Operating income has deteriorated significantly, falling from $708 million in 2025Q3 to $48 million in 2026Q1, as the company struggles to maintain profitability amidst rising fleet costs.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Jan'97 |
|---|
| Sales/Revenue | 11.75B | 11.65B | 11.79B | 12.01B | 11.99B | 9.31B | 5.4B | 9.17B | 9.12B | 8.85B | 8.66B | 8.5B | 8.48B | 7.94B | 7.36B | 5.9B | 5.18B | 5.13B | 5.98B | 5.99B | 5.69B | 5.4B | 16.69B | 18.19B | 14.09B | 8.95B | 3.93B | 5.4B | 5.28B | 5.31B | 2.35B |
| Revenue Growth % | 0.72% | -1.16% | -1.82% | 0.12% | 28.79% | 72.4% | -41.1% | 0.53% | 3.12% | 2.18% | 1.85% | 0.2% | 6.9% | 7.88% | 24.69% | 13.79% | 1.05% | -14.25% | -0.03% | 5.22% | 5.35% | -67.64% | -8.26% | 29.13% | 57.41% | 127.74% | -27.25% | 2.24% | -0.58% | 126.38% | 65.92% |
| Cost of Goods Sold | 8.74B | 8.81B | 8.79B | 8.08B | 7.22B | 5.92B | 4.81B | 6.91B | 6.88B | 6.67B | 6.46B | 6.36B | 6.27B | 5.91B | 5.39B | 4.5B | 4B | 4.12B | 4.87B | 4.68B | 4.35B | 4.04B | 11.38B | 9.41B | 6.72B | 2.94B | 1.31B | 1.1B | 609.2M | -184M | -3M |
| COGS % of Revenue | - | 75.58% | 74.57% | 67.3% | 60.24% | 63.61% | 88.97% | 75.38% | 75.46% | 75.41% | 74.6% | 74.75% | 73.93% | 74.49% | 73.3% | 76.2% | 77.07% | 80.32% | 81.45% | 78.22% | 76.53% | 74.74% | 68.22% | 51.72% | 47.71% | 32.82% | 33.44% | 20.31% | 11.53% | -3.46% | -0.13% |
| Gross Profit | 3.01B | 2.85B | 3B | 3.93B | 4.77B | 3.39B | 596M | 2.26B | 2.24B | 2.18B | 2.2B | 2.15B | 2.21B | 2.02B | 1.96B | 1.4B | 1.19B | 1.01B | 1.11B | 1.3B | 1.33B | 1.36B | 5.3B | 8.78B | 7.37B | 6.01B | 2.62B | 4.3B | 4.67B | 5.5B | 2.35B |
| Gross Margin % | 25.59% | 24.42% | 25.43% | 32.7% | 39.76% | 36.39% | 11.03% | 24.62% | 24.54% | 24.59% | 25.4% | 25.25% | 26.07% | 25.51% | 26.7% | 23.8% | 22.93% | 19.68% | 18.55% | 21.78% | 23.47% | 25.26% | 31.78% | 48.28% | 52.29% | 67.18% | 66.56% | 79.69% | 88.47% | 103.46% | 100.13% |
| Gross Profit Growth % | - | -5.1% | -23.66% | -17.66% | 40.72% | 468.62% | -73.61% | 0.85% | 2.9% | -1.05% | 2.42% | -2.94% | 9.23% | 3.11% | 39.89% | 18.08% | 17.72% | -9.01% | -14.88% | -2.32% | -2.13% | -74.28% | -39.62% | 19.23% | 22.52% | 129.85% | -39.23% | -7.91% | -14.99% | 133.92% | 57.87% |
| Operating Expenses | 1.69B | 1.56B | 1.5B | 1.57B | 1.49B | 1.3B | 893M | 1.49B | 1.47B | 1.34B | 1.31B | 1.25B | 1.24B | 1.16B | 1.05B | 818M | 617M | 612M | 632M | 659M | 872M | 926M | 2.99B | 6.13B | 5.07B | 4.31B | 1.4B | 2.76B | 3.41B | 3.99B | 1.9B |
| OpEx % of Revenue | - | 13.42% | 12.72% | 13.12% | 12.39% | 13.97% | 16.53% | 16.27% | 16.14% | 15.17% | 15.17% | 14.69% | 14.65% | 14.59% | 14.34% | 13.86% | 11.9% | 11.93% | 10.56% | 11.01% | 15.33% | 17.15% | 17.92% | 33.69% | 36% | 48.16% | 35.7% | 51.04% | 64.49% | 75.07% | 81.1% |
