Avis Budget Group Reports Second Quarter Results

PARSIPPANY, N.J., July 29, 2025 (GLOBE NEWSWIRE) -- Avis Budget Group, Inc. (NASDAQ: CAR) announced financial results for second quarter 2025 today. We ended the quarter with revenues of $3.0 billion, net income of $5 million, and Adjusted EBITDA1 of $277 million. STRATEGIC ANNOUNCEMENTS Launch of Avis First – On July 21st, we launched Avis First, a premium product offering that sets a new standard for first-class car rental. Customers can now enjoy frictionless curbside pick-up and drop-off, featuring a dedicated concierge, premium current-model-year vehicles, and amenities that make the journey hassle-free. Learn more about the Avis First experience in our press release (https://www.avisbudgetgroup.com/fly-any-class-drive-first-class-welcome-to-avis-first/).Multi-year Partnership with Waymo - On July 29th, we announced a strategic partnership with Waymo to launch fully autonomous ride-hailing operations in Dallas, Texas. Avis will serve as a trusted mobility operations partner providing end-to-end fleet management services. Waymo will offer its ride-hailing service to the public through the Waymo app and remain responsible for validation and operation of the Waymo Driver. “At Avis Budget Group, we're building to scale where we hold structural advantages. With Avis First, we've created the category of first-class car rental; designed through product innovation and delivered with operational excellence. With our Waymo partnership, we're stepping into the autonomous future as a critical enabler of next-generation fleet management,” said Brian Choi, Avis Budget Group Chief Executive Officer. “We've always tried harder and that will never change. But now, we're not here just to compete. We're here to win by taking a leading role in the evolving mobility ecosystem.” Q2 OPERATIONAL HIGHLIGHTS Revenues were $3.0 billion, with revenue per day, excluding exchange rate effects, down 1%, and rental days flat to second quarter 2024.Adjusted EBITDA in the Americas was $220 million compared to $186 million in the same period last year, driven by lower fleet costs and an increase in vehicle utilization as compared to second quarter 2024.Adjusted EBITDA in International was $82 million compared to $48 million in the same period last year, driven by stronger pricing, decreased fleet costs, and improved vehicle utilization, slightly offset by a decrease in rental days.In May, we issued $600 million of unsecured Senior Notes and used the proceeds in June to repay in full the outstanding borrowings under our secured floating rate term loan due 2025, with the additional proceeds used to repay a portion of our unsecured Senior Notes due 2027.In July, we amended our $1.1 billion floating rate term loan, extending its maturity date from August 2027 to July 2032.Our liquidity position at the end of the quarter was nearly $950 million, with an additional $1.7 billion of fleet funding capacity. 1 Adjusted EBITDA and certain other measures in this release are non-GAAP financial measures. See "Non-GAAP Financial Measures and Key Metrics" and the tables that accompany this release for the definitions and reconciliations of these non-GAAP measures to the most comparable GAAP measures. SUPPLEMENTAL FINANCIALS Investors may access our second quarter supplemental financials on our investor relations website at ir.avisbudgetgroup.com. INVESTOR CONFERENCE CALL We will host a conference call to discuss our second quarter results on July 30, 2025, at 8:30 a.m. (ET). Investors may access the call on our investor relations website at ir.avisbudgetgroup.com or by dialing (877) 407-2991. A replay of the call will be available on our website and at (877) 660-6853 using conference code 13754996. ABOUT AVIS BUDGET GROUP We are a leading global provider of mobility solutions, both through our Avis and Budget brands, which have approximately 10,250 rental locations in approximately 180 countries around the world, and through our Zipcar brand, which is the world's leading car sharing network. We operate most of our car rental locations in North America, Europe and Australasia directly, and operate primarily through licensees in other parts of the world. We are headquartered in Parsippany, N.J. More information is available at avisbudgetgroup.com. NON-GAAP FINANCIAL MEASURES AND KEY METRICS This release includes financial measures such as Adjusted EBITDA and Adjusted Free Cash Flow, as well as other financial measures, that are not considered generally accepted accounting principle (“GAAP”) measures as