Verra Mobility Q1 2026 Earnings Presentation For the Quarter Ended March 31, 2026
Q1 2026 Financial Highlights
Total Revenue
$224 million; Flat YoY
Adjusted EBITDA1
$86 million; 10% YoY decline
Adjusted EPS1
$0.25; 17% YoY decline
Free Cash Flow1, 2
$10 million in Q126
1 Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EPS, Free Cash Flow, Free Cash Flow Conversion, Net Debt and Net Leverage are non-GAAP financial measures. For a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measure, see the appendix. Page 14 reconciles Adjusted EBITDA; page 16 reconciles Adjusted Net Income and Adjusted EPS; page 17 reconciles Free Cash Flow and Free Cash Flow Conversion and page 18 reconciles net leverage.
2 Free Cash Flow represents Net Cash Provided by Operating Activities, less Capex. Free Cash Flow Conversion represents Free Cash Flow divided by Adjusted EBITDA
New York City Red-Light camera installations drive revenue growth
Government Solutions: 4% YoY service revenue growth driven by NYC red-light camera installations and 12% growth outside of New York City
Commercial Services: (4%) YoY revenue decline impacted by prior period churn in Fleet Management business
Parking Solutions: 6% YoY SaaS and Services revenue growth driven by increased Subscription and Professional Services revenue
Reaffirming 2026 Financial Outlook
Q1 2026 Strategic Highlights
Executed transformation efforts that are expected to yield approximately $10 million in annual cost savings
Cost savings will be re-invested into strategic growth initiatives
Repurchased ~$50 million of stock under the existing $250 million stock repurchase program in Q1 2026; cumulative repurchases of $184 million.
Solid Q1 bookings in Government Solutions - up to $13 million of incremental full run-rate ARR potential bringing trailing twelve months total to about $71 million
Successfully migrated several customers on to the MOSAIC platform
TSA Passenger Volume increased about 1.5 percent compared to Q1 2025
Launch of AutoKinex Virtual Agent, a digital solution designed for rental car companies to allow customers to finish the checkout process, and activate add-on
services directly from the vehicle, in our Commercial Services segment 3
Top-line growth driven by NYC expansion & core market trendsConsolidated - Q1 Results
Total Revenue ($M)
Service Product
Adjusted EBITDA ($M)*
Q1 2025 Q1 2026
Total
-10%
$86
$95
$223
Total
--%
$224
$11 $10
Srvc
+1%
$213
$212
Q1 2025 Q1 2026
Adjusted EPS* Free Cash Flow ($M)*,1
-17%
$0.25
$0.30
$42
-77%
$10
Q1 2026 Free Cash Flow adversely impacted by inventory buildup for NYC in GS and unbilled accounts receivable in CS.
Q1 2025 Q1 2026
Q1 2025 Q1 2026
* Reconciliations of non-GAAP financial measures (Adjusted EBITDA, Adjusted EPS and Free Cash Flow) to the most directly comparable GAAP financial measures are contained in the Appendix. 4
