TLDR
- Hertz stock jumps 39.88% after stellar Q3 2025 results and profitability comeback.
- Hertz delivers strong Q3 earnings, driving stock up by 39.88% and boosting confidence.
- Q3 2025 results propel Hertz stock to a 39.88% surge, highlighting growth and profitability.
- Hertz reports solid Q3, driving a 39.88% stock increase on strong earnings and cash flow.
- Strong Q3 earnings push Hertz stock up nearly 40%, marking a major recovery.
Hertz Global Holdings, Inc.(HTZ) saw a significant surge in its stock price, rising by 39.88% to $6.91 from $4.94 earlier in the day.
Hertz Global Holdings, Inc., HTZ
This dramatic increase followed the release of the company’s Q3 2025 earnings report. The strong results highlight the company’s successful execution of its business strategy and operational improvements, leading to positive financial outcomes after two years of challenges.
Q3 2025 Earnings Report Highlights Robust Financial Performance
Hertz’s revenue reached $2.5 billion in the third quarter of 2025, reflecting solid growth. The company also posted a net income of $184 million and a diluted earnings per share (EPS) of $0.42. These results mark the company’s return to profitability after a challenging period. The strong execution of the company’s Back-to-Basics strategy contributed to these positive outcomes, signaling that Hertz is on a robust recovery path.
Hertz’s adjusted corporate EBITDA surged year-over-year by about $350 million to $190 million. This boost indicates improved operational efficiencies and better fleet economics. The increase in EBITDA reflects the company’s disciplined approach to cost control and its focus on enhancing overall business performance. This has allowed Hertz to strengthen its financial standing and prepare for future growth.
Hertz’s fleet utilization reached 84% in Q3 2025, its highest level since 2018. The company’s ability to keep more vehicles in active service directly contributed to its improved financial performance. By reducing out-of-service times and enhancing fleet management, Hertz has advanced its goal of reaching a revenue per unit (RPU) of over $1,500, a key target for the company’s long-term success.
Operational Efficiency Drives Stronger Cash Flow and Liquidity Position
Hertz ended the third quarter with $2.2 billion in liquidity, bolstering its financial flexibility. The company’s ability to generate positive adjusted free cash flow of approximately $250 million further strengthens its financial foundation. With a disciplined approach to cash management, Hertz has positioned itself well for continued growth and stability in the coming quarters.
One of the key strategies driving these improvements is Hertz’s “Buy Right, Hold Right, Sell Right” approach to fleet management. By increasing its retail vehicle sales and expanding its direct-to-consumer Hertz Car Sales platform, Hertz has successfully monetized its fleet. The percentage of fleet sold through retail channels has increased by 570 basis points compared to the previous year, showcasing the success of this strategy.
Hertz has also maintained a focus on controlling depreciation, with the cost per unit remaining at $273, in line with its guidance. This careful management of fleet costs ensures the company remains on track to meet its North Star target of sub-$300 depreciation per unit in the coming year. The combination of these strategies has enabled Hertz to improve its operational efficiency while maintaining financial discipline.
Strong Customer Satisfaction and Brand Performance
In Q3 2025, Hertz achieved a nearly 50% year-over-year increase in its North America Net Promoter Score (NPS). This metric, which reflects customer satisfaction, indicates that the company has made substantial progress in enhancing the customer experience. Hertz’s commitment to enhancing vehicle quality and rental ease has been central to this improvement.
Hertz’s focus on customer satisfaction is evident in the measurable gains in vehicle quality confidence and rental ease. As part of its transformation, the company has sharpened its processes to meet customer needs better. The significant increase in its NPS score underlines the success of these efforts and the importance of customer loyalty to the company’s future growth.
CEO Gil West emphasized the importance of these improvements, stating, Throughout this transformation, we’re rebuilding our foundation while sharpening our skills and capabilities, creating a new platform for growth. This focus on the customer experience, combined with strong operational execution, has positioned Hertz for long-term success in the competitive car rental market.
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