Shares of Hertz Global Holdings, Inc. (HTZ) tumbled 5.76% 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 by 15.46%. This represents a slight improvement from the $1.28 loss per share reported in the same quarter last year. However, the company's revenue took a substantial hit, coming in at $1.81 billion, a 12.84% decrease from the $2.08 billion reported in Q1 2024 and well below the expected $2.00 billion. The adjusted EBITDA was reported at -$325 million, significantly worse than the -$273.1 million analysts had projected.

Despite the disappointing results, Hertz highlighted some positive developments in its report. The company stated that it is on track to achieve positive adjusted corporate EBITDA by the third quarter of 2025. Additionally, Hertz reported progress in its fleet management strategy, with a 45% reduction in vehicle depreciation year-over-year. The company also expects to meet its target of sub $300 depreciation per unit faster than anticipated, potentially by the second quarter. These operational improvements may provide some optimism for the company's future performance, even as it grapples with current financial challenges.