Mar 31

Verra Mobility Q1 2025 Earnings Report

Reported financial results for the first quarter ended March 31, 2025

Key Takeaways

Verra Mobility delivered a strong first quarter in 2025 with key financial measures exceeding internal expectations, including total revenue of $223.3 million, net income of $32.3 million, and adjusted EBITDA of $95.4 million. The company reaffirmed its full-year 2025 guidance.

Total revenue in Q1 2025 was $223.3 million, a 6% increase compared to Q1 2024.

Net income for Q1 2025 was $32.3 million, or $0.20 per share.

Adjusted EBITDA was $95.4 million for Q1 2025, with an Adjusted EBITDA margin of 43%.

Net cash provided from operations increased significantly to $63.0 million in Q1 2025 from $34.3 million in Q1 2024.

Total Revenue
$223M
Previous year: $210M
+6.4%
EPS
$0.3
Previous year: $0.27
+11.1%
Adjusted EBITDA
$95.4M
Previous year: $92.8M
+2.9%
Adjusted EBITDA Margin
43%
Previous year: 44%
-2.3%
Net Cash from Operations
$63M
Previous year: $34.3M
+83.4%
Cash and Equivalents
$108M
Previous year: $150M
-27.5%
Free Cash Flow
$41.7M
Previous year: $20.1M
+108.1%
Total Assets
$1.64B
Previous year: $1.77B
-7.2%

Verra Mobility

Verra Mobility

Verra Mobility Revenue by Segment

Forward Guidance

Verra Mobility reaffirmed its full-year 2025 financial guidance, including expectations for total revenue, Adjusted EBITDA, Adjusted EPS, and Free Cash Flow.

Positive Outlook

  • Reaffirming 2025 full year guidance for all financial measures.
  • Expected weighted average fully diluted share count of approximately 163 million for the full year 2025.
  • Expected effective tax rate (including state taxes) of 28.5% to 29.5%.
  • Expected total cash taxes of approximately $65 million in 2025.
  • Expected total interest expense, net of approximately $70 million.

Challenges Ahead

  • Recognizing the uncertainty of the economic environment.
  • Potential impact on future travel demand.
  • Risk of trending towards the lower-end of the previously provided ranges for full-year guidance.
  • Expected change in working capital to result in a use of cash of approximately $15 million for 2025.
  • Expected capital expenditures of approximately $90 million for 2025.