Avis Budget Group Q3 profit falls 49% to $183M
Americas vehicle utilization reached a third-quarter record of 74.1%, up 2.8 percentage points year over year.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Avis Budget Group, Inc. (CAR) reported third-quarter 2026 revenue of $3.436 billion, down 2% from $3.519 billion a year earlier. Net income attributable to Avis Budget Group was $183 million versus $359 million, down 49%, and Adjusted EBITDA was $513 million versus $559 million, down 8%. Consolidated net income was $199 million, compared with $360 million.
Total Company vehicle utilization was 74.0%, up 2.0 percentage points year over year; Americas utilization was 74.1%, up 2.8 percentage points and a third-quarter record. Total Company revenue per day, excluding exchange-rate effects, was $71.54, while monthly per-unit fleet costs on that basis were $316, up 4%. The company reported $866 million of liquidity and $2.5 billion of additional fleet funding capacity.
Avis Budget received $650 million in cash pursuant to a previously reported settlement with Pentwater Capital Management LP and certain affiliated persons; the amount will be recognized in Q4. It delivered a redemption notice to repay the remaining $350 million outstanding principal amount of its 5.750% Senior Notes due 2027 before year-end.
1 point · 0 major0 major · 2 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointAmericas utilization reached a third-quarter record of 74.1%, up 2.8 percentage points year over year.
Negative
- Moderate pointAdjusted EBITDA fell 8% year over year to $513 million.
- Moderate pointNet income attributable to Avis Budget Group fell 49% year over year to $183 million.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Revenue: $3.436 billion
Net income attributable to Avis Budget Group: $183 million
Adjusted EBITDA: $513 million
+5 more
8 metrics
Revenue
$3.436 billion
Three months ended September 30, 2026; down 2% from the prior-year quarter
Net income attributable to Avis Budget Group
$183 million
Third quarter 2026; down 49% year over year
Adjusted EBITDA
$513 million
Third quarter 2026; down 8% year over year
Total Company vehicle utilization
74.0%
Third quarter 2026; up 2.0 percentage points year over year
Liquidity
$866 million
At the end of the third quarter
Additional fleet funding capacity
$2.5 billion
Reported at the end of the third quarter
Settlement cash received
$650 million
To be recognized in Q4
Senior Notes outstanding principal to be repaid
$350 million
5.750% Senior Notes due 2027; redemption notice delivered
Key Terms
Adjusted EBITDA, Adjusted Free Cash Flow, Currency Exchange Rate Effects, Available Rental Days, +1 more
5 terms
Adjusted EBITDA financial
"Adjusted EBITDA is a non-GAAP measure most directly comparable to net income (loss)."
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Adjusted Free Cash Flow financial
"Represents net cash provided by operating activities adjusted to reflect the cash inflows and outflows"
Adjusted free cash flow is the amount of money a company generates from its operations after accounting for essential expenses and investments, like maintaining or upgrading equipment. It shows how much cash is truly available to grow the business, pay debts, or return to shareholders, helping investors see the company's financial health more clearly.
Currency Exchange Rate Effects financial
"Represents the difference between current-period results as reported"
Available Rental Days financial
"Defined as Average Rental Fleet times the number of days in a given period."
Vehicle Utilization financial
"Represents Rental Days divided by Available Rental Days."
Measure of how much and how efficiently a group of vehicles (a fleet) is used over a given period, often expressed as percent of time in service, miles or hours operated, or share of capacity carrying revenue-generating loads. It matters to investors because it shows asset productivity and influences revenue, operating costs, maintenance needs and capital requirements—similar to tracking how often a restaurant’s tables are occupied to judge business efficiency.
Earnings Snapshot
Revenue: $3.436 billion
Third quarter 2026
Revenue
$3.436 billion
down 2% year over year
Net income attributable to Avis Budget Group
$183 million
down 49% year over year
Adjusted EBITDA
$513 million
down 8% year over year
Total Company vehicle utilization
74.0%
up 2.0 percentage points year over year
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What cash settlement did CAR report?
Avis Budget said it received $650 million in cash pursuant to a previously reported settlement with Pentwater Capital Management LP and certain affiliated persons; the amount will be recognized in Q4.
Which debt is CAR planning to redeem?
Avis Budget delivered a redemption notice to repay the remaining $350 million outstanding principal amount of its 5.750% Senior Notes due 2027 before year-end.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_________________
FORM 8-K
_________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): November 3, 2026
_________________
(Exact Name of Registrant as Specified in its Charter)
_________________
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification Number) | ||||||
| (Address of Principal Executive Offices) | (Zip Code) | |||||||
Registrant’s telephone number, including area code: (973 ) 496-4700
N/A
(Former name or former address, if changed since last report.)
_________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On November 3, 2026, Avis Budget Group, Inc. (the “Company,” “we,” “our” or “us”) reported our third quarter 2026 results. Our third quarter 2026 results are discussed in detail in the press release attached hereto as Exhibit 99.1, which is incorporated herein by reference.
The information in this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or incorporated by reference into any other filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description | ||||
| 99.1 | Press Release dated November 3, 2026. | ||||
| 104 | Cover Page Interactive Data File (embedded within the inline XBRL document). | ||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| AVIS BUDGET GROUP, INC. | ||||||||
| By: | /s/ Tina Goldenberg | |||||||
Tina Goldenberg Vice President and Chief Accounting Officer | ||||||||
Date: November 3, 2026
Avis Budget Group Reports Third Quarter 2026 Results | ||
PARSIPPANY, N.J., November 3, 2026 - Avis Budget Group, Inc. (NASDAQ: CAR) announced financial results for the third quarter ended September 30, 2026 today. We ended the quarter with revenues of $3.4 billion, net income of $199 million, and an Adjusted EBITDA1 of $513 million.
