US Market News
1週前
Verra Mobility Receives Termination of Agreement Notice From Avis Budget GroupMay 26, 2026 4:05 PM
PR Newswire (US) Taking immediate actions to reduce costs, adapt operations, and position the business for continued growth and future opportunitiesProvides revised 2026 full-year outlookMESA, Ariz., May 26, 2026 /PRNewswire/ -- Verra Mobility Corporation (NASDAQ: VRRM), a leading provider of smart mobility technology solutions, announced today that it received a termination notice from Avis Budget Group regarding its contract with Verra Mobility, effective September 2026. Verra Mobility is taking steps to reduce costs and re-allocate certain resources associated with the customer to other customers. "We were surprised and disappointed to receive this notice from Avis Budget Group given our longstanding partnership and the significant time invested by both parties in ongoing extension negotiations," said David Roberts, President and CEO of Verra Mobility. "We are now moving decisively to reduce costs, adapt our operations, and position the business for continued growth and future opportunities."Mr. Roberts continued, "We are proud of the value our Commercial Services platform delivers by simplifying complex operational processes for fleet operators and enabling customers to focus on their core business. We remain confident in the strength of our platform, our ability to continue innovating, and our capacity to meet customers' evolving needs while mitigating the impact of this development."Verra Mobility intends to protect its contractual rights, intellectual property, and business interests. Accordingly, the company is reviewing matters related to the parties' negotiations, the handling of confidential information, and the parties' respective rights and obligations under their agreements.Revised 2026 Full-Year Guidance Based on the Company's year-to-date 2026 results and outlook for the remainder of the year including the aforementioned termination notice, Verra Mobility is revising its 2026 full-year financial outlook to the following:Total Revenue of $985 million to $995 millionAdjusted EBITDA of $380 million to $385 millionAdjusted EPS of $1.19 to $1.25Free Cash Flow of $140 million to $150 millionUnderlying Assumptions for 2026 Full-Year GuidanceWeighted average fully diluted share count expected to be approximately 155 million shares for the full-year 2026Effective tax rate (including state taxes) is expected to be 28.0% to 29.0%, with approximately $50 million in total cash taxes expected to be paid in 2026. 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 in our most recent earnings press release dated May 6, 2026.Depreciation and amortization expense expected to be approximately $125 million for 2026Total interest expense, net expected to be approximately $62 million, of which approximately $60 million is expected to be net cash interest paidChange in working capital (change in operating assets and liabilities) is expected to be zero for 2026Capital expenditures (purchases of installation and service parts and property and equipment) are expected to be approximately $125 million for 2026 relating primarily to camera installations and MOSAIC implementation.The Company currently expects the termination to reduce Commercial Services' 2026 annualized revenue by approximately $135 million to $145 million and 2026 annualized segment profit by approximately $120 million to $125 million, before taking into account expected cost reduction initiatives.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 Arizona, Verra Mobility operates in the United States, Australia, Europe, and Canada. For more information, please visit www.verramobility.com.Forward-Looking StatementsThis 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 expected operating results and metrics, such as revenue growth and expected margins; expectations regarding the impact of the termination by Avis Budget on our business and financial outlook, including the expected reduction in Commercial Services' 2026 annualized revenue and 2026 annualized segment profit; our ability to reduce costs and minimize the impact of the Avis Budget termination; our ability to expand our customer base, meet the evolving needs of our customers; expectations regarding our long-term renewals with other significant Commercial Services customers; 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 expenses, expected interest expense, net and total net cash interest, expected change in working capital, expected capital expenditures, and expected operating expenditures; and our ability to meet our long-term outlook. 