Verra Mobility Announces Fourth Quarter and Full Year 2025 Financial Results
Rhea-AI Summary
Verra Mobility (NASDAQ: VRRM) reported full year 2025 revenue of $979.1 million and net income of $136.6 million. The company generated $255.8 million net cash from operations, repurchased $133.4 million of shares in Q4, and secured a new five-year $998 million NYCDOT contract effective Jan 1, 2026.
Verra provided 2026 guidance: revenue $1,020–1,030M, Adjusted EBITDA $405–415M, Adjusted EPS $1.32–1.38, and Free Cash Flow $150–160M.
Positive
- Full year revenue +11% to $979.1M
- Net income of $136.6M for 2025
- Secured $998M five-year NYCDOT contract effective Jan 1, 2026
- Repurchased $133.4M of common stock in Q4 2025
- Net cash provided by operations of $255.8M in 2025
Negative
- Adjusted EBITDA margin declined to 42% in 2025 from 46% in 2024
- Q4 free cash flow fell to $5.7M from $21.6M due to higher capex
- Capital expenditures rose by $48.2M, reducing free cash flow
- Net leverage of 2.3x as of Dec 31, 2025
Market Reaction – VRRM
Following this news, VRRM has declined 8.12%, reflecting a notable negative market reaction. Our momentum scanner has triggered 6 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $17.19. This price movement has removed approximately $264M from the company's valuation.
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Key Figures
Market Reality Check
Peers on Argus
VRRM fell 1.95% while two momentum peers, EXLS (-2.77%) and APLD (-0.23%), also traded lower; CLVT rose 0.86%. This points to both company-specific earnings and broader sector softness.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| 2026-02-09 | Earnings call notice | Neutral | -1.7% | Announcement of date and access details for Q4 2025 earnings call. |
| 2025-10-29 | Q3 2025 results | Positive | -0.7% | Strong Q3 growth, higher guidance, NYCDOT expansion and larger buyback. |
| 2025-10-15 | Earnings call notice | Neutral | +0.4% | Scheduling of Q3 2025 earnings release and investor conference call. |
| 2025-08-06 | Q2 2025 results | Positive | -3.6% | Strong Q2 revenue, cash flow, and new share repurchase authorization. |
| 2025-07-16 | Earnings call notice | Neutral | +1.9% | Announcement of Q2 2025 earnings call timing and webcast access. |
Recent earnings-related events often saw modest negative next-day moves, even when financial results were strong, suggesting a pattern of cautious reactions around earnings updates.
Over the past year, Verra Mobility’s earnings cycle has featured consistent revenue growth and recurring contract wins, particularly with NYCDOT and international tolling partners. Prior earnings releases, such as Q2 and Q3 2025, showed higher revenue, solid Adjusted EBITDA, and active capital returns via repurchase programs, yet shares typically moved modestly negative afterward. Today’s Q4 and full-year 2025 results, plus 2026 guidance and NYCDOT contract details, extend that trajectory of growth with disciplined balance sheet management and buybacks.
Historical Comparison
In the past year, five earnings-tagged events saw an average move of -0.74%. Today’s -1.95% reaction to full-year 2025 results continues this pattern of cautious trading around earnings.
Earnings updates across Q2, Q3, and now full-year 2025 show steady revenue growth, strong cash generation, and increased buybacks, framed by recurring NYCDOT and tolling-driven expansion.
Market Pulse Summary
The stock is down -8.1% following this news. A negative reaction despite revenue of $979.1 million and net income of $136.6 million fits a pattern where prior earnings events averaged moves near -0.74%. While the company highlighted strong cash flow of $255.8 million, a lower Adjusted EBITDA margin versus 2024 and sizable capital expenditures may have weighed on sentiment. The backdrop of broader sector softness and VRRM’s position below its 200-day MA could also have amplified downside pressure.
Key Terms
adjusted ebitda financial
adjusted eps financial
free cash flow financial
non-gaap financial measures financial
revolving credit agreement financial
senior secured term loan financial
net leverage financial
rule 10b5-1 regulatory
AI-generated analysis. Not financial advice.
- Full year 2025 revenue of
$979.1 million - Full year 2025 net income of
$136.6 million - Full year 2025 net cash provided from operations of
$255.8 million - Entered into new five-year contract with the New York City Department of Transportation
- Repurchased
$133.4 million - Establishing fiscal year 2026 guidance
"We closed 2025 with strong execution and momentum across our three business segments," said David Roberts, President and CEO, Verra Mobility. "Total revenue for the fourth quarter increased 16 percent over the fourth quarter of 2024, exceeding our internal expectations while Adjusted EBITDA and Adjusted Earnings Per Share were in-line with our internal expectations. Looking ahead to 2026 and beyond, we are executing against a focused value-creation strategy designed to strengthen our core, enhance profitability and position Verra Mobility for durable long-term growth."
