Hertz Global Holdings, Inc. (HTZ): Business Model Canvas [Dec-2025 Updated]

You're digging into Hertz Global Holdings, Inc. and need the quick take on their current engine: it's a story of a sharp operational reset that's finally paying off. Honestly, the core is disciplined fleet management-buying right, holding right, and selling right-which is transforming a massive fleet of about 545,000 vehicles (Q3 2025) into a real asset, supported by $2.2 billion in corporate liquidity at the same time. If you want to see precisely how they are keeping depreciation costs (DPU) low at $273 per month while driving a nearly 50% NPS jump in North America, check out the full Business Model Canvas below; it maps out the exact structure behind this turnaround.

Hertz Global Holdings, Inc. (HTZ) - Canvas Business Model: Key Partnerships

You're looking at the core relationships Hertz Global Holdings, Inc. (HTZ) relies on to manage its massive fleet and access capital, so let's cut straight to the numbers defining those ties as of late 2025.

Vehicle manufacturers (OEMs) for fleet supply and parts

Hertz Global Holdings, Inc. maintains relationships with Original Equipment Manufacturers (OEMs) to feed and refresh its fleet, especially as it navigates fleet composition shifts.

• Over 70% of the core U.S. rental fleet was 12 months old or newer as of the first quarter of 2025.
• Vehicle depreciation improved by 45% year-over-year, a result tied to the disciplined fleet rotation strategy.
• Initial EV fleet plans involved commitments up to 175,000 vehicles from General Motors and up to 65,000 from Polestar.

Uber and Lyft for ride-share driver rentals

The partnerships with ride-share companies are strategically positioned around future regulatory requirements.

• Cities involved in public-private partnerships, such as Denver, Atlanta, Houston, and Orlando, make Hertz EVs available to Uber and Lyft drivers.
• Ride-share companies like Uber and Lyft face city requirements to be 100% electric by 2030.

Cox Automotive and Amazon Autos for digital retail car sales

The focus here is on maximizing residual value through digital retail channels, with Amazon Autos being a key platform.

BP Pulse for EV charging infrastructure development

The collaboration with BP Pulse is designed to support the deployment and use of the electric fleet.

• As of July 2023, EVs represented 11% to 12% of the Hertz rental fleet.
• BP Pulse aims to install over 100,000 chargers globally by 2030.
• Of BP Pulse\'s global target, about 90% are planned to be rapid or ultra-fast chargers.

Financial institutions for Asset-Backed Securitization (ABS) funding

Securitization remains a primary tool for financing the vehicle assets on the balance sheet.

The company's corporate liquidity stood at $1.2 billion as of March 31, 2025.

Hertz Global Holdings, Inc. (HTZ) - Canvas Business Model: Key Activities

You're looking at the core engine of Hertz Global Holdings, Inc. (HTZ) right now-the day-to-day actions that are supposed to turn the ship around. It's all about asset management, which is defintely the biggest lever they can pull.

Disciplined fleet management (Buy Right, Hold Right, Sell Right)

This strategy is the bedrock of the current operational focus. It's about getting the acquisition cost right, keeping the asset in service efficiently, and maximizing the sale price on exit. The results show this discipline is translating into better unit economics, even if overall revenue growth is still finding its footing.

Here are the hard numbers reflecting this focus:

• Depreciation Per Unit per Month (DPU) in Q3 2025 hit $273.
• This is well below the management's North Star target of sub-$300.
• In Q2 2025, the DPU was even lower at $251, beating the sub-$300 target ahead of schedule.
• Over 70% of the core U.S. rental fleet is 12 months old or newer as of early 2025.
• The model year 2025 vehicles specifically achieved a collective DPU of less than $300.
• As of the 2024 peak, the Americas RAC segment operated approximately 473,200 vehicles, with the International RAC segment at 138,000 vehicles.
• The company adjusted its fleet by selling 30,000 electric vehicles by the end of 2024.

