HERTZ GLOBAL HOLDINGS, INCHTZ
HERTZ GLOBAL HOLDINGS, INC Segments Disclosure
Segment Information
(1) Includes the carrying amount of vehicles classified as held for sale as of the respective balance sheet date. See Note 5, "Revenue Earning Vehicles."
The Company's chief operating decision maker ("CODM") is its Chief Executive Officer. The CODM uses Adjusted EBITDA to determine segment profitability, which aids the CODM in the assessment of segment operating performance and assists in the evaluation of resource needs and allocation of resources to the Company's reportable segments. The CODM conducts regular meetings with finance and operational leaders to review targeted results versus actual results to facilitate the evaluation of Adjusted EBITDA. The Company has identified two reportable segments, which are consistent with its operating segments and organized based primarily on the geographic areas in which business is conducted, as follows:
•Americas RAC - Rental of vehicles (cars, crossovers, vans and light trucks), as well as sales of value-added services, in the U.S., Canada, Latin America and the Caribbean. The Company maintains a network of company-operated rental locations in this segment and has franchisees and partners that operate rental locations under the Company's brands; and
•International RAC - Rental of vehicles (cars, crossovers, vans and light trucks), as well as sales of value-added services, in locations other than the U.S., Canada, Latin America and the Caribbean. The Company maintains a network of company-operated rental locations, a majority of which are in Europe, and has franchisees and partners that operate rental locations under the Company's brands.
In addition to its reportable segments, the Company has corporate operations ("Corporate") which includes general corporate assets and expenses and net interest expense on non-vehicle debt. Corporate includes other items necessary to reconcile the reportable segments to the Company's total amounts.
The following tables provide revenue, significant expenses, other segment expenses and the segment measure of profitability, Adjusted EBITDA, by reportable segment, including a reconciliation of Adjusted EBITDA to consolidated income (loss) before income taxes for Hertz Global and Hertz.
| Year Ended December 31, 2025 | |||||||||||||||||
| (In millions) | Americas RAC | International RAC | Total | ||||||||||||||
| Revenues | $ | 6,759 | $ | 1,745 | $ | 8,504 | |||||||||||
| Significant segment expenses: | |||||||||||||||||
| Direct vehicle and operating | 4,461 | 1,031 | 5,492 | ||||||||||||||
Depreciation of revenue earning vehicles and lease charges, net(1) | 1,574 | 353 | 1,927 | ||||||||||||||
| Selling, general and administrative | 504 | 228 | 732 | ||||||||||||||
Other segment items(2) | 392 | 9 | 401 | ||||||||||||||
| Segment profit (loss): Adjusted EBITDA | $ | (172) | $ | 124 | (48) | ||||||||||||
| Adjustments: | |||||||||||||||||
Corporate(3) | (291) | ||||||||||||||||
| Non-vehicle depreciation and amortization | (117) | ||||||||||||||||
Non-vehicle debt interest, net(4) | (498) | ||||||||||||||||
Vehicle debt-related charges(5) | (46) | ||||||||||||||||
Restructuring and restructuring related charges(6) | (18) | ||||||||||||||||
Unrealized gains (losses) on financial instruments(7) | 37 | ||||||||||||||||
Gain on sale of non-vehicle capital assets(8) | 144 | ||||||||||||||||
Legal settlement(9) | 154 | ||||||||||||||||
Bankruptcy-related litigation reserve(10) | (24) | ||||||||||||||||
Other items(11) | (79) | ||||||||||||||||
| Income (loss) before income taxes - Hertz | (786) | ||||||||||||||||
Change in fair value of Public Warrants(12) | (44) | ||||||||||||||||
| Income (loss) before income taxes - Hertz Global | $ | (830) | |||||||||||||||
| Year Ended December 31, 2024 | |||||||||||||||||
| (In millions) | Americas RAC | International RAC | Total | ||||||||||||||
| Revenues | $ | 7,398 | $ | 1,651 | $ | 9,049 | |||||||||||
| Significant segment expenses: | |||||||||||||||||
| Direct vehicle and operating | 4,726 | 971 | 5,697 | ||||||||||||||
Depreciation of revenue earning vehicles and lease charges, net(1) | 3,198 | 413 | 3,611 | ||||||||||||||
| Selling, general and administrative | 482 | 244 | 726 | ||||||||||||||
Other segment items(2) | 349 | (8) | 341 | ||||||||||||||
| Segment profit (loss): Adjusted EBITDA | $ | (1,357) | $ | 31 | $ | (1,326) | |||||||||||
