Core Insights - Verra Mobility Corporation has been recognized as a Great Place to Work for the fourth consecutive year, based on employee feedback [1][2][5] Employee Experience - In 2025, 81% of Verra Mobility employees rated the company as a great place to work, significantly higher than the 57% average for typical U.S. companies [2] - Employees reported high levels of responsibility (90%) and a welcoming environment upon joining (87%) [3] Workplace Culture - Great Place to Work Certification indicates a strong workplace culture, with job seekers being 4.5 times more likely to find a great boss at certified companies [4] - Employees at certified workplaces are 93% more likely to look forward to work and twice as likely to feel they are paid fairly and have equal promotion opportunities [4] Company Overview - Verra Mobility is a leading provider of smart mobility technology solutions, focusing on safer and more connected transportation [6] - The company operates globally, addressing challenges in transportation safety, parking management, and compliance for fleet owners and rental car companies [6]

Company Performance - Verra Mobility Corp (VRRM) reported quarterly earnings of $0.30 per share, exceeding the Zacks Consensus Estimate of $0.29 per share, and up from $0.27 per share a year ago, representing an earnings surprise of 3.45% [1] - The company posted revenues of $223.25 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 3.07%, compared to year-ago revenues of $209.73 million [2] - Over the last four quarters, Verra Mobility has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Stock Outlook - Verra Mobility shares have declined approximately 8% since the beginning of the year, while the S&P 500 has decreased by 4.7% [3] - The current consensus EPS estimate for the upcoming quarter is $0.32 on revenues of $233.49 million, and for the current fiscal year, it is $1.30 on revenues of $931 million [7] - The estimate revisions trend for Verra Mobility is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Internet - Software industry, to which Verra Mobility belongs, is currently in the top 37% of over 250 Zacks industries, suggesting that stocks in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8]

Financial Data and Key Metrics Changes - Total revenue for the quarter increased by 6% year-over-year to $223 million, driven by outperformance across all business segments [6][16] - Adjusted EPS rose by 11% compared to the prior year, reflecting strong operating performance and share repurchases [6][18] - Consolidated adjusted EBITDA for the quarter was $95 million, an increase of approximately 3% year-over-year [17][18] - Net income for the quarter was $32 million, with an effective tax rate of 28% [17][18] Business Segment Data and Key Metrics Changes - Commercial Services revenue grew by 6% year-over-year, with RAC tolling revenue also increasing by 6% [19][20] - Government Solutions service revenue increased by 4% year-over-year, with total revenue growing by 8% due to product sales [20][21] - T2 Systems generated revenue of $20 million, with product revenue up 13% compared to the previous year [21][22] Market Data and Key Metrics Changes - TSA travel volume increased by 1% year-over-year, with expectations of a modest deceleration in travel volumes in the second half of 2025 [11][14] - The company noted a broader pullback in consumer confidence impacting travel demand, with potential implications for discretionary spending [11][14] Company Strategy and Development Direction - The company is focused on maintaining its position as a trusted technology provider for New York City's automated enforcement safety programs, with ongoing contract negotiations [7][8] - The Government Solutions segment is expected to benefit from a strong pipeline of photo enforcement programs, with a total addressable market (TAM) expansion anticipated [12][13] - The company is cautiously optimistic about its outlook while closely monitoring the economic environment and travel demand [29] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertain economic environment and its potential impact on travel demand, suggesting a possible trend towards the lower end of guidance ranges [14][24] - The company reaffirmed its full-year 2025 financial guidance, factoring in variability in travel demand [24][25] - Management expressed confidence in the Government Solutions and T2 segments, indicating they are largely unaffected by economic sensitivity [14][26] Other Important Information - The company reported a net debt balance of $935 million, with a net leverage ratio of 2.3 times [22] - The ongoing ERP implementation is on schedule and on budget, with most processes now live [28] Q&A Session Summary Question: When is the expectation for the New York City contract to be finalized? - Management expects the contract to be finalized in the next sixty to ninety days [33] Question: Can you provide updates on the attractive pipeline for Q2 and city-level RFPs in California? - The company is ahead of its internal pipeline plan and is awaiting updates on RFPs submitted for San Jose and Oakland [35][36] Question: Are you seeing real-time revenue slow in Travel and Commercial Services? - Management indicated a slight decline in travel demand but emphasized that it is not material at this time [40][41] Question: How exposed is the company to international travel versus domestic travel? - The company primarily focuses on domestic travel, particularly in states where tolling activity is concentrated [75][76] Question: What are the initial steps being taken in T2 to improve that business? - Management noted small growth in T2, attributing it to improved commercial leadership and execution [73] Question: How does a potential recession influence long-term leverage targets? - Management stated that they would reassess leverage targets based on the macroeconomic environment, maintaining a target of three times net leverage [60]

