Hertz Stock Plummets 41% On Used-Car Loss Warning And Capital Raise
Hertz Global Holdings stock crashed 41 percent on June 24th after the car rental company warned of unexpected weakness in the used-car market that will hurt second-quarter earnings. The company lowered its adjusted EBITDA guidance to 50 to 80 million dollars, down from earlier expectations. Vehicle depreciation costs hit around 300 dollars per unit monthly, higher than anticipated. The company also announced it will raise 300 million dollars through convertible debt notes and 100 million dollars through a stock offering structure involving borrowed shares. Analysts said the combination of weaker earnings, higher depreciation costs, and the dilutive financing plan triggered the sharp sell-off. The stock continued sliding another 11 percent on June 25th, bringing the two-day decline to roughly 50 percent. Hertz carries significant debt of about 20 billion dollars, leaving little room for earnings shortfalls.
Key facts
- Hertz stock dropped 41 percent on June 24, 2026, its worst day since relisting in 2021
- Company lowered Q2 adjusted EBITDA guidance to 50-80 million dollars from higher expectations
- Vehicle depreciation per unit expected to reach approximately 300 dollars monthly, above earlier forecast
- Hertz announced 300 million dollars in exchangeable PIK notes and 100 million dollars in borrowed shares offering
- Stock fell additional 11 percent on June 25, putting two-day decline near 50 percent
- Company carries long-term debt of approximately 20.6 billion dollars
- Q1 2026 net income was negative 333 million dollars with negative profit margins
How different outlets framed it
Right-leaning coverage: Right-leaning and trader-focused outlets stress that high leverage combined with negative earnings and fresh equity dilution explains why the stock is getting crushed. StocksToTrade and Timothy Sykes' analysis emphasize the harsh math: a company with 333-million-dollar quarterly losses, 20-billion-dollar debt, and a now-broken vehicle resale economics cannot absorb this kind of shock.
Limits of this briefing
Sources found are almost entirely centrist and right-leaning financial/trading outlets; no distinctly left-leaning media coverage of this corporate earnings story was located. The used-car market weakness and its duration remain somewhat unclear from available reporting.
Sources
- Bloomberg: Hertz (HTZ) Stock Plunges Toward Record Weekly Drop after Bond Offerings Centre
- TT News (Transportation Topics): Hertz Shares Plunge After Debt Plan and Profit Warning Centre
- StocksToTrade: HTZ Stock Craters As Used-Car Losses Collide With Dilutive Deal Right
- Yahoo Finance: Why Hertz (HTZ) Stock Is Falling Today Centre
- PYMNTS: Hertz Shares Plunge 33% After Unexpected Used Car Market Slump Centre