Avis Budget (CAR)
Market Price (6/20/2026): $188.32 | Market Cap: $6.6 BilSector: Industrials | Industry: Passenger Ground Transportation
Avis Budget (CAR)
Market Price (6/20/2026): $188.32Market Cap: $6.6 BilSector: IndustrialsIndustry: Passenger Ground Transportation
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 26%, CFO LTM is 3.1 Bil Megatrend and thematic driversMegatrends include Experience Economy & Premiumization, and E-commerce & Digital Retail. Themes include Travel & Leisure Tech, and Online Marketplaces. | Weak multi-year price returns3Y Excs Rtn is -72% Meaningful short interestShort Interest % of Basic SharesShort Interest % of Basic Shares = (Short Interest Quantity) / (Basic Shares Outstanding). A high fraction of short interest can indicate potential risk of a short squeeze. is 16% | Debt is significantNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is 408% Weak revenue growthRev Chg 3Y AvgRevenue Change % averaged over trailing 3 years is -3.0% Not cash flow generativeFCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is -100% Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -14% Key risksCAR key risks include [1] its significant debt levels and [2] a class-action lawsuit alleging misleading statements regarding a $2.3 billion impairment charge tied to fleet management. |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 26%, CFO LTM is 3.1 Bil |
| Megatrend and thematic driversMegatrends include Experience Economy & Premiumization, and E-commerce & Digital Retail. Themes include Travel & Leisure Tech, and Online Marketplaces. |
| Weak multi-year price returns3Y Excs Rtn is -72% |
| Meaningful short interestShort Interest % of Basic SharesShort Interest % of Basic Shares = (Short Interest Quantity) / (Basic Shares Outstanding). A high fraction of short interest can indicate potential risk of a short squeeze. is 16% |
| Debt is significantNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is 408% |
| Weak revenue growthRev Chg 3Y AvgRevenue Change % averaged over trailing 3 years is -3.0% |
| Not cash flow generativeFCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is -100% |
| Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -14% |
| Key risksCAR key risks include [1] its significant debt levels and [2] a class-action lawsuit alleging misleading statements regarding a $2.3 billion impairment charge tied to fleet management. |
Qualitative Assessment
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Avis Budget (CAR) stock has gained about 95% since 2/28/2026 because of the following key factors:
1. Significant Short Squeeze Event: Avis Budget Group experienced a substantial short squeeze, which contributed significantly to its stock appreciation. As of February 27, 2026, the company's short interest was 7,552,859 shares, representing 45.4% of its public float. By March 31, 2026, short interest reached 9,026,460 shares, or 54.1% of the float. This high level of short interest made the stock vulnerable to rapid price increases as short sellers were forced to buy shares to cover their positions. The "days to cover" metric dramatically decreased from 7.27 on March 31, 2026, to 0.82 by April 30, 2026, indicating extensive short covering during this period. This short covering activity fueled a sharp upward movement in the stock price.
2. Strong Operational Performance in Fiscal Q1 2026: Despite reporting a net loss for the fiscal first quarter ended March 31, 2026, Avis Budget Group demonstrated robust operational improvements that supported the stock's upward trend. The company's revenues for fiscal Q1 2026 reached $2.53 billion, marking a 4% increase year-over-year and exceeding analyst expectations. Key operational metrics showed strength, with revenue per day increasing 3% in both the Americas and International segments compared to fiscal Q1 2025. Additionally, vehicle utilization achieved a first-quarter record of 70% in both regions, a feat not seen in over fifteen years, and adjusted free cash flow improved by more than $570 million over fiscal Q1 2025, reaching $80 million. These operational strengths provided a fundamental basis for investor confidence, bolstering the stock beyond the short squeeze.
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Avis Budget (CAR) stock has gained about 95% since 2/28/2026 because of the following key factors:
1. Significant Short Squeeze Event: Avis Budget Group experienced a substantial short squeeze, which contributed significantly to its stock appreciation. As of February 27, 2026, the company's short interest was 7,552,859 shares, representing 45.4% of its public float. By March 31, 2026, short interest reached 9,026,460 shares, or 54.1% of the float. This high level of short interest made the stock vulnerable to rapid price increases as short sellers were forced to buy shares to cover their positions. The "days to cover" metric dramatically decreased from 7.27 on March 31, 2026, to 0.82 by April 30, 2026, indicating extensive short covering during this period. This short covering activity fueled a sharp upward movement in the stock price.
2. Strong Operational Performance in Fiscal Q1 2026: Despite reporting a net loss for the fiscal first quarter ended March 31, 2026, Avis Budget Group demonstrated robust operational improvements that supported the stock's upward trend. The company's revenues for fiscal Q1 2026 reached $2.53 billion, marking a 4% increase year-over-year and exceeding analyst expectations. Key operational metrics showed strength, with revenue per day increasing 3% in both the Americas and International segments compared to fiscal Q1 2025. Additionally, vehicle utilization achieved a first-quarter record of 70% in both regions, a feat not seen in over fifteen years, and adjusted free cash flow improved by more than $570 million over fiscal Q1 2025, reaching $80 million. These operational strengths provided a fundamental basis for investor confidence, bolstering the stock beyond the short squeeze.
3. Positive Shift in Analyst Sentiment and Institutional Ownership: Following the initial stock movements, there was a noticeable shift in analyst ratings, contributing to the stabilization and further gains. Several firms upgraded their outlook on Avis Budget Group. For example, Barclays upgraded the stock from "strong sell" to "hold" (or "Underweight" to "Equal-Weight") on June 8, 2026, and raised its price target to $160.00. This improving sentiment, coupled with an increase in institutional ownership—total shares owned by institutions rose by 11.94% in the three months leading up to May 2026—helped to solidify the stock's gains and suggested a growing belief among some investors and analysts in the company's future prospects.