| Selling, General & Admin | 1.57B | 1.44B | 1.35B | 1.41B | 1.35B | 1.15B | 703M | 1.24B | 1.22B | 1.12B | 1.13B | 1.09B | 1.08B | 1.02B | 925M | 756M | 583M | 548M | 581M | 613M | 818M | 857M | 2.76B | 3.12B | 2.51B | 2.01B | 1.07B | 1.69B | 1.82B | 1.99B | 1.2B |
| SG&A % of Revenue | - | 12.39% | 11.43% | 11.73% | 11.24% | 12.29% | 13.01% | 13.49% | 13.37% | 12.66% | 13.1% | 12.86% | 12.73% | 12.84% | 12.57% | 12.81% | 11.24% | 10.68% | 9.71% | 10.24% | 14.38% | 15.87% | 16.51% | 17.17% | 17.83% | 22.46% | 27.3% | 31.25% | 34.54% | 37.51% | 51.11% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 4M | 120M | 151M | 167M | 138M | 156M | 190M | 255M | 253M | 222M | 180M | 156M | 163M | 139M | 130M | 62M | 48M | 61M | 51M | 46M | 54M | 69M | -591M | 3B | 0 | 2.3B | 330M | 1.07B | 1.58B | 2B | 704.3M |
| Operating Income | 1.32B | 1.28B | 1.5B | 2.35B | 3.28B | 2.09B | -297M | 766M | 766M | 834M | 885M | 898M | 969M | 867M | 909M | 586M | 572M | 398M | 478M | 645M | 463M | 438M | 2.31B | 2.71B | 1.03B | 2.46B | 1.31B | 3.47B | 2.11B | 2.66B | 617M |
| Operating Margin % | 11.2% | 10.99% | 12.72% | 19.59% | 27.37% | 22.42% | -5.5% | 8.35% | 8.4% | 9.43% | 10.22% | 10.56% | 11.42% | 10.92% | 12.36% | 9.93% | 11.03% | 7.76% | 7.99% | 10.78% | 8.14% | 8.11% | 13.87% | 14.92% | 7.3% | 27.51% | 33.38% | 64.25% | 39.85% | 49.99% | 26.28% |
| Operating Income Growth % | - | -14.54% | -36.27% | -28.36% | 57.23% | 803.03% | -138.77% | 0% | -8.15% | -5.76% | -1.45% | -7.33% | 11.76% | -4.62% | 55.12% | 2.45% | 43.72% | -16.74% | -25.89% | 39.31% | 5.71% | -81.07% | -14.74% | 164.01% | -58.25% | 87.65% | -62.2% | 64.85% | -20.75% | 330.6% | 124.28% |
| EBITDA | 5.29B | 5.25B | 5.51B | 5.8B | 6.09B | 4.57B | 2.26B | 3.91B | 3B | 3.04B | 3.02B | 2.95B | 2.99B | 2.7B | 2.47B | 2.08B | 1.94B | 1.89B | 2.21B | 2.29B | 1.93B | 1.75B | 4.35B | 6.18B | 3.75B | 4.63B | 1.64B | 4.54B | 3.69B | 4.65B | 1.32B |
| EBITDA Margin % | 45.02% | 45.06% | 46.72% | 48.32% | 50.81% | 49.05% | 41.91% | 42.61% | 32.84% | 34.36% | 34.82% | 34.73% | 35.23% | 33.98% | 33.6% | 35.19% | 37.4% | 36.74% | 36.85% | 38.32% | 33.93% | 32.31% | 26.09% | 33.95% | 26.58% | 51.73% | 41.78% | 84.04% | 69.8% | 87.55% | 56.28% |
| EBITDA Growth % | -1.05% | -4.68% | -5.07% | -4.79% | 33.41% | 101.77% | -42.07% | 30.44% | -1.45% | 0.83% | 2.1% | -1.2% | 10.83% | 9.1% | 19.08% | 7.07% | 2.86% | -14.51% | -3.88% | 18.86% | 10.6% | -59.92% | -29.5% | 64.91% | -19.11% | 181.97% | -63.83% | 23.1% | -20.74% | 252.16% | 81.25% |
| D&A (Non-Cash Add-back) | 3.98B | 3.97B | 4.01B | 3.45B | 2.81B | 2.48B | 2.56B | 3.14B | 2.23B | 2.21B | 2.13B | 2.06B | 2.02B | 1.83B | 1.56B | 1.49B | 1.37B | 1.49B | 1.73B | 1.65B | 1.47B | 1.31B | 2.04B | 3.46B | 2.72B | 2.17B | 330M | 1.07B | 1.58B | 2B | 704.3M |
| EBIT | 1.32B | 1.28B | -1.33B | 2.98B | 4.34B | 2.25B | -387M | 816M | 763M | 676M | 850M | 904M | 899M | 611M | 826M | 546M | 553M | 379M | -886M | -545M | -115M | 423M | 2.34B | 2.65B | 2.29B | 1.61B | 1.26B | 1.55B | 1.34B | 1.01B | 446.6M |
