HTZ

Verra Mobility’s second quarter was marked by notable progress in customer retention, but the market reacted sharply to its revised outlook. Management attributed Q2’s performance to a catch-up in New York City camera installations and improved collections in commercial services, with interim CEO Jon Keyser highlighting new multi-year agreements with both Avis Budget Group and Hertz as critical to stabilizing the business. However, Keyser acknowledged the company is navigating a challenging transition period, stating, “These contracts were executed at lower pricing levels than our existing relationships,” which weighed on profitability and investor sentiment. Is now the time to buy VRRM? Find out in our full research report (it’s free). Revenue: $263.6 million vs analyst estimates of $254 million (11.7% year-on-year growth, 3.8% beat) Adjusted EPS: $0.38 vs analyst estimates of $0.33 (15.1% beat) Adjusted EBITDA: $110.7 million vs analyst estimates of $100.2 million (42% margin, 10.4% beat) The company dropped its revenue guidance for the full year to $955 million at the midpoint from $1.03 billion, a 6.8% decrease Management lowered its full-year Adjusted EPS guidance to $1.14 at the midpoint, a 15.6% decrease EBITDA guidance for the full year is $365 million at the midpoint, below analyst estimates of $382.1 million Operating Margin: -12.4%, down from 26.8% in the same quarter last year Market Capitalization: $726.5 million While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Tomohiko Sano (JPMorgan) asked about the circumstances behind Avis’s initial termination notice and what led to the contract renewal. Interim CEO Jon Keyser emphasized the importance of listening to customer concerns and rebuilding trust at the executive level to secure the extension. Tomohiko Sano (JPMorgan) followed up regarding the key economic changes in the Avis and Hertz renewals, specifically around pricing and volume flexibility. CFO Craig Conti confirmed the new contracts are on less favorable terms, with customers able to modulate fleet volumes, but declined to disclose specifics. Daniel Joseph Moore (CJS Securities) inquired if new contracts included minimum volume floors that would provide revenue visibility. Conti stated he could not disclose contract details but noted the company maintains daily engagement with customers to forecast demand. Daniel Joseph Moore (CJS Securities) pressed for details on the Los Angeles government contract and its revenue potential. Keyser responded that the award could add approximately $10 million in annual recurring revenue once finalized, and highlighted the importance of legislative action in unlocking new opportunities. Faiza Alwy (Deutsche Bank) questioned whether lower commercial margin levels are now the norm or if cost initiatives could offset the decline. Conti indicated margins will remain pressured in the near term but reiterated ongoing efforts to optimize the cost base and improve profitability longer term. In the coming quarters, the StockStory team will be watching (1) the practical impact of the new Avis and Hertz agreements on both revenue stability and margin trajectories, (2) measurable progress on cost reductions and operational transformation, especially in non-labor categories, and (3) the ramp-up of government safety programs, including the Los Angeles rollout. Execution on AI integration and any shifts in parking solutions strategy will also be key indicators of future performance. Verra Mobility currently trades at $4.82, down from $5.61 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members). WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.

HTZ jumped 39% in a week after Q2 revenue hit $2.4B, up 10% year over year, on pricing power despite operating with a smaller fleet. CAR barely moved while UBER gained 9% on the week, confirming Reddit-fueled retail traders, not sector strength, are driving HTZ higher. Multiple class-action lawsuits, $18.7B in debt, and S&P SmallCap 600 removal all hang over a stock still down 59% year to date. It sounds nuts, but SoFi1 is giving new Active Invest users up to $3,000 in stock for a limited time, and all it takes is a $50 deposit to get started.2 See for yourself (Sponsor) Shares of Hertz Global Holdings (NASDAQ:HTZ) are ripping higher in Tuesday afternoon trading, changing hands around $2.64, a 25% jump from Monday's close of $2.12. The move extends a violent post-earnings bounce, with the stock now up 39% over the past week. The catalyst traces back to Hertz's August 6 Q2 report, which surprised to the upside on nearly every operating line. Revenue landed at $2.396 billion, up 10% year over year, while adjusted EPS of -$0.11 beat consensus handily. Adjusted Corporate EBITDA came in at $81 million, and revenue per unit hit $1,542, above the company's North Star target. CEO Gil West framed the earnings report as validation of the turnaround, saying "This quarter's results reflect the disciplined execution of our strategy and our consistent commercial strength." Revenue grew 10% year over year despite operating with a 1% smaller fleet, a genuine pricing-power tell. The 8-K is on file with the SEC. The rally is happening in spite of a wall of overhangs. Multiple securities class-action complaints allege Hertz made materially false statements about liquidity and the likelihood of a dilutive capital raise between May 7 and June 23, 2026, with a lead-plaintiff deadline of September 22, 2026. A $300 million secured-notes deal announced June 24 triggered the 40%-plus drawdown that anchors those suits. SoFi Active Invest is offering a limited-time promotion. Open an account, fund it with $50 or more, and you could receive up to $3,000 in complimentary stock for Active Invest accounts. See for yourself by clicking here now. (Sponsor) Layer on removal from the S&P SmallCap 600, which forced index-fund selling, and analyst fair-value cuts from $3.78 to $2.78. The balance sheet is also stretched, with total debt at $18.7 billion and a stockholders' deficit of $628 million. Year to date, HTZ is still down 59%. It's worth noting that Hertz opened the day flat. Buying pressure built between 9:45 a.m. ET and 10:45 a.m. ET. Most of Hertz' gains came from that period as the stock has traded mostly sideways since the morning. The bounce looks idiosyncratic. Avis Budget Group (NASDAQ:CAR), the closest rental peer, is up 3% today to $142 and essentially flat over the past week. Mobility partner Uber Technologies (NYSE:UBER), which is teaming with Hertz's Oro Mobility unit on an AV launch in the San Francisco Bay Area later this year, has climbed 9% on the week, while Lyft (NASDAQ:LYFT) is up 5%. HTZ is running its own race. Retail is fueling the move. Reddit's r/wallstreetbets sentiment score hit 93 on August 7, with posts titled "Upcoming Hertz 10+ Bagger" and "Full port, life savings in HTZ, I have never felt this alive" drawing hundreds of comments. The warrant lock-up expired August 9, which may be adding to the whipsaw as short positioning gets tested. Looking to grow your money but unsure where to begin? SoFi Active Invest is offering a limited-time promotion—open a new Active Invest account, fund it with $50 or more, and you could receive up to $3,000 in complimentary stock. From $0 commission trading3 to fractional shares4 and automated investing, this app is designed to simplify investing for everyone, whether you’re just starting or already experienced. Its easy to sign up and secure your bonus.(Sponsor) Contact [email protected] for any questions or corrections.