defined under SEC rules. Important information regarding such non-GAAP measures is contained in the tables within this release and in Appendix I, including the definitions of these measures and reconciliations to the most comparable U.S. GAAP measures. We measure performance principally using the following key metrics: (i) rental days, (ii) revenue per day, (iii) vehicle utilization, and (iv) per-unit fleet costs. Our rental days, revenue per day and vehicle utilization metrics are all calculated based on the actual rental of the vehicle during a 24-hour period. We believe that this methodology provides management with the most relevant metrics in order to effectively manage the performance of our business. Our calculations may not be comparable to the calculations of similarly-titled metrics by other companies. We present currency exchange rate effects on our key metrics to provide a method of assessing how our business performed excluding the effects of foreign currency rate fluctuations. Currency exchange rate effects are calculated by translating the current-period's results at the prior-period average exchange rates plus any related gains and losses on currency hedges. FORWARD-LOOKING STATEMENTS Certain statements in this press release constitute “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995. The forward-looking statements contained herein are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause our actual results, performance or achievements to be materially different from those expressed or implied by any such forward-looking statements. Forward-looking statements include information concerning our future financial performance, business strategy, projected plans and objectives. These statements may be identified by the fact that they do not relate to historical or current facts and may use words such as “believes,” “expects,” “anticipates,” “will,” “should,” “could,” “may,” “would,” “intends,” “projects,” “estimates,” “plans,” “forecasts,” “guidance,” and similar words, expressions or phrases. The following important factors and assumptions could affect our future results and could cause actual results to differ materially from those expressed in such forward-looking statements. These factors include, but are not limited to: the high level of competition in the mobility industry, including from new companies or technology, and the impact such competition may have on pricing and rental volume; a change in our fleet costs, including as a result of a change in the cost of new vehicles, resulting from inflation, trade disputes, tariffs or otherwise, manufacturer recalls, disruption in the supply of new vehicles, including due to labor actions, trade disputes, tariffs or otherwise, shortages in semiconductors used in new vehicle production, and/or a change in the price at which we dispose of used vehicles either in the used vehicle market or under repurchase or guaranteed depreciation programs; the results of operations or financial condition of the manufacturers of our vehicles, which could impact their ability to perform their payment obligations under our agreements with them, including repurchase and/or guaranteed depreciation arrangements, and/or their willingness or ability to make vehicles available to us or the mobility industry as a whole on commercially reasonable terms or at all; levels of and volatility in travel demand, including future volatility in airline passenger traffic; a deterioration or fluctuation in economic conditions, resulting in a recession, decreased levels of discretionary consumer spending for travel, or otherwise, particularly during our peak season or in key market segments; an occurrence or threat of terrorism, pandemics, severe weather events or natural disasters, military conflicts, including the ongoing military conflicts in the Middle East and Eastern Europe, or civil unrest in the locations in which we operate, trade disputes and tariffs, and the potential effects of sanctions on the world economy and markets and/or international trade; any substantial changes in the cost or supply of fuel, vehicle parts, energy, labor or other resources on which we depend to operate our business, including as a result of pandemics, inflation, tariffs, the ongoing military conflicts in the Middle East and Eastern Europe, and any embargoes on oil sales imposed on or by the Russian government; our ability to successfully implement or achieve our business plans and strategies, achieve and maintain cost savings and adapt our business to changes in mobility, and