Avis Budget Group reports $183 million net income for Q3 2026

Cover page 2 changes

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For the quarterly period ended June September 30, 2026

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As of July 22, October 28, 2026, the number of shares outstanding of the registrant's common stock was 35,325,754 35,337,823 .

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Forward-looking statements 1 change

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• risks associated with litigation or governmental or regulatory inquiries uncertainties related to the ability to recover amounts pursuant to settlement agreements, including risks related to the failure to obtain any necessary court approvals, timing related to such approvals and any potential termination of such settlement agreements, 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;

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Financial statements 153 changes

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June 30, Six Months Ended

Revenues $ 2,998 $ 3,039 $ 5,528 $ 5,469

Operating 1,526 1,526 2,948 2,879

Vehicle depreciation and lease charges, net 583 636 1,247 1,691

Selling, general and administrative 385 396 726 704

Vehicle interest, net 232 229 461 439

September 30, Nine Months Ended

Revenues $ 3,436 $ 3,519 $ 8,964 $ 8,988

Operating 1,621 1,513 4,569 4,392

Vehicle depreciation and lease charges, net 668 678 1,915 2,369

Selling, general and administrative 398 422 1,124 1,126

Vehicle interest, net 247 248 708 687

Non-vehicle related depreciation and amortization 60 60 118 116 69 58 187 174

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Interest expense 108 110 217 207

Other (income) expense, net 1 5 7 11

Total expenses 2,925 3,024 5,795 6,131

Net income (loss) 63 5 ( 171 ) ( 499 )

Interest expense 108 109 325 316

Early extinguishment of debt 3 3 — 3 3 6

Restructuring and other related charges 18 59 53 81 5 13 58 94

Transaction-related costs, net 9 2 — 15 17 —

Other (income) expense, net 9 2 16 13

Total expenses 3,127 3,046 8,922 9,177

Income (loss) before income taxes 73 15 ( 267 ) 309 473 42 ( 662 189 )

Provision for (benefit from) income taxes 10 10 ( 96 ) 110 113 14 ( 163 50 )

Net income (loss) 199 360 28 ( 139 )

Less: Net income attributable to non-controlling interests 28 16 1 77 2 93 3

Net income (loss) attributable to Avis Budget Group, Inc. $ 35 183 $ 4 359 $ ( 248 65 ) $ ( 501 142 )

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Basic $ 1.00 $ 0.10 $ ( 7.01 ) $ ( 14.24 )

Diluted $ 0.98 $ 0.10 $ ( 7.01 ) $ ( 14.24 )

Basic $ 5.19 $ 10.22 $ ( 1.83 ) $ ( 4.02 )

Diluted $ 5.15 $ 10.11 $ ( 1.83 ) $ ( 4.02 )

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Receivables, net 936 878

Other current assets 1,014 696

Cash and cash equivalents $ 558 561 $ 519

Receivables, net 908 878

Other current assets 926 696

Total current assets 2,508 2,395 2,093

Property and equipment, net 756 763 748

Operating lease right-of-use assets 3,197 3,273 3,239

Deferred income taxes 2,298 2,506 2,105

Goodwill 1,115 1,111 1,129

Other intangibles, net 614 605 589

Other non-current assets 375 373 403

Total assets exclusive of assets under vehicle programs 10,863 11,026 10,306

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Vehicles, net 19,589 18,720

Total assets $ 32,328 $ 31,257

Vehicles, net 18,325 18,720

Receivables from vehicle manufacturers and other 281 650 540

Investment in Avis Budget Rental Car Funding (AESOP) LLC—related party 1,469 1,428 1,597

Total assets $ 31,512 $ 31,257

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Accounts payable and other current liabilities $ 3,074 3,068 $ 2,865

Short-term debt and current portion of long-term debt 23 371 24

Total current liabilities 3,097 3,439 2,889

Long-term debt 5,999 5,640 6,049

Long-term operating lease liabilities 2,632 2,677 2,614

Other non-current liabilities 472 484 495

Total liabilities exclusive of liabilities under vehicle programs 12,200 12,240 12,047

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Debt due to Avis Budget Rental Car Funding (AESOP) LLC—related party 14,436 13,712 14,396

Deferred income taxes 2,736 3,032 2,677

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Redeemable non-controlling interests 147 162 74

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Retained earnings 891 1,139

Additional paid-in capital 6,612 6,614 6,622

Retained earnings 1,074 1,139

Accumulated other comprehensive loss ( 149 157 ) ( 138 )

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Non-controlling interests 14 15 13

Total stockholders' equity ( 3,374 3,195 ) ( 3,116 )

Total liabilities, redeemable non-controlling interests and stockholders' equity $ 32,328 31,512 $ 31,257

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Net loss $ ( 171 ) $ ( 499 )

Vehicle depreciation 1,273 1,350

Net income (loss) $ 28 $ ( 139 )

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Vehicle depreciation 1,939 2,025

Amortization of right-of-use assets 583 533 858 810

(Gain) loss on sale of vehicles, net ( 78 106 ) 280 249

Vehicle related reserves 136 175 224 263

Non-vehicle related depreciation and amortization 118 116 187 174

Amortization of debt financing fees 25 27 37 39

Early extinguishment of debt costs 3 3 6

Stock-based compensation 7 12 11 16

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and 73 more changes in the filing

Note 1: Basis of Presentation 23 changes

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Cash and cash equivalents $ 558 561 $ 541 564

Total cash and cash equivalents, program and restricted cash $ 687 647 $ 603 639 (a) Included within other current assets.

