CAR earnings analysis
What we found in CAR's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
- 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%.
- 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.
- 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.
- 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.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.98
- Operating margin
- 7.1%
- Segment
- Americas revenue: $2.288 billion, down $44 million (2%) year over year; Adjusted EBITDA: $237 million, up $17 million (8%).
- Segment
- International revenue: $710 million, up $3 million versus $707 million year over year; Adjusted EBITDA: $73 million, down $9 million (11%).
What they said about what is next.
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.
The filing reads about the same as the one before it.
What came before.
- 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…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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