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Stock Movement Drivers
Fundamental Drivers
The 93.4% change in CAR stock from 2/28/2026 to 6/19/2026 was primarily driven by a 86.7% change in the company's P/S Multiple.| (LTM values as of) | 2282026 | 6192026 | Change |
|---|---|---|---|
| Stock Price ($) | 97.41 | 188.43 | 93.4% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 11,414 | 11,858 | 3.9% |
| P/S Multiple | 0.3 | 0.6 | 86.7% |
| Shares Outstanding (Mil) | 35 | 35 | -0.3% |
| Cumulative Contribution | 93.4% |
Market Drivers
2/28/2026 to 6/19/2026| Return | Correlation | |
|---|---|---|
| CAR | 93.4% | |
| Market (SPY) | 9.2% | 4.3% |
| Sector (XLI) | 2.4% | 4.0% |
Fundamental Drivers
The 38.7% change in CAR stock from 11/30/2025 to 6/19/2026 was primarily driven by a 33.7% change in the company's P/S Multiple.| (LTM values as of) | 11302025 | 6192026 | Change |
|---|---|---|---|
| Stock Price ($) | 135.88 | 188.43 | 38.7% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 11,402 | 11,858 | 4.0% |
| P/S Multiple | 0.4 | 0.6 | 33.7% |
| Shares Outstanding (Mil) | 35 | 35 | -0.3% |
| Cumulative Contribution | 38.7% |
Market Drivers
11/30/2025 to 6/19/2026| Return | Correlation | |
|---|---|---|
| CAR | 38.7% | |
| Market (SPY) | 9.9% | 9.8% |
| Sector (XLI) | 18.4% | 7.5% |
Fundamental Drivers
The 54.7% change in CAR stock from 5/31/2025 to 6/19/2026 was primarily driven by a 46.6% change in the company's P/S Multiple.| (LTM values as of) | 5312025 | 6192026 | Change |
|---|---|---|---|
| Stock Price ($) | 121.79 | 188.43 | 54.7% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 11,206 | 11,858 | 5.8% |
| P/S Multiple | 0.4 | 0.6 | 46.6% |
| Shares Outstanding (Mil) | 35 | 35 | -0.3% |
| Cumulative Contribution | 54.7% |
Market Drivers
5/31/2025 to 6/19/2026| Return | Correlation | |
|---|---|---|
| CAR | 54.7% | |
| Market (SPY) | 28.1% | 13.2% |
| Sector (XLI) | 28.4% | 13.2% |
Fundamental Drivers
The 18.2% change in CAR stock from 5/31/2023 to 6/19/2026 was primarily driven by a 16.3% change in the company's P/S Multiple.| (LTM values as of) | 5312023 | 6192026 | Change |
|---|---|---|---|
| Stock Price ($) | 159.42 | 188.43 | 18.2% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 13,085 | 11,858 | -9.4% |
| P/S Multiple | 0.5 | 0.6 | 16.3% |
| Shares Outstanding (Mil) | 40 | 35 | 12.2% |
| Cumulative Contribution | 18.2% |
Market Drivers
5/31/2023 to 6/19/2026| Return | Correlation | |
|---|---|---|
| CAR | 18.2% | |
| Market (SPY) | 85.7% | 31.1% |
| Sector (XLI) | 95.3% | 31.2% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| CAR Return | 456% | -21% | 14% | -55% | 59% | 41% | 410% |
| Peers Return | 32% | -17% | 44% | -7% | 16% | 11% | 90% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 8% | 98% |
Monthly Win Rates [3] | |||||||
| CAR Win Rate | 75% | 42% | 42% | 33% | 50% | 50% | |
| Peers Win Rate | 60% | 42% | 58% | 45% | 52% | 47% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 50% | |
Max Drawdowns [4] | |||||||
| CAR Max Drawdown | -43% | -57% | -36% | -62% | -42% | -80% | |
| Peers Max Drawdown | -25% | -36% | -30% | -30% | -29% | -25% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: HTZ, UHAL, R, PAG, UBER. See CAR Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 6/18/2026 (YTD)
How Low Can It Go
| Event | CAR | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -41.1% | -18.8% |
| % Gain to Breakeven | 69.7% | 23.1% |
| Time to Breakeven | 46 days | 79 days |
| 2024 Yen Carry Trade Unwind | ||
| % Loss | -16.1% | -7.8% |
| % Gain to Breakeven | 19.1% | 8.5% |
| Time to Breakeven | 92 days | 18 days |
| Summer-Fall 2023 Five Percent Yield Shock | ||
| % Loss | -28.4% | -9.5% |
| % Gain to Breakeven | 39.6% | 10.5% |
| Time to Breakeven | 893 days | 24 days |
| 2023 SVB Regional Banking Crisis | ||
| % Loss | -28.4% | -6.7% |
| % Gain to Breakeven | 39.7% | 7.1% |
| Time to Breakeven | 35 days | 31 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -31.6% | -24.5% |
| % Gain to Breakeven | 46.3% | 32.4% |
| Time to Breakeven | 31 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -82.0% | -33.7% |
| % Gain to Breakeven | 455.0% | 50.9% |
| Time to Breakeven | 314 days | 140 days |
In The Past
Avis Budget's stock fell -41.1% during the 2025 US Tariff Shock. Such a loss loss requires a 69.7% gain to breakeven.