Hertz Global Holdings, Inc.HTZ reported better-than-expected second-quarter 2026 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. Quarterly adjusted loss was 11 cents per share, narrower than the Zacks Consensus Estimate of a loss of 23 cents. The result represented a positive surprise of 52.2% and improved from the adjusted loss of 29 cents per share reported in the year-ago quarter. Revenues of $2.40 billion beat the consensus estimate of $2.28 billion by 4.9% and increased 9.7% year over year. Growth was driven by strong pricing execution, with revenues per day up 9% and revenues per unit rose 8%, while the company operated with a 1% smaller fleet. Hertz Global Holdings, Inc. price-consensus-eps-surprise-chart | Hertz Global Holdings, Inc. Quote The impressive results had a positive impact on the market, as the company’s shares have risen 12.4% since the earnings release on Aug. 6. Image Source: Zacks Investment Research Adjusted corporate EBITDA was $81 million, up $63 million from the prior-year quarter. Adjusted corporate EBITDA margin improved to 3.4% from 0.8% a year earlier. The results included an estimated $30 million EBITDA headwind from elevated vehicle recalls. Direct vehicle and operating expenses increased 4.3% year over year to $1.45 billion. Net depreciation of revenue-earning vehicles and lease charges rose 17.3% to $487 million, while selling, general and administrative expenses increased 4.9% to $258 million. As a percentage of revenues, SG&A improved to 10.8% from 11.3%. HTZ exited the second quarter with total cash, cash equivalents and restricted cash and cash equivalents of $1.30 billion compared with $1.17 billion at the end of 2025. The company generated $381 million of net cash from operating activities and $162 million of adjusted free cash flow during the second quarter. Quarter-end liquidity was $984 million. For the third quarter of 2026, Hertz expects adjusted corporate EBITDA of $275 million to $325 million and positive earnings per share. Transaction days are projected to increase approximately 1% year over year, while net depreciation per unit is expected to range from $285-$295 per month. For full-year 2026, the company expects adjusted corporate EBITDA of $225 million to $275 million, net depreciation per unit of approximately $300 per month and transaction days growth of approximately 2%. Hertz expects to end 2026 with liquidity between $1.0 billion and $1.4 billion and anticipates positive free cash flow in the second half of the year. Currently, HTZ has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Westinghouse Air Brake Technologies WAB, operating as Wabtec Corporation, reported encouraging second-quarter 2026 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate and increased year over year. Quarterly adjusted earnings of $2.76 per share beat the Zacks Consensus Estimate of $2.63 by 4.9% and increased 21.6% year over year, owing to higher sales and operating margin expansion. Revenues climbed 17.5% to $3.18 billion and surpassed the consensus mark of $3.08 billion by 3.2%. United Airlines Holdings, Inc. UAL reported second-quarter 2026 adjusted earnings of $1.99 per share, down 48.6% year over year but above the Zacks Consensus Estimate of $1.92 by 3.7%. Operating revenues rose 16% to $17.67 billion and were essentially in line with the $17.68 billion consensus mark. A 12.1% increase in total revenues per available seat mile or TRASM, and broad-based gains across premium, loyalty and cargo revenues, supported the top line despite sharply higher fuel costs. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hertz Global Holdings, Inc. (HTZ) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report Wabtec (WAB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Hertz Global Holdings (HTZ) is one of the world’s largest car rental and mobility companies, operating roughly 11,000 locations across 160 countries with a fleet of more than 500,000 vehicles. But lately, the century-old rental giant has been giving investors something else to watch. Hertz’s second-quarter 2026 report, released on Aug. 6, was impressive, with the numbers coming in well above expectations. In fact, the quarter marked the strongest revenue per day (RPD) in recent history, excluding the COVID-era peak of 2022. Adjusted losses remain, but they are narrowing, and that was enough to put some wind back in HTZ’s sails. Shares jumped 29.5% and another 12.4% the following day. Don’t Assume Micron Will Share SanDisk’s Fate. Here's Why. The Nvidia-SpaceX Deal Is Sending a Clear Signal on AI Dominance Rocket Lab Investors Have Plenty to Cheer Ahead of Q2 Earnings Today Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! Now, with its “back-to-basics” strategy underway and its Oro mobility platform preparing for a September 2026 robotaxi launch, is this strong quarter just a short-term boost or the beginning of a bigger turnaround? With HTZ stock still down 72.92% from its 2026 peak, what could be next for the stock from here? Founded in 1918, Hertz Global Holdings has evolved well beyond its traditional car-rental roots, building a portfolio that spans vehicle rentals, used-car sales, car sharing, and next-generation mobility services. Its brand family includes Hertz, Dollar, Thrifty, and Firefly, giving the company exposure to different customer segments and travel needs. Through Hertz Car Sales, it also participates in the used-vehicle market, selling pre-owned cars directly to consumers through digital and physical channels. Meanwhile, its Hertz 24/7 offering extends the company into car sharing, particularly across European markets. Hertz is also pursuing opportunities in autonomous mobility through its operating affiliate, Oro Mobility, which develops fleet-management solutions for both driver-led and autonomous applications. Headquartered in Estero, Florida, Hertz is positioning its century-old business for a rapidly changing mobility landscape. Valued at a market capitalization of $716.8 million, shares of the global car rental company have had a rough ride this year. HTZ climbed to a 52-week high of $8.18 in April, only to lose ground rapidly and hit a low of $1.45 on Aug. 5. Behind that steep decline were several problems piling up at once. Hertz was dealing with falling used-car values, which created concerns around the resale value of its large vehicle fleet. That matters because when the value of used cars declines, Hertz can recover less when it sells vehicles, while weaker residual values can also increase depreciation costs. Heavy vehicle depreciation was already weighing on the company’s finances, adding another layer of pressure. At the same time, Hertz faced a class-action lawsuit, substantial debt obligations and the added blow of being removed from the S&P SmallCap 600 index. Then came Aug. 6, and the story suddenly took a turn. Hertz reported its second-quarter results, and HTZ jumped double digits over the Aug. 6 and Aug. 7 trading sessions, but this was not an ordinary earnings bounce. Trading volume went through the roof. More than 155.8 million Hertz’s shares changed hands on Thursday, followed by over 227.2 million on Friday. The unusual activity also sparked renewed discussion across Reddit communities, with investors focusing on Hertz’s heavy short interest. Short interest stood at 31.2% of the float, while the days-to-cover ratio was around 3.94 days. That combination creates the ingredients for a potential short squeeze. Put simply, when a heavily shorted stock suddenly starts climbing, short sellers can find themselves caught on the wrong side of the trade. To limit losses, they buy shares to close their positions, and that additional demand can push the stock even higher. Given HTZ’s sharp move and enormous trading volumes, short covering appears to have played an important role in the recent rally. Still, HTZ is down 60.2% over the past 52 weeks, 56.94% year-to-date (YTD), and 63.42% over the past three months alone. However, the stock is up 9.27% over the past month and a striking 46.41% over the past five trading days. Technically, the chart does not flash extreme weakness. The 14-day RSI, which had fallen into oversold territory in July, has recovered to 51.69. That puts the