“The third quarter demonstrated continued progress in how we manage our fleet, with third-quarter Americas utilization being the best we have had in twenty years despite a softer travel demand environment,” said Brian Choi, Avis Budget Group CEO. “We are building on the improvements we've made in fleet management and field operations with the objective of improving transaction economics, strengthening profitability, and delivering more consistent financial performance over time.”
Q3 OPERATIONAL HIGHLIGHTS AND RECENT DEVELOPMENTS
•Total Company Revenue per Day was $71.54, excluding exchange rate effects, a slight increase compared to the third quarter of 2025 and the third consecutive quarter of positive year-over-year growth.
•Total Company Vehicle Utilization was 74.0%, up 2 points year-over-year. Americas utilization was 74.1%, up 2.8 points, with both marking third quarter record highs.
•Total Company per-unit fleet costs were $316 per month, excluding exchange rate effects, an increase of 4% compared to the third quarter of 2025 but within our expectations.
•Our liquidity position at the end of the quarter was $866 million, with an additional $2.5 billion of fleet funding capacity.
•On October 5th, we received $650 million in cash pursuant to the previously reported settlement with Pentwater Capital Management LP and certain affiliated persons, which will be recognized in Q4.
•On November 2nd, we delivered a redemption notice to repay the remaining $350 million outstanding principal amount of our 5.750% Senior Notes due 2027 prior to year end.
SUPPLEMENTAL FINANCIALS
Investors may access our third quarter 2026 supplemental financials on our investor relations website at ir.avisbudgetgroup.com.
| _________________________ | ||||||||
1Adjusted EBITDA and certain other measures in this release are non-GAAP financial measures. See "Non-GAAP Financial Measures and Key Metrics" and the tables that accompany this release for the definitions and reconciliations of these non-GAAP measures to the most comparable GAAP measures. | ||||||||
INVESTOR CONFERENCE CALL
We will host a conference call to discuss our third quarter results on November 4, 2026, at 8:30 a.m. (ET). Investors may access the call on our investor relations website at ir.avisbudgetgroup.com or by dialing (877) 407-2991. A replay of the call will be available on our website and at (877) 660-6853 using conference code 13763238.
ABOUT AVIS BUDGET GROUP
We are a leading global provider of mobility solutions through our three most recognized brands, Avis, Budget and Zipcar, as well as several other brands, well recognized in their respective markets. We license the use of the Avis, Budget, Zipcar and other brands’ trademarks to licensees in areas in which we do not operate directly. We and our licensees operate our brands in approximately 180 countries throughout the world. Our brands and mobility solutions have an extended global reach with approximately 10,000 rental locations throughout the world. We operate most of our car rental locations in North America, Europe and Australasia. We are headquartered in Parsippany, N.J. More information is available at avisbudgetgroup.com.
NON-GAAP FINANCIAL MEASURES AND KEY METRICS
This release includes financial measures such as Adjusted EBITDA and Adjusted Free Cash Flow, as well as other financial measures, that are not considered generally accepted accounting principle (“GAAP”) measures as defined under SEC rules. Important information regarding such non-GAAP measures is contained in the tables within this release and in Appendix I, including the definitions of these measures and reconciliations to the most comparable U.S. GAAP measures.
We measure performance principally using the following key metrics: (i) rental days, (ii) revenue per day, (iii) vehicle utilization, and (iv) per-unit fleet costs. Our rental days, revenue per day and vehicle utilization metrics are all calculated based on the actual rental of the vehicle during a 24-hour period. We believe that this methodology provides management with the most relevant metrics in order to effectively manage the performance of our business. Our calculations may not be comparable to the calculations of similarly-titled metrics by other companies. We present currency exchange rate effects on our key metrics to provide a method of assessing how our business performed excluding the effects of foreign currency rate fluctuations. Currency exchange rate effects are calculated by translating the current-period's results at the prior-period average exchange rates plus any related gains and losses on currency hedges.
