Hertz (NYSE:HTZ) shares plunged more than 14% after the car rental agency reported a wider-than-expected loss for the first quarter.
The company posted an adjusted loss of $1.12 per share, compared to analysts' expectations of a $0.95 loss.
Revenue fell 13% year-over-year to $1.81 billion, missing the consensus $2.02 billion.
The decline was primarily attributed to an 8% reduction in fleet capacity.
Hertz CEO Gil West highlighted that the company has transitioned to a newer, more efficient fleet, with over 70% of the US rental fleet being less than a year old.
"Disciplined fleet management, revenue optimization, and rigorous cost control are driving meaningful results,” West said. “In a dynamic environment shaped by tariffs and economic uncertainty, capitalizing on our fleet as our most dominant economic lever keeps us agile today and positions us to deliver long-term, sustainable value.”
Hertz added that it is on track to achieve positive adjusted corporate EBITDA by Q3.
Shares of Hertz traded down 14.1% at about $6 in the early afternoon on Tuesday.