VRRM

Verra Mobility’s stock price has taken a beating over the past six months, shedding 75.4% of its value and falling to $4.65 per share. This might have investors contemplating their next move. Is now the time to buy Verra Mobility, or should you be careful about including it in your portfolio? Check out our in-depth research report to see what our analysts have to say, it’s free. Despite the more favorable entry price, we’re cautious about Verra Mobility. Here are three reasons why VRRM doesn’t excite us, plus one stock we’d rather own. Forecasted revenues by Wall Street analysts signal a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite. Over the next 12 months, sell-side analysts expect Verra Mobility’s revenue to drop by 8.8%, a decrease from its 19.4% annualized growth for the past five years. This projection doesn’t excite us and indicates its products and services will face some demand challenges. Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses — everything from the cost of goods sold to advertising and wages. It’s also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes. Analyzing the trend in its profitability, Verra Mobility’s operating margin decreased by 9 percentage points over the last five years. This raises questions about the company’s expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. Its operating margin for the trailing 12 months was 13.6%. If you’ve followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can’t use accounting profits to pay the bills. As you can see below, Verra Mobility’s margin dropped by 21.2 percentage points over the last five years. If its declines continue, it could signal increasing investment needs and capital intensity. Verra Mobility’s free cash flow margin for the trailing 12 months was 9.6%. Verra Mobility isn’t a terrible business, but it doesn’t pass our bar. After the recent drawdown, the stock trades at 4.8× forward P/E (or $4.65 per share). While this valuation is fair, the upside isn’t great compared to the potential downside. We’re fairly confident there are better investments elsewhere. We’d recommend looking at an all-weather company that owns household favorite Taco Bell. ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

Verra Mobility’s second quarter was marked by notable progress in customer retention, but the market reacted sharply to its revised outlook. Management attributed Q2’s performance to a catch-up in New York City camera installations and improved collections in commercial services, with interim CEO Jon Keyser highlighting new multi-year agreements with both Avis Budget Group and Hertz as critical to stabilizing the business. However, Keyser acknowledged the company is navigating a challenging transition period, stating, “These contracts were executed at lower pricing levels than our existing relationships,” which weighed on profitability and investor sentiment. Is now the time to buy VRRM? Find out in our full research report (it’s free). Revenue: $263.6 million vs analyst estimates of $254 million (11.7% year-on-year growth, 3.8% beat) Adjusted EPS: $0.38 vs analyst estimates of $0.33 (15.1% beat) Adjusted EBITDA: $110.7 million vs analyst estimates of $100.2 million (42% margin, 10.4% beat) The company dropped its revenue guidance for the full year to $955 million at the midpoint from $1.03 billion, a 6.8% decrease Management lowered its full-year Adjusted EPS guidance to $1.14 at the midpoint, a 15.6% decrease EBITDA guidance for the full year is $365 million at the midpoint, below analyst estimates of $382.1 million Operating Margin: -12.4%, down from 26.8% in the same quarter last year Market Capitalization: $726.5 million While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Tomohiko Sano (JPMorgan) asked about the circumstances behind Avis’s initial termination notice and what led to the contract renewal. Interim CEO Jon Keyser emphasized the importance of listening to customer concerns and rebuilding trust at the executive level to secure the extension. Tomohiko Sano (JPMorgan) followed up regarding the key economic changes in the Avis and Hertz renewals, specifically around pricing and volume flexibility. CFO Craig Conti confirmed the new contracts are on less favorable terms, with customers able to modulate fleet volumes, but declined to disclose specifics. Daniel Joseph Moore (CJS Securities) inquired if new contracts included minimum volume floors that would provide revenue visibility. Conti stated he could not disclose contract details but noted the company maintains daily engagement with customers to forecast demand. Daniel Joseph Moore (CJS Securities) pressed for details on the Los Angeles government contract and its revenue potential. Keyser responded that the award could add approximately $10 million in annual recurring revenue once finalized, and highlighted the importance of legislative action in unlocking new opportunities. Faiza Alwy (Deutsche Bank) questioned whether lower commercial margin levels are now the norm or if cost initiatives could offset the decline. Conti indicated margins will remain pressured in the near term but reiterated ongoing efforts to optimize the cost base and improve profitability longer term. In the coming quarters, the StockStory team will be watching (1) the practical impact of the new Avis and Hertz agreements on both revenue stability and margin trajectories, (2) measurable progress on cost reductions and operational transformation, especially in non-labor categories, and (3) the ramp-up of government safety programs, including the Los Angeles rollout. Execution on AI integration and any shifts in parking solutions strategy will also be key indicators of future performance. Verra Mobility currently trades at $4.82, down from $5.61 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members). WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 5:00 p.m. ET Vice President of Investor Relations - Mark Zindler Interim Chief Executive Officer - Jon Keyser Chief Financial Officer - Craig C. Conti Chief Customer Officer - Stacey Moser Operator: 1. Good day, and welcome to the Verra Mobility Second Quarter 26 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. You will then hear an automated message advising your hand is raised. To withdraw your question, press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker, Mr. Mark Zindler, Vice President of Investor Relations. Please go ahead. Mark Zindler: Thank you. Good afternoon, and welcome to Verra Mobility's second quarter 2026 Earnings Call. Today, we will be discussing the results announced in our press release issued after the market close along with our earnings presentation, which is available on the Investor Relations section of our website at ir.veramobility.com. With me on the call are Jon Keyser, Verra Mobility's interim chief executive officer and Craig C. Conti, our chief financial officer. John will begin with prepared remarks, followed by Craig, and then we will open up the call for Q&A. Management may make forward looking statements during the call regarding future events and expectations anticipated future trends, and the anticipated future performance of the company. We caution you that such statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Actual results may differ materially from those projected in the forward looking due to a variety of risk factors. These factors are described in our SEC filings. Please refer to our earnings press release and earnings presentation for our cautionary note on forward looking statements. Any forward looking statements that we make on this call are based on our beliefs as of today, and we do not undertake any obligation to update forward looking statements. Finally, during today's call, we will refer to certain non GAAP financial measures. A reconciliation of these non GAAP measures to the most directly comparable GAAP measures is included in our earnings release and quarterly earnings presentation. Both of which can be found on our website at ir.veramobility.com. With that, I will turn the call over to John. Jon Keyser: Thanks, Mark, and good afternoon, everyone. This is my first earnings call as interim CEO of Verra Mobility. I want to start by saying thank you to our shareholders. I appreciate the opportunity to speak with you today. Having served Verra Mobility in several leadership roles, I know our business, our people, and the value we provide to our customers. I also recognize the responsibility that comes with leading the company at this important moment. And my approach to leading Verra Mobility is straightforward. Establish clear priorities, act decisively, communicate candidly, and deliver on our commitments. These principles have guided me throughout my career. From my service as a military officer in which I served in combat in wars in Iraq and Afghanistan, Through my extensive legal career as a mergers and acquisitions attorney, and roles at large multinational corporations, my time as Verra Mobility's chief legal officer, and also leading market expansion for our government safety business via our government relations function. And my experience as Verra Mobility's chief transformation officer. My leadership has been developed and battle tested in times of crisis when the stakes are high. And although the ultimate stakes in business are clearly not the same as they are in war, some leadership principles transcend military service and leadership in business. On my first day as CEO, I set up a series of leadership principles and I discussed them with our employees. Those included integrity first, customer centricity, acting with urgency, and the belief that technology, like AI, is a force multiplier. I shared these principles as a guide to how our leaders will lead, how we will make decisions, and how we will hold ourselves accountable. And I am very pleased to say that over the last few months, we have been building momentum. We have achieved great wins and we have been putting those principles into action. So I have 3 immediate priorities for our company. First, we are working hard to broaden and deepen our customer relationships. Second, we are spending a lot of time realigning our cost structure and improving how we operate. And third, positioning Verra Mobility for future growth and long term value creation. Stacey Moser: We have already made tangible progress against each of these priorities since I stepped into the interim CEO role at the end of May. Jon Keyser: So let me start with customer relationships. Beginning with our tolling and large fleet customers. Verra Mobility operates at the center of a complicated multi jurisdictional mobility ecosystem. We connect rental car companies, large fleet operators, governmental tolling authorities, and millions of drivers. We manage vehicle identification, toll transactions, violations, payments, data, and customer service, across a large number of locations. And that capability has been developed over decades. And we believe it is very difficult to replicate at scale. The clearest example of our focus on customer relationships is our new agreement with Avis Budget Group. Following ABG's termination notice in May, we listened carefully to their concerns and strategic priorities. And we rapidly deployed teams from across our organization to develop a path forward. And I am pleased to report as we said in our press release on July 28, we have reached an agreement with ABG on the key contractual terms for a new 7 year tolling and violation services contract extending a relationship that had already spanned nearly 2 decades. I believe this is a really important outcome for Verra Mobility. It demonstrates the value of our technology for our customers and our ability to listen to our customers and adapt to their needs. And I want to say thank you to Avis Budget Group for their renewed faith in us and the new relationship we are building together, including at the most senior levels of both companies. Now I also realized there have been many questions about the approaching expiration date from our contract with Hertz. Today, I am also pleased to announce that we have entered into a new 5 year agreement with Hertz that provides long term visibility for both companies and establishes a strong foundation for the next phase of our relationship. Hertz is an important and long standing customer with highly engaged and a very talented team that is modernizing, strengthening, and building Hertz's business. And I am honored that they have chosen to extend their relationship with us And I believe this is a vote of confidence in Verra Mobility's technology operating capabilities, integrations and scale, as well as the work that our teams have done to develop a more flexible and customer focused partnership. And I want to thank the senior leadership at Hertz for their collaboration and trust in Verra Mobility as a technology partner for years to come. So together, ABG and Hertz agreements represent meaningful progress towards stabilizing our commercial services customer base. We are thrilled to continue to provide Verra Mobility's capabilities and expertise at scale to help our customers mitigate risk and achieve success. Respect to some key developments in our government safety business, I would like to highlight that we announced that we were recently selected as the automated speed safety vendor for the city of Los Angeles, California. And as we zoom out for a moment, we are negotiating and hope to finalize that contractual agreement And once completed, I will be proud to say that with the passage of Assembly Bill 645 in California, which authorized speed enforcement in the state Verra Mobility will have been selected as the technology partner for 6 out of the 6 cities that were authorized by that legislation. Verra Mobility is honored to serve these customers and help them achieve their goals for safer, more efficient transportation, and