Verra Mobility Announces Fourth Quarter and Full Year 2025 Financial Results

MESA, Ariz., Feb. 24, 2026 /PRNewswire/ -- Verra Mobility Corporation (NASDAQ: VRRM), a leading provider of smart mobility technology solutions, announced today the financial results for the fourth quarter and full year ended December 31, 2025.

"We closed 2025 with strong execution and momentum across our three business segments," said David Roberts, President and CEO, Verra Mobility. "Total revenue for the fourth quarter increased 16 percent over the fourth quarter of 2024, exceeding our internal expectations while Adjusted EBITDA and Adjusted Earnings Per Share were in-line with our internal expectations. Looking ahead to 2026 and beyond, we are executing against a focused value-creation strategy designed to strengthen our core, enhance profitability and position Verra Mobility for durable long-term growth."

Fourth Quarter 2025 Financial Highlights

*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:

Fourth Quarter 2025 Segment Detail

Full Year 2025 Financial Highlights

Liquidity and Debt: As of December 31, 2025, cash and cash equivalents were $65.3 million and long-term debt, net was $1,028.0 million, and we generated $255.8 million in net cash provided by operating activities for the year ended December 31, 2025.

Net Debt and Net Leverage*: As of December 31, 2025, Net Debt was $971.8 million and Net Leverage was 2.3x, as compared to $968.0 million and 2.4x as of December 31, 2024.

*Non-GAAP measure; refer to "Non-GAAP Financial Measures" further below for explanatory notes and a reconciliation to the most directly comparable GAAP measure.

New York City Department of Transportation Red-Light Camera Expansion and New Contract Update

Our contract with NYCDOT expired on December 31, 2025, and we entered into a new contract with NYCDOT, effective January 1, 2026, to manage New York City's automated enforcement camera safety program for a five-year period, with an option for the parties to extend for an additional five-year term. The total contract value for the new NYCDOT contract is $998 million. The terms of the new contract are materially different than our prior contract with NYCDOT, including service level agreements, service credits, liquidated damages, cybersecurity, and subcontracting requirements.

In March 2025, NYCDOT instructed us through a change order to our then-existing contract with NYCDOT to install additional red-light cameras by year-end 2025 as part of a legislatively authorized expansion. We installed 300 red-light cameras during the third and fourth quarters of 2025, which contributed approximately $38.4 million of revenue in fiscal year 2025, of which approximately $23.9 million was installation services revenue and approximately $14.5 million was product revenue.

Refinancing

On October 17, 2025, (i) certain of our direct and indirect wholly owned subsidiaries, including VM Consolidated, Inc. ("VM Consolidated"), entered into an Amended and Restated Revolving Credit Agreement which provides for a $150 million senior secured asset-based revolving credit facility with a $35 million sublimit for the issuance of letters of credit, and matures on October 17, 2030 (subject to an earlier maturity date in certain circumstances), and (ii) VM Consolidated and certain of our subsidiaries entered into the Amendment and Restatement Agreement No. 2 to the Amended and Restated First Lien Term Loan Credit Agreement dated as of March 26, 2021, to refinance the existing senior secured term loans in an aggregate outstanding principal amount of approximately $688.8 million with a new senior secured term loan of the same principal amount maturing on October 15, 2032.

Stockholder Repurchase Expansion Approval

In May 2025, our Board of Directors authorized a share repurchase program for up to an aggregate amount of $100.0 million of our outstanding shares of Class A common stock, par value $0.0001 per share (the "Class A Common Stock"), over an 18-month period. On October 23, 2025, our Board of Directors authorized the repurchase of up to an additional $150.0 million of our outstanding shares of Class A Common Stock under the existing May 2025 program, providing us with $250.0 million available for repurchases. Under the repurchase program, we may purchase shares of Class A Common Stock until November 13, 2026 through open market purchases, in privately negotiated transactions, or by other means, including trading plans intended to qualify under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended, and accelerated share repurchase agreements, each as permitted under applicable rules and regulations. The amount and timing of repurchases will be determined at our discretion and will depend on a variety of factors, including price, general business and market conditions, applicable legal requirements, and alternative investment opportunities. The repurchase program does not obligate us to acquire any particular amount of Class A Common Stock or at any specific time intervals and may be modified, suspended, or terminated at any time. During the fourth quarter of fiscal year 2025, we paid $133.4 million to repurchase 6,028,853 shares of our Class A Common Stock through open market transactions, which shares we subsequently retired.