indicator close to neutral territory and suggests the recent rebound has taken some of the pressure off HTZ. Valuation-wise, HTZ stock is priced at 0.09 times sales, cheaper than the industry average and its historical median. Hertz reported its second-quarter results last week, and it was impressive. The company generated $2.4 billion in revenue, up 10% year-over-year (YOY), beating Wall Street’s expectations. Adjusted loss came in at $0.11 per share, narrower than what the Street expected. A closer look at the numbers makes the improvement even more interesting. RPD rose 9% annually to $61.98, with management saying roughly 6 to 7 percentage points came from its own commercial actions, rather than simply riding industry pricing. U.S. airport car rental RPD increased 12% YOY. Revenue per unit per month reached $1,542, up 8% YOY and above its target, even with a fleet that was 1% smaller. Profitability is where things really started to turn. Adjusted corporate EBITDA jumped 350% YOY to $81 million, pushing the margin to 3.4% from 0.8%. Vehicle recalls did create a 200-basis-point drag on utilization, but total fleet utilization still reached 79%. However, free cash flow fell 50% to $162 million, partly because last year benefited from unusually large gains tied to the tariff environment during fleet rotation. The bigger picture is Hertz’s “back-to-basics” strategy. The company is working on three fronts – optimizing the fleet, improving revenue per vehicle and tightening costs. Depreciation per unit came in at $302, getting close to the sub-$300 target for 2026. Around 94% of the U.S. core fleet now consists of 2025 and 2026 model-year vehicles. Hertz is also trying to move beyond its 70%-80% wholesale mix toward more profitable retail vehicle sales. On the revenue side, management is focusing on better customer experience, higher-margin demand, smarter pricing and stronger value-added sales. Meanwhile, direct operating expenses per transaction day increased 4% to $37.49, keeping cost control firmly on the agenda. Then there is Oro, Hertz’s mobility platform, which could become an increasingly important piece of the puzzle. Oro operates more than 40,000 rideshare rental vehicles across 149 markets and is targeting more than $600 million in revenue in 2026. Still, investors cannot ignore Hertz’s balance sheet. Liquidity stood at $984 million as of June 30, including $628 million in unrestricted cash and $356 million available through its revolving credit facility. Looking ahead, Hertz expects Q3 adjusted corporate EBITDA of $275 million to $325 million and positive EPS, a potential milestone for the turnaround. Full-year EBITDA guidance stands at $225 million to $275 million, with management still targeting more than $500 million of year-over-year improvement. Beyond 2026, the company expects to generate positive free cash flow in the second half of 2026 and throughout 2027, while targeting $1 billion in adjusted EBITDA in 2027. With franchising, fleet services and Oro providing additional growth avenues – and liquidity expected to reach $1 billion to $1.4 billion by year-end – the pieces are beginning to fall into place. Meanwhile, analysts tracking Hertz Global expect Q3 EPS to be around $0.09, a clear improvement from the loss reported in Q2, although still about 25% below the year-ago level. Revenue is expected to reach $2.63 billion. Looking ahead to fiscal 2026, loss per share is anticipated to narrow by 41.5% YOY to $1.20 per share and then shrink by another 63.3% annually, bringing the expected loss down to just $0.44 per share. Overall, the stock carries a “Moderate Sell” rating. Among the 10 analysts tracking the stock, seven advise a “Hold,” and three suggest a “Strong Sell” rating. HTZ’s average price target of $2.70 suggests upside potential of 22.7% from the current price level. However, the Street-high target of $5.50 suggests the shares could still climb another 150%. Hertz’s strong Q2 report has certainly put HTZ stock back on investors’ radar, but the recent surge was not just about improving fundamentals. A potential short squeeze, fueled by heavy short interest and massive trading volumes, has added rocket fuel to the rally. The real test now is whether narrowing losses, stronger revenue, and ambitious 2027 targets can sustain the momentum once the short-covering frenzy fades. On the date of publication, Sristi Suman Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

For the quarter ended June 2026, Hertz Global Holdings, Inc. (HTZ) reported revenue of $2.4 billion, up 9.7% over the same period last year. EPS came in at -$0.11, compared to -$0.34 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $2.28 billion, representing a surprise of +4.93%. The company delivered an EPS surprise of +52.17%, with the consensus EPS estimate being -$0.23. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Hertz Global performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Americas RAC - Transaction days: 30,895.00 Days versus 30,316.30 Days estimated by two analysts on average. Americas RAC - Total RPD: $62.11 compared to the $60.35 average estimate based on two analysts. Americas RAC - Average vehicles: 429,465 versus the two-analyst average estimate of 420,111. International RAC - Depreciation Per Unit Per Month: $294.00 versus the two-analyst average estimate of $277.14. International RAC - Total RPD: $61.49 compared to the $61.47 average estimate based on two analysts. International RAC- Average vehicles: 109,653 compared to the 107,083 average estimate based on two analysts. Americas RAC - Depreciation Per Unit Per Month: $304.00 versus the two-analyst average estimate of $304.78. International RAC - Transaction days: 7,751.00 Days versus 7,624.20 Days estimated by two analysts on average. Geographic Revenue- International RAC: $478 million versus $456.13 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +6.9% change. Geographic Revenue- Americas RAC: $1.92 billion compared to the $1.82 billion average estimate based on three analysts. The reported number represents a change of +10.4% year over year. View all Key Company Metrics for Hertz Global here>>> Shares of Hertz Global have returned -20.8% over the past month versus the Zacks S&P 500 composite's +3.3% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hertz Global Holdings, Inc. (HTZ) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

"This quarter’s results reflect the disciplined execution of our strategy and our consistent commercial strength," said Gil West, Chief Executive Officer of Hertz. "Our performance demonstrates the progress we're making in transforming the business and delivering tangible operational improvements across the company. Revenue increased 10% year over year despite operating with a 1% smaller fleet, driven by our strongest second quarter RPD on record, excluding the extraordinary market conditions in 2022." On the Company’s strategic priorities, West added: "To unlock long-term opportunities, we’re strengthening our core business while building a platform for growth across four strategic areas: Rent-a-Car, Service, Fleet, and Mobility. We are applying our commercial, operational, and fleet management capabilities across these areas to drive greater efficiency, establish diverse engines of growth, and create long-term value." ESTERO, Fla., August 06, 2026--(BUSINESS WIRE)--Hertz Global Holdings, Inc. (NASDAQ: HTZ) ("Hertz," "Hertz Global," or the "Company") today reported results for its second quarter 2026. Q2 2026 HIGHLIGHTS Revenue totaled $2.4 billion in the second quarter, up 10% year over year, driven by Hertz’s strongest second quarter Revenue per Day (RPD) on record, excluding the pandemic peak in 2022. Year-over-year Revenue per Unit (RPU) and RPD metrics continued reflecting sequential improvements, with RPU up 8% and RPD up 9% through strong pricing performance. GAAP net income for the quarter totaled $64 million and Diluted GAAP EPS was $0.05. Adjusted net loss was $47 million and Adjusted Diluted EPS was $(0.11). Adjusted Corporate EBITDA was $81 million, representing a $63 million year-over-year improvement and coming in above the top end of revised guidance. Total Utilization was 79% in the second quarter, an increase