2
FORWARD-LOOKING STATEMENTS
Certain statements in this press release constitute “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995. The forward-looking statements contained herein are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause our actual results, performance or achievements to be materially different from those expressed or implied by any such forward-looking statements. Forward-looking statements include information concerning our future financial performance, business strategy, projected plans and objectives. These statements may be identified by the fact that they do not relate to historical or current facts and may use words such as “believes,” “expects,” “anticipates,” “will,” “should,” “could,” “may,” “would,” “intends,” “projects,” “estimates,” “plans,” “forecasts,” “guidance,” and similar words, expressions or phrases. The following important factors and assumptions could affect our future results and could cause actual results to differ materially from those expressed in such forward-looking statements. These factors include, but are not limited to:
•the high level of competition in the mobility industry, including from new companies or technology, and the impact such competition may have on pricing and rental volume;
•a change in our fleet costs, including as a result of a change in the cost of new vehicles, resulting from inflation, trade disputes, tariffs or otherwise, manufacturer recalls, disruption in the supply of new vehicles, including due to labor actions, trade disputes, tariffs or otherwise, shortages in semiconductors and/or other parts used in new vehicle production, and/or a change in the price at which we dispose of used vehicles either in the used vehicle market or under repurchase or guaranteed depreciation programs;
•the results of operations or financial condition of the manufacturers of our vehicles, which could impact their ability to perform their payment obligations under our agreements with them, including repurchase and/or guaranteed depreciation arrangements, and/or their willingness or ability to make vehicles available to us or the mobility industry as a whole on commercially reasonable terms or at all;
•levels of and volatility in travel demand, including volatility in airline passenger traffic;
•a deterioration or fluctuation in economic conditions, resulting in a recession, decreased levels of discretionary consumer spending for travel, or otherwise, particularly during our peak season or in key market segments;
•an occurrence or threat of terrorism, pandemics, severe weather events or natural disasters, military conflicts, including the ongoing military conflicts in the Middle East and Eastern Europe, or civil unrest in the locations in which we operate, trade disputes and tariffs, and the potential effects of sanctions on the world economy and markets and/or international trade;
•any substantial changes in the cost or supply of fuel, vehicle parts, energy, labor or other resources on which we depend to operate our business, including as a result of pandemics, inflation, tariffs, government shutdowns, the ongoing military conflicts in the Middle East and Eastern Europe, and any embargoes on oil sales imposed on or by the Russian government;
•our ability to successfully implement or achieve our business plans and strategies, achieve and maintain cost savings and adapt our business to changes in mobility, and successfully implement digital transformation initiatives;
•political, economic, or commercial instability and/or political, regulatory, or legal changes in the countries in which we operate, and our ability to conform to multiple and conflicting laws or regulations in those countries;
•the performance of the used vehicle market from time to time, including our ability to dispose of vehicles in the used vehicle market on attractive terms;
•our dependence on third-party distribution channels, third-party suppliers of other services and co-marketing arrangements with third parties;
3
•risks related to completed or future acquisitions or investments that we may pursue, including the incurrence of incremental indebtedness to help fund such transactions and our ability to promptly and effectively integrate any acquired businesses or capitalize on joint ventures, partnerships and other investments;
•our ability to utilize derivative instruments, and the impact of derivative instruments we utilize, which can be affected by fluctuations in interest rates, fuel prices and exchange rates, changes in government regulations and other factors;
•our exposure to uninsured or unpaid claims in excess of historical levels or changes in the number of incidents or cost per incident, and our ability to obtain insurance at desired levels and the cost of that insurance;
•risks associated with litigation or governmental or regulatory inquiries or any failure or inability to comply with laws, regulations or contractual obligations or any changes in laws, regulations or contractual obligations, including with respect to personally identifiable information and consumer privacy, labor and employment, and tax;
•risks related to protecting the integrity of, and preventing unauthorized access to, our information technology systems or those of our third-party vendors, licensees, dealers, independent operators and independent contractors, and protecting the confidential information of our employees and customers against security breaches, including physical or cybersecurity breaches, attacks, or other disruptions, compliance with privacy and data protection regulation, and the effects of any potential increase in cyberattacks on the world economy and markets and/or international trade;
•any impact on us from the actions of our third-party vendors, licensees, dealers, independent operators and independent contractors and/or disputes that may arise out of our agreements with such parties;
•any major disruptions in our communication networks or information systems;
•risks related to tax obligations and the effect of future changes in tax laws, including the expiration of tax credits, and accounting standards;
•risks related to our indebtedness, including our substantial outstanding debt obligations, recent and future interest rate increases, which increase our financing costs, downgrades by rating agencies and our ability to incur substantially more debt;
•our ability to obtain financing for our global operations, including the funding of our vehicle fleet through the issuance of asset-backed securities and use of the global lending markets;
•our ability to meet the financial and other covenants contained in the agreements governing our indebtedness, or to obtain a waiver or amendment of such covenants should we be unable to meet such covenants;
•significant changes in the timing of our fleet rotation, carrying value of goodwill, or long-lived assets, including when there are events or changes in circumstances that indicate the carrying value may exceed the current fair value, which have in the past resulted in and in the future could result in a significant impairment charge; and
•other business, economic, competitive, governmental, regulatory, political or technological factors affecting our operations, pricing or services.
4
We operate in a continuously changing business environment and new risk factors emerge from time to time. New risk factors, factors beyond our control, or changes in the impact of identified risk factors may cause actual results to differ materially from those set forth in any forward-looking statements. Accordingly, forward-looking statements should not be relied upon as a prediction of actual results. Moreover, we do not assume responsibility if future results are materially different from those forecasted or anticipated. Other factors and assumptions not identified above, including those discussed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” set forth in Part II, Item 7, in "Risk Factors," set forth in Part I, Item 1A, and in other portions of our 2025 Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on February 19, 2026 (the “2025 Form 10-K”), as well as in similarly titled sections set forth in Part I, Item 2 and Part II, Item 1A of our subsequently filed quarterly reports, may contain forward-looking statements and involve uncertainties that could cause actual results to differ materially from those projected in any forward-looking statements.
Although we believe that our assumptions are reasonable, any or all of our forward-looking statements may prove to be inaccurate and we can make no guarantees about our future performance. Should unknown risks or uncertainties materialize or underlying assumptions prove inaccurate, actual results could differ materially from past results and/or those anticipated, estimated or projected. We undertake no obligation to release any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events. For any forward-looking statements contained in any document, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. For additional information concerning forward-looking statements and other important factors, refer to our 2025 Form 10-K, Quarterly Reports on Form 10-Q and other filings with the SEC.
| Investor Relations Contact: | Media Relations Contact: | ||||
| David Calabria, IR@avisbudget.com | Media Relations Team, ABGPress@coynepr.com | ||||
| *** Tables 1 - 6 and Appendix I attached *** | |||||
5
Table 1
Avis Budget Group, Inc.