our shared mission of saving lives. And as we discussed in our national stop on red press release on Monday, 1 of the most important rewarding, aspects of our work is seeing the real world impact of our technology. Across the communities we serve, we are seeing measurable improvements in driver behavior and roadway safety, including a 28% reduction in red light violations within the first 60 days of San Jose's program and a nearly 50% decline in traffic fatalities in Merced. Reinforcing that automated safety enforcement is 1 of the most effective tools available to make roads safer to help save lives. And our focus on customers extends well beyond individual contract negotiations In June, we appointed Stacey Moser as chief customer officer and unified our sales, account management, and marketing leadership across our largest commercial and government businesses. This change creates a stronger, more consistent voice of the customer within Verra Mobility and allows us to identify issues earlier, respond more quickly, and bring the full breadth and capabilities of our company to every customer relationship. Because to me, customer centricity also requires that our leadership team responsible for product and engineering, operations, and our unified customer facing organization be as close as possible to the CEO So we are dramatically improving our customer centricity and that is gonna be 1 of the primary measures of success for this new organization. Our structure going forward. Over the past several months, our board's trans transformation advisory committee has also worked with management on a review of our organization, our operating model, and strategic priorities. That work reinforced an important conclusion. While Verra Mobility has historically been organized around separate business units, we increasingly operate as 1 integrated mobility technology company. And doing so is a far more efficient way to operate. Our customers do not think in terms of reporting segments. They come to Verra Mobility to help solve problems related to-- regardless of whatever product, technology, or service delivers the solution. Increasingly, our competitive advantage comes from a combination of our technologies, our customer relationships, and our operational capabilities, not from individual business lines. So that reality is reflected in how we are managing the company. We are confident in our continued transformation and that it will enable faster decision making greater operational leverage, and even stronger customer experience. So after increasing our customer focus, the second major priority we identified in our leadership transition has been furthering our transformation efforts by realigning our cost structure and improving how we operate. Consistent with the leadership principle I discussed earlier, our organization acted with urgency. We completed the principal labor and certain nonlabor cost out cost takeout efforts in a rapid fashion that was made possible by the transformation of work that we started months prior. This was also benefited by the interaction between management and the transformation advisory committee. These decisions are always difficult. They affected capable colleagues who made meaningful contributions to Verra Mobility and we did not take these decisions lightly. But the actions were necessary. They were necessary to help us align our organization and cost structure more with our current priorities speed decision making and accountability, and to ensure we have an organization that is poised for future growth and success. We have now moved into the next phase of the program with an increased focus on non labor spending, third party costs, procurement, organizational complexity, and opportunities to further improve the efficiency of our processes. And while we transform to reduce lower value and duplicative activity, we believe strongly in investing in technology. Investing in product development, and investing in customer service and implementation capabilities. To me, transformation cannot be a series of isolated cost actions. It must be a disciplined, sustained effort to improve how we allocate resources how we prioritize, and how we serve our customers and generate returns and new growth. And that is exactly what we are doing. Now I want to spend a moment on AI. In the last couple of months, our transformation has been pursuing 2 principal bodies of work related to AI. The first is using AI to improve how variability operates. We are now evaluating, experimenting with using AI that can help us accelerate software development, automate repetitive work, improve forecasting, identify operational abnormalities, and help employees analyze information more quickly. Our objective in deploying AI is not simply to deploy new technology for the sake of technology. it is to improve the speed, consistency, and quality of our work and allow our employees to spend more time on customers, complex decisions, and innovation. The second body of work is incorporating AI into more deeply into the products and services that we provide. This is critical to how I see the future of Verra Mobility. Verra Mobility operates 1 of the largest connected transportation technology platforms in North America. Across our network, more than 28 thousand intelligent edge sensors like cameras, radars, LiDAR, and monitoring sensors capture real world transportation activity. We process over 230 million toll transactions and 56 million traffic events annually. We issue approximately 50 million parking permits and support these operations with more than 16 thousand connected devices. So this combination of connected infrastructure and sensors proprietary transportation data, and mission critical software creates a unique foundation for AI. Unlike organizations that are just beginning to collect data, on a rolling basis, we have over 10 petabytes of transportation data, and we had years of operational intelligence generated through real world customer workflows at significant scale. Over time, we believe AI will allow us to transform this data into increasingly valuable insights. Improving image and sensor interpretation, predicting operational conditions before they occur, understanding changes in conditions, optimizing transportation and enforcement operations, automating complex decision making, and delivering more intelligent software and edge hardware for our customers. We believe this positions Verra Mobility not only to improve the efficiency of our own operations, but also to create a new generation of AI enabled transportation solutions that strengthen customer outcomes improve roadway safety, increase the long term value of our technology platform, and ultimately help save lives. Now, before I turn it over to Craig, I want to say a heartfelt thank you to our employee population. While I have been out on the road visiting and engaging with our customers, I have also been traveling to many of our sites across the U.S. with all levels of employees. This has been a difficult past few months, and our employees have responded with resiliency and confidence. Their hard work and dedication energizes me, inspires the rest of our executive team. And at Verra Mobility, we are 1 team. So with that, I will turn the call over to Craig to discuss our second quarter financial results our outlook and the financial implications of the actions that we have underway. Craig? Craig C. Conti: Thank you, John, and good afternoon, everyone. As John outlined earlier, second quarter reflected strong execution across the business. I will spend the next few minutes walking through the financial results, discussing performance across each of our businesses and then updating our outlook for the balance of the year. Let's turn to Slide 4, which outlines the key financial measures for the consolidated business for the second quarter. Our Q2 performance was ahead of internal expectations with total revenue, adjusted EBITDA dollars, margin and adjusted EPS landing stronger than expected. Our results were bolstered by New York City camera installation timing, operational improvements across the enterprise, and strong advancements in commercial services collection performance. Let me begin with our revenue performance. Government solution service revenue increased 17% in the quarter driven by New York City camera installations and 8% growth outside of New York City. Within New York City, incremental net new camera installation growth exceeded the updated contract pricing change. Generating 36% service revenue growth in the second quarter versus last year. As you may recall from our last discussion, inclement Q1 weather drove a delay in our expected installation volumes under our new expansion contract. Our team is fully caught up with the second quarter, and we are now back to where we originally expected to be by the close of the first half of 26. Commercial services revenue returned to growth increasing 6% year over year driven by strength in both rental car tolling and fleet management. Total parking solution service revenue increased about 1% primarily on SaaS revenue Total product revenue was $17 million for the quarter, Government solutions contributed roughly $14 million and T2 delivered about $3 million in product sales overall for the quarter. Consolidated adjusted EBITDA for the quarter was $111 million stronger than our internal expectations and largely driven by the New York City camera installations I mentioned earlier. We reported a GAAP net loss of $48 million for the quarter, which reflects a non cash goodwill and intangible asset impairment charge of $104 million for the carrying value of T2 Systems. The tax provision of about $6 million after adjusting for the impairment and other nonrecurring expenses represents a normalized effective tax rate of about 28%. GAAP diluted EPS loss was $0.32 per share the second quarter of 26 compared to $0.24 of income per share for the prior year period. Adjusted EPS, which excludes amortization stock based compensation, and other nonrecurring items, was $0.38 per share for the second quarter this year. Compared to $0.34 per share in the second quarter of 2025. The adjusted EPS favorability versus prior year was driven by the increase in adjusted EBITDA and a reduction in shares outstanding. Partially offset by increased depreciation expense. Another point John emphasized was the resiliency of our business model. And our cash generation during the quarter continued to reflect that strength. Cash flows provided by operating activities totaled $56 million and we delivered $33 million of free cash flow for the quarter, which was in line with our internal expectations. Stacey Moser: Next, I will step through the performance of each of our businesses, beginning with Commercial Services on slide 5. Craig C. Conti: CES year over year revenue increased 6% in the second quarter. RAC tolling revenue increased 5% over the same period last year driven by increased product adoption and tolling activity. Despite a 1% decrease in U.S. travel volume over the prior year quarter. Our FMC business increased 3% or about $1 million year over year more than offsetting the prior period churn we experienced in the second quarter of last year. 100 basis points over the prior year, driven by operating leverage and continued success in lowering bad debt expense on improved cash collections. Stacey Moser: Turning to Slide 6, Government solutions service revenue increased 17% in the quarter driven by New York City camera installations and 8% growth outside of New York City. Craig C. Conti: Total revenue grew 20% over the prior year quarter as product revenue increased about $4 million year over year. Government Solutions segment profit was $31 million for the quarter representing margins of approximately 24%. The decline in segment profit margins is primarily attributable to the New York City pricing change. While this represents a reduction in segment profit margins over the prior year, this performance was better than expected due to the pacing of the New York City camera installations I discussed earlier. Additionally, we generated another strong quarter of contracted bookings in Government Solutions, reflecting continued demand from municipalities seeking technology solutions that improve roadway safety and traffic management. During the second quarter, we booked $25 million of new annual recurring revenue and contract awards. Stacey Moser: Notable bookings were concentrated in several work zone speed and school bus stop arm programs. Over the trailing 12 months, new incremental ARR bookings totaled approximately $74 million reflecting sustained demand and stronger conversion across our pipeline. Let's turn to Slide 7 for a review of the results of Parking Solutions. Craig C. Conti: We generated revenue of $20 million and segment profit of approximately $2 million for the quarter. SaaS and services sales increased about 1% compared to the prior year, while product revenue was effectively flat compared to 2025. Parking Solutions segment profit margins declined 65 basis points versus last year driven primarily by product sales mix and the timing of operating expenses. Okay. Let's turn to Slide 8 and discuss the balance sheet and take a closer look at leverage. We ended the quarter with a net debt balance of about $1 billion which declined sequentially due to second quarter free cash flow. Net leverage landed at 2.4 times, which reflects the full in quarter repayment of our credit revolver which is 100% undrawn at present. Consistent with John's comments regarding disciplined capital allocation, we have $66 million available under our $250 million share repurchase authorization. However, our priority today remains strengthening the balance sheet while maintaining financial flexibility through building cash reserves. Finally, let me turn to our outlook for the remainder of 