This quarter, we have successfully addressed our near-term debt maturity profile, executing several refinancing transactions to strengthen our financial position and extend our debt maturity ladder. On May 29, we issued $300 million of senior notes during 2031. The proceeds were used to partially redeem our senior notes during 2027, reducing that maturity from $650 million to $350 million, and providing meaningful flexibility heading to year end. On June 29, we extended the maturity of our $2 billion revolving credit facility from December 2028 to June 2031, and added a temporary $200 million facility through June 2028, or upon receipt of the Pentwater settlement proceeds, first transferring our liquidity position. Beyond this corporate debt refinancing, we also executed tactical refinances across our vehicle financing programs. In June, we issued $650 million of ASOP term ABS debt, $200 million of Canadian term ABS debt, and renewed our $580 million Canadian dollars Canadian bank facility. Similarly, the term transactions were oversubscribed and closed at the tighter spread levels than the next most recent transactions, demonstrating continued capital markets confidence in Avis Budget Group. Most significantly, we expect to receive $650 million in proceeds from the Pentwater Shortering Profit Settlement. While this settlement is contingent on core approval, making the timing of payments on we expect to receive the funds by year-end and plan to deploy a portion of the proceeds towards retiring by year-end the remaining 350 million senior notes due in 2027. Our debt profile includes several attractively priced trenches maturing the near and medium term. Rather than retire these low cost obligations early, which would not be economical given current refinancing rates, we intend to take an opportunistic approach we may refinance these lower cost branches closer to them becoming current provided we have the liquidity on our balance sheets and a clear path to refinance it in summary we're pleased with how the second quarter turned out and how our team reacted to the changing market conditions during the first half of 2026 we exceeded our adjusted bid up plan, and we enter Q3, or peak season demand, with strong operational fundamentals. As a result, we're reiterating our full-year guidance of $850 million to $1 billion in adjusted EBITDA. With that, I'll turn it back to Brian.

Thanks, Daniel. In summary, the business environment has changed, but our operating principles remain consistent. We are pleased with how our team has navigated the second quarter, and we are managing the third quarter with those implications in mind. Because we accelerated fleet dispositions in April and May, our third quarter availability will also be lower than our original plan. We expect fleet in the Americas to remain down by a similar amount year-over-year, with utilization efficiencies offsetting a portion of that impact on rental days. Given that we are in our peak demand period, we will not have the same opportunity to generate gains from incremental fleet sales that we had in the second quarter. And with the fleet remaining tight, we expect to continue prioritizing longer duration, higher value transactions over shorter rentals that may carry a higher RPD but create less attractive overall economics. As a result, we expect the third quarter to look similar to the second quarter in several respects. Lower fleet, strong utilization, disciplined transaction mix, and an RPD that is roughly flat year over year. Overall, we are entering the quarter with better operating discipline than a year ago. We have a tighter fleet, stronger utilization, and a cleaner cost base and sharper focus on returns over volume. Those are the factors that give us confidence in year-over-year adjusted EBITDA growth in the third quarter and support our full-year adjusted EBITDA guidance of $850 million to $1 billion. The environment remains dynamic and our outlook does not depend and on a broad demand recovery. We are managing the business based on the same principles we demonstrated this quarter. When the facts change, the plans have to change with them. We will stay disciplined on fleet, protect utilization, prioritize profitability and returns, and continue building a business that can deliver across different demand environments. With that, operator, we'd be happy to take questions.

Ladies and gentlemen, if you would like to ask a question, please press star 1 on your telephone keypad and a confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. And due to the interest of time, we ask that each analyst limit themselves to one question and one follow-up. Thank you. And our first question comes from the line of Chris Waronka with Deutsche Bank. please proceed.

Hey, good morning, guys. Thanks for taking the questions. So, Brian, I think I understand the rationale for cutting fleet, the demand picture clearly changed. But I guess the question is, given that you have a fairly high fixed cost structure on the operating side, is there anything you can do if this lower demand situation is going to persist? Is there anything can do to start, you know, or further attack costs on the DOE side. And then I have a follow-up. Thanks.

Hey, Chris. So from our perspective, cost discipline is foundational to everything we do. We understand the makeup of our business. And as a levered company with a lot of operating leverage around the business as well, we need to control that which we can control, which is costs. So starting from the beginning of the year, that was an area of focus for us. So from a cost basis, we think that actually is what helped contribute to our profitability growth this quarter, despite a lower revenue. We expect that to continue going forward. What I will say is that there are core operating costs, which we have really tightened our belt on. Then there are costs that flow into DOE that have to do with investments into our kind of future growth in terms of technology and new resources for our operations and improved processes. We are continuing to make those investments, and the way that we think about it is that the cost discipline around our everyday expenses is what helps fund the investments that we're making. So we think we're taking a balanced approach to this while monitoring what's happening in the overall revenue environment.

Okay. Thanks, Brian. And then shifting gears a little bit on AV. I know you guys have rolled out Dallas, but as we see some of the rideshare companies, at least one of them, you know, start to invest in AVs. Does it ever reach a point where you guys have to kind of make a decision on, you know, in terms of ownership of these and placing orders for autonomous. I mean, does it feel like that decision-making process is being sped up at all for you guys?