| Year Ended December 31, 2024 | |||||||||||||||||
| (In millions) | Americas RAC | International RAC | Total | ||||||||||||||
| Adjustments: | |||||||||||||||||
Corporate(3) | (215) | ||||||||||||||||
| Non-vehicle depreciation and amortization | (139) | ||||||||||||||||
| Non-vehicle debt-interest, net | (375) | ||||||||||||||||
Vehicle debt-related charges(5) | (45) | ||||||||||||||||
Restructuring and restructuring related charges(6) | (66) | ||||||||||||||||
Unrealized gains (losses) on financial instruments(7) | (7) | ||||||||||||||||
Bankruptcy-related litigation reserve(10) | (292) | ||||||||||||||||
Long-Lived Assets impairment(13) | (1,048) | ||||||||||||||||
Non-cash stock-based compensation forfeitures(14) | 64 | ||||||||||||||||
Other items(11) | (63) | ||||||||||||||||
| Income (loss) before income taxes - Hertz | (3,512) | ||||||||||||||||
Change in fair value of Public Warrants(12) | 275 | ||||||||||||||||
| Income (loss) before income taxes - Hertz Global | $ | (3,237) | |||||||||||||||
| Year Ended December 31, 2023 | |||||||||||||||||
| (In millions) | Americas RAC | International RAC | Total | ||||||||||||||
| Revenues | $ | 7,722 | $ | 1,649 | $ | 9,371 | |||||||||||
| Significant segment expenses: | |||||||||||||||||
| Direct vehicle and operating | 4,582 | 880 | 5,462 | ||||||||||||||
Depreciation of revenue earning vehicles and lease charges, net(1) | 1,775 | 264 | 2,039 | ||||||||||||||
| Selling, general and administrative | 501 | 227 | 728 | ||||||||||||||
Other segment items(2) | 279 | (24) | 255 | ||||||||||||||
| Segment profit (loss): Adjusted EBITDA | $ | 585 | $ | 302 | $ | 887 | |||||||||||
| Adjustments: | |||||||||||||||||
Corporate(3) | (326) | ||||||||||||||||
| Non-vehicle depreciation and amortization | (149) | ||||||||||||||||
| Non-vehicle debt interest, net | (238) | ||||||||||||||||
Vehicle debt-related charges(5) | (42) | ||||||||||||||||
Restructuring and restructuring related charges(6) | (17) | ||||||||||||||||
Unrealized gains (losses) on financial instruments(7) | (117) | ||||||||||||||||
Gain on sale of non-vehicle capital assets(8) | 162 | ||||||||||||||||
Other items(9) | (37) | ||||||||||||||||
| Income (loss) before income taxes - Hertz | 123 | ||||||||||||||||
Change in fair value of Public Warrants(10) | 163 | ||||||||||||||||
| Income (loss) before income taxes - Hertz Global | $ | 286 | |||||||||||||||
(1) Includes the write-down to carrying value of vehicles classified as held for sale. In 2024, also includes the EV Disposal Groups. In 2023, Americas RAC also includes the First EV Disposal Group. See Note 5, "Revenue Earning Vehicles."
(2) Represents certain other segment items that are not deemed significant segment expenses, which primarily consists of vehicle interest expense, net and other adjustments, such as intercompany royalty assessment fees, restructuring and restructuring related charges, vehicle-debt related charges and other miscellaneous items as described in footnote 11 below.
(3) Represents other reconciling items primarily consisting of general corporate expenses as well as other business activities.
(4) Excludes gains (losses) related to the fair value of the Exchange Features 2029 and the Exchange Feature 2030, which are included in footnote 7 below.
(5) Represents vehicle debt-related charges relating to the amortization of deferred financing costs and debt discounts and premiums which are recorded within vehicle interest expense.
(6) Represents charges incurred under restructuring actions as defined in U.S. GAAP. Also includes restructuring related charges such as incremental costs incurred related primarily to personnel reductions, litigation and closure of underperforming locations. In 2025 and 2024, charges are recorded within selling, general and administrative expense. In 2023, charges are recorded within direct vehicle and operating expense and selling, general and administrative expense.
(7) Represents unrealized gains (losses) on derivative financial instruments in which interest rate instrument gains (losses) are recorded within vehicle interest expense, net and foreign currency forward contract gains (losses) are recorded within selling, general and administrative expense. In 2025 and 2024, also includes gains (losses) associated with the Exchange Features 2029 and the Exchange Feature 2030, which are recorded within non-vehicle interest expense, net. See Note 12, "Financial Instruments."