2026. As John discussed earlier, our business continues to perform well operationally. However, the recently completed Avis Budget and Hertz renewals include revised commercial terms that are materially less favorable to us than the prior agreement and affect our financial outlook. Accordingly, we have updated our full year guidance as follows. We expect total revenue in the range of $945 million to $965 million. Expect adjusted EBITDA in the range of $360 million to $370 million or an adjusted EBITDA margin of about 38%. Importantly, as discussed earlier, the changes to our outlook are largely attributable to revised pricing associated with the Avis Budget and Hertz renewal agreements, Our underlying operating performance across the business remains consistent with our expectations. Expect 2026 non GAAP adjusted EPS to be in the $1.11 to $1.17 per share. And lastly, free cash flow is expected to be in the range of $105 million to $115 million for 2026. The free cash flow guide anticipates higher CapEx spending versus prior guidance, driven by the accelerated timing of the Los Angeles Metro contract award and several accelerated school bus stop arm awards. The vast majority of the CapEx will be spent in government solutions to implement newly awarded photo enforcement programs. Additionally, we anticipate a $30 million use of working capital primarily related to both our recent RAC contract renewals and the timing and of expenditures and collections of our ongoing installation in New York City. Stacey Moser: Moving on to the segment level. For total year 2026, we expect Government Solutions is expected to generate the high end of mid single digit total revenue growth. Which reflects the blended growth rate across the segment. Including low double digit revenue growth for service revenue outside of New York City, and high single digit growth for total revenue within New York City as new expansion installs and product sales more than offset price normalization. Overall product revenue for GS is expected to be roughly flat. The outlook for GS margins is unchanged. We expect segment profit margins to contract by approximately 450 to 500 basis points compared to 2025. Primarily due to the New York City renewal contract. Including service pricing adjustments from the competitive procurement process and the inclusion of minority and women owned subcontractor requirements by the city of New York. We expect third quarter margins to contract to comparable levels as Q1 then ramp up to the mid-20s by Q4 26 fueled by volume leverage. Mosaic cost savings and school bus stop arm seasonality. We still expect GS margins to land in the low twenties overall for total year 2026 consistent with what we shared on our prior calls. Craig C. Conti: Consistent with John's earlier comments regarding our long term customer partnerships, we are very pleased to announce both the renewed Avis Budget and Hertz agreements and look forward to expanding on our partnership with each of these long standing and highly valued customers. While the new agreements provide greater contractual visibility over term, they were executed at lower pricing levels than our existing relationship and include an option for the customers to modulate their fleet volume. Additionally, we have reduced our full year TSA assumption such that full year volume is expected to be around flat with 2025. Stacey Moser: Representing a 1% to 1.5% reduction from our prior TSA assumption. Craig C. Conti: As a result, commercial services revenue growth is expected to decelerate over the back half of the year in each of the third and fourth quarters, and we expect the overall growth will be in the high single digit range for the year in total versus 2025. CS segment profit margins are expected to contract over the balance of the year as well with the full year total expected to be in the low 60% range. We continue to anticipate that Parking Solutions revenue will be up low to mid single digits versus 2025 levels, driven by growth in SaaS, subscription, and professional services offerings. Lastly, we expect parking solutions margins to be slightly accretive to 2025. As John discussed earlier, we have taken action to realize the cost reduction initiatives that we committed to earlier this year. In total, this represents about $20 million of annualized cost that we expect to take out of the business. I would expect to generate full run rate savings beginning in 2027. Other key assumptions supporting our adjusted EPS and free cash flow outlook can be found on Slide 10. Before I wrap up, I would like to briefly touch on our segment reporting. As John discussed earlier, we are continuing to evolve how we manage the business. As part of that process, we are evaluating whether changes to our organizational structure and the way our leadership team reviews financial performance could affect our operating and reportable segments. For the second quarter, nothing has changed. We continue to report our results as we have historically. This evaluation is still underway. And if it ultimately results in a change to our segment reporting, including potentially reporting as a single operating and reportable segment, we would communicate that at the appropriate time and recast prior period information as required. Before I turn it back to John for his closing comments, I will add that our second quarter results demonstrate the operational momentum John described earlier. While we have updated our outlook to reflect the economics of 2 important customer renewals, the underlying execution across the business remains strong. Our balance sheet continues to strengthen and we remain focused on disciplined execution during the second half of the year. John? Back over to you. Jon Keyser: Thanks, Craig. Let me close by returning to the commitments we made when I assumed the CEO role. First, we said we would broaden and deepen our customer relationships. And what do we do? Well, I would highlight that we have reached a new 7 year agreement with ABG and renewed Hertz under a new 5 year agreement. We are also awarded the new contract in the city of Los Angeles, which once operational will represent 1 of the largest speed enforcement programs that we have in Verra Mobility. Second, we said we would accelerate our transformation with urgent focus on organizational changes to make us faster and more efficient. And we have realigned the customer organization. We have combined and catalyzed the product and engineering organizations. We completed significant cost out actions and established clear operating accountability. We are igniting the use of AI to help us improve our operations in the products and services we offer to our customers in the future, And while these are important early steps, we believe the results of these swift actions will help create stability, predictability, and shareholder value. I intend to continue to leave Verra Mobility with deliberate intent to make this company more focused more efficient, and more of a transportation technology leader. And when we do that, I believe we will create value for our shareholders. So thank you again for your time and attention today. And at this time, I would like to invite Sheri to open the line for any questions. Operator: Thank you. To withdraw your question, press 11 again. Our first question will come from the line of Tomohiko Sano with JPMorgan Your line is open. Tomohiko Sano: Hello, and congratulations, Jon, on the new role Thank you very much, Tomohiko. Jon Keyser: Appreciate that. Tomohiko Sano: On the Avis contracts, could you please walk us through the circumstances that led to the initial termination notice and then what were the primary factors that ultimately drove Avis to resend the notice and enter into an extensions, please? Jon Keyser: Thank you. Yeah. So, Tomohiko, what I would say is, you know, as we disclosed we received a termination notice from the customer. That was deeply disappointing, of course. And then, after a series of leadership changes, you know, I took it upon myself and the management team to get together and we reapproached Avis and we listened We have, you know, 1 mouth and 2 ears, and so we approached that long held customer with that in mind. We better understood what they were trying to do and I am very pleased to say that we after a series of meetings and negotiations built, I think, what is a very, very strong basis for what I call a constructive long term relationship going forward that takes into account their strategic priorities, and also the values the work that Verra Mobility does, the value of our technology platform. And, the way we operate to help them, de-risk the operations that they do and deliver better services to their customers. So I think that speaks again, you know, the value of broadening and deep deepening our customer relationships. it is a very, very large focus for me and for the organization. Tomohiko Sano: Thank you, John. And then follow-up following the Avis and Hertz renewals, could you summarize the key economic changes versus the prior agreement like pricing, any variable components, and volume assumptions. And if you could give us any updates, with the enterprise as well. Thank you. Craig C. Conti: Hey, Tomohiko. it is Craig. I will let John come in at the end, and give you some perspective on enterprise. But let me start with you know, everything we said was really in our prepared remarks, but I will go ahead and summarize that. You know? So Hertz is a is a 5 year extension that was obviously done early. That was not done, and it was not up for negotiation till summer of 27. As John mentioned, ABG is a 7 year deal. Look. I wanna say it again financially. We are thrilled to partner with both of these customers. And we could not be happier. If I think about kind of what we said in the script and what we said in our earnings release, you know, we talked about that they are on less favorable terms. We talked about that there may be some ability to modulate some of the volumes. that is something I think if you listen to the public statements from some of our customers, they mentioned that on their call. But here's what I would say. Is you know, we have had these customers for 20 years, as John mentioned. We are in daily contact with our customers. Fleet volumes have always been important to us, and, obviously, that is how they run their business. So I think we will have a pretty good idea of what is going on for at least the near term And I think the other thing is as we gain experience under the new contracts, we will be able to better be positioned to give some-- you know, maybe a little further down the road, but some of that I cannot today And then I would say, total, and I can imagine that this question would come up quite a bit today is for competitive reasons. You know, we cannot disclose, anything what is going on between our customers But, again, from our view, I think these contracts really strike the right balance of competitive pricing and, you know, pricing at a differentiated value of what we do at Verra. Scale, reliability, and innovation. The contracts are unique. They are tailored to each customer. I do not know that is necessarily new. They have always kind of been that way. And then I would say the final thing, long standing, very, very deeply integrated partnerships, which I think were really strengthened, as we had a leadership change here at Variability, and I think you can see the results. Jon Keyser: John, you wanna say something about enterprise? Yeah. Sure. You know, I am very, very impressed by the enterprise mobility team and what they are doing. You know, I would also just mention that, you know, we are engaged in positive discussions with them. You know, and I think that, you know, for all of our large rental car customers, something that I think is rather defining is we are engaging with, these large customers at the most senior levels in their businesses. They are also recognizing that they can use us as a as an accelerator in their business, particularly with respect to technology. We are a technology leader here, and I feel really comfortable with where we are taking these relationships. We are providing, new technology avenues for them to continue to have more success in their businesses as they are also trying to transform. They have very complex businesses to run. And, and my goal and our company's goal is to make sure that we are helping make their lives easier and, helping improve their end-customer experiences And that when we do that, we are gonna have a great degree of mutual success. So you know, really proud of, the way we are refocusing the organization here, to deliver a more customer focused and customer centric experience for our customers. Tomohiko Sano: Thank you, Craig and Jon. Appreciate it. Thank you, Tomohiko Operator: Thank you. 1 moment for our next question. That will come from the line of Daniel Moore with CJS Securities. Your line is open. Daniel Joseph Moore: Thank you. Good afternoon, John. Good afternoon, Craig. Appreciate all the color this afternoon. Stacey Moser: Wanted to I know you are limited, but maybe ask 1 or 2 more questions about the new contracts and then move on. Daniel Joseph Moore: Are there new floors or minimums in terms of fleet volumes or percentages of customer volumes dedicated to Verra that would provide you some base level of revenue visibility from a budgeting and planning perspective? Craig C. Conti: Yeah. I will start with that 1. I cannot disclose that, Dan. I just cannot, because we have different contracts with different customers. And, you know, we have 1 customer that we are talking to right now, and I just do not wanna speak on behalf of my customers. But here's what I would say on that is you know, we did talk about the fact that there is there is some ability to modulate fleet volume. And I would go back to saying that this is something