Fourth Quarter 2025 Financial Highlights
- Revenue: Total revenue for the fourth quarter of 2025 was
$257.9 million 16% compared to$221.5 million 14% , driven by21% growth in our Government Solutions segment and10% growth in our Commercial Services segment. Government Solutions service revenue growth was driven primarily by the New York City Department of Transportation ("NYCDOT") red-light expansion program as well as the expansion of speed, city bus lane, and school bus stop arm enforcement programs, and the growth in Commercial Services revenue was due to increases in product adoption, tolling activity, and our European operations. Parking Solutions service revenue increased by$0.3 million - Net income (loss) and Earnings Per Share ("EPS"): Net income for the fourth quarter of 2025 was
$18.9 million $0.12 $66.7 million $0.41 - Adjusted EPS*: Adjusted EPS for the fourth quarter of 2025 was
$0.30 $0.33 - Adjusted EBITDA*: Adjusted EBITDA was
$101.8 million $102.0 million 39% and46% of total revenue for the 2025 and 2024 periods, respectively. The decline in Adjusted EBITDA Margin was related to increased costs to support project implementations and NYCDOT readiness costs. - Net Cash Provided from Operations: Cash provided by operating activities decreased by approximately
$0.5 million $40.5 million $40.0 million - Free Cash Flow*: Free Cash Flow was
$5.7 million $21.6 million
*Non-GAAP measure; refer to "Non-GAAP Financial Measures" further below for explanatory notes and a reconciliation to the most directly comparable GAAP measure.
We report our results of operations based on three operating segments:
- Commercial Services offers automated toll and violations management and title and registration solutions to rental car companies, fleet management companies, and other large fleet owners.
- Government Solutions delivers automated safety solutions to states, municipalities, counties, school districts and law enforcement agencies of all sizes, including photo enforcement automated safety solutions and services to detect and process traffic violations related to speed, red-light, school bus, and city bus lane management.
- Parking Solutions provides an integrated suite of parking software, transaction processing, and hardware solutions to universities, municipalities, commercial parking operators, and health care facilities in
the United States andCanada .
Fourth Quarter 2025 Segment Detail
- The Commercial Services segment generated total revenue of
$108.1 million 10% increase compared to$98.7 million $69.1 million 7% increase from$64.6 million 64% for the fourth quarter of 2025 and65% for the fourth quarter of 2024. - The Government Solutions segment generated total revenue of
$129.2 million 25% increase compared to$103.2 million 21% increase in service revenue over the prior year period, driven by a$13.7 million $5.9 million $31.1 million $34.6 million 24% for the fourth quarter of 2025 and34% for the fourth quarter of 2024. The decline in segment profit margins compared to the prior year period was primarily driven by increased costs to support project implementations and NYCDOT readiness costs. - The Parking Solutions segment generated total revenue of
$20.6 million 5% increase compared to$19.7 million $1.6 million $2.8 million 8% for the fourth quarter of 2025 and14% for the fourth quarter of 2024.
Full Year 2025 Financial Highlights
- Revenue: Total revenue for fiscal year 2025 was
$979.1 million 11% compared to$879.2 million 9% , driven by13% growth in our Government Solutions segment and7% growth in our Commercial Services segment. Government Solutions service revenue growth was driven primarily by the NYCDOT red-light expansion program as well as the expansion of city bus lane and school bus stop arm enforcement programs, and the growth in Commercial Services revenue was due to increases in product adoption, tolling activity, and our European operations. Parking Solutions service revenue increased by$0.6 million - Net income and EPS: Net income for fiscal year 2025 was
$136.6 million $0.85 $31.4 million $0.19 - Adjusted EPS*: Adjusted EPS for fiscal year 2025 was
$1.32 $1.23 - Adjusted EBITDA*: Adjusted EBITDA was
$415.9 million $401.6 million 42% and46% of total revenue for fiscal years 2025 and 2024, respectively. - Net Cash Provided from Operations: Cash provided by operating activities increased by approximately
$32.2 million $223.6 million $255.8 million - Free Cash Flow*: Free Cash Flow was
$136.7 million $152.8 million $48.2 million $22.1 million
Liquidity and Debt: As of December 31, 2025, cash and cash equivalents were
Net Debt and Net Leverage*: As of December 31, 2025, Net Debt was
*Non-GAAP measure; refer to "Non-GAAP Financial Measures" further below for explanatory notes and a reconciliation to the most directly comparable GAAP measure.