1 Free Cash Flow represents Net Cash Provided by Operating Activities, less Capex.
Revenue growth temporarily impacted by prior period FMC churnCommercial Services - Q1 Results
Total Revenue & YoY Growth
Segment Profit & YoY Growth
$101
Srvc Rev
-4%
Segment Profit
$63 -2%
$62
$98
Q1 2025
Q1 2026
Q1 2025
Q1 2026
Q1 - Key HighlightsFirst quarter Revenue down 4% compared to Q1 2025 due to prior period FMC churn; partially offset by an increase in RAC tolling
RAC tolling revenue up 1% over Q1 2025 due to increased travel volume and product adoption
Core RAC tolling growth was offset by about $2 million due to a non-recurring accounting true-up
Fleet management revenue down 19% ($3.6 million) versus Q1 2025 due to prior period churn
Q1 Segment Profit margins increased 100 basis points compared to Q1 2025 due primarily to volume leverage and lower bad debt expense
Revenue fueled by NYC expansion and core market accelerationGovernment Solutions - Q1 Results
Srvc Rev
+4%
Q1 2026
Q1 2025
Q1 2026
Q1 2025
$21
Segment Profit
-29%
$29
$98
$94
$8 $7
$105
Total Rev
+3%
$102
Service Product Revenue
Segment Profit & YoY Growth
Total Revenue & YoY Growth
Q1 - Key HighlightsService Revenue growth of 4% driven by installation services on new red-light cameras, net of NYC pricing change and 12% growth outside of New York City (new awards & expansion of existing programs)
Q1 Segment Profit margins declined due primarily to New York City pricing change
Solid SaaS and Services Revenue drove Q1 revenue growth
Parking Solutions - Q1 Results
Srvc Rev
+6%
Q1 2026
Q1 2025
Q1 2026
Q1 2025
$3
Segment Profit
+16%
$3
$17
$17
$20
$3
Total Rev
+2%
$20
$4
SaaS & Service Revenue Product Revenue
Segment Profit & YoY Change
Total Revenue & YoY Change
Q1 - Key HighlightsSaaS and Services revenue increased 6% compared to last year; comprised of Subscription and Professional Services growth of 12% compared to the prior year and SaaS revenue growth of 4% compared to the prior year
Q1 Segment Profit margins expanded 210 basis points driven by revenue mix and other one-time items
Capital Summary & Financial Highlights ($M) Net Leverage* Evolution ($M)
March 31, 2026
$935
$893
$843
$972
$1,017
2.0x
2.2x
2.5x
2.3x
2.3x
Cash & Cash Equivalents $47
Debt $1,064
Stockholders' Equity $272
$199
Available Credit (Revolving Credit Facility & accordion feature) 1
Cash & Cash Equivalents $47
Total Available Liquidity $246
Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026
No Debt Maturities until 20291 ($M)
$649
$357
$182
$9
$8
$7
$7
$7
$7
$7
2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
Consistent cash generation maintained consistent leverage levels through Q1 2026* A reconciliation for Net Leverage to the most directly comparable GAAP financial measure is included in the Appendix.
1 Term Loan Debt and ABL Revolver were refinanced in October 2025; new Term Loan maturity is 2032; new Term Loan pricing is Term SOFR + 200 bps. Fixed Rate debt securities priced at 5.500% 8
and due 2029. Maturity schedule excludes repayment of credit revolver balance and Available Credit assumes borrowing base supports full accordion capacity.
Reaffirming 2026 Financial Outlook
2026 Guidance
Expect Total Revenue growth of 5% at the mid-point of guidance
CS driven by expected increased adoption and tolling activity; monitoring travel demand
GS driven by NYC expansion and expected high single-digit growth outside of NYC
PS (T2) driven by expected growth in Subscription and Professional Services
In millions, except per share data
Total Revenue $1,020 - $1,030
Adjusted EBITDA $405 - $415
Commentary
CS … MSD expected growth
GS … High-end of MSD growth expected (GS Service Rev expected to grow HSD) PS (T2) … MSD expected growth
Adjusted EBITDA margin expected to decline about 250 bps due primarily to NYC M/WBE subcontractor costs
Adjusted EPS $1.32 - $1.38 LSD expected growth at the mid-point
Free Cash Flow $150 - $160 FCF conversion of ~38% expected
Well positioned to deliver attractive returns for investors9
Terms that are used on this page are defined on pages 12-13 of this presentation
Additional 2026 Guidance Assumptions2026 fully diluted share count expected to be approximately ~155 million shares (weighted average for the year)
Effective tax rate expected to be 28.0% to 29.0% including State taxes; approximately $50 million expected in 2026 total cash taxes paid
2026 depreciation and amortization expected to be approximately $125 million
2026 total interest expense expected to be about $62 million; ~$60 million in net cash interest paid
2026 change in working capital is expected to result in a use of cash of approximately $20 million
2026 capital expenditures expected to be approximately $125 million - primarily focused on investments for cameras installations and MOSAIC implementation in Government Solutions
Successful outcome of ongoing renewal agreement negotiations with one of our significant Commercial Services customers
10
Appendix11
KEY DEFINITIONSEBITDA and Adjusted EBITDA
We define "EBITDA" as net income adjusted to exclude interest expense, net, income taxes, depreciation and amortization. "Adjusted EBITDA" further excludes certain non-cash expenses and non-recurring items.