of 80 basis points year-over-year; excluding elevated recalls, Total Utilization was 81%, up 190 basis points compared to the second quarter of 2025. Net Depreciation per Unit per Month (Net DPU) was $302 in the second quarter, consistent with the Company's revised guidance. Hertz's U.S. core fleet now consists of approximately 94% model year 2025 and 2026 vehicles. Adjusted Direct Operating Expense (DOE) per Day increased 4% year over year; slightly higher than the Company's expectations, due primarily to higher revenue-related variable costs and higher expenses related to sale leaseback transactions. When normalizing for these factors and the Days impact of recalls, Adjusted DOE per Day improved approximately 2% year over year. The spread between RPD and DOE per Day improved by 17% on a year-over-year basis, representing the third consecutive quarter of year-over-year spread improvement. Hertz ended the second quarter with approximately $984 million of liquidity, in line with its prior guidance of just under $1 billion. The Company continues to view liquidity as a growth enabler and remains confident in its ability to fund the business and execute its transformation. The Company’s operating affiliate, Oro Mobility, is gaining momentum. Oro drivers have completed more than six million miles to date and its first AV partnership is progressing and expected to begin operations later this year in the San Francisco Bay Area. Q2 SUMMARY Hertz's second quarter results reflect continued progress in its transformation strategy, with disciplined commercial execution driving strong performance across the business. The Company delivered $2.4 billion in revenue, up 10% year over year. Continued commercial momentum drove RPU above both the Company's expectations and its North Star target, increasing 8% year over year despite elevated recalls. RPD increased 9%, which was Hertz's strongest second quarter RPD on record, excluding the pandemic peak in 2022. This performance was driven by the continued strength of Hertz’s commercial playbook and its ability to maintain strong supply discipline at airports, as well as a small incremental bonus from the World Cup. As a result of this continued momentum, backed by a more balanced industry supply-demand environment, Hertz’s full-year RPU is expected to trend above its North Star target of $1,500. The Company produced Net DPU in line with its revised expectations at $302. Forward views on residual values remain stable, and through its disciplined fleet strategy, Hertz expects to achieve its Net DPU target of at or below $300 for the full year. The Company now holds its youngest fleet in a dozen years, with 94% of its U.S. core fleet now comprised of model year 2025 and 2026 vehicles, which Hertz expects will produce better economics than prior model year vehicles. Adjusted DOE per Day was $37.49, which was slightly higher than the Company's expectations, driven primarily by higher revenue-related variable costs and higher expenses related to sale leaseback transactions. When normalizing for these factors and the Days impact of recalls, Adjusted DOE per Day improved approximately 2% year over year. As revenue increases, certain operating costs move in tandem, emphasizing the importance of the Company’s RPD-to-DOE per Day spread, which improved 17% year over year, marking the third consecutive quarter of year-over-year spread improvement. Recall activity was approximately 300% higher year over year and continued to be a measurable headwind to the business, impacting an average of nearly 15,000 vehicles. The estimated year-over-year impact to GAAP Net Income was $27 million and Adjusted Corporate EBITDA was approximately $30 million. Despite that, the Company still produced a significant year-over-year increase in Adjusted Corporate EBITDA. Hertz ended the quarter with $984 million of liquidity, which includes cash and cash equivalents and the available capacity under our revolving credit facility. This was in line with the Company's guidance of just under $1 billion. In June, the Company completed the issuance of Exchangeable First Lien Notes Due 2030 for a total of $350 million, which used capacity created through expiring revolving commitments as well as from term loan amortization. In addition, Hertz added an additional $30 million of notes in July as part of the exercising of the greenshoe, bringing the Company's pro forma liquidity post transaction to slightly over $1 billion. PLATFORM FOR GROWTH Hertz's transformation continues to focus on two complementary objectives: strengthening its core rental business while building a diversified platform for long-term growth. The Company's platform spans Rent-a-Car, Service, Fleet, and Mobility, each with unique potential to scale, and collectively benefiting from Hertz's operational, commercial, and fleet management capabilities. During the second quarter, Hertz advanced several of its highest-priority platform initiatives. It has made great strides in shoring up its Rent-a-Car business. One of the greatest opportunities remains more effectively leveraging the power of the Hertz brand. The Company is focused on realizing the full potential of its franchise business and is evaluating near-term opportunities across its global footprint through both whitespace expansion and conversion activity. In Fleet, building on its unique competitive advantage as one of the largest dealers in the country, the Company is exploring how to deepen existing relationships with the leading used car companies and establish new partnerships with best-in-class retailers. Hertz continued enhancing its direct retail channels via Hertz Car Sales by growing retail sales volumes, reducing reconditioning costs, and delivering strong F&I performance. In Mobility, Hertz’s affiliated operating company, Oro, is gaining momentum. Through its driver-led managed fleet business, in which it maintains and operates vehicles for drivers supporting rideshare platforms, Oro is now active in four markets, and its drivers have logged over six million miles to date. This business validates Oro’s ability to deliver turnkey fleet solutions at scale today, while also creating a pathway to operating AV fleets at scale. Oro's first AV partnership with Uber's robotaxi program, supporting Lucid vehicles equipped with Nuro autonomous technology, is on track to begin operations later this year in the San Francisco Bay Area. EARNINGS WEBCAST INFORMATION Hertz Global's live webcast and conference call to discuss its second quarter 2026 results will be held on August 6, 2026 at 9:00 a.m. Eastern Time. The conference call will be broadcast live in listen-only mode on the Company’s Investor Relations website at IR.Hertz.com. If you would like to access the call by phone and ask a question, please go to https://events.q4inc.com/analyst/801751158?pwd=MrFxkOG4, and you will be provided with dial in details. Investors are encouraged to dial in approximately 15 minutes prior to the call. A web replay will remain available on the website for approximately one year. The earnings release and related supplemental schedules containing the reconciliations of non-GAAP measures will be available on the Hertz website, IR.Hertz.com. ABOUT HERTZ Hertz Global Holdings, Inc. is one of the world’s leading car rental and mobility solutions providers. Its subsidiaries, including The Hertz Corporation, and licensees operate the Hertz, Dollar, Thrifty, and Firefly vehicle rental brands, with approximately 11,000 rental locations in 160 countries around the globe. The Company also operates the Hertz Car Sales brand, which offers a range of quality, competitively priced used cars for sale online and at locations across the United States, and the Hertz 24/7 car-sharing business in Europe. The Company’s operating affiliate, Oro Mobility, provides integrated driver-led and autonomous fleet management solutions across a range of mobility segments. For more information about Hertz, visit www.hertz.com. UNAUDITED FINANCIAL DATA, SUPPLEMENTAL SCHEDULES, NON-GAAP MEASURES AND DEFINITIONS In this earnings release, we include select unaudited financial data of Hertz Global, Supplemental Schedules, which are provided to present segment results, and reconciliations