Core vehicle rental operations (Hertz, Dollar, Thrifty)

The rental segments-Hertz, Dollar, and Thrifty-are where the utilization rates and transaction revenue are generated. The focus here is maximizing the revenue from the assets they hold. The operational rigor is showing up in utilization metrics, which are the highest seen in years.

The latest performance snapshot from Q3 2025 shows:

The long-term goal for Revenue Per Unit (RPU) is to exceed $1,500, and Direct Operating Expense (DOE) per transaction day is targeted for the low $30s.

Retail used vehicle sales via Hertz Car Sales

Selling vehicles directly to consumers through Hertz Car Sales is a critical activity for realizing better residual values, which directly lowers the net depreciation expense. This channel is being prioritized as the primary disposition route.

• Hertz Car Sales achieved its highest second-quarter retail vehicle sales volume in five years in Q2 2025.
• By September 30, 2025, Hertz Car Sales launched a fully online car-buying experience at HertzCarSales.com.

Rigorous cost control and operational efficiency improvements

Beyond fleet depreciation, controlling direct operating expenses (DOE) is key to margin recovery. Management has been aggressive on the cost side, which is evident in the year-over-year expense improvements.

The operational improvements are quantified below:

• Direct Operating Expenses (DOE) saw a year-over-year improvement of $92 million in Q1 2025.
• DOE per day in Q1 2025 was down 4% quarter-over-quarter.
• Net Promoter Scores improved by 11 points year-over-year as of the end of Q1 2025.
• Loyalty enrollments were up 11% year-over-year in Q1 2025.
• The company is targeting an Adjusted Corporate EBITDA of $1 billion by 2027.

Digital platform enhancement and reservation management

Enhancing the digital experience is necessary to capture loyalty and streamline the customer journey, which supports higher utilization and better NPS scores. This activity is increasingly integrated with the sales channel.

Key digital and partnership activities include:

• The launch of the fully online car-buying platform for Hertz Car Sales on September 30, 2025.
• Strategic innovations mentioned include partnerships with Amadeus to future-proof operations.
• The company reported a positive net cash provided by operating activities (GAAP) of $835 million in Q3 2025, showing the operational cash engine is working.

Finance: draft 13-week cash view by Friday.

Hertz Global Holdings, Inc. (HTZ) - Canvas Business Model: Key Resources

You're looking at the core assets Hertz Global Holdings, Inc. relies on to operate its global mobility business as of late 2025. These are the tangible and intangible things the company absolutely must have to make its model work.

The physical foundation is the fleet, which is central to everything. Hertz Global Holdings, Inc. maintains a global fleet of approximately 545,000 vehicles (Q3 2025). This asset base is managed under a disciplined strategy, aiming for a modern, efficient mix, with Depreciation Per Unit (DPU) hitting $273 per month in Q3 2025, aligning with the North Star target of sub-$300.

The company's market presence is built on its portfolio of established names. These iconic global brands include Hertz, Dollar, and Thrifty. Also part of the ecosystem are the Hertz Car Sales brand and the Hertz 24/7 car-sharing business in Europe.

Geographic reach and customer access are secured through an extensive network. Hertz Global Holdings, Inc. operates approximately 11,200 worldwide locations. This network spans about 160 countries.

Financial strength provides the necessary operational cushion and investment capital. Total corporate liquidity stood at $2.2 billion at the end of Q3 2025. This liquidity supports operations, especially following a quarter that delivered positive Adjusted Free Cash Flow of about $250 million.

Technology underpins efficiency and the customer journey. Hertz Global Holdings, Inc. utilizes proprietary fleet telematics and digital booking platforms. Specifically, the company is leveraging Amazon Web Services (AWS) to power its vehicle telematics platform, which delivers diagnostics data to facilitate better fleet management. Furthermore, the digital experience is enhanced by platforms enabling a touchless rental process via the Hertz mobile app, and the Hertz Car Sales platform launched a fully online car-buying experience.