successfully implement digital transformation initiatives; political, economic, or commercial instability and/or political, regulatory, or legal changes in the countries in which we operate, and our ability to conform to multiple and conflicting laws or regulations in those countries; the performance of the used vehicle market from time to time, including our ability to dispose of vehicles in the used vehicle market on attractive terms; our dependence on third-party distribution channels, third-party suppliers of other services and co-marketing arrangements with third parties; risks related to completed or future acquisitions or investments that we may pursue, including the incurrence of incremental indebtedness to help fund such transactions and our ability to promptly and effectively integrate any acquired businesses or capitalize on joint ventures, partnerships and other investments; our ability to utilize derivative instruments, and the impact of derivative instruments we utilize, which can be affected by fluctuations in interest rates, fuel prices and exchange rates, changes in government regulations and other factors; our exposure to uninsured or unpaid claims in excess of historical levels or changes in the number of incidents or cost per incident, and our ability to obtain insurance at desired levels and the cost of that insurance; risks associated with litigation or governmental or regulatory inquiries, or any failure or inability to comply with laws, regulations or contractual obligations or any changes in laws, regulations or contractual obligations, including with respect to personally identifiable information and consumer privacy, labor and employment, and tax; risks related to protecting the integrity of, and preventing unauthorized access to, our information technology systems or those of our third-party vendors, licensees, dealers, independent operators and independent contractors, and protecting the confidential information of our employees and customers against security breaches, including physical or cybersecurity breaches, attacks, or other disruptions, compliance with privacy and data protection regulation, and the effects of any potential increase in cyberattacks on the world economy and markets and/or international trade; any impact on us from the actions of our third-party vendors, licensees, dealers, independent operators and independent contractors and/or disputes that may arise out of our agreements with such parties; any major disruptions in our communication networks or information systems; risks related to tax obligations and the effect of future changes in tax laws and accounting standards; risks related to our indebtedness, including our substantial outstanding debt obligations, recent and future interest rate increases, which increase our financing costs, downgrades by rating agencies and our ability to incur substantially more debt; our ability to obtain financing for our global operations, including the funding of our vehicle fleet through the issuance of asset-backed securities and use of the global lending markets; our ability to meet the financial and other covenants contained in the agreements governing our indebtedness, or to obtain a waiver or amendment of such covenants should we be unable to meet such covenants; significant changes in the timing of our fleet rotation, carrying value of goodwill, or long-lived assets, including when there are events or changes in circumstances that indicate the carrying value may exceed the current fair value, which have in the past resulted in and in the future could result in a significant impairment charge; and other business, economic, competitive, governmental, regulatory, political or technological factors affecting our operations, pricing or services. We operate in a continuously changing business environment and new risk factors emerge from time to time. New risk factors, factors beyond our control, or changes in the impact of identified risk factors may cause actual results to differ materially from those set forth in any forward-looking statements. Accordingly, forward-looking statements should not be relied upon as a prediction of actual results. Moreover, we do not assume responsibility if future results are materially different from those forecasted or anticipated. Other factors and assumptions not identified above, including those discussed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” set forth in Part II, Item 7, in "Risk Factors," set forth in Part I, Item 1A, and in other portions of our 2024 Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on February 14, 2025 (the “2024 Form 10-K”), as well as in similarly titled sections set forth in Part I, Item 2 and Part II, Item 1A of our subsequently filed quarterly reports, may contain forward looking statements and involve uncertainties that could cause actual results to differ materially from those projected in any forward-looking statements. Although we believe that our assumptions are reasonable, any or all of our forward-looking statements may prove to be inaccurate and we can make no guarantees about our future performance. Should unknown risks or uncertainties materialize or underlying assumptions prove inaccurate, actual results could differ materially from past results and/or those anticipated, estimated or projected. We undertake no obligation to release any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events. For any forward-looking statements contained in any document, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. For additional information concerning forward-looking statements and other important factors, refer to our 2024 Form 10-K, Quarterly Reports on Form 10-Q and other filings with the SEC. Investor Relations Contact:Media Relations Contact:David Calabria, IR@avisbudget.comMedia Relations Team, ABGPress@coynepr.com *** Tables 1 - 6 and Appendix I attached *** Table 1 Avis Budget Group, Inc.SUMMARY DATA SHEET (Unaudited)(In millions) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 % Change 2025 2024 % Change Income Statement and Other Items Revenues$3,039 $3,048 —% $5,469 $5,599 (2)%Income (loss) before income taxes 15 27 (44)% (662) (115) n/m Net income (loss) attributable to Avis Budget Group, Inc. 4 14 (71)% (501) (100) n/m Adjusted EBITDA(a) 277 214 29% 184 226 (19)% As of June December 30, 31, 2025 2024 Balance Sheet Items Cash and cash equivalents $541 $534 Program cash and restricted cash 62 63 Vehicles, net 20,510 17,619 Debt under vehicle programs(b) 19,914 17,536 Corporate debt 6,077 5,393 Stockholders' equity attributable to Avis Budget Group, Inc. (2,745) (2,327) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 % Change 2025 2024 % ChangeSegment Results Revenues Americas$2,332 $2,361 (1)% $4,239 $4,354 (3)%International 707 687 3% 1,230 1,245 (1)%Total Company$3,039 $3,048 —% $5,469 $5,599 (2)% Adjusted EBITDA(a) Americas$220 $186 18% $153 $230 (33)%International 82 48 71% 79 33 139%Corporate and other(c) (25) (20) (25)% (48) (37) (30)%Total Company$277 $214 29% $184 $226 (19)% __________ n/m Not meaningful.(a)Refer to Table 5 for the reconciliation of net income (loss) to Adjusted EBITDA and Appendix I for the related definition of the non-GAAP financial measure.(b)Includes $855 million and $751 million of Class R notes due to Avis Budget Rental Car Funding (AESOP) LLC as of June 30, 2025 and December 31, 2024, respectively, which are held by us.(c)Includes unallocated corporate expenses which are not attributable to a particular segment. Table 2 Avis Budget Group, Inc.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)(In millions, except per share data) Three Months EndedJune 30, Six Months EndedJune 30, 2025 2024 2025 2024Revenues$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 Table 3 Avis Budget Group, Inc.KEY METRICS SUMMARY (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 % Change 2025 2024 % ChangeAmericas Rental Days (000’s) 33,292 32,940 1% 62,739 62,632 —%Revenue per Day$70.03 $71.67 (2)% $67.56 $69.51 (3)%Revenue per Day, excluding exchange rate effects$70.06 $71.67 (2)% $67.65 $69.51 (3)%Average Rental Fleet 517,363 515,852 —% 493,744 506,583 (3)%Vehicle Utilization 70.7% 70.2% 0.5 pps 70.2% 67.9% 2.3 ppsPer-Unit Fleet Costs per Month(a)$312 $361 (14)% $343 $344 —%Per-Unit Fleet Costs per Month, excluding exchange rate effects(a)$312 $361 (14)% $344 $344 —% International Rental Days (000’s) 11,653 12,094 (4)% 21,661 22,454 (4)%Revenue per Day$60.74 $56.85 7% $56.81 $55.47 2%Revenue per Day, excluding exchange rate effects$58.51 $56.85 3% $56.49 $55.47 2%Average Rental Fleet 181,270 189,293 (4)% 171,260 179,682 (5)%Vehicle Utilization 70.6% 70.2% 0.4 pps 69.9% 68.7% 1.2 ppsPer-Unit Fleet Costs per Month$278 $305 (9)% $276 $299 (8)%Per-Unit Fleet Costs per Month, excluding exchange rate effects$266 $305 (13)% $274 $299 (8)% Total Rental Days (000’s) 44,945 45,034 —% 84,400 85,086 (1)%Revenue per Day$67.62 $67.69 —% $64.80 $65.81 (2)%Revenue per Day, excluding exchange rate effects$67.06 $67.69 (1)% $64.78 $65.81 (2)%Average Rental Fleet 698,633 705,145 (1)% 665,004 686,265 (3)%Vehicle Utilization 70.7% 70.2% 0.5 pps 70.1% 68.1% 2.0 ppsPer-Unit Fleet Costs per Month(a)$303 $346 (12)% $326 $332 (2)%Per-Unit Fleet Costs per Month, excluding exchange rate effects(a)$300 $346 (13)% $326 $332 (2)% __________ Refer to Table 6 for key metrics calculations and Appendix I for key metrics definitions.