Verra Mobility Announces Third Quarter 2025 Financial Results

Rhea-AI Summary

Verra Mobility (NASDAQ: VRRM) reported Q3 2025 revenue of $261.9M, up 16% year‑over‑year, and net income of $46.8M ($0.29 per share) for the quarter ended September 30, 2025. Adjusted EBITDA was $113.3M (43% margin) and Adjusted EPS was $0.37. The company generated $77.7M in operating cash and $49.0M of free cash flow in Q3.

Key operational drivers included a NYCDOT red‑light camera expansion (130 cameras installed in Q3; ~$17M contributed in Q3; ~ $30M expected in 2025) and a Board‑approved share repurchase program increased to $250M. Full‑year 2025 revenue guidance was raised to $955M–$965M; other guidance items were reaffirmed.

Positive

• Revenue +16% to $261.9M in Q3 2025
• Net income $46.8M ($0.29 per share) for Q3 2025
• Adjusted EBITDA $113.3M in Q3 2025
• Raised 2025 revenue guidance to $955M–$965M
• Board approved $250M total share repurchase capacity

Negative

• Free Cash Flow fell to $49.0M in Q3 2025 from $85.1M prior year
• Operating cash decreased to $77.7M from $108.8M due to higher receivables
• Q3 Adjusted EBITDA margin declined to 43% versus 46% in prior year
• Company expects Adjusted EBITDA margins to decline 250–300 bps in 2026 due to NYCDOT contract and portfolio mix

Insights

Financial results analyst

Revenue and earnings improved; guidance lifted and buyback expanded, supporting a constructive near-term financial view.

Third quarter results show clear top-line momentum with total revenue of $261.9 million, a 16% year-over-year increase, and net income of $46.8 million ($0.29 per diluted share). The company increased full-year revenue guidance to $955 million–$965 million and expanded its share repurchase authorization to $250.0 million, both actions that typically support shareholder value and signal management confidence.

Operationally, Adjusted EBITDA of $113.3 million and an Adjusted EBITDA margin of 43% reflect solid earnings generation, though the margin contracted versus the prior year. Net leverage improved to 2.0x and cash on hand stands at $196.1 million, which together with the repurchase authorization provides financial flexibility. Watch quarterly cash conversion and the effect of accounts receivable on operating cash flow in the next Q4 2025.

Government contract and segment specialist

The NYCDOT contract expansion drove the quarter, materially boosting Government Solutions revenue but adding near-term implementation costs.

The Government Solutions segment delivered a 28% revenue increase to $122.6 million, with roughly $17 million attributable to installations of red-light cameras during the quarter and an expected $30 million total contribution for 2025 from the NYCDOT expansion. The company notes an estimated contract value of approximately $963 million for the initial five-year term, which underpins medium-term revenue visibility if finalized as anticipated.

Implementation readiness and project support reduced segment margins in the quarter and the company expects Adjusted EBITDA margins to compress by 250 to 300 basis points in fiscal 2026 due to portfolio mix and the new NYCDOT contract. Monitor final contract execution terms, the timing of remaining camera installations, and fourth quarter readiness costs to assess how much of the near-term margin pressure is transitory versus structural over the 12-month horizon.

• Total revenue of $261.9 million
• Net income of $46.8 million
• Net cash provided from operations of $77.7 million
• New York City Department of Transportation began expansion of the red-light program through the execution of a change order to the existing contract
• Stock repurchase approval expansion
• Revising 2025 full year guidance

MESA, Ariz., Oct. 29, 2025 /PRNewswire/ -- Verra Mobility Corporation (NASDAQ: VRRM), a leading provider of smart mobility technology solutions, announced today the financial results for the third quarter ended September 30, 2025.

"We delivered a strong third quarter with all key financial measures ahead of our internal expectations," said David Roberts, President and CEO, Verra Mobility. "Driven primarily by the New York City red-light expansion change order, the Company generated 16 percent revenue growth compared to the third quarter of 2024. Based on our strong year-to-date performance and our outlook for the fourth quarter, we are increasing Full Year 2025 revenue guidance and reaffirming all other guidance measures."