| Net Interest Income | -1.44B | -1.39B | -358M | -296M | -250M | -218M | -557M | -514M | -188M | -188M | -203M | -194M | -209M | -228M | -268M | -219M | -170M | -153M | -129M | -127M | -236M | -172M | -251M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 13M | 0 | 0 | 0 | 0 | 12M | 15M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 1.44B | 1.4B | 358M | 296M | 250M | 218M | 569M | 529M | 188M | 188M | 203M | 194M | 209M | 228M | 268M | 219M | 162M | 153M | 129M | 127M | 236M | 1.34B | 251M | 797M | 1.27B | 1.84B | 401M | 3.93B | 1.46B | 2.36B | 340.8M |
| Other Income/Expense | -1.91B | -2.21B | -4.13B | -438M | 353M | -380M | -659M | -479M | -499M | -623M | -606M | -516M | -577M | -770M | -609M | -550M | -500M | -475M | -1.82B | -1.64B | -1.14B | -500M | -267M | -445M | -700M | -1.05B | -354M | -2.18B | -1B | -754.7M | -170.4M |
| Pretax Income | -592M | -929M | -2.63B | 1.91B | 3.64B | 1.71B | -956M | 287M | 267M | 211M | 279M | 382M | 392M | 97M | 300M | 36M | 72M | -77M | -1.34B | -992M | -677M | 1.35B | 2.55B | 2.21B | 1.64B | 658M | 885M | -635M | 264.4M | 294.7M | 276.2M |
| Pretax Margin % | -5.04% | -7.97% | -22.28% | 15.94% | 30.32% | 18.34% | -17.7% | 3.13% | 2.93% | 2.38% | 3.22% | 4.49% | 4.62% | 1.22% | 4.08% | 0.61% | 1.39% | -1.5% | -22.44% | -16.57% | -11.9% | 24.93% | 15.27% | 12.15% | 11.62% | 7.35% | 22.52% | -11.75% | 5% | 5.54% | 11.76% |
| Income Tax | 133M | 66M | -810M | 279M | 880M | 425M | -272M | -15M | 102M | -150M | 116M | 69M | 147M | 81M | 10M | 65M | 18M | -30M | -219M | -45M | -226M | 474M | 728M | 745M | 556M | 235M | 309M | -406M | 104.5M | 239.3M | 112.1M |
| Effective Tax Rate % | -22.47% | -7.1% | 30.83% | 14.58% | 24.2% | 24.88% | 28.45% | -5.23% | 38.2% | -71.09% | 41.58% | 18.06% | 37.5% | 83.51% | 3.33% | 180.56% | 25% | 38.96% | 16.31% | 4.54% | 33.38% | 35.22% | 28.57% | 33.71% | 33.96% | 35.71% | 34.92% | 63.94% | 39.52% | 81.2% | 40.59% |
| Net Income | -667M | -889M | -1.82B | 1.63B | 2.76B | 1.28B | -684M | 302M | 165M | 361M | 163M | 313M | 245M | 16M | 290M | -29M | 54M | -47M | -1.12B | -916M | -1.99B | 1.34B | 2.08B | 1.17B | 846M | 385M | 602M | -55M | 539.6M | 55.4M | 164.1M |
| Net Margin % | -5.68% | -7.63% | -15.45% | 13.59% | 23.04% | 13.8% | -12.66% | 3.29% | 1.81% | 4.08% | 1.88% | 3.68% | 2.89% | 0.2% | 3.94% | -0.49% | 1.04% | -0.92% | -18.78% | -15.3% | -35.05% | 24.83% | 12.48% | 6.44% | 6.01% | 4.3% | 15.32% | -1.02% | 10.21% | 1.04% | 6.99% |
| Net Income Growth % | 69.85% | 51.18% | -211.58% | -40.96% | 115.1% | 287.87% | -326.49% | 83.03% | -54.29% | 121.47% | -47.92% | 27.76% | 1431.25% | -94.48% | 1100% | -153.7% | 214.89% | 95.82% | -22.71% | 54.06% | -248.7% | -35.59% | 77.65% | 38.53% | 119.74% | -36.05% | 1194.55% | -110.19% | 874.01% | -66.24% | 0.43% |
