CAR

Avis Budget operates the Avis, Budget and Zipcar rental brands with an average fleet of ~684,000 vehicles, but the financials are in distress. FY2025 revenue fell 1.2% to $11.7B and the company posted a net loss of -$889M (diluted EPS -$25.25) on top of a -$1.82B loss in FY2024 — two consecutive years of heavy losses after the 2021-2023 boom. Most damaging, stockholders' equity is deeply negative at -$3.13B and worsening (-34.5%), meaning liabilities exceed assets and the equity has been wiped out by accumulated losses and leverage. Long-term debt rose 12.6% to $6.05B.

The loss driver is structural to the model: fleet costs are 'our single largest expense,' and roughly 84% of the fleet is 'risk vehicles' exposed to used-car residual values. Management recorded '$518 million in long-lived asset impairment' in Q4 2025 to write down U.S. EV rental vehicles after shortening their useful life, illustrating how quickly residual-value resets flow into losses. The filing warns that 'a reduction in residual values for risk vehicles... could cause us to sustain a substantial loss,' and competition is intensifying from ride-hailing, car-sharing and new mobility entrants. While Adjusted EBITDA was positive at $748M and operating cash flow was large at $3.30B, that cash flow is dominated by fleet financing and depreciation add-backs, not equity-holder earnings.