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, military conflicts, 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, including the timing of payments; risks associated with the termination of the Avis Budget agreement and the renewal of other Commercial Services customer agreements; 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 and first quarter 2026 Quarterly Report on Form 10-Q. These forward-looking statements speak only as of the date of this press 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 MeasuresWe disclose certain forward-looking financial measures in this press release that are not determined in accordance with U.S. generally accepted accounting principles ("GAAP"). These non-GAAP 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, financial information prepared in accordance with GAAP. Adjusted EBITDA, Free Cash Flow, and Adjusted EPS are non-GAAP financial measures as defined by the 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. We are not providing a quantitative reconciliation of Adjusted EBITDA, Adjusted EPS or Free Cash Flow which are included in our revised 2026 full-year 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 non-GAAP financial measures to measure our performance from period to period, to evaluate and fund incentive compensation programs, to manage the business and to compare our results to those of our competitors. In addition, we also believe that the non-GAAP measures we disclose 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. Non-GAAP measures have certain limitations as analytical tools and should not be used as substitutes for financial information prepared in accordance with GAAP.Investor Relations Contact
Mark Zindler
mark.zindler@verramobility.com View original content to download multimedia:https://www.prnewswire.com/news-releases/verra-mobility-receives-termination-of-agreement-notice-from-avis-budget-group-302782197.htmlSOURCE Verra Mobility Original: Verra Mobility Receives Termination of Agreement Notice From Avis Budget Group
US Market News
4週前
Verra Mobility Announces First Quarter 2026 Financial ResultsMay 6, 2026 4:05 PM
PR Newswire (US) Total revenue of $223.6 millionNet income of $26.7 millionNet cash provided from operations of $40.8 millionReaffirming fiscal year 2026 guidanceMESA, Ariz., May 6, 2026 /PRNewswire/ -- Verra Mobility Corporation (NASDAQ: VRRM), a leading provider of smart mobility technology solutions, announced today the financial results for the first quarter ended March 31, 2026. "We are pleased with our first quarter performance, which reflects a solid start to 2026. We delivered top-line results in line with expectations, with upside in profitability, while continuing to build momentum across our key growth areas," said David Roberts, President and CEO, Verra Mobility. "We also saw strong bookings in Government Solutions, reinforcing the long-term value and visibility of that segment. As we look ahead, we are well-positioned for continued growth, supported by a robust pipeline and disciplined execution."First Quarter 2026 Financial HighlightsRevenue: Total revenue for the first quarter of 2026 was $223.6 million, an increase of 0.1% compared to $223.3 million for the first quarter of 2025. Service revenue growth was 1%, driven by 4% growth in our Government Solutions segment mostly offset by a 4% decrease from our Commercial Services segment. Government Solutions service revenue growth was driven primarily by $7.5 million in revenue from expansions in speed, red light and bus lane programs outside of the New York City Department of Transportation ("NYCDOT") contract, partially offset by a $3.4 million decrease in revenue primarily driven by the pricing change, net of installation revenue from new camera installations under the new NYCDOT contract. The decline in Commercial Services revenue was due to lower revenue from our fleet management company ("FMC") customers due to prior period customer churn. Parking Solutions service revenue increased by $1.0 million compared to the first quarter of 2025, 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 Diluted Earnings Per Share ("EPS"): Net income for the first quarter of 2026 was $26.7 million, or $0.17 per share, based on 153.7 million diluted weighted average shares outstanding. Net income for the comparable 2025 period was $32.3 million, or $0.20 per share, based on 162.1 million diluted weighted average shares outstanding. The decrease in net income for the first quarter of 2026 was primarily attributable to an increase in operating expenses, decrease in product sales, partially offset by a legal settlement finalized in February 2026, in which the company received ordinary shares of a publicly traded company based in Australia.Adjusted EPS*: Adjusted EPS for the first quarter of 2026 was $0.25 per share compared to $0.30 per share for the first quarter of 2025.Adjusted EBITDA*: Adjusted EBITDA was $86.0 million for the first quarter of 2026 compared to $95.4 million for the same period in 2025. Adjusted EBITDA Margin* was 38% and 43% of total revenue for the 2026 and 2025 periods, respectively.Net Cash Provided from Operations: Cash provided by operating activities decreased by $22.2 million from $63.0 million for the three months ended March 31, 2025 to $40.8 million for the three months ended March 31, 2026. Net income year-over-year decreased by $5.6 million, from $32.3 million in 2025 to $26.7 million in 2026. The aggregate adjustments to reconcile net income to net cash provided by operating activities decreased $7.6 million mainly due to the share-based proceeds acquired from a legal settlement finalized in February 2026, and a decrease in credit loss expense, partially offset by an increase in deferred income taxes and the mark-to-market adjustment on the share-based proceeds. The aggregate changes in operating assets and liabilities decreased by $9.0 million in 2026 compared to the prior year were primarily due to an increase in the net use of working capital, of which the majority was attributable to an increase in unbilled receivables and inventory and a decrease in accrued liabilities, partially offset by a decrease in net accounts receivable and prepaid assets.Free Cash Flow*: Free Cash Flow was $9.6 million for the first quarter of 2026 compared to $41.7 million for the prior year period. The decline in Free Cash Flow is attributable to the items impacting cash provided by operating activities (as discussed above) and increased capital expenditures in the Government Solutions segment.*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.First Quarter 2026 Segment DetailThe Commercial Services segment generated total revenue of $97.8 million, a 4% decrease compared to $101.4 million in the same period in 2025. Segment profit was $61.8 million, a 2% decrease from $63.1 million in the prior year period. The decreases in revenue and segment profit compared to the prior year period resulted from lower revenue generated from our FMC customers due to prior period customer churn. The segment profit margin was 63% for the first quarter of 2026 and 62% for the first quarter of 2025. First quarter 2026 segment profit margins benefitted from lower credit loss expense.The Government Solutions segment generated total revenue of $105.3 million, a 3% increase compared to $101.8 million in the same period in 2025. The increase was due to a 4% increase in service revenue over the prior year period, primarily driven by $7.5 million in revenue from expansions in speed, red light, and bus lane programs outside of NYCDOT, partially offset by a $3.4 million decrease in revenue primarily driven by the pricing change, net of installation revenue from new camera installations under the new NYCDOT contract. In addition, product revenue decreased approximately $0.6 million from the prior year period. The segment profit was $20.8 million in 2026 compared to $29.4 million in the prior year period with segment profit margins of 20% for 2026 and 29% for 2025. The decline in segment profit margins compared to the prior year period was primarily driven by increased costs to support project implementations and the pricing change under the new NYCDOT contract.The Parking Solutions segment generated total revenue of $20.4 million, a 2% increase compared to $20.0 million in the same period in 2025 which was due primarily to an increase in SaaS product offerings and professional services, partially offset by a decrease in subscription services related to parking management solutions compared to the prior year period. The segment profit was $3.4 million compared to $2.9 million in the prior year period with segment profit margins of 17% for 2026 and 15% for 2025.Liquidity and Debt: As of March 31, 2026, cash and cash equivalents were $46.9 million and total debt, net was $1,056 million, and we generated $40.8 million in net cash provided by operating activities for the three months ended March 31, 2026.Net Debt and Net Leverage*: As of March 31, 2026, Net Debt was $1,017 million and Net Leverage was 2.5x, as compared to $971.8 million and 2.3x as of December 31, 2025.*Non-GAAP measure; refer to "Non-GAAP Financial Measures" further below for explanatory notes and a reconciliation to the most directly comparable GAAP measure.Share RepurchasesDuring the first quarter of fiscal year 2026, we paid $50.2 million to repurchase 2,215,800 shares of our Class A common stock through open market transactions, which shares we subsequently retired. As of March 31, 2026, $66.3 million remained available under our share repurchase authorization.2026 Full Year GuidanceAny 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 first quarter 2026 results and our outlook for the remainder of the year, we are reaffirming 2026 full year guidance for all financial measures.Total Revenue of $1,020 million to $1,030 millionAdjusted EBITDA of $405 million to $415 millionAdjusted EPS of $1.32 to $1.38Free Cash Flow of $150 million to $160 millionUnderlying Assumptions for 2026 Full Year GuidanceWeighted average