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As specified in the respective limited liability company agreements, the Class A members' interests are redeemable based upon events that are not solely within our control. As such, the non-controlling interests were classified as redeemable non-controlling interests of $ 147 162 million and $ 74 million and presented outside of permanent equity on the Condensed Consolidated Balance Sheets as of June September 30, 2026 and December 31, 2025 , respectively. See Note 14 – Stockholders' Equity for the components of redeemable non-controlling interests.

Investments. As of June September 30, 2026 and December 31, 2025, we had investments with a carrying value o f $ 125 million and $ 130 million, respectively, recorded within other non-current assets on the Condensed Consolidated Balance Sheets. Aggregate realized gains and losses on equity method investments are recorded within operating expenses on the Condensed Consolidated Statements of Comprehensive Income. For the three months ended June September 30, 2026 and 2025, we recorded net gains from our equity method investments of $ 4 7 million and $ 3 9 million, respectively. For the six nine months ended June September 30, 2026 and 2025, we recorded net gains from our equity method investments of $ 5 12 million and $ 14 million, respectively. In each period. connection with our equity method investment in January 2026, our Greece licensee, we received an dividends totaling approximately $ 8 14 million dividend, and in December 2025, we January and September 2026, and purchased additional shares for $ 1 million relating to our equity method investment in our Greece licensee. December 2025. See Note 15 – Related Party Transactions for our equity method investment in our former subsidiary, AMV.

Revenues. Revenues are recognized under Leases (Topic 842) with the exception of royalty fee revenue derived from our licensees and revenue related to our customer loyalty program, which were $ 52 66 million and $ 50 61 million during the three months ended June September 30, 2026 and 2025, respectively, and $ 98 164 million and $ 95 156 million during the six nine months ended June September 30, 2026 and 2025, respectively.

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June 30, Six Months Ended

Americas $ 2,288 $ 2,332 $ 4,250 $ 4,239

Europe, Middle East and Africa 551 564 926 925

Asia and Australasia 159 143 352 305

Total revenues $ 2,998 $ 3,039 $ 5,528 $ 5,469

September 30, Nine Months Ended

Americas $ 2,552 $ 2,621 $ 6,802 $ 6,860

Europe, Middle East and Africa 712 742 1,638 1,667

Asia and Australasia 172 156 524 461

Total revenues $ 3,436 $ 3,519 $ 8,964 $ 8,988

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June 30, Six Months Ended

Avis $ 1,715 $ 1,718 $ 3,143 $ 3,090

Budget 1,136 1,133 2,088 2,018

Total revenues $ 2,998 $ 3,039 $ 5,528 $ 5,469

September 30, Nine Months Ended

Avis $ 1,958 $ 1,999 $ 5,101 $ 5,089

Budget 1,320 1,328 3,408 3,346

Total revenues $ 3,436 $ 3,519 $ 8,964 $ 8,988

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Note 2: Leases 31 changes

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June 30, Six Months Ended

Americas $ 2,265 $ 2,308 $ 4,206 $ 4,193

Europe, Middle East and Africa 527 543 882 885

Asia and Australasia 154 138 342 296

Total lease revenues $ 2,946 $ 2,989 $ 5,430 $ 5,374

September 30, Nine Months Ended

Americas $ 2,524 $ 2,597 $ 6,730 $ 6,790

Europe, Middle East and Africa 679 710 1,561 1,595

Asia and Australasia 167 151 509 447

Total lease revenues $ 3,370 $ 3,458 $ 8,800 $ 8,832

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June 30, Six Months Ended

Avis $ 1,682 $ 1,687 $ 3,082 $ 3,032

Budget 1,123 1,120 2,063 1,994

Total lease revenues $ 2,946 $ 2,989 $ 5,430 $ 5,374

September 30, Nine Months Ended

Avis $ 1,917 $ 1,961 $ 4,999 $ 4,993

Budget 1,304 1,312 3,367 3,306

Total lease revenues $ 3,370 $ 3,458 $ 8,800 $ 8,832

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June 30, Six Months Ended

Operating lease expense $ 245 $ 237 $ 492 $ 469

Variable lease expense 96 89 165 148

September 30, Nine Months Ended

Operating lease expense $ 246 $ 241 $ 738 $ 710

Variable lease expense 120 128 285 276

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June September 30, December 31,

Operating lease right-of-use assets $ 3,197 3,273 $ 3,239

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Long-term operating lease liabilities 2,632 2,677 2,614

Operating lease liabilities $ 3,253 3,331 $ 3,294

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Weighted average discount rate 5.45 5.37 % 5.35 %

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Property operating leases $ 531 773 $ 474 718

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Property operating leases $ 497 820 $ 553 825

Note 3: Restructuring and Other Related Charges 7 changes

In 2024, we initiated a global restructuring plan to right size our operations ("Global Rightsizing"). The costs associated with this initiative are primarily related to the operational scaling of processes, locations, and lines of business. We expect further restructuring expense of approximately $ 9 3 million related to this initiative to be incurred this year.

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Balance as of June 30, 2026 $ 14 $ 3 $ 2 $ 19

Balance as of September 30, 2026 $ 11 $ 2 $ — $ 13

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Balance as of June 30, 2026 $ 1 $ 18 $ 19

Balance as of September 30, 2026 $ — $ 13 $ 13

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In February 2025, we announced that Joseph A. Ferraro, President and Chief Executive Officer, would transition to a Board Advisor role effective June 30, 2025. In connection with Mr. Ferraro's departure, for the three months ended June September 30, 2026 and 2025, we recorded other related charges of $ 1 million and $ 8 3 million. respectively. For the six nine months ended June September 30, 2026 and 2025, we recorded other related charges of $ 1 million and $ 8 11 million, respectively. We do not expect further expenses to be incurred this year.

