Key Highlights
- First quarter results showed a loss of $8.01 per share, falling short of the $7.29 analyst consensus
- Quarterly revenue reached $2.53 billion, representing a 4.3% year-over-year increase and surpassing forecasts
- Shares declined approximately 15-17% during Wednesday’s premarket session
- The stock has declined more than 70% from its April 21 peak of $713.97 reached during a short squeeze event
- Adjusted free cash flow showed improvement of over $570 million versus the same period in 2024
Avis Budget Group delivered first-quarter results that fell short of analyst projections, triggering a sharp decline in premarket trading Wednesday and continuing a challenging period for shareholders.
The rental car giant recorded a GAAP loss of $8.01 per share for the first quarter, underperforming the consensus forecast of $7.29 by $0.51. Despite missing estimates, the result represented progress compared to the $14.35 per share loss recorded in the year-ago period.
Quarterly revenue totaled $2.53 billion, marking a 4.3% year-over-year gain and exceeding the $2.4 billion Wall Street projection.
CAR shares retreated approximately 15-17% in premarket activity to the $151-$155 range, positioning the stock for a sixth consecutive day of declines.
While the earnings disappointment applies immediate pressure, the broader narrative centers on the stock’s steep descent from recent technical highs.
CAR experienced a dramatic rally beginning in late March, fueled by intensive call option activity from momentum traders and speculators targeting a stock with substantial short interest. The shares reached a record closing price of $713.97 on April 21.
From that peak, the stock has surrendered more than 70% of its value as the technical dynamics driving the surge reversed course.
Operational Metrics Display Positive Trends
Beyond the headline loss figure, certain operational indicators showed encouraging developments.
Revenue per day, when adjusted for currency fluctuations, increased 3% across both Americas and International divisions. Vehicle utilization rates exceeded 70% in both business segments.
Adjusted EBITDA registered at -$113 million, compared to -$93 million in the prior year’s first quarter, representing a modest expansion in losses on this metric.
Adjusted free cash flow reached $80 million, marking an improvement exceeding $570 million compared to Q1 2024. The company maintained liquidity of $915 million at quarter end, supplemented by $2.9 billion in available fleet financing capacity.
Executive Commentary
CEO Brian Choi characterized the quarter as demonstrating a shift in operational trajectory.
“We executed on the changes we outlined last quarter, and the first quarter reflects a meaningful inflection in our operating performance,” Choi stated.
“With tighter fleet discipline, improving pricing, and stronger utilization, we are building a more resilient business with clear momentum heading into the rest of the year,” he continued.
The company emphasized enhanced fleet management practices and improved pricing strategies as primary drivers of operational adjustments.
Car rental competitor Hertz Global (HTZ) also experienced weakness in early trading, declining roughly 1.1% during the premarket period.
At the time of premarket trading, CAR was changing hands near $151, representing a decline of more than 70% from its April 21 high point.
