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Dec 31, 2025
Verra Mobility Q4 2025 Earnings Report
Verra Mobility reported strong fourth quarter 2025 results with 16% revenue growth and a significant improvement in net income compared to the prior year.
Key Takeaways
Verra Mobility concluded fiscal year 2025 with robust execution, driven by a 16% increase in Q4 revenue to $257.9 million. The company saw significant growth in its Government Solutions segment due to the NYCDOT red-light expansion. While net income improved to $18.9 million from a loss in the prior year, Adjusted EBITDA remained flat at $101.8 million due to increased implementation costs.
Total revenue for Q4 2025 increased 16% year-over-year to $257.9 million.
Government Solutions segment revenue grew 25% to $129.2 million, fueled by NYC Department of Transportation contracts.
The company repurchased $133.4 million of common stock during the fourth quarter.
A new five-year contract was secured with the NYCDOT with a total value of $998 million starting in 2026.
Revenue by Segment
Forward Guidance
Verra Mobility established fiscal year 2026 guidance reflecting continued growth and the impact of the new NYCDOT contract.
Positive Outlook
- Expected total revenue between $1.02 billion and $1.03 billion.
- Adjusted EBITDA projected between $405 million and $415 million.
- Adjusted EPS forecasted in the range of $1.32 to $1.38.
- Free Cash Flow expected to be between $150 million and $160 million.
- New $998 million contract with NYCDOT provides long-term revenue visibility.
Challenges Ahead
- Effective tax rate expected to be between 28.0% and 29.0%.
- Capital expenditures expected to be approximately $125 million due to camera installations.
- Working capital expected to result in a cash use of approximately $20 million.
- Depreciation and amortization expense expected to be approximately $125 million.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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