| Net Income (Continuing) | -725M | -995M | -1.82B | 1.64B | 2.76B | 1.28B | -684M | 302M | 165M | 361M | 163M | 313M | 245M | 16M | 290M | -29M | 54M | -47M | -1.12B | -947M | -451M | -11M | 1.37B | 1.47B | 1.05B | 342M | 569M | -229M | 208M | 66.3M | 164.1M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.51B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 133M | 74M | 10M | 6M | 3M | 11M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 375M | 375M | 2.06B | 1.48B | 1.47B | 0 | 0 |
| EPS (Diluted) | -18.90 | -25.26 | -51.23 | 42.06 | 57.11 | 19.44 | -9.70 | 3.99 | 2.06 | 4.25 | 1.75 | 2.98 | 2.22 | 0.15 | 2.42 | -0.28 | 0.49 | -0.46 | -11.03 | -8.88 | -19.82 | 15.56 | 19.66 | 11.30 | 7.57 | 4.10 | 8.10 | -0.73 | 6.10 | -2.70 | 4.10 |
| EPS Growth % | 69.8% | 50.69% | -221.8% | -26.35% | 193.78% | 300.41% | -343.11% | 93.69% | -51.53% | 142.86% | -41.28% | 34.23% | 1380% | -93.8% | 964.29% | -157.14% | 206.52% | 95.83% | -24.21% | 55.2% | -227.38% | -20.85% | 73.98% | 49.27% | 84.63% | -49.38% | 1209.59% | -111.97% | 325.93% | -165.85% | -26.79% |
| EPS (Basic) | - | -25.26 | -51.23 | 42.61 | 58.44 | 19.80 | -9.70 | 4.02 | 2.08 | 4.32 | 1.78 | 3.02 | 2.32 | 0.15 | 2.72 | -0.28 | 0.53 | -0.46 | -11.03 | -8.88 | -19.82 | 15.56 | 20.29 | 11.50 | 7.57 | 4.20 | 8.40 | -0.73 | 6.40 | 1.29 | 4.10 |
| Diluted Shares Outstanding | 35.3M | 35.2M | 35.5M | 38.8M | 48.4M | 66.1M | 70.5M | 75.7M | 80.1M | 84.8M | 93.3M | 105M | 110.6M | 111.4M | 121.6M | 105.2M | 126.7M | 102.2M | 101.9M | 103.1M | 100.6M | 104M | 103.1M | 103.72M | 111.76M | 93.9M | 74.32M | 75.1M | 88.52M | 80.44M | 40.02M |
| Basic Shares Outstanding | 35.3M | 35.2M | 35.5M | 38.3M | 47.3M | 64.9M | 70.5M | 75.2M | 79.3M | 83.4M | 92M | 103.4M | 105.4M | 107.6M | 106.6M | 105.2M | 103.1M | 102.2M | 101.9M | 103.1M | 100.6M | 104M | 103.1M | 101.91M | 111.76M | 91.67M | 71.67M | 75.1M | 84.38M | 42.91M | 40.02M |
| Dividend Payout Ratio | - | - | - | 21.75% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 31.54% | 15.99% | - | - | - | - | - | - | 11.91% | 1.71% |
Fleet depreciation and debt
According to the provided quarterly data, Avis Budget Group's revenue growth has remained largely stagnant, fluctuating between a 4.1% increase and a 4.7% decline, suggesting that the company is struggling to maintain top-line momentum as post-pandemic travel demand patterns normalize across its core geographic segments.
The revenue trajectory appears to be heavily tethered to seasonal travel peaks rather than structural growth, as evidenced by the consistent Q3 revenue spikes followed by sequential declines. This pattern suggests that the company lacks the pricing power or volume expansion necessary to offset the inherent cyclicality of the rental market.
As reported in financial statements, the company's gross margin has experienced significant volatility, contracting from a peak of 36.2% in 2025Q3 to 16.3% by 2026Q1, which indicates a weakening ability to pass through rising fleet acquisition and maintenance costs to the end consumer.