(a)For the six months ended June 30, 2025, per-unit fleet costs excludes costs reported within vehicle depreciation and lease charges, net related to the accelerated disposal of certain fleet in our Americas reportable segment. These costs relate to vehicles that were not included in the long-lived asset impairment and other related charges recorded in 2024. Table 4 Avis Budget Group, Inc.CONDENSED CONSOLIDATED SCHEDULE OF CASH FLOWS AND ADJUSTED FREE CASH FLOW (Unaudited)(In millions) CONDENSED CONSOLIDATED SCHEDULE OF CASH FLOWSSix Months Ended June 30, 2025Operating Activities Net cash provided by operating activities$1,456 Investing Activities Net cash used in investing activities exclusive of vehicle programs (83)Net cash used in investing activities of vehicle programs (3,873)Net cash used in investing activities (3,956)Financing Activities Net cash provided by financing activities exclusive of vehicle programs 475 Net cash provided by financing activities of vehicle programs 1,996 Net cash provided by financing activities 2,471 Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash 35 Net change in cash and cash equivalents, program and restricted cash 6 Cash and cash equivalents, program and restricted cash, beginning of period 597 Cash and cash equivalents, program and restricted cash, end of period$603 ADJUSTED FREE CASH FLOW(a)Six Months Ended June 30, 2025Adjusted EBITDA(b)$184 Interest expense related to corporate debt, net (excluding early extinguishment of debt) (207)Working capital and other 336 Capital expenditures(c) (90)Tax payments, net of refunds (57)Vehicle programs and related(d) (641)Adjusted Free Cash Flow(b)$(475)Borrowings, net of debt repayments 490 Repurchases of common stock (3)Change in program and restricted cash (10)Other receipts (payments), net (19)Foreign exchange effects, financing costs and other 23 Net change in cash and cash equivalents, program and restricted cash (per above)$6 __________ Refer to Appendix I for the definitions of non-GAAP financial measures Adjusted EBITDA and Adjusted Free Cash Flow.(a)This presentation demonstrates the relationship between Adjusted EBITDA and Adjusted Free Cash Flow. We believe it is useful to understand this relationship because it demonstrates how cash generated by our operations is used. This presentation is not intended to be reconciliations of these non-GAAP measures, which are provided on Table 5.(b)Refer to Table 5 for the reconciliations of net income (loss) to Adjusted EBITDA and net cash provided by operating activities to Adjusted Free Cash Flow.(c)Includes $5 million of cloud computing implementation costs.(d)Includes vehicle-backed borrowings (repayments) that are incremental to amounts required to fund vehicle and vehicle-related assets. Table 5 Avis Budget Group, Inc.RECONCILIATION OF NON-GAAP MEASURES (Unaudited)(In millions) Three Months EndedJune 30, Six Months EndedJune 30, 2025 2024 2025 2024 Reconciliation of net income (loss) to Adjusted EBITDA: Net income (loss)$5 $15 $(499) $(98)Provision for (benefit from) income taxes 10 12 (163) (17)Income (loss) before income taxes 15 27 (662) (115)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 Other fleet charges(a) — — 390 — Restructuring and other related charges 59 14 81 17 Transaction-related costs, net — 1 — 2 Other (income) expense, net 5 2 11 3 Legal matters, net(b) 12 12 13 7 Cloud computing costs(c) 13 11 25 21 Adjusted EBITDA(d)$277 $214 $184 $226 Reconciliation of net cash provided by operatingactivities to Adjusted Free Cash Flow: Net cash provided by operating activities$1,456 Net cash used in investing activities of vehicle programs (3,873) Net cash provided by financing activities of vehicle programs 1,996 Capital expenditures (85) Proceeds received on asset sales 2 Change in program and restricted cash 10 Other receipts (payments), net 19 Adjusted Free Cash Flow$(475) __________ Refer to Appendix I for the definitions of Adjusted EBITDA and Adjusted Free Cash Flow, non-GAAP financial measures.(a)Costs reported within vehicle depreciation and lease charges, net related to the accelerated disposal of certain fleet in our Americas reportable segment. These costs relate to vehicles that were not included in the long-lived asset impairment and other related charges recorded in 2024.