SUMMARY DATA SHEET (Unaudited)
(In millions)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
| 2026 | 2025 | % Change | 2026 | 2025 | % Change | ||||||||||||||||||||||||||||||
| Income Statement and Other Items | |||||||||||||||||||||||||||||||||||
| Revenues | $ | 3,436 | $ | 3,519 | (2) | % | $ | 8,964 | $ | 8,988 | — | % | |||||||||||||||||||||||
| Income (loss) before income taxes | 309 | 473 | (35) | % | 42 | (189) | n/m | ||||||||||||||||||||||||||||
| Net income (loss) attributable to Avis Budget Group, Inc. | 183 | 359 | (49) | % | (65) | (142) | 54 | % | |||||||||||||||||||||||||||
Adjusted EBITDA (a) | 513 | 559 | (8) | % | 686 | 743 | (8) | % | |||||||||||||||||||||||||||
| As of | |||||||||||||||||||||||||||||||||||
| September | December | ||||||||||||||||||||||||||||||||||
| 30, | 31, | ||||||||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||||||||
| Balance Sheet Items | |||||||||||||||||||||||||||||||||||
| Cash and cash equivalents | $ | 561 | $ | 519 | |||||||||||||||||||||||||||||||
| Program cash and restricted cash | 86 | 99 | |||||||||||||||||||||||||||||||||
| Vehicles, net | 18,325 | 18,720 | |||||||||||||||||||||||||||||||||
Debt under vehicle programs (b) | 18,920 | 19,188 | |||||||||||||||||||||||||||||||||
| Corporate debt | 6,011 | 6,073 | |||||||||||||||||||||||||||||||||
| Stockholders' equity attributable to Avis Budget Group, Inc. | (3,210) | (3,129) | |||||||||||||||||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
| 2026 | 2025 | % Change | 2026 | 2025 | % Change | ||||||||||||||||||||||||||||||
| Segment Results | |||||||||||||||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||||||||||||||
| Americas | $ | 2,552 | $ | 2,621 | (3) | % | $ | 6,802 | $ | 6,860 | (1) | % | |||||||||||||||||||||||
| International | 884 | 898 | (2) | % | 2,162 | 2,128 | 2 | % | |||||||||||||||||||||||||||
| Total Company | $ | 3,436 | $ | 3,519 | (2) | % | $ | 8,964 | $ | 8,988 | — | % | |||||||||||||||||||||||
Adjusted EBITDA (a) | |||||||||||||||||||||||||||||||||||
| Americas | $ | 365 | $ | 398 | (8) | % | $ | 522 | $ | 551 | (5) | % | |||||||||||||||||||||||
| International | 180 | 190 | (5) | % | 240 | 269 | (11) | % | |||||||||||||||||||||||||||
Corporate and other (c) | (32) | (29) | (10) | % | (76) | (77) | 1 | % | |||||||||||||||||||||||||||
| Total Company | $ | 513 | $ | 559 | (8) | % | $ | 686 | $ | 743 | (8) | % | |||||||||||||||||||||||
__________
n/m Not meaningful.
(a)Refer to Table 5 for the reconciliation of net income (loss) to Adjusted EBITDA and Appendix I for the related definition of the non-GAAP financial measure.
(b)Includes $740 million and $826 million of Class R notes due to Avis Budget Rental Car Funding (AESOP) LLC as of September 30, 2026 and December 31, 2025, respectively, which are held by us.
(c)Includes unallocated corporate expenses which are not attributable to a particular segment.
Table 2
Avis Budget Group, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In millions, except per share data)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Revenues | $ | 3,436 | $ | 3,519 | $ | 8,964 | $ | 8,988 | |||||||||||||||
| Expenses | |||||||||||||||||||||||
| Operating | 1,621 | 1,513 | 4,569 | 4,392 | |||||||||||||||||||
| Vehicle depreciation and lease charges, net | 668 | 678 | 1,915 | 2,369 | |||||||||||||||||||
| Selling, general and administrative | 398 | 422 | 1,124 | 1,126 | |||||||||||||||||||
| Vehicle interest, net | 247 | 248 | 708 | 687 | |||||||||||||||||||
| Non-vehicle related depreciation and amortization | 69 | 58 | 187 | 174 | |||||||||||||||||||
| Interest expense related to corporate debt, net: | |||||||||||||||||||||||
| Interest expense | 108 | 109 | 325 | 316 | |||||||||||||||||||
| Early extinguishment of debt | — | 3 | 3 | 6 | |||||||||||||||||||
| Restructuring and other related charges | 5 | 13 | 58 | 94 | |||||||||||||||||||
| Transaction-related costs, net | 2 | — | 17 | — | |||||||||||||||||||
| Other (income) expense, net | 9 | 2 | 16 | 13 | |||||||||||||||||||
| Total expenses | 3,127 | 3,046 | 8,922 | 9,177 | |||||||||||||||||||
| Income (loss) before income taxes | 309 | 473 | 42 | (189) | |||||||||||||||||||
| Provision for (benefit from) income taxes | 110 | 113 | 14 | (50) | |||||||||||||||||||
| Net income (loss) | 199 | 360 | 28 | (139) | |||||||||||||||||||
| Less: Net income attributable to non-controlling interests | 16 | 1 | 93 | 3 | |||||||||||||||||||
| Net income (loss) attributable to Avis Budget Group, Inc. | $ | 183 | $ | 359 | $ | (65) | $ | (142) | |||||||||||||||
| Earnings (loss) per share | |||||||||||||||||||||||
| Basic | $ | 5.19 | $ | 10.22 | $ | (1.83) | $ | (4.02) | |||||||||||||||
| Diluted | $ | 5.15 | $ | 10.11 | $ | (1.83) | $ | (4.02) | |||||||||||||||
| Weighted average shares outstanding | |||||||||||||||||||||||
| Basic | 35.3 | 35.2 | 35.3 | 35.2 | |||||||||||||||||||
| Diluted | 35.6 | 35.5 | 35.3 | 35.2 | |||||||||||||||||||
Table 3
Avis Budget Group, Inc.