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During the first quarter of 2026, our Americas segment offered a voluntary termination program to certain employees in field operations and general and administrative functions for a limited time. These employees, if qualified, elected resignation from employment in return for enhanced severance benefits to be settled in cash. In connection with the LVOP, we recorded minimal other related charges for the three months ended June September 30, 2026 and $ 7 million for the six nine months ended June September 30, 2026. As of June September 30, 2026, approximately 200 employees elected to participate in the plan and have been terminated.

Note 4: Earnings Per Share 6 changes

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Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

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Basic $ 1.00 $ 0.10 $ ( 7.01 ) $ ( 14.24 )

Basic $ 5.19 $ 10.22 $ ( 1.83 ) $ ( 4.02 )

(a) For the three months ended June September 30, 2026 and 2025, 0.1 million an immaterial amount of non-vested stock awards have an anti-dilutive effect and therefore have been excluded from the computation of diluted weighted average shares outstanding, respectively.

(b) For the six nine months ended June September 30, 2026 and 2025, our number of diluted weighted average shares outstanding excludes the effect of non-vested stock as the effect would have been anti-dilutive. This occurs when a net loss is reported and the effect of using dilutive shares would be anti-dilutive. For the six nine months ended June September 30, 2026 and 2025, 0.6 0.3 million and 0.4 0.2 million non-vested stock awards have an anti-dilutive effect and therefore have been excluded from the computation of diluted weighted average shares outstanding, respectively.

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Note 5: Other Current Assets 4 changes

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June September 30, December 31,

Sales and use taxes $ 466 370 $ 246

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Other current assets $ 1,014 $ 696

Other current assets $ 926 $ 696

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Note 6: Acquisitions 1 change

In February 2026, we completed the acquisition of a licensee in North America for approximately $ 46 million, plus approximately $ 1 million in acquired fleet, with approximately $ 16 6 million remaining to be paid through March 2027. This investment is in-line with our strategy to re-acquire licensees when advantageous to expand our footprint of Company-operated locations. In connection with this acquisition, approximately $ 43 million was recorded to other intangibles related to license agreements, which are being amortized over a weighted average useful life of approximately five years . The fair value of the assets acquired and liabilities assumed has not yet been finalized and is therefore subject to change.

Note 7: Intangible Assets 13 changes

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As of June September 30, 2026 As of December 31, 2025

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License agreements $ 335 $ 250 $ 85 $ 296 $ 243 $ 53

Customer relationships 252 240 12 257 240 17

Total $ 642 $ 541 $ 101 $ 609 $ 534 $ 75

License agreements $ 334 $ 255 $ 79 $ 296 $ 243 $ 53

Customer relationships 251 241 10 257 240 17

Other 55 51 54 50 4 56 51 5

Total $ 639 $ 546 $ 93 $ 609 $ 534 $ 75

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Trademarks $ 513 $ 514

Goodwill $ 1,115 1,111 $ 1,129

Trademarks $ 512 $ 514

For the three months ended June September 30, 2026 and 2025, amortization expense related to amortizable intangible assets was approximat el y $ 8 million and $ 5 6 million, respectively. For the six nine months ended June September 30, 2026 and 2025, amortization expense related to amortizable intangible assets was approximat el y $ 15 23 million and $ 11 17 million, respectively.

Based on our amortizable intangible assets as of June September 30, 2026, we expect amortization expense of approximately $ 15 7 million for the remainder of 2026, $ 24 million for 2027, $ 19 million for 2028, $ 16 million for 2029, $ 16 million for 2030 and $ 7 million for 2031, excluding effects of currency exchange rates.

Note 8: Vehicle Rental Activities 13 changes

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June September 30, December 31,

Less: Accumulated depreciation ( 2,846 3,012 ) ( 2,859 )

Vehicles held for sale 207 418 432

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Vehicles, net $ 19,589 $ 18,720

Vehicles, net $ 18,325 $ 18,720

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June 30, Six Months Ended

Depreciation expense $ 623 $ 657 $ 1,273 $ 1,350

Lease charges 28 33 52 61

September 30, Nine Months Ended

Depreciation expense $ 666 $ 675 $ 1,939 $ 2,025

Lease charges 30 34 82 95

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Vehicle depreciation and lease charges, net $ 583 668 $ 636 678 $ 1,247 1,915 $ 1,691 2,369 (a) For the six nine months ended June September 30, 2025, includes other fleet charges of $ 390 million related to the disposal of certain fleet in our Americas reportable segment.

As of June September 30, 2026 and 2025, we had payables related to vehicle purchases included in liabilities under vehicle programs - other of $ 664 253 million and $ 630 216 million, respectively, and receivables related to vehicle sales included in assets under vehicle programs - receivables from vehicle manufacturers and other of $ 190 553 million and $ 137 486 million, respectively.

Note 9: Income Taxes 4 changes

Our effective tax rate for the six nine months ended June September 30, 2026 was a benefit provision of 36.0 33.3 %. Such rate differed from the Federal Statutory rate of 21.0% primarily due to foreign income inclusions and foreign taxes associated with our International operations, as well as state taxes.

Our effective tax rate for the six nine months ended June September 30, 2025 was a benefit of 24.6 26.5 %. Such rate differed from the Federal Statutory rate of 21.0% primarily due to foreign taxes on our International operations and state taxes.

