# Operating models used in the 60-slide V5 deck

Prepared September 22, 2026. These are illustrative sensitivities, not forecasts, management guidance, or measured Palantir returns. Financial inputs come from Hertz's Q2 2026 earnings release. Dollars are USD. Source IDs match the deck and source library.

## Inputs

- Average vehicles: 539,118; quarter: 91 calendar days.
- Transaction days: 38.646 million; revenue per transaction day (RPD): $61.98.
- Direct operating expense per transaction day (DOE): $37.62.
- Published available car days: 49.058 million. The utilization sensitivity uses average vehicles times calendar days (49.059738 million), a small difference from the published rounded operating statistics.
- Q2 reported utilization: 79%; monthly depreciation per unit (DPU): $302.

## Slides 14 and 17: individual operating decisions

Repair example: internal repair costs $100 and takes four lost rental days; outside repair costs $200 and takes one. At an assumed $40 of contribution per lost day, economic costs are $260 and $240 respectively. The contribution and repair inputs are invented for teaching. Demand must exist, and contribution must reflect relevant variable costs. This is not the actual repair cost from the company demonstration.

Relocation example: a $90 transfer enables three additional rental days at an assumed $40 contribution per day, creating $30 after the transfer cost. Break-even is 2.25 additional days. Incremental demand and the counterfactual at the sending location matter.

## Slide 18: utilization with a fixed fleet

One percentage point x 539,118 vehicles x 91 days x $61.98 RPD = $30,407,225.61 quarterly gross revenue. Two and three percentage points equal approximately $60.8 million and $91.2 million. This holds daily pricing and fleet size constant and assumes sufficient incremental demand. It excludes variable operating costs, implementation costs, and possible effects on rates or depreciation. It is not an EBITDA or cash-flow forecast.

## Slide 19: fleet size with fixed demand

Alternative framing: at constant rental demand, moving from 79% to 80% utilization allows fleet size to fall from 539,118 to 539,118 x 0.79 / 0.80 = 532,379.025 vehicles. The difference is 6,738.975 vehicles. At an assumed $25,000 per vehicle, the gross vehicle-capital equivalent is $168.47 million. Vehicle debt repayment, disposal costs, fleet mix, collateral, timing and seasonality determine any corporate cash benefit. This alternative must not be added to slide 18's fixed-fleet revenue benefit for the same utilization improvement.

## Slides 20 and 21: costs and implementation break-even

A $1 reduction in DOE per transaction day x 38.646 million transaction days = $38.646 million quarterly expense reduction before any offsetting costs. Illustrative annual all-in software/implementation costs of $10 million, $25 million and $50 million require $0.06469, $0.16172 and $0.32345 of savings per rental day, using four times Q2 transaction days. These cost inputs are hypothetical and are not Hertz's Palantir contract prices. Annualization does not model seasonality or changes in volume.

## Slide 24: utilization is not the objective by itself

80% utilization x $60 per day = $48 revenue per available car day. 90% x $50 = $45. These illustrative inputs show why rate, demand, fleet allocation, and cost must be evaluated together. Higher utilization alone does not establish better returns.

## Attribution

Company evidence establishes deployments and described mechanisms. The reviewed public material does not isolate audited Palantir ROI, contract price, or the incremental causal contribution to Hertz's quarterly earnings. General operations research supports decision frameworks, not a specific earnings forecast for Hertz. Do not add individual sensitivities without testing overlap and behavioral responses.