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| Event | CAR | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -41.1% | -18.8% |
| % Gain to Breakeven | 69.7% | 23.1% |
| Time to Breakeven | 46 days | 79 days |
| Summer-Fall 2023 Five Percent Yield Shock | ||
| % Loss | -28.4% | -9.5% |
| % Gain to Breakeven | 39.6% | 10.5% |
| Time to Breakeven | 893 days | 24 days |
| 2023 SVB Regional Banking Crisis | ||
| % Loss | -28.4% | -6.7% |
| % Gain to Breakeven | 39.7% | 7.1% |
| Time to Breakeven | 35 days | 31 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -31.6% | -24.5% |
| % Gain to Breakeven | 46.3% | 32.4% |
| Time to Breakeven | 31 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -82.0% | -33.7% |
| % Gain to Breakeven | 455.0% | 50.9% |
| Time to Breakeven | 314 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -34.7% | -19.2% |
| % Gain to Breakeven | 53.0% | 23.8% |
| Time to Breakeven | 49 days | 105 days |
| 2016-2017 Trump Reflation Bond Selloff | ||
| % Loss | -38.4% | -3.7% |
| % Gain to Breakeven | 62.4% | 3.9% |
| Time to Breakeven | 70 days | 6 days |
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -53.0% | -12.2% |
| % Gain to Breakeven | 112.8% | 13.9% |
| Time to Breakeven | 687 days | 62 days |
| 2014-2016 Oil Price Collapse | ||
| % Loss | -64.0% | -6.8% |
| % Gain to Breakeven | 177.9% | 7.3% |
| Time to Breakeven | 1865 days | 15 days |
| 2011 US Debt Ceiling Crisis & European Contagion | ||
| % Loss | -45.8% | -17.9% |
| % Gain to Breakeven | 84.4% | 21.8% |
| Time to Breakeven | 212 days | 123 days |
| 2010 Eurozone Sovereign Debt Crisis / Flash Crash | ||
| % Loss | -46.9% | -15.4% |
| % Gain to Breakeven | 88.3% | 18.2% |
| Time to Breakeven | 226 days | 125 days |
| 2008-2009 Global Financial Crisis | ||
| % Loss | -97.3% | -53.4% |
| % Gain to Breakeven | 3664.3% | 114.4% |
| Time to Breakeven | 197 days | 1085 days |
| Summer 2007 Credit Crunch | ||
| % Loss | -31.5% | -8.6% |
| % Gain to Breakeven | 46.1% | 9.5% |
| Time to Breakeven | 2094 days | 47 days |
In The Past
Avis Budget's stock fell -41.1% during the 2025 US Tariff Shock. Such a loss loss requires a 69.7% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About Avis Budget (CAR)
Avis Budget Group (CAR) is a leading global provider of mobility solutions, primarily specializing in vehicle rental and car-sharing services. The company operates several prominent brands: Avis, targeting premium commercial and leisure segments for car rentals; Budget, offering a wider range of car rental options; and Budget Truck, which provides local and one-way truck and cargo van rentals for consumers and light commercial sectors. Additionally, Avis Budget Group owns and operates Zipcar, a well-known car-sharing network.
Beyond its core rental offerings, Avis Budget Group provides a comprehensive array of ancillary products and services designed to enhance the customer experience. These include various optional insurance coverages, fuel service options, roadside assistance, electronic toll collection, and the rental of moving accessories and travel conveniences like navigation units and child safety seats. Serving both individual consumers and businesses, the company maintains an extensive global footprint with approximately 10,400 locations worldwide, catering to diverse needs across travel, moving, and short-term vehicle access markets.
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Avis Budget is like Hertz for broader mobility, offering not just cars but also trucks and car-sharing services.
Avis Budget is like the U-Haul of general vehicle rentals, providing cars, trucks, and car-sharing options globally.
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Avis Budget (CAR) provides the following major products and services:
- Car Rentals: Offers vehicle rental solutions to premium commercial and leisure segments globally under brands like Avis, Budget, Payless, and others.
- Truck Rentals: Provides local and one-way truck and cargo van rentals through the Budget Truck brand, serving consumer and light commercial sectors.
- Car Sharing: Operates Zipcar, a car sharing network for flexible, on-demand vehicle access.
- Optional Insurance and Coverages: Sells various insurance products and coverages such as supplemental liability, personal accident, and cargo insurance.
- Fuel and Roadside Assistance Services: Offers fuel service options and roadside assistance for renters.
- Convenience and Mobility Enhancements: Provides electronic toll collection, curbside delivery, tablet rentals, satellite radio access, portable navigation units, and child safety seat rentals.
- Moving Accessories Rental: Rents automobile towing equipment and other moving accessories like hand trucks and furniture pads.
- Business Intelligence Solution: An online portal designed to provide corporate travel insights for businesses.
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Avis Budget Group (CAR) sells primarily to a diverse range of individual customers, though a significant portion of its business is facilitated through corporate accounts and partnerships. Its major customer categories include:
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Leisure Travelers: Individuals and families renting cars for personal travel, vacations, weekend trips, and other recreational purposes. This category forms a significant part of the customer base for brands like Avis, Budget, Payless, and their international counterparts, catering to diverse needs from economy to luxury vehicles.
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Business Travelers: Individuals renting vehicles for corporate travel, business meetings, client visits, and other professional engagements. While these rentals are often arranged and paid for by their employers (businesses), the direct user and primary customer at the point of service is the individual traveler. The Avis brand, in particular, caters to the premium commercial segment, and the company offers specific solutions like its Business Intelligence portal for corporate clients.
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Local Users and Temporary Needs: This category encompasses individuals requiring vehicles for short-term, specific local needs. This includes individuals renting trucks and cargo vans through Budget Truck for moving homes or transporting goods, as well as those utilizing car-sharing services like Zipcar for urban mobility, errands, or when their personal vehicle is unavailable. It also covers light commercial usage by individuals or very small businesses for operational purposes.