The sharp decline in gross margins suggests that the favorable used-vehicle market conditions that previously bolstered profitability have reversed. Investors should monitor whether this compression is a temporary cyclical trough or a permanent shift in the cost-to-revenue spread as vehicle depreciation accelerates.
Based on the reported figures, operating income has failed to scale efficiently with revenue, dropping from $708 million in 2025Q3 to just $48 million in 2026Q1, demonstrating that the company's high fixed-cost base remains a significant drag on profitability during periods of lower utilization.
The inability to maintain operating margins during revenue dips implies that the company's cost structure is insufficiently flexible to handle demand fluctuations. This lack of operating leverage suggests that the business model remains highly sensitive to volume, leaving little room for error in fleet management.
Analysis of the income statement reveals that net income has turned deeply negative in recent periods, with a net loss of $283 million in 2026Q1, highlighting that non-operating items and interest expenses are currently overwhelming the company's core operational earnings capacity.
The wide variance between operating income and net income suggests that the company's capital structure, particularly its debt-heavy fleet financing, is creating significant bottom-line pressure. This discrepancy warrants further investigation into the sustainability of interest coverage ratios given the current trend of negative net margins.
Data from recent filings indicates that the company's net margin has plummeted to -11.2% as of 2026Q1, raising concerns that the current debt-funded fleet strategy may be unsustainable if the used vehicle market continues to experience downward pricing pressure on residual values.
Short-sellers may focus on the disconnect between the company's historical reliance on vehicle sales gains and its current inability to generate consistent net income. The risk remains that the company is effectively subsidizing its rental operations through debt, which may become increasingly difficult to service.
Quick answers to the most common questions about buying CAR stock.
For fiscal year 2025, Avis Budget Group, Inc. (CAR) reported total revenue of $11.65B. This represents a 396.3% increase compared to $2.35B in 1996.
Avis Budget Group, Inc. (CAR) reported a net loss of $889.0M for the fiscal year ending 2025.
Avis Budget Group, Inc. (CAR) reported an operating income of $1.28B, resulting in an operating profit margin of 11.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Avis Budget Group, Inc. (CAR) generated $2.85B in gross profit for the year, representing a gross profit margin of 24.4%. This demonstrates the company's core pricing power and production efficiency.