Avis Budget Group (CAR) risk factors, FY2025 10-K

Avis Budget Group's FY2025 10-K, filed Feb 19, 2026, lists 33 risk factors in 5 groups. Against the prior year's 34: 1 dropped, 6 substantially reworded.

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Risk factors listed
335 groups
New this year
0vs 34 last year
Dropped
1since the prior 10-K
Substantially reworded
6of those kept
Section length
10k wordsItem 1A

What the changes say

  • No new risks were added; one debt-covenant default and cross-default risk was dropped.
  • Electrification risk now emphasizes charging infrastructure reliability, capital needs, third-party investment and uncertain demand.
  • Interest-rate exposure increased, with total debt rising to $25.4 billion and unhedged exposure to $5.9 billion.

What changed since the prior 10-K

Dropped

  • DroppedRISKS RELATED TO OUR CAPITAL STRUCTURE AND INDEBTEDNESS

    ability to respond to adverse changes in general economic, industry and competitive conditions, as well as changes in government regulation and changes to our business

Reworded

  • 63% rewrittenRISKS RELATED TO THE NATURE OF OUR BUSINESS

    We face risks related to vehicle electrification

    Adds risks from inadequate charging infrastructure, substantial capital investment, insufficient third-party investment, regulatory changes and weaker-than-expected electric, hybrid or autonomous vehicle demand.

  • 54% rewrittenRISKS RELATED TO LEGAL, REGULATORY AND CORPORATE RESPONSIBILITY RELATED MATTERS

    We face risks related to Corporate Responsibility matters

    Recasts ESG language as Corporate Responsibility matters and emphasizes changing public interest and related regulations rather than growing ESG focus and expectations.

    Was: We face risks related to ESG matters

  • 52% rewrittenRISKS RELATED TO OUR CAPITAL STRUCTURE AND INDEBTEDNESS

    We face risks related to our current and future debt obligations, including risks related to conditions in the credit and asset-backed securities markets

    The supplied prior-year and current-year text appears substantively unchanged.

  • 34% rewrittenRISKS RELATED TO OUR INDUSTRY AND THE BROADER ECONOMY

    We face risks related to safety recalls affecting our vehicles

    States recalls have occurred previously and more directly says they increase costs, reduce revenue and utilization; parts must be readily available.

  • 33% rewrittenRISKS RELATED TO LEGAL, REGULATORY AND CORPORATE RESPONSIBILITY RELATED MATTERS

    We face risks associated with changes in tax laws, including the expiration of tax credits

    The supplied current text no longer includes the prior discussion of full-expensing phaseout at 20% annually from 2023 through 2027.

    Was: We face risks associated with changes in tax laws

  • 27% rewrittenRISKS RELATED TO OUR CAPITAL STRUCTURE AND INDEBTEDNESS

    We face risks related to increases in interest rates

    Updates figures from 2024 to 2025: total debt rose from $23.1 billion to $25.4 billion, while unhedged exposure rose from $4.1 billion to $5.9 billion; seasonal peak decreased from $6.4 billion to $6.2 billion.

All 33 risk factors

Headings as the filing states them, in filing order.

RISKS RELATED TO OUR INDUSTRY AND THE BROADER ECONOMY

  1. 01We face risks related to the high level of competition in the mobility industry
  2. 02We face risks related to fleet costs and availability
  3. 03We face risks related to safety recalls affecting our vehicles34% rewritten
  4. 04Weakness or fluctuations in travel demand or general economic conditions, or a significant increase in fuel costs, can adversely impact our business
  5. 05We face risks related to political, economic and commercial instability or uncertainty in the countries in which we operate
  6. 06Ongoing military conflicts, including in the Middle East and Eastern Europe, are causing uncertainty that may have an adverse impact on our business, financial condition and results of operations

RISKS RELATED TO THE NATURE OF OUR BUSINESS

  1. 07Damage to our reputation or brands may negatively impact our business
  2. 08We face risks related to third-party distribution channels that we rely upon
  3. 09We face risks related to our property leases and vehicle rental concessions
  4. 10We face risks related to the seasonality of our business
  5. 11We face risks related to acquisitions, including the acquisition of existing licensees or investments in or partnerships with other related businesses
  6. 12We face risks related to vehicle electrification63% rewritten
  7. 13We face risks related to liability and insurance
  8. 14Additionally, current United States federal law pre-empts state laws that impute tort liability based solely on ownership of a vehicle involved in an accident. If such federal law were to change, our insurance liability exposure could materially increase
  9. 15We face risks related to fluctuations in currency exchange rates
  10. 16We face risks related to our derivative instruments
  11. 17We have in the past been, and may in the future be, impacted by impairment charges

RISKS RELATED TO LEGAL, REGULATORY AND CORPORATE RESPONSIBILITY RELATED MATTERS

  1. 18Costs associated with lawsuits, investigations or increases in legal reserves that we establish based on our assessment of contingent liabilities may have an adverse effect on our results of operations
  2. 19We face risks related to laws and regulations that could impact our global operations
  3. 20We face risks related to environmental laws and regulations
  4. 21We face risks related to Corporate Responsibility matters54% rewritten
  5. 22We face risks related to franchising or licensing laws and regulations
  6. 23We face risks related to the actions of, or failures to act by, our licensees, dealers, independent operators or third-party vendors
  7. 24We face risks associated with changes in tax laws, including the expiration of tax credits33% rewritten

RISKS RELATED TO OUR CAPITAL STRUCTURE AND INDEBTEDNESS

  1. 25We face risks related to our current and future debt obligations, including risks related to conditions in the credit and asset-backed securities markets52% rewritten
  2. 26We face risks related to increases in interest rates27% rewritten
  3. 27We face certain risks related to our share repurchase program

RISKS RELATED TO OUR INTELLECTUAL PROPERTY MATTERS, DATA SECURITY AND PRIVACY

  1. 28We face risks related to our protection of our intellectual property
  2. 29We face risks related to our reliance on communications networks and centralized information systems
  3. 30We face risks related to cybersecurity breaches of our systems and information technology
  4. 31We are subject to privacy, data protection, data security and other regulations, as well as private industry standards, which could negatively impact our global operations and cause us to incur additional incremental expense or reputational harm that impacts our future operating results
  5. 32We face risks related to the market price of our common stock
  6. 33Certain provisions of our certificate of incorporation and by-laws and Delaware law could prevent or delay a potential acquisition of control of our Company, which could decrease the trading price of our common stock

Other Avis Budget Group 10-Ks

  • FY2024 10-K risk factors
    34 risks

    Fleet costs and vehicle availability dominate our largest operating expenses and capital requirements. Global travel demand fluctuations, fuel costs, and macroeconomic conditions directly impact our rental volumes and profitability. Vehicle electrification transitions create significant strategic uncertainty and capital expenditure requirements for our rental fleet. Heavy reliance on debt financing, variable interest rates, and asset-backed securities markets exposes us to severe liquidity constraints.

    Filed Feb 14, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.