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).

Underlying Assumptions for 2026 Full Year Guidance

Conference Call Details

Date: February 24, 2026

Time: 5:00 p.m. Eastern Time

To 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 relating to the new contract with NYCDOT; 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, expected interest expense, net and total net cash interest, expected change in working capital, expected capital expenditures, and expected operating expenditures; our ability to execute against a focused value-creation strategy designed to strengthen our core, enhance profitability, and position us for durable long-term growth for 2026 and beyond; 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 the impact of government actions and regulations, such as tariffs, trade protection measures, or a government shutdown, on our customers or Verra Mobility; customer concentration in our Commercial Services and Government Solutions segments, including risks impacting such 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; 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; our ability to properly perform under our contracts and otherwise satisfy our customers; risks associated with the use of artificial intelligence and related tools; 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 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. These forward-looking statements speak only as of the date of this 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 (loss), 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 income (loss) 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 income (loss) adjusted to exclude amortization of intangibles and certain non-cash or non-recurring expenses such as change in fair value of interest rate swap, 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 long-term 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.

VERRA MOBILITY CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

December 31,

(In thousands, except per share data)

2025

2024

Assets

Current assets:

Cash and cash equivalents

65,272

77,560

Restricted cash

3,046

3,594

Accounts receivable (net of allowance for credit losses of $23.0 million and

$17.0 million at December 31, 2025 and 2024, respectively)

234,288

206,503

Unbilled receivables

56,100

48,193

Inventory

20,662

15,502

Prepaid expenses and other current assets

61,534

42,647

Total current assets

440,902

393,999

Installation and service parts, net

27,081

36,631

Property and equipment, net

208,703

141,601

Operating lease assets

36,359

29,895

Intangible assets, net

168,641

232,297

Goodwill

741,610

735,615

Other non-current assets

22,366

44,451

Total assets

1,645,662

1,614,489

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable

101,813

91,224

Deferred revenue

26,650

29,374

Accrued liabilities

69,851

73,980

Tax receivable agreement liability, current portion

5,257

5,163

Current portion of long-term debt

6,888

—

Total current liabilities

210,459

199,741

Long-term debt, net of current portion

1,021,157

1,034,211

Operating lease liabilities, net of current portion

31,338

25,757

Tax receivable agreement liability, net of current portion

38,418

42,977

Asset retirement obligations

17,789

15,493

Deferred tax liabilities, net

16,341

14,699

Other long-term liabilities

17,200

16,486

Total liabilities

1,352,702

1,349,364

Commitments and contingencies

Stockholders' equity

Preferred stock, $0.0001 par value

—

Common stock, $0.0001 par value

Additional paid-in capital

547,274

551,955

Accumulated deficit

(243,759)

(269,287)

Accumulated other comprehensive loss

(10,570)

(17,559)

Total stockholders' equity

292,960

265,125

Total liabilities and stockholders' equity

1,645,662

1,614,489

VERRA MOBILITY CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE INCOME (LOSS)

(Unaudited)

Three Months Ended December 31,

Year Ended December 31,

(In thousands, except per share data)

