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1. Company Snapshot

1.a. Company Description

Verra Mobility Corporation provides smart mobility technology solutions and services in the United States, Australia, Canada, and Europe.It operates through three segments: Commercial Services; Government Solutions; and Parking Solutions.The Government Solutions segment offers automated safety solutions, including services and technologies that enable photo enforcement through road safety camera programs, which detects and process traffic violations related to red light, speed, school bus, and city bus lanes.


This segment serves municipalities, counties, school districts, and law enforcement agencies.The Commercial Services segment provides automated toll and violations management, and title and registration services to rental car companies, fleet management companies, and other large fleet owners.The Parking Solutions segment provides an integrated suite of parking software and hardware solutions to universities, municipalities, parking operators, healthcare facilities, and transportation hubs.


The company was incorporated in 2016 and is headquartered in Mesa, Arizona.

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1.b. Last Insights on VRRM

Verra Mobility Corporation's recent performance was driven by a strong second quarter earnings release, which exceeded analyst expectations. The company reported net income of $38.6 million and net cash provided from operations of $75.1 million, reaffirming its 2025 full-year guidance. Additionally, Verra Mobility announced a partnership with the City of Oakland to deploy speed safety technology along 18 high-risk corridors, further solidifying its position in the smart mobility technology solutions market. The appointment of Stacey Moser as Executive Vice President and General Manager of the Commercial Services business unit also highlights the company's efforts to drive growth and innovation.

1.c. Company Highlights

2. Verra Mobility's Q3 2025 Earnings: Strong Performance Driven by New York City Contract

Verra Mobility reported a robust financial performance in Q3 2025, with total revenue reaching $262 million, a 16% increase year-over-year. Adjusted EPS came in at $0.37 per share, beating estimates of $0.34 per share, representing a 16% increase. The company's Commercial Services business saw a 7% revenue increase, driven by growth in RAC tolling and European operations, while the Government Solutions business grew 28% in revenue, driven by the New York City red-light camera expansion. The adjusted EBITDA margin stood at 44%, and the company generated $153 million of free cash flow over the trailing 12 months.

Publication Date: Nov -03

📋 Highlights
  • New York City Contract Impact:: $963M 5-year contract expected to generate $165–$185M annual service revenue by 2027, plus $20–$30M product revenue in 2026–2027.
  • Q3 Financial Performance:: Revenue rose 16% to $262M; adjusted EPS increased 16% to $0.37/share; Government Solutions revenue grew 28%.
  • 2025 Guidance Raised:: Full-year revenue guidance updated to $955–$965M (9% YoY growth), with adjusted EBITDA of $410–$420M and EPS of $1.30–$1.35.
  • Capital Structure Actions:: $150M stock buyback increase (total $250M), term loan refinanced to 2032 at 2% interest, and $153M trailing free cash flow.
  • 2026 Outlook Adjustments:: Revenue growth to moderate to mid-single digits; adjusted EBITDA margins expected to decline 250–300 bps due to NYC contract mix and costs.

Segment Performance

The Government Solutions business was a key driver of growth, with revenue increasing 28% year-over-year. The New York City Department of Transportation's new automated enforcement contract is expected to drive future growth, with estimated annual service revenue of $165-$185 million by 2027. The Commercial Services business also saw growth, driven by RAC tolling and European operations. According to Craig Conti, CFO, "despite a tough comp and fleet management headwinds, the business accelerated growth in Q3."

Outlook and Guidance

Verra Mobility expects total consolidated revenue to moderate to mid-single digit growth in 2026. The company anticipates Government Solutions growing high single digits on strong service revenue, Commercial Services growing mid-single digits, and T2 Systems growing low to mid-single digits. For 2025, the company has increased its revenue guidance to $955 million to $965 million, representing 9% growth over 2024. Adjusted EBITDA guidance remains at $410 million to $420 million, and adjusted EPS guidance is $1.30 to $1.35 per share.

Valuation and Metrics

With a P/E Ratio of 72.47 and an EV/EBITDA of 12.33, the market appears to be pricing in significant growth expectations. The company's ROE stands at 15.48%, indicating a relatively healthy return on equity. The Net Debt / EBITDA ratio is -0.58, suggesting a manageable debt burden. Analysts estimate next year's revenue growth at 7.0%, which may be achievable given the company's strong performance in Q3 2025 and its growth prospects driven by the New York City contract.

