Hertz Global Holdings, Inc. (HTZ): History, Ownership, Mission, How It Works & Makes Money

How does a company like Hertz Global Holdings, Inc. (HTZ), currently valued at a market capitalization of roughly $1.59 Billion, manage to execute a dramatic financial turnaround in a market still grappling with fleet depreciation and pricing pressure? Honestly, you need to look past the stock price noise and focus on the operational shifts, like the Q3 2025 net income surge to $184 Million, which represents a massive 113.8% positive swing from the prior year's loss.

This kind of performance is defintely driven by a disciplined fleet strategy-the core of their business-not luck, and their Q2 2025 achievement of a Depreciation Per Unit (DPU) of just $251 proves that their cost controls are working. So, if you want to understand the true value proposition, the ownership structure, and the mechanics that allow them to generate Q3 revenue of $2.48 Billion, you need to dive deeper into how this century-old company actually works and makes money today.

Hertz Global Holdings, Inc. (HTZ) History

Hertz Global Holdings, Inc. has a storied, century-long history, evolving from a small, Chicago-based car rental operation into a global mobility giant. The company's trajectory is a case study in corporate resilience, marked by multiple ownership changes, a significant bankruptcy, and a sharp, data-driven turnaround focused on fleet management and core profitability in 2025.

Given Company's Founding Timeline

Year established

The company traces its roots back to 1918, starting as a local car rental service.

Original location

The operation began in Chicago, Illinois, a strategic location for early business expansion.

Founding team members

The founder was Walter L. Jacobs, who started the business at just 22 years old.

Initial capital/funding

Jacobs started with a modest fleet of a dozen Ford Model T cars. His entrepreneurial success was immediate; by 1923, the business was generating annual revenues of approximately $1 million.

Given Company's Evolution Milestones

Given Company's Transformative Moments

Hertz's history is a cycle of deep corporate shifts, but the recent turnaround is defintely the most critical for investors right now. The company has navigated multiple ownership structures-from entrepreneurs to General Motors, RCA, UAL Corporation, and Ford Motor Company-before a private equity sale in 2005 and a return to the public markets.

The 2020 bankruptcy and the subsequent 2021 re-listing were transformative. The company's post-2021 strategy included an ambitious, but ultimately challenging, electric vehicle (EV) initiative. This led to a major fleet management pivot in 2024-2025 under new leadership.

The 2025 'Back-to-Basics Roadmap' is the current defining moment. It focuses on disciplined fleet management, which is the core of this asset-heavy business. Here's the quick math on the impact:

• Depreciation Per Unit (DPU) Control: The company achieved a DPU of $251 in Q2 2025, significantly exceeding its goal of sub-$300 DPU. This is a 16% beat on a key profitability metric.
• Fleet Modernization: Over 70% of the core U.S. rental fleet is now 12 months old or newer, improving customer experience and lowering maintenance costs.
• Cost Efficiency: Q1 2025 saw a $92 million improvement in direct operating expenses year-over-year. This is real money flowing to the bottom line.

The goal is to strengthen the core economics of the business before chasing growth. This strategic focus drove Q2 2025 total revenues to $2.22 billion and delivered positive Adjusted Corporate EBITDA, a clear indication the strategy is working. You can dig deeper into the current shareholder base and motivations by Exploring Hertz Global Holdings, Inc. (HTZ) Investor Profile: Who's Buying and Why?

Hertz Global Holdings, Inc. (HTZ) Ownership Structure

Hertz Global Holdings, Inc. operates as a publicly traded company on the Nasdaq Global Select Market under the ticker symbol HTZ, but its ownership is heavily concentrated among a few major institutional investors following its 2021 emergence from bankruptcy.

This structure means a significant portion of the company's strategic direction is influenced by a handful of large funds, so you defintely need to watch their 13F filings for any shifts in conviction. To understand the full picture of who is steering the company, you should also check Exploring Hertz Global Holdings, Inc. (HTZ) Investor Profile: Who's Buying and Why?

Given Company's Current Status

Hertz Global Holdings, Inc. is a publicly traded corporation listed on the Nasdaq exchange. This public status subjects the company to rigorous reporting requirements from the Securities and Exchange Commission (SEC), ensuring a degree of transparency for all stakeholders.

The company's market capitalization, as of the 2025 fiscal year, has seen volatility, but its ability to raise capital-like the upsized $375 million Exchangeable Senior Notes offering in September 2025-demonstrates continued access to public and private debt markets. One quick takeaway: public status gives them capital access, but also exposes them to market sentiment swings.

