Hertz Global Holdings, Inc. (HTZ): BCG Matrix [Dec-2025 Updated]

You're looking at Hertz Global Holdings, Inc.'s current state as of late 2025, and honestly, the picture is a mix of clear winners and tricky legacy issues that demand attention. We've seen incredible performance, like the International RAC segment driving strong pricing and Hertz Car Sales hitting record retail volume, but we also have the lingering drag from the legacy EV fleet and pricing pressure in the Americas RAC, which saw a $190 million revenue drop year-over-year in Q2. To make smart calls on where to put capital next-whether doubling down on the 84% fleet utilization or figuring out the remaining EV bets-we need to map it all out using the four-quadrant BCG Matrix. Dive in below to see exactly which parts of the business are printing cash and which ones are demanding a tough look.

Background of Hertz Global Holdings, Inc. (HTZ)

You're looking at Hertz Global Holdings, Inc. (HTZ) as of late 2025, and honestly, the story right now is one of a significant operational turnaround. Hertz Global Holdings, Inc. is one of the world's major players in vehicle rental and mobility solutions. The company runs its operations globally under several well-known brands, including Hertz, Dollar, and Thrifty, maintaining a network of over 11,000 rental locations across 160 countries.

The core business is structured around two main segments: Americas RAC (Rental Car) and International RAC. Beyond rentals, Hertz Global Holdings, Inc. also engages in selling used vehicles through its Hertz Car Sales brand in the United States and operates the Hertz 24/7 car-sharing service in Europe. The company, headquartered in Estero, Florida, was founded way back in 1918, giving it a long history in the industry.

Looking at the most recent figures from the third quarter of 2025, which ended September 30, 2025, the company reported total revenues of $2.5 billion. While this represented a slight year-over-year decline of about 4% compared to Q3 2024, the real news was the return to profitability. For the trailing twelve months ending then, revenue stood at $8.52 billion, down 7.36% from the prior year.

The operational improvements have been substantial. Q3 2025 saw Hertz Global Holdings, Inc. post a net income of $184 million, a massive swing from the net loss of $1.332 billion recorded in the same quarter of 2024. This led to a positive diluted Earnings Per Share (EPS) of $0.42, marking the first time the company achieved EPS profitability in two years. Adjusted Corporate EBITDA also surged to $190 million for the quarter, showing a year-over-year improvement of roughly $350 million.

This financial shift is tied directly to fleet management success. The company completed its 'transformative fleet refresh,' resulting in an average fleet age under 12 months. Critically, vehicle utilization hit over 84% in Q3 2025, which was the highest level seen since 2018. Management's near-term focus remains on disciplined fleet management, revenue optimization, and rigorous cost control as they execute their 'Back-to-Basics' strategy.

Hertz Global Holdings, Inc. (HTZ) - BCG Matrix: Stars

You're looking at the core growth engines for Hertz Global Holdings, Inc. (HTZ) right now-the businesses operating in high-growth areas with a commanding market share. These units are consuming capital to maintain that lead, but they are the future Cash Cows if the market growth sustains.

International RAC Segment: Strong RPD/RPU Gains

The International Rental Car Activities (RAC) segment is showing real strength, capitalizing on that global travel recovery you've been tracking. The pricing environment internationally is definitely robust, which is translating directly to the bottom line. In the third quarter of 2025, international Revenue Per Day (RPD) was $57.81, which was a 2 percent increase from the third quarter of 2024. This segment's operational discipline is clear when you look at the profitability metrics for Q3 2025:

• International RAC Revenue increased 11% year-over-year, moving from $514 million to $568 million.
• Adjusted EBITDA margin for the segment hit 18%, up from 12% year-over-year.

This segment is operating with high market share in a growing global travel market, making it a clear Star candidate.

Hertz Car Sales (Retail Channel): Shifting to Higher Margin

The strategic pivot away from lower-margin wholesale vehicle sales toward the direct-to-consumer retail channel is paying off handsomely. Hertz Global Holdings delivered its strongest-ever quarter for retail vehicle sales in the first quarter of 2025. This channel is a high-growth area for the company, as they are actively shifting inventory away from auctions and into consumer hands. The commitment to this strategy is visible in the year-to-date figures:

• The percentage of fleet sold via retail channels increased by 570 basis points in the first nine months of 2025 compared to the same period in 2024.
• This focus helped drive vehicle depreciation down 45% year-over-year in Q1 2025.

