Capital intensity remains a critical liquidity constraint, as evidenced by 2026Q1 capital expenditures of $3.6 billion, which represented 181.2% of quarterly revenue.
| 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 |
|---|
| Cash from Operations | 1.39B | 1.63B | 2.22B | 2.47B | 2.54B | 1.81B | 953M | 2.9B | 2.56B | 2.39B | 2.53B | 3.33B | 3.45B | 3.59B | 2.72B | 2.23B | 2.21B | 1.77B | 2.1B | 3.09B | 2.61B | 1.45B |
| Operating CF Margin % | - | 19.11% | 24.58% | 26.4% | 29.22% | 24.62% | 18.12% | 29.66% | 26.89% | 27.2% | 28.73% | 36.95% | 31.25% | 33.31% | 30.13% | 26.91% | 29.21% | 24.99% | 24.58% | 35.57% | 32.45% | 940.52% |
| Operating CF Growth % | -188.64% | -26.93% | -10.11% | -2.52% | 40.53% | 89.51% | -67.14% | 13.46% | 6.77% | -5.34% | -24.1% | -3.48% | -3.83% | 32.07% | 21.7% | 1.12% | 24.43% | -15.29% | -32.17% | 18.16% | 79.97% | - |
| Net Income | -637M | -747M | -2.86B | 616M | 2.06B | 365M | -1.72B | -50M | -227M | 327M | -474M | 273M | -82M | 346.2M | 243.08M | 195.73M | -30.66M | -111.34M | -1.21B | 264.56M | 115.94M | 349.98M |
| Depreciation & Amortization | 1.73B | 2.27B | 4.12B | 2.57B | 1B | 796M | 2.48B | 2.99B | 2.76B | 2.96B | 2.8B | 3.04B | 3.32B | 2.77B | 2.33B | 2.04B | 2.01B | 2.16B | 2.43B | 2.24B | 2.02B | 190.7M |
| Stock-Based Compensation | 30M | 0 | -5M | 87M | 130M | 10M | -2M | 18M | 14M | 19M | 13M | 17M | 11M | 34.8M | 30.25M | 31.09M | 36.56M | 35.46M | 28.02M | 0 | 0 | 0 |
| Deferred Taxes | -18M | -132M | -459M | -380M | 0 | 270M | -353M | 27M | -66M | -922M | -78M | 3M | 6M | 241.3M | 128.76M | 68.14M | -26.12M | 111.23M | -234.81M | 59.74M | 30.35M | -423.7M |
| Other Non-Cash Items | 579M | 166M | 948M | -49M | -335M | 783M | 360M | 70M | 93M | 198M | 418M | -9M | 137M | 189M | 153.56M | 103.51M | 227.82M | 186.79M | 1.42B | 107.47M | 298.81M | 1.63B |
| Working Capital Changes | -292M | 73M | 480M | -371M | -320M | -418M | 187M | -159M | -22M | -190M | -146M | 6M | 60M | 6.5M | -162.73M | -202.79M | -7.57M | -604.26M | -340.59M | 378.59M | 290.35M | -304.05M |
| Change in Receivables | -127M | -11M | 23M | -216M | -264M | -210M | 195M | -88M | -136M | -75M | -174M | -58M | -90M | -34.7M | -157.73M | -208.72M | -60.63M | 0 | 0 | 84.54M | 229.66M | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | -21M | -108M | 0 | -131M | -33M | -22M | -64M | -28M | -30.8M | 478K | -61.89M | 5.57M | 17.96M | 709K | -17.13M | 0 |
| Change in Payables | 36M | 12M | -14M | -48M | 0 | -70M | 98M | 65M | 70M | 20M | 31M | -16M | 23M | 23.2M | 49.9M | -1.14M | 118.01M | -227.48M | 36.62M | 304.17M | -4.71M | 0 |
| Cash from Investing | -2.38B | -2B | -2.93B | -4.02B | -4.23B | -3.54B | 4.59B | -4.42B | -4.2B | -3.15B | -2B | -2.77B | -3.18B | -3.84B | -4.75B | -2.19B | -943.57M | -1.29B | -1.46B | -2.34B | -2.29B | -6.49B |
| Capital Expenditures | -9.32B | -10.28B | -10.63B | -9.7B | -4.25B | -7.22B | -5.64B | -13.94B | -12.67B | -10.77B | -11.09B | -12.98B | -11.66B | -10.61B | -9.93B | -9.74B | -8.62B | -7.63B | -10.2B | -11.73B | -11.87B | -13.11B |
