Key Takeaways
- First quarter results showed a loss of $8.01 per share, falling short of the $7.29 analyst consensus
- Quarterly revenue reached $2.53 billion, representing a 4.3% yearly increase and surpassing projections
- Shares tumbled approximately 15-17% during Wednesday’s premarket session
- The stock has plummeted more than 70% since reaching a short squeeze peak of $713.97 on April 21
- Company generated $570 million more in adjusted free cash flow versus the same period last year
Avis Budget Group delivered first-quarter financial results that fell short of analyst projections, triggering a sharp selloff in Wednesday’s premarket session and deepening what has already been a painful period for shareholders.
The rental car giant reported a GAAP loss of $8.01 per share during the first three months of the year, undershooting Wall Street’s consensus forecast of $7.29 by $0.51. However, the figure represented progress compared to the prior year’s quarterly loss of $14.35 per share.
The company’s quarterly revenue totaled $2.53 billion, marking a 4.3% increase from the year-ago period and exceeding analyst expectations of $2.4 billion.
Shares of CAR declined between 15-17% in premarket activity to the $151-$155 range, positioning the stock for its sixth consecutive day of losses.
While the earnings disappointment adds to investor concerns, the more significant narrative remains the stock’s precipitous decline from recent technical highs.
CAR experienced a meteoric rise beginning in late March, fueled by intense call option activity from momentum-focused funds and speculators targeting a heavily shorted name. The stock reached an all-time closing peak of $713.97 on April 21.
Since touching that level, shares have shed over 70% of their value as the technical dynamics driving the short squeeze reversed course.
Operational Trends Point to Stabilization
Despite the headline loss, certain operational indicators demonstrated positive momentum.
Revenue per day, when adjusted for currency fluctuations, increased 3% across both the Americas and International divisions. Fleet utilization rates topped 70% in both operating segments.
Adjusted EBITDA registered at negative $113 million, compared to negative $93 million during the first quarter of the previous year, indicating a modest widening of losses on this metric.
The company generated $80 million in adjusted free cash flow, marking an improvement exceeding $570 million compared to the first quarter of 2025. Avis Budget maintained $915 million in liquidity as of quarter-end, supplemented by an additional $2.9 billion in available fleet financing capacity.
Executive Commentary
Chief Executive Officer Brian Choi characterized the quarter as marking a strategic shift in operational execution.
“We executed on the changes we outlined last quarter, and the first quarter reflects a meaningful inflection in our operating performance,” Choi stated.
“With tighter fleet discipline, improving pricing, and stronger utilization, we are building a more resilient business with clear momentum heading into the rest of the year,” he continued.
Management emphasized enhanced fleet management practices and pricing optimization as primary drivers of operational improvement.
Competitor Hertz Global (HTZ) also experienced downward pressure in early trading, declining approximately 1.1% during the premarket session.
As of the premarket trading period, CAR was changing hands near $151, representing a decline of more than 70% from its April 21 high.
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