Avis Budget Q4 Revenue Misses by 2.9%, EBITDA Slumps to $5M
Avis Budget Group’s Q4 revenue fell 1.7% to $2.66 billion, 2.9% below estimates, and adjusted EBITDA plunged to $5 million while non-GAAP loss per share widened to $4.69 versus –$0.38 forecasts. It took a $500 million EV write-down and $40 million in recall charges, shifting in 2026 to tighter utilization, capital discipline.
1. Q4 Financial Performance
Avis Budget Group’s revenue fell 1.7% year-on-year to $2.66 billion, missing estimates by 2.9%. Adjusted EBITDA plunged to $5 million and non-GAAP loss per share widened to $4.69 versus forecasts of –$0.38.
2. Significant Charges and Write-downs
The company booked a $500 million write-down on its electric vehicle fleet to reduce residual value risk and monetize tax credits, and recorded $40 million in recall-related charges, increasing insurance reserves.
3. 2026 Strategic Reset
Management will shift in 2026 to tighter utilization, capital discipline and cost rationalization, focusing on leaner fleet operations and balanced capital allocation to reduce earnings volatility.