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Brian Choi, Chief Executive Officer
Brian Choi was appointed Chief Executive Officer of Avis Budget Group in July 2025. Prior to this role, he served as the company's Executive Vice President & Chief Financial Officer since August 2020. Effective January 1, 2024, he also took on the newly established position of Executive Vice President & Chief Transformation Officer. Mr. Choi served on the Board of Directors of Avis Budget Group from January 2016 to 2020. Before joining Avis Budget Group, he was a partner at SRS Investment Management, LLC and its affiliates, where he held various roles from 2008 to 2020. Earlier in his career, he worked as an analyst in the Leveraged Finance Group at Lehman Brothers. He holds a Bachelor of Arts degree in Economics from Harvard University.
Daniel Cunha, Executive Vice President and Chief Financial Officer
Daniel Cunha was appointed Executive Vice President and Chief Financial Officer of Avis Budget Group, effective July 1, 2025. He joined the company from Orion Services Group, a commercial field services company backed by private equity, where he served as Chief Financial Officer for the year prior to his appointment at Avis Budget Group. From 2019 to 2023, Mr. Cunha was the Chief Financial Officer of Ocean Spray. He also previously held the position of Chief Financial Officer of Heinz North America. Mr. Cunha began his career at McKinsey. He holds a degree in Mechanical Aeronautical Engineering from Instituto Tecnológico de Aeronáutica and an MBA from Harvard Business School.
Ned Linnen, Executive Vice President and Chief Human Resources Officer
Ned Linnen has served as Executive Vice President and Chief Human Resources Officer of Avis Budget Group since January 2015. He joined the company in 2001 and has held progressively responsible positions, including Senior Vice President of Human Resources for North America, Vice President of Labor Relations, Vice President of International Human Resources, Vice President of Domestic Human Resources, and Field Human Resources Director. Before his tenure at Avis Budget Group, Mr. Linnen held various human resources roles at Kraft Foods Inc. and Nabisco, Inc. He earned a Master of Science degree in Organizational Development from Misericordia University and a Bachelor of Science degree in Human Resources and Psychology from King's College.
Anna Pawlak-Kuliga, President, International
Anna Pawlak-Kuliga is the President, International at Avis Budget Group.
Ravi Simhambhatla, Executive Vice President and Chief Digital and Innovation Officer
Ravi Simhambhatla serves as the Executive Vice President and Chief Digital and Innovation Officer at Avis Budget Group.
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Key Risks to Avis Budget (CAR)
- Intensified Market Competition and Alternative Transportation: Avis Budget Group operates within a highly dynamic and competitive mobility sector. The company faces significant pressure on pricing and market share from traditional car rental competitors like Enterprise and Hertz, as well as from the growing popularity of ride-sharing services (e.g., Uber and Lyft) and car-sharing networks (including other players that compete with its own Zipcar brand). This continuous evolution of transportation options and aggressive market strategies by competitors can adversely affect rental volumes and profitability.
- Economic Sensitivity and Fleet Cost Volatility: The financial performance of Avis Budget Group is highly susceptible to broader economic conditions. Economic downturns or uncertainty directly reduce travel demand, impacting rental volumes and revenue, making the business cyclical. Furthermore, fleet costs represent the company's largest expense, and the business is significantly exposed to the volatility of new vehicle acquisition prices, the availability of vehicles, and fluctuations in used car market values. Unpredictable vehicle resale values can lead to substantial non-cash impairment charges, as seen in late 2024 with a $2.3 billion impairment due to accelerated fleet rotations.
- High Debt Load and Interest Rate Sensitivity: As a capital-intensive business, Avis Budget Group carries a substantial amount of outstanding debt, primarily used to finance its extensive vehicle fleet. This high debt load makes the company particularly vulnerable to increases in interest rates, which can significantly raise financing costs and negatively impact overall profitability. The company's liquidity position can also be sensitive to these financial factors.
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- Autonomous Vehicles and Mobility-as-a-Service (MaaS): The ongoing development and limited deployment of autonomous vehicle fleets by technology companies (e.g., Waymo, Cruise) and automotive manufacturers represent a fundamental shift in personal transportation. If these services scale and become widely available, consumers may opt for on-demand autonomous rides or subscription-based mobility services instead of traditional car rentals for business or leisure travel, thereby reducing demand for Avis Budget's core offerings.
- Direct-to-Consumer Car Subscription Services from Automotive Manufacturers (OEMs): Several automotive manufacturers are exploring and launching direct-to-consumer vehicle subscription or flexible access programs. These services allow consumers to use vehicles with varying terms, often including insurance and maintenance, directly from the manufacturer. Should this trend gain significant traction and widespread adoption, it could bypass the traditional car rental market by offering an alternative, flexible vehicle access solution that competes directly with Avis Budget's offerings.
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Car Rental
- Global: The global car rental market size was estimated at USD 149.87 billion in 2024 and is projected to reach USD 278.03 billion by 2030, growing at a CAGR of 10.5% from 2025 to 2030.
- U.S.: The United States car rental market is estimated to be valued at USD 37.27 billion in 2025 and is expected to reach USD 54.94 billion by 2032, growing at a CAGR of 5.7% from 2025 to 2032.
Truck Rental
- Global: The global truck rental market size is calculated at USD 140.37 billion in 2025 and is predicted to increase to approximately USD 269.57 billion by 2034, expanding at a CAGR of 7.52% from 2025 to 2034.