Adjusted EBITDA Margin
We define "Adjusted EBITDA Margin" as Adjusted EBITDA as a percentage of total revenue.
Adjusted EPS
We define "Adjusted EPS" as Adjusted Net Income divided by the diluted weighted average shares for the period.
Adjusted Net Income
We define "Adjusted Net Income" as net income adjusted to exclude amortization of intangibles and certain non-cash or non-recurring expenses such as change in fair value of private placement warrants, change in fair value of interest rate swap, loss on extinguishment of debt, among other items.
Annual recurring revenue (ARR)
Annual recurring revenue (ARR) is a key metric that enables measurement of progress in growing our recurring revenue business. ARR represents the annual contract value of all new customer contracts and expansion of programs for existing clients. "Full run-rate ARR" refers to twelve months of recurring service revenue generated upon a contract or program being implemented and operational.
Change in working capital
We define change in working capital as the change in operating assets and liabilities.
Capital expenditures
We define capital expenditures as the purchases of installation and service parts and property and equipment.
Free Cash Flow
We define "Free Cash Flow" as net cash flow provided by operating activities less capital expenditures (purchases of installation and service parts and property and equipment).
Free Cash Flow Conversion
We define "Free Cash Flow Conversion" as Free Cash Flow divided by Adjusted EBITDA.
KEY DEFINITIONS, ContinuedNet Debt
We define "Net Debt" as total long-term debt (including current portion of long-term debt) excluding original issue discounts and unamortized deferred financing costs, less cash and cash equivalents.
Net Leverage
We define "Net Leverage" as Net Debt divided by the trailing twelve months Adjusted EBITDA as of the current quarter-end. The trailing twelve months Adjusted EBITDA is the sum of the year-to-date Adjusted EBITDA reported in the current year and the applicable quarter-to-date Adjusted EBITDA amounts reported in the prior year period (for example, the trailing twelve months Adjusted EBITDA as of June 30, 2025 is the sum of the six months ended June 30, 2025 and the quarters ending December 31, 2024 and September 30, 2024).
Trailing Twelve Months
Trailing Twelve Months or "TTM" refers to the trailing four quarters and is calculated by adding the sum of the current quarter's and the prior three quarters' financial metric being measured.
TSA Volume
TSA passenger volume represents the number of airline passengers passing through Transportation Security Administration checkpoints.
Use of Abbreviations
Throughout this presentation, we use abbreviations including "LSD", "MSD", "HSD", "LDD" and "M/WBE". These abbreviations represent Low-Single digit revenue growth, Mid-Single digit revenue growth, High-Single digit revenue growth, Low-Double digit revenue growth and Minority and Women-Owned Business Enterprise.