Here is a breakdown of the primary operational and financial anchors as of the third quarter of 2025:

The intangible assets and operational capabilities supporting the physical fleet include:

• The core brands: Hertz, Dollar, and Thrifty.
• The 'Buy Right, Hold Right, Sell Right' fleet strategy execution.
• A nearly 50% year-over-year increase in the North America Net Promoter Score in Q3 2025.
• Technology integration with AWS for data analytics and platform scaling.
• A retail vehicle sales channel where the percentage of fleet sold via retail increased by 570 basis points compared to the first nine months of 2024.

The company's operational discipline is a resource in itself, evidenced by the improved fleet economics and utilization rate reaching more than 84%, the highest since 2018. Finance: draft 13-week cash view by Friday.

Hertz Global Holdings, Inc. (HTZ) - Canvas Business Model: Value Propositions

You're looking at the core value Hertz Global Holdings, Inc. (HTZ) is delivering to its customers as of late 2025, which is heavily centered on fleet quality and digital convenience. This is the stuff that keeps the revenue engine running smoothly.

The primary draw is the commitment to a high-quality, newer fleet. This isn't just marketing fluff; the execution of the 'Buy Right, Hold Right, Sell Right' strategy is showing up in the numbers. As of the Q1 2025 reporting, over 70% of the core U.S. rental fleet is comprised of vehicles that are 12 months old or less. By the third quarter of 2025, this focus on fleet lifecycle management helped drive Depreciation per Unit per Month (DPU) down to $273, meeting the North Star target of sub-$300.

This newer fleet directly supports better customer sentiment. We saw measurable gains in rental ease and vehicle quality confidence, which translated into a nearly 50% year-over-year increase in the North America Net Promoter Score (NPS) in the third quarter of 2025. Honestly, that's a significant jump in customer satisfaction, showing the investments in CX training and digital tools are working.

Here's a quick look at how these operational improvements are stacking up against the Q3 2025 financial results:

Global accessibility remains a core proposition, serving both business and leisure travelers across its network. The company is also focusing on capturing durable demand through loyalty, evidenced by the Gold Plus Rewards membership growing by 90% year over year as of Q3 2025.

For flexible mobility, the strategy around Electric Vehicles (EVs) has seen a significant recalibration, which is a value proposition shift in itself-offering what the market demands now. While Hertz sold 30,000 EVs by late 2024 after facing high repair costs and lower consumer demand, they still participate in the broader EV rental space, which the market estimates at USD 10.90 billion in 2025. The Denver program, for instance, initially added up to 5,200 EVs for customers and rideshare drivers. The value here is the ability to offer a diverse fleet, even if the EV mix is being actively managed.

Finally, the transparent retail channel for used vehicle purchases provides a clear exit strategy for the fleet assets, which benefits the core rental business through better residual realization. Hertz delivered its strongest-ever quarter for retail vehicle sales in Q1 2025. The disciplined focus on retail over wholesale channels resulted in the percentage of fleet sold via retail channels increasing by 570 basis points in the first nine months of 2025 compared to the same period in 2024. This channel offers customers a straightforward way to buy off-rental vehicles.

You should review the Q4 2025 liquidity position, which stood at over $2.2 billion at the end of Q3 2025, as this underpins the ability to maintain this fleet quality and customer experience focus. Finance: draft 13-week cash view by Friday.

Hertz Global Holdings, Inc. (HTZ) - Canvas Business Model: Customer Relationships

Dedicated loyalty programs for frequent renters center on the Hertz Gold Plus Rewards program, which features tiered benefits to encourage continued engagement.

The program includes tiers such as Gold, Five Star, and President's Circle, with specific incentives tied to each level.

President's Circle members receive 1.5 points per dollar spent and are guaranteed upgrades.

Loyalty enrollments showed growth of 11% year-over-year by the end of the first quarter of 2025.

Membership in Hertz Gold Plus Rewards was up 90% year-over-year, as noted during the third quarter 2025 earnings call context.

Points earned through the loyalty program have a revised expiration rule, where points expire five years after they are earned, effective December 31, 2024.

A new cancellation policy, allowing members to cancel reservations without a fee, began implementation on September 1, 2024.

Digital self-service via mobile app and website is a major focus for transaction completion.

Hertz projects that 65% of transactions will be conducted via digital platforms by late 2025.