In July 2025, the One Big Beautiful Bill Act ("OBBBA") was enacted, making permanent key provisions of the Tax Cuts and Jobs Act, including full expensing on qualified property, and modifications to the business interest expense limitation, as well as introducing phased-in modifications to certain foreign income inclusion provisions effective in 2026 and future periods. As a result of the enactment of OBBBA, our deferred tax balances as of June September 30, 2026 reflect the new law. In addition, these phased-in provisions impacted our income tax expense and effective tax rate for the three and six nine months ended June September 30, 2026; however, the overall impact on our condensed consolidated results of operations was not significant.

We continue to monitor the implementation of the Organisation for Economic Cooperation and Development ("OECD") Pillar Two global minimum tax framework, including recent administrative guidance; however, it did not have a material impact on our condensed consolidated financial statements for the three and six nine months ended June September 30, 2026.

Note 10: Accounts Payable and Other Current Liabilities 12 changes

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Accounts payable 573 453

Accrued interest 136 149

June September 30, December 31,

Short-term operating lease liabilities $ 621 654 $ 680

Accounts payable 539 453

Accrued sales and use taxes 419 495 391

Accrued advertising and marketing 259 264 246

Public liability and property damage insurance liabilities – current 252 274 284

Accrued interest 129 149

Deferred lease revenues - current 278 176 155

Accrued payroll and related 171 188 165

Accounts payable and other current liabilities $ 3,074 3,068 $ 2,865

Note 11: Long-term Corporate Debt and Borrowing Arrangements 10 changes

Long-term corporate debt and other borrowing arrangements consisted of:

Maturity June September 30, December 31,

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February 2029 685 705

February 2029 680 705

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July 2032 1,127 1,124 1,131

Deferred financing fees ( 59 55 ) ( 56 )

Less: Short-term debt and current portion of long-term debt 23 371 24 (a) The floating rate term loan is part of our senior revolving credit facilities, which is secured by pledges of capital stock of certain of our subsidiaries, and liens on substantially all of our intellectual property and certain other real and personal property. As of June September 30, 2026, the floating rate term loan due 2032 bears interest at one-month Secured Overnight Financing Rate (" SOFR") plus 2.50 %, for an aggregate rate of 6.14 6.40 %. We have entered into a swap to hedge $ 750 million of interest rate exposure related to the floating rate term loan at an aggregate rate of 4.01 %.

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As of June September 30, 2026, the committed corporate credit facilities available to us and/or our subsidiaries were as follows:

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As of June September 30, 2026, we have other uncommitted standby letter of credit facilities ("SBLC facilities") with an additional letter of credit capacity of up to $ 464 479 million. As of June September 30, 2026, letters of credit totaling $ 464 455 million have been issued on our SBLC facilities, which results in no a remaining available capacity . of $ 24 million.

The agreements governing our indebtedness contain restrictive covenants, including restrictions on dividends paid to us by certain of our subsidiaries, the incurrence of additional indebtedness and/or liens by us and certain of our subsidiaries, acquisitions, mergers, liquidations, and sale and leaseback transactions. Our senior credit facilities also contain a maximum leverage ratio requirement. As of June September 30, 2026, we were in compliance with the financial covenants governing our indebtedness.

Note 12: Debt Under Vehicle Programs and Borrowing Arrangements 34 changes

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June September 30, December 31,

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International - Finance leases 155 146 130

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Total $ 19,850 $ 19,188

Total $ 18,920 $ 19,188

(a) Includes approximately $ 780 740 million and $ 826 million of Class R notes as of June September 30, 2026 and December 31, 2025, respectively, which are held by us.

(b) Includes our Repurchase Facilities and $ 694 616 million and $ 965 million associated with the Interpace Ventures transaction as of June September 30, 2026 and December 31, 2025, respectively . See Note 1 – Basis of Presentation.

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(d) Deferred financing fees related to Debt due to Avis Budget Rental Car Funding as of June September 30, 2026 and December 31, 2025 were $ 53 million and $ 51 million, respectively.

The following table provi des a summary of debt issued by Avis Budget Rental Car Funding during the six nine months ended June September 30, 2026:

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September 2026 March 2032 6.02 % 650

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The following table provides a summary of the Repurchase Facilities as of June September 30, 2026 :

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August 2026 4.74 % 3 months $ 39

September 2026 4.84 % 3 months 25

September November 2026 4.84 % 3 months $ 39

December 2026 5.17 % 3 months 25

December 2026 5.17 % 3 months 39

September December 2026 4.76 4.90 % 3 months 24

September December 2026 4.76 4.90 % 3 months 42

September December 2026 5.70 5.74 % 3 months 86

As of June September 30, 2026, we had $ 326 million of securities pledged as collateral f or the Repurchase Facilities, included within investment in Avis Budget Rental Car Funding (AESOP) LLC—related party on our Condensed Consolidated Balance Sheets.

The following table provides the contractual maturities of our debt under vehicle programs, including related party debt due to Avis Budget Rental Car Funding, as of June September 30, 2026:

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(b) Includes $ 0.8 0.7 billion of bank and bank-sponsored facilities. These short-term borrowings have a weighted average interest rate of 4.81 5.09 % as of June September 30, 2026.

(c) Includes $ 2.4 2 billion of bank and bank-sponsored facilities.

(d) Includes $ 2.8 2.5 billion of bank and bank-sponsored facilities.