Third Quarter 2025 Financial Highlights

• Revenue: Total revenue for the third quarter of 2025 was $261.9 million, an increase of 16% compared to $225.6 million for the third quarter of 2024. Service revenue growth was 12%, driven by 19% growth in our Government Solutions segment and 7% growth from 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 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 $0.5 million compared to the third quarter of 2024, as increased revenue from our software as a service ("SaaS") product offerings and professional services revenue was offset by a decrease in subscription services revenue related to parking management solutions.
• Net income and Earnings Per Share (EPS): Net income for the third quarter of 2025 was $46.8 million, or $0.29 per share, based on 161.9 million diluted weighted average shares outstanding. Net income for the comparable 2024 period was $34.7 million, or $0.21 per share, based on 167.6 million diluted weighted average shares outstanding. The increase in net income for the third quarter of 2025 was primarily attributable to increased income from operations along with a decrease in interest expense compared to the prior year period.
• Adjusted EPS*: Adjusted EPS for the third quarter of 2025 was $0.37 per share compared to $0.32 per share for the third quarter of 2024.
• Adjusted EBITDA*: Adjusted EBITDA was $113.3 million for the third quarter of 2025 compared to $104.7 million for the same period in 2024. Adjusted EBITDA margin was 43% and 46% of total revenue for the 2025 and 2024 periods, respectively.
• Net Cash Provided from Operations: Cash provided by operating activities decreased by approximately $31.1 million from $108.8 million for the three months ended September 30, 2024 to $77.7 million for the three months ended September 30, 2025 due primarily to an increase in accounts receivable compared to the prior year period.
• Free Cash Flow*: Free Cash Flow was $49.0 million for the third quarter of 2025 compared to $85.1 million for the prior year period.

*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 municipalities, school districts, and government agencies, including services and technology that enable photo enforcement cameras 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, parking operators, healthcare facilities, and transportation hubs in the United States and Canada.

Third Quarter 2025 Segment Detail

• The Commercial Services segment generated total revenue of $117.3 million, a 7% increase compared to $109.1 million in the same period in 2024. Segment profit was $78.3 million, a 7% increase from $72.9 million in the prior year period. The increases in revenue and segment profit compared to the prior year period resulted from an increase in product adoption, tolling activity, and our European operations, partially offset by lower revenue from our fleet management company customers due to customer churn. The segment profit margin was 67% for both of the third quarters of 2025 and 2024.
• The Government Solutions segment generated total revenue of $122.6 million, a 28% increase compared to $95.9 million in the same period in 2024. The increase was due to a 19% increase in service revenue over the prior year period, primarily driven by $10.7 million increase from installation service revenue from the NYCDOT red-light expansion program as well as the expansion of bus lane and school bus stop arm enforcement programs. In addition, product revenue increased approximately $9.4 million from the prior year period; of which $6.3 million was driven by the NYCDOT red-light expansion program. The segment profit was $31.3 million in 2025 compared to $28.1 million in the prior year period with segment profit margins of 26% for 2025 and 29% for 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 $22.1 million, a 7% increase compared to $20.6 million in the same period in 2024 which was due primarily to an increase in one-time product sales compared to the prior year period. The segment profit was $3.8 million compared to $3.7 million in the prior year period with segment profit margins of 17% for 2025 and 18% for 2024.

Liquidity and Debt: As of September 30, 2025, cash and cash equivalents were $196.1 million and long-term debt net was $1,029.9 million, and we generated $77.7 million in net cash provided by operating activities for the three months ended September 30, 2025.

Net Debt and Net Leverage*: As of September 30, 2025, Net Debt was $842.7 million and Net Leverage was 2.0x, as compared to $968.0 million and 2.4x as of December 31, 2024.

*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
On March 31, 2025, NYCDOT announced that it identified the Company as the vendor to manage New York City's automated enforcement camera safety programs. The Company and NYCDOT are engaged in negotiations with respect to the contract, which is expected to have an initial term of five years with an option for the parties to extend for an additional five years. The estimated total contract value for the first five-year term is approximately $963 million, and the contract is expected to provide that NYCDOT will purchase its equipment from the Company.

In the third quarter of 2025, NYCDOT instructed us, through a change order to our existing contract, to install up to 250 red-light cameras by year-end 2025 as part of a legislatively authorized expansion. The Company installed 130 red-light cameras during the third quarter of 2025, which contributed about $17 million of revenue for the three months ended September 30, 2025, of which, approximately $6 million was product revenue and about $11 million was installation services revenue. Total expected revenue from the NYCDOT red-light camera expansion program for 2025 is approximately $30 million, of which approximately $10 million is expected to be product revenue and approximately $20 million is expected to be installation services revenue.

