[8-K] Verra Mobility Corporation Reports Material Event

Rhea-AI Filing Summary

Q2-25 snapshot (GENK): Revenue grew 2.2% YoY to $55.0 m; six-month sales up 7.4% to $112.4 m.

Cost inflation outpaced growth: restaurant operating costs rose 7.0% YTD and G&A 31.3%. Operating income flipped to a Q2 loss of $1.9 m (vs $1.6 m profit) and a YTD loss of $4.1 m. Net loss attributable to Class A holders was $0.3 m for the quarter and $0.6 m YTD, turning EPS to $(0.05) and $(0.11).

Balance-sheet & cash flow: Cash fell to $9.6 m from $23.7 m at 12/31/24 as $5.5 m operating cash was offset by $16.5 m capex. Current ratio is 0.44. Lease liabilities climbed to $166.3 m; interest-bearing debt totals $7.8 m ($2.9 m current) with the $20 m revolver undrawn.

Growth & other items:

• Restaurant count 50 vs 43 YE 24; six new leases signed in Q2.
• Two additional Texas units opened in July.
• Stock repurchase of 33k shares ($0.2 m) executed; RSU expense $1.5 m YTD.

Management notes continued food and labor inflation, heavy reliance on Sysco for supplies, and evaluation of 2025 U.S. tax legislation.

Positive

• Top-line growth: Q2 revenue +2.2% YoY; six-month sales +7.4%.
• Unit expansion: Restaurant count up to 50 with six additional leases signed, supporting future growth.
• Positive operating cash flow: Generated $5.5 m from operations despite margin pressures.

Negative

• Profitability deterioration: Operating income swung to a loss; EPS negative for both quarter and YTD.
• Liquidity pressure: Cash down 59% to $9.6 m; current ratio only 0.44.
• Rising overhead: G&A expenses up 31% YoY, eroding margins.
• High lease leverage: $166 m in operating lease liabilities increases fixed-cost burden.
• Vendor concentration risk: Sysco accounts for over 70% of food purchases.

Insights

Sell-Side Equity Analyst

TL;DR: Soft top-line beat overshadowed by margin erosion and cash burn; near-term valuation support limited.

Revenue growth barely exceeded inflation, while restaurant-level EBITDA compressed sharply. Cash reserves dropped 59% in six months, leaving less than two months of sales on hand. Although the $20 m revolver provides a backstop, the 0.44 current ratio and $166 m lease load constrain flexibility. Expansion pace remains ambitious, but until traffic recovers or menu pricing offsets costs, shares may struggle. I view results as mixed, leaning negative.

Restaurant Industry Risk Specialist

TL;DR: Expansion amid rising losses increases execution and liquidity risk; vendor concentration a red flag.

GENK added seven units and signed six more leases, yet operating profit turned negative. Food, labor and occupancy now consume 88% of sales, and Sysco supplies >70% of food cost—creating single-supplier risk. With $16.5 m capex already spent and another $60 m lease commitment pending, any construction delay or sales miss could squeeze liquidity. Overall impact negative, warranting cautious positioning.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): August 6, 2025

VERRA MOBILITY CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	1-37979	81-3563824
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

1150 N. Alma School Road
Mesa, Arizona
(Address of principal executive offices) 85201
(Zip Code)

(480) 443-7000

(Registrant’s telephone number, including area code)

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

(Title of each class)		(Trading symbol)		(Name of each exchange on which registered)
Class A common stock, par value $0.0001 per share		VRRM		Nasdaq Capital Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

☐ Emerging growth company

☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

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Item 2.02 Results of Operations and Financial Condition.

On August 6, 2025, Verra Mobility Corporation (the “Company”) issued a press release announcing its financial results for the quarter ended June 30, 2025. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

Item 7.01 Regulation FD Disclosure.

The Company will host a conference call and live webcast to discuss its second quarter 2025 financial results on August 6, 2025, at 5:00 p.m. Eastern time. Live and archived webcasts of the presentation will also be available on the Company’s investor relations website at ir.verramobility.com, although the Company reserves the right to discontinue that availability at any time.

On August 6, 2025, the Company posted supplemental investor materials on its investor relations website. The Company uses its investor relations website as a means of disclosing material non-public information, announcing upcoming investor conferences and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor the Company’s investor relations website in addition to following its press releases, SEC filings and public conference calls and webcasts.

The information being furnished pursuant to Item 2.02, including Exhibit 99.1, and Item 7.01 of this Current Report on Form 8-K shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and shall not be incorporated by reference into any other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit Number		Description of Exhibits
99.1		Press Release, dated August 6, 2025, issued by Verra Mobility Corporation.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: August 6, 2025	Verra Mobility Corporation
	By:	/s/ Craig Conti
	Name:	Craig Conti
	Title:	Chief Financial Officer

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FAQ

How did GENK's revenue perform in Q2 2025?

Revenue increased 2.2% year-over-year to $55.0 million.

What was GEN Restaurant Group's EPS for Q2 2025?

Class A diluted EPS was $(0.05), down from $0.06 in Q2 2024.

Why did cash decline sharply during the quarter?

Positive operating cash of $5.5 m was outweighed by $16.5 m in capital expenditures for new stores.

How many restaurants does GENK operate now?

As of June 30, 2025 GENK had 50 locations, up from 43 at year-end 2024.

What is GENK's debt situation?

Interest-bearing notes total $7.8 m with no current draws on the $20 m revolving credit line.

Is profitability expected to improve?

Management cites inflation and expansion costs as headwinds; no explicit earnings guidance was provided in the filing.