During the initial 67-day pilot, the devices recorded 469 violations, an average of seven per day, at a single bus stop. The pilot was featured in The Boston Globe's 2023 coverage (BostonGlobe.com). Somerville now has 25 SafetySticks in service. At one stop, violations fell from 68 in June to 14 in September. Lynn: Following the Beacon In Lynn, Jessica Chiappini, parking director for the city, launched a SafetyStick deployment roughly a year behind Somerville. The city is seeing similar results. In November ...

Core Insights - The new automated photo enforcement contract with the New York City Department of Transportation is expected to have a five-year term with a potential five-year renewal, valued at approximately $963 million [35][36][37] - Annual service revenue is projected to grow from about $135 million in 2024 to between $165 million and $185 million by 2027, with additional product revenue from the city’s equipment purchases expected to add $20 million to $30 million in both 2026 and 2027 [1][36] - The red light camera expansion program is anticipated to generate $30 million in revenue in 2025, with $10 million from product revenue and $20 million from installation services [5][30] Financial Performance - Total revenue for Q3 2025 increased by 16% year-over-year to $262 million, with all business segments meeting or exceeding internal plans [8][20] - Adjusted EPS for Q3 2025 rose by 16% compared to the prior year, driven by operating performance and reduced interest expenses [22][30] - Government Solutions revenue grew by 28% year-over-year, with a 46% increase in revenue from New York City, primarily due to new red light camera installations [10][26] Segment Insights - Government Solutions service revenue increased by 19% year-over-year, while Commercial Services revenue rose by 7% [21][26] - T2 Systems, the Parking Solutions business, saw a 7% revenue increase, driven by a 3% rise in SaaS and services revenue and a 30% increase in product revenue [15][27] - The company anticipates Government Solutions to grow in the low to mid-teens for total revenue in 2025, driven by new camera installations [32][36] Legislative Impact - Recent legislation in California is expected to add an incremental $140 million to the total addressable market, increasing the potential market to approximately $365 million, with the possibility of expanding to $500 million with further legislation [11][12] - The company is actively pursuing contracts in California, including a school bus stop arm program and a speed program in various cities [13][76] Future Outlook - The company expects total consolidated revenue growth to moderate to mid-single digits in 2026, with adjusted EBITDA margins anticipated to decline by 250 to 300 basis points due to the New York City renewal contract [16][39] - The company plans to invest in a new smart mobility platform, Mosaic, which is expected to drive margin expansion and productivity improvements starting in 2027 [41][42] - A $150 million increase in the stock repurchase program has been authorized, bringing the total to $250 million, reflecting confidence in long-term growth [19][44]

Financial Data and Key Metrics Changes - Consolidated revenue growth of 5% in Q4 2024, adjusted EBITDA increased by 12%, and adjusted EPS rose by 38% compared to the prior year [8][30] - Free cash flow for Q4 was $22 million, slightly above expectations, with a net leverage of 2.4x at year-end [8][46] - Reported a net loss of $67 million for Q4, primarily due to a $97 million goodwill impairment charge [33][34] Business Line Data and Key Metrics Changes - Commercial Services revenue and segment profit increased by approximately 4% year-over-year, impacted by a $3 million prior period adjustment related to tolling activity [9][31] - Government Solutions service revenue grew by 5% year-over-year, with a significant increase in segment profit by 44% [10][41] - T2 Parking Solutions revenue declined by about 13% due to lower professional services and one-time hardware sales, with segment profit dropping to $3 million [11][43] Market Data and Key Metrics Changes - TSA passenger volume increased by about 5% in 2024, indicating strong leisure and business travel demand [12] - Cashless toll penetration increased from 67% to about 70% in 2024, with 14 new cashless toll roadways opened [14] - New legislation in 2024 is expected to create a total addressable market of approximately $185 million, with potential expansion to over $300 million [15][16] Company Strategy and Development Direction - The company aims to stabilize the Parking Solutions business in 2025, with expectations of flat revenue and a focus on rejuvenating the sales funnel [23] - Continued investment in capital allocation, with $200 million deployed for share repurchases in 2024 [24] - The company anticipates revenue growth consistent with a long-term outlook of 6% to 8%, albeit at the low end of that range for 2025 [26][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in resilient travel demand and ongoing strength in Commercial Services [27] - The company expects strong sales bookings in Government Solutions to drive solid revenue growth in the foreseeable future [28] - Management remains optimistic about achieving long-term revenue and adjusted EBITDA targets set for 2026 [60] Other Important Information - The company recorded a non-cash impairment of goodwill related to the T2 business to align carrying value with the current environment [21][44] - The company has maintained significant liquidity with an undrawn credit revolver and successfully reduced borrowing costs through debt repricing [46][49] Q&A Session Summary Question: Follow-up on Commercial Services business and travel trends - Management indicated that TSA performance is expected to average 102.5% for 2025, with a seasonal ramp-up anticipated [65][66] Question: Update on Government Services business and contract win rates - Management noted they are winning more than their fair share of contracts and expect revenue to build over the next 12 to 18 months [71][72] Question: Timing for clarity on NYC RFP outcome - Management stated that clarity on the NYC RFP is expected in Q2, dependent on the city's decision-making [81] Question: Confidence in Parking Solutions business turnaround - Management expressed confidence based on market growth and new leadership's execution capabilities [112][113] Question: M&A opportunities and share repurchase strategy - Management confirmed they remain opportunistic on share repurchases, contingent upon the M&A pipeline [116]