# Avis Budget Group (CAR) Q2 2025 Financial Results Summary
Released on July 29, 2025, Avis Budget Group, Inc. announced its financial results for the second quarter of 2025, reporting various metrics regarding its performance.
## Key Financial Highlights
– **Total Revenues**: $3.0 billion (down 0.3% vs. Q2 2024)
– **Net Income**: $5 million (down 66.7% vs. Q2 2024)
– **Adjusted EBITDA**: $277 million (up 29.5% vs. Q2 2024)
### Operational Achievements
– **Americas EBITDA**: $220 million (up 18.3% vs. Q2 2024)
– **International EBITDA**: $82 million (up 70.8% vs. Q2 2024)
– **Rental Days**: 44.9 million (flat vs. Q2 2024)
– **Revenue Per Day**: $67.62 (down 0.1% vs. Q2 2024)
### Strategic Announcements
– **New Product Launch**: On July 21, Avis launched **Avis First**, a premium car rental offering focused on a high-quality customer experience including frictionless service and premium vehicles.
– **Partnership with Waymo**: Announced a multi-year partnership to implement fully autonomous ride-hailing operations in Dallas, Texas, marking Avis’s entry into the autonomous vehicle market.
### Financial Structure and Debt Management
– **Debt Issued**: Issued $600 million of unsecured Senior Notes, used to pay off a secured floating rate term loan due in 2025 and partially repay unsecured Senior Notes due in 2027.
– **Amended Loan Terms**: Extended the maturity date of a $1.1 billion floating rate term loan from August 2027 to July 2032.
– **Liquidity**: Ended the quarter with approximately $950 million in liquidity and $1.7 billion in fleet funding capacity.
### Cash Flow Insights
– **Net Cash Provided by Operating Activities**: $1.456 billion
– **Adjusted Free Cash Flow**: -$475 million, indicating a cash outflow primarily due to significant investments in vehicle programs.
## Quarterly Financial Metrics
– **Revenues by Segment**:
– **Americas**: $2.332 billion (down 1% vs. Q2 2024)
– **International**: $707 million (up 2.9% vs. Q2 2024)
### Key Metrics
– **Rental Days** (Americas): 33.3 million (up 1% vs. Q2 2024)
– **Vehicle Utilization Rate**: 70.7% (up 0.5 percentage points vs. Q2 2024)
– **Average Rental Fleet Size**: 698,633 vehicles (down 0.8% vs. Q2 2024)
## Dividends and Share Repurchase
– **Quarterly Dividend**: There was no announcement of a quarterly dividend during Q2 2025.
– **Share Repurchase**: Avis repurchased $3 million in common stock during the quarter.
## Summary
This quarter showcased both challenges and strategic growth opportunities for Avis Budget Group, marked by a notable increase in Adjusted EBITDA while dealing with a decline in net income and revenue. The strategic advancements such as the launch of Avis First and the partnership with Waymo indicate the company’s efforts to innovate within the evolving mobility landscape.
| Three Months Ended | June 30, 2025 | June 30, 2024 | Six Months Ended | June 30, 2025 | June 30, 2024 |
|---|---|---|---|---|---|
| Revenues | $ 3,039 | $ 3,048 | $ 5,469 | $ 5,599 | |
| Expenses | |||||
| Operating | 1,526 | 1,532 | 2,879 | 2,876 | |
| Vehicle depreciation and lease charges, net | 636 | 733 | 1,691 | 1,369 | |
| Selling, general and administrative | 396 | 348 | 704 | 673 | |
| Vehicle interest, net | 229 | 244 | 439 | 483 | |
| Non-vehicle related depreciation and amortization | 60 | 58 | 116 | 119 | |
| Interest expense related to corporate debt, net: | |||||
| Interest expense | 110 | 88 | 207 | 171 | |
| Early extinguishment of debt | 3 | 1 | 3 | 1 | |
| Restructuring and other related charges | 59 | 14 | 81 | 17 | |
| Transaction-related costs, net | — | 1 | — | 2 | |
| Other (income) expense, net | 5 | 2 | 11 | 3 | |
| Total expenses | 3,024 | 3,021 | 6,131 | 5,714 | |
| Income (loss) before income taxes | 15 | 27 | -662 | -115 | |
| Provision for (benefit from) income taxes | 10 | 12 | -163 | -17 | |
| Net income (loss) | 5 | 15 | -499 | -98 | |
| Less: Net income attributable to non-controlling interests | 1 | 1 | 2 | 2 | |
| Net income (loss) attributable to Avis Budget Group, Inc. | $ 4 | $ 14 | $ -501 | $ -100 | |
| Earnings (loss) per share | |||||
| Basic | $ 0.10 | $ 0.41 | $ -14.24 | $ -2.80 | |
| Diluted | $ 0.10 | $ 0.41 | $ -14.24 | $ -2.80 | |
| Weighted average shares outstanding | |||||
| Basic | 35.2 | 35.6 | 35.2 | 35.6 | |
| Diluted | 35.4 | 35.7 | 35.2 | 35.6 |
| As of | June 30, 2025 | December 31, 2024 |
|---|---|---|
| Cash and cash equivalents | $ 541 | $ 534 |
| Program cash and restricted cash | 62 | 63 |
| Vehicles, net | 20,510 | 17,619 |
| Debt under vehicle programs | 19,914 | 17,536 |
| Corporate debt | 6,077 | 5,393 |
| Stockholders’ equity attributable to Avis Budget Group, Inc. | -2,745 | -2,327 |