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Americas - Debt borrowings 2,349 2,232 117

International - Finance leases 155 155 —

Total $ 21,798 $ 19,931 $ 1,867

The following table presents available funding under our debt arrangements related to our vehicle programs, including related party debt due to Avis Budget Rental Car Funding, as of June September 30, 2026:

Americas - Debt due to Avis Budget Rental Car Funding $ 15,831 15,675 $ 14,489 13,765 $ 1,342 1,910

Americas - Debt borrowings 2,215 2,010 205

International - Debt borrowings 3,463 3,055 408 3,078 385

International - Finance leases 185 146 39

Total $ 21,538 $ 18,999 $ 2,539

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(b) The outstanding debt is collateralized by vehicles and related assets of $ 14.6 13.8 billion for Americas - Debt due to Avis Budget Rental Car Funding; $ 2.5 billion for Americas - Debt borrowings; $ 3.7 3.8 billion for International - Debt borrowings; and $ 0.2 billion for International - Finance leases.

The agreements under our vehicle-backed funding programs contain restrictive covenants, including restrictions on dividends paid to us by certain of our subsidiaries and restrictions on indebtedness, mergers, liens, liquidations and sale and leaseback transactions, and in some cases also require compliance with certain financial requirements. As of June September 30, 2026, we are not aware of any instances of non-compliance with any of the financial or restrictive covenants contained in the debt agreements under our vehicle-backed funding programs.

Note 13: Commitments and Contingencies 4 changes

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On June 19, 2026, we entered into a Settlement and Release Agreement (the "Settlement Agreement") with Pentwater Capital Management LP and certain affiliated persons ("Pentwater") to settle our pending lawsuit against Pentwater for the recovery of short-swing profits under Section 16(b) of the Securities Exchange Act of 1934. (the "Section 16(b) Action"). Under the Settlement Agreement, the settlement amount is $ 650 million in cash (the "Settlement Amount"). The Settlement Agreement and payment to the Company of the Settlement Amount is subject to court approval, including the issuance of an order approving the terms of the settlement agreement and making a finding that, among other things, the Company has diligently pursued the claims raised in was approved by the Section 16(b) Action court and, that on October 5, 2026, we received the Settlement Amount. is fair, reasonable and adequate, and other customary conditions. As of June September 30, 2026, no amount related to the Settlement Amount has been recognized in the Company's Condensed Consolidated Financial Statements. as receipt of We will recognize the Settlement Amount remains contingent upon satisfaction of in the conditions described above, including court approval. fourth quarter of 2026.

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Litigation is inherently unpredictable and, although we believe that our accruals are adequate and/or that we have valid defenses in these matters, unfavorable resolutions could occur. We estimate that the potential exposure resulting from adverse outcomes of current legal proceedings in which it is reasonably possible that a loss may be incurred could, in the aggregate, be up to approximately $ 40 million in excess of amounts accrued as of June September 30, 2026. We do not believe that the impact should result in a material liability to us in relation to our consolidated financial condition, results of operations or cash flows.

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We maintain agreements with vehicle manufacturers under which we have agreed to purchase approximately $ 2.6 5.6 billion of vehicles from manufacturers over the next 12 months, a $ 4.2 1.2 billion decrease compared to December 31, 2025, financed primarily through the issuance of vehicle-backed debt and cash received upon the disposition of vehicles. Certain of these commitments are subject to the vehicle manufacturers satisfying their obligations under their respective repurchase and guaranteed depreciation agreements.

Concentrations of credit risk as of June September 30, 2026 include risks related to our repurchase and guaranteed depreciation agreements with domestic and foreign automobile manufacturers, and primarily with respect to receivables for program cars that have been disposed of, but for which we have not yet received payment from the manufacturer s.

Note 14: Stockholders' Equity 50 changes

Our Board of Directors has authorized the repurchase of up to approximately $ 8.1 billion of our common stock under a plan originally approved in 2013 and subsequently expanded, most recently in February 2023 (the "Stock Repurchase Program"). During the six nine months ended June September 30, 2026 and 2025, we did not repurchase shares of common stock under the Stock Repurchase Program. As of June September 30, 2026, approximately $ 757 million of authorization remained available to repurchase common stock under the Stock Repurchase Program.

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June 30, Six Months Ended

Net income (loss) $ 63 $ 5 $ ( 171 ) $ ( 499 )

September 30, Nine Months Ended

Net income (loss) $ 199 $ 360 $ 28 $ ( 139 )

Less: Net income attributable to non-controlling interests 28 16 1 77 2 93 3

Net income (loss) attributable to Avis Budget Group, Inc. 35 4 183 359 ( 248 65 ) ( 501 142 )

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Currency translation adjustments, net of tax of $( 4 3 ), $( 30 1 ), $( 10 13 ) and $ 44 43 , respectively (a)

Net unrealized gain (loss) on cash flow hedges, net of tax of $ 0 1 , $ 1 , $ 1 2 and $ 4 5 , respectively ( 2 ) ( 5 3 ) ( 3 5 ) ( 11 14 )

Minimum pension liability adjustment, net of tax of $ 1 0 , $( 0 1 ), $ 1 and $( 0 1 ), respectively ( 13 8 ) 67 ( 11 18 ) 75 ( 19 ) 57

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Balance as of April July 1, 2026

Other comprehensive income (loss) before reclassifications ( 13 7 ) 1 1 — 11 ( 6 )

Gross (gains) losses reclassified ( 4 ) 2 1 ( 2 3 )