Stockholder Repurchase Expansion Approval
In May 2025, our Board of Directors authorized a share repurchase program for up to an aggregate amount of $100.0 million of our outstanding shares of Class A common stock, par value $0.0001 per share (the "Class A Common Stock"), over an 18-month period. On October 23, 2025, our Board of Directors authorized a $150.0 million increase to the size of the share repurchase program, authorizing share repurchases up to an aggregate $250.0 million. Under the repurchase program, we may purchase shares of Class A Common Stock until November 2026 through open market purchases, in privately negotiated transactions, or by other means, including trading plans intended to qualify under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended, and accelerated share repurchase agreements, each as permitted under applicable rules and regulations. The amount and timing of repurchases will be determined at our discretion and will depend on a variety of factors, including price, general business and market conditions, applicable legal requirements, and alternative investment opportunities. The repurchase program does not obligate us to acquire any particular amount of Class A Common Stock or at any specific time intervals and may be modified, suspended, or terminated at any time. We have not yet repurchased shares of Class A Common Stock under this repurchase program.

2025 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).

Based on our year-to-date 2025 results and our outlook for the fourth quarter, we are increasing revenue guidance as follows and reaffirming all other guidance measures

• Total Revenue of $955 million to $965 million, up from a prior range of $925 million to $935 million

The remainder of the financial guidance measures remain unchanged due to one-time readiness costs to support requirements of the new NYCDOT contract and are as follows:

• Adjusted EBITDA of $410 million to $420 million
• Adjusted EPS of $1.30 to $1.35
• Free Cash Flow of $175 million to $185 million

Underlying Assumptions for 2025 Full Year Guidance

• Weighted average fully diluted share count expected to be approximately 162 million shares for the full year 2025
• Effective tax rate (including state taxes) is expected to be 28.5% to 29.5%, with approximately $45 million in total cash taxes expected to be paid in 2025. The effective tax rate for non-GAAP adjustments is provided in the Reconciliation of Net Income to Adjusted Net Income and Calculation of Adjusted EPS
• Depreciation and amortization expense expected to be approximately $110 million for 2025
• Total interest expense, net expected to be approximately $70 million, of which approximately $65 million is expected to be net cash interest paid
• Change in working capital (change in operating assets and liabilities) is expected to result in a use of cash of approximately $15 million for 2025
• Capital expenditures (purchases of installation and service parts and property and equipment) are expected to be approximately $110 million for 2025

Long-Term Financial Outlook
We are also providing a preliminary view of our anticipated 2026 outlook in advance of providing guidance in our fourth quarter earnings call. This preliminary outlook assumes we will consummate our contract negotiations and enter into the New York renewal agreement, effective January 1, 2026. Driven primarily by the change order to our existing NYCDOT contract and red-light camera installations shifting from 2026 into 2025, we anticipate mid-single digit total consolidated revenue growth for fiscal year 2026. In addition, we expect Adjusted EBITDA margins to decline 250 to 300 basis points for fiscal year 2026 due to both portfolio mix and impacts from the new NYCDOT contract.

Please refer to slides 12 and 13 of the Verra Mobility Q3 2025 Earnings Presentation available on the Investor Relations section of our website at ir.verramobility.com for a detailed long-term outlook and assumptions underlying the new NYCDOT contract and Government Solutions segment forward-looking financial forecasts and a preliminary 2026 consolidated outlook.

Conference Call Details

Date: October 29, 2025
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 is a leading provider of smart mobility technology solutions that make transportation safer, smarter, and more connected. We sit at the center of the mobility ecosystem, bringing together vehicles, hardware, software, data, and people to enable safe, efficient solutions for customers globally. Our transportation safety systems and parking management solutions protect lives, improve urban and motorway mobility, and support healthier communities. We also solve complex payment, utilization, and compliance challenges for fleet owners and rental car companies. We are headquartered in Arizona, and operate in North America, Europe, Asia, and Australia. For more information, please visit www.verramobility.com.

