10-Q · April 29, 2026
Avis Budget Group reported Q1 2026 revenues of $2.53 billion, surpassing estimates by $100 million, with a net loss of $283 million, a significant improvement from the $505 million loss in the prior year. Despite the…
Earnings analysis · 10-Q
CAR earnings analysis
Filed July 29, 2026 · Our reading of the company's report
The latest report
Avis Budget returned to quarterly profitability, reporting $2.998 billion of Q2 revenue, $0.98 diluted EPS and calculated 7.1% operating margin; EPS increased from $0.10 a year earlier as lower fleet costs more than…
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Avis Budget returned to quarterly profitability, reporting $2.998 billion of Q2 revenue, $0.98 diluted EPS and calculated 7.1% operating margin; EPS increased from $0.10 a year earlier as lower fleet costs more than offset a 1% revenue decline. Americas EBITDA increased 8% to $237 million, while International EBITDA fell 11% to $73 million amid higher operating and selling costs. Liquidity of approximately $1.029 billion and refinancing actions support near-term funding, but $25.9 billion of debt, negative $3.374 billion equity and continued volume pressure temper the outlook.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.98
- Operating margin
- 7.1%
What stood out
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Revenue modestly lower year over year
Q2 revenue was $2.998 billion, down $41 million (1%) from $3.039 billion a year earlier, but increased from $2.530 billion in Q1 2026. The year-over-year decline reflected a 2% volume decrease, partly offset by a $20 million currency benefit.
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Profitability rebounded sharply
Diluted EPS improved to $0.98 from $0.10 a year earlier, while net income attributable to Avis Budget Group rose to $35 million from $4 million. Calculated operating margin improved to 7.1% from approximately 6.3% a year earlier and from negative 8.9% in Q1 2026.
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Fleet-cost improvement supports margins
Vehicle depreciation and lease charges declined $53 million, or 8%, to $583 million and fell to 19.4% of revenue from 20.9%. Management attributed the improvement to lower per-unit fleet costs and greater gains on vehicle sales.
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Americas EBITDA grew despite lower volume
Americas Adjusted EBITDA increased 8% to $237 million despite a 2% revenue decline to $2.288 billion, aided by lower depreciation, lease charges, commissions and marketing costs.
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Operating cash flow remains positive
For the first six months, operating cash flow remained strong at $1.066 billion, although it decreased $390 million from $1.456 billion in the prior year, primarily due to working-capital movements. Free cash flow is not disclosed because investing cash flows include vehicle-program activity.
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Liquidity and revolver capacity reinforced
Liquidity totaled approximately $1.029 billion at June 30, consisting of $558 million of available cash and $471 million of revolver availability. The company also refinanced its $2.0 billion revolver through June 2031 and added a $200 million revolver maturing in June 2028.
What to watch
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Lower rental volume remains a demand headwind
Volume fell 2% year over year in Q2, contributing to the $41 million decline in company revenue to $2.998 billion. Management flags an economic downturn as a potential pressure on travel demand.
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International margins deteriorated
International Adjusted EBITDA declined 11% to $73 million even as revenue rose to $710 million from $707 million. Operating expenses increased to 48.1% of segment revenue from 46.7%, while SG&A rose to 17.0% from 15.5%.
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High leverage and negative equity persist
Total indebtedness was approximately $25.9 billion at June 30, 2026, including about $6.0 billion of corporate debt and $19.9 billion of vehicle-program debt; stockholders' equity was negative $3.374 billion. Rising interest rates, used-vehicle values and financing-market conditions could constrain liquidity or increase funding costs.
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Working-capital and fleet funding needs increased
Operating cash flow decreased $390 million to $1.066 billion for the first six months of 2026, which management attributed primarily to working-capital changes. Vehicle-program liabilities increased $1.103 billion to $23.355 billion as fleet cost and related debt increased.
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No material risk-factor updates disclosed
The company reported no material risk-factor developments during the quarter ended June 30, 2026. Consequently, no new or revised risk factor was identified relative to the 2025 Form 10-K.
Management's outlook
The 10-Q provided no quantitative revenue or EPS outlook. Management said results were driven by lower per-unit fleet costs and increased revenue per day, partly offset by lower volume, and identified travel demand, used-car values, interest rates, tariffs and inflation as ongoing variables.
Earlier filings 4
10-K · February 19, 2026
Avis Budget reported stable revenue of approximately $11.7 billion in 2025 with Adjusted EBITDA of $748 million, but recorded a net loss of $995 million (diluted loss per share $25.25) driven in part by a $518 million…
10-Q · October 28, 2025
Avis Budget reported Q3 2025 revenue of $3,519 million and GAAP diluted EPS of $10.11, both ahead of the prior-year quarter. Operating profitability expanded materially year-over-year (operating margin ~23.6% vs ~19.1%…
10-Q · May 8, 2025
Avis Budget Group reported Q1 revenue of $2,430 million (down $121 million year-over-year) and a net loss attributable to the company of $505 million, or diluted loss per share of $14.35. Operating cash flow improved to…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.