Verra Mobility(US:VRRM)2025-10-29 20:14Financial Performance - Total revenue for Q3 2025 was $261.9 million, a 16% increase from $225.6 million in Q3 2024[6] - Net income for Q3 2025 was $46.8 million, or $0.29 per share, compared to $34.7 million, or $0.21 per share in Q3 2024[6] - Adjusted EBITDA for Q3 2025 was $113.3 million, with an adjusted EBITDA margin of 43%[10] - Service revenue increased to $243.2 million in Q3 2025, up 11.9% from $217.3 million in Q3 2024[44] - Net income for Q3 2025 was $46,839,000, a 35% increase from $34,732,000 in Q3 2024[50] - EBITDA for Q3 2025 reached $109,620,000, compared to $93,847,000 in Q3 2024, reflecting a 16.8% growth[50] - Revenue for the nine months ended September 30, 2025, was $721,217,000, up from $657,707,000 in the same period of 2024, marking a 9.6% increase[50] Cash Flow and Debt - Free Cash Flow for Q3 2025 was $49.0 million, down from $85.1 million in the prior year[10] - Cash and cash equivalents as of September 30, 2025, were $196.1 million, up from $77.6 million at the end of 2024[41] - Cash, cash equivalents, and restricted cash at the end of Q3 2025 totaled $200,299,000, down from $213,213,000 at the end of Q3 2024[52] - Long-term debt as of September 30, 2025, was $1.03 billion, slightly down from $1.03 billion at the end of 2024[41] - Total long-term debt as of September 30, 2025, was $1,029,938,000, slightly down from $1,034,211,000 at the end of 2024[56] - Net debt decreased to $842,708,000 from $968,008,000, resulting in a net leverage ratio of 2.0x compared to 2.4x previously[56] Guidance and Future Outlook - The company is increasing its full-year 2025 revenue guidance to a range of $955 million to $965 million[16] - Preliminary outlook for 2026 anticipates mid-single digit total consolidated revenue growth[18] - Future guidance includes expectations for continued growth in service revenue and potential risks related to government contracts and competitive procurement processes[24] Segment Performance - Government Solutions segment revenue increased by 28% to $122.6 million, driven by the NYCDOT red-light expansion program[10] - NYCDOT red-light camera expansion is expected to generate approximately $30 million in revenue for 2025[13] Stockholder and Equity Information - The company authorized a share repurchase program of up to $250 million[14] - The company reported a total stockholders' equity of $403.1 million as of September 30, 2025, up from $265.1 million at the end of 2024[41] Other Financial Metrics - Adjusted EBITDA for the nine months ended September 30, 2025, was not quantitatively reconciled to GAAP due to the "unreasonable efforts" exception[28] - Credit loss expense for Q3 2025 was $4,521,000, significantly higher than $2,119,000 in Q3 2024, indicating increased risk[50] - Interest expense decreased from $19.6 million in Q1 2024 to $16.6 million in Q1 2025, indicating a reduction of approximately 15.3%[57] - Total depreciation and amortization for 2024 was $108.5 million, with an increase to $112.8 million projected for 2025[57] - Stock-based compensation for 2024 amounted to $23.0 million, with a slight increase to $23.1 million expected in 2025[58] Impairments and Expenses - The company incurred a goodwill impairment of $97.1 million in Q4 2024 related to its Parking Solutions segment[57] - Transaction and other related expenses for 2024 totaled $5.4 million, primarily for potential acquisitions and debt modification costs[57] - Transformation expenses for 2024 were $4.4 million, reflecting costs related to employee separation and exit activities[57] - Income tax provision for Q4 2024 was $10.8 million, with a total of $47.7 million for the year[57] - The company reported an EBITDA of $(11.7) million in Q4 2024, with a total EBITDA of $261.5 million for the year[57]