Verra Mobility Quarterly Results2024 - Q1 2026
($ in millions) | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | Full Year 2024 | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | Full Year 2025 | Q1 2026 |
Service revenue | $202.7 | $212.0 | $217.3 | $209.7 | $841.7 | $211.9 | $223.5 | $243.2 | $239.8 | $918.1 | $213.4 |
Product sales | 7.0 | 10.4 | 8.3 | 11.8 | 37.5 | 11.4 | 12.5 | 18.7 | 18.3 | $60.9 | $10.2 |
Total revenue | $209.7 | $222.4 | $225.6 | $221.5 | $879.2 | $223.3 | $236.0 | $261.9 | $257.9 | $979.1 | $223.6 |
Cost of service revenue, excluding depreciation and amortization | 4.3 | 4.6 | 5.4 | 4.7 | 19.0 | 4.8 | 4.6 | 9.2 | 11.7 | 30.3 | 7.4 |
Cost of product sales | 5.3 | 7.8 | 5.6 | 8.3 | 27.1 | 8.0 | 8.9 | 12.8 | 15.7 | 45.5 | 8.3 |
Operating expenses | 70.6 | 74.9 | 76.0 | 74.4 | 295.9 | 73.7 | 81.3 | 88.1 | 90.1 | 333.3 | 86.0 |
Selling, general and administrative expenses | 48.2 | 46.3 | 47.9 | 52.6 | 195.1 | 51.5 | 48.5 | 47.6 | 67.6 | 215.2 | 40.8 |
Depreciation, amort, impairment and (gain) loss on disposal of assets, net | 27.0 | 27.5 | 26.7 | 124.9 | 206.1 | 27.8 | 29.5 | 29.3 | 29.8 | 116.3 | 29.3 |
Total costs and expenses | $155.4 | $161.3 | $161.7 | $264.9 | $743.2 | $165.9 | $172.8 | $187.1 | $214.8 | $740.7 | $171.8 |
Income (loss) from operations | 54.4 | $61.2 | $63.9 | ($43.4) | $136.0 | $57.4 | $63.2 | $74.8 | $43.0 | $238.4 | $51.8 |
Interest expense, net | 19.6 | 18.8 | 18.7 | 16.7 | 73.9 | 16.6 | 16.6 | 16.4 | 15.0 | 64.6 | 15.4 |
Gain on interest rate swap | - | .02 | - | - | - | - | - | - | - | - | |
Change in fair value of private placement warrants | - | - | - | - | - | - | - | - | - | - | |
Tax receivable agreement liability adjustment | - | - | - | (0.3) | (0.3) | - | - | - | 0.7 | 0.7 | |
Loss on interest rate swap | (0.4) | - | 0.9 | - | 0.5 | - | - | - | - | - | |
Loss on extinguishment of debt | 0.6 | - | 0.0 | 1.1 | 1.7 | .03 | .02 | .02 | 1.3 | 1.3 | |
Other income, net | (4.5) | (5.2) | (4.3) | (5.0) | (19.0) | (4.1) | (6.0) | (6.3) | (6.8) | (23.2) | (4.1) |
Total other expenses | $15.4 | $13.6 | $15.4 | 12.6 | 56.9 | 12.6 | 10.6 | 10.1 | 10.1 | 43.4 | 11.3 |
Income (loss) before income taxes | 39.0 | 47.6 | 48.5 | (55.9) | 79.1 | 44.8 | 52.6 | 64.7 | 32.9 | 195.0 | 40.5 |
Income tax provision | 9.8 | 13.4 | 13.8 | 10.7 | 47.7 | 12.5 | 14.0 | 17.8 | 14.0 | 58.3 | 13.7 |
Net (loss) income | $29.1 | $34.2 | $34.7 | ($66.7) | $31.4 | $32.3 | $38.6 | $46.8 | $18.9 | $136.6 | $26.7 |
Bridge to adj. EBITDA | |||||||||||
Net (loss) income | $29.1 | $34.2 | $34.7 | ($66.7) | 31.4 | 32.3 | 38.6 | 46.8 | 18.9 | 136.6 | $26.7 |
Interest expense, net | 19.6 | 18.8 | 18.7 | 16.7 | 73.9 | 16.6 | 16.6 | 16.4 | 15.0 | 64.6 | 15.4 |
Income tax provision (benefit) | 9.8 | 13.4 | 13.8 | 10.7 | 47.7 | 12.5 | 14.0 | 17.8 | 14.0 | 58.3 | 13.7 |
Depreciation and amortization | 26.9 | 27.5 | 26.6 | 27.5 | 108.5 | 27.5 | 29.2 | 28.5 | 28.9 | 114.1 | 29.2 |
