REDFLEX HOLDINGS Overview
Profiled entity: Verra Mobility Corporation
| Item | Detail | Source |
|---|---|---|
| Legal name | Verra Mobility Corporation | SEC filings |
| Former names / predecessors | Gores Holdings II, Inc. (SPAC, incorporated in Delaware 15 Aug 2016). It merged with Greenlight Holding II Corporation (Platinum Equity–owned parent of American Traffic Solutions and Highway Toll Administration) and was renamed Verra Mobility in 2018 | 10-Q FY2022 notes |
| Operating heritage | American Traffic Solutions (ATS), founded Oct 2003 per company history page. Some data vendors cite 1987 as the founding year. Discrepancy noted | verramobility.com history; Yahoo/roic.ai |
| Incorporation jurisdiction | Delaware, USA | 8-K cover pages (2026) |
| SEC file number / IRS EIN | 1-37979 / 81-3563824 | 8-K cover (May 2026) |
| Headquarters | 2046 Riverview Auto Drive, Suite 300, Mesa, Arizona 85201, USA (tel. +1 480 443 7000). The prior HQ was 1150 N. Alma School Road, Mesa | 8-K (May 2026); 8-K (Feb 2022) |
| Exchange / ticker | Nasdaq Capital Market: VRRM (Class A common stock) | DEF 14A 2026 |
| ISIN / CUSIP | US92511U1025 / 92511U102 | GuruFocus; Equibles |
| Fiscal year end | 31 December | 10-K |
| Employees | 1,901 at 31 Dec 2025 (FY2025 10-K). Workforce cut ~5% in Q1 2026 (Q1 2026 call). Prior years: see table below | 10-K FY2025; Q1 2026 call |
| Auditor | Deloitte & Touche LLP, auditor since 20 Sep 2023 | DEF 14A 2026 |
| Market capitalization | ~US$457 million at US$3.01 per share (13–14 Oct 2026) | MarketBeat/Defense World, 14 Oct 2026 |
| Shares outstanding | 151,906,484 Class A shares (record date 24 Mar 2026). ~151.98M in Aug 2026 | DEF 14A 2026; Google Finance |
| Website | www.verramobility.com; IR: ir.verramobility.com | Company |
| Chair / CEO | Patrick J. Byrne (Chair). Jon Keyser (Interim President & CEO since 31 May 2026) | 8-K 1 Jun 2026 |
| Metric | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
| Employees (company-reported or third-party; see note) | 1,288 | 1,754 | 1,901 |
Note: FY2025 (1,901) is from the FY2025 10-K as summarized by StockTitan and GuruFocus. FY2024 (1,754) is the full-time employee figure displayed by Yahoo Finance in October 2025 and is presumed to come from the FY2024 10-K.
Legacy entity: Redflex Holdings Limited
| Item | Detail | Source |
|---|---|---|
| Legal name | Redflex Holdings Limited (ABN 96 069 306 216) | ASX announcement 18 Jun 2021 |
| Founded | In business since 1995, according to Redflex's own H1 FY2008 report. Wikipedia gives January 1997. Discrepancy noted. 1997 is the ASX listing date | Redflex H1 FY08 report; Wikipedia |
| ASX listing | January 1997 (ticker RDF) | Redflex H1 FY08 report |
| Last registered office | 31 Market Street, South Melbourne, Victoria 3205, Australia | ASX announcement 18 Jun 2021 |
| Key operating subsidiaries (historic) | Redflex Traffic Systems Inc. (USA); Traffic Operating Services (Saudi Arabia) LLC; Australian, UK, European and Middle East operations | DOJ; FNN (2017) |
| Delisting | Following scheme implementation on 18 June 2021 | ASX |
| Acquirer / consideration | VM Consolidated, Inc. (Verra Mobility). A$0.96 per share cash, raised from an initial A$0.92 bid. Total A$152.5M | Verra 8-Ks Jan & Jun 2021 |
Verra Mobility is a US-centred provider of transaction-processing and enforcement technology for mobility. It sits between vehicles, tolling and issuing authorities, and the fleets and governments that pay them. Three engines drive the business. Commercial Services processes tolls, violations and titles for rental car companies and fleets, with segment margins above 60%. Government Solutions builds, owns, operates and maintains speed, red-light, school-bus and bus-lane camera programmes; this is where the former Redflex business now sits. Parking Solutions (T2 Systems) sells parking software and hardware to universities and cities. The franchise has historically paired scale with very high recurring revenue: service revenue was 94% of FY2025 sales. It is now in a reset. Repricing by its two largest rental-car customers, a CEO exit, $104M of Parking impairments and an 87% share-price collapse have turned a premium-multiple compounder into a levered, deep-value turnaround. Its key growth asset is the expansion of automated enforcement in New York and California.
Company's own description (paraphrased from FY2025 10-K and 2026 proxy)
Verra Mobility describes itself as a leading provider of smart mobility technology. It operates mainly in the United States, Australia, Europe and Canada, and combines vehicles, hardware, software, data and people to solve transportation problems. Its customers include rental car companies (RACs), direct fleets, fleet management companies (FMCs), governments, universities, parking operators, healthcare facilities, transportation hubs and violation-issuing authorities (FY2025 10-K, MD&A overview). Its stated purpose is to enrich lives by making mobility safer and easier (2026 proxy).
