Hertz 2026: Q2 EBITDA guide, $400m raise hits stock

What triggered the sharp move in Hertz shares

Hertz Global Holdings shares fell sharply in pre-market trading on Wednesday, June 24, 2026, after the car rental company published a preliminary second-quarter update and announced multiple financing transactions. Reports cited pre-market declines of more than 20%, with the stock down as much as 28% at one point before regular trading. The selloff followed a trio of disclosures made after the market close on June 23: an updated outlook for second-quarter profitability, a proposed stock offering, and a proposed exchangeable notes issuance.

The market reaction was amplified by the timing and the combined effect of the announcements. Investors were asked to process a weaker near-term earnings setup at the same time as an equity-linked debt deal and a direct equity issuance, both of which can raise dilution concerns. The broader car rental sector did not see similar moves at the same time, pointing to a company-specific repricing.

Q2 2026 guidance: EBITDA stays in-range, but near the low end

In a preliminary disclosure filed with the U.S. Securities and Exchange Commission, Hertz said it now expects second-quarter 2026 Adjusted Corporate EBITDA to be in the range of $10 million to $10 million. The company indicated that results are expected to be at the lower end of its expectations for that range.

Hertz tied the shift to “unexpected” weakness in the used vehicle market. The company said losses on vehicle sales in May 2026 offset gains recorded in April 2026, affecting net depreciation per unit per month. This change in the resale environment matters for rental companies because fleet depreciation and proceeds from vehicle sales can materially influence quarterly profitability.

Used-car headwinds push depreciation higher

Hertz said it now expects net depreciation per unit per month in the second quarter to be approximately $100. The company linked the higher depreciation pressure to softer-than-anticipated used-vehicle prices.

The company framed the change as an operational and market-driven headwind rather than a demand collapse for rentals. It highlighted the May-versus-April swing in vehicle sale outcomes as a key driver of the revised profitability outlook. The disclosure suggests that fleet economics, rather than rental volume, are the principal source of pressure in the quarter.

Operational indicators: fleet size and rental demand described as steady

Despite the depreciation headwind, Hertz said several operating metrics are expected to meet or slightly exceed prior expectations. According to the update, fleet size, revenue, revenue per day, and rental days are expected to meet or slightly exceed earlier views.

Hertz also said demand remains healthy and capacity utilization performed better than anticipated. In addition, the company stated that year-over-year revenue per day growth in the second quarter to date has accelerated above the trend seen in the first quarter. These points were presented as offsets to the used-car-driven pressure on depreciation and vehicle sale results.

The financing package: stock offering and exchangeable PIK notes

Alongside the business update, Hertz announced financing plans that added to investor concern about dilution and leverage.

First, Hertz disclosed a proposed offering of $100 million of common stock through a share lending arrangement with J.P. Morgan Securities LLC. Separately, Hertz said its wholly owned subsidiary, The Hertz Corporation, intends to offer $100 million aggregate principal amount of Exchangeable Senior First-Lien Secured PIK Notes due 2030 in a private placement to qualified institutional buyers under Rule 144A.

The notes are described as exchangeable into Hertz common stock at the option of The Hertz Corporation, creating an overhang tied to potential dilution. Hertz also said proceeds from the notes are expected to be used to repay existing debt, while the company indicated it will not directly benefit from the sale of shares tied to the share-lending structure.

Price action and context around the selloff

Hertz shares closed Tuesday’s regular session at $1.06 and fell to around $1.14 in pre-market trading Wednesday, a move described as roughly $1.92, or 18.18%, from the prior close. Other reports cited declines approaching 20% or more, reflecting volatility around the announcements.

Separately reported longer-window performance figures in the same coverage showed HTZ down 2% year-to-date and 21% over the past 12 months. Another live update cited the stock trending down 26.38% intraday on June 24, 2026, underscoring how quickly sentiment deteriorated after the filings.

Financial snapshot highlighted in market commentary

Some market commentary accompanying the news pointed to a “big revenue, thin profit” profile. The most recent reported quarter referenced in the coverage showed roughly $1,000 million in revenue, alongside a net loss of $133 million. The same commentary cited EBITDA of -$159 million and operating income of -$10 million, describing core profitability as pressured.

That backdrop helps explain why an incremental hit from used-car depreciation and a concurrent financing package could trigger an outsized stock reaction. When profitability is already thin, changes in depreciation assumptions and capital structure can disproportionately influence equity valuation.

Key numbers at a glance

Market impact: why the used-car line item mattered

The update shows how sensitive Hertz’s quarterly results can be to used-vehicle pricing and fleet depreciation. Losses on vehicle sales in May, after gains in April, altered the depreciation profile in a way that management linked directly to second-quarter profitability. Even as Hertz pointed to steady demand and improving year-over-year revenue per day growth, the resale and depreciation dynamics were enough to move guidance toward the low end.

The proposed offerings added a separate source of pressure. A direct $100 million stock offering can dilute existing shareholders, while exchangeable notes can create a longer-running dilution overhang depending on conversion economics and hedging activity. Together with an EBITDA update that did not reassure investors, the package created a concentrated negative signal.

Analysis: what investors will likely watch next

The near-term focus is on final Q2 results as the quarter closes on June 30, along with management’s commentary on used-car values and depreciation trends. Investors will also watch how the financing transactions are structured and priced, given their potential implications for dilution and balance sheet positioning.

The disclosures also sharpen attention on the interaction between fleet strategy and used-vehicle markets. Hertz said fleet size and rental activity are holding up, but the profitability outcome is still being shaped by vehicle resale and depreciation. That makes future updates on used-vehicle pricing and fleet remarketing performance central to how the market assesses the company.

Conclusion

Hertz’s June 24 disclosures combined a softer used-car backdrop with a $100 million equity offering and a $100 million exchangeable notes plan, prompting a sharp repricing in the stock. The company maintained an Adjusted Corporate EBITDA range of $10 million to $10 million for Q2 2026, but indicated results are likely near the low end as depreciation rises to about $100 per unit per month. Next catalysts include the final second-quarter results after June 30 and further details on the execution and pricing of the proposed offerings.