KEY METRICS SUMMARY (Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
| 2026 | 2025 | % Change | 2026 | 2025 | % Change | ||||||||||||||||||||||||||||||
| Americas | |||||||||||||||||||||||||||||||||||
| Rental Days (000’s) | 34,822 | 35,811 | (3) | % | 96,872 | 98,550 | (2) | % | |||||||||||||||||||||||||||
| Revenue per Day | $ | 73.30 | $ | 73.19 | — | % | $ | 70.22 | $ | 69.61 | 1 | % | |||||||||||||||||||||||
| Revenue per Day, excluding exchange rate effects | $ | 73.38 | $ | 73.19 | — | % | $ | 70.23 | $ | 69.61 | 1 | % | |||||||||||||||||||||||
| Average Rental Fleet | 510,817 | 546,293 | (6) | % | 489,142 | 511,261 | (4) | % | |||||||||||||||||||||||||||
| Vehicle Utilization | 74.1 | % | 71.3 | % | 2.8 pps | 72.5 | % | 70.6 | % | 1.9 pps | |||||||||||||||||||||||||
Per-Unit Fleet Costs per Month (a) | $ | 330 | $ | 309 | 7 | % | $ | 336 | $ | 331 | 2 | % | |||||||||||||||||||||||
Per-Unit Fleet Costs per Month, excluding exchange rate effects (a) | $ | 330 | $ | 309 | 7 | % | $ | 336 | $ | 331 | 2 | % | |||||||||||||||||||||||
| International | |||||||||||||||||||||||||||||||||||
| Rental Days (000’s) | 13,290 | 13,589 | (2) | % | 34,225 | 35,250 | (3) | % | |||||||||||||||||||||||||||
| Revenue per Day | $ | 66.49 | $ | 66.03 | 1 | % | $ | 63.16 | $ | 60.36 | 5 | % | |||||||||||||||||||||||
| Revenue per Day, excluding exchange rate effects | $ | 66.71 | $ | 66.03 | 1 | % | $ | 61.24 | $ | 60.36 | 1 | % | |||||||||||||||||||||||
| Average Rental Fleet | 195,900 | 199,868 | (2) | % | 174,532 | 180,796 | (3) | % | |||||||||||||||||||||||||||
| Vehicle Utilization | 73.7 | % | 73.9 | % | (0.2) pps | 71.8 | % | 71.4 | % | 0.4 pps | |||||||||||||||||||||||||
| Per-Unit Fleet Costs per Month | $ | 277 | $ | 285 | (3) | % | $ | 276 | $ | 279 | (1) | % | |||||||||||||||||||||||
| Per-Unit Fleet Costs per Month, excluding exchange rate effects | $ | 279 | $ | 285 | (2) | % | $ | 267 | $ | 279 | (4) | % | |||||||||||||||||||||||
| Total | |||||||||||||||||||||||||||||||||||
| Rental Days (000’s) | 48,112 | 49,400 | (3) | % | 131,097 | 133,800 | (2) | % | |||||||||||||||||||||||||||
| Revenue per Day | $ | 71.42 | $ | 71.22 | — | % | $ | 68.38 | $ | 67.17 | 2 | % | |||||||||||||||||||||||
| Revenue per Day, excluding exchange rate effects | $ | 71.54 | $ | 71.22 | — | % | $ | 67.88 | $ | 67.17 | 1 | % | |||||||||||||||||||||||
| Average Rental Fleet | 706,717 | 746,161 | (5) | % | 663,674 | 692,057 | (4) | % | |||||||||||||||||||||||||||
| Vehicle Utilization | 74.0 | % | 72.0 | % | 2.0 pps | 72.4 | % | 70.8 | % | 1.6 pps | |||||||||||||||||||||||||
Per-Unit Fleet Costs per Month (a) | $ | 315 | $ | 303 | 4 | % | $ | 321 | $ | 318 | 1 | % | |||||||||||||||||||||||
Per-Unit Fleet Costs per Month, excluding exchange rate effects (a) | $ | 316 | $ | 303 | 4 | % | $ | 318 | $ | 318 | — | % | |||||||||||||||||||||||
__________
Refer to Table 6 for key metrics calculations and Appendix I for key metrics definitions.
(a)For the nine months ended September 30, 2025, per-unit fleet costs excludes costs reported within vehicle depreciation and lease charges, net related to the disposal of certain fleet in our Americas reportable segment.
Table 4
Avis Budget Group, Inc.