New York City Department of Transportation Red-Light Camera Expansion and New Contract Update
Our contract with NYCDOT expired on December 31, 2025, and we entered into a new contract with NYCDOT, effective January 1, 2026, to manage
In March 2025, NYCDOT instructed us through a change order to our then-existing contract with NYCDOT to install additional red-light cameras by year-end 2025 as part of a legislatively authorized expansion. We installed 300 red-light cameras during the third and fourth quarters of 2025, which contributed approximately
Refinancing
On October 17, 2025, (i) certain of our direct and indirect wholly owned subsidiaries, including VM Consolidated, Inc. ("VM Consolidated"), entered into an Amended and Restated Revolving Credit Agreement which provides for a
Stockholder Repurchase Expansion Approval
In May 2025, our Board of Directors authorized a share repurchase program for up to an aggregate amount of
2026 Full Year Guidance
Any guidance that we provide is subject to change as a variety of factors can affect actual operating results. Certain of the factors that may impact our actual operating results are identified below in the safe harbor language included within Forward-Looking Statements of this press release.
We are providing the following forward-looking guidance, which includes Adjusted EBITDA, Adjusted EPS, and Free Cash Flow, all of which are non-GAAP financial measures (defined below).
- Total Revenue of
$1,020 million $1,030 million - Adjusted EBITDA of
$405 million $415 million - Adjusted EPS of
$1.32 $1.38 - Free Cash Flow of
$150 million $160 million
Underlying Assumptions for 2026 Full Year Guidance
- Weighted average fully diluted share count expected to be approximately 155 million shares for the full year 2026
- Effective tax rate (including state taxes) is expected to be
28.0% to29.0% , with approximately$50 million - Depreciation and amortization expense expected to be approximately
$125 million - Total interest expense, net expected to be approximately
$62 million $60 million - Change in working capital (change in operating assets and liabilities) is expected to result in a use of cash of approximately
$20 million - Capital expenditures (purchases of installation and service parts and property and equipment) are expected to be approximately
$125 million
Conference Call Details
Date: February 24, 2026
Time: 5:00 p.m. Eastern Time
To access this conference call by telephone, register here to receive dial-in numbers and a unique PIN to join the call.
Webcast Information: Available live in the "Investor Relations" section of our website at http://ir.verramobility.com.
A replay of the call will also be made available on the Investor Relations website. A copy of the earnings call presentation will be available on the Investor Relations section of our website.
About Verra Mobility
Verra Mobility Corporation (NASDAQ: VRRM) is a leading provider of smart mobility technology solutions that make transportation safer, smarter, and more connected. The company sits at the center of the mobility ecosystem, bringing together vehicles, hardware, software, data, and people to enable safe, efficient solutions for customers globally. Verra Mobility's transportation safety systems and parking management solutions protect lives, improve urban and motorway mobility, and support healthier communities. The company also solves complex payment, utilization, and compliance challenges for fleet owners and rental car companies. Headquartered in
Forward-Looking Statements
This press release contains forward-looking statements which address our expected future business and financial performance, and may contain words such as "goal," "target," "future," "estimate," "expect," "anticipate," "intend," "plan," "believe," "seek," "project," "may," "should," "will" or similar expressions. Forward-looking statements include statements regarding changes and trends in the market for our products and services, including expected operating results and metrics, such as revenue growth and expected margins; expansion plans and opportunities; expectations relating to the new contract with NYCDOT; full-year guidance for 2026, including expected total revenue, Adjusted EBITDA, Adjusted EPS, and Free Cash Flow, and the underlying assumptions for the 2026 full-year guidance, including expected weighted average fully diluted share count, effective tax rate and cash taxes, expected depreciation and amortization, expected interest expense, net and total net cash interest, expected change in working capital, expected capital expenditures, and expected operating expenditures; our ability to execute against a focused value-creation strategy designed to strengthen our core, enhance profitability, and position us for durable long-term growth for 2026 and beyond; our ability to meet our long-term outlook; the expected benefits of our smart mobility platform, including margin expansion impact; and expectations concerning our share repurchase program. Forward-looking statements involve risks and uncertainties, and a number of factors could cause actual results to differ materially from those currently anticipated. These factors include, but are not limited to, the impact of negative industry and macroeconomic conditions, including the impact of government actions and regulations, such as tariffs, trade protection measures, or a government shutdown, on our customers or Verra Mobility; customer concentration in our Commercial Services and Government Solutions segments, including risks impacting such segments such as travel demand and legislation, and the risk of losing a customer; risks related to our contract with NYCDOT, which comprises a material portion of our revenue; risks and uncertainties related to our government contracts, including legislative changes, termination rights, delays in payments, audits, and investigations; decreases in the prevalence or political acceptance of, or an increase in governmental restrictions regarding, automated and other similar methods of photo enforcement, parking solutions, or the use of tolling; our ability to successfully implement our acquisition strategy or integrate acquisitions; failures in or breaches of our networks or systems, including as a result of cyber-attacks or other incidents; risks and uncertainties related to our international operations and our ability to develop and successfully market new products and technologies into new markets; our failure to acquire necessary intellectual property or adequately protect our intellectual property; our ability to manage our substantial level of indebtedness; our ability to maintain effective internal controls over financial reporting; our ability to properly perform under our contracts and otherwise satisfy our customers; risks associated with the use of artificial intelligence and related tools; decreased interest in outsourcing from our customers; our ability to keep up with technological developments and changing customer preferences; our ability to compete in a highly competitive and rapidly evolving market; risks and uncertainties related to our share repurchase program; risks and uncertainties related to litigation and other disputes and regulatory investigations; our reliance on specialized third-party providers; and other risks and uncertainties indicated from time to time in documents we filed or will file with the Securities and Exchange Commission (the "SEC"). In addition, no assurance can be given that any plan, initiative, projection, goal, commitment, expectation, or prospect set forth in this press release can or will be achieved. This press release should be read in conjunction with the information included in our other press releases, reports, and other filings with the SEC. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in our SEC filings, including our 2025 Annual Report on Form 10-K. These forward-looking statements speak only as of the date of this release and except to the extent required by applicable law, we do not assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events and developments, or otherwise. Understanding the information contained in these filings is important in order to fully understand our reported financial results and our business outlook for future periods.
