Hertz Global Holdings Inc (NASDAQ:HTZ) reported financial results for the first quarter after the market close on Monday. Here’s a rundown of the report.

• Q1 Revenue: $1.81 billion, versus estimates of $2 billion

• Q1 Adjusted Loss: $1.12, versus estimates of 97 cents

Total revenue declined 13% on a year-over-year basis, primarily driven by reduced fleet capacity, which was down 8% year-over-year. The company said its fleet rotation is delivering results, with vehicle depreciation down 45% year-over-year.

Hertz said it’s targeting less than $300 of depreciation per unit in the second quarter, with model year 2025 vehicles already achieving this target. The company noted that more than 70% of its core U.S. rental fleet is 12 months old or newer.

Hertz ended the quarter with $1.2 billion of corporate liquidity and said it remains on track to achieve positive adjusted corporate EBITDA by the third quarter of 2025.

“Given macro demand uncertainties, it is intentionally running a tighter fleet year-over-year while capitalizing on the strong residual value environment to accelerate the rotation of its remaining older vehicles,” the company said in the earnings release.

“Looking forward, the Company sees both macroeconomic uncertainty and opportunity. The Company has recently seen demand moderate for corporate, government and U.S. inbound segments while forward bookings for Hertz leisure are up year-over-year. The Company intends to remain prudent in its fleet management, entering the summer with a relatively tight fleet, and thereby leveraging rising residual values.”

Hertz executives will further discuss the quarter on a conference call with investors and analysts at 9 a.m. ET Tuesday morning.

HTZ Price Action: Hertz shares were down 3.60% after hours, trading at $6.69 at the time of publication Monday, per Benzinga Pro.

Hertz shares surged last month after Bill Ackman's Pershing Square Capital Management reported a sizable stake in the company. Despite Monday’s after-hours decline, the stock is still up approximately 89% year-to-date.

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