Avis Budget Group’s third quarter performance was met with a positive market reaction, reflecting a combination of modest revenue growth and stronger profitability. Management attributed these results to disciplined cost control, operational improvements, and early benefits from new service initiatives like Avis First. CEO Brian Choi emphasized that sustainable EBITDA growth requires both volume and price gains, noting, “You have to grow both volume and price by delivering a product that wins the customer’s share of wallet.” The quarter also marked progress in stabilizing revenue, despite persistent challenges in pricing and fleet recalls.

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While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Avis Budget Group’s Q3 Earnings Call

• John Healy (Northcoast Research) asked about the drivers behind the U.S. pricing decline; CEO Brian Choi cited seasonal softness and ongoing inflation, but expects modest improvement next quarter.
• Chris Woronka (Deutsche Bank) inquired about quantifying the recall impact; CFO Daniel Cunha estimated $90–100 million in full-year cost, largely tied to depreciation and utilization.
• Elizabeth Dove (Goldman Sachs) questioned whether RPD can structurally rise and the willingness to sacrifice share for margin; Choi emphasized prioritizing return on invested capital over market share.
• Christopher Stathoulopoulos (Susquehanna International Group) asked about the long-term outlook for customer experience investments; Choi stressed that it’s a multi-year journey, with a baseline EBITDA floor of $1 billion as the foundation for reinvestment.
• Dan Levy (Barclays) sought clarity on international segment trends; Choi highlighted deliberate product mix changes that boosted EBITDA and plans for increased focus and investment globally.

Catalysts in Upcoming Quarters

In coming quarters, our analysts will watch (1) the pace of adoption and profitability expansion from the Avis First premium service, (2) the resolution of fleet recalls and the associated impact on utilization and costs, and (3) progress in international market repositioning toward higher-margin segments. The company’s investments in technology and customer care, as well as its response to macro events such as the World Cup and America 250, will also be key markers of execution.

Avis Budget Group currently trades at $136.07, down from $155.18 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free for active Edge members).

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