Given Company's Ownership Breakdown

The ownership structure is dominated by institutional investors, particularly those who converted debt to equity during the company's restructuring. Knighthead Capital Management, LLC, a key player in the reorganization, holds the largest single stake, which gives them substantial influence over governance and strategy.

Here's the quick math on the shareholder breakdown, based on filings closest to November 2025:

Given Company's Leadership

The executive team, which has seen significant changes in 2025, is focused on operational excellence and fleet management, especially after the company's recent strategic shifts. The average tenure of the management team is relatively short at approximately 1.3 years, reflecting the post-restructuring and transformation phase.

The leadership team steering Hertz Global Holdings, Inc. as of November 2025 includes:

• Wayne "Gil" West: Chief Executive Officer (CEO), appointed April 2024, focusing on operational execution.
• Scott Haralson: Executive Vice President and Chief Financial Officer (CFO).
• Mike Moore: Executive Vice President and Chief Operating Officer (COO), promoted in October 2025, overseeing day-to-day operations.
• Chris Berg: Executive Vice President and Chief Administrative Officer, joined in January 2025, managing procurement and real estate.
• Jyoti Chopra: Executive Vice President and Chief Human Resources Officer, appointed in November 2025, responsible for the company's people strategy.
• Dhriti Saha: Executive Vice President, Chief Information and Technology Officer, appointed in September 2025, leading global technology strategy.

The CEO, Gil West, holds approximately 0.2% of the company's shares directly, valued at about $3.59 million, which is a small but material stake. This new team is definitely under pressure to deliver on the Q3 2025 return to positive EPS.

Hertz Global Holdings, Inc. (HTZ) Mission and Values

Hertz Global Holdings, Inc.'s core purpose extends beyond simply renting cars; it is a dual mandate focused on being the most customer-centric and cost-efficient mobility provider while continuously improving shareholder value. This cultural DNA drives the company's strategic pivot from a traditional rental service to a broader mobility platform.

You're looking for the foundational principles that guide a turnaround story like Hertz, especially after they've made major shifts in fleet strategy, like moving their U.S. fleet to an average age of under 12 months by Q3 2025. That strategic focus on a newer fleet directly supports their mission to deliver better customer experiences and cost efficiency. It's all connected.

Hertz Global Holdings, Inc.'s Core Purpose

The company's purpose is to cement its global leadership by balancing operational excellence with a commitment to its people and partners. This is an asset management business that buys, rents, and sells vehicles, so disciplined execution is defintely the key to stronger returns.

Official mission statement

Hertz's mission is clear and precise, focusing on operational dominance and financial returns:

• Be the most customer focused, cost efficient vehicle and equipment rental / leasing company in every market served.
• Strengthen leading worldwide positions through a shared value culture of employee and partner involvement.
• Continuously improve shareholder value, which is the overarching focus of all activities.

Here's the quick math on that focus: operational improvements led to Q1 2025 vehicle depreciation being down 45% year-over-year, which is a massive win for cost efficiency and shareholder value.

Vision statement

The vision for Hertz Global Holdings, Inc. is a forward-looking roadmap that expands their role beyond the traditional rental counter, aiming for total mobility solutions.

• Be the first-choice brand for vehicle and equipment rental / leasing and total mobility solutions.
• Build a value-creating mobility platform spanning rent-a-car, fleet, service, and other complementary revenue streams.

This vision is why you see them expanding direct-to-consumer channels like Hertz Car Sales, which is positioned to capture an incremental margin benefit of $2,000 or more per vehicle versus wholesale channels. For a deeper analysis of this strategic shift, you should check out the Mission Statement, Vision, & Core Values of Hertz Global Holdings, Inc. (HTZ).

Hertz Global Holdings, Inc. Core Values

The company's core values represent the cultural foundation intended to deliver on the mission and vision. They are the behavioral guardrails for an organization with an Enterprise Value of $20.37 Billion as of November 2025 (TTM).

• Professionalism: Upholding high standards in all interactions.
• Passion: Driving enthusiasm for the brand and customer experience.
• Respect: Valuing employees, partners, and customers.
• Integrity: Operating with honesty and ethical consistency.
• Innovation: Leading in new mobility solutions and service delivery.
• Customer Focus: Prioritizing customer needs, which resulted in Net Promoter Scores improving by 11 points by the end of Q1 2025.

Hertz Global Holdings, Inc. slogan/tagline

While the classic, long-standing motto is 'We try harder,' current advertising campaigns often use more contemporary and fleet-focused taglines to promote their rejuvenated vehicle lineup.

