Avis Budget Q4 Revenue Falls 1.7% to $2.66B, Adjusted EBITDA Misses by 96.6%
Avis Budget Group reported Q4 revenue of $2.66 billion, down 1.7% year-over-year and missing estimates by 2.9%. GAAP loss per share was $21.25 versus a $0.19 loss expected, and adjusted EBITDA plunged to $5 million, a 96.6% shortfall.
1. Revenue and Rental Days Decline
In Q4, revenue slipped 1.7% year-over-year to $2.66 billion, falling short of the $2.74 billion consensus. Available rental days decreased by 1.06 million to 60.76 million, signaling both lower demand and monetization challenges.
2. Profitability and EBITDA Shortfall
The company posted a GAAP loss of $21.25 per share compared with a $0.19 loss estimate, while adjusted EBITDA collapsed to $5 million versus $145.8 million projected. Operating margin rebounded to 33% from –9% a year earlier, reflecting tighter expense controls.
3. Cash Flow and Future Outlook
Free cash flow narrowed its deficit to –$181 million from –$579.3 million a year ago. CEO Brian Choi cited the quarter as a catalyst for meaningful change, and analysts forecast 1.9% revenue growth and a swing to positive EPS over the next 12 months.