Shares of Hertz Global Holdings, Inc. (HTZ) tumbled 6.05% in after-hours trading on Monday following the release of the company's disappointing first-quarter 2025 financial results. The car rental giant reported a wider-than-expected loss and a significant decline in revenue, falling short of analyst estimates across key metrics.

Hertz announced an adjusted loss per share of $1.12, missing the analyst consensus estimate of $0.97. Revenue took a substantial hit, coming in at $1.81 billion, a 13% decrease from $2.08 billion a year earlier and well below the expected $2.00 billion. The company's net loss widened to $443 million from $186 million in the same period last year.

The company attributed the weaker performance to intentionally constrained supply due to uncertain macroeconomic conditions. Hertz noted that it has recently seen demand moderate for corporate, government, and U.S. inbound segments, although forward bookings for leisure travel are up year-over-year. Despite the challenges, Hertz highlighted some positive developments, including a 45% reduction in vehicle depreciation year-over-year and progress in its fleet management strategy. The company remains on track to achieve positive adjusted corporate EBITDA by the third quarter of 2025 and is targeting depreciation of less than $300 per unit, potentially as soon as the second quarter of this year.