0000723612-26-000028
SEC filingRevenue up 4% YoY to $2.53B on higher per-day rental, but net loss improved to $283M, driven by fleet cost reduction.
For the three months ended March 31, 2026, Avis Budget Group reported total revenues of $2,530 million, up 4% year-over-year from $2,430 million. The increase was driven primarily by a 3% rise in revenue per day (excluding exchange rate effects) and a $51 million positive impact from currency movements, partially offset by a 1% decline in rental volume. Total expenses decreased 8% to $2,870 million, largely due to the absence of $390 million in other fleet charges recorded in the prior year. Net loss attributable to Avis Budget Group improved to $283 million from $505 million, a 44% reduction, reflecting higher revenue and lower fleet-related expenses. Diluted loss per share narrowed to $8.01 from $14.35.
Adjusted EBITDA, a non-GAAP measure, worsened to a loss of $113 million from a loss of $93 million, as higher operating expenses, selling, general and administrative costs, and vehicle interest costs offset the revenue gain.
Americas generated $1,962 million in revenue, up 3% year-over-year, primarily due to a 3% increase in revenue per day (ex-currency) and a $3 million favorable FX impact. Segment Adjusted EBITDA turned to a loss of $80 million from a loss of $67 million, pressured by higher operating (55.6% of revenue vs. 55.8%), SG&A (11.4% vs. 10.5%), and vehicle interest costs (10.0% vs. 9.3%). Vehicle depreciation and lease charges fell to 27.1% of revenue from 48.4%, aided by the prior-year other fleet charges.
International revenue rose 9% to $568 million, driven by $48 million in positive currency effects and a 3% increase in revenue per day (ex-currency), partly offset by a 4% volume drop. Adjusted EBITDA loss expanded to $13 million from $3 million, impacted by higher operating expenses (55.5% vs. 52.5%) and SG&A costs (17.9% vs. 16.7%), plus approximately $5 million negative FX impact. Vehicle depreciation and lease charges improved to 23.2% of revenue from 25.3% due to lower per-unit fleet costs.
The MD&A provides no explicit quantitative guidance for upcoming periods. Management highlights ongoing macro risks including interest rates, inflation, used car values, tariffs, and geopolitical tensions. The company continues to focus on operational efficiency, analytics, and customer experience. Fleet strategy was adjusted in Q4 2025 to shorten useful lives of certain EV rental cars. No material changes to critical accounting policies were noted, and the company remains compliant with debt covenants as of March 31, 2026.
As of March 31, 2026, Avis Budget Group held $528M in cash and equivalents. Total corporate debt stood at $6.044B, down slightly from $6.073B at year-end 2025. Stockholders' equity remained negative at ($3.402B), reflecting accumulated losses and share repurchases. The company maintains substantial liquidity through its $2B senior revolving credit facility (with $387M available after outstanding letters of credit) and vehicle program capacity of $2.91B.
The most significant commitment is the obligation to purchase approximately $5.1B of vehicles from manufacturers over the next 12 months, a decrease of $1.7B from December 31, 2025. These purchases are financed through vehicle-backed debt and cash from vehicle dispositions. Additionally, the company expects to incur approximately $24M in further restructuring expenses related to the Global Rightsizing initiative.
During Q1 2026, Avis Budget did not repurchase any shares under its Stock Repurchase Program; the remaining authorization is $757M. No dividends were declared or paid. Capital expenditures (property and equipment) totaled $41M, or 1.6% of revenue. Corporate debt decreased by $10M net, with no new borrowings and $10M in repayments (excluding vehicle program debt). The company also made a $13M acquisition of a licensee, funded through cash and future payments.
The company operates two reportable segments: Americas and International. Americas generated $1,962M in revenue (up 2.9% YoY) but reported an Adjusted EBITDA loss of $80M. International revenue was $568M (up 8.6% YoY) with an Adjusted EBITDA loss of $13M. Geographic revenue breakdown shows Americas $1,962M, Europe/Middle East/Africa $375M, and Asia/Australasia $193M. Brand-wise, Avis contributed $1,428M, Budget $952M, and Other (Zipcar etc.) $150M.
Net loss of $234M was significantly offset by non-cash adjustments including vehicle depreciation ($650M) and amortization of right-of-use assets ($309M), resulting in positive CFO of $434M. CFO coverage of capex (capex/CFO = 9.4%) is strong, though vehicle program investing dominates total investing activities. The sharp decline in CFO from $619M to $434M was driven by unfavorable changes in working capital, particularly a $308M outflow from operating lease liabilities (vs. $263M in prior year) and a $120M tax-related outflow. Investing cash flow turned positive at $428M (vs. -$715M) due to higher proceeds from vehicle dispositions ($3,785M vs. $3,090M). Financing cash flow was negative $822M, primarily from net vehicle program borrowings repayments (-$789M net) and limited share repurchases ($7M). The company's vehicle programs generate significant cash flow volatility, with large inflows and outflows of over $3B each quarter. Overall, cash generation remains dependent on non-cash adjustments and vehicle fleet management.