Verra Mobility (VRRM) CJS Securities 26th Annual "New Ideas for the New Year” Investor Conference summary

Financial performance and business overview

• Reported trailing 12-month revenue of $943 million to just under $950 million, with over $400 million in EBITDA, a 44% adjusted EBITDA margin, and free cash flow conversion between 37% and nearly 40%.

• 94% of revenue is recurring or reoccurring, supporting long-term earnings stability.

• Company operates three main segments: Commercial Services (toll and violation management), Government Solutions (automated traffic enforcement), and Parking Solutions (parking management for universities and municipalities).

• Commercial and Government Solutions each generate about $400 million in revenue, while Parking Solutions contributes over $80 million, representing ~9% of total revenue.

• Majority of revenue is from North America, with growing presence in Europe and APAC.

Segment growth drivers and market position

• Commercial Services leads U.S. rental car toll management, with high single-digit organic growth, mid-60s margins, and 90% recurring revenue.

• Government Solutions is a high single-digit organic grower, with 9,000 cameras installed globally and a 70% U.S. market share.

• Parking Solutions targets universities and municipalities, with mid-single-digit growth and high-teen to 16% margins; 50% of revenue is SaaS.

• Growth in all segments driven by technology adoption, new customer wins, and expansion into adjacencies like telematics and smart city platforms.

• Ongoing expansion into new cities, universities, and international markets, with upside from M&A and innovation.

New York City contract and margin outlook

• Secured a five-year, $998 million contract renewal with New York City, with an option for another five years.

• Contract includes both price concessions and incremental revenue opportunities, such as camera expansion and new services.

• Margins will temporarily decline 250–300 basis points due to required minority and women-owned business participation, but are expected to recover starting in 2027 through cost reductions from the Mosaic project.

• Long-term margin target for Government Solutions is high 20s to 30% by 2028.

• Government Solutions segment benefits from new and extended contracts, including with NYCDOT, supporting future revenue.