How Q3 Beat And Zipcar UK Exit At Avis (CAR) Has Changed Its Investment Story

• Avis Budget Group recently posted a strong Q3, with revenue exceeding analyst expectations and returning to growth while continuing to invest in innovation and customer experience.
• At the same time, the company moved to close loss-making Zipcar UK operations, underscoring a sharper focus on profitability, cost discipline, and long-term efficiency.
• We'll now explore how Q3’s revenue beat and the decision to close Zipcar’s UK business may reshape Avis Budget Group’s investment narrative.

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Avis Budget Group Investment Narrative Recap

To own Avis Budget Group, you need to believe the company can turn its global rental scale, premium offerings and technology investments into durable earnings, despite recent losses and a cyclical industry. Q3’s revenue beat and the closure of Zipcar UK both point to a near term focus on restoring profitability, but they do not fundamentally change the key catalyst of execution on premiumization and innovation, or the main risk around earnings volatility and balance sheet pressure.

The most relevant recent announcement here is Q3 2025 earnings, where revenue grew year on year to US$3,519 million and net income improved to US$359 million. Set against earlier quarters of sizeable losses, this reinforces how closely the investment case now hinges on management’s ability to sustain profitable growth while tightening underperforming operations like Zipcar UK and continuing to fund new mobility and technology initiatives.

Yet beneath the strong Q3, investors should still pay close attention to how interest coverage and earnings sensitivity to demand could...

Read the full narrative on Avis Budget Group (it's free!)

Avis Budget Group's narrative projects $12.2 billion revenue and $1.0 billion earnings by 2028. This requires 1.4% yearly revenue growth and a $3.2 billion earnings increase from $-2.2 billion today.

Uncover how Avis Budget Group's forecasts yield a $135.75 fair value, in line with its current price.

Exploring Other Perspectives

Two members of the Simply Wall St Community currently see fair value between US$135.75 and US$246.44, illustrating how far opinions can stretch. As you weigh these views, keep in mind that the core catalyst hinges on Avis’s ability to convert its premium and technology investments into more stable earnings over time, which could materially influence how that wide valuation gap eventually resolves.

Explore 2 other fair value estimates on Avis Budget Group - why the stock might be worth as much as 83% more than the current price!

Build Your Own Avis Budget Group Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Avis Budget Group research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Avis Budget Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Avis Budget Group's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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