of non-GAAP measures to their most comparable GAAP measures. Following the Supplemental Schedules, the Company provides definitions for terminology used throughout the earnings release and the Company’s rationale regarding the importance and usefulness of non-GAAP measures for investors and management. Effective in the first quarter of 2026, the Company revised its definition of Adjusted Net Income (Loss) and Adjusted Corporate EBITDA to adjust for realized (gains) losses from financial instruments, share-based compensation expense and foreign currency (gains) losses. The update was made in an effort to better reflect management's view of ongoing operations and operational performance. The presentation of the prior period has been recast to conform to the current period presentation. Also effective in the first quarter of 2026, the Company changed its definition of Average Rentable Vehicles and Average Vehicles to use a daily average of vehicles as opposed to a simple average of vehicles at the beginning and end of a period, which the Company believes is a better, more accurate measure of its vehicles. The presentation of the prior period has been recast to conform to the current period presentation. We have not reconciled Adjusted Corporate EBITDA for the quarter-ended September 30, 2026, the fiscal year ended December 31, 2026, or the fiscal year ended December 31, 2027 to GAAP net income or loss as a result of uncertainty regarding, and the potential variability of, reconciling items such as the change in fair value of Public Warrants, as this adjustment is directly impacted by unpredictable fluctuations in our stock price and the volume of warrants exercised during the period. Accordingly, a reconciliation is not available without unreasonable effort, although it is important to note that these factors could be material to our results calculated in accordance with GAAP. CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS Certain statements contained or incorporated by reference in this release, and in related comments by the Company's management, include "forward-looking statements." Forward-looking statements are identified by words such as "believe," "expect," "project," "potential," "anticipate," "intend," "plan," "estimate," "seek," "will," "may," "would," "should," "could," "forecasts," "guidance" or similar expressions, and include information concerning our liquidity, our results of operations, our business strategies, economic and industry conditions and other information. These forward-looking statements are based on certain assumptions that the Company has made in light of its experience in the industry, as well as its perceptions of historical trends, current conditions, expected future developments and other factors. The Company believes these judgments are reasonable, but you should understand that these forward-looking statements are not guarantees of future performance or results, and that the Company’s actual results could differ materially from those expressed in the forward-looking statements due to a variety of important factors, both positive and negative, that may be revised or supplemented in subsequent reports, such as Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed or furnished to the SEC. Important factors that could affect the Company's actual results and cause them to differ materially from those expressed in forward-looking statements include, among other things. mix of program and non-program vehicles in the Company's fleet, which can lead to increased exposure to residual value risk upon disposition; the potential for residual values associated with non-program vehicles in the Company's fleet to decline, including suddenly or unexpectedly, or fail to follow historical seasonal patterns; the Company's ability to purchase adequate supplies of competitively priced vehicles at a reasonable cost in order to efficiently service rental demand, including upon any disruptions in the global supply chain; the Company's ability to effectively dispose of vehicles, at the times and through the channels, that maximize the Company's returns; the age of the Company's fleet, and its impact on vehicle carrying costs, customer service scores, as well as on the Company's ability to sell vehicles at acceptable prices and times; disruptions in the supply chain, including in connection with any increases in tariffs or changes in tariff policies or trade agreements; whether a manufacturer of the Company's program vehicle fulfills its repurchase obligations; the frequency or extent of manufacturer safety recalls; levels of travel demand, particularly business and leisure travel in the U.S. and in global markets; seasonality and other occurrences that disrupt rental activity during the Company's peak periods, including in critical geographies; the Company's ability to accurately estimate future levels of rental activity and adjust the number, location and mix of vehicles used in the Company's rental operations accordingly; the Company's ability to implement its business strategy or strategic transactions, including the Company's ability to implement plans to support a modern mobility ecosystem and Oro Mobility's partnership with Uber; the Company's ability to achieve cost savings and normalized depreciation levels, as well as revenue enhancements from its profitability initiatives and other operational programs; the Company's ability to adequately respond to changes in technology impacting the mobility industry; significant changes in the competitive environment and the effect of competition in the Company's markets on rental volume and pricing; the Company's reliance on third-party distribution channels and related prices, commission structures and transaction volumes; the Company's ability to offer services for a favorable customer experience, and to retain and develop customer loyalty and market share; the Company's ability to maintain its network of leases and vehicle rental concessions at airports and other key locations in the U.S. and internationally; the Company's ability to maintain favorable brand recognition and a coordinated branding and portfolio strategy; the Company's ability to attract and retain effective front-line employees, senior management and other key employees; the Company's ability to effectively manage its union relations and labor agreement negotiations; the Company's ability to manage and respond to cybersecurity threats and cyber attacks on the Company's information technology systems or those of the Company's third-party providers; the Company's ability, and that of the Company's key third-party partners, to prevent the misuse or theft of information the Company possesses, including as a result of cyber attacks and other security threats; the Company's ability to evaluate, maintain, upgrade and consolidate its information technology systems; the Company's ability to comply with current and future laws and regulations in the U.S. and internationally regarding data protection, data security and privacy risks; risks associated with operating in many different countries, including the risk of a violation or alleged violation of applicable anti-corruption or anti-bribery laws and the Company's ability to repatriate cash from non-U.S. affiliates without adverse tax consequences; risks relating to tax laws and those tax laws that affect the Company's ability to recapture accelerated tax depreciation and expensing, as well as any adverse determinations or rulings by tax authorities; the Company's ability to utilize its net operating loss carryforwards; the Company's exposure to uninsured liabilities relating to personal injury, death and property damage, or otherwise, including material litigation; the potential for adverse changes in laws, regulations, policies or other activities of governments, agencies and similar organizations, including those related to environmental matters, optional insurance products or policies, franchising and licensing matters, the ability to pass-through rental car related expenses or taxes, among others, that affect the Company's operations, the Company's costs or applicable tax rates; the risk of an impairment of the Company's long-lived assets, which risk