Hey, Chris. Sorry, before I answer your question, one thing to note. I robbed our AV operators by a month of operations. I think in the prepared remarks I said that we took over operations for Waymo in Dallas. in July we actually took over in June so we just wanted to clear that up in terms of your question about purchasing the fleet I don't think that anything is being accelerated right now in terms of having to make that decision the environment and the ecosystem is still evolving currently I think what we're trying to do right now is make sure that we develop the relationships directly with both the AV providers and the vehicle providers to give ourselves both options, whether that is kind of just managing a fleet on someone else's balance sheet or purchasing the vehicles ourselves. At this point, it's too early to make a call one way or another, but we are keeping both options open.

Okay, got it.

The next question comes from the line of John Healy with North Coast Research. Please proceed.

Thanks for taking the questions, guys. But, Brian, I wanted to ask just a little bit more about the decision to kind of realign fleet in Q2 and kind of how that plays out in Q3. You know, you made a point of calling out the 3% kind of like-for-like pricing that would have been achieved. Now that the fleet's kind of, I would assume, right-sized, do we get back to kind of a normal RPD contribution of the company in Q3 relative to, like, the market? And I guess my thought process is, is if the fleet's down and the market is still okay, like, should we expect a positive RPD development here in Q3 or investors kind of getting ahead of themselves thinking about that for the quarter?

John from our perspective listen the demand environment weakened let's say I wouldn't say that the travel demand is weak though so what we're seeing in TSA is down roughly two percent month to date in terms of in planements that's off from what we had expected but like I wouldn't I wouldn't characterize that as like a foundational weakness over here and you're seeing strength in different pockets of the travel ecosystem. But 2% decline in the TSA employments is different from our 5% decline in fleet. And we said that in the prepared remarks that you should expect kind of similar-ish decline year-over-year in fleet. So we expect to be kind of in that mid-single-digit range, which is lower than what we think the overall kind of demand environment is. Given that, the dynamics of Q3 will still kind of look like the dynamics of Q2 where fleet is constrained. So given that, we are going to prioritize longer duration rentals in the third quarter as well. We think that this is having a positive contribution to our overall EBITDA margin. And even though the headline RPD number is higher for these shorter duration one day rentals, given the fact that we are going to be fleet constrained in Q3 and we are managing towards profitability, we need to take some of these longer length rentals. So I think that the dynamics that you're seeing in Q3 will look like what they see in Q2. But overall, like I said, if we were not making these shifts in terms of length of rental mix, the overall environment is up 3% for us in terms of like for like segmentation. So overall, it does seem like a fairly stable environment. It's just a little bit of noise given the changes that we're making to our fleet mix given the supply.

Understood. That's helpful. And then just kind of one financing related question. You guys are always very active on both the fleet side and the corporate side. And I'm just trying to think about some of the moving parts for 2027.

Any way you could kind of about kind of the the headwind or tailwinds of kind of some of these financings um just kind of on the uh on the interest expense line you know both corporate and fleet um maybe hypothetically for for next year thanks hi john this is daniel uh a lot of the refinances are going to come during the medium term you know are have been put in place now quite a uh a while and they are you predominantly fixed rates so the refinancing cost is likely going to be higher than what we have you know it would depend a bit on the trench but you know 100 125 bps you know it's probably our expectation so um that's why i was mentioning prepared remarks that as those come due we're gonna potentially uh stretch a little bit how long uh we hold on hold on to them you know just to delay that transition but that's that's the new environment we operate with and I think it's not impacting us only and as I was mentioning we do think that it's playing out some extent an effect in the price environment and the two quarters of sequential RPD growth that we've had and that we had not seen in in a long time as a result of higher interest rates higher you know vehicle costs and so on.

John, I would just add that we're very well aware that the next maturity we have after paying down the 350 million is four and three quarters. And hence why we were putting the funds in the fleet for now, as Daniel was saying, and taking as long as we can to pay that piece down. So we're managing that interest as best we can. But what's foundational for us is to make sure that our debt maturity ladder does not stack up. That is something that I think is really important, and we'll make sure that we're doing things at the right time, at the right moments, at the right cost.

Okay. And just a clarification, you said that 125 BIPs would maybe be an expectation, or I wasn't sure. I wasn't clear on that.

Yeah. It depends a bit on the trash, but that's generally what we're seeing for the near term.

Understood. Thank you, guys. The next question comes from the line of Dan Levy with Barclays. Please proceed.

Great. Good morning. Thank you for taking the question. So in this environment where demand is a bit weaker and you've made the strategic move to tighten the fleet, maybe you can just talk to what your competitors are doing as well as far as operating with certain fleet levels. And maybe you could just talk to the broader competitive environment that you're seeing, especially given one of your competitors, you know, is going through some different questions on liquidity.

Yeah, let me answer some of that. I'll answer what I can at a high level. And then, Daniel, you jump in. Listen, from our perspective, I think if you had told me that international inbound travelers was going to be down 8% in the second quarter, with the World Cup happening, like, I don't think anyone planned on that. And from our perspective, given that we are