Additional Information
We periodically provide information for investors on our corporate website, www.verramobility.com, and our investor relations website, ir.verramobility.com.
We intend to use our website including our quarterly earnings presentation as a means of disclosing material non-public information, additional financial and operating metrics and for complying with disclosure obligations under Regulation FD. Accordingly, investors should monitor our website, in addition to following our press releases, SEC filings, public conference calls, webcasts, and social media. In addition, you may enroll to automatically receive e-mail alerts and other information about our company by visiting "Email Alerts" under the "Investor Resources" section of the "Investors" portion of our website.
Non-GAAP Financial Measures
In addition to disclosing financial results that are determined in accordance with
We are not providing a quantitative reconciliation of Adjusted EBITDA, Adjusted EPS, or Free Cash Flow which are included in our 2026 financial guidance above, in reliance on the "unreasonable efforts" exception for forward-looking non-GAAP measures set forth in SEC rules because certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated without unreasonable effort and expense. In this regard, we are unable to provide a reconciliation of forward-looking Adjusted EBITDA to GAAP net income, Adjusted EPS to net income per share and Free Cash Flow to net cash provided by operating activities, due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. Due to the uncertainty of estimates and assumptions used in preparing forward-looking non-GAAP measures, we caution investors that actual results could differ materially from these non-GAAP financial projections.
We use the non-GAAP metrics EBITDA, Adjusted EBITDA, Free Cash Flow, Adjusted Net Income, Adjusted EPS, and Adjusted EBITDA Margin to measure our performance from period to period, to evaluate and fund incentive compensation programs and to compare our results to those of our competitors. We use the non-GAAP metrics Free Cash Flow in connection with managing the business and we use the non-GAAP metrics "Net Debt" and "Net Leverage" to understand our overall leverage position and to evaluate capital allocation decisions. In addition, we also believe that these non-GAAP measures provide useful information to investors regarding financial and business trends related to our results of operations and that when non-GAAP financial information is viewed with GAAP financial information, investors are provided with a more meaningful understanding of our ongoing operating performance, liquidity, and leverage relative to other periods. These non-GAAP measures have certain limitations as analytical tools and should not be used as substitutes for net income (loss), cash flows from operations, earnings per share, other consolidated income, cash flow, or debt data prepared in accordance with GAAP.
EBITDA and Adjusted EBITDA
We define "EBITDA" as net income (loss) adjusted to exclude interest expense, net, income taxes, depreciation and amortization. "Adjusted EBITDA" further excludes certain non-cash expenses and non-recurring items.
Free Cash Flow
We define "Free Cash Flow" as net cash flow provided by operating activities less purchases of installation and service parts and property and equipment.
Adjusted Net Income
We define "Adjusted Net Income" as net income (loss) adjusted to exclude amortization of intangibles and certain non-cash or non-recurring expenses such as change in fair value of interest rate swap, loss on extinguishment of debt, among other items.
Adjusted EPS
We define "Adjusted EPS" as Adjusted Net Income divided by the diluted weighted average shares for the period.
Adjusted EBITDA Margin
We define "Adjusted EBITDA Margin" as Adjusted EBITDA as a percentage of total revenue.
Net Debt
We define "Net Debt" as total long-term debt, net excluding original issue discounts and unamortized deferred financing costs, less cash and cash equivalents.
Net Leverage
We define "Net Leverage" as Net Debt divided by the trailing twelve months Adjusted EBITDA as of the current quarter-end.
Additional Metrics
Recurring Revenue or Recurring Service Revenue
We define "Recurring Revenue" or "Recurring Service Revenue" as all revenue other than product sales for each of our segments, as we typically generate revenue on a recurring monthly basis under long-term contracts with our customers. This includes our Commercial Services segment where we generate service revenue through processing of tolls, violations, and titles and registrations.