could be impacted by, among other things, the timing of our fleet rotation; the Company's ability to recover its goodwill and indefinite-lived intangible assets when performing impairment analysis; the potential for changes in management's best estimates and assessments; the Company's ability to maintain an effective compliance program; the availability of earnings and funds from the Company's subsidiaries; the Company's ability to comply, and the cost and burden of complying, with corporate and social responsibility regulations or expectations of stakeholders, and otherwise advance the Company's corporate responsibility priorities; the availability of additional, or continued sources, of financing at acceptable rates for the Company's revenue earning vehicles and to refinance the Company's existing indebtedness, and the Company's ability to comply with the covenants in the agreements governing its indebtedness; the extent to which the Company's consolidated assets secure its outstanding indebtedness; volatility in the Company's share price, the Company's ownership structure and certain provisions of the Company's charter documents, which could, among other things, negatively affect the market price of the Company's common stock; the Company's ability to implement an effective business continuity plan to protect the business in exigent circumstances; the Company's ability to maintain effective internal control over financial reporting; and the Company's ability to execute strategic transactions. Additional information concerning these and other factors can be found in the Company's filings with the SEC, including its Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. You should not place undue reliance on forward-looking statements. All forward-looking statements attributable to the Company, or persons acting on its behalf, are expressly qualified in their entirety by the foregoing cautionary statements. All such statements speak only as of the date of this release, and, except as required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. NON-GAAP MEASURES AND KEY METRICS The term "GAAP" refers to accounting principles generally accepted in the United States. Adjusted EBITDA is the Company's segment measure of profitability and complies with GAAP when used in that context. NON-GAAP MEASURES Non-GAAP measures are not recognized measurements under GAAP. When evaluating the Company's operating performance or liquidity, investors should not consider non-GAAP measures in isolation of, superior to, or as a substitute for measures of the Company's financial performance as determined in accordance with GAAP. Adjusted Net Income (Loss) and Adjusted Diluted Earnings (Loss) Per Share ("Adjusted EPS") Adjusted Net Income (Loss) represents income or loss attributable to the Company as adjusted to eliminate the impact of GAAP income tax; vehicle and non-vehicle debt-related charges; restructuring and restructuring related charges; acquisition accounting-related depreciation and amortization; net (gains) losses on financial instruments; share-based compensation expense; foreign currency (gains) losses; change in fair value of Public Warrants; (gain) on sale of non-vehicle capital assets and certain other miscellaneous or non-recurring items on a pre-tax basis. Effective in the first quarter of 2026, the Company revised its definition of Adjusted Net Income (Loss) to adjust for realized (gains) losses from financial instruments, share-based compensation expense and foreign currency (gains) losses in an effort to better align with the management's view of the Company's ongoing operations and its operational performance. The presentation of the prior periods has been recast to conform to the current period presentation. Adjusted Net Income (Loss) includes a provision (benefit) for income taxes derived utilizing a combined statutory rate. The combined statutory rate is management's estimate of the Company's long-term tax rate. Its most comparable GAAP measure is net income (loss). Adjusted EPS represents Adjusted Net Income (Loss) on a per diluted share basis using the weighted-average number of diluted shares outstanding for the period. Its most comparable GAAP measure is diluted earnings (loss) per share. Adjusted Net Income (Loss) and Adjusted EPS are important operating metrics because they allow management and investors to assess operational performance of the Company's business, exclusive of the items mentioned above that are not operational in nature or comparable to those of the Company's competitors. Adjusted Corporate EBITDA and Adjusted Corporate EBITDA Margin Adjusted Corporate EBITDA represents income or loss attributable to the Company as adjusted to eliminate the impact of GAAP income tax; non-vehicle depreciation and amortization; non-vehicle debt interest, net; vehicle debt-related charges; restructuring and restructuring related charges; net (gains) losses on financial instruments; share-based compensation expense; foreign currency (gains) losses; change in fair value of Public Warrants; (gain) on sale of non-vehicle capital assets and certain other miscellaneous or non-recurring items. Effective in the first quarter of 2026, the Company revised its definition of Adjusted Corporate EBITDA to adjust for realized (gains) losses from financial instruments, share-based compensation expense and foreign currency (gains) losses. The update was made in an effort to better align with management's view of the Company's ongoing operations and its operational performance. The presentation of the prior periods has been recast to conform to the current period presentation. Adjusted Corporate EBITDA Margin is calculated as the ratio of Adjusted Corporate EBITDA to total revenues. Management uses these measures as operating performance metrics for internal monitoring and planning purposes, including the preparation of the Company's annual operating budget and monthly operating reviews, and analysis of investment decisions, profitability and performance trends. These measures enable management and investors to isolate the effects on profitability of operating metrics most meaningful to the business of renting and leasing vehicles. They also allow management and investors to assess the performance of the entire business on the same basis as its reportable segments. Adjusted Corporate EBITDA is also utilized in the determination of certain executive compensation. Its most comparable GAAP measure is net income (loss) attributable to the Company. Adjusted Direct Operating Expense per Transaction Day ("Adjusted DOE per Transaction Day") Adjusted DOE per Transaction Day is calculated as Direct Operating Expenses - as reported, exclusive of the impacts of foreign currency exchange rates and adjustments for certain other miscellaneous or non-recurring items, divided by the number of Transaction Days during the period. Adjusted DOE per Transaction Day is important to management and investors as it measures the Company’s cost efficiency on a per unit basis excluding the impact of variable direct operating expense fluctuations attributable to changes in volume, so as not to affect the comparability of underlying trends. Its most comparable GAAP measure is DOE per Transaction Day. Adjusted operating cash flow and adjusted free cash flow Adjusted operating cash flow represents net cash provided by operating activities net of the non-cash add back for vehicle depreciation and reserves, and exclusive of bankruptcy related payments made post emergence. Adjusted operating cash flow is an important performance measure to management and investors as it provides useful information about the amount of cash generated from operations when fully burdened by fleet costs. Adjusted free cash flow represents adjusted operating cash flow plus the impact of net non-vehicle capital expenditures and net fleet growth after financing. Adjusted free cash flow is an important performance measure to management and investors as it provides useful information about the amount of cash available for, but not limited to, the reduction of non-vehicle debt, share repurchase and acquisition. The most comparable GAAP measure for adjusted operating cash flow and adjusted free cash flow is net