Independent characterization
Verra Mobility is best understood as three distinct businesses sharing a holding company, a balance sheet and some back-office infrastructure:
-
A toll-and-violation clearing house for fleets (Commercial Services, ~45% of FY2025 revenue). Verra connects to more than 50 tolling authorities and 400+ issuing authorities (company boilerplate cited by StockAlarm). It pays tolls on behalf of rental and fleet vehicles and recovers the cost plus fees from the rental customer or fleet operator. Management says tolling support is roughly 85% of Commercial Services revenue globally and that about 90% of the segment's revenue is US-based (management commentary, 2026 investor conference transcript). The economics look like a payments/processing network: very low marginal cost, segment profit margins in the mid-60s (FY2025: ~$283M profit on $436M revenue, Q4 2025 call). The model's weakness has now been exposed. Three customers (the large US RAC groups) generated 34.8% of total company revenue in FY2025 (FY2025 10-K per StockTitan). They have bargaining power to reprice, insource (Avis gained the option to self-perform certain activities) or modulate fleet volume.
-
A photo-enforcement BOOM operator (Government Solutions, ~47% of FY2025 revenue). Verra designs, installs, owns, operates and maintains enforcement cameras for cities, counties, states and school districts. It is paid per camera per month or per citation, plus product sales in some international markets (mostly the legacy Redflex hardware business). New York City is the anchor customer: NYCDOT was 17.9% of total FY2025 revenue (FY2025 10-K per StockTitan). It operates under a new five-year contract effective 1 January 2026 with a total contract value of $998M (Q4 2025 8-K). Margins are much lower (Q2 2026 segment margin 24%) because the business carries field operations, installation and maintenance labour, subcontractors and service-level penalties.
-
A parking SaaS and hardware vendor (Parking Solutions / T2 Systems, ~8% of revenue). T2 serves more than 1,900 universities, municipalities, parking operators, healthcare facilities and transport hubs (8-K, Dec 2021). Management describes the revenue mix as roughly 50% SaaS, 25% recurring service and 25% episodic hardware (2026 investor conference transcript). The segment has disappointed. Goodwill impairments totalled $97.1M in FY2024 and $64.0M in Q2 2026, plus a $40.4M intangible impairment in Q2 2026.
Revenue model mix
| Revenue type (USD Mn) | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
| Service revenue (recurring) | 695.2 | 783.6 | 841.7 | 918.1 |
| Product sales (episodic) | 46.4 | 33.7 | 37.5 | 60.9 |
| Total revenue | 741.6 | 817.3 | 879.2 | 979.1 |
| Service revenue % of total | 93.7 | 95.9 | 95.7 | 93.8 |
Source: Verra Mobility Q4/FY press releases (8-K Ex. 99.1) for FY2023 (filed 29 Feb 2024), FY2024 (27 Feb 2025) and FY2025 (24 Feb 2026). Percentages computed.
Characterization by model type:
Transaction/processing fees: (Commercial Services): toll pass-through fees, all-inclusive daily toll packages sold through RACs, violation processing, title & registration.
Service-as-a-subscription / BOOM: (Government Solutions): monthly per-camera fees or per-citation fees, plus maintenance contracts.
Product sales: (mainly Government Solutions international, i.e. legacy Redflex hardware, plus NYCDOT red-light camera sales in 2025; and Parking hardware).
SaaS licensing: (Parking Solutions: T2 software).
Value-chain position and end-markets
| End-market | Customer types | Verra's role in the value chain | Key demand driver |
|---|---|---|---|
| US rental car tolling | Avis Budget, Hertz, Enterprise (the three significant customers) | Outsourced toll and violation intermediary between toll agencies and renters | Air travel and rental days (TSA throughput), cashless tolling adoption |
| Commercial fleet tolling | FMCs, direct fleets, fleet payment card issuers (U.S. Bank Voyager partnership, Sep 2026) | Toll aggregation and payment; violations; title & registration | Fleet size, all-electronic tolling |
| European tolling / fines | RACs and fleets in Europe; foreign-vehicle fine collection (EPC); Spanish consumer tolling (Pagatelia) | Cross-border fine and toll processing | Cross-border rental travel |
| US automated enforcement | Cities (NYC, LA, SF, Oakland, San José), school districts, state DOTs (work zones) | End-to-end programme operator (cameras, processing, adjudication support) | Vision Zero policies, state enabling legislation |
| International enforcement (legacy Redflex) | Australian state agencies, UK, other export markets | Hardware supplier and maintenance provider | Road-safety budgets, camera replacement cycles |
| Parking management | Universities, municipalities, hospitals, operators | SaaS, permits, citations, pay stations | Digital/mobile parking payment |
Strategy
Stated strategy themes
FY2025 (Roberts, Feb 2026): execute a focused value-creation strategy to strengthen the core, enhance profitability and position the company for durable long-term growth (FY2025 press release, paraphrased).
Mid-2026 (Keyser): a reset toward customer-centricity, urgency and agility. The company is aligning business and technology investment with customers' evolving priorities (Avis framework release, July 2026; Q2 2026 release).
