Avis Budget Group Inc (NASDAQ:CAR) Reports Mixed Q2 2025 Earnings: Revenue Beat but EPS Miss Sparks Volatility

Avis Budget Group Inc (NASDAQ:CAR) reported its second-quarter 2025 earnings, revealing mixed results compared to analyst expectations. The company posted revenue of $3.04 billion, narrowly surpassing the consensus estimate of $3.037 billion. However, earnings per share (EPS) came in at $0.10, significantly below the estimated $1.87—a miss that has likely contributed to the stock’s volatile after-hours reaction.

Key Takeaways from the Earnings Report

• Revenue Slightly Beats Estimates: The $3.04 billion in revenue represents a modest beat, suggesting stable demand for the company’s rental and mobility services despite broader economic uncertainties.
• EPS Misses Significantly: The reported EPS of $0.10 fell far short of the $1.87 estimate, indicating higher-than-expected costs or operational challenges.
• Adjusted EBITDA at $277 Million: While not a direct earnings metric, this figure provides insight into operational profitability before interest, taxes, depreciation, and amortization.
• Net Income of $5 Million: A sharp decline from prior quarters, reflecting margin pressures or one-time expenses.

Market Reaction

Following the earnings release, the stock saw an after-hours movement of +4.03%, an unexpected reaction given the EPS miss. This could suggest that investors were anticipating worse results or are focusing on the revenue beat and Adjusted EBITDA performance. Over the past month, shares have risen 18.26%, indicating some pre-earnings optimism.

Forward-Looking Estimates

Analysts expect Q3 2025 revenue to reach $3.495 billion, with full-year sales projected at $11.821 billion. The company did not provide an explicit outlook in its press release, leaving investors to rely on these external estimates.

Conclusion

While Avis Budget Group managed to exceed revenue expectations, the substantial EPS miss raises questions about profitability trends. The positive after-hours movement suggests some investors may be looking past the earnings shortfall, possibly due to stabilizing demand in the rental sector.

For a deeper dive into Avis Budget Group’s earnings and analyst estimates, visit the earnings page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.