the addition and contraction of fleets at Rax's how they run their business. Obviously, this may be may run a bit deeper than that, but, we are in daily contact with our customers. Right? We know. We work with them on a daily basis. And I think I think we know how to-- I think we know how to forecast this. As I think about if I wanna take this out a little further, in a couple quarters time with a bit of a course of dealing, I should be able to do that. But right now, as we are in the middle of this, major news out of the company for both of these renewals in just the last couple weeks. The third 1 that we are talking to, I just cannot get into it in an open forum yet. Daniel Joseph Moore: But I appreciate the question. No. Understood. And the changes have gone into effect immediately. Correct? Or there is a delay? Okay. Making sure that I get the revised guide. Okay. Stacey Moser: Maybe just in terms of the city of Los Angeles, can you talk a little bit more about the scope of the revenue opportunity? How would you think about it ramping? Are you selling them or leasing cameras as you traditionally would? Daniel Joseph Moore: You know, and any thoughts about kind of margins relative to where government solutions is currently running? Jon Keyser: Yeah. You bet. Well, I am really excited about what is going on in California. I think you back up for a second, the macros. The setup for the success that I expect and I believe that we will continue to have in that government business is something that started, multiple years ago when I came to this business and identified that there was a massive opportunity there if we helped unlock TAM, unlock new opportunities within the legislatures because many people do not realize this, but photo enforcement programs and automated safety programs are typically authorized or not authorized. As a matter of state statute. So, there has to be legislative authorizing activity in order to have these lifesaving technologies available for the cities and local governments to be able to roll them out. So we work very hard at the government relations function starting many years ago to help expand a massive amount of TAM and frankly that continues to expand. Most recently in California, what I am really excited about is that Assembly Bill 645, which was the legislative authorization that allowed for speed enforcement in California was done so in a, you know, what I think was a prudent manner. The state of California said this is new for us and we are going to roll out a pilot in 6 major cities. And what we have seen so far, you know, is that 6 out of 6 of the cities have selected Verra Mobility as the technology partner, the only credible leader that they believe has the ability to deliver the results that they would know and they would expect So when I think about Dan, when I think about, you know there is only 1 New York City only 1 Los Angeles. And I am really excited to be able to serve that customer. And, we are expecting $10 million in ARR from that agreement once it is finalized. We are working we received a you know, the award from the city and we are working through contract negotiations etcetera, but we are really, really honored to be able to kind of move some of these efforts out west because we know the efficacy of these programs. And it is deeply meaningful to us as a company that we can continue to expand commercially, but also further our critical mission of saving lives. that is very important to us. Daniel Joseph Moore: Really helpful. I am thinking 1 more just because, obviously, there is been a lot of change. Stacey Moser: But maybe it is too early. Daniel Joseph Moore: But given the write down in parking solutions, maybe just, you know, what is what is your sense of the future of that business from your perspective? Is it a vehicle for growth? Or, you know, could it maybe be a divest candidate at some point? Jon Keyser: And, again, really appreciate the all the color to this afternoon. Yeah. Thanks, Dan. I mean, here's what I would say on parking. You know, first, I would acknowledge that, you know, over the over the past couple years, the business has not performed how, you know, I would like to have seen it perform. All that being said, it is growing. And I would say that it is also generating cash. And so, you know, that is part of our portfolio right now. And frankly, I think there is a lot of opportunity to improve that business. And, it is certainly 1 of the areas that we will be focusing on. Thank you again. Daniel Joseph Moore: Thank you. Operator: As a reminder, to ask a question, please press 11. Our next question will come from the line of Faiza Alwy with Deutsche Bank. Your line is open. Faiza Alwy: Yes. Hi. Thank you. John, I wanted to get you a perspective on, you know, what do you think changed over the last few years from either a technology, competitive, or kind of end market perspective? That led to, you know, these contracts being signed at, you know, much more unfavorable terms than before. So yeah, we just love to hear kind of your thoughts on what really happened. Jon Keyser: Yeah. I think I have shared you know, that this was a surprise to us. But here's what I can tell you since I have taken over the role. I now have engaged and our business is engaged with the very best and brightest, highest level of these organizations that we serve. And I think we have now have a much better understand their priorities, how they are making decisions, how they are trying to affect change in their business and going to be their partner, for that. Now, I also think that it is it is really important to know from a Verra Mobility shareholder perspective that we have additional technology that we think is going to help lay basis for, you know, continued future success And truthfully, you know, the fact that we are able to renew these agreements and the fact that we are able to build back the relationship with Avis, I think, is a testament to the soundness of our technology platform and our ability to execute and de-risk what can be very, very problematic in these large fleets which are trying to have renters move through all kinds of different jurisdictions. They receive parking tickets. They receive speeding tickets. Of course, they can go through multiple different toll authorities And when those types of things go wrong, it can be extremely disruptive for those fleets and I am really proud that the most senior levels for these large companies, they look at us and they know with certainty that we are gonna deliver and that our say will match our due when we serve them and continue to bring them to new technology. So I am really excited for our future, Faiza. Faiza Alwy: Alright. And then, I guess, as I think about EBITDA margins for the commercial segment, like do you think that those margins are going to stay at the lower level that is implied by the back half guide? Or do you think that there are some cost initiatives? Like, can you rightsize the cost base just given these new contracts and kind of what are some of the areas of opportunity? Craig C. Conti: Yeah. Faiza, this is Craig. I will take that 1. You know, I am not gonna go beyond 26 right now. We talked about, you know, that our margin percent is gonna be lower than we thought at the beginning of the year. But as I think about it, when we were on the phone maybe 2 months ago, we talked in theory. Right, about, about-- we are going to relook at our cost base. In a very short amount of time we were able to get that to a pretty solid number. We think that is gonna be $20 million potentially or more as we look at our run rate for 2027 And we are not we are not done yet. What I would say is done is when we look at the, you know, the headcount of the company. I mean I think we are pretty much done there, but we are we still have a large opportunity to think about in some of the things that John listed in his prepared remarks about how we source, how we serve customers at the roadside. So there is still more cost to go. So I cannot go out beyond 2026. What I would say is, you know, clearly, there is an impact here, Pfizer. You could see that from the guide and math. But we are not standing still on being able to further optimize the company I think in a very short time, we have put a pretty big number up, that we are continually away at. away on a daily basis. Faiza Alwy: Great. Thank you so much. Operator: Thank you. I am showing no further questions at this time. This concludes today's program. Thank you all for participating. You may now disconnect. Before you buy stock in Verra Mobility, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Verra Mobility wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Verra Mobility (VRRM) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Verra Mobility Corp? Here are five stocks we like better. Second-quarter results exceeded expectations: Revenue growth in Government Solutions and Commercial Services, stronger collections and improved operations helped drive $111 million in adjusted EBITDA and $33 million in free cash flow. However, Verra Mobility recorded a $48 million GAAP net loss after a $104 million non-cash impairment charge tied to T2 Systems. Rental-car contract renewals reduced the outlook: New seven-year and five-year agreements with Avis Budget Group and Hertz provide longer-term visibility but carry less favorable pricing and flexible fleet-volume terms. Verra Mobility now expects 2026 revenue of $945 million-$965 million and adjusted EBITDA of $360 million-$370 million. Growth investments and restructuring continue: The company was selected for automated speed-enforcement programs in Los Angeles and all six California cities authorized under AB 645, while pursuing an expected $20 million in annualized cost savings. Management is prioritizing cash preservation and balance-sheet strength despite having $66 million remaining under its share-repurchase authorization. 3 Stocks You’ll Love to Own, But Hate To Encounter Verra Mobility (NASDAQ:VRRM) reported second-quarter results that exceeded its internal expectations, supported by New York City camera-installation timing, operational improvements and stronger collections in its Commercial Services segment. However, the company lowered its full-year outlook after renewing major rental-car customer agreements on terms that Chief Financial Officer Craig Conti said were materially less favorable than prior contracts. The company announced a new seven-year tolling and violation-services agreement with Avis Budget Group and a new five-year agreement with Hertz. The Avis agreement follows a termination notice received in May, while the Hertz renewal was completed ahead of its expected 2027 renegotiation period. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control Verra Mobility Stock Has Returned Back to the Station “Together, the ABG and Hertz agreements represent meaningful progress towards stabilizing our Commercial Services customer base,” Interim Chief Executive Officer Jon Keyser said. He said the agreements reflect the company’s technology, integrations, operating scale and efforts to establish more flexible, customer-focused partnerships. Government Solutions service revenue increased 17% year over year in the second quarter, driven by New York City camera installations and 8% service-revenue growth outside New York City. Within New York City, service revenue rose 36% from a year earlier as incremental camera installations exceeded the impact of revised contract pricing, Conti said. → 3 Drone Stocks That Should Soar After the Summer Slump If You Hate Speed Cameras, Then You’ll Like Verra Mobility Stock Verra Mobility had experienced weather-related delays in New York City installations during the first quarter, but Conti said the company caught up during the second quarter and returned to its anticipated installation level by the end of the first half. Commercial Services revenue rose 6% year over year, including a 5% increase in rental-car tolling revenue and 3% growth in fleet-management revenue. Rental-car tolling growth was driven by product adoption and tolling activity despite a 1% decline in U.S. travel volume compared with the prior-year quarter. Commercial Services profit margin expanded 100 basis points, aided by operating leverage and lower bad-debt expense from improved collections. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Parking Solutions generated $20 million in revenue and roughly $2 million in segment profit. SaaS and services sales rose approximately 1%, while product revenue was effectively flat. Segment margins declined 465 basis points year over year because of product-sales mix and the timing of operating expenses. Consolidated adjusted EBITDA was $111 million. GAAP net loss was $48 million, reflecting a $104 million non-cash goodwill and intangible-asset impairment charge related to T2 Systems. GAAP diluted loss per share was $0.32, compared with income of $0.24 per share a year earlier. Adjusted EPS was $0.38, compared with $0.34 in the second quarter of 2025. Operating cash flow was $56 million, while free cash flow totaled approximately $33 million. Government Solutions recorded $25 million in new annual recurring revenue and contract awards during the quarter, including work-zone speed and school-bus stop-arm programs. Over the trailing 12 months, new incremental annual recurring revenue bookings totaled about $74 million. Keyser said Verra Mobility was selected as the automated speed-safety vendor for Los Angeles and is negotiating the final contract. He said the company expects approximately $10 million in annual recurring revenue from the agreement once finalized. California Assembly Bill 645 authorized speed-enforcement pilots in six cities. Keyser said Verra Mobility has been selected as technology partner by all six cities authorized under the legislation. The company also cited safety outcomes from existing programs, including a 28% reduction in red-light violations within the first 60 days of San José’s program and a nearly 50% decline in traffic fatalities in Merced. Conti said the Avis Budget and Hertz agreements provide longer contractual visibility but carry lower pricing than the prior arrangements and permit customers to modulate fleet volumes. The new commercial terms took effect immediately. Verra Mobility now expects 2026 total revenue of $945 million to $965 million and adjusted EBITDA of $360 million to $370 million, implying an adjusted EBITDA margin of about 38%. The company forecast adjusted EPS of $1.11 to $1.17 and free cash flow of $105 million to $115 million. The free-cash-flow outlook includes higher capital spending than previously anticipated, primarily for Government Solutions implementation work tied to the accelerated Los Angeles Metro contract award and school-bus stop-arm awards. The company also expects a $30 million working-capital use, largely related to rental-car contract renewals and the timing of New York City installation expenditures and collections. Commercial Services revenue is now expected to decline in the negative high-single-digit range for the full year compared with 2025, as growth decelerates in the third and fourth quarters. The company expects full-year Commercial Services segment margins in the low 60% range. Government Solutions is expected to produce total revenue growth at the high end of the mid-single-digit range for 2026. The company continues to expect segment profit margins to contract by roughly 450 to 500 basis points from 2025, largely due to New York City pricing adjustments and subcontractor requirements. Parking Solutions revenue is projected to rise low to mid-single digits, with margins slightly accretive to 2025. Keyser said Verra Mobility has reorganized its customer-facing operations, appointing Stacey Moser as chief customer officer and unifying sales, account management and marketing leadership across its major commercial and government businesses. The company is also pursuing approximately $20 million in annualized cost reductions, with full run-rate savings expected beginning in 2027. Conti said the principal headcount actions have been completed, while the company continues to examine non-labor spending, procurement, third-party costs, roadside customer service and operational processes. Verra Mobility ended the quarter with approximately $1 billion in net debt and net leverage of 2.4 times. Its credit revolver was fully repaid and undrawn at quarter-end. The company had $66 million remaining under its $250 million share-repurchase authorization, though Conti said the current priority is strengthening the balance sheet and building cash reserves. Management is also evaluating whether its evolving organizational structure could result in changes to operating and reportable segments, potentially including reporting as a single operating and reportable segment. No reporting changes were made for the second quarter. Verra Mobility, traded on the Nasdaq under the ticker VRRM, is a leading provider of smart mobility solutions designed to improve safety, efficiency and compliance for transportation authorities and commercial fleets. The company develops and operates automated traffic enforcement systems, toll and violation management platforms, and connected-vehicle services. Through its technology offerings, Verra Mobility helps public agencies enhance road safety, reduce congestion and streamline revenue collection for tolling and parking. Verra Mobility’s core products include red-light and speed-camera enforcement programs, license plate recognition systems, and cloud-based violation processing software. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Verra Mobility Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

VERRA MOBILITY CORP (VRRM) reported $263.59 million in revenue for the quarter ended June 2026, representing a year-over-year increase of 11.7%. EPS of $0.38 for the same period compares to $0.34 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $253.62 million, representing a surprise of +3.93%. The company delivered an EPS surprise of +15.15%, with the consensus EPS estimate being $0.33. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Verra Mobility performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Revenue- Service revenue: $246.71 million versus $240.65 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +10.4% change. Revenue- Product sales: $16.88 million compared to the $14.04 million average estimate based on three analysts. The reported number represents a change of +34.5% year over year. Revenue- Service revenue- Parking Solutions: $16.62 million versus the two-analyst average estimate of $20.57 million. The reported number represents a year-over-year change of +1%. Revenue- Service revenue- Government Solutions: $115.03 million compared to the $116.64 million average estimate based on two analysts. The reported number represents a change of +17.4% year over year. Revenue- Service revenue- Commercial Services: $115.06 million versus $115.08 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +5.5% change. View all Key Company Metrics for Verra Mobility here>>> Shares of Verra Mobility have returned +32.2% over the past month versus the Zacks S&P 500 composite's +3.5% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report VERRA MOBILITY CORP (VRRM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Total Revenue: $945 million to $965 million for full-year 2026. Adjusted EBITDA: $360 million to $370 million, with an adjusted EBITDA margin of about 38%. Adjusted EPS: $1.11 to $1.17 per share for 2026. Free Cash Flow: $105 million to $115 million for 2026. Q2 Revenue: Government Solutions service revenue increased 17%; Commercial Services revenue increased 6%; Parking Solutions service revenue increased about 1%. Q2 Adjusted EBITDA: $111 million. Q2 GAAP Net Loss: $48 million, including a noncash goodwill and intangible asset impairment charge of $104 million for T2 Systems. Q2 Adjusted EPS: $0.38 per share, compared to $0.34 per share in Q2 2025. Q2 Cash Flow: Operating cash flow of $56 million and free cash flow of $33 million. Commercial Services Segment: RAC tolling revenue increased 5%; FMC business increased 3% year over year; segment profit margins increased 100 basis points. Government Solutions Segment: Total revenue grew 20% year over year; segment profit was $31 million with margins of approximately 24%; booked $25 million of new annual recurring revenue in Q2. Parking Solutions Segment: Revenue of $20 million and segment profit of approximately $2 million; segment profit margins declined 465 basis points. Net Leverage: 2.4 times, with a net debt balance of about $1 billion. Warning! GuruFocus has detected 1 Warning Sign with VRRM. Is VRRM fairly valued? Test your thesis with our free DCF calculator. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Verra Mobility Corp (NASDAQ:VRRM) successfully renewed its contract with Avis Budget Group for a new seven-year term and signed a new five-year agreement with Hertz, securing long-term visibility and stabilizing its commercial services customer base. The company was selected as the automated speed safety vendor for the city of Los Angeles, California, and has been chosen as a technology partner for all six cities authorized under California's Assembly Bill 645, representing a significant growth opportunity. Government Solutions service revenue increased 17% in Q2 2026, driven by New York City camera installations and 8% growth outside of New York City, with the team fully catching up on delayed installation volumes. The company is aggressively pursuing cost reduction initiatives, targeting approximately $20 million in annualized savings, and is exploring AI applications to improve operational efficiency and enhance its product offerings. Verra Mobility Corp (NASDAQ:VRRM) delivered strong Q2 2026 financial results, with total revenue, adjusted EBITDA, and adjusted EPS all exceeding internal expectations, and generated $33 million in free cash flow for the quarter. The company reported strong bookings in Government Solutions, with $25 million in new annual recurring revenue (ARR) contracted during the quarter and approximately $74 million in new incremental ARR over the trailing twelve months. The newly signed Avis Budget and Hertz contracts include revised commercial terms that are materially less favorable to Verra Mobility Corp (NASDAQ:VRRM), leading to a downward revision of the full-year 2026 revenue and adjusted EBITDA guidance. The company recorded a noncash goodwill and intangible asset impairment charge of $104 million related to the carrying value of T2 Systems, resulting in a GAAP net loss of $48 million for the quarter. Commercial Services revenue growth is expected to decelerate in the back half of 2026, with full-year growth projected to be in the negative high-single-digit range due to the impact of the renewed contracts and reduced TSA volume assumptions. Government Solutions segment profit margins declined in Q2 2026 and are expected to contract by approximately 450 to 500 basis points for the full year, primarily due to the New York City renewal contract pricing adjustments. Parking Solutions segment profit margins declined 465 basis points year-over-year in Q2 2026, driven by product sales mix and timing of operating expenses, and the business has not performed as well as expected over the past couple of years. The company anticipates a $30 million use of working capital in 2026, related to the recent RAC contract renewals and the timing of expenditures and collections for the New York City installation work. Q: Following the Avis Budget and Hertz renewals, could you summarize the key economic changes versus the prior agreements, including pricing, variable components, and volume assumptions?A: Craig Conti (CFO): The new agreements, a seven-year deal with Avis Budget Group and a five-year extension with Hertz, were executed at lower pricing levels than the existing relationships and include options for the customers to modulate their fleet volume. For competitive reasons, we cannot disclose specific terms, but the contracts are tailored to each customer and strike a balance between competitive pricing and the differentiated value of our technology, scale, and reliability. We have also reduced our full-year TSA assumption, expecting volume to be around flat with 2025, which represents a 1% to 1.5% reduction from our prior assumption. Q: What were the circumstances that led to Avis Budget's initial termination notice, and what factors drove them to resume the notice and enter into an extension?A: Jonathan Keyser (Interim CEO): After receiving the termination notice, we reapproached Avis with a focus on listening and understanding their strategic priorities. Through a series of meetings and negotiations, we built a strong basis for a constructive long-term relationship that takes into account their needs and the value of our technology platform. The renewal demonstrates the value of our technology and our ability to adapt to customer needs, and we are proud to have extended a relationship that has spanned nearly two decades. Q: Can you provide more detail on the scope of the Los Angeles speed safety contract, the revenue opportunity, and how it will ramp?A: Jonathan Keyser (Interim CEO): We are excited to have been selected as the automated speed safety vendor for the city of Los Angeles, which will be one of our largest speed enforcement programs once operational. We expect approximately $10 million in annual recurring revenue (ARR) from this agreement once finalized. With the passage of Assembly Bill 645 in California, Verra Mobility has now been selected as the technology partner for six out of six cities authorized by that legislation, reinforcing our leadership in the government safety market. Q: Are there new floors or minimums in terms of fleet volumes or percentages of customer volumes dedicated to Verra that would provide base-level revenue visibility?A: Craig Conti (CFO): We cannot disclose specific contract terms as we have different agreements with different customers. However, we are in daily contact with our customers and have a strong understanding of how to forecast their fleet volumes. As we gain experience under the new contracts over the next couple of quarters, we will be better positioned to provide further guidance on revenue visibility. Q: What do you think changed over the last few years from a technology, competitive, or end-market perspective that led to these contracts being signed at much more unfavorable terms?A: Jonathan Keyser (Interim CEO): The renewals were a surprise to us, but since taking over, we have engaged with the highest levels of these organizations and now better understand their priorities and how they are transforming their businesses. The fact that we were able to renew these agreements is a testament to the soundness of our technology platform and our ability to de-risk complex operations for large fleets. We are confident that our technology and customer-centric approach will drive future success. Q: Do you think Commercial Services EBITDA margins will stay at the lower level implied by the back-half guide, or can you rightsize the cost base given the new contracts?A: Craig Conti (CFO): We are not standing still on cost optimization. We have already identified approximately $20 million in annualized cost savings, with full run-rate savings expected in 2027. While we are largely done with headcount reductions, we continue to see opportunities in areas like sourcing and roadside service. We cannot provide guidance beyond 2026, but we are continually working to further optimize the company's cost structure. Q: Given the write-down in Parking Solutions, what is your sense of the future of that business? Is it a vehicle for growth or a potential divestment candidate?A: Jonathan Keyser (Interim CEO): While the Parking Solutions business hasn't performed as well as we would have liked over the past couple of years, it is growing and generating cash. It remains part of our portfolio, and we see significant opportunity to improve the business. It is certainly one of the areas I will be focusing on as we continue our transformation efforts. Q: Can you elaborate on the company's AI strategy and how it will be incorporated into operations and products?A: Jonathan Keyser (Interim CEO): We are pursuing two principal bodies of work related to AI. First, we are using AI to improve our own operations, such as accelerating software development, automating repetitive work, and improving forecasting. Second, we are incorporating AI more deeply into our products and services. With over 10 petabytes of transportation data, 28,000 intelligent edge sensors, and 230 million toll transactions processed annually, we have a unique foundation to create AI-enabled transportation solutions that improve roadway safety and deliver greater value to customers. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

