10-Q · May 6, 2026
Verra Mobility reported a slight increase in Q1 2026 revenue to $223.6 million, modestly surpassing expectations, but earnings per share (EPS) of $0.17 fell short of the consensus estimate of $0.23. This quarter also…
Earnings analysis · 10-Q
VRRM earnings analysis
Filed October 30, 2026 · Our reading of the company's report
The latest report
Third-quarter revenue was $258.875 million and diluted EPS was $0.27, exceeding consensus estimates of $239.425 million and $0.26, respectively. The company maintained fiscal-year 2026 guidance, but the 10-Q highlights…
Read full summary
Third-quarter revenue was $258.875 million and diluted EPS was $0.27, exceeding consensus estimates of $239.425 million and $0.26, respectively. The company maintained fiscal-year 2026 guidance, but the 10-Q highlights significant Commercial Services contract and volume pressure, including a termination effective January 30, 2027. Large Parking Solutions impairments totaling $104.4 million for the first nine months and concurrent CEO/CFO transitions add to execution risk, keeping the overall assessment neutral despite the quarterly beat.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.27
What stood out
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Full-year guidance reaffirmed
Management reaffirmed fiscal-year 2026 revenue guidance of $945 million-$965 million and Adjusted EPS guidance of $1.11-$1.17.
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Five-year NYCDOT contract
The company entered into a new five-year NYCDOT contract effective January 1, 2026, supporting Government Solutions revenue visibility.
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Controls remain effective
Disclosure controls were concluded to be effective at the reasonable-assurance level as of September 30, 2026, with no material changes to internal control over financial reporting during the quarter.
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No securities-litigation accrual
The company had not recorded a loss or gain contingency for the securities action as of September 30, 2026, because the matter was not probable or reasonably estimable.
What to watch
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Commercial contract attrition
Commercial customer concentration and contract pressure increased: three Commercial Services customers represented 29.5% of total revenue versus 38.0% in the prior-year quarter. One customer reduced fleet volume during Q3 and the company exercised its termination option effective January 30, 2027; another contract has a renewal approaching.
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Customer concentration and execution
NYCDOT represented 24.1% of total revenue versus 19.5% in the prior-year quarter. The new five-year contract includes service-level agreements, service credits, liquidated damages, cybersecurity and subcontracting requirements, increasing execution exposure.
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Parking Solutions impairments
Parking Solutions recorded a $40.4 million impairment of customer relationship, trademark and developed technology intangible assets and a $64.0 million goodwill impairment during the nine months ended September 30, 2026. Further impairments remain possible if forecasts, margins, customer attrition or discount rates deteriorate.
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Concurrent leadership transition
The company is undergoing concurrent CEO and CFO transitions: the new CEO becomes effective November 1, 2026, the CFO resignation is effective November 4, 2026, and the interim CFO begins November 5, 2026. The company stated that disruption could affect strategy, financial reporting processes and internal controls.
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Interest-rate exposure
Variable-rate debt creates material interest-rate sensitivity: the Amended Term Loan balance was $681.9 million at September 30, 2026, with a 5.9% interest rate. Each 1% rate movement would change annual interest expense by approximately $6.8 million.
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Securities litigation
A putative securities class action filed June 4, 2026 covers investors who purchased shares between February 24, 2026 and May 26, 2026. The company has recorded no loss contingency, but stated that litigation could result in substantial costs and liabilities.
Management's outlook
Fiscal-year 2026 guidance was reaffirmed: revenue of $945 million-$965 million, Adjusted EPS of $1.11-$1.17, Adjusted EBITDA of $360 million-$370 million, and free cash flow of $105 million-$115 million. The 10-Q does not provide a new quantitative outlook beyond the previously issued guidance.
Earlier filings 4
10-K · February 24, 2026
Verra Mobility reported full-year 2025 revenue of approximately $979.1 million (sum of segment revenues disclosed in the filing) driven by Government Solutions ($460.7M, ~47%) and Commercial Services ($435.8M, ~45%).…
10-Q · August 6, 2025
Verra Mobility reported Q2 revenue of $236.0 million (three months ended June 30, 2025) versus $222.4 million a year ago, driving operating income of $63.2 million and diluted EPS of $0.24. Balance sheet and cash flow…
10-Q · May 7, 2025
Verra Mobility reported Q1 revenue of $223,254,000 (up $13,524,000 or +6.45% vs. Q1 2024) and GAAP diluted EPS of $0.20 (vs. $0.17 in Q1 2024). Operating income was $57,385,000 (operating margin 25.7%) and operating…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.