EBITDA | $85.5 | $93.9 | $93.8 | ($11.7) | $261.5 | $89.0 | $98.3 | $109.6 | $76.8 | $373.7 | $85.1 |
Transaction and other related | 1.5 | 0.1 | 2.5 | 1.2 | 5.4 | - | 1.1 | - | 6.3 | 7.4 | - |
Transformation expense | (0.0) | 1.6 | 1.0 | 1.9 | 4.4 | - | (1.4) | 0.3 | 10.3 | 9.1 | (6.1) |
Legal accrual/settlement | - | - | - | 8.3 | 8.3 | - | - | (1.5) | - | (1.5) | - |
Loss on extinguishment of debt | 0.6 | - | 0.0 | 1.1 | 1.7 | .03 | .02 | .02 | 1.3 | 1.3 | - |
Goodwill Impairment | - | - | - | 97.1 | 97.1 | - | - | - | - | - | - |
Gain or Loss on interest rate swap | (0.4) | (0.0) | 0.9 | - | 0.5 | - | - | - | - | - | - |
Tax receivable agreement liability adjustment | - | - | - | (0.3) | (0.3) | - | - | - | 0.7 | 0.7 | - |
Stock-based compensation | 5.6 | 6.6 | 6.4 | 4.4 | 23.0 | 6.5 | 7.3 | 5.0 | 6.5 | 25.2 | 7.0 |
Adjusted EBITDA | $92.8 | $102.2 | $104.7 | $102.0 | $401.6 | $95.4 | $105.3 | $113.3 | $101.8 | $415.9 | $86.0 |
Adjusted EBITDA Margin % | 44% | 46% | 46% | 46% | 46% | 43% | 45% | 43% | 39% | 42% | 38% |
($ in millions) | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | Full Year 2024 | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | Full Year 2025 | Q1 2026 |
Total Revenue | |||||||||||
Commercial Services | $95.9 | $104.0 | $109.1 | $98.7 | $407.7 | $101.4 | $109.0 | $117.3 | $108.1 | $435.8 | $97.8 |
Segment Profit | |||||||||||
Commercial Services | $60.8 | $69.5 | $72.9 | $64.6 | $267.8 | $63.1 | $72.0 | $78.3 | $69.1 | $282.5 | $61.8 |
Segment Results of Operations Commercial Services
Government Solutions
($ in millions) | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | Full Year 2024 | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | Full Year 2025 | Q1 2026 |
Total Revenue | |||||||||||
Government Solutions | $94.2 | $97.7 | $95.9 | $103.2 | $390.9 | $101.8 | $107.1 | $122.6 | $129.2 | $460.7 | $105.3 |
Segment Profit | |||||||||||
Government Solutions | $29.2 | $29.9 | $28.1 | $34.6 | $121.7 | $29.4 | $30.1 | $31.3 | $31.1 | $121.9 | $20.8 |
Parking Solutions
($ in millions) | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | Full Year 2024 | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | Full Year 2025 | Q1 2026 |
Total Revenue | |||||||||||
Parking Solutions | $19.7 | $20.7 | $20.6 | $19.7 | $80.6 | $20.0 | $19.9 | $22.1 | $20.6 | $82.6 | $20.4 |
Segment Profit | |||||||||||
Parking Solutions | $2.8 | $2.8 | $3.7 | $2.8 | $12.2 | $2.9 | $3.2 | $3.7 | $1.6 | $11.5 | $3.4 |
Verra Mobility Adj. Net Income and Adjusted EPS Reconciliations
(in $MM, except per share data) | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 |
Net Income | $32.3 | $38.6 | $46.8 | $18.9 | $26.7 |
Amortization of intangibles | 16.7 | 16.4 | 15.6 | 15.6 | 15.6 |
Transaction and other related expenses | - | 1.1 | - | 6.3 | |
Transformation expenses | - | (1.4) | 0.3 | 10.3 | 4.2 |
Legal accrual/settlement | - | - | (1.5) | - | (10.3) |
Goodwill impairment | - | - | - | - | - |