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 increase in product adoption and tolling activity in our Commercial Services segment, expected growth in our Government Solutions segment, and expected growth in SaaS revenue and expected slowing product and professional services revenue in our Parking Solutions segment; expected operating results and metrics, such as revenue growth; expansion plans and opportunities; the expectations relating to the change order to the existing NYCDOT contract, the anticipated number of red-light camera installations in 2025 and the expected revenue from the change order in 2025, including expected installation service revenue and expected product revenue; expected terms of the new contract with NYCDOT including the length of the contract, the option for an extension, estimated total contract value, and expected equipment purchases by the NYCDOT; full-year guidance for 2025, including expected total revenue, Adjusted EBITDA, Adjusted EPS, and Free Cash Flow, and the underlying assumptions for the 2025 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, and expected capital expenditures; our ability to meet our long-term outlook, including anticipated revenue growth, expected decline in Adjusted EBITDA margins for fiscal 2026, and our preliminary 2026 consolidated outlook; the financial outlook for our Government Solutions segment based on the assumption of execution of the new NYCDOT contract effective January 1, 2026, including projections of Government Service revenue, Adjusted EBITDA, and NYCDOT-only revenue, and the underlying assumptions for the long-term outlook for the new NYCDOT contract and Government Solutions segment, including number and timing of camera installations, expected monthly fee, expected service revenue growth, expected total segment revenue growth, and expected margins; 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 prolonged government shutdown, on our customers or Verra Mobility; customer concentration in our Commercial Services and Government Solutions segments including risks impacting such segments, including travel demand, legislation, and the risk of losing a customer; risks related to our contract with NYCDOT which comprises a material portion of our revenue and was extended through December 31, 2025, including risks related to the ongoing contract negotiations as part of the competitive procurement process with NYCDOT, including if the contract terms and pricing are materially different from our estimates or current contract, or if the parties fail to consummate a new agreement; 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; failure 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 an effective system of internal controls; our ability to properly perform under our contracts and otherwise satisfy our customers; 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, disputes and regulatory investigations; our reliance on specialized third-party vendors and service 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 2024 Annual Report on Form 10-K and 2025 Quarterly Reports on Form 10-Q. 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, and public conference calls and webcasts.

Non-GAAP Financial Measures
In addition to disclosing financial results that are determined in accordance with U.S. generally accepted accounting principles ("GAAP"), we also disclose certain non-GAAP financial information in this press release. These financial measures are not recognized measures under GAAP and are not intended to be, and should not be, considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. EBITDA, Adjusted EBITDA, Free Cash Flow, Adjusted Net Income, Adjusted EPS, Adjusted EBITDA Margin, Net Debt, and Net Leverage are non-GAAP financial measures as defined by SEC rules. These non-GAAP financial measures may be determined or calculated differently by other companies. As a result, they may not be comparable to similarly titled performance measures presented by other companies. Reconciliations of these non-GAAP measurements to the most directly comparable GAAP financial measurements have been provided in the financial statement tables included in this press release, and investors are encouraged to review the reconciliations.

We are not providing a quantitative reconciliation of Adjusted EBITDA, Adjusted EPS or Free Cash Flow which are included in our 2025 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, 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, 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 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 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)
(In thousands, except per share data)		September 30, 2025				December 31, 2024
Assets
Current assets:
Cash and cash equivalents		$	196,096			$	77,560
Restricted cash			4,203				3,594
Accounts receivable (net of allowance for credit losses of $23.1 million and $17.0 million at September 30, 2025 and December 31, 2024, respectively)			228,756				206,503
Unbilled receivables			59,205				48,193
Inventory			21,695				15,502
Prepaid expenses and other current assets			47,873				42,647
Total current assets			557,828				393,999
Installation and service parts, net			27,590				36,631
Property and equipment, net			195,793				141,601
Operating lease assets			35,813				29,895
Intangible assets, net			185,205				232,297
Goodwill			741,450				735,615
Other non-current assets			34,662				44,451
Total assets		$	1,778,341			$	1,614,489
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable		$	122,033			$	91,224
Deferred revenue			29,299				29,374
Accrued liabilities			71,222				73,980
Tax receivable agreement liability, current portion			5,340				5,163
Total current liabilities			227,894				199,741
Long-term debt, net			1,029,938				1,034,211
Operating lease liabilities, net of current portion			29,987				25,757
Tax receivable agreement liability, net of current portion			37,800				42,977
Asset retirement obligations			17,453				15,493
Deferred tax liabilities, net			14,081				14,699
Other long-term liabilities			18,040				16,486
Total liabilities			1,375,193				1,349,364
Commitments and contingencies
Stockholders' equity
Preferred stock, $0.0001 par value			—				—
Common stock, $0.0001 par value			16				16
Additional paid-in capital			562,172				551,955
Accumulated deficit			(149,204)				(269,287)
Accumulated other comprehensive loss			(9,836)				(17,559)
Total stockholders' equity			403,148				265,125
Total liabilities and stockholders' equity		$	1,778,341			$	1,614,489