This move into direct retail is a high-growth strategy that captures more margin per unit, which is exactly what a Star should be doing.

Rent2Buy Program: Demonstrating Competitive Advantage

The Rent2Buy program is the engine driving the success of the retail channel, offering a competitive advantage by letting customers truly experience the vehicle. The conversion rate here is staggering, indicating strong product-market fit for this direct-to-consumer sales method. Honestly, these numbers defintely show why this is a Star.

Here's the quick math on customer commitment:

Internal data shows that 80% of customers who rent through the Rent2Buy program ultimately purchase the vehicle. That 80% conversion rate dwarfs what you typically see in traditional dealership models.

Fleet Optimization: Record Utilization

The operational excellence achieved through fleet management is a key indicator of market leadership in the core RAC business, even if the overall market growth is slowing slightly. The focus on efficiency means more revenue generated from fewer assets, a hallmark of a market leader investing heavily in process.

In the third quarter of 2025, Hertz achieved a record fleet utilization rate:

• Overall fleet utilization hit above 84% in Q3 2025.
• This was the highest utilization level recorded since 2018.
• This was achieved despite 2% of the U.S. fleet being impacted by manufacturer recalls.
• Depreciation Per Unit (DPU) was maintained at $273 per month, keeping it below the $300 target.

Sustaining utilization above 84% while managing recalls shows strong control over asset deployment in a market where travel demand is still high.

Hertz Global Holdings, Inc. (HTZ) - BCG Matrix: Cash Cows

Core Hertz Brand (Airport/Premium): Dominant presence in high-traffic airport locations, providing consistent, high-volume transaction days.

• Airport revenues accounted for 69% of total Americas RAC segment revenues in Q3 2025.

Traditional Internal Combustion Engine (ICE) Fleet: The primary asset base, generating the bulk of the Q3 2025 revenue of $2.5 billion.

Fleet Asset Management: The 'Buy Right, Hold Right, Sell Right' strategy, which drove a 45% year-over-year decrease in vehicle depreciation in Q1 2025.

Ancillary Revenue Streams: Sales of insurance, fuel, and upgrades at the counter, which are high-margin add-ons to the core rental transaction.

• AI chat/call now handles 72% of U.S. inbound customer interactions.
• North America Net Promoter Score (NPS) increased by ~50% year-over-year in Q3 2025.

Hertz Global Holdings, Inc. (HTZ) - BCG Matrix: Dogs

Dogs are business units or products characterized by low market share in low-growth markets, frequently breaking even or consuming cash without significant returns. These units tie up capital that could be better deployed elsewhere, making divestiture a common strategic consideration for Hertz Global Holdings, Inc.

Legacy EV Fleet

The initial aggressive investment in electric vehicles (EVs) has resulted in units that now fit the Dog profile due to high ownership costs relative to rental revenue. The company executed a significant strategic pivot away from this segment, citing financial pressures.

• The plan involved the sale of approximately 30,000 EVs by late 2024, representing about one-third of the global EV fleet at that time.
• This move was prompted by unexpected costs, including high damage and repair expenses associated with the segment.
• The EV sell-off triggered a $245 million non-cash charge in the fourth quarter of 2023 to align book value with expected sale prices.
• Hertz Global Holdings expected the aggregate two-year benefit from these sales to generate incremental free cash flow of approximately $250 million to $300 million across the 2024 and 2025 fiscal years.

Dollar and Thrifty Brands

The Dollar and Thrifty brands operate heavily in the economy segment, which is highly price-sensitive. This positioning subjects them to intense margin compression, especially when competing against smaller, regional providers who may have lower overhead structures. These brands struggle to command premium pricing, keeping their market share growth low in a mature segment.

The overall performance of the combined rental car operations in the Americas, where these brands have a significant presence, reflects these pressures.

Wholesale Vehicle Sales

The Hertz Car Sales channel represents the traditional, lower-margin method for offloading used fleet vehicles. While it provides a necessary outlet for fleet rotation, the margin profile is inherently less attractive than direct-to-consumer retail sales. Hertz Global Holdings is actively working to reduce reliance on this channel, favoring higher-yield retail transactions.