Tax settlement payment related to a prior acquisition | - | - | - | 0.7 | - |
Tax receivable agreement liability adjustment | - | - | - | - | - |
Tax receivable agreement imputed interest | - | - | - | - | - |
Loss on extinguishment of debt | 0.0 | - | 0.0 | 1.3 | - |
Change in fair value of interest rate swap | - | - | - | - | - |
Stock-based compensation | 6.5 | 7.3 | 5.0 | 6.5 | 7.0 |
Total adjustments before income tax effect | 23.2 | 23.4 | 19.4 | 40.7 | 16.5 |
Income tax effects on adjustments | (6.7) | (6.8) | (5.6) | (11.2) | (4.6) |
Total adjustments after income tax effect | 16.5 | 16.6 | 13.8 | 29.4 | 11.9 |
Adjusted Net Income | $48.8 | $55.2 | $60.6 | $48.3 | $38.6 |
Adjusted EPS | $0.30 | $0.34 | $0.37 | $0.30 | $0.25 |
Diluted weighted average shares outstanding | 162,066 | 161,543 | 161,861 | 159,713 | 153,689 |
Annual estimated effective income tax rate | 29% | 29% | 29% | 29% | 28% |
($MM) 2022 | 2023 | 2024 | 2025 | Q1 2026 |
TTM | ||||
Net cash provided by operating $ 218 | $206 | $224 | $256 | $234 |
Purchases of installation and service parts and property and equipment (48) | (57) | (71) | (119) | (129) |
Free Cash Flow $ 170 | $149 | $153 | $137 | $105 |
activities
Adjusted EBITDA1 | $ 339 | $372 | $402 | $416 | $406 |
Free Cash Flow Conversion %2 | 50% | 40% | 38% | 33% | 26% |
1 See slide 14 for a reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure.
2 Free Cash Flow Conversion is calculated as Free Cash Flow divided by Adjusted EBITDA
Verra Mobility Net Debt and Net Leverage Reconciliation($MM) | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 |
2021 Term Loan, due 2028 | $693 | $691 | $689 | $687 | $685 |
Plus: Senior Notes, due 2029 | $350 | $350 | $350 | $350 | $350 |
Plus: Credit Revolver | - | - | - | - | $26 |
Plus: Sale-leaseback financing | - | - | - | - | $3 |
arrangement | |||||
Long-term Debt, excluding original | |||||
issue discounts and unamortized | $1,043 | $1,041 | $1,038 | $1,037 | $1,064 |
deferred financing costs |
Less: Cash and Cash Equivalents | $108 | $148 | $196 | $65 | $47 |
Net Debt | $935 | $893 | $843 | $972 | $1,017 |
Divided by: Trailing Twelve Months Adjusted EBITDA* | $404 | $407 | $416 | $416 | $406 |
Net Leverage | 2.3x | 2.2x | 2.0x | 2.3x | 2.5x |
* A reconciliation for the four quarters comprising Trailing Twelve Months Adjusted EBITDA is contained on slide 14 in the Appendix. Trailing Twelve Months or "TTM" refers to the trailing four 18
quarters and is calculated by adding the sum of the current quarter's and the prior three quarters' financial metric being measured.
Thank Youhttp://ir.verramobility.com/
| Attention: This is an excerpt of the original content. To continue reading it, access the original document here. |
Attachments
- Original document
- Permalink
Disclaimer
Verra Mobility Corporation published this content on May 06, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 06, 2026 at 23:03 UTC.