 

VERRA MOBILITY CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited)
		Three Months Ended September 30,								Nine Months Ended September 30,
(In thousands, except per share data)		2025				2024				2025				2024
Service revenue		$	243,219			$	217,267			$	678,598			$	632,005
Product sales			18,719				8,284				42,619				25,702
Total revenue			261,938				225,551				721,217				657,707
Cost of service revenue, excluding depreciation and amortization			9,246				5,378				18,658				14,324
Cost of product sales			12,826				5,621				29,804				18,755
Operating expenses			88,036				76,026				243,092				221,569
Selling, general and administrative expenses			47,757				47,918				147,724				142,432
Depreciation, amortization and (gain) loss on disposal of assets, net			29,264				26,718				86,551				81,215
Total costs and expenses			187,129				161,661				525,829				478,295
Income from operations			74,809				63,890				195,388				179,412
Interest expense, net			16,421				18,723				49,629				57,203
Loss on interest rate swap			—				913				—				494
Loss on extinguishment of debt			21				33				69				628
Other income, net			(6,298)				(4,272)				(16,410)				(13,970)
Total other expenses			10,144				15,397				33,288				44,355
Income before income taxes			64,665				48,493				162,100				135,057
Income tax provision			17,826				13,761				44,347				36,953
Net income		$	46,839			$	34,732			$	117,753			$	98,104
Other comprehensive (loss) income:
Change in foreign currency translation adjustment			(790)				5,190				7,723				3,364
Total comprehensive income		$	46,049			$	39,922			$	125,476			$	101,468
Net income per share:
Basic		$	0.29			$	0.21			$	0.74			$	0.59
Diluted		$	0.29			$	0.21			$	0.73			$	0.58
Weighted average shares outstanding:
Basic			159,552				164,735				159,525				165,676
Diluted			161,861				167,624				161,824				168,318

 

VERRA MOBILITY CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
		Three Months Ended September 30,
($ in thousands)		2025				2024
Cash Flows from Operating Activities:
Net income		$	46,839			$	34,732
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			28,534				26,631
Amortization of deferred financing costs and discounts			953				1,043
Change in fair value of interest rate swap			—				1,169
Loss on extinguishment of debt			21				33
Credit loss expense			4,521				2,119
Deferred income taxes			9,173				(985)
Stock-based compensation			4,961				6,438
Other			870				284
Changes in operating assets and liabilities:
Accounts receivable			(15,961)				14,077
Unbilled receivables			(7,731)				(6,681)
Inventory			3,580				(142)
Prepaid expenses and other assets			(11,119)				769
Deferred revenue			(442)				3,609
Accounts payable and other current liabilities			20,385				24,570
Other liabilities			(6,869)				1,121
Net cash provided by operating activities			77,715				108,787
Cash Flows from Investing Activities:
Cash receipts for interest rate swap			—				256
Purchases of installation and service parts and property and equipment			(28,750)				(23,676)
Cash proceeds from the sale of assets			116				66
Net cash used in investing activities			(28,634)				(23,354)
Cash Flows from Financing Activities:
Repayment of long-term debt			(2,255)				—
Payment of debt issuance costs			(187)				(216)
Proceeds from the exercise of stock options			213				1,727
Payment of employee tax withholding related to RSUs and PSUs vesting			(171)				(168)
Net cash (used in) provided by financing activities			(2,400)				1,343
Effect of exchange rate changes on cash and cash equivalents			(307)				1,039
Net increase in cash, cash equivalents and restricted cash			46,374				87,815
Cash, cash equivalents and restricted cash - beginning of period			153,925				125,398
Cash, cash equivalents and restricted cash - end of period		$	200,299			$	213,213

 