| CapEx % of Revenue | 107.21% | 120.88% | 117.46% | 103.53% | 48.91% | 98.49% | 107.27% | 142.53% | 133.31% | 122.33% | 125.99% | 144.01% | 105.59% | 98.49% | 110.03% | 117.32% | 113.98% | 107.41% | 119.68% | 135.1% | 147.28% | 8485.23% |
| Acquisitions | 6.9B | 8.29B | 0 | 5.68B | 0 | 871M | 10.08B | -1M | -2M | 95M | 220M | 267M | -105M | -254M | -1.82B | -227.08M | -47.57M | -76.42M | -70.92M | 0 | -2.03B | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 51M | 0 | 7.7B | -1M | 15M | 2.81B | 10.16B | 9.51B | 8.5B | 26M | 186M | 9.95B | 8.59B | 7.03B | 7B | 7.77B | 7.72B | 7.9B | 8.81B | 9.39B | 11.87B | 6.61B |
| Cash from Financing | 1.16B | 372M | 658M | 1.31B | 487M | 2.85B | -5.37B | 1.47B | 1.56B | 988M | -183M | -540M | -159M | 126.9M | 1.62B | -1.49B | 133.75M | -129.07M | -695.32M | -734.09M | -583.87M | 5.27B |
| Debt Issued (Net) | 1.24B | 421M | 726M | 1.68B | 3.01B | 8M | -5.32B | 767M | 1.57B | 1.05B | -2.19B | 175M | -90M | 716M | 1.72B | -1.38B | 227.09M | -603.3M | -616.84M | -691.07M | -598.02M | 2.54B |
| Equity Issued (Net) | 0 | 0 | 0 | -315M | -2.46B | 535M | 28M | 748M | 0 | 0 | -100M | -605M | 0 | -555M | 15.49M | 0 | -4.62M | 528.96M | 138K | 5.6M | 1.28B | 2.1B |
| Dividends Paid | 0 | 0 | -7M | 0 | 0 | -239M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -15.05M | -24.15M | -13.47M | -1.27B | -1.19B |
| Share Repurchases | 0 | 0 | 0 | -315M | -2.46B | -654M | 0 | 0 | 0 | 0 | -100M | -605M | 0 | -555M | 0 | -11.46M | -7.84M | -2.22M | 0 | 0 | 0 | 0 |
| Other Financing | -81M | -49M | -61M | -50M | -65M | 2.54B | -77M | -41M | -8M | -64M | 2.11B | 62M | -69M | -34M | -108.5M | -109.37M | -88.72M | -39.67M | -54.47M | -35.14M | 0 | 1.19B |
| Net Change in Cash | 198M | 34M | -73M | -212M | -1.23B | 1.07B | 218M | -50M | -94M | 256M | 342M | -4M | 79M | -122.3M | -398.52M | -1.44B | 1.39B | 391.38M | -135.94M | 55.65M | -169.36M | 165.94M |
| Free Cash Flow | -4.86B | -8.65B | -8.4B | -7.23B | -1.71B | -5.42B | -4.69B | -11.04B | -10.11B | -8.38B | -8.56B | -9.65B | -8.21B | -7.02B | -7.21B | -7.5B | -6.41B | -5.85B | -8.11B | -8.64B | -9.25B | -11.65B |
| FCF Margin % | -55.86% | -101.78% | -92.88% | -77.13% | -19.69% | -73.87% | -89.14% | -112.87% | -106.42% | -95.14% | -97.26% | -107.05% | -74.33% | -65.17% | -79.9% | -90.41% | -84.78% | -82.42% | -95.1% | -99.53% | -114.84% | -7544.71% |
| FCF Growth % | -168.19% | -2.97% | -16.28% | -322.69% | 68.44% | -15.62% | 57.54% | -9.14% | -20.76% | 2.18% | 11.3% | -17.56% | -16.92% | 2.57% | 3.93% | -17.02% | -9.54% | 27.81% | 6.21% | 6.59% | 20.59% | - |
| FCF per Share | -15.47 | -26.88 | -27.47 | -22.17 | -4.24 | -17.20 | -31.25 | -94.34 | -105.37 | -88.30 | -89.20 | -92.83 | -79.13 | -66.22 | -70.37 | -73.81 | -68.10 | -68.94 | -109.93 | -116.21 | -166.39 | -159.05 |
| FCF Conversion (FCF/Net Income) | 7.62x | -2.18x | -0.78x | 4.02x | 1.23x | 4.93x | -0.56x | -50.00x | -11.36x | 7.32x | -5.15x | 12.21x | -42.10x | 11.89x | 11.18x | 12.68x | -45.97x | -14.08x | -1.74x | 11.68x | 22.55x | -68.06x |
| Interest Paid | 486M | 0 | 798M | 721M | 372M | 455M | 0 | 703M | 665M | 582M | 527M | 561M | 550M | -651M | -560M | 640.6M | 533.04M | 635.15M | 763.95M | 814.06M | 0 | 0 |
