Verra Mobility Announces Fourth Quarter and Full Year 2024 Financial Results

Core Insights - Verra Mobility Corporation reported solid financial results for Q4 and full year 2024, driven by strong earnings and cash flow generation, with resilient travel demand supporting growth in Commercial Services and Government Solutions [2][5][6] Financial Highlights - Full year 2024 revenue reached $879.2 million, an 8% increase from $817.3 million in 2023, with service revenue growth of 7% [5][15] - Q4 2024 total revenue was $221.5 million, a 5% increase compared to $211.0 million in Q4 2023, with service revenue growth of 4% [6][15] - Full year net income was $31.4 million, or $0.19 per share, down from $57.0 million, or $0.36 per share in 2023, primarily due to a $97.1 million goodwill impairment in the Parking Solutions segment [5][15] - Adjusted EBITDA for 2024 was $401.6 million, up from $371.5 million in 2023, with an adjusted EBITDA margin of 46% [15][20] Segment Performance - The Commercial Services segment generated $98.7 million in revenue for Q4 2024, a 4% increase from $94.5 million in Q4 2023, with a segment profit margin of 65% [6][15] - The Government Solutions segment reported $103.2 million in revenue for Q4 2024, a 10% increase from $94.0 million in Q4 2023, with a segment profit margin of 34% [6][15] - The Parking Solutions segment experienced a 13% decrease in revenue to $19.7 million in Q4 2024, with a segment profit margin of 14% [6][7] Cash Flow and Liquidity - Net cash provided from operations for the full year 2024 was $223.6 million, an increase from $206.1 million in 2023 [5][15] - Free Cash Flow for 2024 was $152.8 million, compared to $149.1 million in 2023 [15][44] - As of December 31, 2024, cash and cash equivalents were $77.6 million, with net debt at $968.0 million and net leverage at 2.4x [9][15] Share Repurchase Program - In 2024, the company repurchased approximately 1.5 million shares for $35.8 million and authorized an additional $100 million for share repurchases [11][12] 2025 Guidance - For fiscal year 2025, the company expects total revenue between $925 million and $935 million, adjusted EBITDA of $410 million to $420 million, and adjusted EPS of $1.30 to $1.35 [20][15]