(b)Consists of $1 million reported within selling, general, and administrative expenses for the three months ended June 30, 2025 and $11 million and $12 million reported within operating expenses for the three months ended June 30, 2025 and 2024, respectively. Consists of $2 million reported within selling, general and administrative expenses for the six months ended June 30, 2025 and $11 million and $7 million reported within operating expenses for the six months ended June 30, 2025 and 2024, respectively.(c)Reported within operating expenses.(d)Includes stock-based compensation expense and vehicle related deferred financing fee amortization in the aggregate totaling $16 million in the three months ended June 30, 2025 and 2024, in each period. Includes stock-based compensation expense and vehicle related deferred financing fee amortization in the aggregate totaling $30 million and $31 million in the six months ended June 30, 2025 and 2024, respectively. Table 6 Avis Budget Group, Inc.KEY METRICS CALCULATIONS (Unaudited)($ in millions, except as noted) Three Months Ended June 30, 2025 Three Months Ended June 30, 2024 Americas International Total Americas International TotalRevenue per Day (RPD)Revenue$2,332 $707 $3,039 $2,361 $687 $3,048 Currency exchange rate effects 1 (25) (24) — — — Revenue excluding exchange rate effects$2,333 $682 $3,015 $2,361 $687 $3,048 Rental days (000's) 33,292 11,653 44,945 32,940 12,094 45,034 RPD excluding exchange rate effects (in $'s)$70.06 $58.51 $67.06 $71.67 $56.85 $67.69 Vehicle UtilizationRental days (000's) 33,292 11,653 44,945 32,940 12,094 45,034 Average rental fleet 517,363 181,270 698,633 515,852 189,293 705,145 Number of days in period 91 91 91 91 91 91 Available rental days (000's) 47,080 16,496 63,576 46,943 17,226 64,169 Vehicle utilization 70.7% 70.6% 70.7% 70.2% 70.2% 70.2% Per-Unit Fleet CostsVehicle depreciation and lease charges, net$484 $152 $636 $559 $174 $733 Currency exchange rate effects — (6) (6) — — — Vehicle depreciation excluding exchange rate effects$484 $146 $630 $559 $174 $733 Average rental fleet 517,363 181,270 698,633 515,852 189,293 705,145 Per-unit fleet costs (in $'s)$937 $799 $901 $1,084 $916 $1,039 Number of months in period 3 3 3 3 3 3 Per-unit fleet costs per month excluding exchange rate effects (in $'s)$312 $266 $300 $361 $305 $346 Six Months Ended June 30, 2025 Six Months Ended June 30, 2024 Americas International Total Americas International TotalRevenue per Day (RPD) Revenue$4,239 $1,230 $5,469 $4,354 $1,245 $5,599 Currency exchange rate effects 5 (6) (1) — — — Revenue excluding exchange rate effects$4,244 $1,224 $5,468 $4,354 $1,245 $5,599 Rental days (000's) 62,739 21,661 84,400 62,632 22,454 85,086 RPD excluding exchange rate effects (in $'s)$67.65 $56.49 $64.78 $69.51 $55.47 $65.81 Vehicle Utilization Rental days (000's) 62,739 21,661 84,400 62,632 22,454 85,086 Average rental fleet 493,744 171,260 665,004 506,583 179,682 686,265 Number of days in period 181 181 181 182 182 182 Available rental days (000's) 89,368 30,998 120,366 92,198 32,702 124,900 Vehicle utilization 70.2% 69.9% 70.1% 67.9% 68.7% 68.1% Per-Unit Fleet Costs(a) Vehicle depreciation and lease charges, net$1,017 $284 $1,301 $1,046 $323 $1,369 Currency exchange rate effects 1 (2) (1) — — — Vehicle depreciation excluding exchange rate effects$1,018 $282 $1,300 $1,046 $323 $1,369 Average rental fleet 493,744 171,260 665,004 506,583 179,682 686,265 Per-unit fleet costs (in $'s)$2,063 $1,644 $1,955 $2,065 $1,795 $1,995 Number of months in period 6 6 6 6 6 6 Per-unit fleet costs per month excluding exchange rate effects (in $'s)$344 $274 $326 $344 $299 $332 __________ Our calculation of rental days and revenue per day may not be comparable to the calculation of similarly-titled metrics by other companies. Currency exchange rate effects are calculated by translating the current-period's results at the prior-period average exchange rates plus any related gains and losses on currency hedges.