VERRA MOBILITY CORP (VRRM) came out with quarterly earnings of $0.38 per share, beating the Zacks Consensus Estimate of $0.33 per share. This compares to earnings of $0.34 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +15.15%. A quarter ago, it was expected that this company would post earnings of $0.25 per share when it actually produced earnings of $0.25, delivering no surprise. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Verra Mobility, which belongs to the Zacks Internet - Software industry, posted revenues of $263.59 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.93%. This compares to year-ago revenues of $236.02 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Verra Mobility shares have lost about 75.1% since the beginning of the year versus the S&P 500's gain of 13%. While Verra Mobility has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Verra Mobility was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.34 on $262.03 million in revenues for the coming quarter and $1.21 on $986.21 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 44% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. VTEX (VTEX), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This company that helps retailers build e-commerce businesses is expected to post quarterly earnings of $0.04 per share in its upcoming report, which represents a year-over-year change of +100%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. VTEX's revenues are expected to be $64.46 million, up 9.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report VERRA MOBILITY CORP (VRRM) : Free Stock Analysis Report VTEX (VTEX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Total revenue of $263.6 million Net loss of $(48.2) million Net cash provided from operations of $56.4 million Entered into a seven-year contract extension with Avis Budget Group, Inc. Entered into a five-year contract extension with Hertz Revising fiscal year 2026 guidance MESA, Ariz., Aug. 5, 2026 /PRNewswire/ -- Verra Mobility Corporation (NASDAQ: VRRM), a leading provider of smart mobility technology solutions, announced today the financial results for the second quarter ended June 30, 2026. "I am proud of what our team accomplished during the second quarter, delivering revenue and profitability above our internal expectations while continuing to execute well across the business," said Jon Keyser, Interim Chief Executive Officer of Verra Mobility. "During the quarter, we also retained two of our most important customer relationships by extending our long-standing agreements with Avis Budget Group and Hertz. These agreements, together with our selection by the City of Los Angeles to implement California's largest speed safety program, reflect the strength of our technology, our operational capabilities and the trust our customers place in Verra Mobility." "This has been a transformative quarter for our company. On behalf of our leadership team, I want to sincerely thank our employees for embracing change, acting with urgency and re-centering our focus on customer success. Their commitment is helping build a more agile, customer-centric Verra Mobility and positions us for long-term value creation." Second Quarter 2026 Financial Highlights Revenue: Total revenue for the second quarter of 2026 was $263.6 million, an increase of 12% compared to $236.0 million for the second quarter of 2025. Service revenue growth was 10%, driven by 17% growth in our Government Solutions segment and 6% growth in our Commercial Services segment. Government Solutions service revenue growth was driven primarily by a $12.0 million increase in New York City revenues associated with new camera installations, net of pricing changes under the new contract. The remaining $5.1 million in growth is attributable to expansion in bus lane, speed and other services. The increase in Commercial Services revenue was due to increased product adoption and tolling activity compared to the prior year which contributed to a $4.1 million growth in rental car companies ("RACs") tolling revenue, with the remainder primarily driven by higher violations processing. Parking Solutions service revenue increased by $0.2 million compared to the second quarter of 2025, as increased revenue from our software as a service ("SaaS") product offerings was partially offset by decreases in subscription services and professional services revenue related to parking management solutions. Net (loss) income and Diluted Earnings Per Share ("EPS"): Net loss for the second quarter of 2026 was $(48.2) million, or $(0.32) per share, based on 151.9 million diluted weighted average shares outstanding. Net income for the comparable 2025 period was $38.6 million, or $0.24 per share, based on 161.5 million diluted weighted average shares outstanding. The decrease in net income for the second quarter of 2026 was primarily due to impairments on goodwill and intangible assets recorded for the three months ended June 30, 2026 and an increase in operating expenses, partially offset by margins on product sales and installation services and a decrease in selling, general and administrative expenses. Adjusted EPS*: Adjusted EPS for the second quarter of 2026 was $0.38 per share compared to $0.34 per share for the second quarter of 2025. Adjusted EBITDA*: Adjusted EBITDA was $110.7 million for the second quarter of 2026 compared to $105.3 million for the same period in 2025. Adjusted EBITDA Margin* was 42% and 45% of total revenue for the 2026 and 2025 periods, respectively. Net Cash Provided from Operations: Cash provided by operating activities decreased by $18.7 million from $75.1 million for the three months ended June 30, 2025 to $56.4 million for the three months ended June 30, 2026. Net (loss) income quarter-over-quarter decreased by $86.8 million, from $38.6 million in 2025 to $(48.2) million in 2026. The aggregate adjustments to reconcile net (loss) income to net cash provided by operating activities increased $94.3 million mainly due to the impairments on goodwill and intangible assets recorded for the current period, a prior period uncertain tax position reserve release and the mark-to-market adjustment on the share-based proceeds, partially offset by decreases in stock-based compensation, deferred income taxes and credit loss expense. The aggregate changes in operating assets and liabilities decreased by $26.3 million in 2026 compared to the prior year period and were primarily due to an increase in the net use of working capital, of which the majority was attributable to an increase in accounts receivable, unbilled receivables and inventory, partially offset by an increase in accounts payable. Free Cash Flow*: Free Cash Flow was $32.6 million for the second quarter of 2026 compared to $40.3 million for the prior year period. The decline in Free Cash Flow is attributable to the items impacting cash provided by operating activities (as discussed above), partially offset by a reduction in capital expenditures. *Non-GAAP measure; refer to "Non-GAAP Financial Measures" further below for explanatory notes and a reconciliation to the most directly comparable GAAP measure. We report our results of operations based on three operating segments: Commercial Services offers automated toll and violations management and title and registration solutions to rental car companies, fleet management companies and other large fleet owners. Government Solutions delivers automated safety solutions to municipalities, school districts and government agencies, including services and technology that enable photo enforcement cameras to detect and process traffic violations related to speed, red-light, school bus and city bus lane management. Parking Solutions provides an integrated suite of parking software, transaction processing and hardware solutions to universities, municipalities, parking operators, healthcare facilities and transportation hubs in the United States and Canada. Second Quarter 2026 Segment Detail The Commercial Services segment generated total revenue of $115.1 million, a 6% increase compared to $109.1 million in the same period in 2025. Segment profit was $77.2 million, a 7% increase from $72.0 million in the prior year period. The increases in revenue and segment profit compared to the prior year period resulted from increased product adoption and tolling activity compared to the prior year which contributed to a $4.1 million growth in RAC tolling revenue, with the remainder primarily driven by higher violations processing. The segment profit margin was 67% for the second quarter of 2026 and 66% for the second quarter of 2025. Second quarter 2026 segment profit margins benefitted from lower credit loss expense. The Government Solutions segment generated total revenue of $128.5 million, a 20% increase compared to $107.1 million in the same period in 2025. The increase was due to a 17% increase in service revenue over the prior year period, primarily driven by a $12.0 million increase in New York City revenues associated with new camera installations, net of pricing changes under the new contract. The remaining $5.1 million in growth was attributable to an expansion in bus lane and speed camera-related revenue and other services. In addition, product revenue increased approximately $4.3 million from the prior year period. The segment profit was $31.2 million in 2026 compared to $30.1 million in the prior year period with segment profit margins of 24% for 2026 and 28% for 2025. The decline in segment profit margins compared to the prior year period was primarily driven by increased costs to support project implementations and the pricing change under the New York City contract. The Parking Solutions segment generated total revenue of $20.0 million, a 1% increase compared to $19.9 million in the same period in 2025, which was due primarily to an increase in SaaS product offerings, partially offset by decreases in subscription services and professional services revenue related to parking management solutions compared to the prior year period. The segment profit was $2.3 million compared to $3.2 million in the prior year period with segment profit margins of 11% for 2026 and 16% for 2025. Liquidity and Debt: As of June 30, 2026, cash and cash equivalents were $49.6 million and total debt, net was $1,035 million. Net cash provided by operating activities was $56.4 million for the three months ended June 30, 2026, and $97.2 million for the six months ended June 30, 2026. Net Debt and Net Leverage*: As of June 30, 2026, Net Debt was $993.2 million and Net Leverage was 2.4x, as compared to $971.8 million and 2.3x as of December 31, 2025. *Non-GAAP measure; refer to "Non-GAAP Financial Measures" further below for explanatory notes and a reconciliation to the most directly comparable GAAP measure. Change in Executive Leadership and Organizational Realignment On June 1, 2026, we announced that David Roberts had departed as our President and Chief Executive Officer and as a member of our Board of Directors. The Board appointed Jon Keyser, previously our Chief Transformation Officer and Executive Vice President and Chief Legal Officer, as Interim President and Chief Executive Officer and retained an executive search firm to assist with a comprehensive search for a permanent successor. On June 17, 2026, we announced organizational changes intended to accelerate our transformation initiatives, strengthen customer focus and create a more agile and efficient operating model. These changes are intended to build upon a hybrid operating model that centralizes key functions, including Human Resources, Finance, Legal, Government Relations, Engineering and Product Management. Stacey Moser was appointed Chief Customer Officer with responsibility for sales, account management and marketing across our Commercial Services and Government Solutions businesses. We are evaluating the effect of these organizational and internal management reporting changes on our operating and reportable segments. Commercial Services Customer Contracts We announced that one of our three significant Commercial Services customers had issued a notice terminating its contract with us; that customer subsequently withdrew and rescinded the notice and instead entered into a seven-year contract extension on terms materially less favorable to us than the prior agreement, including an option for the customer to modulate its fleet volume. A second significant Commercial Services customer entered into a five-year extension, with options to extend, also on materially less favorable terms and with fleet volume modulation rights. Fluctuations in fleet volume under these arrangements could cause our revenue, results of operations, and cash flows to vary from period to period and could have a material adverse effect on our business, financial condition, and results of operations. Additionally, any future termination of either extended contract could have a material adverse effect on our business, financial condition, and results of operations. Goodwill and Intangible Assets Impairments We recorded a $64.0 million impairment to goodwill in our Parking Solutions segment during the six months ended June 30, 2026, which is presented in a separate line item on the consolidated statements of operations. This was in connection with our 2026 assessment of goodwill impairment which determined that the Parking Solutions reporting unit carrying value exceeded the estimated fair value. As part of this assessment, we determined that the carrying value of certain intangibles within the Parking Solutions segment were not recoverable and recorded a $40.4 million impairment to intangibles in our Parking Solutions segment during the six months ended June 30, 2026, which is presented in a separate line item on the consolidated statements of operations. 