What Avis Budget Group, Inc. told the SEC could break it.

Avis is heavily leveraged (>$6B corporate debt plus asset-backed fleet facilities) with restrictive covenants; a covenant breach could trigger cross-defaults across its debt, including ABS facilities, amid reported net losses.

“Our failure to comply with these restrictive covenants and provisions, if not waived, would cause a default under the applicable debt agreement and could result in a cross-default under several of our other debt obligations, including our asset-backed debt facilities.”

Only ~24% of disposed vehicles in 2025 were price-guaranteed program vehicles; the majority are 'risk' vehicles whose resale exposes Avis to wholesale used-vehicle price fluctuations.

“When we return program vehicles to the manufacturer, we receive the price guaranteed at the time of purchase and are therefore protected from fluctuations in the price of previously-owned vehicles in the wholesale market.”

Avis relies heavily on its reservation systems, websites and network infrastructure — and on third-party communications/system providers — so a failure or interruption could halt bookings and rentals.

“We rely heavily on the satisfactory performance and availability of our information systems, including our reservation systems, websites and network infrastructure to attract and retain customers, accept reservations, process rental and sales transactions, manage our fleet of vehicles, account for our activities and otherwise conduct our business.”

Avis depends on automobile manufacturers for fleet; OEM program-vehicle agreements dictate pricing, minimum holding periods and return conditions, and changing OEM terms/availability can raise fleet costs.

“Our agreements with automobile manufacturers typically require that we pay more for program vehicles and maintain them in our fleet for a minimum number of months and impose certain return conditions, including vehicle condition and mileage requirements.”

While OBBBA made federal full expensing permanent, some states do not conform, denying full-expensing benefits for state tax purposes and increasing Avis's state tax liability.

“states have modified their tax statutes as a result of the Tax Act, and such state legislation does not allow the use of full expensing benefits for state tax purposes, which negatively impacts our tax liability in such states.”