Partnership enables frictionless electronic toll payments across Italy, so drivers can continue their journey without having to stop and pay AMSTERDAM, Jan. 28, 2026 /PRNewswire/ -- Verra Mobility Corporation (NASDAQ: VRRM), a leading provider of smart mobility technology solutions, announced today a partnership with Italian rental car company Locauto Group to offer an electronic toll payment solution across Italy. Drivers can easily opt in to the program in all 100+ Locauto rental locations - covering air ...

70% favor automated enforcement to better protect kids in school zones MESA, Ariz., Jan. 27, 2026 /PRNewswire/ -- As the school year hits a midway point, a recent Verra Mobility 2025-2026 school year survey, issued via Pollfish, reveals that parents and caregivers of school-aged students overwhelmingly support the use of automated enforcement to improve student transportation safety. The survey, which included 2,000 parents or caretakers of children who walk, drive, are driven, or take transportation to sch ...

Core Insights - Verra Mobility Corporation has been selected by Glendale and Long Beach, California, to implement speed safety programs, marking the third and fourth cities to contract with the company for this initiative [1][3] - The speed safety pilot program is part of California's Assembly Bill 645, which emphasizes data protection, equitable fines, and community engagement [3] - The deployment will include nine speed safety systems in Glendale and 18 in Long Beach, aimed at reducing speeding and preventing traffic-related injuries and fatalities [3] Company Overview - Verra Mobility is a leading provider of smart mobility technology solutions, focusing on making transportation safer and more efficient [6] - The company has over 20 years of experience in automated traffic enforcement and operates similar programs in San Francisco and Oakland [2][4] - Speed safety programs implemented by Verra Mobility have shown significant results, with reductions in speeding by up to 94% and a reported 50% decrease in traffic deaths in San Francisco [4]

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Verra Mobility FY Conference Summary Company Overview - **Company**: Verra Mobility (NasdaqCM: VRRM) - **Industry**: Outsourced towing management services, traffic safety enforcement, and parking management - **Revenue**: Approximately $950 million for the trailing 12 months as of Q3 2025 [3] - **EBITDA**: Just over $400 million with a 44% adjusted EBITDA margin [3] - **Free Cash Flow**: $153 million, representing a conversion rate of nearly 40% of adjusted EBITDA [3] - **Employee Count**: Approximately 2,000 [4] - **Customer Base**: Over 2,300 customers, primarily in parking services [4] Business Segments 1. Commercial Services - **Market Position**: Leader in toll and violation management for commercial fleets [6] - **Revenue**: Approximately $400 million globally, with high single-digit organic growth expected [8] - **Recurring Revenue**: 90% of revenue is recurring in nature [8] - **Growth Drivers**: GDP-like travel growth, increasing cashless road penetration, and new toll road additions [8] 2. Government Solutions - **Market Position**: Industry leader in automated traffic enforcement [9] - **Revenue**: Approximately $400 million, also a high single-digit organic grower [10] - **Recurring Revenue**: 90% of revenue is recurring [10] - **Key Contracts**: Largest customer is New York City, with a renewed contract valued at nearly $1 billion [10] - **Market Share**: Maintains a 70% market share in the U.S. [11] - **Growth Opportunities**: Adoption of new photo enforcement technologies and expansion into new municipalities [11] 3. Parking Solutions - **Market Position**: Leading provider of parking management solutions in North America [12] - **Revenue**: Approximately $80 million, with mid-single-digit organic growth [13] - **Recurring Revenue**: 50% from SaaS, 25% from recurring services, and 25% from episodic hardware sales [13] - **Growth Drivers**: Expansion into universities and municipalities, with significant market potential [13] Financial Performance - **Revenue Growth**: Total revenue CAGR of about 15% pre-COVID, with service revenue CAGR of about 17% [20] - **Adjusted EBITDA Growth**: 12% CAGR, with margins in the mid-40s [20] - **Leverage**: Closed Q3 with a leverage ratio of about two times, targeting three times net leverage [22] - **Liquidity**: $200 million in cash and an undrawn credit facility, totaling over $400 million in liquidity [22] Strategic Insights - **New York City Contract**: Expected to be EBITDA accretive despite a temporary margin step back due to contract adjustments [25][31] - **Market Trends**: High single-digit growth expected in Government Solutions, driven by technology adoption and new city contracts [26] - **Cash Flow Expectations**: Anticipated cash flow to remain stable, with a conversion rate of around 40% of adjusted EBITDA [34] Future Growth Opportunities - **Commercial Services**: Expansion into European markets and adjacencies like telematics and vehicle towing [16] - **Government Solutions**: Growth through new city contracts and technology adoption, including school bus enforcement [17] - **Parking Solutions**: Potential growth in airport parking management and monetizing curb space in urban areas [18] Market Dynamics - **Travel Trends**: Overall travel growth of about 0.5% in 2025, with a bullish outlook for 2026 [42][43] - **Cashless Tolling**: Approximately 70% of U.S. toll roads are cashless, indicating significant growth potential [36] - **European Market**: Cashless tolling penetration is much lower than in the U.S., presenting future opportunities [39] Capital Allocation Strategy - **M&A vs. Debt Reduction**: Focus on high-return opportunities, including share buybacks, with a recent authorization of $250 million for buybacks [49][50] - **Long-term Outlook**: Emphasis on being a world-class capital allocator, balancing debt management and growth investments [49]