- Management reaffirmed them as late as February 2025. They are now superseded: FY2026 guidance is US$945–965M revenue and US$360–370M Adjusted EBITDA.
Strategic initiatives (last 24 months)
| Initiative | Date | Description | Target / status | Source |
|---|---|---|---|---|
| Transformation / cost optimization programme | 2025 → ongoing | Chief Transformation Officer role created (Keyser, 2025); exit activities in Q4 2025 | ~5% workforce reduction in Q1 2026; ~US$10M annual savings | Q1 2026 call |
| Board Transformation Committee | 5 Jun 2026 | Board-level oversight of transformation | Recommendations implemented 17 Jun 2026 | Reuters/8-K |
| Hybrid operating model | 17 Jun 2026 | Centralizes HR, Finance, Legal, Government Relations, Engineering and Product Management; unified customer organization under a CCO | Segment reporting under review | 8-K 17 Jun 2026; Q2 2026 release |
| Commercial Services customer stabilization | Jul–Aug 2026 | Seven-year Avis framework; five-year Hertz agreement (early renewal of a contract expiring mid-2027) | Both on materially less favourable terms with volume-modulation rights. Third major RAC (Enterprise, per press) still in renewal discussions | 8-Ks 28 Jul and 5 Aug 2026 |
| NYCDOT new contract | Effective 1 Jan 2026 | Five years plus a five-year extension option; TCV US$998M | New SLAs and liquidated damages; lower pricing offset by camera additions | FY2025 press release |
| California speed-safety expansion | Jan–Jun 2026 | Selected by all six AB 645 pilot cities (Los Angeles, San Francisco, Oakland, San José, Glendale, Long Beach) | LA: 125 sites targeted operational by end-2026 | Q2 2026 call; LA release |
| MOSAIC platform implementation | 2025–2026 | Platform modernization included in capex | Part of ~US$135M FY2026 capex | FY2026 guidance |
| ERP implementation | 2,025 | Enterprise resource planning upgrade | Weighed on FY2025 CS margins | Q4 2025 call |
| AI-enabled products | 2,026 | AI-driven Title & Registration; AI named in risk factors as a strategic lever | Launched 2 Sep 2026 | Press release |
| Fleet-card distribution | Sep 2026 | U.S. Bank Voyager integration | Launched 29 Sep 2026 | Press release |
| Capital return | May & Oct 2025 | US$100M buyback authorization (May 2025) raised by US$150M (Oct 2025) | US$133.4M spent Q4 2025; US$51.6M H1 2026. Authorization runs to 13 Nov 2026 | FY2025 & Q2 2026 releases |
| ESG / corporate responsibility | Ongoing | Four pillars: Community, Planet, People, Governance | No quantified targets disclosed in sources reviewed | 2026 proxy |
Guidance evolution (FY2026)
| Guidance item | Feb 24, 2026 | May 6, 2026 | May 26, 2026 | Aug 5, 2026 |
|---|---|---|---|---|
| Revenue (USD M) | 1020–1030 | Reaffirmed | 985–995 | 945–965 |
| Adjusted EBITDA (USD M) | 405–415 | Reaffirmed | 380–385 | 360–370 |
| Adjusted EPS (USD) | 1.32–1.38 | Reaffirmed | 1.19–1.25 | 1.11–1.17 |
| Free cash flow (USD M) | 150–160 | Reaffirmed | Not captured | 105–115 |
| Capex (USD M) | ~125 | ~125 | ~125 | ~135 |
| Diluted shares (M) | ~155 | ~155 | ~155 | ~153 |
Implied H2 2026 (computed from August guidance less H1 actuals): revenue US$458–478M (−8% to −12% vs H2 2025's US$519.8M); Adjusted EBITDA US$163–173M (−19% to −24% vs H2 2025's US$215.2M). The full impact of RAC repricing lands in H2 2026.