CONDENSED CONSOLIDATED SCHEDULE OF CASH FLOWS AND ADJUSTED FREE CASH FLOW (Unaudited)
(In millions)
| CONDENSED CONSOLIDATED SCHEDULE OF CASH FLOWS | Nine Months Ended September 30, 2026 | ||||
| Operating Activities | |||||
| Net cash provided by operating activities | $ | 2,259 | |||
| Investing Activities | |||||
| Net cash used in investing activities exclusive of vehicle programs | (196) | ||||
| Net cash used in investing activities of vehicle programs | (1,683) | ||||
| Net cash used in investing activities | (1,879) | ||||
| Financing Activities | |||||
| Net cash used in financing activities exclusive of vehicle programs | (40) | ||||
| Net cash used in financing activities of vehicle programs | (297) | ||||
| Net cash used in financing activities | (337) | ||||
| Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash | (14) | ||||
| Net change in cash and cash equivalents, program and restricted cash | 29 | ||||
| Cash and cash equivalents, program and restricted cash, beginning of period | 618 | ||||
| Cash and cash equivalents, program and restricted cash, end of period | $ | 647 | |||
ADJUSTED FREE CASH FLOW (a) | Nine Months Ended September 30, 2026 | ||||
Adjusted EBITDA (b) | $ | 686 | |||
| Interest expense related to corporate debt, net (excluding early extinguishment of debt) | (325) | ||||
| Working capital and other | 65 | ||||
Capital expenditures (c) | (172) | ||||
| Tax payments, net of refunds | (100) | ||||
Vehicle programs and related (d) | 44 | ||||
Adjusted Free Cash Flow (b) | $ | 198 | |||
Acquisition and related payments, net of acquired cash (e) | (37) | ||||
| Borrowings, net of debt repayments | (18) | ||||
| Repurchases of common stock | (9) | ||||
| Change in program and restricted cash | (9) | ||||
| Other receipts (payments), net | (60) | ||||
| Foreign exchange effects, financing costs and other | (36) | ||||
| Net change in cash and cash equivalents, program and restricted cash (per above) | $ | 29 | |||
__________
Refer to Appendix I for the definitions of non-GAAP financial measures Adjusted EBITDA and Adjusted Free Cash Flow.
(a)This presentation demonstrates the relationship between Adjusted EBITDA and Adjusted Free Cash Flow. We believe it is useful to understand this relationship because it demonstrates how cash generated by our operations is used. This presentation is not intended to be reconciliations of these non-GAAP measures, which are provided on Table 5.
(b)Refer to Table 5 for the reconciliations of net income (loss) to Adjusted EBITDA and net cash provided by operating activities to Adjusted Free Cash Flow.
(c)Includes $7 million of cloud computing implementation costs.
(d)Includes vehicle-backed borrowings (repayments) that are incremental to amounts required to fund vehicle and vehicle-related assets.
(e)Excludes $1 million in acquired fleet as part of a licensee acquisition.
Table 5
Avis Budget Group, Inc.
RECONCILIATION OF NON-GAAP MEASURES (Unaudited)
(In millions)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
Reconciliation of net income (loss) to Adjusted EBITDA: | |||||||||||||||||||||||
| Net income (loss) | $ | 199 | $ | 360 | $ | 28 | $ | (139) | |||||||||||||||
| Provision for (benefit from) income taxes | 110 | 113 | 14 | (50) | |||||||||||||||||||
| Income (loss) before income taxes | 309 | 473 | 42 | (189) | |||||||||||||||||||
| Non-vehicle related depreciation and amortization | 69 | 58 | 187 | 174 | |||||||||||||||||||
| Interest expense related to corporate debt, net: | |||||||||||||||||||||||
| Interest expense | 108 | 109 | 325 | 316 | |||||||||||||||||||
| Early extinguishment of debt | — | 3 | 3 | 6 | |||||||||||||||||||
Other fleet charges (a) | — | — | — | 390 | |||||||||||||||||||
| Restructuring and other related charges | 5 | 13 | 58 | 94 | |||||||||||||||||||
| Transaction-related costs, net | 2 | — | 17 | — | |||||||||||||||||||
| Other (income) expense, net | 9 | 2 | 16 | 13 | |||||||||||||||||||
Legal matters, net (b) | 1 | (109) | 5 | (96) | |||||||||||||||||||
Cloud computing costs (c) | 10 | 12 | 33 | 37 | |||||||||||||||||||
Severe weather-related damages, net (c) | — | (2) | — | (2) | |||||||||||||||||||
Adjusted EBITDA (d) | $ | 513 | $ | 559 | $ | 686 | $ | 743 | |||||||||||||||
Reconciliation of net cash provided by operating activities to Adjusted Free Cash Flow: | ||||||||
| Net cash provided by operating activities | $ | 2,259 | ||||||
| Net cash used in investing activities of vehicle programs | (1,683) | |||||||
| Net cash used in financing activities of vehicle programs | (297) | |||||||
| Capital expenditures | (165) | |||||||
| Proceeds received on asset sales | 3 | |||||||
| Change in program and restricted cash | 9 | |||||||
| Distributions to non-controlling interests | (2) | |||||||
| Dividends from equity method investments | 14 | |||||||
| Other receipts (payments), net | 60 | |||||||
| Adjusted Free Cash Flow | $ | 198 | ||||||
__________
Refer to Appendix I for the definitions of Adjusted EBITDA and Adjusted Free Cash Flow, non-GAAP financial measures.
(a)Costs reported within vehicle depreciation and lease charges, net related to the disposal of certain fleet in our Americas reportable segment.
(b)Consists of $1 million of expense and $109 million of income reported within operating expenses for the three months ended September 30, 2026 and 2025, respectively. Consists of $3 million and $2 million reported within selling, general and administrative expenses for the nine months ended September 30, 2026 and 2025, respectively, and $2 million of expense and $98 million of income reported within operating expenses for the nine months ended September 30, 2026 and 2025, respectively.
(c)Reported within operating expenses.
(d)Includes stock-based compensation expense and vehicle related deferred financing fee amortization in the aggregate totaling $13 million and $12 million in the three months ended September 30, 2026 and 2025, respectively. Includes stock-based compensation expense and vehicle related deferred financing fee amortization in the aggregate totaling $37 million and $42 million in the nine months ended September 30, 2026 and 2025, respectively.