fully diluted share count expected to be approximately 155 million shares for the full year 2026Effective tax rate (including state taxes) is expected to be 28.0% to 29.0%, with approximately $50 million in total cash taxes expected to be paid in 2026. The effective tax rate for non-GAAP adjustments is provided in the Reconciliation of Net Income to Adjusted Net Income and Calculation of Adjusted EPSDepreciation and amortization expense expected to be approximately $125 million for 2026Total interest expense, net expected to be approximately $62 million, of which approximately $60 million is expected to be net cash interest paidChange in working capital (change in operating assets and liabilities) is expected to result in a use of cash of approximately $20 million for 2026Capital expenditures (purchases of installation and service parts and property and equipment) are expected to be approximately $125 million for 2026 relating primarily to camera installations and MOSAIC implementationSuccessful outcome of ongoing renewal agreement negotiations with one of our significant Commercial Services customersConference Call DetailsDate: May 6, 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 MobilityVerra 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 Arizona, Verra Mobility operates in the United States, Australia, Europe, and Canada. For more information, please visit www.verramobility.com.Forward-Looking StatementsThis 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 contract with NYCDOT; expectations regarding the outcome of negotiations for long-term renewals with our significant Commercial Services customers; our ability to improve operational efficiencies and generate cost savings; our ability to achieve expected benefits from transformation and strategic initiatives; 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 expenses, expected interest expense, net and total net cash interest, expected change in working capital, expected capital expenditures, and expected operating expenditures; expectations relating to momentum across key growth areas, including bookings in the Government Solutions segment, and our pipeline; 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, military conflicts, 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 associated with the renewal of Commercial Services customer agreements, including risks related to the ongoing renewal negotiations with one of our significant Commercial Services customers; 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 and first quarter 2026 Quarterly Report on Form 10-Q. These forward-looking statements speak only as of the date of this press 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 InformationWe 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 MeasuresIn 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 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, 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 FlowWe 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 IncomeWe define "Adjusted Net Income" as net income adjusted to exclude amortization of intangibles and certain non-cash or non-recurring expenses such as loss on extinguishment of debt, among other items.Adjusted EPSWe define "Adjusted EPS" as Adjusted Net Income divided by the diluted weighted average shares for the period.Adjusted EBITDA MarginWe define "Adjusted EBITDA Margin" as Adjusted EBITDA as a percentage of total revenue.Net DebtWe define "Net Debt" as total debt, net excluding original issue discounts and unamortized deferred financing costs, less cash and cash equivalents.Net LeverageWe define "Net Leverage" as Net Debt divided by the trailing twelve months Adjusted EBITDA as of the current quarter-end.Additional MetricsRecurring Revenue or Recurring Service RevenueWe 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)
March31,
2026
December31,
2025
Assets
Current assets:
Cash and cash equivalents
$46,894
$65,272
Restricted cash
3,212
3,046
Accounts receivable (net of allowance for credit losses of $20.0 million and
$23.0 million at March 31, 2026 and December 31, 2025, respectively)
221,865
234,288
Unbilled receivables
82,687
56,100
Inventory
27,642
20,662
Prepaid expenses and other current assets
56,568
61,534
Total current assets
438,868
440,902
Installation and service parts, net
31,584
27,081
Property and equipment, net
225,879
208,703
Operating lease assets
43,777
36,359
Intangible assets, net
153,366
168,641
Goodwill
741,172
741,610
Other non-current assets
21,352
22,366
Total assets
$1,655,998
$1,645,662
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
$114,258
$101,813
Deferred revenue
24,428
26,650
Accrued liabilities
53,868
69,851
Tax receivable agreement liability, current portion
5,257
5,257
Current portion of debt
34,130
6,888
Total current liabilities
231,941
210,459
Debt, net of current portion
1,021,487
1,021,157