Financial Data and Key Metrics Changes - Total revenue for the first quarter increased by 6% year-over-year to $223 million, driven by outperformance across all business segments [5][14] - Adjusted EPS rose by 11% compared to the prior year, reflecting strong operating performance and share repurchases [5][16] - Consolidated adjusted EBITDA for the quarter was $95 million, an increase of approximately 3% year-over-year [15] Business Segment Data and Key Metrics Changes - Commercial Services revenue grew by 6% year-over-year, with RAC tolling revenue also increasing by 6% due to modest travel demand growth [17][18] - FMC revenue increased by 12% year-over-year, driven by higher vehicle enrollment and tolling activity [7][17] - Government Solutions service revenue rose by 4% year-over-year, with total revenue growing by 8% due to product sales [18][19] - T2 Systems generated revenue of $20 million, with product revenue up 13% compared to the previous year [19] Market Data and Key Metrics Changes - TSA travel volume increased by 1% year-over-year, with expectations of a modest deceleration in travel volumes in the second half of 2025 [9][12] - The company noted a broader pullback in consumer confidence, which may impact travel demand [9] Company Strategy and Development Direction - The company is engaged in contract negotiations with the New York City Department of Transportation for a five-year contract to manage automated enforcement safety programs [6] - The company is maintaining its full-year 2025 financial guidance but acknowledges risks related to uncertain travel demand [12][21] - The Government Solutions segment is expected to generate high single-digit revenue growth driven by camera installations [24] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the outlook, closely monitoring the economic environment and travel demand [27] - The company anticipates that discretionary spending may be impacted, leading to potential softening in travel demand [9][12] Other Important Information - The company reported a net income of $32 million for the quarter, with an effective tax rate of 28% [15][16] - Free cash flow for the quarter was $42 million, exceeding internal expectations [16] Q&A Session Summary Question: When is the expectation for the New York City contract to be finalized? - Management expects the contract to be finalized in the next sixty to ninety days [30] Question: Can you provide updates on the attractive pipeline for Q2 and city-level RFPs in California? - The company is ahead of its internal pipeline expectations and is awaiting updates on RFPs for San Jose and Oakland [33] Question: Are you seeing a slowdown in Travel and Commercial Services revenue? - Management indicated a slight decline in travel demand but not significant enough to be material [39] Question: How exposed is the company to international travel versus domestic travel? - The company primarily focuses on domestic travel, particularly in states with significant tolling activity [72] Question: What are the initial steps being taken in T2 to improve that business? - Management has reinvigorated commercial leadership and execution, leading to small growth in T2 [71]

