Hertz(HTZ) - 2025 Q1 - Quarterly Report

Financial Performance - Total revenues for the three months ended March 31, 2025, were $1,813 million, a decrease of 12.8$2,080 million in the same period of 2024[17]. - Net loss for the first quarter of 2025 was $443 million, compared to a net loss of$186 million in the first quarter of 2024, reflecting a significant increase in losses[20]. - The company reported a total comprehensive loss of $428 million for the three months ended March 31, 2025, compared to a total comprehensive loss of$226 million in the same period of 2024[20]. - Net income for Q1 2025 was a loss of $443 million, compared to a loss of$186 million in Q1 2024, indicating a significant decline in profitability[25]. - Adjusted EBITDA for Hertz Global was $(325) million for Q1 2025, compared to$(567) million in Q1 2024, indicating an improvement in operational performance[150]. Assets and Liabilities - Total assets as of March 31, 2025, were $22,047 million, up from$21,802 million as of December 31, 2024, indicating a growth of 1.1%[15]. - Total debt increased to $16,772 million as of March 31, 2025, compared to$16,335 million at the end of 2024, representing a rise of 2.7%[15]. - Total liabilities rose to $22,126 million as of March 31, 2025, compared to$21,475 million at the end of 2024, an increase of 3.0%[30]. - The company’s retained earnings (accumulated deficit) decreased to $(2,945) million as of March 31, 2025, from$(2,502) million at the end of 2024, reflecting a worsening of the deficit[15]. - The accumulated deficit increased to $2,945 million as of March 31, 2025, compared to$2,502 million as of December 31, 2024, highlighting ongoing financial losses[22]. Cash Flow and Investments - Cash provided by operating activities in Q1 2025 was $251 million, down from$370 million in Q1 2024, reflecting a decrease in operational cash flow[25]. - Revenue earning vehicle expenditures in Q1 2025 totaled $2,847 million, an increase from$1,904 million in Q1 2024, highlighting increased investment in fleet[25]. - Net cash used in investing activities was $718 million in Q1 2025, slightly higher than$703 million in Q1 2024, showing continued capital expenditure[25]. - Net cash provided by financing activities in Q1 2025 was $346 million, a significant increase from$85 million in Q1 2024, suggesting improved financing conditions[27]. Operational Metrics - Direct vehicle and operating expenses for Q1 2025 were $1,274 million, down from$1,366 million in Q1 2024, showing a decrease of 6.7%[17]. - The Americas RAC segment generated revenues of $1,490 million in Q1 2025, down from$1,739 million in Q1 2024, reflecting a 14% decline[148]. - International RAC revenues were $323 million in Q1 2025, slightly down from$341 million in Q1 2024, a decrease of 5%[148]. - Vehicle utilization for the Americas RAC segment improved to 80% in Q1 2025, up from 77% in Q1 2024[193]. Debt and Interest - The company incurred interest expense of $267 million in Q1 2025, compared to$216 million in Q1 2024, an increase of 23.6%[33]. - The total non-vehicle debt increased to $5,746 million as of March 31, 2025, compared to$5,104 million as of December 31, 2024, representing a rise of approximately 12.5%[60]. - The total vehicle debt decreased to $11,026 million as of March 31, 2025, from$11,231 million as of December 31, 2024, showing a decline of approximately 1.83%[61]. Tax and Legal Matters - Hertz Global recorded a tax benefit of $82 million for the three months ended March 31, 2025, resulting in an effective tax rate of 16$395 million and an effective tax rate of 68% in the same period of 2024[93][94]. - As of March 31, 2025, the Company has accrued approximately $326 million for litigation, including$260 million on underlying claims and $66 million in pre-judgment interest[135]. - A class action complaint was filed against Hertz Global alleging violations of the Exchange Act, seeking unspecified damages for securities purchased between January 6, 2023, and April 24, 2024[139]. Segment Performance - The corporate segment reported a loss of$(70) million in Q1 2025, which is an increase from a loss of $(52) million in Q1 2024[150]. - Total revenues decreased by$267 million (13%) in Q1 2025 compared to Q1 2024, primarily due to lower volume and pricing in both the Americas RAC and International RAC segments[181]. - Selling, general and administrative expenses (SG&A) increased by $58 million (36%) in Q1 2025 compared to Q1 2024, primarily due to corporate operations[181][185].