(8) Represents the gains recognized on the sales of certain non-vehicle capital assets sold in 2025 and 2023. See Note 3, "Divestitures."
(9) Represents the gain related to the receipt of a legal settlement distribution in September 2025 in connection with the Company’s participation in a class action settlement. See Note 15, "Contingencies and Off-Balance Sheet Commitments."
(10) Represents an increase to an existing bankruptcy-related litigation reserve initially recorded in September 2024, including interest which continues to accrue during each subsequent reporting period. See Note 15, "Contingencies and Off-Balance Sheet Commitments."
(11) Represents miscellaneous items. For 2025, primarily includes a pension plan settlement reserve adjustment, a one-time settlement agreement to restructure an IT contract,, certain IT-related charges, cloud computing costs, an unfavorable litigation ruling and certain concession-related adjustments. For 2024, primarily includes certain IT-related charges, cloud computing costs and certain storm-related vehicle damages, partially offset by a loss recovery settlement and certain litigation settlements. For 2023, primarily includes certain IT-related costs, charges for certain storm-related vehicle damages and certain professional fees and charges related to the settlement of bankruptcy claims, partially offset by a loss recovery settlement.
(12) Represents the change in fair value during the reporting period for Hertz Global's outstanding Public Warrants.
(13) Represents Long-Lived Assets impairment charges recognized in the third quarter of 2024. See Note 4, "Long-Lived Assets Impairment."
(14) Represents former CEO awards forfeited in March 2024. See Note 9, "Stock-Based Compensation."
The following tables provide other significant segment statement of operations, balance sheet and cash flow information for each of Hertz Global and Hertz.
| Years Ended December 31, | |||||||||||||||||||||||
| (In millions) | Americas RAC | International RAC | Unallocated(1) | Total Hertz Global and Hertz | |||||||||||||||||||
| 2025 | |||||||||||||||||||||||
| Depreciation and amortization, non-vehicle assets | $ | 96 | $ | 14 | $ | 7 | $ | 117 | |||||||||||||||
Vehicle interest expense, net(2) | 510 | 98 | — | 608 | |||||||||||||||||||
Non-vehicle interest expense, net(2) | 2 | (16) | 483 | 469 | |||||||||||||||||||
| 2024 | |||||||||||||||||||||||
| Depreciation and amortization, non-vehicle assets | $ | 109 | $ | 13 | $ | 17 | $ | 139 | |||||||||||||||
Vehicle interest expense, net(2) | 479 | 111 | — | 590 | |||||||||||||||||||
Non-vehicle interest expense, net(2) | (4) | (18) | 391 | 369 | |||||||||||||||||||
| 2023 | |||||||||||||||||||||||
| Depreciation and amortization, non-vehicle assets | $ | 125 | $ | 11 | $ | 13 | $ | 149 | |||||||||||||||
Vehicle interest expense, net(2) | 456 | 99 | — | 555 | |||||||||||||||||||
Non-vehicle interest expense, net(2) | (22) | (10) | 270 | 238 | |||||||||||||||||||
(1) Includes expenses associated with the Company's corporate operations which are not attributable to a particular reportable segment.
(2) The Company's CODM relies primarily on interest expense,net when reviewing targeted results versus actual results to facilitate in the evaluation of segment results.
| As of December 31, | |||||||||||||||||||||||||||||||||||
| (In millions) | Americas RAC | International RAC | Unallocated(1) | Total Hertz Global | Unallocated - Hertz(2) | Total Hertz | |||||||||||||||||||||||||||||
| 2025 | |||||||||||||||||||||||||||||||||||
Revenue earning vehicles, net(3) | $ | 10,844 | $ | 1,682 | $ | — | $ | 12,526 | $ | — | $ | 12,526 | |||||||||||||||||||||||
| Property and equipment, net | 415 | 63 | 88 | 566 | — | 566 | |||||||||||||||||||||||||||||
Total assets(4) | 17,809 | 3,357 | 1,145 | 22,311 | (3) | 22,308 | |||||||||||||||||||||||||||||
| 2024 | |||||||||||||||||||||||||||||||||||
Revenue earning vehicles, net(3) | $ | 10,253 | $ | 1,710 | $ | — | $ | 11,963 | $ | — | $ | 11,963 | |||||||||||||||||||||||
| Property and equipment, net | 460 | 71 | 92 | 623 | — | 623 | |||||||||||||||||||||||||||||
Total assets(4) | 17,386 | 3,456 | 960 | 21,802 | (1) | 21,801 | |||||||||||||||||||||||||||||
(1) Includes assets associated with the Company's corporate operations which are not attributable to a particular reportable segment.