Operating lease liabilities, net of current portion
39,484
31,338
Tax receivable agreement liability, net of current portion
38,418
38,418
Asset retirement obligations
18,581
17,789
Deferred tax liabilities, net
15,883
16,341
Other long-term liabilities
18,204
17,200
Total liabilities
1,383,998
1,352,702
Commitments and contingencies
Stockholders' equity
Preferred stock, $0.0001 par value
—
—
Class A common stock, $0.0001 par value
15
15
Additional paid-in capital
541,507
547,274
Accumulated deficit
(259,946)
(243,759)
Accumulated other comprehensive loss
(9,576)
(10,570)
Total stockholders' equity
272,000
292,960
Total liabilities and stockholders' equity
$1,655,998
$1,645,662
VERRA MOBILITY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME
(Unaudited)
Three Months Ended March31,
(In thousands, except per share data)
2026
2025
Service revenue
$213,392
$211,902
Product sales
10,176
11,352
Total revenue
223,568
223,254
Cost of service revenue, excluding depreciation and amortization
7,391
4,783
Cost of product sales
8,290
8,032
Operating expenses
85,943
73,739
Selling, general and administrative expenses
40,853
51,501
Depreciation, amortization and (gain) loss on disposal of assets, net
29,291
27,814
Total costs and expenses
171,768
165,869
Income from operations
51,800
57,385
Interest expense, net
15,407
16,636
Loss on extinguishment of debt
—
25
Other income, net
(4,094)
(4,109)
Total other expenses
11,313
12,552
Income before income taxes
40,487
44,833
Income tax provision
13,743
12,494
Net income
$26,744
$32,339
Other comprehensive income:
Change in foreign currency translation adjustment
994
2,127
Total comprehensive income
$27,738
$34,466
Net income per share:
Basic
$0.18
$0.20
Diluted
$0.17
$0.20
Weighted average shares outstanding:
Basic
151,847
159,544
Diluted
153,689
162,066
VERRA MOBILITY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended March31,
($ in thousands)
2026
2025
Cash Flows from Operating Activities:
Net income
$26,744
$32,339
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
29,225
27,490
Amortization of deferred financing costs and discounts
563
932
Loss on extinguishment of debt
—
25
Share-based proceeds acquired from legal settlement
(7,865)
—
Unrealized loss on remeasurement of share-based proceeds
1,508
—
Credit loss expense
2,635
8,115
Deferred income taxes
2,016
(1,480)
Stock-based compensation
6,952
6,456
Other
152
1,227
Changes in operating assets and liabilities:
Accounts receivable
9,877
(13,541)
Unbilled receivables
(26,221)
1,508
Inventory
(8,197)
237
Prepaid expenses and other assets
11,255
4,777
Deferred revenue
(2,314)
(3,161)
Accounts payable and other current liabilities
(5,543)
(2,085)
Other liabilities
54
126
Net cash provided by operating activities
40,841
62,965
Cash Flows from Investing Activities:
Purchases of installation and service parts and property and equipment
(31,199)
(21,243)
Cash proceeds from the sale of assets
112
24
Net cash used in investing activities
(31,087)
(21,219)
Cash Flows from Financing Activities:
Borrowings on Amended Revolver
48,500
—
Repayment on Amended Revolver
(22,500)
—
Repayment of term loan debt
(1,722)
(2,255)
Equipment financing arrangements
2,869
—
Payment of debt issuance costs
(579)
(43)
Share repurchases and retirement
(50,237)
—
Proceeds from the exercise of stock options
336
170
Payment of employee tax withholding related to RSUs and PSUs vesting
(5,248)
(6,606)
Net cash used in financing activities
(28,581)
(8,734)
Effect of exchange rate changes on cash and cash equivalents
615
365
Net (decrease) increase in cash, cash equivalents and restricted cash
(18,212)
33,377
Cash, cash equivalents and restricted cash - beginning of period
68,318
81,154
Cash, cash equivalents and restricted cash - end of period
$50,106
$114,531
VERRA MOBILITY CORPORATION
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA (Unaudited)
Three Months Ended March31,
($ in thousands)
2026
2025
Net income
$26,744
$32,339
Interest expense, net
15,407
16,636
Income tax provision
13,743
12,494
Depreciation and amortization
29,225
27,490
EBITDA
85,119
88,959
Transformation expenses (i)
4,193
—
Legal accrual/settlement (ii)
(10,278)
—
Loss on extinguishment of debt
—
25
Stock-based compensation (iii)
6,952
6,456
Adjusted EBITDA
$85,986
$95,440
Adjusted EBITDA Margin
38%
43%Revenue
223,568
223,254
(i)Transformation expenses for the three months ended March 31, 2026 consist of severance and other employee separation costs.(ii)This relates to a legal settlement finalized in the first quarter of 2026 in the form of cash and equity securities, an adjustment relating to the equity securities to remeasure to fair value at the end of the reporting period, and directly associated legal costs incurred during the quarter.(iii)Stock-based compensation represents the non-cash charge related to the issuance of awards under the Verra Mobility Corporation Amended and Restated 2018 Equity Incentive Plan.
