Verra Mobility (VRRM) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $263.6–$264 million, up 11.7–12% year-over-year, driven by Government Solutions growth, especially NYC camera installations, and core market expansion.

• Net loss for Q2 2026 was $(48.2) million, primarily due to $104–$104.4 million in goodwill and intangible asset impairments in Parking Solutions.

• Leadership transition with Jon Keyser as Interim CEO and organizational realignment to accelerate transformation, customer centricity, and operational efficiency.

• Secured seven-year and five-year contract renewals with Avis Budget Group and Hertz, respectively, on less favorable terms including fleet volume modulation rights, stabilizing but increasing revenue variability.

• Selected as automated speed safety vendor for Los Angeles, expanding presence in California and now chosen by all six authorized cities.

Financial highlights

• Q2 2026 total revenue was $263.6–$264 million, up 11.7–12% year-over-year; Adjusted EBITDA was $110.7–$111 million (42% margin), up 5% year-over-year.

• Adjusted EPS increased to $0.38 from $0.34 year-over-year; Free Cash Flow was $32.6–$33 million, down from prior year.

• Net leverage at 2.4x, with net debt of $993.2 million–$1 billion and $49.6–$50 million in cash.

• $25 million in new annual recurring revenue bookings in Government Solutions for Q2; $74 million in incremental ARR over the trailing 12 months.

• $66 million remaining under $250 million share repurchase authorization.

Outlook and guidance

• 2026 revenue guidance set at $945–$965 million; Adjusted EBITDA at $360–$370 million (38% margin); Adjusted EPS expected at $1.11–$1.17; Free Cash Flow guidance of $105–$115 million.

• Guidance reflects higher CapEx for new contracts and margin pressure from NYC pricing and contract repricing.

• Commercial Services revenue growth expected to be negative high single digits for 2026 due to less favorable contract terms.

• Government Solutions to deliver high end of mid-single-digit revenue growth; Parking Solutions to grow low to mid-single digits.

• 2026 assumptions: ~153 million diluted shares, 28–29% effective tax rate, $120 million D&A, $62 million interest expense, $135 million capex.