#United States #Verra Mobility #Mesa #Q3 2025 #Smart Mobility

Verra Mobility Reports Strong Financial Performance for Q3 2025

Verra Mobility Corporation (NASDAQ: VRRM), a recognized provider of innovative smart mobility technology solutions, has announced its financial results for the third quarter of 2025. The company experienced a remarkable total revenue of $261.9 million, representing a 16% increase from the same quarter in the previous year, where revenue was $225.6 million. This growth indicates a robust momentum in the company's operations, driven predominantly by the expansion of the red-light camera program in New York City.

Financial Highlights

The third quarter financial highlights include:

• - Total Revenue: $261.9 million
• - Net Income: $46.8 million, or $0.29 per share
• - Net Cash Provided from Operations: $77.7 million

In comparison to the previous year's quarter, Verra Mobility has reported a net income rise to $46.8 million from $34.7 million, reflecting solid business performance. The earnings per share have also risen, up to $0.29 from $0.21 in the third quarter of 2024.

Revenue Segmentation

The revenue growth was attributed mainly to two segments: Government Solutions and Commercial Services. The Government Solutions segment, which offers automated safety and enforcement services, saw a significant revenue increase of 28%, totaling $122.6 million. Key drivers included revenue from the NYC red-light camera program and new services in bus lane and school bus enforcement.

Meanwhile, the Commercial Services segment contributed $117.3 million, reflecting a 7% increase stemming from enhanced product adoption and tolling activities.

Adjusted Earnings and EBITDA

For the same period, the Adjusted Earnings Per Share (EPS) improved to $0.37, compared to $0.32 in Q3 2024. The company also reported an Adjusted EBITDA of $113.3 million, which accounts for a margin of 43%. Though the EBITDA margin saw a slight decline from the prior year's 46%, this can be attributed to increased costs associated with project implementations, particularly for the NYCDOT red-light program.

Operational Efficiency and Cash Flow

While net cash provided from operations decreased by approximately $31.1 million from $108.8 million, Verra Mobility emphasized its effective management of cash flow. The company reported a Free Cash Flow of $49 million for Q3, down from $85.1 million last year.

Future Guidance

Looking ahead, Verra Mobility has increased its revenue guidance for the full fiscal year 2025 to a new range of $955 million to $965 million, up from previously indicated levels. This proactive revision demonstrates the company's confidence in its growth trajectory as it continues expanding its operational capabilities and service offerings.

Red-Light Camera Program Expansion

The company's work with the New York City Department of Transportation (NYCDOT) remains a cornerstone of its strategy. In March, Verra Mobility was awarded a contract expected to contribute approximately $963 million over a five-year term. As part of this partnership, the firm recently added 250 red-light cameras, generating around $30 million in expected revenue from installation and related services.

Stockholder Returns

In light of these positive financial results, the Board authorized an increase in the stock repurchase program by $150 million, bringing the total authorized share repurchase amount to $250 million. This move reflects Verra Mobility's commitment to delivering value to its shareholders.

Conclusion

With a compelling financial summary for Q3 2025, Verra Mobility has demonstrated its capability to harness growth opportunities while maintaining operational efficiency. The strategic initiatives concerning the NYC project and stock repurchase plan highlight the company's focus on long-term sustainability and shareholder value. As the firm navigates the remainder of the year, stakeholders can remain optimistic about its prospects in the smart mobility sector.

For additional details and insights, Verra Mobility invites interested parties to participate in its upcoming conference call, further discussed in their communications.

For more information about our services and ongoing projects, please visit Verra Mobility’s official website.