For context on the overall business health impacting decisions on low-margin channels, here are key financial metrics from the most recent reported quarter:

Americas RAC Segment

The Americas Rent-A-Car segment is a clear Dog candidate, demonstrating significant year-over-year revenue contraction due to pricing pressures and lower transaction volumes, despite improvements in utilization across the broader company.

Here is a breakdown of the segment's performance in Q2 2025 compared to analyst expectations and prior periods:

The revenue decline of $190 million in the Americas RAC segment was the primary factor driving the overall decrease in Hertz Global Holdings' total revenue for the quarter. This segment's low-growth, high-competition environment necessitates minimizing capital exposure.

Hertz Global Holdings, Inc. (HTZ) - BCG Matrix: Question Marks

You're looking at the areas of Hertz Global Holdings, Inc. (HTZ) that are in high-growth markets but haven't yet secured a dominant market share. These units consume cash now, hoping to become Stars later. Honestly, these are the segments where you need to decide quickly: invest heavily or divest.

Strategic EV Fleet (Post-Selloff)

The remaining electric vehicle fleet operates in a market that is still growing, but the unit economics required significant correction after the initial rollout. Hertz completed the reduction of 30,000 electric vehicles from its fleet, a move that was preceded by a $245 million non-cash charge in Q4 2023 to account for the selloff. The focus now is on markets where infrastructure supports better returns. The success of the fleet rotation strategy is evident in the Depreciation Per Unit (DPU), which dramatically decreased by 58% year-over-year in Q2 2025, landing at $251, which is well below the strategic target of under $300. This indicates that the remaining fleet, though smaller, is being managed with a much tighter focus on asset value retention.

Rideshare/Mobility Partnerships

Partnerships with rideshare giants like Uber and Lyft represent a high-growth channel, but Hertz's relative share of the total rideshare fleet remains uncertain and requires capital allocation to support the demand. To give you a sense of scale from the prior year, vehicles in Hertz's rideshare business logged around 1.5 billion miles across the United States during 2024. Within that, the electric vehicle component showed momentum, with drivers completing over 652 million EV miles in 2024. The North American partnership has previously benefited nearly 50,000 drivers through the program. The potential for expansion, perhaps into autonomous vehicle fleets as suggested, requires significant capital commitment to secure the necessary vehicle allocation.

Digital E-commerce Platform

The new full-service online sales platform, HertzCarSales.com, is a high-growth channel that needs heavy investment to compete with established online auto retailers. In Q3 2025, Hertz announced the launch of this fully online car-buying experience, allowing shoppers nationwide to browse, finance, and purchase vehicles entirely online, which is a clear step up from a basic online catalog. This retail focus is paying off, as retail car sales reached a five-year high for the second quarter of 2025. However, the overall financial picture for the company as of late 2025 shows the challenge in monetizing this growth, with a reported revenue of $8.614 billion (3-year growth of 8.3%) but concerning profitability metrics.

Here's a quick look at the financial context surrounding this retail push as of the data available in late 2025:

New Technology Integration

Investments in revenue management systems and AI to improve pricing and margins are high-risk, high-reward areas. Management has quantified the expected impact of these optimization efforts on the 2025 Adjusted Corporate EBITDA, showing where they believe technology and process improvements will drive returns. The company is actively working to improve its Direct Operating Expenses (DOE) per Transaction Day, targeting the low $30s from the Q2 2025 figure of $37.59. For revenue per unit (RPU), the target is over $1,500 compared to the Q1 2025 figure of $1,264. The cost control initiatives are already showing results, with a $92 million year-over-year improvement in direct operating expenses reported in Q1 2025.

The expected contributions to the 2025 Adjusted Corporate EBITDA from these optimization pillars are detailed below. These figures represent the potential upside if the technology integration and process changes meet management's expectations:

• DPU improvements: $1.5 billion
• RPU enhancements: $200 million
• DOE per day reductions: $100 million

The overall goal is to achieve positive Adjusted Corporate EBITDA by the third quarter of 2025. If onboarding takes 14+ days, churn risk rises, which is why these revenue management systems are so critical to get right.