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Verra Mobility (VRRM) investor relations material

Verra Mobility Q3 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q3 2025 earnings summary29 Oct, 2025

Executive summary

  • Q3 2025 revenue rose 16% year-over-year to $262 million, driven by the New York City (NYCDOT) red-light camera expansion and strong recurring service revenue across all segments.

  • Adjusted EBITDA grew 8% year-over-year to $113 million, with adjusted EPS up 16% to $0.37; net income for Q3 was $46.8 million, up 35%.

  • Free cash flow for Q3 was $49 million, with a 43% conversion rate of adjusted EBITDA.

  • The NYCDOT automated enforcement contract, valued at $963 million over five years, is expected to drive significant future growth, with annual service revenue projected to rise from $135 million in 2024 to $165–$185 million by 2027.

  • Board authorized a $150 million increase to the stock repurchase program, bringing the total to $250 million.

Financial highlights

  • Q3 2025 total revenue: $262 million, up 16% year-over-year; service revenue up 12%; product sales up 126%.

  • Adjusted EBITDA: $113 million, up 8% year-over-year; adjusted EBITDA margin at 43–46% for the trailing 12 months.

  • Net income: $46.8 million; GAAP-diluted EPS: $0.29; adjusted EPS: $0.37, up 16% year-over-year.

  • Free cash flow: $49 million for Q3; $153 million for the trailing 12 months.

  • Cash and cash equivalents as of September 30, 2025, were $196.1 million.

Outlook and guidance

  • 2025 revenue guidance raised to $955–$965 million (9% growth at midpoint); adjusted EBITDA guidance $410–$420 million; adjusted EPS $1.30–$1.35; free cash flow $175–$185 million.

  • 2026 outlook: mid-single-digit revenue growth, adjusted EBITDA margin to decline 250–300 bps due to portfolio mix and NYCDOT contract.

  • 2025 capital expenditures expected at $110 million, mainly for revenue-generating cameras and ERP implementation.

  • Margin expansion and strong growth anticipated from 2027 onward, driven by the Mosaic platform and operational scale.

  • The company believes existing liquidity and cash flows are sufficient to meet obligations and fund operations for the foreseeable future.

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Frequently asked questions

Verra Mobility Corporation operates primarily through two companies, American Traffic Solutions (ATS) and RMV Solutions. ATS is the leading provider of photo traffic enforcement programs and equipment in North America, with clients in more than 400 cities across the US and Canada. Its SafeLight program reduces red-light running at intersections throughout North America by 20-30%. Its experience as a mobility company dates back to 1989. RMV Solutions is one of the largest providers of online motor vehicle registration transactions for governments in the US, with clients in more than 17 states.

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