Products & Services
Commercial Services
| Offering | Description & capabilities | Target customer | Latest version / year | Pricing model |
|---|---|---|---|---|
| RAC tolling programmes (ATS heritage) | Plate-based and transponder toll payment for rental vehicles; integration with 50+ US tolling authorities; renter billing via the RAC | Avis Budget, Hertz, Enterprise | Avis 7-year framework (Jul 2026); Hertz 5-year agreement (Aug 2026) | Per-transaction or per-rental-day fees shared with RACs. New contracts carry materially lower economics and fleet-volume modulation rights |
| Fleet toll management (HTA heritage) | Toll aggregation, reconciliation and payment for commercial fleets; available to U.S. Bank Voyager fleet-card customers from Sep 2026 | FMCs, direct fleets, fleet-card programmes | Voyager integration announced 29 Sep 2026 | Per-vehicle / per-transaction (not disclosed) |
| Violations management | Processing of parking, red-light and other violations issued to fleet and rental vehicles; links to 400+ issuing authorities | RACs, FMCs | Ongoing | Per-violation processing fee (not disclosed) |
| Title & Registration (AI-driven) | Automated vehicle title, registration and activation. The company says it cuts fleet vehicle activation time by up to 80% and enables same-day road readiness | Fleets, FMCs, RACs | Launched 2 Sep 2026 | — |
| EPC (Euro Parking Collection plc) | Cross-border collection of tolls and fines for foreign-registered vehicles in Europe | European RACs, issuing authorities | Acquired 2018 | — |
| Pagatelia | Interoperable electronic tolling and mobility payments in Spain | Consumers, fleets (Spain) | Acquired Q4 2019 | — |
| Hertz technology partnership | Joint exploration of modernized toll processing under the renewed contract | Hertz | Announced 26 Aug 2026 | Part of the 5-year contract |
Government Solutions (includes the former Redflex business)
| Offering | Description & capabilities | Target customer | Notes / flagship programmes |
|---|---|---|---|
| Speed safety cameras (fixed and mobile) | Automated speed detection, evidence capture, citation processing | Cities, school zones | NYC school-zone speed programme. California AB 645 pilots: San Francisco (the state's first speed programme), Oakland, San José, Glendale (9 sites), Long Beach (18 sites), Los Angeles (125 sites; selected June 2026) |
| Red-light cameras | Intersection enforcement with video and still evidence | Cities | NYC red-light expansion (300 cameras installed H2 2025). Mountain House, CA was the first programme under SB 720 |
| School bus stop-arm enforcement | Cameras on school buses capture vehicles passing stopped buses | School districts, municipalities | Growth driver in 2024–2026. Company survey found 82% support (Q4 2025 call) |
| City bus lane enforcement | Fixed and bus-mounted cameras enforcing dedicated lanes | Transit agencies, cities | NYC bus-lane programme (150 cameras added 2022) |
| Work-zone speed enforcement | Automated enforcement in highway work zones | State DOTs | Part of US$25M of new ARR and awards in Q2 2026 |
| Citation processing / back office | Image review, notice generation, payment, adjudication support. Capex references "MOSAIC implementation" (a platform modernization programme; details not publicly disclosed) | All enforcement customers | MOSAIC named in FY2026 capex assumptions |
| Legacy Redflex hardware (product sales) | Radar/LiDAR speed systems, red-light systems, ANPR. Sold mainly internationally with maintenance services | Australian state agencies, UK, Middle East and other export markets | Verra 10-Q (2022): Redflex's international operations primarily involve product sales plus maintenance services |
Parking Solutions (T2 Systems)
| Offering | Description | Target customer | Notes |
|---|---|---|---|
| Parking management software (SaaS; T2 Flex is the widely known platform name) | Permits, enforcement, citations, analytics | Universities, municipalities, hospitals | ~50% of segment revenue is SaaS (2026 conference commentary) |
| Pay stations and hardware | Multi-space pay stations, LPR-enabled enforcement hardware | Operators, cities | ~25% of segment revenue; episodic and declining as customers shift to mobile payments (FY2024 10-K) |
| Mobile and contactless payments; curbside and transportation demand management | Mobile pay, curbside management, TDM | Cities, campuses | Listed in the 2021 acquisition release |
| Professional services and citation processing | Implementation, consulting, citation processing | Existing customers | Volatile; declined in 2024 and grew in 2025 |
Pricing: Verra does not publish list prices. Contract economics are disclosed only in aggregate. The new NYCDOT contract adds service-level agreements, service credits, liquidated damages, cybersecurity and subcontracting requirements (FY2025 press release).
Financial Narrative
All figures in USD millions unless stated. Fiscal year ends 31 December. Sources: Verra Mobility Q4/full-year press releases (8-K Ex. 99.1) for FY2021 (filed Apr 2022), FY2022 (1 Mar 2023), FY2023 (29 Feb 2024), FY2024 (27 Feb 2025) and FY2025 (24 Feb 2026). Ratios marked "computed" are analyst calculations from those statements.
Headline five-year income statement
Revenue CAGR FY2021–FY2025 (computed): 15.5%. Excluding acquisition effects, FY2022–FY2025 CAGR: 9.7%. FY2021 revenue includes Redflex from 17 Jun 2021 and T2 from 7 Dec 2021. Acquisitions contributed ~US$95M of FY2022 service revenue growth (FY2022 8-K).
Detailed income statement (FY2022–FY2025)
Note: Verra does not report "gross profit". The "gross profit proxy" (revenue less cost of service and cost of product, excluding D&A) is an analyst construct. Most operating cost sits in "operating expenses" and SG&A.
Margin profile
Commentary on income statement trends
FY2021–FY2022: acquisition-led step-up: Redflex and T2 were bolted on, and travel recovered after COVID. Revenue rose 35% in FY2022. Adjusted EBITDA margin fell from 49% to 46% because acquired businesses (Redflex hardware, T2) earn lower margins than legacy tolling.
FY2023: earnings depressed by non-operating items: Net income fell to US$57.0M despite +10% revenue. Drivers: a US$25.0M loss on private-placement warrant fair value, a US$31.5M PlusPass settlement accrual and a US$5.7M tax settlement related to a 2018 acquisition. Interest expense also rose to US$86.7M (FY2023 press release).
FY2024: Parking impairment: A US$97.1M Parking goodwill impairment cut GAAP net income to US$31.4M, while Adjusted EBITDA reached a record 45.7% margin.