The Hertz app has reached millions of downloads by 2025, supporting seamless booking and rental management.

Self-service capabilities extend to enabling customers to modify reservations or purchase upgrades digitally.

The company is also taking steps to improve the experience by enabling self-service rental extensions.

Proactive customer service recovery and support are being driven by technology investments.

The focus on customer experience resulted in a nearly 50% Net Promoter Score (NPS) increase year-over-year in North America, as reported on the Q3 2025 earnings call.

By the end of the first quarter of 2025, Net Promoter Scores had improved by 11 points year-over-year globally.

AI handles nearly three-quarters of U.S. inbound chat and call support, which is cited as delivering faster resolutions and improved satisfaction.

The transactional relationship for one-time leisure rentals is supported by a wide operational footprint.

Hertz operates more than 11,000 rental locations across 160 countries.

The company offers a range of vehicles, including the Hertz Dream Collection for special treats.

Account management for corporate and ride-share partners remains a key demand driver.

Demand from corporate customers contributed to the $2.5 billion revenue reported in the third quarter of 2025.

The company maintains a substantial network of company-operated rental locations, with a majority situated in Europe.

Here's a quick look at the relationship metrics as of late 2025 data points:

The structure of customer engagement can be broken down by interaction type:

• Dedicated Loyalty Program Benefits:
• Guaranteed upgrades for top tier members.
• Fee-free cancellations for members.
• Tiered status levels for frequent renters.
• Digital Self-Service Features:
• Mobile app for booking and management.
• Digital modification of reservations.
• AI handling of inbound support.
• Corporate Account Management Focus:
• Serving business travelers valuing efficiency.
• Partnerships driving Q3 revenue.

The company's overall revenue for the trailing twelve months ending September 30, 2025, was $8.52B.

For Q3 2025, Hertz reported net income of $184 million.

The company's corporate liquidity stood at $1.2 billion as of March 31, 2025.

Hertz Global Holdings, Inc. (HTZ) - Canvas Business Model: Channels

You're mapping out how Hertz Global Holdings, Inc. (HTZ) gets its vehicles to customers in late 2025. It's a multi-pronged approach, balancing high-traffic physical spots with digital reach, all while pushing retail sales.

Airport and off-airport rental locations

The physical footprint remains central to the business, split between the high-volume airport channel and the local/replacement-focused off-airport locations. The Americas RAC segment, which includes the U.S. and Canada, is the largest, though the International RAC segment maintains a significant presence in Europe and Asia Pacific.

Hertz Global Holdings, Inc. operates in 160 countries globally, supported by a network that includes approximately 11,200 locations worldwide, as suggested by recent strategic discussions. For context on fleet scale, the Americas RAC segment had a peak rental fleet of about 473,200 vehicles in 2024, while the International RAC segment had 138,000 vehicles in the same year.

Here's a quick look at the scale of the physical network:

• U.S. fleet size is around 650,000 vehicles total.
• U.S. market share is approximately 11%.
• Airport rentals still comprise a significant portion of revenues.
• Off-airport caters to local customers and ride-share drivers.

Owned websites and mobile applications

Digital direct booking is a key focus for demand generation and improving margins, especially as the company rolls out technology upgrades. Management noted a 100% increase in new U.S. loyalty member sign-ups, which often funnel through these direct digital channels.

The company is focused on implementing a new revenue management platform, scheduled for deployment by the end of Q3 2025, which will integrate real-time pricing optimization. This digital push supports the overall goal of improving revenue per unit (RPU) through better demand selection.

Third-party travel agencies and online travel aggregators (OTAs)

While direct channels are prioritized, traditional third-party bookings through travel agencies and OTAs still form a necessary part of volume generation. The overall TTM revenue as of September 30, 2025, stood at $8.52 billion, reflecting the blended performance across all channels, including these intermediaries.

Hertz Car Sales retail and e-commerce channel

The 'Sell Right' strategy heavily emphasizes the retail channel over wholesale. This focus is yielding tangible results in vehicle disposition. The company delivered its strongest-ever quarter for retail vehicle sales in Q1 2025.

