2025 was a critical year in Hertz's transformation focused on structural improvements with North Star metrics of DPU under $300, RPU over $1,500, and low $30s DOE per transaction day. Early 2026 performance shows meaningful revenue improvement with February trending positively and the company expecting mid-single digit revenue growth for Q1. The company addressed EV fleet depreciation challenges in late 2023 and 2024 and is now positioned for normalized operations.
Cyborg Score Rationale
Hertz's commercial strategy continues to deliver sustained value in 2026 with January revenue showing meaningful year-over-year improvement. Both Hertz and Avis are expecting improved performance in 2026 in part due to fleet adjustments made. However, the U.S. rental car business faces uncertainty due to weakened inbound international demand, especially from Canada.
Top Insights
Residual values are improving from Q4's seasonal lows
Hertz lowered Five-Star status requirements to three rentals annually or $1,000 spending to enhance loyalty program accessibility
Fleet modernization continues with premium vehicles like the INEOS Grenadier being added to rental lineup
Company is focused on growing off-airport and mobility business while accelerating revenue growth with cost discipline
Named Competitors
Avis — Major competitor in car rental and mobility
Enterprise — Largest U.S. car rental company
Budget — Economy car rental brand
Thrifty — Value-focused rental brand owned by Hertz
Recent Developments
(March 2026) Addition of INEOS Grenadier to U.S. rental fleet