2026 Full Year Guidance Any guidance that we provide is subject to change as a variety of factors can affect actual operating results. Certain of the factors that may impact our actual operating results are identified below in the safe harbor language included within Forward-Looking Statements of this press release. We are providing the following forward-looking guidance, which includes Adjusted EBITDA, Adjusted EPS, and Free Cash Flow, all of which are non-GAAP financial measures (defined below). Based on our first half 2026 results and our outlook for the remainder of the year, we are revising our 2026 full year financial outlook to the following: Total Revenue of $945 million to $965 million Adjusted EBITDA of $360 million to $370 million Adjusted EPS of $1.11 to $1.17 Free Cash Flow of $105 million to $115 million Underlying Assumptions for 2026 Full Year Guidance Weighted average fully diluted share count expected to be approximately 153 million shares for the full year 2026 Effective tax rate (including state taxes) is expected to be 28.0% to 29.0%, with approximately $35 million in total cash taxes expected to be paid in 2026. The effective tax rate for non-GAAP adjustments is provided in the Reconciliation of Net Income to Adjusted Net Income and Calculation of Adjusted EPS Depreciation and amortization expense expected to be approximately $120 million for 2026 Total interest expense, net expected to be approximately $62 million, of which approximately $60 million is expected to be net cash interest paid Change in working capital (change in operating assets and liabilities) is expected to result in a use of cash of approximately $30 million for 2026 primarily related to both our recent RAC contract renewals and the timing of expenditures and collections of our ongoing installation work in New York City Capital expenditures (purchases of installation and service parts and property and equipment) are expected to be approximately $135 million for 2026 relating primarily to camera installations and MOSAIC implementation Conference Call Details Date: August 5, 2026Time: 5:00 p.m. Eastern TimeTo access this conference call by telephone, register here to receive dial-in numbers and a unique PIN to join the call.Webcast Information: Available live in the "Investor Relations" section of our website at http://ir.verramobility.com. A replay of the call will also be made available on the Investor Relations website. A copy of the earnings call presentation will be available on the Investor Relations section of our website. About Verra Mobility Verra Mobility Corporation (NASDAQ: VRRM) is a leading provider of smart mobility technology solutions that make transportation safer, smarter, and more connected. The company sits at the center of the mobility ecosystem, bringing together vehicles, hardware, software, data, and people to enable safe, efficient solutions for customers globally. Verra Mobility's transportation safety systems and parking management solutions protect lives, improve urban and motorway mobility, and support healthier communities. The company also solves complex payment, utilization, and compliance challenges for fleet owners and rental car companies. Headquartered in Arizona, Verra Mobility operates in the United States, Australia, Europe, and Canada. For more information, please visit www.verramobility.com. Forward-Looking Statements This press release contains forward-looking statements which address our expected future business and financial performance, and may contain words such as "goal," "target," "future," "estimate," "expect," "anticipate," "intend," "plan," "believe," "seek," "project," "may," "should," "will" or similar expressions. Forward-looking statements include statements regarding changes and trends in the market for our products and services, including expected operating results and metrics, such as revenue growth and expected margins; expansion plans and opportunities; expectations regarding the fluctuations in fleet volume under our arrangements with two of our significant Commercial Services customers; expectations relating to our selection by the City of Los Angeles to implement California's largest speed safety program and the contract with the New York City Department of Transportation ("NYCDOT"); expectations regarding the prospect for long-term renewal with our other significant Commercial Services customer; our ability to improve operational efficiencies, generate cost savings and improve customer centricity; our ability to achieve expected benefits from transformation and strategic initiatives; full year guidance for 2026, including expected total revenue, Adjusted EBITDA, Adjusted EPS, and Free Cash Flow, and the underlying assumptions for the 2026 full-year guidance, including expected weighted average fully diluted share count, effective tax rate and cash taxes, expected depreciation and amortization expenses, expected interest expense, net and total net cash interest, expected change in working capital, expected capital expenditures, and expected operating expenditures; expectations relating to momentum across key growth areas and our pipeline; our ability to meet our long-term outlook; the expected benefits of our smart mobility platform, including margin expansion impact; and expectations concerning our share repurchase program. Forward-looking statements involve risks and uncertainties, and a number of factors could cause actual results to differ materially from those currently anticipated. These factors include, but are not limited to, the impact of negative industry and macroeconomic conditions, including inflation and higher interest rates, the impact of government actions and regulations, such as tariffs, trade protection measures, and military conflicts, on our customers or Verra Mobility; customer concentration in our Commercial Services and Government Solutions segments, including risks impacting these segments such as travel demand and legislation, and the risk of losing a customer; risks related to our contract with NYCDOT, which comprises a material portion of our revenue, including the timing of payments; risks associated with fluctuations in fleet volume under our arrangements with two of our significant Commercial Services customers; risks associated with the renewal of Commercial Services customer agreements or any future termination of any such contracts; risks related to the contractual renewal discussions with our third significant Commercial Services customer; risks and uncertainties related to our government contracts, including legislative changes, termination rights, delays in payments, audits, and investigations; decreases in the prevalence or political acceptance of, or an increase in governmental restrictions regarding, automated and other similar methods of photo enforcement, parking solutions, or the use of tolling; our ability to successfully implement our acquisition strategy or integrate acquisitions; failures in or breaches of our networks or systems, including as a result of cyber-attacks or other incidents; risks and uncertainties related to our international operations and our ability to develop and successfully market new products and technologies into new markets; our failure to acquire necessary intellectual property or adequately protect our intellectual property; our ability to manage our substantial level of indebtedness; our ability to maintain effective internal controls over financial reporting; risks related to our goodwill and intangible assets, which have been subject to impairment and may be subject to further impairment in the future; our ability to properly perform under our contracts and otherwise satisfy our customers; risks associated with the use of artificial intelligence ("AI") and related tools and our ability to achieve expected benefits from AI; our ability to incorporate AI into our business and transform our data into valuable insights, deliver more intelligent software and hardware, improve our efficiency of our operations and create a new generation of AI-enabled transportation solutions that strengthens customer outcomes, improves roadway safety and increases the long-term value of our technology platform; decreased interest in outsourcing from our customers; our ability to keep up with technological developments and changing customer preferences; our ability to compete in a highly competitive and rapidly evolving market; risks and uncertainties related to our share repurchase program; risks and uncertainties related to litigation, including pending securities litigation, and other disputes and regulatory investigations; our reliance on specialized third-party providers; and other risks and uncertainties indicated from time to time in documents we filed or will file with the Securities and Exchange Commission (the "SEC"). In addition, no assurance can be given that any plan, initiative, projection, goal, commitment, expectation, or prospect set forth in this press release can or will be achieved. This press release should be read in conjunction with the information included in our other press releases, reports, and other filings with the SEC. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in our SEC filings, including our 2025 Annual Report on Form 10-K and first quarter 2026 Quarterly Report on Form 10-Q. These forward-looking statements speak only as of the date of this press release and except to the extent required by applicable law, we do not assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events and developments, or otherwise. Understanding the information contained in these filings is important in order to fully understand our reported financial results and our business outlook for future periods. Additional Information We periodically provide information for investors on our corporate website, www.verramobility.com, and our investor relations website, ir.verramobility.com. We intend to use our website including our quarterly earnings presentation as a means of disclosing material non-public information, additional financial and operating metrics and for complying with disclosure obligations under Regulation FD. Accordingly, investors should monitor our website, in addition to following our press releases, SEC filings, public conference calls, webcasts, and social media. In addition, you may enroll to automatically receive e-mail alerts and other information about our company by visiting "Email Alerts" under the "Investor Resources" section of the "Investors" portion of our website. Non-GAAP Financial Measures In addition to disclosing financial results that are determined in accordance with U.S. generally accepted accounting principles ("GAAP"), we also disclose certain non-GAAP financial information in this press release. These financial measures are not recognized measures under GAAP and are not intended to be, and should not be, considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. EBITDA, Adjusted EBITDA, Free Cash Flow, Adjusted Net Income, Adjusted EPS, Adjusted EBITDA Margin, Net Debt, and Net Leverage are non-GAAP financial measures as defined by SEC rules. These non-GAAP financial measures may be determined or calculated differently by other companies. As a result, they may not be comparable to similarly titled performance measures presented by other companies. Reconciliations of these non-GAAP measurements to the most directly comparable GAAP financial measurements have been provided in the financial statement tables included in this press release, and investors are encouraged to review the reconciliations. We are not providing a quantitative reconciliation of Adjusted EBITDA, Adjusted EPS, or Free Cash Flow which are included in our 2026 financial guidance above, in reliance on the "unreasonable efforts" exception for forward-looking non-GAAP measures set forth in SEC rules because certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated without unreasonable effort and expense. In this regard, we are unable to provide a reconciliation of forward-looking Adjusted EBITDA to GAAP net income, Adjusted EPS to net income per share and Free Cash Flow to net cash provided by operating activities, due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. Due to the uncertainty of estimates and assumptions used in preparing forward-looking non-GAAP measures, we caution investors that actual results could differ materially from these non-GAAP financial projections. We use the non-GAAP metrics EBITDA, Adjusted EBITDA, Free Cash Flow, Adjusted Net Income, Adjusted EPS, and Adjusted EBITDA Margin to measure our performance from period to period, to evaluate and fund incentive compensation programs and to compare our results to those of our competitors. We use the non-GAAP metrics Free Cash Flow in connection with managing the business