• The campaign-specific slogan for a September 2025 ad featuring Tom Brady was: 'Have a fling with our newest fleet yet.'
• A more general, action-oriented campaign tagline is: 'Hertz. Let's Go!'

Hertz Global Holdings, Inc. (HTZ) How It Works

Hertz Global Holdings, Inc. works as a massive, global asset management business that buys, rents, and sells vehicles, generating the majority of its revenue from short-term rentals to business and leisure travelers. Its core value creation comes from expertly managing its fleet-the most dominant economic lever-to maximize utilization and residual value while keeping depreciation costs low.

Hertz Global Holdings, Inc.'s Product/Service Portfolio

The company operates a multi-brand strategy to capture different market segments, from premium business travelers to budget-conscious families. This approach allows them to price discriminate effectively and achieve higher overall fleet utilization.

Hertz Global Holdings, Inc.'s Operational Framework

The operational framework is centered on a 'Back-to-Basics Roadmap,' which is defintely an asset-heavy strategy focused on disciplined fleet economics. For the third quarter of 2025, the company delivered a record utilization of 84%, showing this focus is paying off. Here's the quick math on how they drive value:

• Buy Right: Acquire vehicles at the most favorable prices, diversifying the supply chain to reduce reliance on any single manufacturer.
• Hold Right: Maintain a younger, more efficient fleet. As of Q3 2025, the average fleet age is under 12 months, with over 70% of the core U.S. fleet being 12 months old or newer. This reduces maintenance costs and improves customer satisfaction.
• Rent Right: Use advanced revenue management systems to align capacity to demand in real time, optimizing Revenue Per Day (RPD) and Revenue Per Unit (RPU).
• Sell Right: Maximize residual values by leveraging the retail channel, Hertz Car Sales, over wholesale auctions. This focus helped drive vehicle depreciation per unit (DPU) down significantly, with a target to sustain DPU below $300 per month in Q2 2025.

The company also achieved a $92 million year-over-year improvement in direct operating expenses in Q1 2025 through rigorous cost control and a more efficient, newer fleet.

Hertz Global Holdings, Inc.'s Strategic Advantages

Hertz's market success hinges on a few clear, structural advantages that competitors struggle to replicate, plus a renewed focus on execution. You can see their long-term direction in their Mission Statement, Vision, & Core Values of Hertz Global Holdings, Inc. (HTZ).

• Unmatched Global Footprint: Operating in over 160 countries with more than 11,000 locations. This scale is a huge barrier to entry, giving them a diversified revenue stream and resilience against regional market fluctuations.
• Powerful Brand Equity: The Hertz brand is one of the most recognized globally in the vehicle rental industry, fostering customer loyalty and trust.
• Dual-Channel Asset Monetization: The ability to seamlessly transition vehicles from the rental fleet into the retail sales channel (Hertz Car Sales) is a major advantage. This allows them to capture the highest possible residual value, which is critical since vehicle depreciation is the single largest operating expense.
• Operational Agility in Fleet Management: The 'short-hold strategy' and aggressive fleet refresh allow them to quickly adapt to changing vehicle market conditions and consumer preferences, like the ongoing shift in electric vehicle (EV) demand.

Hertz Global Holdings, Inc. (HTZ) How It Makes Money

Hertz Global Holdings, Inc. primarily makes money by renting vehicles to customers globally through its core brands-Hertz, Dollar, and Thrifty-and by actively managing its fleet through strategic vehicle acquisition and timely sales (depreciation management). The company's financial engine is a high-volume, capital-intensive model where the spread between rental revenue and the total cost of vehicle ownership (depreciation, maintenance, and financing) drives profitability.

Hertz Global Holdings, Inc.'s Revenue Breakdown

For the third quarter of 2025, Hertz reported total revenues of approximately $2.48 billion, which reflected a 3.8% decline year-over-year. The vast majority of this comes from the rental activity itself, but the ancillary services and fleet disposition are critical to the margin profile. Here's the quick math on the core operating revenue streams:

The Americas RAC segment remains the largest geographical contributor, bringing in $1.91 billion in Q3 2025, while the International RAC segment added $568 million. The trend for the primary rental revenue stream is slightly decreasing, but the company is actively working to offset this with better fleet utilization and cost management.

Business Economics

The business of car rental is simple to understand but defintely hard to execute profitably because it's a constant battle against depreciation and operating costs. Hertz's strategy, known as 'Buy Right, Hold Right, Sell Right,' is the economic foundation for its turnaround.