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH
FLOW (Unaudited)
Three Months Ended March31,
($ in thousands)
2026
2025
Net cash provided by operating activities
$40,841
$62,965
Purchases of installation and service parts and property and equipment
(31,199)
(21,243)
Free Cash Flow
$9,642
$41,722
RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME AND CALCULATION OF
ADJUSTED EPS (Unaudited)
Three Months Ended March31,
(In thousands, except per share data)
2026
2025
Net income
$26,744
$32,339
Amortization of intangibles
15,598
16,697
Transformation expenses (i)
4,193
—
Legal accrual/settlement (ii)
(10,278)
—
Loss on extinguishment of debt
—
25
Stock-based compensation (iii)
6,952
6,456
Total adjustments before income tax effect
16,465
23,178
Income tax effect on adjustments
(4,610)
(6,714)
Total adjustments after income tax effect
11,855
16,464
Adjusted Net Income
$38,599
$48,803
Adjusted EPS
$0.25
$0.30
Diluted weighted average shares outstanding
153,689
162,066
Annual estimated effective income tax rate (iv)
28%
29%
(i)Transformation expenses for the three months ended March 31, 2026 consist of severance and other employee separation costs.(ii)This relates to a legal settlement finalized in the first quarter of 2026 in the form of cash and equity securities, an adjustment related to the equity securities to remeasure to fair value at the end of the reporting period, and directly associated legal costs incurred during the quarter.(iii)Stock-based compensation represents the non-cash charge related to the issuance of awards under the Verra Mobility Corporation Amended and Restated 2018 Equity Incentive Plan.(iv)The annual estimated effective tax rate used above excludes discrete items as they do not impact taxable income. This rate differs from the period-to-date effective tax rate used on our condensed consolidated statements of operations which includes the discrete items.
RECONCILIATION OF TOTAL DEBT, NET TO NET DEBT AND NET LEVERAGE (Unaudited)($ in thousands)
March31,
2026
December31,
2025
Total debt, net
$1,055,617
$1,028,045
Original issue discounts
2,111
2,193
Unamortized deferred financing costs
6,501
6,844
Total debt, excluding original issue discounts and unamortized deferred
financing costs
1,064,229
1,037,082
Cash and cash equivalents
(46,894)
(65,272)
Net Debt
$1,017,335
$971,810
Net Leverage
2.5x
2.3x
Trailing twelve months adjusted EBITDA (i)
406,450
415,905
(i)Trailing Twelve Months or "TTM" refers to the trailing four quarters and is calculated by adding the sum of the current quarter's and the prior three quarters' being measured.
QUARTERLY RESULTS AND RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA
(Unaudited)($ in millions)Q1 2025
Q2 2025
Q3 2025
Q4 2025
TTM
2025
Q1 2026
TTM 2026
Net income$32.3
$38.6
$46.8
$18.9
$136.6
$26.7
$131.0
Interest expense, net
16.6
16.6
16.4
15.0
64.6
15.4
63.4
Income tax provision
12.5
14.0
17.8
14.0
58.3
13.7
59.5
Depreciation and amortization
27.6
29.1
28.6
28.9
114.2
29.3
115.9
EBITDA
89.0
98.3
109.6
76.8
373.7
85.1
369.8
Transaction and other related expenses (i)
—
1.1
—
6.3
7.4
—
7.4
Transformation expenses (ii)
—
(1.4)
0.2
10.3
9.1
4.2
13.3
Legal accrual/settlement (iii)
—
—
(1.5)
—
(1.5)
(10.3)
(11.8)
Loss on extinguishment of debt
—
—
—
1.3
1.3
—
1.3
Tax receivable agreement liability adjustment
—
—
—
0.7
0.7
—
0.7
Stock-based compensation (iv)
6.4
7.3
5.0
6.5
25.2
7.0
25.8
Adjusted EBITDA$95.4
$105.3
$113.3
$101.9
$415.9
$86.0
$406.5
(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 2025 refinancing on our first lien term loan(ii)Transformation expenses for the three months ended March 31, 2026 consist of severance and other employee separation costs. Transformation expenses for the periods in 2025 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.(iii)This relates to a legal settlement finalized in the first quarter of 2026 in the form of cash and equity securities, an adjustment related to the equity securities to remeasure to fair value at the end of the reporting period, and directly associated legal costs incurred during the quarter. For the periods in 2025 this item relates to adjustments to loss contingencies.(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.Investor Relations Contact
Mark Zindler
mark.zindler@verramobility.com View original content to download multimedia:https://www.prnewswire.com/news-releases/verra-mobility-announces-first-quarter-2026-financial-results-302764348.htmlSOURCE Verra Mobility Original: Verra Mobility Announces First Quarter 2026 Financial Results
US Market News
3月前
Verra Mobility Announces Fourth Quarter and Full Year 2025 Financial ResultsFebruary 24, 2026 4:05 PM
PR Newswire (US)
Full year 2025 revenue of $979.1 millionFull year 2025 net income of $136.6 millionFull year 2025 net cash provided from operations of $255.8 millionEntered into new five-year contract with the New York City Department of TransportationRepurchased $133.4 million of shares of common stock during the fourth quarter of 2025Establishing fiscal year 2026 guidanceMESA, Ariz., Feb. 24, 2026 /PRNewswire/ -- Verra Mobility Corporation (NASDAQ: VRRM), a leading provider of smart mobility technology solutions, announced today the financial results for the fourth quarter and full year ended December 31, 2025.