(a)For the six months ended June 30, 2025, per-unit fleet costs excludes costs reported within vehicle depreciation and lease charges, net related to the accelerated disposal of certain fleet in our Americas reportable segment. These costs relate to vehicles that were not included in the long-lived asset impairment and other related charges recorded in 2024. Appendix I Avis Budget Group, Inc.DEFINITIONS OF NON-GAAP MEASURES AND KEY METRICS Adjusted EBITDAThe accompanying press release presents Adjusted EBITDA, which is a non-GAAP measure most directly comparable to net income (loss). Adjusted EBITDA is defined as income (loss) from continuing operations before non-vehicle related depreciation and amortization; long-lived asset impairment and other related charges; other fleet charges; restructuring and other related charges; early extinguishment of debt costs; non-vehicle related interest; transaction-related costs, net; legal matters, net, which primarily includes amounts recorded in excess of $5 million, related to unprecedented self-insurance reserves for allocated loss adjustment expense, class action lawsuits and personal injury matters; non-operational charges related to shareholder activist activity, which includes third-party advisory, legal and other professional fees; COVID-19 charges, net; cloud computing costs; other (income) expense, net; severe weather-related damages in excess of $5 million, net of insurance proceeds; and income taxes. In the first quarter of 2025, we revised our definition of Adjusted EBITDA to exclude other fleet charges. We did not revise prior years' Adjusted EBITDA amounts because there were no other charges similar in nature to these. We believe Adjusted EBITDA is useful as a supplemental measure in evaluating the performance of our operating businesses and in comparing our results from period to period. We also believe that Adjusted EBITDA is useful to investors because it allows them to assess our results of operations and financial condition on the same basis that management uses internally. Adjusted EBITDA is a non-GAAP measure and should not be considered in isolation or as a substitute for net income or other income statement data prepared in accordance with U.S. GAAP. Our presentation of Adjusted EBITDA may not be comparable to similarly-titled measures used by other companies. A reconciliation of Adjusted EBITDA from net income (loss) recognized under U.S. GAAP is provided on Table 5. Adjusted Free Cash FlowRepresents net cash provided by operating activities adjusted to reflect the cash inflows and outflows relating to capital expenditures, the investing and financing activities of our vehicle programs, asset sales, if any, and to exclude restructuring and other related charges; early extinguishment of debt costs; transaction-related costs; legal matters; non-operational charges related to shareholder activist activity; COVID-19 charges; other (income) expense; and severe weather-related damages. We believe that Adjusted Free Cash Flow is useful in measuring the cash generated that is available to be used to repay debt obligations, repurchase stock, pay dividends and invest in future growth through new business development activities or acquisitions. Adjusted Free Cash Flow should not be construed as a substitute in measuring operating results or liquidity, and our presentation of Adjusted Free Cash Flow may not be comparable to similarly-titled measures used by other companies. A reconciliation of Adjusted Free Cash Flow from net cash provided by operating activities recognized under U.S. GAAP is provided on Table 5. Adjusted EBITDA MarginRepresents Adjusted EBITDA as a percentage of revenues. Available Rental DaysDefined as Average Rental Fleet times the numbers of days in a given period. Average Rental FleetRepresents the average number of vehicles in our fleet during a given period of time. Currency Exchange Rate EffectsRepresents the difference between current-period results as reported and current-period results translated at the prior-period average exchange rates plus any related currency hedges. Gross Adjusted EBITDARepresents Adjusted EBITDA with the add-back of vehicle depreciation excluding other fleet charges and vehicle interest. Net Corporate DebtRepresents corporate debt minus cash and cash equivalents. Net Corporate LeverageRepresents Net Corporate Debt divided by Adjusted EBITDA for the twelve months prior to the date of calculation. Total Net Debt RatioRepresents total debt less cash and cash equivalents divided by Gross Adjusted EBITDA for the twelve months prior to the date of calculation. Per-Unit Fleet CostsRepresents vehicle depreciation, lease charges and gain or loss on vehicles sales, divided by Average Rental Fleet. Rental DaysRepresents the total number of days (or portion thereof) a vehicle was rented during a 24-hour period. Revenue per DayRepresents revenues divided by Rental Days. Vehicle UtilizationRepresents Rental Days divided by Available Rental Days.

Avis Budget Group Reports Second Quarter Results

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