2025

2024

2025

2024

Service revenue

239,539

209,671

918,137

841,676

Product sales

18,323

11,829

60,942

37,531

Total revenue

257,862

221,500

979,079

879,207

Cost of service revenue, excluding depreciation and

amortization

11,660

4,664

30,318

18,988

Cost of product sales

15,713

8,303

45,517

27,058

Operating expenses

90,149

74,368

333,241

295,937

Selling, general and administrative expenses

67,550

52,622

215,274

195,054

Depreciation, amortization and (gain) loss on disposal of

assets, net

29,764

27,857

116,315

109,072

Goodwill impairment

—

97,076

—

97,076

Total costs and expenses

214,836

264,890

740,665

743,185

Income (loss) from operations

43,026

(43,390)

238,414

136,022

Interest expense, net

14,989

16,699

64,618

73,902

Tax receivable agreement liability adjustment

687

(257)

687

(257)

Loss on interest rate swap

—

494

Loss on extinguishment of debt

1,266

1,117

1,335

1,745

Other income, net

(6,798)

(5,000)

(23,208)

(18,970)

Total other expenses

10,144

12,559

43,432

56,914

Income (loss) before income taxes

32,882

(55,949)

194,982

79,108

Income tax provision

14,002

10,707

58,349

47,660

Net income (loss)

18,880

(66,656)

136,633

31,448

Other comprehensive income (loss):

Change in foreign currency translation adjustment

(734)

(10,747)

6,989

(7,383)

Total comprehensive income (loss)

18,146

(77,403)

143,622

24,065

Net income (loss) per share:

Basic

0.12

(0.41)

0.86

0.19

Diluted

0.12

(0.41)

0.85

0.19

Weighted average shares outstanding:

Basic

157,441

163,342

159,000

165,090

Diluted

159,713

163,342

161,292

167,717

VERRA MOBILITY CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Three Months Ended December 31,

($ in thousands)

2025

2024

Cash Flows from Operating Activities:

Net income (loss)

18,880

(66,656)

Adjustments to reconcile net income (loss) to net cash provided by operating

activities:

Depreciation and amortization

28,901

27,543

Amortization of deferred financing costs and discounts

589

669

Tax receivable agreement liability adjustment

687

(257)

Loss on extinguishment of debt

1,266

1,117

Gain on lease modification

(1,517)

—

Credit loss expense

4,609

1,577

Deferred income taxes

14,640

(8,328)

Stock-based compensation

6,480

4,372

Uncertain tax position reserve release

(762)

—

Goodwill impairment

—

97,076

Impairment of long-lived assets and right of use assets

9,352

170

Other

692

654

Changes in operating assets and liabilities:

Accounts receivable

(10,011)

(14,773)

Unbilled receivables

3,184

1,925

Inventory

(359)

1,406

Prepaid expenses and other assets

(5,206)

9,349

Deferred revenue

(2,690)

(170)

Accounts payable and other current liabilities

(30,058)

(9,825)

Other liabilities

1,297

(5,362)

Net cash provided by operating activities

39,974

40,487

Cash Flows from Investing Activities:

Purchases of installation and service parts and property and equipment

(34,226)

(18,847)

Cash proceeds from the sale of assets

158

Net cash used in investing activities

(34,136)

(18,689)

Cash Flows from Financing Activities:

Borrowings on long-term debt

29,791

36,591

Repayment of long-term debt

(31,513)

(41,101)

Payment of debt issuance costs

(2,344)

(276)

Share repurchases and retirement

(133,447)

(148,479)

Proceeds from exercise of stock options

1,587

Payment of employee tax withholding related to RSUs and PSUs vesting

(170)

(175)

Net cash used in financing activities

(137,650)

(151,853)

Effect of exchange rate changes on cash and cash equivalents

(169)

(2,004)

Net decrease in cash, cash equivalents and restricted cash

(131,981)

(132,059)

Cash, cash equivalents and restricted cash - beginning of period

200,299

213,213

Cash, cash equivalents and restricted cash - end of period

68,318

81,154

VERRA MOBILITY CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

For the Year Ended December 31,

($ in thousands)

2025

2024

Cash Flows from Operating Activities:

Net income

136,633

31,448

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

114,080

108,525

Amortization of deferred financing costs and discounts

3,445

4,106

Tax receivable agreement liability adjustment

687

(257)

Change in fair value of interest rate swap

—

1,316

Loss on extinguishment of debt

1,335

1,745

Gain on lease modification

(1,517)

—

Credit loss expense

22,986

13,002

Deferred income taxes

19,346

(10,012)

Stock-based compensation

25,176

22,958

Uncertain tax position reserve release

(2,444)

—

Goodwill impairment

—

97,076

Impairment of long-lived assets and right of use assets

9,352

170

Other

2,789

1,403

Changes in operating assets and liabilities:

Accounts receivable

(49,646)

(22,664)

Unbilled receivables

(7,257)

(11,987)

Inventory

3,403

1,917

Prepaid expenses and other assets

(10,350)

5,926

Deferred revenue

(3,188)

1,231

Accounts payable and other current liabilities

(1,773)

(16,425)

Other liabilities

(7,255)

(5,836)

Net cash provided by operating activities

255,802

223,642

Cash Flows from Investing Activities:

Cash receipts for interest rate swap

—

822

Purchases of installation and service parts and property and equipment

(119,094)

(70,856)

Cash proceeds from the sale of assets

305

314

Net cash used in investing activities

(118,789)

(69,720)

Cash Flows from Financing Activities:

Borrowings on long-term debt

29,791

36,591

Repayment of long-term debt

(38,277)

(45,610)

Payment of debt issuance costs

(2,793)

(716)

Share repurchases and retirement

(133,447)

(199,979)

Proceeds from exercise of stock options

1,087

4,288

Payment of employee tax withholding related to RSUs and PSUs vesting

(7,331)

(6,001)

Net cash used in financing activities

(150,970)

(211,427)

Effect of exchange rate changes on cash and cash equivalents

1,121

(1,063)

Net decrease in cash, cash equivalents and restricted cash

(12,836)

(58,568)

Cash, cash equivalents and restricted cash - beginning of period

81,154

139,722

Cash, cash equivalents and restricted cash - end of period

68,318

81,154

VERRA MOBILITY CORPORATION

RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA (Unaudited)

Three Months Ended December 31,

For the Year Ended December 31,

($ in thousands)

2025

2024

2025

2024

Net income (loss)

18,880

(66,656)

136,633

31,448

Interest expense, net

14,989

16,699

64,618

73,902

Income tax provision

14,002

10,707

58,349

47,660

Depreciation and amortization

28,901

27,543

114,080

108,525

EBITDA

76,772

(11,707)

373,680

261,535

Transaction and other related expenses (i)

6,340

1,245

7,444

5,369

Transformation expenses (ii)

10,256

1,892

9,123

4,444

Legal accrual/settlement (iii)

—

8,250

(1,540)

8,250

Goodwill impairment (iv)

—

97,076

—

97,076

Tax receivable agreement liability adjustment

687

(257)

687

(257)

Loss on interest rate swap

—

494

Loss on extinguishment of debt (v)

1,266

1,117

1,335

1,745

Stock-based compensation (vi)

6,479

4,372

25,176

22,958

Adjusted EBITDA

101,800

101,988

415,905

401,614

Adjusted EBITDA Margin

(i)

Transaction and other related expenses for the periods presented primarily related to deal costs incurred for potential acquisitions and debt modification costs related to the 2024 and 2025 refinancings on our first lien term loan.

(ii)

Transformation expenses for the 2025 periods primarily consist of expenses related to exit activities initiated during the fourth quarter in addition to a non-cash benefit in relation to a building lease for the full year. Transformation expenses for the 2024 periods consist of severance and other employee separation costs related to exit activities initiated during the period.

(iii)

This relates to accruals and adjustments to loss contingencies for the periods presented.

(iv)

This relates to the impairment of goodwill in our Parking Solutions segment.

