Earnings (Loss) Per Common Share

Basic earnings (loss) per common share has been computed based upon the weighted-average number of common shares outstanding. Diluted earnings (loss) per common share has been computed based upon the weighted-average number of common shares outstanding plus the effect of all potentially dilutive common stock equivalents, including Public Warrants, computed using the treasury stock method, except when the effect would be anti-dilutive.

For the years ended December 31, 2023 and 2022, the diluted weighted-average shares outstanding included the dilutive impact of Public Warrants where the Company assumed share settlement of the Public Warrants as of the beginning of the reporting period. Additionally, the Company removes the change in fair value of Public Warrants when computing diluted earnings (loss) per common share, when the impact of Public Warrants is dilutive.

In connection with the repurchase of the Series A Preferred Stock by Hertz Global, the difference between the carrying value of the Series A Preferred Stock and the redemption value paid by Hertz Global was deemed a dividend to the holders of the Series A Preferred Stock. As dividends represent earnings that were not available to the holders of Hertz Global's common stock when computing basic and diluted earnings (loss) per common share, they are reflected as an adjustment to net income (loss) available to common stockholders when computing basic and diluted earnings (loss) per common share for Hertz Global for the year ended December 31, 2021.

The following table sets forth the computation of basic and diluted earnings (loss) per common share:


	Years Ended December 31,
(In millions, except per share data)(1)	2023		2022		2021
Numerator:
Net income (loss) attributable to Hertz Global	$	616	$	2,059	$	366
Series A Preferred Stock deemed dividends(2)	—		—		(450)
Net income (loss) available to Hertz Global common stockholders, basic	616		2,059		(84)
Change in fair value of Public Warrants	(163)		(704)		—
Net income (loss) available to Hertz Global common stockholders, diluted	$	452	$	1,355	$	(84)
Denominator:
Basic weighted-average common shares outstanding	313		379		315
Dilutive effect of stock options, RSUs and PSUs	1		1		—
Dilutive effect of Public Warrants	11		23		—
Diluted weighted-average common shares outstanding	326		403		315
Antidilutive Public Warrants	—		—		14
Antidilutive stock options, RSUs and PSUs	6		6		1
Total antidilutive	6		6		15
Earnings (loss) per common share:
Basic	$	1.97	$	5.43	$	(0.27)
Diluted	$	1.39	$	3.36	$	(0.27)

(1) The table above is denoted in millions, excluding earnings (loss) per common share. Amounts are calculated from the underlying numbers in thousands, and as a result, may not agree to the amounts shown in the table when calculated in millions.

(2) Reflects the difference between the carrying value of the Series A Preferred Stock and the redemption value paid by Hertz Global, including certain fees.

Historical Timeline

Fiscal Year	Filed
2023	Feb 12, 2024	Showing above
2022	Feb 7, 2023

2021	Feb 23, 2022

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

HERTZ GLOBAL HOLDINGS, INC Earnings Per Share Disclosure

Historical Timeline

About Earnings Per Share Disclosures

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