• Fleet Economics: The key metric is Depreciation Per Unit (DPU) per month. Hertz is focused on keeping this below $300, and in Q3 2025, it was already at an impressive $273 per month. A lower DPU means the vehicle's cost is spread more effectively over its rental life.
• Utilization and Pricing: Revenue Per Unit (RPU) per month is the counter-metric, which was nearly flat year-over-year at $1,530 in Q3 2025. Fleet utilization-how often a car is rented-hit a record high of 84% in Q3 2025, the best since 2018. High utilization is pure margin expansion.
• Vehicle Disposition: Selling older vehicles through channels like Hertz Car Sales, including the expanded Rent2Buy program, is a crucial part of the 'Sell Right' strategy. This retail channel helps maximize residual values, directly lowering the overall depreciation cost of the fleet.
• New Mobility Streams: The company is investing to transform into a broader mobility platform, which includes fleet management services and digital retail partnerships, aiming to unlock new revenue streams beyond traditional airport rentals.

To be fair, the company's long-term success hinges on sustaining this low DPU and high utilization rate, which requires continuous investment in fleet refresh and technology. You can read more about the strategic direction in the Mission Statement, Vision, & Core Values of Hertz Global Holdings, Inc. (HTZ).

Hertz Global Holdings, Inc.'s Financial Performance

The Q3 2025 results show a significant operational turnaround, moving from substantial losses to profitability, largely due to disciplined cost management and fleet optimization.

• Return to Profitability: Net income surged to $184 million in Q3 2025, a massive 113.8% positive swing from a $1.33 billion loss in the same quarter last year. This marks the first positive Earnings Per Share (EPS) in over two years, with diluted EPS at $0.42.
• Operating Efficiency: Adjusted Corporate EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was $190 million in Q3 2025, a $350 million year-over-year improvement. This metric shows the core business is generating cash before capital structure costs.
• Liquidity and Cash Flow: The balance sheet is stronger, with total liquidity over $2.2 billion and positive Adjusted Free Cash Flow of approximately $250 million in Q3 2025. This cash generation is crucial for funding the ongoing fleet refresh and managing debt.
• Cost Control: The significant improvement in net income was driven by a sharp reduction in depreciation of revenue-earning vehicles and lease charges, which decreased from $937 million in Q3 2024 to $457 million in Q3 2025. This shows the 'Buy Right, Hold Right, Sell Right' strategy is working on the cost side.

Hertz Global Holdings, Inc. (HTZ) Market Position & Future Outlook

Hertz Global Holdings, Inc. is executing a critical turnaround, shifting its focus from aggressive fleet expansion to disciplined unit economics, but its market position remains volatile. While the company is successfully implementing its fleet optimization strategy, achieving a record high utilization rate of 84% in Q3 2025, it still faces an intense competitive landscape and a substantial debt load exceeding $18.4 billion.

The path to sustainable profitability hinges on managing depreciation costs and scaling its new mobility platform, not just surviving the rental car wars. Exploring Hertz Global Holdings, Inc. (HTZ) Investor Profile: Who's Buying and Why?

Competitive Landscape

Hertz operates in a highly consolidated U.S. market dominated by three major players. As of 2025, Hertz is the third largest by market share, but its strategic shift to a younger, more efficient fleet is its primary defense against the sheer scale of its top competitor.

Opportunities & Challenges

You need to see where the company can win and where it can lose. Hertz's future is less about renting cars and more about becoming a full-stack mobility provider and a massive used-car dealer.

Industry Position

Hertz is positioned as an established global brand undergoing a high-stakes operational overhaul. Its core strategy-the 'Buy Right, Hold Right, Sell Right' fleet management framework-is defintely working to stabilize unit economics, a necessary step after previous missteps with its electric vehicle (EV) fleet.

• Revenue Trajectory: Analysts forecast 2025 revenue at around $8.516 billion, reflecting a modest growth rate of 0.9%, which trails the broader industry average.
• Operational Efficiency: The company achieved a record utilization rate of 84% in Q3 2025, a clear sign that the new leadership is effectively sweating the assets.
• Financial Health: Despite operational gains, the consensus 2025 Earnings Per Share (EPS) forecast remains negative at -$1.91, underscoring the challenge of turning revenue into bottom-line profit while servicing debt.
• Strategic Pivot: The launch of a fully online channel for Hertz Car Sales transforms the fleet disposal process from a cost center into a higher-margin retail business. This is a crucial move to maximize residual value and manage fleet depreciation.

The company's success is now less dependent on overall travel demand and more on its ability to execute this complex operational pivot flawlessly and manage its negative working capital.