Building on that, Q2 2025 saw the highest second-quarter retail vehicle sales volume in five years. This retail focus has resulted in an increase of 570 basis points in the percentage of fleet sold through retail channels when comparing the first nine months of 2025 to the same period in 2024. This channel directly impacts the net depreciation expense, which saw a 45% year-over-year decrease in Q1 2025.

Direct integration with ride-share platforms (e.g., Uber)

The partnership with Uber is a significant channel for fleet utilization, particularly for electric vehicles (EVs). The North American program has, to date, benefited nearly 50,000 drivers. These drivers have completed over 24 million fully-electric trips and driven more than 260 million electric miles through the program.

Furthermore, the European expansion aims to make up to 25,000 EVs available to Uber drivers by 2025. This segment caters to local mobility needs and supports Hertz Global Holdings, Inc.'s EV fleet strategy. Pershing Square CEO Bill Ackman noted in April 2025 that Hertz's fleet of over 500,000 vehicles and 11,200 locations makes it uniquely positioned to partner with Uber on fleet utilization, even for autonomous vehicle rollouts.

The operational progress in cost control is defintely visible in the DPU (Depreciation Per Unit) metric, which was $353 in Q1 2025 and improved to $251 in Q2 2025, beating the sub-$300 target ahead of schedule.

Hertz Global Holdings, Inc. (HTZ) - Canvas Business Model: Customer Segments

You're looking at the customer base for Hertz Global Holdings, Inc. as the company works through its operational stabilization following the fleet refresh. The segments are distinct, even if the reported financials often group them geographically first. Honestly, the Q3 2025 results show a clear picture of where the revenue is coming from right now, even with overall revenue contracting.

The core rental car operations are split between the Americas RAC and International RAC segments. For the third quarter of 2025, the Americas RAC segment was the largest, generating $1.91 billion in revenue, though this represented a 7% year-over-year decline. The International RAC segment contributed $568 million in the same period. Total revenue for Hertz Global Holdings, Inc. in Q3 2025 was $2.48 billion, a 3.80% decrease from Q3 2024.

Here's a breakdown of the reported segment performance for Q3 2025:

Domestic and international leisure air travelers and corporate and business travelers are the primary drivers within the RAC segments. While the company reported a decrease in overall revenue driven by market pricing pressure and fleet mix, management noted that the leisure business in the Americas was substantially recovered as of Q1 2025, whereas corporate and international inbound business lagged, sitting at 80% and 60% of 2019 levels, respectively, in that same quarter. The company is actively trying to drive a higher mix of durable segments, which includes loyalty and direct bookings, suggesting a focus on retaining these traveler types.

The segment for used vehicle buyers (via Hertz Car Sales) is a key component of the asset management strategy, which they call 'Buy Right, Hold Right, Sell Right.' This focus on retail sales is clearly a priority for cash flow and fleet optimization. The percentage of fleet sold via retail channels, including Hertz Car Sales, grew by 570 basis points year-over-year as of Q3 2025 compared to the first nine months of 2024. This retail channel is one of the world's largest used car dealers.

For the remaining segments, the data is less direct but points to strategic focus areas:

• Ride-share and gig economy drivers: Specific revenue or volume data for this group isn't explicitly broken out in the primary Q3 2025 reporting, but the strategy mentions revenue diversification by growing mobility business units.
• Insurance replacement and local renters: These customers fall under the general 'local market' operations. The company is focused on improving unit economics at the local market level through foundational changes to systems and processes. The overall fleet size as of September 30, 2025, was 12,693 revenue-earning vehicles, net.

The overall vehicle utilization rate across the fleet reached more than 84% in Q3 2025, the highest since 2018, which benefits all rental customer types by maximizing the revenue generated from the available assets. Finance: draft 13-week cash view by Friday.

Hertz Global Holdings, Inc. (HTZ) - Canvas Business Model: Cost Structure

Vehicle depreciation per unit (DPU) for Hertz Global Holdings, Inc. (HTZ) in the third quarter of 2025 was reported at $273 per month, meeting the company's North Star Target of sub-$300 DPU. For the fourth quarter of 2025 guidance, DPU is expected to rise to the range of $280-$285.