(v)

Loss on extinguishment of debt consists of the write-off of pre-existing original issue discounts and deferred financing costs associated with the refinancing of our debt.

(vi)

Stock-based compensation represents the non-cash charge related to the issuance of awards under the Verra Mobility Corporation Amended and Restated 2018 Equity Incentive Plan.

RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW (Unaudited)

Three Months Ended December 31,

For the Year Ended December 31,

($ in thousands)

2025

2024

2025

2024

Net cash provided by operating activities

39,974

40,487

255,802

223,642

Purchases of installation and service parts and property and equipment

(34,226)

(18,847)

(119,094)

(70,856)

Free Cash Flow (i)

5,748

21,640

136,708

152,786

(i)

Free Cash Flow for the year ended December 31, 2024 included an after-tax legal settlement cost of approximately $22.1 million. The annual estimated effective tax rate to calculate the income tax effect on the legal settlement adjustment was 30.0%.

RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED NET INCOME AND CALCULATION OF ADJUSTED EPS (Unaudited)

Three Months Ended December 31,

For the Year Ended December 31,

(In thousands, except per share data)

2025

2024

2025

2024

Net income (loss)

18,880

(66,656)

136,633

31,448

Amortization of intangibles

15,640

16,743

64,359

67,003

Transaction and other related expenses (i)

6,340

1,245

7,444

5,369

Transformation expenses (ii)

10,256

1,892

9,123

4,444

Legal accrual/settlement (iii)

—

8,250

(1,540)

8,250

Goodwill impairment (iv)

—

97,076

—

97,076

Tax receivable agreement liability adjustment

687

(257)

687

(257)

Loss on extinguishment of debt (v)

1,266

1,117

1,335

1,745

Change in fair value of interest rate swap

—

1,316

Stock-based compensation (vi)

6,479

4,372

25,176

22,958

Total adjustments before income tax effect

40,668

130,438

106,584

207,904

Income tax effect on adjustments

(11,227)

(9,751)

(30,323)

(32,802)

Total adjustments after income tax effect

29,441

120,687

76,261

175,102

Adjusted Net Income

48,321

54,031

212,894

206,550

Adjusted EPS

0.30

0.33

1.32

1.23

Diluted weighted average shares outstanding

159,713

165,927

161,292

167,717

Annual estimated effective income tax rate (vii)

(i)

(ii)

(iii)

This relates to accruals and adjustments to loss contingencies related to legal proceedings for the periods presented.

(iv)

This relates to the impairment of goodwill in our Parking Solutions segment.

(v)

Loss on extinguishment of debt consists of the write-off of pre-existing original issue discounts and deferred financing costs associated with the refinancing of our debt.

(vi)

Stock-based compensation represents the non-cash charge related to the issuance of awards under the Verra Mobility Corporation Amended and Restated 2018 Equity Incentive Plan.

(vii)

The annual estimated effective tax rate used above excludes discrete items as they do not impact taxable income. This rate differs from the period-to-date effective tax rate used on our condensed consolidated statements of operations which includes the discrete items.

RECONCILIATION OF TOTAL LONG-TERM DEBT, NET TO NET DEBT AND NET LEVERAGE (Unaudited)

($ in thousands)

December 31,

2025

December 31,

2024

Total long-term debt, net

1,028,045

1,034,211

Original issue discounts

2,193

2,322

Unamortized deferred financing costs

6,844

9,035

Total long-term debt, excluding original issue discounts and

unamortized deferred financing costs

1,037,082

1,045,568

Cash and cash equivalents

(65,272)

(77,560)

Net Debt

971,810

968,008

Net Leverage

2.3x

2.4x

Trailing twelve months Adjusted EBITDA (i)

415,905

401,614

(i)

Trailing Twelve Months or "TTM" refers to the trailing four quarters and is calculated by adding the sum of the current quarter's and the prior three quarters' being measured.

Investor Relations Contact

Mark Zindler

[email protected]

SOURCE Verra Mobility