and we use the non-GAAP metrics "Net Debt" and "Net Leverage" to understand our overall leverage position and to evaluate capital allocation decisions. In addition, we also believe that these non-GAAP measures provide useful information to investors regarding financial and business trends related to our results of operations and that when non-GAAP financial information is viewed with GAAP financial information, investors are provided with a more meaningful understanding of our ongoing operating performance, liquidity, and leverage relative to other periods. These non-GAAP measures have certain limitations as analytical tools and should not be used as substitutes for net income, cash flows from operations, earnings per share, other consolidated income, cash flow, or debt data prepared in accordance with GAAP. EBITDA and Adjusted EBITDA We define "EBITDA" as net (loss) income adjusted to exclude interest expense, net, income taxes, depreciation and amortization. "Adjusted EBITDA" further excludes certain non-cash expenses and non-recurring items. Free Cash Flow We define "Free Cash Flow" as net cash flow provided by operating activities less purchases of installation and service parts and property and equipment. Adjusted Net Income We define "Adjusted Net Income" as net (loss) income adjusted to exclude amortization of intangibles and certain non-cash or non-recurring expenses such as loss on extinguishment of debt, among other items. Adjusted EPS We define "Adjusted EPS" as Adjusted Net Income divided by the diluted weighted average shares for the period. Adjusted EBITDA Margin We define "Adjusted EBITDA Margin" as Adjusted EBITDA as a percentage of total revenue. Net Debt We define "Net Debt" as total debt, net 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. Additional Metrics Recurring Revenue or Recurring Service Revenue We define "Recurring Revenue" or "Recurring Service Revenue" as all revenue other than product sales for each of our segments, as we typically generate revenue on a recurring monthly basis under long-term contracts with our customers. This includes our Commercial Services segment where we generate service revenue through processing of tolls, violations, and titles and registrations. Changes in operating assets and liabilities:Accounts receivable(32,412)(23,674)Unbilled receivables(40,858)(2,710)Inventory(9,745)182Prepaid expenses and other assets11,0375,975Deferred revenue(5,009)(56)Accounts payable and other current liabilities22,9317,900Other liabilities4,729(1,683)Net cash provided by operating activities97,246138,113Cash Flows from Investing Activities:Purchases of installation and service parts and property and equipment(55,048)(56,118)Cash proceeds from the sale of assets21199Net cash used in investing activities(54,837)(56,019)Cash Flows from Financing Activities:Borrowings on Amended Revolver110,500—Repayment on Amended Revolver(110,500)—Repayment of term loan debt(3,444)(4,509)Equipment financing arrangements2,908—Repayment of equipment financing arrangements(210)—Payment of debt issuance costs(536)(262)Share repurchases and retirement(51,567)—Proceeds from the exercise of stock options336841Payment of employee tax withholding related to RSUs and PSUs vesting(5,474)(6,990)Net cash used in financing activities(57,987)(10,920)Effect of exchange rate changes on cash and cash equivalents4501,597Net (decrease) increase in cash, cash equivalents and restricted cash(15,128)72,771Cash, cash equivalents and restricted cash - beginning of period68,31881,154Cash, cash equivalents and restricted cash - end of period$53,190$153,925 Investor Relations ContactMark [email protected] View original content to download multimedia:https://www.prnewswire.com/news-releases/verra-mobility-announces-second-quarter-2026-financial-results-302843961.html

Paylocity (PCTY) came out with quarterly earnings of $1.84 per share, beating the Zacks Consensus Estimate of $1.54 per share. This compares to earnings of $1.56 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +19.48%. A quarter ago, it was expected that this provider of cloud-based payroll and human-resources software services would post earnings of $2.43 per share when it actually produced earnings of $2.89, delivering a surprise of +18.93%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Paylocity, which belongs to the Zacks Internet - Software industry, posted revenues of $444.73 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.18%. This compares to year-ago revenues of $400.74 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Paylocity shares have lost about 8.4% since the beginning of the year versus the S&P 500's gain of 11%. While Paylocity has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Paylocity was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.83 on $435.41 million in revenues for the coming quarter and $8.57 on $1.89 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the bottom 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, VERRA MOBILITY CORP (VRRM), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 5. This company is expected to post quarterly earnings of $0.33 per share in its upcoming report, which represents a year-over-year change of -2.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. VERRA MOBILITY CORP's revenues are expected to be $253.62 million, up 7.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Paylocity Holding Corporation (PCTY) : Free Stock Analysis Report VERRA MOBILITY CORP (VRRM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

MESA, Ariz., July 24, 2026 /PRNewswire/ -- Verra Mobility Corporation (NASDAQ: VRRM), a leading provider of smart mobility technology solutions, announced today that it will report financial results for the second quarter ended June 30, 2026, after market close on August 5, 2026. Verra Mobility's Interim Chief Executive Officer, Jon Keyser, and Chief Financial Officer, Craig Conti, will host a conference call and live webcast to discuss financial results for investors and analysts at 5:00 p.m. ET on August 5, 2026. A live webcast will be available on the Company's Investor Relations website at ir.verramobility.com. To access this conference call by telephone, register here to receive dial-in numbers and a unique PIN to join the call. A replay of the call will also be made available on the Investor Relations website. In addition, an archived webcast will be available in the "News & Events" section of Verra Mobility's Investor Relations website at ir.verramobility.com. About Verra Mobility Verra Mobility Corporation (NASDAQ: VRRM) is a leading provider of smart mobility technology solutions that make transportation safer, smarter and more connected. The company sits at the center of the mobility ecosystem, bringing together vehicles, hardware, software, data and people to enable safe, efficient solutions for customers globally. Verra Mobility's transportation safety systems and parking management solutions protect lives, improve urban and motorway mobility and support healthier communities. The company also solves complex payment, utilization and compliance challenges for fleet owners and rental car companies. Headquartered in Arizona, Verra Mobility principally operates in North America, Europe and Australia. For more information, please visit www.verramobility.com. Forward Looking Statements This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about Verra Mobility's plans, objectives, expectations, beliefs and intentions and other statements including words such as "hope," "anticipate," "may," "believe," "expect," "intend," "will," "should," "plan," "estimate," "predict," "continue" and "potential" or the negative of these terms or other comparable terminology. The forward-looking statements herein represent the judgment of Verra Mobility, as of the date of this release, and Verra Mobility disclaims any intent or obligation to update forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those currently anticipated. This press release should be read in conjunction with the information included in Verra Mobility's other press releases, reports and other filings with the SEC and on the SEC website, www.sec.gov. Understanding the information contained in these filings is important in order to fully understand Verra Mobility's reported financial results and our business outlook for future periods. Actual results may differ materially from the results anticipated in the forward-looking statements and the assumptions and estimates used as a basis for the forward-looking statements. Additional Information We periodically provide information for investors on our corporate website, www.verramobility.com, and our investor relations website, ir.verramobility.com. We intend to use our website as a means of disclosing material non-public information and for complying with disclosure obligations under Regulation FD. Accordingly, investors should monitor our website, in addition to following the Company's press releases, SEC filings and public conference calls and webcasts. View original content to download multimedia:https://www.prnewswire.com/news-releases/verra-mobility-schedules-second-quarter-2026-earnings-call-302834170.html

Wrapping up Q1 earnings, we look at the numbers and key takeaways for the electrical systems stocks, including Verra Mobility (NASDAQ:VRRM) and its peers. Like many equipment and component manufacturers, electrical systems companies are buoyed by secular trends such as connectivity and industrial automation. More specific pockets of strong demand include Internet of Things (IoT) connectivity and the 5G telecom upgrade cycle, which can benefit companies whose cables and conduits fit those needs. But like the broader industrials sector, these companies are also at the whim of economic cycles. Interest rates, for example, can greatly impact projects that drive demand for these products. The 14 electrical systems stocks we track reported a satisfactory Q1. As a group, revenues beat analysts’ consensus estimates by 4.7% while next quarter’s revenue guidance was 3.3% below. In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results. Aiming to wrap technology and data around a historically manual and paper-based industry, Verra Mobility (NASDAQ:VRRM) is a leading provider of smart mobility technology to address tolls and violations, title and registration services, as well as safety and traffic enforcement. Verra Mobility reported revenues of $223.6 million, flat year on year. This print was in line with analysts’ expectations, and overall, it was a strong quarter for the company with an impressive beat of analysts’ adjusted operating income estimates. "We are pleased with our first quarter performance, which reflects a solid start to 2026. We delivered top-line results in line with expectations, with upside in profitability, while continuing to build momentum across our key growth areas," said David Roberts, President and CEO, Verra Mobility. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 70.6% since reporting and currently trades at $4.21. Is now the time to buy Verra Mobility? Access our full analysis of the earnings results here, it’s free. A key player in the transition to cleaner vehicles, Garrett Motion (NYSE:GTX) designs and manufactures turbochargers, air compressors, and electric motor technologies for vehicle manufacturers and industrial applications. Garrett Motion reported revenues of $985 million, up 12.2% year on year, outperforming analysts’ expectations by 9.3%. The business had a stunning quarter with a solid beat of analysts’ EBITDA estimates. The market seems happy with the results as the stock is up 57.4% since reporting. It currently trades at $32.26. Is now the time to buy Garrett Motion? Access our full analysis of the earnings results here, it’s free. Credited with introducing the first automatic washing machine, Whirlpool (NYSE:WHR) is a manufacturer of a variety of home appliances. Whirlpool reported revenues of $3.27 billion, down 9.6% year on year, falling short of analysts’ expectations by 4.4%. It was a disappointing quarter as it posted full-year EPS guidance missing analysts’ expectations and a significant miss of analysts’ adjusted operating income estimates. Whirlpool delivered the weakest performance against analyst estimates, slowest revenue growth, and weakest full-year guidance update in the group. As expected, the stock is down 32.2% since the results and currently trades at $37.12. Read our full analysis of Whirlpool’s results here. Founded in 1961, Kimball Solutions (NASDAQ:KE) is a global contract manufacturer specializing in electronics and manufacturing solutions for automotive, medical, and industrial markets. Kimball Solutions reported revenues of $352.9 million, down 5.8% year on year. This result lagged analysts’ expectations by 0.9%. Overall, it was a slower quarter as it also recorded a miss of analysts’ adjusted operating income estimates and EPS in line with analysts’ estimates. The stock is down 9.3% since reporting and currently trades at $24.63. Read our full, actionable report on Kimball Solutions here, it’s free. Founded in 1946, Methode Electronics (NYSE:MEI) is a global supplier of custom-engineered solutions for Original Equipment Manufacturers (OEMs). Methode Electronics reported revenues of $298.1 million, up 15.9% year on year. This number topped analysts’ expectations by 25%. It was a very strong quarter as it also put up an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates. Methode Electronics delivered the biggest analyst estimate beat and highest full-year guidance raise among its peers. The stock is up 36.1% since reporting and currently trades at $15.55. Read our full, actionable report on Methode Electronics here, it’s free. Late in 2025 into early 2026, there was hand-wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure? These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.