| Taxes Paid | 47M | 0 | 53M | 33M | 0 | 40M | 0 | 21M | 26M | 54M | 57M | 24M | 42M | -71M | -72M | 49.6M | 50.69M | 31.32M | 33.41M | 28.29M | 0 | 0 |
Fleet Residual Value Volatility
As reported in recent financial statements, Hertz's operating cash flow frequently diverges from net income, with the company posting a net loss of $333 million in 2026Q1 while generating only $20 million in operating cash, suggesting significant reliance on non-cash adjustments to maintain positive cash flow metrics.
The persistent gap between net losses and operating cash flow indicates that the company's reported earnings are heavily influenced by non-cash depreciation charges rather than operational profitability. Investors should monitor whether this cash flow generation is sustainable or if it is merely a byproduct of aggressive fleet turnover accounting.
Based on quarterly filings, Hertz's capital expenditure reached a staggering $3.6 billion in 2026Q1, representing 181.2% of revenue, which highlights the extreme capital intensity required to maintain a competitive fleet and the ongoing pressure this places on the company's overall liquidity and financial flexibility.
The high ratio of capital expenditure to revenue suggests that the company is trapped in a cycle of constant reinvestment to refresh its vehicle fleet. This level of spending appears to leave little room for error, as any disruption in the secondary vehicle market could severely impair the company's ability to fund these necessary capital outlays.
According to historical data, Hertz's free cash flow trajectory has been highly erratic, swinging from a negative $3.6 billion in 2026Q1 to a positive $626 million in 2025Q3, reflecting the company's extreme sensitivity to seasonal demand and the high costs associated with managing its massive rental fleet.
The wild fluctuations in free cash flow suggest that the business model is inherently unstable and highly susceptible to external market shocks. This volatility makes it difficult to project long-term cash generation, as the company's ability to produce free cash is often overshadowed by the massive capital requirements of its fleet operations.
As indicated by recent cash flow statements, Hertz experienced a significant working capital outflow of $269 million in 2026Q1, which suggests that the company is struggling to optimize its cash conversion cycle amidst the complexities of managing a large, multi-brand vehicle fleet and fluctuating rental demand.
The recurring negative working capital changes imply that the company may be facing challenges in managing its payables and inventory effectively. This trend warrants further investigation, as it may indicate that the company is forced to tie up significant cash in its operations to maintain its service levels.
Quick answers to the most common questions about buying HTZ stock.
Hertz Global Holdings, Inc. (HTZ) generated $1.63B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Hertz Global Holdings, Inc. (HTZ) reported negative free cash flow of $8.65B in 2025, indicating capital requirements exceeded cash from operations.
Hertz Global Holdings, Inc. (HTZ) spent $10.28B on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.