- U.S.: The US truck rental market size was estimated at USD 21.5 billion in 2024 and is projected to grow from USD 23.71 billion in 2025 to USD 63.12 billion by 2035, exhibiting a compound annual growth rate (CAGR) of 10.2% during the forecast period 2025 - 2035.
Car Sharing (Zipcar)
- Global: The global car sharing market size is expected to be worth around USD 39.7 Billion by 2035 from USD 11.6 Billion in 2025, growing at a CAGR of 13.1% during the forecast period 2026 to 2035.
- U.S.: The U.S. car sharing market size was valued at USD 3.1 billion in 2024 and is estimated to register a CAGR of 4.8% between 2025 and 2034.
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Avis Budget Group (CAR) is expected to drive future revenue growth over the next two to three years through several strategic initiatives aimed at optimizing its core rental business, expanding its market reach, and diversifying its service offerings.
One key driver is the company's focus on strategic fleet management and pricing optimization. Avis Budget is prioritizing fleet utilization over growth, coupled with proprietary pricing systems to enhance profitability and revenue per day (RPD). Initiatives such as the "Avis First" premium product, which has shown an RPD over $100 and high customer satisfaction, aim to create value and improve the customer experience, thereby supporting higher revenue generation.
Another significant growth driver is the expansion into international markets. The company is investing $500 million to grow its presence in Southeast Asia and Eastern Europe, with a goal of increasing international rental locations by 15% by the end of 2026. This geographic expansion is designed to tap into new customer bases and revenue streams.
The growth of loyalty programs and enhanced customer retention, particularly through its Avis Preferred and Budget Fastbreak programs, is also expected to contribute to revenue. These programs boasted a combined membership exceeding 40 million globally as of Q1 2025, fostering repeat business and increasing customer lifetime value.
Lastly, diversification through rideshare partnerships, such as those with Uber and Lyft, has proven to be a successful strategy. This segment provides a flexible fleet for rideshare drivers and has grown to contribute over $2.8 billion in annual revenue, showcasing the company's ability to adapt to new trends in the mobility sector. This diversification is anticipated to continue supporting revenue growth.
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Share Repurchases
- Avis Budget Group authorized a new $1 billion share repurchase program as of November 2025.
- The company's outstanding shares significantly decreased from 69.7 million in 2020 to 35.2 million by December 2025, reflecting substantial share repurchases over this period.
- Quarterly stock buybacks amounted to 3.00 million shares for the period ending December 31, 2025.
Share Issuance
- No large-scale share issuances were reported in the last 3-5 years, with the overall trend indicating a reduction in outstanding shares due to repurchases.
- Minor share issuances occurred through equity compensation, such as an EVP receiving 2,335 common shares from restricted stock unit conversions in July 2025.
Inbound Investments
- Pentwater Capital Management LP, a ten-percent owner, purchased 425,000 common shares for approximately $40 million on February 20, 2026.
- In December 2025, Avis Budget generated $183 million in cash proceeds from monetizing tax credits related to selling electric vehicles to a joint venture.
Outbound Investments
- Avis Budget Group completed a $1.2 billion acquisition of RideTronic, indicating a strategic pivot toward redefining transportation through technology and expansion.
- The company is investing $500 million to expand its global presence, with plans to increase international rental locations by 15% by the end of 2026, focusing on Southeast Asia and Eastern Europe.
Capital Expenditures
- Capital expenditures were $218 million for the full year ended December 31, 2025.
- For the full year ended December 31, 2023, capital expenditures were $273 million.
- Primary focus areas for capital expenditures include fleet modernization, digital transformation (including over $300 million allocated to research and development in 2024), electrification of the fleet to 30% of North American and European vehicles by the end of 2025, and the installation of over 5,000 charging stations.