Table 6
Avis Budget Group, Inc.
KEY METRICS CALCULATIONS (Unaudited)
($ in millions, except as noted)
| Three Months Ended September 30, 2026 | Three Months Ended September 30, 2025 | ||||||||||||||||||||||||||||||||||
| Americas | International | Total | Americas | International | Total | ||||||||||||||||||||||||||||||
| Revenue per Day (RPD) | |||||||||||||||||||||||||||||||||||
| Revenue | $ | 2,552 | $ | 884 | $ | 3,436 | $ | 2,621 | $ | 898 | $ | 3,519 | |||||||||||||||||||||||
| Currency exchange rate effects | 3 | 3 | 6 | — | — | — | |||||||||||||||||||||||||||||
Revenue excluding exchange rate effects | $ | 2,555 | $ | 887 | $ | 3,442 | $ | 2,621 | $ | 898 | $ | 3,519 | |||||||||||||||||||||||
| Rental days (000's) | 34,822 | 13,290 | 48,112 | 35,811 | 13,589 | 49,400 | |||||||||||||||||||||||||||||
| RPD excluding exchange rate effects (in $'s) | $ | 73.38 | $ | 66.71 | $ | 71.54 | $ | 73.19 | $ | 66.03 | $ | 71.22 | |||||||||||||||||||||||
| Vehicle Utilization | |||||||||||||||||||||||||||||||||||
| Rental days (000's) | 34,822 | 13,290 | 48,112 | 35,811 | 13,589 | 49,400 | |||||||||||||||||||||||||||||
| Average rental fleet | 510,817 | 195,900 | 706,717 | 546,293 | 199,868 | 746,161 | |||||||||||||||||||||||||||||
| Number of days in period | 92 | 92 | 92 | 92 | 92 | 92 | |||||||||||||||||||||||||||||
| Available rental days (000's) | 46,995 | 18,023 | 65,018 | 50,259 | 18,388 | 68,647 | |||||||||||||||||||||||||||||
| Vehicle utilization | 74.1 | % | 73.7 | % | 74.0 | % | 71.3 | % | 73.9 | % | 72.0 | % | |||||||||||||||||||||||
| Per-Unit Fleet Costs | |||||||||||||||||||||||||||||||||||
Vehicle depreciation and lease charges, net | $ | 506 | $ | 162 | $ | 668 | $ | 508 | $ | 170 | $ | 678 | |||||||||||||||||||||||
| Currency exchange rate effects | 1 | 1 | 2 | — | — | — | |||||||||||||||||||||||||||||
| Vehicle depreciation excluding exchange rate effects | $ | 507 | $ | 163 | $ | 670 | $ | 508 | $ | 170 | $ | 678 | |||||||||||||||||||||||
| Average rental fleet | 510,817 | 195,900 | 706,717 | 546,293 | 199,868 | 746,161 | |||||||||||||||||||||||||||||
| Per-unit fleet costs (in $'s) | $ | 991 | $ | 836 | $ | 948 | $ | 928 | $ | 854 | $ | 908 | |||||||||||||||||||||||
| Number of months in period | 3 | 3 | 3 | 3 | 3 | 3 | |||||||||||||||||||||||||||||
Per-unit fleet costs per month excluding exchange rate effects (in $'s) | $ | 330 | $ | 279 | $ | 316 | $ | 309 | $ | 285 | $ | 303 | |||||||||||||||||||||||
| Nine Months Ended September 30, 2026 | Nine Months Ended September 30, 2025 | ||||||||||||||||||||||||||||||||||
| Americas | International | Total | Americas | International | Total | ||||||||||||||||||||||||||||||
| Revenue per Day (RPD) | |||||||||||||||||||||||||||||||||||
| Revenue | $ | 6,802 | $ | 2,162 | $ | 8,964 | $ | 6,860 | $ | 2,128 | $ | 8,988 | |||||||||||||||||||||||
| Currency exchange rate effects | 1 | (66) | (65) | — | — | — | |||||||||||||||||||||||||||||
Revenue excluding exchange rate effects | $ | 6,803 | $ | 2,096 | $ | 8,899 | $ | 6,860 | $ | 2,128 | $ | 8,988 | |||||||||||||||||||||||
| Rental days (000's) | 96,872 | 34,225 | 131,097 | 98,550 | 35,250 | 133,800 | |||||||||||||||||||||||||||||
| RPD excluding exchange rate effects (in $'s) | $ | 70.23 | $ | 61.24 | $ | 67.88 | $ | 69.61 | $ | 60.36 | $ | 67.17 | |||||||||||||||||||||||
| Vehicle Utilization | |||||||||||||||||||||||||||||||||||
| Rental days (000's) | 96,872 | 34,225 | 131,097 | 98,550 | 35,250 | 133,800 | |||||||||||||||||||||||||||||
| Average rental fleet | 489,142 | 174,532 | 663,674 | 511,261 | 180,796 | 692,057 | |||||||||||||||||||||||||||||
| Number of days in period | 273 | 273 | 273 | 273 | 273 | 273 | |||||||||||||||||||||||||||||
| Available rental days (000's) | 133,536 | 47,647 | 181,183 | 139,574 | 49,357 | 188,931 | |||||||||||||||||||||||||||||
| Vehicle utilization | 72.5 | % | 71.8 | % | 72.4 | % | 70.6 | % | 71.4 | % | 70.8 | % | |||||||||||||||||||||||
Per-Unit Fleet Costs (a) | |||||||||||||||||||||||||||||||||||
Vehicle depreciation and lease charges, net | $ | 1,481 | $ | 434 | $ | 1,915 | $ | 1,525 | $ | 454 | $ | 1,979 | |||||||||||||||||||||||
| Currency exchange rate effects | — | (14) | (14) | — | — | — | |||||||||||||||||||||||||||||
| Vehicle depreciation excluding exchange rate effects | $ | 1,481 | $ | 420 | $ | 1,901 | $ | 1,525 | $ | 454 | $ | 1,979 | |||||||||||||||||||||||
| Average rental fleet | 489,142 | 174,532 | 663,674 | 511,261 | 180,796 | 692,057 | |||||||||||||||||||||||||||||
| Per-unit fleet costs (in $'s) | $ | 3,027 | $ | 2,407 | $ | 2,864 | $ | 2,982 | $ | 2,512 | $ | 2,859 | |||||||||||||||||||||||
| Number of months in period | 9 | 9 | 9 | 9 | 9 | 9 | |||||||||||||||||||||||||||||
Per-unit fleet costs per month excluding exchange rate effects (in $'s) | $ | 336 | $ | 267 | $ | 318 | $ | 331 | $ | 279 | $ | 318 | |||||||||||||||||||||||
__________
Our calculation of rental days and revenue per day may not be comparable to the calculation of similarly-titled metrics by other companies. Currency exchange rate effects are calculated by translating the current-period's results at the prior-period average exchange rates plus any related gains and losses on currency hedges.