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Balance as of June 30, 2026 $ ( 55 ) $ 11 $ ( 105 ) $ ( 149 )

Net current-period other comprehensive income (loss) ( 13 7 ) ( 2 ) 2 1 ( 13 8 )

Balance as of September 30, 2026 $ ( 62 ) $ 9 $ ( 104 ) $ ( 157 )

Balance as of April July 1, 2025

Other comprehensive income (loss) before reclassifications 71 ( 16 ) 1 — ( 70 15 )

Gross (gains) losses reclassified ( 6 5 ) 2 1 ( 4 )

Tax on (gains) losses reclassified 2 ( 1 — 1

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Balance as of June 30, 2025 $ ( 41 ) $ 20 $ ( 114 ) $ ( 135 )

Net current-period other comprehensive income (loss) 71 ( 5 16 ) ( 3 ) 1 67 ( 18 )

Balance as of September 30, 2025 $ ( 57 ) $ 17 $ ( 113 ) $ ( 153 )

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Other comprehensive income (loss) before reclassifications ( 7 ) 3 ( 3 ) ( 7 )

Tax on (gains) losses reclassified 2 ( 1 ) 1

(Gains) losses reclassified from accumulated other comprehensive income (loss), net of tax — ( 6 ) 2 ( 4 )

Net current-period other comprehensive income (loss) ( 7 ) ( 3 ) ( 1 ) ( 11 )

Balance as of June 30, 2026 $ ( 55 ) $ 11 $ ( 105 ) $ ( 149 )

Balance as of January 1, 2025 $ ( 125 ) $ 31 $ ( 116 ) $ ( 210 )

Gross (gains) losses reclassified ( 11 ) 3 ( 8 )

Other comprehensive income (loss) before reclassifications 84 ( 14 ) 4 ( 3 ) ( 81 13 )

Gross (gains) losses reclassified ( 8 12 ) 3 4 ( 5 8 )

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Balance as of June 30, 2025 $ ( 41 ) $ 20 $ ( 114 ) $ ( 135 )

(Gains) losses reclassified from accumulated other comprehensive income (loss), net of tax — ( 8 9 ) 2 3 ( 6 )

Net current-period other comprehensive income (loss) 84 ( 11 14 ) 2 75 ( 5 ) — ( 19 )

Balance as of September 30, 2026 $ ( 62 ) $ 9 $ ( 104 ) $ ( 157 )

Balance as of January 1, 2025 $ ( 125 ) $ 31 $ ( 116 ) $ ( 210 )

Other comprehensive income (loss) before reclassifications 68 ( 2 ) — 66

Gross (gains) losses reclassified ( 16 ) 4 ( 12 )

Tax on (gains) losses reclassified 4 ( 1 ) 3

(Gains) losses reclassified from accumulated other comprehensive income (loss), net of tax — ( 12 ) 3 ( 9 )

Net current-period other comprehensive income (loss) 68 ( 14 ) 3 57

Balance as of September 30, 2025 $ ( 57 ) $ 17 $ ( 113 ) $ ( 153 )

All components of accumulated other comprehensive income (loss) are net of tax, except currency translation adjustments, which exclude income taxes related to indefinite investments in foreign subsidiaries and include $ 53 61 million gain, net of tax, as of June September 30, 2026 related to our hedge of our investment in euro-denominated foreign operations (See Note 17 – Financial Instruments).

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Balance as of April 1 $ 120

Balance as of July 1 $ 147

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Balance as of June 30 $ 147

Balance as of September 30 $ 162

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Balance as of June 30 $ 147

Balance as of September 30 $ 162

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Note 15: Related Party Transactions 7 changes

1 unchanged paragraph

Avis Mobility Ventures LLC ("AMV") is our former subsidiary. We ceased to have a controlling interest in AMV in 2022, and as a result we deconsolidated AMV from our financial statements. Our proportional share of AMV's income or loss is included within other (income) expense, net in our Condensed Consolidated Statements of Comprehensive Income. In November 2025 and August 2026, we made a capital contribution contributions of approximately $ 9 million and $ 10 million to AMV, respectively, maintaining our ownership interest. As of June September 30, 2026, we own approximately 35 % of AMV. We continue to provide vehicles, related fleet services, and certain administrative services to AMV to support their operations. The following tables provide amounts reported within our financial statements related to our equity method investment in AMV and these services.

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Other (income) expense, net $ 1 $ 5 $ 7 $ 11

(Income) expense for services to AMV, net $ 6 $ 1 $ 9 $ 9

(Income) expense for services to AMV, net $ ( 1 ) $ 4 $ 3 $ 8 (Income) loss on equity method investment in AMV, net 2 3 1 7 4 3

Other (income) expense, net $ 9 $ 2 $ 16 $ 13

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June September 30, December 31,

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SRS Mobility Ventures, LLC is an affiliate of our largest shareholder, SRS Investment Management, LLC. SRS Mobility Ventures, LLC obtained a controlling interest in AMV in 2022. In November 2025 and August 2026, SRS Mobility Ventures, LLC made a capital contribution contributions of approximately $ 16 million and $ 20 million to AMV, respectively. As of June September 30, 2026, they own approximately 65 % of AMV.

Note 16: Stock-Based Compensation 14 changes

During the three months ended September 30, 2026 and 2025, we recorded stock-based compensation expense of $ 6 million ( $ 4 million ( net of tax) and $ 6 million ( $ 5 3 million , net of tax), during the three months ended June 30, 2026 and 2025, respectively in each period . We recorded stock-based compensation expense of $ 7 11 million ($ 5 8 million, net of tax) and $ 12 16 million ( $ 9 12 million , net of tax) during the six nine months ended June September 30, 2026 and 2025, respectively .