FY2025: peak profitability, then the inflection: Net income was US$136.6M with no impairments and lower interest after refinancings. Adjusted EBITDA margin compressed by ~320bp to 42.5%, driven by low-margin NYC installation and product revenue, NYCDOT readiness costs, ERP costs and credit losses (FY2025 press release; Q4 call). This was the last "clean" year before the 2026 customer repricing.
Year-to-date 2026 and quarterly trend
Sources: Q2 2026 8-K quarterly reconciliation table; Q4 2025, Q3 2025 and Q1 2026 releases. Q2 2026 net loss reflects a US$64.0M goodwill impairment and a US$40.4M intangible impairment, both in Parking Solutions. TTM to Q2 2026: revenue ~US$1,007.0M (computed), Adjusted EBITDA US$411.8M, net income US$44.2M.
H1 2026 versus H1 2025: revenue US$487.2M vs US$459.3M (+6.1%). Adjusted EBITDA US$196.7M vs US$200.8M (−2.0%). Net loss US$(21.4)M vs net income US$70.9M. CFO US$97.2M vs US$138.1M. FCF US$42.2M vs US$82.0M (Q2 2026 8-K).
Balance sheet
FY2021 values are rounded figures from EDGAR-derived data (edgar.tools). FY2022–FY2025 values come from company balance sheets.
FY2022 net debt is analyst-computed as carrying debt minus cash; the company reported net leverage of 3.3x at end-2022 (Q4 2022 call). FY2023–Q2 2026 net debt is as reported (company definition excludes OID and deferred financing costs). Tangible equity is computed as equity minus goodwill minus intangibles.
Balance sheet commentary.
-
Verra carries negative tangible equity (−US$552M at Q2 2026). Its asset base is dominated by acquisition goodwill (US$677M), and leverage is roughly flat at ~US$1.0B gross.
-
Debt reduction stalled after 2023 because buybacks absorbed free cash flow: US$558M of repurchases over FY2022–Q2 2026.
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Working capital is consuming cash. Unbilled receivables rose from US$56M to US$97M in H1 2026 as NYC installations were billed in arrears. Management guides a ~US$30M working-capital outflow for FY2026.
Cash flow
Notes: FY2024 FCF includes an after-tax legal settlement cost of ~US$22.1M (PlusPass). FY2023 financing inflow includes US$161.4M of warrant exercise proceeds. H1 2026: CFO US$97.2M, capex US$55.0M, FCF US$42.2M, buybacks US$51.6M.
Commentary: FCF conversion has fallen steadily from 50% to 33% of Adjusted EBITDA. Causes: camera-installation capex (NYC, California), MOSAIC platform spend, and rising receivables and credit losses (credit-loss expense US$23.0M in FY2025 vs US$13.0M in FY2024). FY2026 FCF guidance of US$105–115M (Aug 2026) implies a further step down, to ~30% conversion.
Ratio analysis (computed)
Methodology: ROE and ROA use average balances. The ROIC tax rates (27% FY2022, 31% FY2023, 30% FY2024, 29% FY2025) are the company's annual estimated effective rates. A full cash conversion cycle is not meaningful: inventory (US$20.7M) and payables are immaterial relative to a service-dominated revenue base, so DSO is the relevant working-capital metric. ROE is inflated by the small, buyback-depleted equity base.
Leverage trend into 2026: Net leverage was 2.4x at Q2 2026 (Q2 2026 8-K). On the revised FY2026 Adjusted EBITDA midpoint (US$365M), leverage would be ~2.7x even with flat net debt (computed). On a post-repricing run-rate, it would be higher until cost actions land.
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Segment Overview
| Segment | What it contains | Products / services | Principal customers |
|---|---|---|---|
Commercial Services | ATS rental/fleet tolling, HTA, EPC (UK), Pagatelia (Spain) | Automated toll management, violations management, title & registration (AI-driven T&R launched Sep 2026), European tolling and fine processing | RACs (Avis Budget, Hertz, Enterprise), FMCs, direct fleets |
Government Solutions | Legacy ATS photo enforcement plus Redflex (US programmes, Australian and international product and maintenance business) | Speed, red-light, school-bus stop-arm, bus-lane and work-zone speed cameras; citation processing; product sales | States, municipalities, counties, school districts, law enforcement agencies |