cash provided by (used in) operating activities. Net Fleet Growth After Financing U.S. and International Rental Car segments Fleet Growth is defined as revenue earning vehicles expenditures, net of proceeds from disposals, plus vehicle depreciation and net vehicle financing, which includes borrowings, repayments and the change in restricted cash associated with vehicles. Fleet Growth is important as it allows the Company to assess the cash flow required to support its investment in revenue earning vehicles. Net Non-vehicle Debt Net Non-vehicle Debt is calculated as non-vehicle debt as reported on the Hertz Global's balance sheet, excluding the impact of unamortized debt issuance costs associated with non-vehicle debt (including the Share Lending Agreement), less cash and cash equivalents. Non-vehicle debt consists of the Company's First Lien RCF, term loans, First Lien Senior Notes, Exchangeable First Lien Notes Due 2030, Exchangeable Notes Due 2029, Exchangeable Notes Due 2030, senior unsecured notes and certain other non-vehicle indebtedness of its domestic and foreign subsidiaries. Net Non-vehicle Debt is important to management and investors as it helps measure the Company's corporate leverage. Net Non-vehicle Debt also assists in the evaluation of the Company's ability to service its non-vehicle debt without reference to the expense associated with the vehicle debt, which is collateralized by assets not available to lenders under the non-vehicle debt facilities. Net Vehicle Debt Net Vehicle Debt is calculated as vehicle debt as reported on the Company's balance sheet, excluding the impact of unamortized debt issue costs associated with vehicle debt, less restricted cash associated with vehicles. Restricted cash associated with vehicle debt is restricted for the purchase of revenue earning vehicles and other specified uses under the Company's vehicle debt facilities. Net Vehicle Debt is important to management, investors and ratings agencies as it helps measure the Company's leverage with respect to its vehicle assets. Total Net Debt Total Net Debt is calculated as total debt as reported on the Hertz Global's balance sheet, excluding the impact of unamortized debt issuance costs (including the Share Lending Agreement), less total cash and cash equivalents and restricted cash associated with vehicle debt. Unamortized debt issuance costs are required to be reported as a deduction from the carrying amount of the related debt obligation under GAAP. Management believes that eliminating the effects that these costs have on debt will more accurately reflect the Company's net debt position. Total Net Debt is important to management, investors and ratings agencies as it helps measure the Company's gross leverage. Net Corporate Leverage Net Corporate Leverage is calculated as non-vehicle net debt divided by Adjusted Corporate EBITDA for the last twelve months. Net Corporate Leverage is important to management and investors as it measures the Company's corporate leverage net of unrestricted cash. Net Corporate Leverage also assists in the evaluation of the Company's ability to service its non-vehicle debt with reference to the generation of Adjusted Corporate EBITDA. KEY METRICS Available Car Days Available Car Days represents Average Rentable Vehicles multiplied by the number of days in a given period. Average Vehicles ("Total Fleet Capacity" or "Total Capacity") Average Vehicles is determined using a daily average of the number of vehicles in the fleet whether owned or leased by the Company. Effective in the first quarter of 2026, we changed our definition of Average Vehicles to use a daily average of vehicles as opposed to a simple average of vehicles at the beginning and end of a period. The Company believes this a better, more accurate measure of our vehicles. The prior periods have been recast to reflect this change. Average Rentable Vehicles ("Rentable Fleet Capacity") Average Rentable Vehicles reflects Average Vehicles excluding vehicles for sale on the Company’s retail lots or actively in the process of being sold through other disposition channels. Effective in the first quarter of 2026, the Company changed its definition of Average Rentable Vehicles to use a daily average of rentable vehicles as opposed to a simple average of rentable vehicles at the beginning and end of a period. The Company believes this a better, more accurate measure of its rentable vehicles. The prior periods have been recast to reflect this change. Depreciation Per Unit Per Month ("Depreciation Per Unit" or "DPU") Depreciation Per Unit Per Month represents the amount of average depreciation expense and lease charges per vehicle per month, exclusive of the impacts of foreign currency exchange rates so as not to affect the comparability of underlying trends. This metric is important to management and investors as it reflects how effectively the Company is managing the costs of its vehicles and facilitates comparisons with other participants in the vehicle rental industry. Total Available Car Days Total Available Car Days represents Average Vehicles multiplied by the number of days in a given period. Total Revenue Per Transaction Day ("Total RPD" or "RPD"; also referred to as "pricing") Total RPD represents revenue generated per transaction day, excluding the impact of foreign currency exchange rates so as not to affect the comparability of underlying trends. This metric is important to management and investors as it represents a measure of changes in the underlying pricing in the vehicle rental business and encompasses the elements in vehicle rental pricing that management has the ability to control. Total Revenue Per Unit Per Month ("Total RPU", "RPU" or "Total RPU Per Month") Total RPU Per Month represents the amount of revenue generated per vehicle in the rental fleet each month, excluding the impact of foreign currency exchange rates so as not to affect the comparability of underlying trends. This metric is important to management and investors as it provides a measure of revenue productivity relative to the number of vehicles in our rental fleet whether owned or leased, or asset efficiency. Transaction Days ("Days"; also referred to as "volume") Transaction Days represents the total number of 24-hour periods, with any partial period counted as one Transaction Day, that vehicles were on rent (the period between when a rental contract is opened and closed) in a given period. Thus, it is possible for a vehicle to attain more than one Transaction Day in a 24-hour period. This metric is important to management and investors as it represents the number of revenue-generating days. Total Vehicle Utilization ("Total Utilization") Total Vehicle Utilization represents the ratio of Transaction Days to Total Available Car Days. This metric is important to management and investors as it is the measurement of the proportion of vehicles that are being used to generate revenues relative to Total Fleet Capacity. Operational Vehicle Utilization ("Utilization") Operational Vehicle Utilization represents the ratio of Transaction Days to Available Car Days. This metric is important to management and investors as it is the measurement of the proportion of vehicles that are being used to generate revenues relative to Rentable Fleet Capacity. View source version on businesswire.com: https://www.businesswire.com/news/home/20260806701738/en/ Contacts Hertz Investor Relations:[email protected] Hertz Media Relations:[email protected]