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Six Months Ended June 30, 2026

In March 2026, the Company granted market-based RSUs that vest based on the level of total shareholder return. The grant date fair value of the market-based RSUs incorporates the total shareholder return metric, which is estimated using a Monte Carlo simulation model to estimate the Company's ranking relative to an applicable stock index. The weighted average assumptions used in the Monte Carlo simulation model to calculate the fair value of the Company's stock unit awards are outlined in the table below.

Nine Months Ended September 30, 2026

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Forfeited ( 27 ) 84.81

Forfeited ( 47 ) 84.59

Outstanding and expected to vest as of June September 30, 2026 (c)

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Forfeited ( 219 ) 112.51

Forfeited ( 263 ) 108.32

Outstanding as of June September 30, 2026

Outstanding and expected to vest as of June September 30, 2026 (c)

(a) Reflects the maximum number of stock units assuming achievement of all time-, performance- and market-vesting criteria and does not include those for non-employee directors. The weighted-average fair value of time- and performance-based RSUs granted during the six nine months ended June September 30, 2025 w as $ 62.67 65.23 and $ 62.64 64.10 , respectively.

(b) The total fair value of time-based RSUs vested during the six nine months ended June September 30, 2026 was $ 15 18 million and the total fair value of time- and performance-based RSUs vested during the six nine months ended June September 30, 2025 was $ 23 24 million.

(c) Aggregate unrecognized compensation expense related to time-, performance- and market-based RSUs amoun ted to $ 40 33 million a nd will be recognized over a weighted average vesting period of 1.4 1.3 years.

Note 17: Financial Instruments 15 changes

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Interest Rate Risk. We use various hedging strategies including interest rate swaps and interest rate caps to create what we deem an appropriate mix of fixed and floating rate assets and liabilities. We use interest rate swaps and interest rate caps to manage the risk related to our floating rate corporate debt and our floating rate vehicle-backed debt. We record the changes in the fair value of our cash flow hedges to other comprehensive income (loss), net of tax, and subsequently reclassify these amounts into earnings in the period during which the hedged transaction affects earnings and is presented in the same income statement line item as the earnings effect of the hedged item. We record the gains or losses related to freestanding derivatives, which are not designated as a hedge for accounting purposes, currently in earnings and are presented in the same line of the income statement expected for the hedged item. We estimate that approximately $ 14 10 million of gain curr ently recorded in accumulated other comprehensive income (loss) will be recognized in earnings over the next 12 months.

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Foreign exchange contracts $ 1,984 2,001

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(a) Repres ents $ 6.6 billion of interest rate caps sold and approximately $ 6.7 6.6 billion of interest rate caps purchased. These amounts exclude $ 0.2 billion of interest rate caps purchased by our Avis Budget Rental Car Funding subsidiary as it is not consolidated by us .

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As of June September 30, 2026 As of December 31, 2025

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Total $ 24 $ 29 $ 22 $ 5

Total $ 36 $ 39 $ 22 $ 5

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June 30, Six Months Ended

September 30, Nine Months Ended

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Total $ ( 3 ) $ ( 63 ) $ 17 $ ( 113 )

Total $ — $ ( 1 ) $ 17 $ ( 114 )

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As of June September 30, 2026 As of December 31, 2025

Short-term debt and current portion of long-term debt $ 23 371 $ 23 371 $ 24 $ 24

Long-term debt 5,999 6,115 5,640 5,627 6,049 6,214

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Vehicle-backed debt due to Avis Budget Rental Car Funding $ 14,436 13,712 $ 14,568 13,673 $ 14,396 $ 14,634

Vehicle-backed debt 5,405 5,439 5,184 5,210 4,791 4,822

2 unchanged paragraphs

Note 18: Segment Information 51 changes

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Three Months Ended June September 30,

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Revenues $ 2,288 $ 710 $ 2,998 $ 2,332 $ 707 $ 3,039

Revenues $ 2,552 $ 884 $ 3,436 $ 2,621 $ 898 $ 3,519

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Selling, general and administrative 241 121 264 110

Vehicle interest, net 197 35 195 34

Reportable segment Adjusted EBITDA $ 237 $ 73 $ 310 $ 220 $ 82 $ 302

Vehicle depreciation and lease charges, net 443 140 484 152 506 162 508 170

Selling, general and administrative 246 132 269 128

Vehicle interest, net 205 42 212 36

Reportable segment Adjusted EBITDA $ 365 $ 180 $ 545 $ 398 $ 190 $ 588

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Reportable segment Adjusted EBITDA $ 310 545 $ 302 588

Non-vehicle related depreciation and amortization 58 60 61 57

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Restructuring and other related charges 17 51 5 9

Transaction-related costs, net 1 —

Other (income) expense, net 1 5 9 2

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Income before income taxes $ 73 309 $ 15 473

1 unchanged paragraph

Six Months Ended June 30,

(b) Legal matters, net for the three months ended September 30, 2026. Legal matters, net, cloud computing costs and legal matters, severe weather-related damages, net for the three months ended June September 30, 2025.

(c) Consists of unallocated corporate expenses which are not attributable to a particular reportable segment. For the three months ended June September 30, 2026 and 2025, includes $ 106 million and $ 105 million of interest expense, in each period. respectively.