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Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 123.42 |
| Mkt Cap | 10.9 |
| Rev LTM | 12,272 |
| Op Inc LTM | 819 |
| FCF LTM | -441 |
| FCF 3Y Avg | -903 |
| CFO LTM | 2,160 |
| CFO 3Y Avg | 2,183 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 1.6% |
| Rev Chg 3Y Avg | 0.8% |
| Rev Chg Q | 6.8% |
| QoQ Delta Rev Chg LTM | 1.4% |
| Op Inc Chg LTM | 30.2% |
| Op Inc Chg 3Y Avg | -5.4% |
| Op Mgn LTM | 6.1% |
| Op Mgn 3Y Avg | 6.8% |
| QoQ Delta Op Mgn LTM | 0.4% |
| CFO/Rev LTM | 19.4% |
| CFO/Rev 3Y Avg | 20.5% |
| FCF/Rev LTM | -10.3% |
| FCF/Rev 3Y Avg | -14.8% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 10.9 |
| P/S | 0.7 |
| P/Op Inc | 11.7 |
| P/EBIT | 8.6 |
| P/E | 14.8 |
| P/CFO | 5.4 |
| Total Yield | 3.4% |
| Dividend Yield | 0.1% |
| FCF Yield 3Y Avg | -9.1% |
| D/E | 0.8 |
| Net D/E | 0.8 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | 11.7% |
| 3M Rtn | 32.9% |
| 6M Rtn | 13.9% |
| 12M Rtn | 3.2% |
| 3Y Rtn | 20.8% |
| 1M Excs Rtn | 12.2% |
| 3M Excs Rtn | 18.6% |
| 6M Excs Rtn | 2.2% |
| 12M Excs Rtn | -21.1% |
| 3Y Excs Rtn | -52.7% |
Comparison Analyses
Segment Financials
Revenue by Segment| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Single Segment | 11,652 | 11,789 | 12,008 | 11,994 | 9,313 |
| Total | 11,652 | 11,789 | 12,008 | 11,994 | 9,313 |
| $ Mil | 2005 | 2004 | 2003 | 2000 | 1997 |
|---|---|---|---|---|---|
| Real Estate Services | 1,184 | 1,069 | 1,272 | 430 | 274 |
| Hospitality | 449 | 714 | 633 | ||
| Vehicle Services | 439 | 625 | 442 | ||
| Timeshare | 289 | ||||
| Travel Distribution | 100 | 466 | 459 | ||
| Mortgage Services | -181 | 183 | |||
| Corporate & Other | -6 | -35 | |||
| Marketing Services | 341 | ||||
| Financial Services | 363 | ||||
| Diversified Services | 144 | ||||
| Insurance/Wholesale | 177 | ||||
| Mortgage | 180 | ||||
| Move.com | -94 | ||||
| Relocation | 142 | ||||
| Travel Services | 564 | 212 | |||
| Membership Services | 258 | ||||
| Other Services | 193 | ||||
| Total | 2,280 | 3,392 | 3,134 | 1,543 | 938 |
| $ Mil | 2015 | 2014 | 2007 | 2006 | 2005 |
|---|---|---|---|---|---|
| Americas | 13,380 | ||||
| International | 4,177 | 3,745 | |||
| Corporate and Other | 77 | 175 | |||
| North America | 12,626 | ||||
| Truck Rental | 423 | 517 | 502 | ||
| Domestic car Rental | 6,421 | 6,400 | |||
| International car Rental | 1,043 | 798 | |||
| Corporate & Other | 1,190 | ||||
| Hospitality | 3,387 | ||||
| Real Estate Services | 5,297 | ||||
| Timeshare | 4,723 | ||||
| Travel Distribution | 6,905 | ||||
| Vehicle Services | 12,638 | ||||
| Total | 17,634 | 16,969 | 7,981 | 7,700 | 34,140 |
Price Behavior
| Market Price | $188.43 | |
| Market Cap ($ Bil) | 6.7 | |
| First Trading Date | 01/12/1990 | |
| Distance from 52W High | -73.6% | |
| 50 Days | 200 Days | |
| DMA Price | $227.43 | $157.50 |
| DMA Trend | indeterminate | up |
| Distance from DMA | -17.1% | 19.6% |
| 3M | 1YR | |
| Volatility | 177.5% | 100.5% |
| Downside Capture | 182.04 | 179.67 |
| Upside Capture | 311.00 | 174.62 |
| Correlation (SPY) | 4.9% | 12.7% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 0.84 | 1.14 | 0.42 | 1.08 | 1.13 | 1.57 |
| Up Beta | -3.37 | -3.33 | -0.96 | 0.43 | 1.12 | 1.52 |
| Down Beta | -3.58 | -1.84 | -3.29 | -1.43 | -0.41 | 1.14 |
| Up Capture | 171% | 430% | 409% | 327% | 251% | 623% |
| Bmk +ve Days | 13 | 28 | 36 | 67 | 141 | 432 |
| Stock +ve Days | 10 | 23 | 35 | 65 | 127 | 366 |
| Down Capture | 534% | 839% | 131% | 192% | 151% | 112% |
| Bmk -ve Days | 7 | 13 | 27 | 57 | 109 | 318 |
| Stock -ve Days | 10 | 18 | 28 | 59 | 122 | 383 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with CAR | |
|---|---|---|---|---|
| CAR | 44.5% | 100.3% | 0.90 | - |
| Sector ETF (XLI) | 28.7% | 16.2% | 1.38 | 12.9% |
| Equity (SPY) | 26.5% | 12.4% | 1.61 | 12.9% |
| Gold (GLD) | 24.2% | 27.5% | 0.77 | -0.1% |
| Commodities (DBC) | 19.8% | 18.8% | 0.83 | -5.3% |
| Real Estate (VNQ) | 11.0% | 13.7% | 0.52 | 15.2% |
| Bitcoin (BTCUSD) | -40.0% | 42.5% | -1.08 | 8.6% |
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Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with CAR | |