Parking Solutions | T2 Systems | Parking software (SaaS), transaction processing, hardware (pay stations, LPR), professional services, citation processing | Universities, municipalities, parking operators, healthcare, transport hubs (US & Canada) |
Segment revenue (USD Mn)
| Segment revenue (USD Mn) | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Commercial Services | 372.8 | 407.7 | 435.8 |
Government Solutions | 358.4 | 390.9 | 460.7 |
Government Solutions – service | 344.0 | 367.9 | 415.6 |
Government Solutions – product | 14.4 | 23.0 | 45.1 |
Parking Solutions | 86.1 | 80.6 | 82.6 |
Parking Solutions – service | 66.8 | 66.1 | 66.7 |
Parking Solutions – product | 19.3 | 14.5 | 15.9 |
Total revenue | 817.3 | 879.2 | 979.1 |
Segment Margins & Growth (%) and Revenue by Segment (%)
| Segment metric (%) | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Commercial Services YoY growth | 14 | 9.4 | 6.9 |
Government Solutions YoY growth | 12 | 9.1 | 17.9 |
Parking Solutions YoY growth | 8 | -6.4 | 2.5 |
Commercial Services % of total | 45.6 | 46.4 | 44.5 |
Government Solutions % of total | 43.9 | 44.5 | 47.1 |
Parking Solutions % of total | 10.5 | 9.2 | 8.4 |
Segment (FY2025) Overview
| Segment (FY2025) | Revenue (USD Mn) | Segment profit (USD Mn) | Segment margin (%) | Source |
|---|---|---|---|---|
Commercial Services | 435.8 | ~283 | ~65 | Q4 2025 earnings call (CFO Conti), via MarketBeat |
Government Solutions | 460.7 | ~122 | ~26 | Q4 2025 earnings call; profit described as roughly flat YoY |
Parking Solutions | 82.6 | ~11 | ~13 | Q4 2025 earnings call |
Revenue by Segment
| Segment metric (USD Mn) | Q2 2025 | Q3 2025 | Q4 2025 | Q2 2026 |
|---|---|---|---|---|
Commercial Services revenue | 109.1 | 117.3 | 108.1 | 115.1 |
Commercial Services segment profit | 72.0 | 78.3 | 69.1 | 77.2 |
Government Solutions revenue | 107.1 | 122.6 | 129.2 | 128.5 |
Government Solutions segment profit | 30.1 | 31.3 | 31.1 | 31.2 |
Parking Solutions revenue | 19.9 | 22.1 | 20.6 | 20.0 |
Parking Solutions segment profit | 3.2 | 3.8 | 1.6 | 2.3 |
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View Subscription PlansIncome Statement and Margin Analysis (%)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Revenue (USD Mn) | 550.6 | 741.6 | 817.3 | 879.2 | 979.1 |
Revenue growth YoY (%) | 39.9 | 34.7 | 10.2 | 7.6 | 11.4 |
Adjusted EBITDA (USD Mn) | 270.9 | 338.5 | 371.5 | 401.6 | 415.9 |
Adjusted EBITDA margin (%) | 49.2 | 45.6 | 45.5 | 45.7 | 42.5 |
Net income (USD Mn) | 41.4 | 92.5 | 57.0 | 31.4 | 136.6 |
Net margin (%) | 7.5 | 12.5 | 7.0 | 3.6 | 14.0 |
Diluted EPS (USD) | 0.25 | 0.50 | 0.36 | 0.19 | 0.85 |
Dividends per share (USD) | 0 | 0 | 0 | 0 | 0 |
Operating cash flow (USD Mn) | 193.2 | 218.3 | 206.1 | 223.6 | 255.8 |
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View Subscription PlansIncome Statement and Per-Share Data
| Metric | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
Service revenue (USD Mn) | 695.2 | 783.6 | 841.7 | 918.1 |
Product sales (USD Mn) | 46.4 | 33.7 | 37.5 | 60.9 |
Cost of service revenue ex-D&A (USD Mn) | 16.3 | 18.2 | 19.0 | 30.3 |
Cost of product sales (USD Mn) | 30.9 | 25.2 | 27.1 | 45.5 |
Revenue less direct costs, "gross profit proxy" (USD Mn) | 694.3 | 773.9 | 833.2 | 903.3 |
Operating expenses (USD Mn) | 226.3 | 273.3 | 295.9 | 333.2 |
SG&A (USD Mn) | 163.1 | 198.6 | 195.1 | 215.3 |
Depreciation, amortization & disposal (USD Mn) | 140.2 | 113.2 | 109.1 | 116.3 |
Goodwill impairment (USD Mn) | 0 | 0 | 97.1 | 0 |
Operating income (USD Mn) | 164.7 | 188.8 | 136.0 | 238.4 |
Interest expense, net (USD Mn) | 69.4 | 86.7 | 73.9 | 64.6 |
Pre-tax income (USD Mn) | 127.1 | 87.0 | 79.1 | 195.0 |
Income tax provision (USD Mn) | 34.6 | 30.0 | 47.7 | 58.3 |
Net income (USD Mn) | 92.5 | 57.0 | 31.4 | 136.6 |
EBITDA, company definition (USD Mn) | 335.2 | 286.8 | 261.5 | 373.7 |
