Hertz Global Holdings, Inc
Hertz Global Holdings, Inc. is a U.S.-based vehicle rental company whose main operating subsidiary, The Hertz Corporation, rents cars and related mobility vehicles through airport and off-airport locations. The business also sells used vehicles from its rental fleet and offers optional protection products and insurance-related add-ons to renters.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueCore rental of passenger vehicles through airport and local rental channels.
Disposition of revenue-earning vehicles after rental use through retail and wholesale channels.
Loss damage waivers, optional insurance coverages, and related renter add-ons.
Customers
Hertz serves leisure travelers, business travelers, and local customers who need temporary access to a vehicle. It also sells to renters who want convenience, reservation reliability, and optional protection products, while used-vehicle buyers absorb fleet disposals. The business is highly dependent on travel demand, airport traffic, and customer willingness to pay for add-ons and coverage.
Rent vehicles for vacations and personal travel, especially through airport locations.
Rent vehicles for work trips and time-sensitive mobility needs.
Rent for temporary transportation, repairs, or short-term convenience.
Purchase loss damage waivers and optional insurance coverages for risk transfer.
Buy retired fleet vehicles through Hertz's vehicle sales channels.
Strategy
Hertz is focused on maintaining fleet utilization, improving technology enablement, and managing vehicle depreciation and disposal economics. The company is also working to consolidate legacy systems and strengthen cybersecurity and business continuity, because operational reliability directly affects reservations, customer service, and fleet management. Its strategy is constrained by vehicle supply, travel demand, and the need to preserve asset values and financing flexibility.
Higher utilization improves revenue generation from the rentable fleet and supports operating efficiency.
Legacy systems create transaction failures, service disruptions, and higher operating overhead.
Residual values and depreciation drive profitability in a vehicle rental model.
Geography
Q1/2026Hertz operates in the United States and in many international jurisdictions, with its business shaped by local rental, insurance, consumer protection, and pricing rules. The company highlights especially active regulatory scrutiny in the U.S., Canada, and Europe, where pricing disclosure and consumer-law requirements can affect how it advertises and charges customers. Its operating footprint also exposes it to travel demand, vehicle supply conditions, and country-specific compliance costs.
Share of the revenue the company reports by geography.
Risks
Hertz faces operational, regulatory, and technology risks that can quickly disrupt reservations, customer service, fleet management, and vehicle sales. Because the business depends on a large vehicle fleet and sensitive customer data, cybersecurity incidents, system outages, regulatory changes, and weak residual values can all have outsized effects on earnings and cash flow.
- Cybersecurity incident or data breachImpact: HighLikelihood: Medium
Hertz collects and stores sensitive customer and payment data, making it vulnerable to unauthorized access and business interruption.
Exposure - IT system failure or delayed modernizationImpact: HighLikelihood: Medium
Legacy systems and upgrades can cause transaction failures, service disruptions, and higher operating costs.
Exposure - Residual value and depreciation riskImpact: High
Fleet economics depend on used-vehicle prices and expected hold periods, which affect depreciation and disposal gains/losses.
Exposure: Revenue-earning vehicles and used-car sales
- Regulatory and consumer-law changesImpact: Medium
Rental pricing, waivers, insurance add-ons, and advertising are heavily regulated across jurisdictions.
Exposure - Travel demand and macro disruptionImpact: Medium
Rental demand is tied to travel activity and can weaken during economic slowdowns, storms, epidemics, or unrest.
Exposure: Airport and leisure travel demand
Accounting
Judgemental itemsDepreciation is driven by expected residual values and disposal timing, which can materially affect operating profit.
Impact: Affects rental cost of sales and fleet economics
Public liability, property damage, and insurance supplement reserves are based on actuarial estimates and claim experience.
Impact: Can move operating expenses and balance sheet liabilities
Valuation depends on projected revenues, cash flows, discount rates, and growth assumptions.
Impact: Can create large non-cash charges if assumptions weaken
Cyber incidents, litigation, taxes, and operational disruptions require judgmental accruals.
Impact: Affects earnings volatility and liquidity assessment
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Last updated: 24/09/2026