Financial Performance - Verra Mobility's Q1 2025 total revenue reached $223 million, a 6% year-over-year increase[6, 12] - Adjusted EBITDA for Q1 2025 was $95 million, representing a 3% year-over-year growth[6, 14] - Adjusted EPS for Q1 2025 was $030, an 11% year-over-year increase[6, 15] - Free Cash Flow for Q1 2025 was $42 million, a 108% year-over-year increase[6, 17] Segment Performance - Commercial Services revenue increased by 6% year-over-year, driven by increased travel volume, product adoption, and tolling activity[10, 25] - Government Solutions service revenue grew by 4% year-over-year, with 7% growth outside of New York City[10, 28] - Parking Solutions SaaS-only revenue grew 5% year-over-year, while total revenue remained flat due to a decline in installation and professional services[10, 31] Financial Outlook and Balance Sheet - The company reaffirmed its 2025 financial outlook, projecting total revenue between $925 million and $935 million[10, 40] - Adjusted EBITDA is expected to be between $410 million and $420 million, representing approximately 3% year-over-year growth[40] - Adjusted EPS is projected to be between $130 and $135, reflecting approximately 8% year-over-year growth[40] - Free Cash Flow is expected to be between $175 million and $185 million, with a conversion rate of approximately 43%[40] - As of March 31, 2025, Verra Mobility had $108 million in cash and cash equivalents and $75 million available under its revolving credit facility, resulting in $183 million in total available liquidity[33]