VERRA MOBILITY CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | |||||||||
December 31, | |||||||||
(In thousands, except per share data) | 2025 | 2024 | |||||||
Assets | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 65,272 | $ | 77,560 | |||||
Restricted cash | 3,046 | 3,594 | |||||||
Accounts receivable (net of allowance for credit losses of | 234,288 | 206,503 | |||||||
Unbilled receivables | 56,100 | 48,193 | |||||||
Inventory | 20,662 | 15,502 | |||||||
Prepaid expenses and other current assets | 61,534 | 42,647 | |||||||
Total current assets | 440,902 | 393,999 | |||||||
Installation and service parts, net | 27,081 | 36,631 | |||||||
Property and equipment, net | 208,703 | 141,601 | |||||||
Operating lease assets | 36,359 | 29,895 | |||||||
Intangible assets, net | 168,641 | 232,297 | |||||||
Goodwill | 741,610 | 735,615 | |||||||
Other non-current assets | 22,366 | 44,451 | |||||||
Total assets | $ | 1,645,662 | $ | 1,614,489 | |||||
Liabilities and Stockholders' Equity | |||||||||
Current liabilities: | |||||||||
Accounts payable | $ | 101,813 | $ | 91,224 | |||||
Deferred revenue | 26,650 | 29,374 | |||||||
Accrued liabilities | 69,851 | 73,980 | |||||||
Tax receivable agreement liability, current portion | 5,257 | 5,163 | |||||||
Current portion of long-term debt | 6,888 | — | |||||||
Total current liabilities | 210,459 | 199,741 | |||||||
Long-term debt, net of current portion | 1,021,157 | 1,034,211 | |||||||
Operating lease liabilities, net of current portion | 31,338 | 25,757 | |||||||
Tax receivable agreement liability, net of current portion | 38,418 | 42,977 | |||||||
Asset retirement obligations | 17,789 | 15,493 | |||||||
Deferred tax liabilities, net | 16,341 | 14,699 | |||||||
Other long-term liabilities | 17,200 | 16,486 | |||||||
Total liabilities | 1,352,702 | 1,349,364 | |||||||
Commitments and contingencies | |||||||||
Stockholders' equity | |||||||||
Preferred stock, | — | — | |||||||
Common stock, | 15 | 16 | |||||||
Additional paid-in capital | 547,274 | 551,955 | |||||||
Accumulated deficit | (243,759) | (269,287) | |||||||
Accumulated other comprehensive loss | (10,570) | (17,559) | |||||||
Total stockholders' equity | 292,960 | 265,125 | |||||||
Total liabilities and stockholders' equity | $ | 1,645,662 | $ | 1,614,489 | |||||
VERRA MOBILITY CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited) | ||||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
(In thousands, except per share data) | 2025 | 2024 | 2025 | 2024 | ||||||||||||
Service revenue | $ | 239,539 | $ | 209,671 | $ | 918,137 | $ | 841,676 | ||||||||
Product sales | 18,323 | 11,829 | 60,942 | 37,531 | ||||||||||||
Total revenue | 257,862 | 221,500 | 979,079 | 879,207 | ||||||||||||
Cost of service revenue, excluding depreciation and | 11,660 | 4,664 | 30,318 | 18,988 | ||||||||||||
Cost of product sales | 15,713 | 8,303 | 45,517 | 27,058 | ||||||||||||
Operating expenses | 90,149 | 74,368 | 333,241 | 295,937 | ||||||||||||
Selling, general and administrative expenses | 67,550 | 52,622 | 215,274 | 195,054 | ||||||||||||
Depreciation, amortization and (gain) loss on disposal of | 29,764 | 27,857 | 116,315 | 109,072 | ||||||||||||
Goodwill impairment | — | 97,076 | — | 97,076 | ||||||||||||
Total costs and expenses | 214,836 | 264,890 | 740,665 | 743,185 | ||||||||||||
Income (loss) from operations | 43,026 | (43,390) | 238,414 | 136,022 | ||||||||||||
Interest expense, net | 14,989 | 16,699 | 64,618 | 73,902 | ||||||||||||
Tax receivable agreement liability adjustment | 687 | (257) | 687 | (257) | ||||||||||||
Loss on interest rate swap | — | — | — | 494 | ||||||||||||
Loss on extinguishment of debt | 1,266 | 1,117 | 1,335 | 1,745 | ||||||||||||
Other income, net | (6,798) | (5,000) | (23,208) | (18,970) | ||||||||||||
Total other expenses | 10,144 | 12,559 | 43,432 | 56,914 | ||||||||||||
Income (loss) before income taxes | 32,882 | (55,949) | 194,982 | 79,108 | ||||||||||||
Income tax provision | 14,002 | 10,707 | 58,349 | 47,660 | ||||||||||||
Net income (loss) | $ | 18,880 | $ | (66,656) | $ | 136,633 | $ | 31,448 | ||||||||
Other comprehensive income (loss): | ||||||||||||||||
Change in foreign currency translation adjustment | (734) | (10,747) | 6,989 | (7,383) | ||||||||||||
Total comprehensive income (loss) | $ | 18,146 | $ | (77,403) | $ | 143,622 | $ | 24,065 | ||||||||
