Verra Mobility (VRRM) investor relations material

Executive summary

• Q2 2025 revenue grew 6% year-over-year to $236M, with net income up 12% to $38.6M, driven by strong Commercial Services and Government Solutions performance, and lower interest expense.

• All business segments met or exceeded internal plans; Commercial Services revenue up 5%, Government Solutions up 10%, and Parking Solutions down 4% year-over-year.

• Free cash flow for Q2 was $40M, up 55% year-over-year, with strong cash generation and conversion rates.

• Board authorized a new $100M stock repurchase program through November 2026; no repurchases made yet under this program.

• Legislative wins in Colorado and Nevada expanded the addressable market by $40M, supporting Government Solutions growth.

Financial highlights

• Q2 2025 total revenue was $236M, up 6% year-over-year; service revenue comprised 95% of total revenue.

• Adjusted EBITDA was $105M (45% margin), up 3% year-over-year; adjusted EPS was $0.34, up 10% year-over-year.

• Net income for Q2 2025 was $38.6M ($0.24 per share), up from $34.2M ($0.20 per share) in Q2 2024.

• Free cash flow for Q2 2025 was $40M; trailing twelve months free cash flow was $189M, a 46% conversion of adjusted EBITDA.

• Cash and cash equivalents stood at $148M as of June 30, 2025.

Outlook and guidance

• Full-year 2025 guidance reaffirmed: revenue $925M–$935M (6% growth at midpoint), adjusted EBITDA $410M–$420M, adjusted EPS $1.30–$1.35, and free cash flow $175M–$185M.

• Guidance assumes flat travel volumes; risk of trending to lower end if travel demand declines.

• Assumptions include 163M diluted shares, 28.5–29.5% tax rate, $110M D&A, $70M interest expense, and $110M capex.

• Government Solutions expected to deliver high single-digit revenue growth, with flat NYC service revenue and increased product sales.

• Parking Solutions revenue expected to be flat; SaaS revenue to grow low to mid-single digits.