3. NewsRoom

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Verra Mobility Corporation (VRRM) Presents at UBS Global Technology and AI Conference 2025 Transcript

Dec -03

Source: seekingalpha.com

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Verra Mobility to Participate at the UBS Global Technology and AI Conference

Nov -25

Source: prnewswire.com

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Verra Mobility exits Ontario as new speed camera ban takes effect

Nov -21

Source: prnewswire.com

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Verra Mobility launches AutoKinex™ to provide drivers with seamless and secure in-vehicle payments; Partners with Stellantis for nationwide automated tolling service

Nov -20

Source: prnewswire.com

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73% of Americans believe EV owners should pay an 'energy tax' to help fund roadways and infrastructure, according to survey from Verra Mobility

Nov -17

Source: prnewswire.com

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Connor Clark & Lunn Investment Management Ltd. Takes $1.49 Million Position in Verra Mobility Corp $VRRM

Nov -17

Source: defenseworld.net

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T2 Systems integrates gold-standard credit card payment encryption into its Parking Access and Revenue Control Systems for secure, faster, contactless parking

Nov -12

Source: prnewswire.com

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Verra Mobility Corp.: Solid Visibility Into Long-Term Growth

Nov -01

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.71%)

6. Segments

Commercial Services

Expected Growth: 6.5%

Verra Mobility's Commercial Services segment growth of 6.5% is driven by increasing adoption of smart mobility solutions, expansion of tolling and parking services, and strategic partnerships. Additionally, growing demand for fleet management and vehicle tracking solutions, as well as investments in digital infrastructure, contribute to the segment's growth.

Government Solutions

Expected Growth: 6.8%

Verra Mobility's Government Solutions segment growth of 6.8% is driven by increasing adoption of smart transportation systems, rising demand for traffic management and safety solutions, and growing need for cities to optimize their infrastructure. Additionally, the segment benefits from the company's strong relationships with government agencies and municipalities, as well as its ability to provide end-to-end solutions.

Parking Solutions

Expected Growth: 7.2%

Verra Mobility's Parking Solutions segment growth of 7.2% is driven by increasing urbanization, rising demand for smart parking systems, and growing adoption of IoT-based parking technologies. Additionally, the company's strategic acquisitions and partnerships have expanded its market presence, contributing to the segment's growth.

7. Detailed Products

Automatic License Plate Recognition (ALPR) Cameras

Verra Mobility's ALPR cameras are designed to capture and analyze license plate information, providing real-time data for law enforcement, tolling, and parking applications.

Tolling and Violation Enforcement Solutions

Verra Mobility's tolling and violation enforcement solutions provide a comprehensive platform for toll authorities to manage toll collection, violation detection, and enforcement.

Parking and Curbside Management Solutions

Verra Mobility's parking and curbside management solutions provide cities and private operators with a platform to manage parking inventory, optimize pricing, and enforce parking regulations.

Smart City and Intelligent Transportation Systems (ITS)

Verra Mobility's smart city and ITS solutions provide cities with a platform to manage and optimize traffic flow, reduce congestion, and improve air quality.

Fleet and Asset Management Solutions

Verra Mobility's fleet and asset management solutions provide fleet operators with a platform to manage vehicle fleets, optimize routes, and reduce operational costs.

8. Verra Mobility Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Verra Mobility Corporation operates in a niche market with limited substitutes, but there are some alternatives available to customers, which reduces the threat of substitutes.

Bargaining Power Of Customers

Verra Mobility Corporation has a large customer base, but individual customers do not have significant bargaining power due to the company's dominant market position.

Bargaining Power Of Suppliers

Verra Mobility Corporation relies on a few key suppliers for its operations, which gives them some bargaining power, but the company's scale and market position mitigate this threat.

Threat Of New Entrants

Entering the market requires significant investment and regulatory approvals, which creates a barrier to entry and reduces the threat of new entrants.

Intensity Of Rivalry

The market for tolling and mobility solutions is highly competitive, with several established players, which increases the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 71.26%
Debt Cost 9.70%
Equity Weight 28.74%
Equity Cost 9.70%
WACC 9.70%
Leverage 248.01%

11. Quality Control: Verra Mobility Corporation passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Snap-on

A-Score: 6.8/10

Value: 3.9

Growth: 6.0

Quality: 8.1

Yield: 6.0

Momentum: 7.5

Volatility: 9.0

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Brady

A-Score: 5.9/10

Value: 3.8

Growth: 6.2

Quality: 7.6

Yield: 3.0

Momentum: 6.0

Volatility: 9.0

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FTAI Aviation

A-Score: 5.6/10

Value: 3.0

Growth: 4.7

Quality: 8.5

Yield: 6.0

Momentum: 5.0

Volatility: 6.7

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EMCOR

A-Score: 5.5/10

Value: 2.8

Growth: 9.1

Quality: 7.1

Yield: 0.0

Momentum: 8.5

Volatility: 5.3

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Verra Mobility

A-Score: 4.2/10

Value: 2.2

Growth: 4.6

Quality: 7.4

Yield: 0.0

Momentum: 3.0

Volatility: 8.0

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Arcosa

A-Score: 3.9/10

Value: 4.1

Growth: 4.9

Quality: 4.1

Yield: 0.0

Momentum: 4.0

Volatility: 6.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

21.38$

Current Price

21.38$

Potential

-0.00%

Expected Cash-Flows