the Company's common stock.” · word for word

Transitory headwinds from government shutdown, FAA cancellations, vendor outages, and vehicle recalls impacted Q4 EBITDA by >$100M.

“A number of compounding external events impacted EBITDA in the fourth quarter by more than $100 million. This included a government shutdown coupled with FAA flight cancellations, multiple technology vendor outages, and a nearly 3 times higher than normal level of vehicles on recall.” · word for word

Non-cash depreciation charge of ~$60M due to revised residual value forecast.

“Depreciation was weighed down by an approximately $60 million non-cash charge driven by a revised third party forecast of residual values.” · word for word

Residual value risk

“The potential for residual values associated with non-program vehicles in our fleet to decline, including suddenly or unexpectedly, or fail to follow historical seasonal patterns.” · word for word

Supply chain disruption

“Disruptions in the supply chain, including in connection with any increase in tariffs or changes in tariff policies or trade agreements.” · word for word

Competition risk

“Significant changes in the competitive environment and the effect of competition in our markets on rental volume and pricing.” · word for word

No new risk signals; debt redemption reduces refinancing risk.

High Debt Levels

“Total debt $ 17,408 million as of September 30, 2025.”

Negative Stockholders' Equity

“Total stockholders' equity (deficit) $ ( 317 ) million as of September 30, 2025.”

Prior-Year Impairment Risk

“Long-Lived Assets impairment $ 1,048 million in Q3 2024.”

Revenue declined 4% YoY due to fleet reduction; reliance on fleet refresh and cost control for profitability.

“Total revenues down 4% to $2.5B.”