Hertz Global Holdings saw its shares drop by more than 20% after releasing its first-quarter 2025 financial results, which did not meet Wall Street expectations. The company reported a revenue of $1.81 billion, representing a 13% decline from the previous year and falling short of the analyst predictions of $2 billion. Additionally, Hertz posted an adjusted net loss of $1.12 per share, narrower than the loss from the prior year but worse than the anticipated $0.97 per share loss.

The revenue downturn has been attributed to a 8% fleet size reduction and reduced demand from corporate, government, and U.S. inbound customers. To address these financial challenges, Hertz announced a $250 million stock offering aimed at increasing liquidity, though this move could dilute the existing shareholders' stakes. Reuters reported these developments at a time of considerable pressure on the company's operational capabilities.

Despite the recent setback, Hertz's shares have climbed nearly 61% so far this year. This surge is partly credited to hedge fund billionaire Bill Ackman, who increased his stake in the company to nearly 20% last month. As Hertz navigates through its current struggles, the stock offering marks a strategic effort to bolster its financial standing.