VERRA MOBILITY CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
		Nine Months Ended September 30,
($ in thousands)		2025				2024
Cash Flows from Operating Activities:
Net income		$	117,753			$	98,104
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			85,179				80,982
Amortization of deferred financing costs and discounts			2,856				3,437
Change in fair value of interest rate swap			—				1,316
Loss on extinguishment of debt			69				628
Credit loss expense			18,377				11,425
Deferred income taxes			4,706				(1,684)
Stock-based compensation			18,696				18,586
UTP reserve release			(1,682)				—
Other			2,097				749
Changes in operating assets and liabilities:
Accounts receivable			(39,635)				(7,891)
Unbilled receivables			(10,441)				(13,912)
Inventory			3,762				511
Prepaid expenses and other assets			(5,144)				(3,423)
Deferred revenue			(498)				1,401
Accounts payable and other current liabilities			28,285				(6,600)
Other liabilities			(8,552)				(474)
Net cash provided by operating activities			215,828				183,155
Cash Flows from Investing Activities:
Cash receipts for interest rate swap			—				822
Purchases of installation and service parts and property and equipment			(84,868)				(52,009)
Cash proceeds from the sale of assets			215				156
Net cash used in investing activities			(84,653)				(51,031)
Cash Flows from Financing Activities:
Repayment of long-term debt			(6,764)				(4,509)
Payment of debt issuance costs			(449)				(440)
Share repurchases and retirement			—				(51,500)
Proceeds from the exercise of stock options			1,054				2,701
Payment of employee tax withholding related to RSUs and PSUs vesting			(7,161)				(5,826)
Net cash used in financing activities			(13,320)				(59,574)
Effect of exchange rate changes on cash and cash equivalents			1,290				941
Net increase in cash, cash equivalents and restricted cash			119,145				73,491
Cash, cash equivalents and restricted cash - beginning of period			81,154				139,722
Cash, cash equivalents and restricted cash - end of period		$	200,299			$	213,213

 

VERRA MOBILITY CORPORATION   RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA (Unaudited)
		Three Months Ended September 30,								Nine Months Ended September 30,
($ in thousands)		2025				2024				2025				2024
Net income		$	46,839			$	34,732			$	117,753			$	98,104
Interest expense, net			16,421				18,723				49,629				57,203
Income tax provision			17,826				13,761				44,347				36,953
Depreciation and amortization			28,534				26,631				85,179				80,982
EBITDA			109,620				93,847				296,908				273,242
Transaction and other related expenses (i)			—				2,483				1,093				4,124
Transformation expenses (ii)			283				983				(1,120)				2,552
Legal accrual/settlement (iii)			(1,540)				—				(1,540)				—
Loss on interest rate swap			—				913				—				494
Loss on extinguishment of debt			21				33				69				628
Stock-based compensation (iv)			4,961				6,438				18,696				18,586
Adjusted EBITDA		$	113,345			$	104,697			$	314,106			$	299,626
Adjusted EBITDA Margin			43	%			46	%			44	%			46	%
Revenue			261,938				225,551				721,217				657,707

(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 refinancing on our first lien term loan.
(ii)	Transformation expenses for the 2025 year to date period represents a non-cash benefit in relation to a building lease. 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 adjustments to loss contingencies for the period.
(iv)	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 September 30,								Nine Months Ended September 30,
($ in thousands)		2025				2024				2025				2024
Net cash provided by operating activities		$	77,715			$	108,787			$	215,828			$	183,155
Purchases of installation and service parts and property and equipment			(28,750)				(23,676)				(84,868)				(52,009)
Free Cash Flow		$	48,965			$	85,111			$	130,960			$	131,146

 

RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME AND CALCULATION OF ADJUSTED EPS (Unaudited)
		Three Months Ended September 30,								Nine Months Ended September 30,
(In thousands, except per share data)		2025				2024				2025				2024
Net income		$	46,839			$	34,732			$	117,753			$	98,104
Amortization of intangibles			15,645				16,774				48,719				50,260
Transaction and other related expenses (i)			—				2,483				1,093				4,124
Transformation expenses (ii)			283				983				(1,120)				2,552
Legal accrual/settlement (iii)			(1,540)				—				(1,540)				—
Change in fair value of interest rate swap			—				1,169				—				1,316
Loss on extinguishment of debt			21				33				69				628
Stock-based compensation (iv)			4,961				6,438				18,696				18,586
Total adjustments before income tax effect			19,370				27,880				65,917				77,466
Income tax effect on adjustments			(5,611)				(8,354)				(19,096)				(23,051)
Total adjustments after income tax effect			13,759				19,526				46,821				54,415
Adjusted Net Income		$	60,598			$	54,258			$	164,574			$	152,519
Adjusted EPS		$	0.37			$	0.32			$	1.02			$	0.91
Diluted weighted average shares outstanding			161,861				167,624				161,824				168,318
Annual estimated effective income tax rate (v)			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 refinancing on our first lien term loan.
(ii)	Transformation expenses for the 2025 year to date period represents a non-cash benefit in relation to a building lease. 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 adjustments to loss contingencies for the period
(iv)	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.
(v)	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)		September 30, 2025				December 31, 2024
Total long-term debt, net		$	1,029,938			$	1,034,211
Original issue discounts			1,759				2,322
Unamortized deferred financing costs			7,107				9,035
Total long-term debt, excluding original issue discounts and unamortized deferred financing costs			1,038,804				1,045,568
Cash and cash equivalents			(196,096)				(77,560)
Net Debt		$	842,708			$	968,008
Net Leverage		2.0x				2.4x
Trailing twelve months adjusted EBITDA (i)			416,094				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.