Interested in Verra Mobility Corp? Here are five stocks we like better. Second-quarter results exceeded expectations: Revenue growth in Government Solutions and Commercial Services, stronger collections and improved operations helped drive $111 million in adjusted EBITDA and $33 million in free cash flow. However, Verra Mobility recorded a $48 million GAAP net loss after a $104 million non-cash impairment charge tied to T2 Systems. Rental-car contract renewals reduced the outlook: New seven-year and five-year agreements with Avis Budget Group and Hertz provide longer-term visibility but carry less favorable pricing and flexible fleet-volume terms. Verra Mobility now expects 2026 revenue of $945 million-$965 million and adjusted EBITDA of $360 million-$370 million. Growth investments and restructuring continue: The company was selected for automated speed-enforcement programs in Los Angeles and all six California cities authorized under AB 645, while pursuing an expected $20 million in annualized cost savings. Management is prioritizing cash preservation and balance-sheet strength despite having $66 million remaining under its share-repurchase authorization. 3 Stocks You’ll Love to Own, But Hate To Encounter Verra Mobility (NASDAQ:VRRM) reported second-quarter results that exceeded its internal expectations, supported by New York City camera-installation timing, operational improvements and stronger collections in its Commercial Services segment. However, the company lowered its full-year outlook after renewing major rental-car customer agreements on terms that Chief Financial Officer Craig Conti said were materially less favorable than prior contracts. The company announced a new seven-year tolling and violation-services agreement with Avis Budget Group and a new five-year agreement with Hertz. The Avis agreement follows a termination notice received in May, while the Hertz renewal was completed ahead of its expected 2027 renegotiation period. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control Verra Mobility Stock Has Returned Back to the Station “Together, the ABG and Hertz agreements represent meaningful progress towards stabilizing our Commercial Services customer base,” Interim Chief Executive Officer Jon Keyser said. He said the agreements reflect the company’s technology, integrations, operating scale and efforts to establish more flexible, customer-focused partnerships. Government Solutions service revenue increased 17% year over year in the second quarter, driven by New York City camera installations and 8% service-revenue growth outside New York City. Within New York City, service revenue rose 36% from a year earlier as incremental camera installations exceeded the impact of revised contract pricing, Conti said. → 3 Drone Stocks That Should Soar After the Summer Slump If You Hate Speed Cameras, Then You’ll Like Verra Mobility Stock Verra Mobility had experienced weather-related delays in New York City installations during the first quarter, but Conti said the company caught up during the second quarter and returned to its anticipated installation level by the end of the first half. Commercial Services revenue rose 6% year over year, including a 5% increase in rental-car tolling revenue and 3% growth in fleet-management revenue. Rental-car tolling growth was driven by product adoption and tolling activity despite a 1% decline in U.S. travel volume compared with the prior-year quarter. Commercial Services profit margin expanded 100 basis points, aided by operating leverage and lower bad-debt expense from improved collections. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Parking Solutions generated $20 million in revenue and roughly $2 million in segment profit. SaaS and services sales rose approximately 1%, while product revenue was effectively flat. Segment margins declined 465 basis points year over year because of product-sales mix and the timing of operating expenses. Consolidated adjusted EBITDA was $111 million. GAAP net loss was $48 million, reflecting a $104 million non-cash goodwill and intangible-asset impairment charge related to T2 Systems. GAAP diluted loss per share was $0.32, compared with income of $0.24 per share a year earlier. Adjusted EPS was $0.38, compared with $0.34 in the second quarter of 2025. Operating cash flow was $56 million, while free cash flow totaled approximately $33 million. Government Solutions recorded $25 million in new annual recurring revenue and contract awards during the quarter, including work-zone speed and school-bus stop-arm programs. Over the trailing 12 months, new incremental annual recurring revenue bookings totaled about $74 million. Keyser said Verra Mobility was selected as the automated speed-safety vendor for Los Angeles and is negotiating the final contract. He said the company expects approximately $10 million in annual recurring revenue from the agreement once finalized. California Assembly Bill 645 authorized speed-enforcement pilots in six cities. Keyser said Verra Mobility has been selected as technology partner by all six cities authorized under the legislation. The company also cited safety outcomes from existing programs, including a 28% reduction in red-light violations within the first 60 days of San José’s program and a nearly 50% decline in traffic fatalities in Merced. Conti said the Avis Budget and Hertz agreements provide longer contractual visibility but carry lower pricing than the prior arrangements and permit customers to modulate fleet volumes. The new commercial terms took effect immediately. Verra Mobility now expects 2026 total revenue of $945 million to $965 million and adjusted EBITDA of $360 million to $370 million, implying an adjusted EBITDA margin of about 38%. The company forecast adjusted EPS of $1.11 to $1.17 and free cash flow of $105 million to $115 million. The free-cash-flow outlook includes higher capital spending than previously anticipated, primarily for Government Solutions implementation work tied to the accelerated Los Angeles Metro contract award and school-bus stop-arm awards. The company also expects a $30 million working-capital use, largely related to rental-car contract renewals and the timing of New York City installation expenditures and collections. Commercial Services revenue is now expected to decline in the negative high-single-digit range for the full year compared with 2025, as growth decelerates in the third and fourth quarters. The company expects full-year Commercial Services segment margins in the low 60% range. Government Solutions is expected to produce total revenue growth at the high end of the mid-single-digit range for 2026. The company continues to expect segment profit margins to contract by roughly 450 to 500 basis points from 2025, largely due to New York City pricing adjustments and subcontractor requirements. Parking Solutions revenue is projected to rise low to mid-single digits, with margins slightly accretive to 2025. Keyser said Verra Mobility has reorganized its customer-facing operations, appointing Stacey Moser as chief customer officer and unifying sales, account management and marketing leadership across its major commercial and government businesses. The company is also pursuing approximately $20 million in annualized cost reductions, with full run-rate savings expected beginning in 2027. Conti said the principal headcount actions have been completed, while the company continues to examine non-labor spending, procurement, third-party costs, roadside customer service and operational processes. Verra Mobility ended the quarter with approximately $1 billion in net debt and net leverage of 2.4 times. Its credit revolver was fully repaid and undrawn at quarter-end. The company had $66 million remaining under its $250 million share-repurchase authorization, though Conti said the current priority is strengthening the balance sheet and building cash reserves. Management is also evaluating whether its evolving organizational structure could result in changes to operating and reportable segments, potentially including reporting as a single operating and reportable segment. No reporting changes were made for the second quarter. Verra Mobility, traded on the Nasdaq under the ticker VRRM, is a leading provider of smart mobility solutions designed to improve safety, efficiency and compliance for transportation authorities and commercial fleets. The company develops and operates automated traffic enforcement systems, toll and violation management platforms, and connected-vehicle services. Through its technology offerings, Verra Mobility helps public agencies enhance road safety, reduce congestion and streamline revenue collection for tolling and parking. Verra Mobility’s core products include red-light and speed-camera enforcement programs, license plate recognition systems, and cloud-based violation processing software. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Verra Mobility Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.