(2) Includes assets associated with Hertz's corporate operations which are not attributable to a particular reportable segment.
(3) Includes the carrying amount of vehicles classified as held for sale as of the respective balance sheet date. See Note 5, "Revenue Earning Vehicles."
(4) The consolidated total assets of Hertz Global and Hertz as of December 31, 2025 and 2024 include total assets of VIEs of $1.3 billion and $1.4 billion, respectively, which can only be used to settle obligations of the VIEs. See "Pledges Related to Vehicle Financing" in Note 7, "Debt," for further information.
| Years Ended December 31, | |||||||||||||||||||||||
| (In millions) | Americas RAC | International RAC | Unallocated(1) | Total Hertz Global and Hertz | |||||||||||||||||||
| 2025 | |||||||||||||||||||||||
| Expenditures | $ | (8,579) | $ | (1,700) | $ | (1) | $ | (10,280) | |||||||||||||||
| Proceeds from disposals | 6,651 | 1,637 | (2) | 8,286 | |||||||||||||||||||
| Net expenditures | $ | (1,928) | $ | (63) | $ | (3) | $ | (1,994) | |||||||||||||||
| 2024 | |||||||||||||||||||||||
| Expenditures | $ | (8,931) | $ | (1,687) | $ | (11) | $ | (10,629) | |||||||||||||||
| Proceeds from disposals | 6,105 | 1,594 | 2 | 7,701 | |||||||||||||||||||
| Net expenditures | $ | (2,826) | $ | (93) | $ | (9) | $ | (2,928) | |||||||||||||||
| 2023 | |||||||||||||||||||||||
| Expenditures | $ | (7,736) | $ | (1,921) | $ | (45) | $ | (9,702) | |||||||||||||||
| Proceeds from disposals | 4,376 | 1,298 | 5 | 5,679 | |||||||||||||||||||
| Net expenditures | $ | (3,360) | $ | (623) | $ | (40) | $ | (4,023) | |||||||||||||||
(1) Includes assets associated with the Company's corporation operations which are not attributable to a particular reportable segment.
The Company operates in the U.S. and in international countries. International operations are substantially in Europe. The operations within major geographic areas for each of Hertz Global and Hertz are summarized below:
| Years Ended December 31, | |||||||||||||||||
| (In millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Revenues | |||||||||||||||||
| U.S. | $ | 6,422 | $ | 7,060 | $ | 7,392 | |||||||||||
International | 2,082 | 1,989 | 1,979 | ||||||||||||||
Total Hertz Global and Hertz | $ | 8,504 | $ | 9,049 | $ | 9,371 | |||||||||||
| As of December 31, | |||||||||||||||||||||||||||||
| (In millions) | U.S. | International | Total Hertz Global | U.S. - Hertz | Total Hertz | ||||||||||||||||||||||||
| 2025 | |||||||||||||||||||||||||||||
Revenue earning vehicles, net(1) | $ | 10,473 | $ | 2,053 | $ | 12,526 | $ | — | $ | 12,526 | |||||||||||||||||||
| Property and equipment, net | 484 | 82 | 566 | — | 566 | ||||||||||||||||||||||||
| Operating lease right-of-use assets | 1,927 | 330 | 2,257 | — | 2,257 | ||||||||||||||||||||||||
| Total assets | 18,242 | 4,069 | 22,311 | (3) | 22,308 | ||||||||||||||||||||||||
| 2024 | |||||||||||||||||||||||||||||
Revenue earning vehicles, net(1) | $ | 9,880 | $ | 2,083 | $ | 11,963 | $ | — | $ | 11,963 | |||||||||||||||||||
| Property and equipment, net | 535 | 88 | 623 | — | 623 | ||||||||||||||||||||||||
| Operating lease right-of-use assets | 1,815 | 273 | 2,088 | — | 2,088 | ||||||||||||||||||||||||
| Total assets | 17,670 | 4,132 | 21,802 | (1) | 21,801 | ||||||||||||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 18, 2025 | |
| 2023 | Feb 12, 2024 | |
| 2022 | Feb 7, 2023 | |
| 2021 | Feb 23, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Feb 25, 2020 | |
| 2018 | Feb 25, 2019 | |
| 2017 | Feb 27, 2018 | |
| 2016 | Mar 6, 2017 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.