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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.
Verra Mobility
Verra Mobility
Verra Mobility Revenue by Segment
Revenue by Segment
Commercial Services Revenue
CapyFin.comGovernment Solutions Revenue
CapyFin.comParking Solutions Revenue
CapyFin.com 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.
- Working capital changes forecasted to result in a $15M cash outflow.