[PART I—FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%E2%80%94FINANCIAL%20INFORMATION) [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Q1 2025, showing total revenue of **$223.3 million** and net income of **$32.3 million**, with total assets growing to **$1.64 billion** Condensed Consolidated Statement of Operations Highlights (Q1 2025 vs Q1 2024) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Total Revenue** | $223.3 million | $209.7 million | | **Income from Operations** | $57.4 million | $54.4 million | | **Net Income** | $32.3 million | $29.1 million | | **Diluted EPS** | $0.20 | $0.17 | Condensed Consolidated Balance Sheet Highlights | Metric | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $426.1 million | $394.0 million | | **Total Assets** | $1.64 billion | $1.61 billion | | **Total Liabilities** | $1.34 billion | $1.35 billion | | **Total Stockholders' Equity** | $299.6 million | $265.1 million | Condensed Consolidated Statement of Cash Flows Highlights | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $63.0 million | $34.3 million | | **Net cash used in investing activities** | ($21.2) million | ($13.9) million | | **Net cash used in financing activities** | ($8.7) million | ($6.3) million | - The company operates through three reportable segments: Commercial Services, Government Solutions, and Parking Solutions[30](index=30&type=chunk)[88](index=88&type=chunk) - Significant customer concentration exists, with NYCDOT representing **15.4% of total revenue** and three Commercial Services customers collectively accounting for **37.9% of total revenue** for Q1 2025[38](index=38&type=chunk)[39](index=39&type=chunk)[172](index=172&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 financial results, highlighting a **6.4% increase in total revenue to $223.3 million** driven by Commercial Services and Government Solutions growth, alongside progress on the NYCDOT contract and an Accelerated Share Repurchase program - Total revenue increased by **6.4% to $223.3 million** in Q1 2025, primarily due to higher service revenue from increased travel volume in the Commercial Services segment and growth from bus lane enforcement and SaaS programs in the Government Solutions segment[100](index=100&type=chunk) Service Revenue by Segment (Q1 2025 vs Q1 2024) | Segment | Q1 2025 Revenue | Q1 2024 Revenue | % Change | | :--- | :--- | :--- | :--- | | Commercial Services | $101.4 million | $95.9 million | +5.7% | | Government Solutions | $94.0 million | $90.3 million | +4.1% | | Parking Solutions | $16.5 million | $16.6 million | -0.2% | - NYCDOT identified the Company as the vendor for a new five-year contract for its automated enforcement camera safety programs, with contract negotiations currently underway, and the existing contract extended through December 31, 2025[12](index=12&type=chunk)[101](index=101&type=chunk) - An Accelerated Share Repurchase (ASR) agreement was completed, with a final settlement on March 3, 2025, resulting in the receipt of an additional **685,934 shares**[102](index=102&type=chunk)[141](index=141&type=chunk) - Net cash from operating activities increased by **$28.7 million to $63.0 million**, primarily due to a reduction in the net use of working capital compared to the prior year[143](index=143&type=chunk) - Interest expense decreased by **$3.0 million** year-over-year due to voluntary debt prepayments and a lower interest rate from refinancing the 2021 Term Loan in October 2024[128](index=128&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=32&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk from its variable-rate 2021 Term Loan, with a **$693.3 million** outstanding balance as of March 31, 2025, where a **1% change** in interest rates would impact annual interest expense by approximately **$6.9 million** - The company is exposed to interest rate risk from its variable-rate 2021 Term Loan, with an outstanding balance of **$693.3 million** at March 31, 2025[162](index=162&type=chunk)[163](index=163&type=chunk) - A **1% movement** in interest rates is estimated to result in an approximately **$6.9 million** change in annual interest expense[164](index=164&type=chunk) - The company canceled its interest rate swap agreement, which was used to hedge against interest rate fluctuations, at the end of Q3 2024[164](index=164&type=chunk) [Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level as of March 31, 2025[165](index=165&type=chunk) - There were no changes in internal control over financial reporting during the quarter ended March 31, 2025, that have materially affected, or are reasonably likely to materially affect, the company's internal control[166](index=166&type=chunk) [PART II—OTHER INFORMATION](index=33&type=section&id=PART%20II%E2%80%94OTHER%20INFORMATION) [Legal Proceedings](index=33&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary course legal actions, including a class action lawsuit, *Brantley v. City of Gretna*, which has reached a preliminary settlement agreement in April 2025, with estimated losses accrued - The company is subject to legal and regulatory actions that arise from time to time in the ordinary course of business[167](index=167&type=chunk) - In the *Brantley v. City of Gretna* class action lawsuit, the parties entered into a settlement agreement which received preliminary court approval in April 2025, though a final settlement amount has not yet been determined[86](index=86&type=chunk)[168](index=168&type=chunk) - The company has accrued estimated amounts for legal proceedings as of March 31, 2025, within accrued liabilities on the condensed consolidated balance sheets[169](index=169&type=chunk) [Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) This section highlights the material risk of customer concentration, with NYCDOT accounting for **15.4% of total revenue** and three Commercial Services customers collectively representing **37.9% of total revenue** in Q1 2025 - The Government Solutions segment has significant customer concentration, with NYCDOT representing **15.4% of total revenues** for Q1 2025, and the company is currently in contract negotiations for a new five-year agreement[171](index=171&type=chunk) - The Commercial Services segment also experiences customer concentration, with three customers collectively accounting for **37.9% of total revenue** for Q1 2025[172](index=172&type=chunk) - A reduction in demand or loss of one or more of these large customers could have a material adverse effect on the company's business, financial condition, and results of operations[171](index=171&type=chunk)[172](index=172&type=chunk) [Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities](index=34&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) This section details the company's equity purchase activities for the quarter, including the final settlement of an Accelerated Share Repurchase agreement and the remaining authorization for repurchases - The final settlement of the December 2024 Accelerated Share Repurchase (ASR) agreement occurred on March 3, 2025, with the company receiving an additional **685,934 shares**[173](index=173&type=chunk) - As of March 31, 2025, less than **$0.1 million** remained available for repurchase under the existing share repurchase authorization[173](index=173&type=chunk) - There were no sales of unregistered equity securities during the three months ended March 31, 2025[174](index=174&type=chunk) [Defaults Upon Senior Securities](index=34&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reports no defaults upon its senior securities for the period - None[175](index=175&type=chunk) [Mine Safety Disclosures](index=34&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not Applicable[176](index=176&type=chunk) [Other Information](index=34&type=section&id=Item%205.%20Other%20Information) The company reports that none of its directors or executive officers adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during Q1 2025 - During the three months ended March 31, 2025, none of the company's directors or executive officers adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement[177](index=177&type=chunk) [Exhibits](index=35&type=section&id=Item%206.%20Exhibits) This section provides an index of the exhibits filed as part of the 10-Q report, including certifications and Inline XBRL documents - The report includes certifications from the Principal Executive Officer and Principal Financial Officer as required by Section 302 and Section 906 of the Sarbanes-Oxley Act of 2002[180](index=180&type=chunk) - Inline XBRL documents are filed as exhibits with the report[180](index=180&type=chunk)

Exhibit 99.1 Verra Mobility Announces First Quarter 2025 Financial Results MESA, Ariz., May 7, 2025 /PRNewswire/ – Verra Mobility Corporation (NASDAQ: VRRM), a leading provider of smart mobility technology solutions, announced today the financial results for the first quarter ended March 31, 2025. "We delivered a strong first quarter with all key financial measures ahead of our internal expectations," said David Roberts, President and CEO, Verra Mobility. "We are maintaining our Full-Year 2025 financial gui ...

