Verra Mobility (VRRM) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue grew 5% year-over-year to $221–$221.5 million, with adjusted EBITDA up 12% to $102 million and adjusted EPS up 38% to $0.33.

• Full year 2024 revenue reached $879–$879.2 million, up 8% year-over-year, with adjusted EBITDA of $401.6–$402 million (46% margin).

• Net loss in Q4 was $66.7–$67 million, primarily due to a $97–$97.1 million non-cash goodwill impairment in Parking Solutions.

• $200 million was invested in share repurchases in 2024, with a $100 million increase in buyback authorization in December.

• Strong performance in Commercial and Government segments, while Parking Solutions lagged.

Financial highlights

• Q4 2024 total revenue was $221–$221.5 million (+5% YoY); adjusted EBITDA $102 million (+12% YoY); adjusted EPS $0.33 (+38% YoY); free cash flow $22 million.

• Full year 2024 free cash flow was $152.8–$153 million, a 38% conversion of adjusted EBITDA.

• Net leverage at year-end was 2.4x, with net debt of $968 million and cash of $77.6–$78 million.

• Service revenue comprised 96% of total revenue, primarily recurring.

• Free cash flow included a $22.1 million after-tax legal settlement.

Outlook and guidance

• 2025 guidance: revenue $925–$935 million (6% growth at midpoint), adjusted EBITDA $410–$420 million (3% growth), adjusted EPS $1.30–$1.35, free cash flow $175–$185 million, and net leverage of ~2.0x.

• CapEx for 2025 projected at ~$90 million, mainly for Government Solutions and ERP.

• 2025 assumptions: 163 million diluted shares, 28.5–29.5% tax rate, $110 million D&A, $70 million interest expense, $15 million working capital use.

• Long-term 6–8% revenue growth outlook reaffirmed; 2026 targets remain intact.