Adjusted net income (USD Mn) | 161.6 | 172.5 | 206.6 | 212.9 |
Basic EPS (USD) | 0.61 | 0.36 | 0.19 | 0.86 |
Diluted EPS (USD) | 0.50 | 0.36 | 0.19 | 0.85 |
Adjusted EPS (USD) | 1.02 | 1.08 | 1.23 | 1.32 |
Diluted weighted shares (M) | 159.0 | 160.0 | 167.7 | 161.3 |
Stock-based compensation (USD Mn) | 16.7 | 17.5 | 23.0 | 25.2 |
Amortization of intangibles (USD Mn) | 106.2 | 77.6 | 67.0 | 64.4 |
Margin (%)
| Margin (%) | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
Gross profit proxy margin | 93.6 | 94.7 | 94.8 | 92.3 |
Operating margin | 22.2 | 23.1 | 15.5 | 24.3 |
EBITDA margin (company-defined EBITDA) | 45.2 | 35.1 | 29.7 | 38.2 |
Adjusted EBITDA margin | 45.6 | 45.5 | 45.7 | 42.5 |
Net margin | 12.5 | 7.0 | 3.6 | 14.0 |
Income Statement and Per-Share Data (Quarterly)
| Quarterly metric (USD Mn) | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 |
|---|---|---|---|---|---|---|
Revenue | 223.3 | 236.0 | 261.9 | 257.9 | 223.6 | 263.6 |
Adjusted EBITDA | 95.4 | 105.3 | 113.3 | 101.9 | 86.0 | 110.6 |
Net income | 32.3 | 38.6 | 46.8 | 18.9 | 26.7 | -48.2 |
Adjusted EPS (USD) | 0.30 | 0.34 | 0.37 | 0.30 | 0.25 | 0.38 |
Balance Sheet
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Total assets (USD Mn) | 1,837 | 1,756.3 | 1,790.0 | 1,614.5 | 1,645.7 |
Total liabilities (USD Mn) | 1,577 | 1,525.2 | 1,368.5 | 1,349.4 | 1,352.7 |
Stockholders' equity (USD Mn) | 260 | 231.1 | 421.5 | 265.1 | 293.0 |
Current assets (USD Mn) | 348 | 362.6 | 439.5 | 394.0 | 440.9 |
Current liabilities (USD Mn) | 175 | 186.8 | 214.8 | 199.7 | 210.5 |
Working capital (USD Mn) | 173 | 175.8 | 224.8 | 194.3 | 230.4 |
Balance Sheet (FY2022–Q2 2026)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | Q2 2026 |
|---|---|---|---|---|---|
Cash & equivalents (USD Mn) | 105.2 | 136.3 | 77.6 | 65.3 | 49.6 |
Accounts receivable, net (USD Mn) | 163.8 | 197.8 | 206.5 | 234.3 | 259.4 |
Unbilled receivables (USD Mn) | 30.8 | 37.1 | 48.2 | 56.1 | 97.3 |
Goodwill (USD Mn) | 833.5 | 835.8 | 735.6 | 741.6 | 676.8 |
Intangible assets, net (USD Mn) | 377.4 | 301.0 | 232.3 | 168.6 | 98.7 |
Short-term debt (USD Mn) | 21.9 | 9.0 | 0 | 6.9 | 10.0 |
Long-term debt (USD Mn) | 1,190.0 | 1,029.1 | 1,034.2 | 1,021.2 | 1,024.7 |
Total debt, net carrying value (USD Mn) | 1,212.0 | 1,038.1 | 1,034.2 | 1,028.0 | 1,034.7 |
Net debt, company definition (USD Mn) | 1,106.8 | 918.3 | 968.0 | 971.8 | 993.2 |
Tangible equity (USD Mn) | -979.8 | -715.3 | -702.8 | -617.2 | -551.9 |
Cash Flow and Margin Analysis (%)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
Operating cash flow (USD Mn) | 218.3 | 206.1 | 223.6 | 255.8 |
Capex: installation/service parts and PP&E (USD Mn) | 48.2 | 57.0 | 70.9 | 119.1 |
Free cash flow (USD Mn) | 170.2 | 149.1 | 152.8 | 136.7 |
FCF / Adjusted EBITDA (%) | 50.3 | 40.1 | 38.0 | 32.9 |
Capex / revenue (%) | 6.5 | 7.0 | 8.1 | 12.2 |
Share repurchases (USD Mn) | 125.1 | 100.0 | 200.0 | 133.4 |
Dividends paid (USD Mn) | 0 | 0 | 0 | 0 |
Debt repayment incl. revolver (USD Mn) | 34.0 | 181.5 | 45.6 | 38.3 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Ratio | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
ROE (%) | 37.7 | 17.5 | 9.2 | 48.9 |
ROA (%) | 5.1 | 3.2 | 1.8 | 8.4 |
ROIC, after-tax EBIT / (debt + equity − cash) (%) | 9.0 | 9.8 | 7.8 | 13.5 |
Current ratio (x) | 1.94 | 2.05 | 1.97 | 2.09 |
Debt / equity (x) | 5.24 | 2.46 | 3.90 | 3.51 |
Net debt / Adjusted EBITDA (x) | 3.3 | 2.5 | 2.4 | 2.3 |
EBIT / interest (x) | 2.37 | 2.18 | 1.84 | 3.69 |
Adjusted EBITDA / interest (x) | 4.9 | 4.3 | 5.4 | 6.4 |
Asset turnover (x) | 0.41 | 0.46 | 0.52 | 0.60 |
Days sales outstanding, billed AR only (days) | 81 | 88 | 86 | 87 |
Region / country revenue (USD Mn)
| Region / country revenue (USD Mn) | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
United States (derived) | 713.7 | 763.2 | 846.1 |
Australia | 45.9 | 58.0 | 66.2 |
Canada | 30.8 | 33.2 | 31.6 |
United Kingdom | 23.8 | 20.5 | 28.2 |
