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].