"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 HighlightsRevenue: Total revenue for the fourth quarter of 2025 was $257.9 million, an increase of 16% compared to $221.5 million for the fourth quarter of 2024. Service revenue growth was 14%, driven by 21% growth in our Government Solutions segment and 10% 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 compared to the fourth quarter of 2024, as increased revenue from professional services was offset by a decrease in software as a service ("SaaS") product offerings and subscription services revenue related to parking management solutions.Net income (loss) and Earnings Per Share ("EPS"): Net income for the fourth quarter of 2025 was $18.9 million, or $0.12 per share, based on 159.7 million diluted weighted average shares outstanding. Net loss for the comparable period in fiscal year 2024 was $66.7 million, or $0.41 per share, based on 163.3 million diluted weighted average shares outstanding. The increase in net income for the fourth quarter of 2025 was primarily attributable to goodwill impairment recorded in the prior year period.Adjusted EPS*: Adjusted EPS for the fourth quarter of 2025 was $0.30 per share compared to $0.33 per share for the fourth quarter of 2024.Adjusted EBITDA*: Adjusted EBITDA was $101.8 million for the fourth quarter of 2025 compared to $102.0 million for the same period in 2024. Adjusted EBITDA Margin* was 39% and 46% 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 from $40.5 million for the three months ended December 31, 2024 to $40.0 million for the three months ended December 31, 2025.Free Cash Flow*: Free Cash Flow was $5.7 million for the fourth quarter of 2025 compared to $21.6 million for the prior year period due to increased capital expenditures.*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 and Canada.Fourth Quarter 2025 Segment DetailThe Commercial Services segment generated total revenue of $108.1 million, a 10% increase compared to $98.7 million in the same period in 2024. Segment profit was $69.1 million, a 7% increase from $64.6 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 business due to prior period customer churn. The segment profit margin was 64% for the fourth quarter of 2025 and 65% for the fourth quarter of 2024.The Government Solutions segment generated total revenue of $129.2 million, a 25% increase compared to $103.2 million in the same period in 2024. The increase was due to a 21% increase in service revenue over the prior year period, driven by a $13.7 million increase from installation service revenue primarily 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 $5.9 million from the prior year period, due to the NYCDOT red-light expansion program. The segment profit was $31.1 million in the fourth quarter of 2025 compared to $34.6 million in the prior year period with segment profit margins of 24% for the fourth quarter of 2025 and 34% 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, a 5% increase compared to $19.7 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 $1.6 million compared to $2.8 million in the prior year period with segment profit margins of 8% for the fourth quarter of 2025 and 14% for the fourth quarter of 2024.Full Year 2025 Financial HighlightsRevenue: Total revenue for fiscal year 2025 was $979.1 million, an increase of 11% compared to $879.2 million for fiscal year 2024. Service revenue growth was 9%, driven by 13% growth in our Government Solutions segment and 7% 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 compared to fiscal year 2024, as increased revenue from our SaaS product offerings and professional services revenue was offset by a decrease in subscription services revenue related to parking management solutions.Net income and EPS: Net income for fiscal year 2025 was $136.6 million, or $0.85 per share, based on 161.3 million diluted weighted average shares outstanding. Net income for fiscal year 2024 was $31.4 million, or $0.19 per share, based on 167.7 million diluted weighted average shares outstanding. The increase in net income for fiscal year 2025 was primarily attributable to goodwill impairment recorded in the prior year period.Adjusted EPS*: Adjusted EPS for fiscal year 2025 was $1.32 per share compared to $1.23 per share for fiscal year 2024.Adjusted EBITDA*: Adjusted EBITDA was $415.9 million for fiscal year 2025 compared to $401.6 million for fiscal year 2024. Adjusted EBITDA Margin* was 42% and 46% 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 from $223.6 million for fiscal year 2024 to $255.8 million for fiscal year 2025. This was primarily from increased income from operations, partially offset by an increase in deferred income taxes, credit loss expense, impairment of long-lived assets, and an increase in the net use of working capital, of which, the majority is attributable to increases in accounts receivable and prepaid assets partially offset by a large payment that reduced accounts payable in the first half of fiscal year 2024.Free Cash Flow*: Free Cash Flow was $136.7 million for fiscal year 2025 compared to $152.8 million for the prior year period. Free Cash Flow for fiscal year 2025 includes an increase in capital expenditures of $48.2 million and fiscal year 2024 includes an after-tax legal settlement cost of approximately $22.1 million.Liquidity and Debt: As of December 31, 2025, cash and cash equivalents were $65.3 million and long-term debt, net was $1,028.0 million, and we generated $255.8 million in net cash provided by operating activities for the year ended December 31, 2025.Net Debt and Net Leverage*: As of December 31, 2025, Net Debt was $971.8 million and Net Leverage was 2.3x, 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