Nine Months Ended September 30,

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Revenues $ 4,250 $ 1,278 $ 5,528 $ 4,239 $ 1,230 $ 5,469

Revenues $ 6,802 $ 2,162 $ 8,964 $ 6,860 $ 2,128 $ 8,988

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Selling, general and administrative 464 222 464 197

Vehicle interest, net 394 67 372 67

Reportable segment Adjusted EBITDA $ 157 $ 60 $ 217 $ 153 $ 79 $ 232

Selling, general and administrative 710 354 733 325

Vehicle interest, net 599 109 584 103

Reportable segment Adjusted EBITDA $ 522 $ 240 $ 762 $ 551 $ 269 $ 820

Reconciliation of reportable segment Adjusted EBITDA to income (loss) before income taxes:

Reportable segment Adjusted EBITDA $ 217 762 $ 232 820

Non-vehicle related depreciation and amortization 116 115 177 172

1 unchanged paragraph

Interest expense 7 6

Interest expense 9 10

1 unchanged paragraph

Restructuring and other related charges 52 73 57 82

Transaction-related costs, net 4 5 —

Other (income) expense, net 7 11 16 13

2 unchanged paragraphs

Income (loss) before income taxes $ ( 267 ) 42 $ ( 662 189 )

1 unchanged paragraph

(c) Cloud computing costs for the six months ended June 30, 2026. Cloud computing cost and legal matters, net for the six months ended June 30, 2025.

(b) For the six nine months ended June September 30, 2025, excludes other fleet charges related to the disposal of certain fleet within our Americas reportable segment.

(c) Legal matters, net and cloud computing costs for the nine months ended September 30, 2026. Legal matters, net, cloud computing costs and severe weather-related damages, net for the nine months ended September 30, 2025.

(d) Consists of unallocated corporate expenses which are not attributable to a particular reportable segment. For the six nine months ended June September 30, 2026 and 2025, includes $ 210 316 million and $ 201 306 million of interest expense, respectively.

2 unchanged paragraphs

Six Months Ended June 30, 2026

Property and equipment additions $ 35 $ 20 $ 54 $ 109

Assets under vehicle programs 17,099 4,366 — 21,465

Net long-lived assets 1,491 784 210 2,485

Nine Months Ended September 30, 2026

Property and equipment additions $ 59 $ 28 $ 78 $ 165

As of September 30, 2026

Assets exclusive of assets under vehicle programs 7,340 3,187 336 10,863 7,653 3,045 328 11,026

Assets under vehicle programs 16,171 4,315 — 20,486

Net long-lived assets 1,498 775 206 2,479

7 unchanged paragraphs

MD&A 180 changes

1 unchanged paragraph

We operate three of the most globally recognized brands in mobility solutions, Avis, Budget and Zipcar together with several other brands well recognized in their respective markets. We are a leading vehicle rental operator in North America, Europe, Australasia and certain other regions we serve, with an average rental fleet of approximately 665,000 707,000 vehicles in second third quarter 2026. We also license the use of our trademarks to licensees in the areas in which we do not operate directly. We and our licensees operate our brands in approximately 180 countries throughout the world.

1 unchanged paragraph

Our strategy remains centered on driving sustainable growth through operational efficiency, analytics, customer experience and innovation. Additionally, during the fourth quarter of the fiscal year ended December 31, 2025, in conjunction with the Interpace Ventures transaction, we reviewed our fleet strategy, specific to certain United States EV rental car vehicles, and as a result shortened the useful life associated with such vehicles. We believe our strategies will continue to reinforce our competitive position, support long-term profitability, and deliver value to our stakeholders. During the three months ended June September 30, 2026, we generated revenues of $3.0 $3.4 billion , net income of $63 $199 million and Adjusted EBITDA of $286 $513 million . These results, compared to the prior year period, were primarily driven by lower higher per-unit fleet costs and increased revenue per day, decreased volume, partially offset by decreased volume. sustained revenue per day.

5 unchanged paragraphs

During the six months ended June 30, 2026:

During the nine months ended September 30, 2026:

• Our revenues totaled $5.5 $9.0 billion, an increase a decrease of $59 $24 million year-over-year, primarily due to decreased volume, partially offset by increased revenue per day. partially offset by decreased volume.

• Our net loss attributable to Avis Budget Group, Inc. was $248 $65 million, representing a decreased decrease in the loss of $253 $77 million year-over-ye ar, primarily due t o increased revenue per day and to decreased fleet charges.

• Our Adjusted EBITDA was $173 $686 million, representing a decrease of $11 $57 million year-over-year.

Three Months Ended June September 30, 2026 vs. Three Months Ended June September 30, 2025

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Three Months Ended June September 30,

1 unchanged paragraph

Revenues $ 2,998 $ 3,039 $ (41) (1 %)

Operating 1,526 1,526 — — %

Selling, general and administrative 385 396 (11) (3 %)

Vehicle interest, net 232 229 3 1 %

Revenues $ 3,436 $ 3,519 $ (83) (2 %)

Operating 1,621 1,513 108 7 %

Vehicle depreciation and lease charges, net 583 636 (53) (8 668 678 (10) (1 %)

Selling, general and administrative 398 422 (24) (6 %)

Vehicle interest, net 247 248 (1) — %

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and 162 more changes in the filing

Market risk 1 change

and 1 more change in the filing

Controls and procedures 2 changes

and 2 more changes in the filing

Risk factors 1 change

and 1 more change in the filing

Unregistered sales of stock 1 change

and 1 more change in the filing

Other information 1 change

and 1 more change in the filing

Exhibits 13 changes

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and 13 more changes in the filing