Core Insights - Verra Mobility Corporation reported strong financial results for Q1 2025, exceeding internal expectations and reaffirming full-year guidance despite economic uncertainties [2][4][13] - The company continues to serve as New York City's technology partner for transportation safety programs, with ongoing contract negotiations [2][9] Financial Performance - Total revenue for Q1 2025 was $223.3 million, a 6% increase from $209.7 million in Q1 2024 [5][35] - Net income for Q1 2025 was $32.3 million, or $0.20 per share, compared to $29.1 million, or $0.17 per share, in Q1 2024 [5][35] - Adjusted EPS for Q1 2025 was $0.30, up from $0.27 in Q1 2024 [5][41] - Adjusted EBITDA for Q1 2025 was $95.4 million, compared to $92.8 million in the same period in 2024, with an adjusted EBITDA margin of 43% [5][38] Segment Performance - The Commercial Services segment generated $101.4 million in revenue, a 6% increase from $95.9 million in Q1 2024, with a segment profit margin of 62% [12] - The Government Solutions segment reported $101.8 million in revenue, an 8% increase from $94.2 million in Q1 2024, with a segment profit margin of 29% [12] - The Parking Solutions segment achieved $20.0 million in revenue, a 2% increase from $19.7 million in Q1 2024, with a segment profit margin of 15% [12] Cash Flow and Liquidity - Net cash provided from operations was $63.0 million for Q1 2025, up from $34.3 million in Q1 2024 [5][36] - Free Cash Flow for Q1 2025 was $41.7 million, compared to $20.1 million in the same period last year [5][40] - As of March 31, 2025, cash and cash equivalents were $108.5 million, with net debt at $934.9 million and net leverage at 2.3x [7][44] Full-Year Guidance - The company provided full-year guidance for 2025, expecting total revenue between $925 million and $935 million, adjusted EBITDA of $410 million to $420 million, adjusted EPS of $1.30 to $1.35, and free cash flow of $175 million to $185 million [18][11]

Core Insights - Verra Mobility Corp (VRRM) is positioned to potentially continue its earnings-beat streak in the upcoming report, having surpassed earnings estimates in the last two quarters by an average of 6.61% [1][5]. Earnings Performance - For the last reported quarter, Verra Mobility achieved earnings of $0.33 per share, exceeding the Zacks Consensus Estimate of $0.30 per share, resulting in a surprise of 10% [2]. - In the previous quarter, the company was expected to report earnings of $0.31 per share but delivered $0.32 per share, yielding a surprise of 3.23% [2]. Earnings Estimates and Predictions - Recent estimates for Verra Mobility have been trending upward, with a positive Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat [5][8]. - The current Earnings ESP for Verra Mobility stands at +3.45%, reflecting increased analyst optimism regarding its near-term earnings potential [8]. Zacks Rank and Success Rate - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high probability of another earnings beat, with historical data indicating that stocks with this combination beat consensus estimates nearly 70% of the time [6][8].

Timed with Distracted Driving Awareness Month, the survey found two-thirds of Americans self-reported that they have not driven distracted in the past year, yet 89% witness speeding and reckless driving behavior weekly More than 75% of Americans support automated technology to keep school children safer MESA, Ariz., April 3, 2025 /PRNewswire/ -- Verra Mobility Corporation (NASDAQ: VRRM), a leading provider of smart mobility technology solutions, released results from a survey of 2,000 Americans aged 18+ wh ...