Net income (loss) per share: | ||||||||||||||||
Basic | $ | 0.12 | $ | (0.41) | $ | 0.86 | $ | 0.19 | ||||||||
Diluted | $ | 0.12 | $ | (0.41) | $ | 0.85 | $ | 0.19 | ||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 157,441 | 163,342 | 159,000 | 165,090 | ||||||||||||
Diluted | 159,713 | 163,342 | 161,292 | 167,717 | ||||||||||||
VERRA MOBILITY CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | ||||||||
Three Months Ended December 31, | ||||||||
($ in thousands) | 2025 | 2024 | ||||||
Cash Flows from Operating Activities: | ||||||||
Net income (loss) | $ | 18,880 | $ | (66,656) | ||||
Adjustments to reconcile net income (loss) to net cash provided by operating | ||||||||
Depreciation and amortization | 28,901 | 27,543 | ||||||
Amortization of deferred financing costs and discounts | 589 | 669 | ||||||
Tax receivable agreement liability adjustment | 687 | (257) | ||||||
Loss on extinguishment of debt | 1,266 | 1,117 | ||||||
Gain on lease modification | (1,517) | — | ||||||
Credit loss expense | 4,609 | 1,577 | ||||||
Deferred income taxes | 14,640 | (8,328) | ||||||
Stock-based compensation | 6,480 | 4,372 | ||||||
Uncertain tax position reserve release | (762) | — | ||||||
Goodwill impairment | — | 97,076 | ||||||
Impairment of long-lived assets and right of use assets | 9,352 | 170 | ||||||
Other | 692 | 654 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (10,011) | (14,773) | ||||||
Unbilled receivables | 3,184 | 1,925 | ||||||
Inventory | (359) | 1,406 | ||||||
Prepaid expenses and other assets | (5,206) | 9,349 | ||||||
Deferred revenue | (2,690) | (170) | ||||||
Accounts payable and other current liabilities | (30,058) | (9,825) | ||||||
Other liabilities | 1,297 | (5,362) | ||||||
Net cash provided by operating activities | 39,974 | 40,487 | ||||||
Cash Flows from Investing Activities: | ||||||||
Purchases of installation and service parts and property and equipment | (34,226) | (18,847) | ||||||
Cash proceeds from the sale of assets | 90 | 158 | ||||||
Net cash used in investing activities | (34,136) | (18,689) | ||||||
Cash Flows from Financing Activities: | ||||||||
Borrowings on long-term debt | 29,791 | 36,591 | ||||||
Repayment of long-term debt | (31,513) | (41,101) | ||||||
Payment of debt issuance costs | (2,344) | (276) | ||||||
Share repurchases and retirement | (133,447) | (148,479) | ||||||
Proceeds from exercise of stock options | 33 | 1,587 | ||||||
Payment of employee tax withholding related to RSUs and PSUs vesting | (170) | (175) | ||||||
Net cash used in financing activities | (137,650) | (151,853) | ||||||
Effect of exchange rate changes on cash and cash equivalents | (169) | (2,004) | ||||||
Net decrease in cash, cash equivalents and restricted cash | (131,981) | (132,059) | ||||||
Cash, cash equivalents and restricted cash - beginning of period | 200,299 | 213,213 | ||||||
Cash, cash equivalents and restricted cash - end of period | $ | 68,318 | $ | 81,154 | ||||
VERRA MOBILITY CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | ||||||||
For the Year Ended December 31, | ||||||||
($ in thousands) | 2025 | 2024 | ||||||
Cash Flows from Operating Activities: | ||||||||
Net income | $ | 136,633 | $ | 31,448 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 114,080 | 108,525 | ||||||
Amortization of deferred financing costs and discounts | 3,445 | 4,106 | ||||||
Tax receivable agreement liability adjustment | 687 | (257) | ||||||
Change in fair value of interest rate swap | — | 1,316 | ||||||
Loss on extinguishment of debt | 1,335 | 1,745 | ||||||
Gain on lease modification | (1,517) | — | ||||||
Credit loss expense | 22,986 | 13,002 | ||||||
Deferred income taxes | 19,346 | (10,012) | ||||||
Stock-based compensation | 25,176 | 22,958 | ||||||
Uncertain tax position reserve release | (2,444) | — | ||||||
Goodwill impairment | — | 97,076 | ||||||
Impairment of long-lived assets and right of use assets | 9,352 | 170 | ||||||
Other | 2,789 | 1,403 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (49,646) | (22,664) | ||||||
Unbilled receivables | (7,257) | (11,987) | ||||||
Inventory | 3,403 | 1,917 | ||||||
Prepaid expenses and other assets | (10,350) | 5,926 | ||||||
Deferred revenue | (3,188) | 1,231 | ||||||
Accounts payable and other current liabilities | (1,773) | (16,425) | ||||||
Other liabilities | (7,255) | (5,836) | ||||||
Net cash provided by operating activities | 255,802 | 223,642 | ||||||