Our contract with NYCDOT expired on December 31, 2025, and we entered into a new contract with NYCDOT, effective January 1, 2026, to manage New York City's automated enforcement camera safety program for a five-year period, with an option for the parties to extend for an additional five-year term. The total contract value for the new NYCDOT contract is $998 million. The terms of the new contract are materially different than our prior contract with NYCDOT, including service level agreements, service credits, liquidated damages, cybersecurity, and subcontracting requirements.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 $38.4 million of revenue in fiscal year 2025, of which approximately $23.9 million was installation services revenue and approximately $14.5 million was product revenue.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 $150 million senior secured asset-based revolving credit facility with a $35 million sublimit for the issuance of letters of credit, and matures on October 17, 2030 (subject to an earlier maturity date in certain circumstances), and (ii) VM Consolidated and certain of our subsidiaries entered into the Amendment and Restatement Agreement No. 2 to the Amended and Restated First Lien Term Loan Credit Agreement dated as of March 26, 2021, to refinance the existing senior secured term loans in an aggregate outstanding principal amount of approximately $688.8 million with a new senior secured term loan of the same principal amount maturing on October 15, 2032.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 the repurchase of up to an additional $150.0 million of our outstanding shares of Class A Common Stock under the existing May 2025 program, providing us with $250.0 million available for repurchases. Under the repurchase program, we may purchase shares of Class A Common Stock until November 13, 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. During the fourth quarter of fiscal year 2025, we paid $133.4 million to repurchase 6,028,853 shares of our Class A Common Stock through open market transactions, which shares we subsequently retired.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 to $1,030 millionAdjusted EBITDA of $405 million to $415 millionAdjusted EPS of $1.32 to $1.38Free Cash Flow of $150 million to $160 millionUnderlying Assumptions for 2026 Full Year GuidanceWeighted average fully diluted share count expected to be approximately 155 million shares for the full year 2026Effective tax rate (including state taxes) is expected to be 28.0% to 29.0%, with approximately $50 million in total cash taxes expected to be paid in 2026. The effective tax rate for non-GAAP adjustments is provided in the Reconciliation of Net Income (Loss) to Adjusted Net Income and Calculation of Adjusted EPSDepreciation and amortization expense expected to be approximately $125 million for 2026Total interest expense, net expected to be approximately $62 million, of which approximately $60 million is expected to be net cash interest paidChange in working capital (change in operating assets and liabilities) is expected to result in a use of cash of approximately $20 million for 2026Capital expenditures (purchases of installation and service parts and property and equipment) are expected to be approximately $125 million for 2026 relating primarily to camera installations and MOSAIC implementationConference Call DetailsDate: 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 Arizona, Verra Mobility operates in the United States, Australia, Europe, and Canada. 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 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 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 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 MetricsRecurring 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 CORPORATIONCONDENSED 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 $23.0 million and
$17.0 million at December 31, 2025 and 2024, respectively)
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, $0.0001 par value
—
—
Common stock, $0.0001 par value
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
amortization
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
assets, net
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
activities:
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 $22.1 million. The annual estimated effective tax rate to calculate the income tax effect on the legal settlement adjustment was 30.0%. 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,
2025
December 31,
2024
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
unamortized deferred financing costs
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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Original: Verra Mobility Announces Fourth Quarter and Full Year 2025 Financial Results