Verra Mobility's earnings report falls short of expectations and guidance is weak, leading to a decline in stock price

LootboxPhobia · 2026-02-24T23:24:30+00:00

Verra Mobility's Q4 results fell short of expectations, with the stock dropping 9.1%. Adjusted earnings per share were $0.30, with revenue up 16% to $257.9 million. The FY2026 earnings guidance was below analyst estimates. The company signed a new contract with the New York City Department of Transportation worth $998 million.

LootboxPhobia

2026-02-24 23:24:30

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Investing.com – Verra Mobility Corporation (NASDAQ:VRRM) reported fourth-quarter earnings that missed expectations, and its guidance for fiscal 2026 was below analyst estimates, causing its stock to fall 9.1% in after-hours trading on Tuesday.

The provider of smart mobility technology posted adjusted earnings per share of $0.30 for the quarter, below the consensus estimate of $0.31. Revenue reached $257.9 million, up 16% year-over-year from $221.5 million, and exceeded the forecast of $241.09 million. For fiscal 2026, the company expects earnings per share of $1.32 to $1.38, with a midpoint of $1.35, below the consensus estimate of $1.36. Revenue guidance is $1.02 billion to $1.03 billion, with a midpoint of $1.025 billion, slightly above the consensus of $1.024 billion.

President and CEO David Roberts said, “We closed 2025 with strong execution and momentum, with all three business segments performing well. Fourth-quarter total revenue increased 16% compared to Q4 2024, surpassing our internal expectations, while adjusted EBITDA and adjusted EPS met our internal forecasts.”

Adjusted EBITDA for the quarter was $101.8 million, compared to $102.0 million in the same period last year. The adjusted EBITDA margin declined from 46% to 39%, mainly due to increased project implementation costs and rising costs related to the New York City Department of Transportation’s red light extension project. Net income was $18.9 million, or $0.12 per share, compared to a net loss of $66.7 million, or -$0.41 per share, in the same period last year, which included goodwill impairment charges.

Revenue from the Government Solutions segment was $129.2 million, up 25% year-over-year, primarily driven by the New York City Department of Transportation red light extension project. Commercial services revenue increased 10% to $108.1 million, while parking solutions revenue grew 5% to $20.6 million.

Verra Mobility signed a new five-year contract with the New York City Department of Transportation, effective January 1, 2026, valued at $998 million. In the fourth quarter, the company repurchased $133.4 million of its stock, and its full-year operating cash flow was $255.8 million.

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