Cash Flows from Investing Activities: | ||||||||
Cash receipts for interest rate swap | — | 822 | ||||||
Purchases of installation and service parts and property and equipment | (119,094) | (70,856) | ||||||
Cash proceeds from the sale of assets | 305 | 314 | ||||||
Net cash used in investing activities | (118,789) | (69,720) | ||||||
Cash Flows from Financing Activities: | ||||||||
Borrowings on long-term debt | 29,791 | 36,591 | ||||||
Repayment of long-term debt | (38,277) | (45,610) | ||||||
Payment of debt issuance costs | (2,793) | (716) | ||||||
Share repurchases and retirement | (133,447) | (199,979) | ||||||
Proceeds from exercise of stock options | 1,087 | 4,288 | ||||||
Payment of employee tax withholding related to RSUs and PSUs vesting | (7,331) | (6,001) | ||||||
Net cash used in financing activities | (150,970) | (211,427) | ||||||
Effect of exchange rate changes on cash and cash equivalents | 1,121 | (1,063) | ||||||
Net decrease in cash, cash equivalents and restricted cash | (12,836) | (58,568) | ||||||
Cash, cash equivalents and restricted cash - beginning of period | 81,154 | 139,722 | ||||||
Cash, cash equivalents and restricted cash - end of period | $ | 68,318 | $ | 81,154 | ||||
VERRA MOBILITY CORPORATION RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA (Unaudited) | ||||||||||||||||
Three Months Ended December 31, | For the Year Ended December 31, | |||||||||||||||
($ in thousands) | 2025 | 2024 | 2025 | 2024 | ||||||||||||
Net income (loss) | $ | 18,880 | $ | (66,656) | $ | 136,633 | $ | 31,448 | ||||||||
Interest expense, net | 14,989 | 16,699 | 64,618 | 73,902 | ||||||||||||
Income tax provision | 14,002 | 10,707 | 58,349 | 47,660 | ||||||||||||
Depreciation and amortization | 28,901 | 27,543 | 114,080 | 108,525 | ||||||||||||
EBITDA | 76,772 | (11,707) | 373,680 | 261,535 | ||||||||||||
Transaction and other related expenses (i) | 6,340 | 1,245 | 7,444 | 5,369 | ||||||||||||
Transformation expenses (ii) | 10,256 | 1,892 | 9,123 | 4,444 | ||||||||||||
Legal accrual/settlement (iii) | — | 8,250 | (1,540) | 8,250 | ||||||||||||
Goodwill impairment (iv) | — | 97,076 | — | 97,076 | ||||||||||||
Tax receivable agreement liability adjustment | 687 | (257) | 687 | (257) | ||||||||||||
Loss on interest rate swap | — | — | — | 494 | ||||||||||||
Loss on extinguishment of debt (v) | 1,266 | 1,117 | 1,335 | 1,745 | ||||||||||||
Stock-based compensation (vi) | 6,479 | 4,372 | 25,176 | 22,958 | ||||||||||||
Adjusted EBITDA | $ | 101,800 | $ | 101,988 | $ | 415,905 | $ | 401,614 | ||||||||
Adjusted EBITDA Margin | 39 | % | 46 | % | 42 | % | 46 | % | ||||||||
(i) | Transaction and other related expenses for the periods presented primarily related to deal costs incurred for potential acquisitions and debt modification costs related to the 2024 and 2025 refinancings on our first lien term loan. |
(ii) | Transformation expenses for the 2025 periods primarily consist of expenses related to exit activities initiated during the fourth quarter in addition to a non-cash benefit in relation to a building lease for the full year. Transformation expenses for the 2024 periods consist of severance and other employee separation costs related to exit activities initiated during the period. |
(iii) | This relates to accruals and adjustments to loss contingencies for the periods presented. |
(iv) | This relates to the impairment of goodwill in our Parking Solutions segment. |
(v) | Loss on extinguishment of debt consists of the write-off of pre-existing original issue discounts and deferred financing costs associated with the refinancing of our debt. |
(vi) | Stock-based compensation represents the non-cash charge related to the issuance of awards under the Verra Mobility Corporation Amended and Restated 2018 Equity Incentive Plan. |
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW (Unaudited) | ||||||||||||||||
Three Months Ended December 31, | For the Year Ended December 31, | |||||||||||||||
($ in thousands) | 2025 | 2024 | 2025 | 2024 | ||||||||||||
Net cash provided by operating activities | $ | 39,974 | $ | 40,487 | $ | 255,802 | $ | 223,642 | ||||||||
Purchases of installation and service parts and property and equipment | (34,226) | (18,847) | (119,094) | (70,856) | ||||||||||||
Free Cash Flow (i) | $ | 5,748 | $ | 21,640 | $ | 136,708 | $ | 152,786 | ||||||||