Direct Operating Expenses (DOE) per transaction day are targeted to be in the low $30s. In the first quarter of 2025, the actual DOE per transaction day was $39.24, compared to $37.59 in the fourth quarter of 2024. The company reported a 1% year-over-year decline in total DOE in the third quarter of 2025.

The cost structure is heavily influenced by fleet financing, which relies on asset-backed securitization (ABS) debt. As of March 2025, the fair market value (FMV) of the fleet securing the ABS was $9.2 billion against an ABS net book value (NBV) of $8.8 billion. This resulted in a three-month average FMV that was approximately 105% of the NBV. Furthermore, Hertz Global Holdings, Inc. extended maturities on $2.9 billion of its HVFIII Series 2021-A variable funding notes to May 2027. Total non-vehicle debt stood at $5.649 billion as of September 30, 2025.

Labor, maintenance, and collision expenses are embedded within the broader DOE. Management is focused on driving long-term structural cost efficiencies in these areas, including personnel and collision costs.

Selling, General, and Administrative (SG&A) costs for the third quarter of 2025 were $241 million. This represented an increase of 27.51% compared to the same period in the prior year. The trailing twelve months (TTM) annual SG&A expense was $931 million. However, in the first quarter of 2025, SG&A expenses had declined by 12% quarter-over-quarter.

Here is a snapshot of key cost metrics as of late 2025 reporting periods:

Other relevant cost-related data points include:

• Q1 2025 Direct Operating Expenses declined by 5% quarter-over-quarter.
• The company achieved a year-over-year improvement in DOE of $92 million in Q1 2025 due to cost control initiatives.
• As of March 2025, Hertz extended $1.7 billion of its First Lien revolving credit facility maturities to June 2028.

Hertz Global Holdings, Inc. (HTZ) - Canvas Business Model: Revenue Streams

You're looking at the core ways Hertz Global Holdings, Inc. brings in cash as of late 2025. It's all about moving metal, whether it's for a day, a month, or selling it off entirely.

Primary revenue from daily/weekly/monthly vehicle rentals is the engine here, coming from the Hertz, Dollar, and Thrifty brands across their worldwide rental car (RAC) segments. The company is laser-focused on maximizing the value from each asset, hitting a vehicle utilization rate of over 84% in the third quarter of 2025, the highest since 2018. Revenue Per Unit (RPU) reached $1,530 in Q3 2025, showing a strong focus on yield management. The disciplined fleet management, targeting a Depreciation Per Unit (DPU) of $273 in Q3 2025, directly impacts the profitability of this primary stream.

Here's a look at the total revenue picture for the third quarter of 2025, which totaled approximately $2.48 billion.

Retail sales of used vehicles (Hertz Car Sales) represent a critical, high-margin component of the asset lifecycle strategy, dubbed "Buy Right, Hold Right, Sell Right." This channel is prioritized as one of the world's largest used car dealers. The company reported a significant strategic shift here, with the percentage of fleet sold via retail channels increasing by 570 basis points in the first nine months of 2025 compared to the same period in 2024. Q1 2025 saw record results from these retail sales, driven by a more targeted sales approach.

The remaining revenue streams are integral to the overall transaction but are not broken out with specific dollar amounts in the latest public filings you're reviewing:

• Ancillary revenue from insurance, fuel, and add-ons: These are the upsells at the counter or through digital channels that boost the value of each rental transaction.
• Fees and charges (e.g., late return, mileage): These cover operational deviations from the standard contract terms, helping to offset unexpected costs or administrative efforts.
• Partnership revenue from ride-share rentals and fleet management: This involves revenue generated from business-to-business arrangements, including supplying vehicles to mobility platforms and corporate fleet services.

The focus on operational discipline is clear; for instance, the company is actively managing its fleet age, with over 70% of the core U.S. rental fleet being 12 months old or newer as of Q1 2025.

Finance: draft 13-week cash view by Friday.