Verra Mobility (VRRM) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue grew 16% year-over-year to $258 million, surpassing expectations, driven by NYC red-light camera installations and core market growth.

• Adjusted EBITDA for Q4 was $102 million, flat year-over-year; Adjusted EPS declined 9% to $0.30.

• Major $998 million, five-year contract signed with NYCDOT, with an option for a five-year renewal, effective January 2026.

• $133 million of stock repurchased in Q4 under an expanded $250 million authorization.

• Investments in technology modernization, including the Mosaic platform and connected vehicle initiatives, are prioritized for future growth.

Financial highlights

• Full-year 2025 revenue was $979 million, up 11% year-over-year, with a 4-year CAGR of 15%.

• Adjusted EBITDA for 2025 was $416 million (42% margin); Q4 Adjusted EBITDA was $102 million (39% margin).

• Full-year net income was $137 million; GAAP EPS $0.85, adjusted EPS $1.32 (up from $1.23 in 2024).

• Free cash flow for 2025 was $137 million (33% conversion); Q4 free cash flow was $6 million.

• Net leverage at year-end was 2.3x; net debt $972 million; available liquidity $290 million.

Outlook and guidance

• 2026 revenue guidance: $1.02–$1.03 billion (5% growth at midpoint); adjusted EBITDA $405–$415 million (40% margin, down 250 bps).

• 2026 adjusted EPS expected at $1.32–$1.38; free cash flow $150–$160 million; CapEx ~$125 million, mainly for Government Solutions.

• Margins expected to recover in 2027 and beyond, driven by Mosaic platform cost savings and volume leverage.

• Quarterly cadence: Q1 2026 revenue flat, then high single-digit growth in Q2, mid-single digits in Q3/Q4.

• Assumptions include a 28–29% effective tax rate, $125 million in depreciation/amortization, and $62 million in interest expense.