(i) | Free Cash Flow for the year ended December 31, 2024 included an after-tax legal settlement cost of approximately |
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED NET INCOME AND CALCULATION OF ADJUSTED EPS (Unaudited) | ||||||||||||||||
Three Months Ended December 31, | For the Year Ended December 31, | |||||||||||||||
(In thousands, except per share data) | 2025 | 2024 | 2025 | 2024 | ||||||||||||
Net income (loss) | $ | 18,880 | $ | (66,656) | $ | 136,633 | $ | 31,448 | ||||||||
Amortization of intangibles | 15,640 | 16,743 | 64,359 | 67,003 | ||||||||||||
Transaction and other related expenses (i) | 6,340 | 1,245 | 7,444 | 5,369 | ||||||||||||
Transformation expenses (ii) | 10,256 | 1,892 | 9,123 | 4,444 | ||||||||||||
Legal accrual/settlement (iii) | — | 8,250 | (1,540) | 8,250 | ||||||||||||
Goodwill impairment (iv) | — | 97,076 | — | 97,076 | ||||||||||||
Tax receivable agreement liability adjustment | 687 | (257) | 687 | (257) | ||||||||||||
Loss on extinguishment of debt (v) | 1,266 | 1,117 | 1,335 | 1,745 | ||||||||||||
Change in fair value of interest rate swap | — | — | — | 1,316 | ||||||||||||
Stock-based compensation (vi) | 6,479 | 4,372 | 25,176 | 22,958 | ||||||||||||
Total adjustments before income tax effect | 40,668 | 130,438 | 106,584 | 207,904 | ||||||||||||
Income tax effect on adjustments | (11,227) | (9,751) | (30,323) | (32,802) | ||||||||||||
Total adjustments after income tax effect | 29,441 | 120,687 | 76,261 | 175,102 | ||||||||||||
Adjusted Net Income | $ | 48,321 | $ | 54,031 | $ | 212,894 | $ | 206,550 | ||||||||
Adjusted EPS | $ | 0.30 | $ | 0.33 | $ | 1.32 | $ | 1.23 | ||||||||
Diluted weighted average shares outstanding | 159,713 | 165,927 | 161,292 | 167,717 | ||||||||||||
Annual estimated effective income tax rate (vii) | 29 | % | 30 | % | 29 | % | 30 | % | ||||||||
(i) | Transaction and other related expenses for the periods presented primarily related to deal costs incurred for potential acquisitions and debt modification costs related to the 2024 and 2025 refinancings on our first lien term loan. |
(ii) | Transformation expenses for the 2025 periods primarily consist of expenses related to exit activities initiated during the fourth quarter in addition to a non-cash benefit in relation to a building lease for the full year. Transformation expenses for the 2024 periods consist of severance and other employee separation costs related to exit activities initiated during the period. |
(iii) | This relates to accruals and adjustments to loss contingencies related to legal proceedings for the periods presented. |
(iv) | This relates to the impairment of goodwill in our Parking Solutions segment. |
(v) | Loss on extinguishment of debt consists of the write-off of pre-existing original issue discounts and deferred financing costs associated with the refinancing of our debt. |
(vi) | Stock-based compensation represents the non-cash charge related to the issuance of awards under the Verra Mobility Corporation Amended and Restated 2018 Equity Incentive Plan. |
(vii) | The annual estimated effective tax rate used above excludes discrete items as they do not impact taxable income. This rate differs from the period-to-date effective tax rate used on our condensed consolidated statements of operations which includes the discrete items. |
RECONCILIATION OF TOTAL LONG-TERM DEBT, NET TO NET DEBT AND NET LEVERAGE (Unaudited) | ||||||||
($ in thousands) | December 31, | December 31, | ||||||
Total long-term debt, net | $ | 1,028,045 | $ | 1,034,211 | ||||
Original issue discounts | 2,193 | 2,322 | ||||||
Unamortized deferred financing costs | 6,844 | 9,035 | ||||||
Total long-term debt, excluding original issue discounts and | 1,037,082 | 1,045,568 | ||||||
Cash and cash equivalents | (65,272) | (77,560) | ||||||
Net Debt | $ | 971,810 | $ | 968,008 | ||||
Net Leverage | 2.3x | 2.4x | ||||||
Trailing twelve months Adjusted EBITDA (i) | 415,905 | 401,614 | ||||||
(i) | Trailing Twelve Months or "TTM" refers to the trailing four quarters and is calculated by adding the sum of the current quarter's and the prior three quarters' being measured. |
Investor Relations Contact
Mark Zindler
mark.zindler@verramobility.com
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SOURCE Verra Mobility
FAQ
What were Verra Mobility's full year 2025 results (VRRM)?
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