|---|---|---|---|---|
| CAR | 15.6% | 87.4% | 0.52 | - |
| Sector ETF (XLI) | 13.5% | 17.5% | 0.61 | 34.0% |
| Equity (SPY) | 13.5% | 17.1% | 0.62 | 33.7% |
| Gold (GLD) | 17.1% | 18.3% | 0.76 | 2.3% |
| Commodities (DBC) | 7.5% | 19.4% | 0.29 | 10.2% |
| Real Estate (VNQ) | 1.9% | 18.9% | 0.00 | 28.3% |
| Bitcoin (BTCUSD) | 11.0% | 54.2% | 0.40 | 17.4% |
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Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with CAR | |
|---|---|---|---|---|
| CAR | 19.0% | 79.6% | 0.56 | - |
| Sector ETF (XLI) | 14.2% | 20.0% | 0.62 | 44.3% |
| Equity (SPY) | 15.3% | 18.0% | 0.73 | 40.7% |
| Gold (GLD) | 12.3% | 16.1% | 0.63 | -0.1% |
| Commodities (DBC) | 5.9% | 18.0% | 0.26 | 18.0% |
| Real Estate (VNQ) | 5.3% | 20.7% | 0.22 | 35.2% |
| Bitcoin (BTCUSD) | 60.0% | 66.8% | 1.00 | 12.8% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Updated 6/2/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 4/29/2026 | -0.5% | -12.0% | -3.9% |
| 2/18/2026 | -21.5% | -24.7% | -18.5% |
| 10/27/2025 | -6.1% | -14.8% | -13.6% |
| 7/29/2025 | -15.4% | -21.9% | -23.0% |
| 5/7/2025 | 0.6% | 5.3% | 22.4% |
| 2/11/2025 | -6.8% | 5.0% | -38.1% |
| 10/31/2024 | 10.9% | 14.2% | 27.6% |
| 8/5/2024 | 2.8% | -1.0% | -11.2% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 9 | 11 | 9 |
| # Negative | 15 | 13 | 15 |
| Median Positive | 10.7% | 5.3% | 22.4% |
| Median Negative | -6.7% | -12.0% | -11.2% |
| Max Positive | 108.3% | 70.9% | 51.6% |
| Max Negative | -22.9% | -36.9% | -38.1% |
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 4/29/2026 | -0.5% | -12.0% | -3.9% |
| 2/18/2026 | -21.5% | -24.7% | -18.5% |
| 10/27/2025 | -6.1% | -14.8% | -13.6% |
| 7/29/2025 | -15.4% | -21.9% | -23.0% |
| 5/7/2025 | 0.6% | 5.3% | 22.4% |
| 2/11/2025 | -6.8% | 5.0% | -38.1% |
| 10/31/2024 | 10.9% | 14.2% | 27.6% |
| 8/5/2024 | 2.8% | -1.0% | -11.2% |
| 5/1/2024 | 20.1% | 27.1% | 20.0% |
| 2/12/2024 | -22.9% | -36.9% | -32.8% |
| 11/1/2023 | 14.0% | 15.4% | 19.3% |
| 7/31/2023 | 2.9% | 1.8% | -0.5% |
| 5/1/2023 | -3.1% | -8.3% | -5.3% |
| 2/13/2023 | 10.7% | 2.1% | -15.1% |
| 10/31/2022 | -6.7% | 1.5% | -5.4% |
| 8/1/2022 | -4.7% | 3.3% | -6.4% |
| 5/2/2022 | 1.7% | -19.0% | -33.2% |
| 2/14/2022 | -12.0% | -22.5% | 44.6% |
| 11/1/2021 | 108.3% | 70.9% | 47.7% |
| 8/3/2021 | -16.6% | -4.5% | 3.7% |
| 5/3/2021 | -6.4% | -7.5% | -2.7% |
| 2/16/2021 | -6.3% | 19.3% | 51.6% |
| 10/29/2020 | -8.3% | -12.0% | -4.2% |
| 7/28/2020 | -0.5% | -7.8% | 20.6% |
| SUMMARY STATS | |||
| # Positive | 9 | 11 | 9 |
| # Negative | 15 | 13 | 15 |
| Median Positive | 10.7% | 5.3% | 22.4% |
| Median Negative | -6.7% | -12.0% | -11.2% |
| Max Positive | 108.3% | 70.9% | 51.6% |
| Max Negative | -22.9% | -36.9% | -38.1% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 03/31/2026 | 04/29/2026 | 10-Q |
| 12/31/2025 | 02/19/2026 | 10-K |
| 09/30/2025 | 10/28/2025 | 10-Q |
| 06/30/2025 | 07/30/2025 | 10-Q |
| 03/31/2025 | 05/08/2025 | 10-Q |
| 12/31/2024 | 02/14/2025 | 10-K |
| 09/30/2024 | 11/01/2024 | 10-Q |
| 06/30/2024 | 08/06/2024 | 10-Q |
| 03/31/2024 | 05/02/2024 | 10-Q |
| 12/31/2023 | 02/16/2024 | 10-K |
| 09/30/2023 | 11/02/2023 | 10-Q |
| 06/30/2023 | 08/01/2023 | 10-Q |
| 03/31/2023 | 05/02/2023 | 10-Q |
| 12/31/2022 | 02/16/2023 | 10-K |
| 09/30/2022 | 11/01/2022 | 10-Q |
| 06/30/2022 | 08/02/2022 | 10-Q |
| Report Date | Filing Date | Filing |
|---|---|---|
| 03/31/2026 | 04/29/2026 | 10-Q |
| 12/31/2025 | 02/19/2026 | 10-K |
| 09/30/2025 | 10/28/2025 | 10-Q |
| 06/30/2025 | 07/30/2025 | 10-Q |
| 03/31/2025 | 05/08/2025 | 10-Q |
| 12/31/2024 | 02/14/2025 | 10-K |
| 09/30/2024 | 11/01/2024 | 10-Q |
| 06/30/2024 | 08/06/2024 | 10-Q |
| 03/31/2024 | 05/02/2024 | 10-Q |
| 12/31/2023 | 02/16/2024 | 10-K |
| 09/30/2023 | 11/02/2023 | 10-Q |
| 06/30/2023 | 08/01/2023 | 10-Q |
| 03/31/2023 | 05/02/2023 | 10-Q |
| 12/31/2022 | 02/16/2023 | 10-K |
| 09/30/2022 | 11/01/2022 | 10-Q |
| 06/30/2022 | 08/02/2022 | 10-Q |
| 03/31/2022 | 05/03/2022 | 10-Q |
| 12/31/2021 | 02/17/2022 | 10-K |
| 09/30/2021 | 11/02/2021 | 10-Q |
| 06/30/2021 | 08/04/2021 | 10-Q |
| 03/31/2021 | 05/04/2021 | 10-Q |
| 12/31/2020 | 02/17/2021 | 10-K |
| 09/30/2020 | 10/30/2020 | 10-Q |
| 06/30/2020 | 07/29/2020 | 10-Q |
| 03/31/2020 | 05/01/2020 | 10-Q |
| 12/31/2019 | 02/20/2020 | 10-K |
