Hertz Global Holdings, Inc. Q1 FY2026 earnings call

• Enhancing customer experience: Redesigned customer service training framework, NPS scores rose, rolled out across top 50 US airports and European team achieved record NPS. - Generating durable demand from higher margin channels: Direct website demand growth, corporate business gaining ground, new partnerships launched. - Improving pricing tactics: Multi-phase approach and new pricing matrix contributing to RPD gains. - Improving monetization of higher RPU assets: New fleet management tools enabling precise pricing. - Better value-added product sales: Year-over-year gains in RPD due to value-added product strategies. - Local level profitability and optimization: Improving ability to manage business at granular level for profitability

Q1 2026 revenue totaled $2 billion, up 11% year-over-year. RPU was up 4.5%, hit North Star RPU target in March and has line of sight to full year target. RPD was up 5%, with U.S. airports showing about 8% improvement. F&I revenue was best in three and a half years. Oro mobility business launched with expanded Uber partnership, managing fleets for rideshare and AV fleets

For full year, slightly reduce days and fleet outlook versus original expectations, maintain EBITDA margin in 3 - 6% range. Q2 expected days down 2 - 3% year-over-year, fleet down 1 - 2%, RPD improvement higher than Q1, net DPU well below $300, EBITDA margin in low to mid-single-digit range. 2027 targets $1 billion EBITDA

Recall activity was a headwind in Q1, up almost 300% higher than a year ago, taking an average of over 16,000 vehicles out of service each month, impacting utilization, transaction days and revenue

• Q: Thinking through Oro and platform messaging to assess Hertz's worth, how internally thinking about valuation in light of transformations.

A: Valuation tough as mostly based on traditional rental car business, shifting paradigm to look at all platform parts as interrelated standalone businesses, Oro could have sizable valuation, sum-of-parts impact material. - Q: On inflection in RPU, breaking out partial shutdown, storms, recall, confidence in maintaining growth.

A: RPD improvement driven by unique commercial strategies and broader market strength, commercial strategies unique, durable, growing in strength, sustainable demand underpins. - Q: More granular on ORO opportunity, how aspects might evolve.

A: Oro provides turnkey rideshare capacity to Uber, employing drivers, model superior to gig structure, stepping stone to AVs at scale, plays into Hertz's strengths