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Dec 31, 2024
Verra Mobility Q4 2024 Earnings Report
Verra Mobility reported a net loss for Q4 2024 due to an impairment charge, despite revenue and adjusted EPS growth.
Key Takeaways
Verra Mobility's Q4 2024 revenue increased by 5% year-over-year to $221.5 million, driven by growth in the Commercial Services and Government Solutions segments. However, the company reported a net loss of $66.7 million, primarily due to a $97.1 million goodwill impairment in the Parking Solutions segment. Adjusted EPS improved to $0.33 from $0.24 in Q4 2023, and adjusted EBITDA grew to $102.0 million.
Total revenue increased by 5% year-over-year to $221.5 million.
Net loss of $66.7 million due to a $97.1 million goodwill impairment.
Adjusted EPS increased to $0.33 from $0.24 in Q4 2023.
Free cash flow improved to $21.6 million from $19.2 million.
Revenue by Segment
Forward Guidance
Verra Mobility expects continued revenue growth in 2025, driven by resilient travel demand in Commercial Services and expansion in Government Solutions.
Positive Outlook
- Revenue projected to reach $925M to $935M in FY 2025.
- Adjusted EBITDA expected to be between $410M and $420M.
- Adjusted EPS guidance set at $1.30 to $1.35.
- Free cash flow projected between $175M and $185M.
- Net leverage expected to decrease to approximately 2.0x.
Challenges Ahead
- Higher interest expense estimated at $70M for FY 2025.
- Depreciation and amortization expenses expected to reach $110M.
- Cash taxes projected at $65M, increasing tax burden.
- Capital expenditures expected to rise to $90M.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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