(a)For the nine months ended September 30, 2025, per-unit fleet costs excludes costs reported within vehicle depreciation and lease charges, net related to the disposal of certain fleet in our Americas reportable segment.
Appendix I
Avis Budget Group, Inc.
DEFINITIONS OF NON-GAAP MEASURES AND KEY METRICS
Adjusted EBITDA
The accompanying press release presents Adjusted EBITDA, which is a non-GAAP measure most directly comparable to net income (loss). Adjusted EBITDA is defined as income (loss) from continuing operations before non-vehicle related depreciation and amortization; long-lived asset impairment and other related charges; other fleet charges; restructuring and other related charges; early extinguishment of debt costs; non-vehicle related interest; transaction-related costs, net; legal matters, net, which primarily includes amounts recorded in excess of $5 million, related to unprecedented self-insurance reserves for allocated loss adjustment expense, class action lawsuits and personal injury matters; non-operational charges related to shareholder activist activity, which includes third-party advisory, legal and other professional fees; COVID-19 charges, net; cloud computing costs; other (income) expense, net; severe weather-related damages in excess of $5 million, net of insurance proceeds; and income taxes.
We believe Adjusted EBITDA is useful as a supplemental measure in evaluating the performance of our operating businesses and in comparing our results from period to period. We also believe that Adjusted EBITDA is useful to investors because it allows them to assess our results of operations and financial condition on the same basis that management uses internally. Adjusted EBITDA is a non-GAAP measure and should not be considered in isolation or as a substitute for net income or other income statement data prepared in accordance with U.S. GAAP. Our presentation of Adjusted EBITDA may not be comparable to similarly-titled measures used by other companies. A reconciliation of Adjusted EBITDA from net income (loss) recognized under U.S. GAAP is provided on Table 5.
Adjusted Free Cash Flow
Represents net cash provided by operating activities adjusted to reflect the cash inflows and outflows relating to capital expenditures, the investing and financing activities of our vehicle programs, asset sales, if any, and to exclude restructuring and other related charges; early extinguishment of debt costs; transaction-related costs; legal matters; non-operational charges related to shareholder activist activity; COVID-19 charges; other (income) expense; and severe weather-related damages.
We believe that Adjusted Free Cash Flow is useful in measuring the cash generated that is available to be used to repay debt obligations, repurchase stock, pay dividends and invest in future growth through new business development activities or acquisitions. Adjusted Free Cash Flow should not be construed as a substitute in measuring operating results or liquidity, and our presentation of Adjusted Free Cash Flow may not be comparable to similarly-titled measures used by other companies. A reconciliation of Adjusted Free Cash Flow from net cash provided by operating activities recognized under U.S. GAAP is provided on Table 5.
Adjusted EBITDA Margin
Represents Adjusted EBITDA as a percentage of revenues.
Available Rental Days
Defined as Average Rental Fleet times the number of days in a given period.
Average Rental Fleet
Represents the average number of vehicles in our fleet during a given period of time.
Currency Exchange Rate Effects
Represents the difference between current-period results as reported and current-period results translated at the prior-period average exchange rates plus any related gains and losses on currency hedges.
Gross Adjusted EBITDA
Represents Adjusted EBITDA with the add-back of vehicle depreciation excluding other fleet charges and vehicle interest.
Net Corporate Debt
Represents corporate debt minus cash and cash equivalents.
Net Corporate Leverage
Represents Net Corporate Debt divided by Adjusted EBITDA for the twelve months prior to the date of calculation.
Total Net Debt Ratio
Represents total debt less cash and cash equivalents divided by Gross Adjusted EBITDA for the twelve months prior to the date of calculation.
Per-Unit Fleet Costs
Represents vehicle depreciation, lease charges and gain or loss on vehicles sales, divided by Average Rental Fleet.
Rental Days
Represents the total number of days (or portion thereof) a vehicle was rented during a 24-hour period.
Revenue per Day
Represents revenues divided by Rental Days.
Vehicle Utilization
Represents Rental Days divided by Available Rental Days.