Core Insights - Verra Mobility Corporation, a leader in smart mobility technology solutions, will participate in a virtual fireside chat at the CJS Securities New Ideas for the New Year Conference on January 14, 2026 [1] Company Overview - Verra Mobility Corporation (NASDAQ: VRRM) is a prominent provider of smart mobility technology solutions aimed at making transportation safer, smarter, and more connected [2] - The company integrates vehicles, hardware, software, data, and people to deliver efficient solutions globally, focusing on transportation safety systems and parking management [2] - Verra Mobility operates in North America, Europe, and Australia, addressing complex payment, utilization, and compliance challenges for fleet owners and rental car companies [2]

Core Thesis - Verra Mobility Corporation (VRRM) is positioned as a compelling investment opportunity due to its strong market presence, growth potential, and underappreciated contracts, particularly with New York City [1][4]. Company Overview - Verra Mobility Corporation operates in smart mobility technology solutions across the United States, Australia, Europe, and Canada, focusing on two main segments: Commercial Services (CS) and Government Solutions (GS) [2]. - The company holds a market share of over 90% in CS and 70% in GS, indicating strong competitive positioning [3]. Segment Performance - CS is experiencing high-single-digit growth driven by the rise of cashless tolling and increased toll-road usage, while GS growth is accelerating due to new legislation and the expansion of automated traffic enforcement programs [3]. - The largest customer, New York City, contributes $139 million in annual service revenue, with a recently secured five-year contract valued at $963 million, which includes a 25% increase in recurring service revenue compared to 2024 [3]. Financial Outlook - The consolidated business is projected to generate significant free cash flow, with an estimated $266 million by 2028, and the stock is currently trading at a forward free cash flow yield of approximately 5% [4]. - The anticipated growth in both CS and GS segments is expected to exceed consensus estimates for FY26 and FY27, supported by stronger-than-expected throughput and travel demand [4]. Investment Catalysts - Near-term catalysts include the official announcement of the NYC contract and potential upgrades from analysts, which could further enhance the stock's appeal [4].

Core Insights - Artificial intelligence (AI) is identified as the greatest investment opportunity of the current era, with a strong emphasis on the urgent need for energy to support its growth [1][2][3] - A specific company is highlighted as a key player in the AI energy sector, owning critical energy infrastructure assets that are essential for meeting the increasing energy demands of AI technologies [3][7][8] Investment Landscape - Wall Street is investing hundreds of billions into AI, but there is a pressing concern regarding the energy supply needed to sustain this growth [2] - AI data centers, such as those powering large language models, consume energy equivalent to that of small cities, indicating a significant strain on global power grids [2] - The company in focus is positioned to capitalize on the surge in demand for electricity driven by AI, making it a potentially lucrative investment opportunity [3][6] Company Profile - The company is described as a "toll booth" operator in the AI energy boom, collecting fees from energy exports and benefiting from the onshoring trend due to tariffs [5][6] - It possesses critical nuclear energy infrastructure assets and is capable of executing large-scale engineering, procurement, and construction projects across various energy sectors [7][8] - The company is noted for being debt-free and holding a substantial cash reserve, which is nearly one-third of its market capitalization [8][10] Market Position - The company has an equity stake in another prominent AI venture, providing investors with indirect exposure to multiple growth engines in the AI sector [9] - It is trading at a low valuation, less than seven times earnings, which is attractive for investors looking for undervalued stocks in the AI and energy space [10][11] - The company is recognized for its ability to generate real cash flows and maintain critical infrastructure, positioning it well for future growth [11][12] Future Outlook - The ongoing AI infrastructure supercycle, combined with the onshoring boom and a surge in U.S. LNG exports, creates a favorable environment for the company [14] - The influx of talent into the AI sector is expected to drive continuous innovation and advancements, further solidifying the importance of energy infrastructure [12][13]

Core Insights - Verra Mobility Corporation (NASDAQ:VRRM) provides smart transportation solutions, focusing on toll and violations management, as well as commercial fleet services [1] - The company operates in a competitive landscape with peers such as International Money Express, Inc. (IMXI), Option Care Health, Inc. (OPCH), and R1 RCM Inc. (RCM) [1] Financial Performance - Verra Mobility has a Return on Invested Capital (ROIC) of 4.72% and a Weighted Average Cost of Capital (WACC) of 5.82%, resulting in a ROIC to WACC ratio of 0.81, indicating inefficiencies in investment strategies [2][6] - International Money Express, Inc. (IMXI) shows a strong financial performance with a ROIC of 14.18% and a WACC of 6.98%, leading to a ROIC to WACC ratio of 2.03, showcasing strong capital efficiency [3][6] - Option Care Health, Inc. (OPCH) has a ROIC of 9.20% and a WACC of 6.87%, resulting in a ROIC to WACC ratio of 1.34, indicating returns above its cost of capital [4][6] - R1 RCM Inc. (RCM) has a ROIC of 0.96% and a WACC of 7.69%, leading to a ROIC to WACC ratio of 0.12, indicating significant inefficiencies in generating returns [5][6]

Core Insights - Verra Mobility is a global leader in smart transportation, operating in three distinct customer segments [2] Group 1: Business Segments - The first segment is Government Solutions, where the company is the number one provider of automated enforcement technology in North America, holding approximately 70% market share in the U.S. [3] - The Government Solutions segment includes products such as red light cameras, speed cameras, school bus stop-arm cameras, and bus lane cameras, with operations also in Australia, New Zealand, and Europe [3] Group 2: Market Position - Verra Mobility's strong market position in automated enforcement technology highlights its competitive advantage in the smart transportation sector [3] - The company is well-positioned to capitalize on high-level secular trends in the transportation verticals it operates in [2]