 

QUARTERLY RESULTS AND RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA (Unaudited)
($ in millions)	Q1 2024			Q2 2024			Q3 2024			Q4 2024			TTM 2024			Q1 2025			Q2 2025			Q3 2025			TTM 2025
Net income (loss)	$	29.1		$	34.2		$	34.7		$	(66.7)		$	31.4		$	32.3		$	38.6		$	46.8		$	51.0
Interest expense, net		19.6			18.8			18.7			16.7			73.9			16.6			16.6			16.4			66.3
Income tax provision		9.9			13.4			13.8			10.8			47.7			12.5			14.0			17.8			55.1
Depreciation and amortization		26.9			27.5			26.6			27.5			108.5			27.6			29.1			28.6			112.8
EBITDA		85.5			93.9			93.8			(11.7)			261.5			89.0			98.3			109.6			285.2
Transaction and other related expenses (i)		1.5			0.1			2.5			1.2			5.4			—			1.1			—			2.3
Transformation expenses (ii)		—			1.6			1.0			1.9			4.4			—			(1.4)			0.2			0.7
Legal accrual (iii)		—			—			—			8.3			8.3			—			—			(1.5)			6.8
Loss on extinguishment of debt		0.6			—			—			1.1			1.7			—			—			—			1.1
Goodwill impairment (iv)		—			—			—			97.1			97.1			—			—			—			97.1
(Gain) loss on interest rate swap		(0.4)			—			0.9			—			0.5			—			—			—			—
Tax receivable agreement liability adjustment		—			—			—			(0.3)			(0.3)			—			—			—			(0.3)
Stock-based compensation (v)		5.6			6.6			6.5			4.4			23.0			6.4			7.3			5.0			23.1
Adjusted EBITDA	$	92.8		$	102.2		$	104.7		$	102.0		$	401.6		$	95.4		$	105.3		$	113.3		$	416.0

(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 refinancing on our first lien term loan.
(ii)	Transformation expenses for the 2025 period represent a non-cash benefit in relation to a building lease. 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 adjustments to loss contingencies during fiscal year 2025 and accruals for estimated loss contingencies during fiscal year 2024.
(iv)	This relates to the impairment of goodwill in our Parking Solutions segment during the fourth quarter of fiscal year 2024.
(v)	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.

Investor Relations Contact
Mark Zindler
mark.zindler@verramobility.com

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SOURCE Verra Mobility

FAQ

What were Verra Mobility (VRRM) Q3 2025 revenue and net income?

Verra reported $261.9M in revenue and $46.8M net income for Q3 2025.

Why did Verra Mobility raise its 2025 revenue guidance on October 29, 2025?

Management raised revenue guidance to $955M–$965M driven primarily by NYCDOT red‑light program expansion and stronger year‑to‑date results.

How much did the NYCDOT red‑light expansion contribute to Verra's Q3 2025 results?

NYCDOT installations in Q3 2025 contributed about $17M of revenue and the company expects ~$30M total from the program in 2025.

What is Verra Mobility's updated share repurchase authorization as of October 23, 2025?

The Board expanded the repurchase program to authorize up to $250M of Class A common stock through November 2026.

How did Verra's cash flow metrics change in Q3 2025 versus Q3 2024?

Net cash from operations fell to $77.7M from $108.8M, and Free Cash Flow declined to $49.0M from $85.1M, driven largely by higher accounts receivable.

What guidance did Verra Mobility give about 2026 margins on October 29, 2025?

The company expects consolidated revenue to grow mid‑single digits in 2026 and Adjusted EBITDA margins to decline by 250–300 basis points due to portfolio mix and the NYCDOT contract.