| 09/30/2019 | 11/01/2019 | 10-Q |
| 06/30/2019 | 08/06/2019 | 10-Q |
Insider Activity
Updated 5/12/2026| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Simhambhatla, Ravi | EVP, CDIO - see remarks | Direct | Sell | 4302026 | 184.09 | 3,469 | 638,608 | 2,554,433 | Form |
| 2 | Linnen, Edward P | EVP, Chief HR Officer | Direct | Sell | 4302026 | 182.32 | 9,483 | 1,728,900 | 6,915,601 | Form |
| 3 | Pentwater, Capital Management LP | Pentwater Merger Arbitrage Master Fund Ltd. | Sell | 4282026 | 264.60 | 843,201 | 223,110,985 | 922,131,000 | Form | |
| 4 | Pentwater, Capital Management LP | Oceana Master Fund Ltd. | Sell | 4282026 | 264.98 | 184,707 | 48,943,471 | 1,221,564,182 | Form | |
| 5 | Pentwater, Capital Management LP | Pentwater Credit Master Fund Ltd. | Sell | 4282026 | 272.64 | 34,915 | 9,519,283 | 1,252,618,786 | Form |
| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Simhambhatla, Ravi | EVP, CDIO - see remarks | Direct | Sell | 4302026 | 184.09 | 3,469 | 638,608 | 2,554,433 | Form |
| 2 | Linnen, Edward P | EVP, Chief HR Officer | Direct | Sell | 4302026 | 182.32 | 9,483 | 1,728,900 | 6,915,601 | Form |
| 3 | Pentwater, Capital Management LP | Pentwater Merger Arbitrage Master Fund Ltd. | Sell | 4282026 | 264.60 | 843,201 | 223,110,985 | 922,131,000 | Form | |
| 4 | Pentwater, Capital Management LP | Oceana Master Fund Ltd. | Sell | 4282026 | 264.98 | 184,707 | 48,943,471 | 1,221,564,182 | Form | |
| 5 | Pentwater, Capital Management LP | Pentwater Credit Master Fund Ltd. | Sell | 4282026 | 272.64 | 34,915 | 9,519,283 | 1,252,618,786 | Form | |
| 6 | Pentwater, Capital Management LP | LMA SPC for and on behalf of the MAP 98 Segregated Portfolio | Sell | 4282026 | 272.08 | 5,588 | 1,520,379 | 1,249,320,169 | Form | |
| 7 | Pentwater, Capital Management LP | Pentwater Equity Opportunities Master Fund Ltd. | Sell | 4282026 | 272.64 | 393,918 | 107,398,190 | 1,203,716,203 | Form | |
| 8 | Pentwater, Capital Management LP | Crown Managed Accounts SPC acting for and on behalf of Crown/PW Segregated Portfolio | Sell | 4282026 | 272.64 | 193,520 | 52,761,481 | 1,180,044,924 | Form | |
| 9 | Pentwater, Capital Management LP | Pentwater Merger Arbitrage Master Fund Ltd. | Sell | 4282026 | 279.18 | 1,036,251 | 289,304,672 | 1,325,314,242 | Form | |
| 10 | Pentwater, Capital Management LP | Pentwater Merger Arbitrage Master Fund Ltd. | Sell | 4282026 | 438.74 | 3,347 | 1,468,463 | 2,710,140,854 | Form | |
| 11 | Pentwater, Capital Management LP | Oceana Master Fund Ltd. | Sell | 4282026 | 702.24 | 58,529 | 41,101,405 | 5,453,294,579 | Form | |
| 12 | Pentwater, Capital Management LP | Pentwater Credit Master Fund Ltd. | Sell | 4282026 | 637.13 | 26,583 | 16,936,763 | 3,938,400,553 | Form | |
| 13 | Pentwater, Capital Management LP | LMA SPC for and on behalf of the MAP 98 Segregated Portfolio | Sell | 4282026 | 672.78 | 19,132 | 12,871,695 | 4,889,807,787 | Form | |
| 14 | Pentwater, Capital Management LP | Oceana Master Fund Ltd. | Sell | 4282026 | 615.23 | 174,054 | 107,083,812 | 3,803,098,932 | Form | |
| 15 | Pentwater, Capital Management LP | Pentwater Equity Opportunities Master Fund Ltd. | Sell | 4282026 | 614.80 | 218,560 | 134,370,640 | 3,799,949,552 | Form | |
| 16 | Pentwater, Capital Management LP | Crown Managed Accounts SPC acting for and on behalf of Crown/PW Segregated Portfolio | Sell | 4282026 | 614.80 | 107,374 | 66,013,479 | 3,799,735,558 | Form | |
| 17 | Pentwater, Capital Management LP | Pentwater Merger Arbitrage Master Fund Ltd. | Sell | 4282026 | 615.37 | 1,039,421 | 639,625,353 | 3,804,260,157 | Form | |
| 18 | Pentwater, Capital Management LP | See footnote | Buy | 2242026 | 94.26 | 425,000 | 40,060,075 | 375,820,059 | Form | |
| 19 | Krominga, Lynn | Direct | Sell | 2242026 | 91.54 | 1,950 | Form | |||
| 20 | Linnen, Edward P | EVP, Chief HR Officer | Direct | Sell | 8182025 | 156.83 | 10,000 | 1,568,283 | 6,416,629 | Form |
| 21 | Hees, Bernardo | See footnote | Sell | 8062025 | 156.59 | 402,200 | 62,980,572 | 18,246,045 | Form |
Industry Resources
| Industrials Resources |
| IndustryWeek |
| Manufacturing.net |
| Aviation Week |
| Passenger Ground Transportation Resources |
| Mass Transit Magazine |
| Metro Magazine |
| Transit World |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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