Other international (derived residual) | 3.1 | 4.3 | 7.0 |
Total international | 103.6 | 116.0 | 133.0 |
Total revenue | 817.3 | 879.2 | 979.1 |
Region growth (%)
| Region growth (%) | FY2024 | FY2025 |
|---|---|---|
United States | 6.9 | 10.9 |
Australia | 26.5 | 14.1 |
Canada | 7.7 | -4.8 |
United Kingdom | -13.9 | 37.7 |
Total international | 12.0 | 14.6 |
Segment Overview (Annual)
| Segment | Geographic composition (management commentary, 2026 investor conference transcript) |
|---|---|
Commercial Services | ~90% US; remainder mainly Europe (EPC in the UK, Pagatelia in Spain) |
Government Solutions | ~85% US; remainder largely UK, Australia and New Zealand (the legacy Redflex international base) |
Parking Solutions | US and Canada only |
Group | "Just over 90%" North America; APAC is mostly Australia |
Share Price & Returns
| Reference point | Price (USD) | Return to US$3.01 (13 Oct 2026) | Source |
|---|---|---|---|
Oct 2023 month-end | 19.77 | -84.8% | Digrin price history |
Oct 2024 month-end | 25.97 | -88.4% | Digrin |
Oct 2025 month-end | 23.21 | -87.0% (1-year) | Digrin |
Dec 2025 month-end | 22.41 | -86.6% (YTD) | Digrin |
20 May 2025 (director grant FMV) | 24.53 | -87.7% | 2026 proxy |
26 May 2026 close (pre-Avis news; implied by a US$9.23 single-day fall of ~70%) | ~13.2 | -77% | HBSS release (computed) |
52-week range | 3.40 (low as of Jun–Aug 2026; lower prints since) – 25.83 (high) | — | Equibles; Google Finance |
5-year | StockStory: US$1,000 invested five years before 27 May 2026 was worth ~US$268 | ~-73% at that date, lower since | StockStory/TradingView |
Valuation Snapshot
| Metric | Value | Basis |
|---|---|---|
Share price | US$3.01 | MarketBeat, 13 Oct 2026 |
Market cap | ~US$457M | MarketBeat |
Net debt | US$993.2M | Q2 2026 |
Enterprise value | ~US$1,450M | Computed |
EV / TTM revenue (US$1,007M) | ~1.4x | Computed |
EV / TTM Adjusted EBITDA (US$411.8M) | ~3.5x | Computed |
EV / FY2026E Adjusted EBITDA (US$365M midpoint) | ~4.0x | Computed |
P/E on FY2026E Adjusted EPS (US$1.14 midpoint) | ~2.6x | Computed |
P/E on TTM GAAP EPS | ~11.6x | MarketBeat (impairment-depressed) |
P/B | ~2.0x (book US$223.6M); tangible book negative | Computed |
FCF yield on FY2026E FCF (US$110M midpoint) | ~24% | Computed |
Capital Markets
| Item | Detail | Source |
|---|---|---|
Consensus rating | "Reduce": 9 Hold, 1 Sell | MarketBeat (Oct 2026) |
Average price target | US$6.83 (MarketBeat). Google Finance (Aug 2026, 8 analysts): average US$6.40, high US$9.00, low US$5.00 | MarketBeat; Google Finance |
Recent actions | JPMorgan: Neutral, PT US$6 → US$5 (13 Oct 2026). UBS: Neutral, PT raised US$4 → US$6 (7 Aug 2026). Morgan Stanley: PT US$5 (6 Aug 2026). Weiss: "sell (d)" (14 Sep 2026). Zacks: Hold (13 Aug 2026). Post-Avis downgrades on 27–28 May 2026: Baird, Deutsche Bank, JPMorgan, William Blair, CJS, UBS | MarketBeat; Fintel |
Q3 2026 consensus | Adj. EPS ~US$0.26 (Earnings Whispers); revenue estimates US$240–262M across vendors | Earnings Whispers |
Capital Markets — Dividend policy
| Item | Detail |
|---|---|
Dividend policy | No dividends paid FY2020–FY2025 (2026 proxy TSR note); none declared in 2026 |
Buyback history | FY2022 US$125.1M; FY2023 US$100.0M (incl. ASR); FY2024 US$200.0M (incl. US$51.5M block from a stockholder and a US$112.7M ASR); FY2025 US$133.4M (6.03M shares); H1 2026 US$51.6M |
Current authorization | US$250M total (May 2025 US$100M + Oct 2025 US$150M), valid to 13 Nov 2026. Remaining ~US$65M (computed: 250 − 133.4 − 51.6). Q2 2026 repurchases were minimal (US$1.3M) |
Capital Instruments
| Instrument | Amount (USD Mn) | Maturity | Pricing / notes | Source |
|---|---|---|---|---|
Senior secured term loan (VM Consolidated) | ~688.8 (refinanced Oct 2025) | 15 Oct 2032 | Prior repricings took the spread to SOFR + 2.25% (2024). New pricing not captured | FY2025 & FY2024 8-Ks |
Senior unsecured notes | ~350 (implied by gross debt of US$1,037.1M at Dec 2025 less the term loan) | — | — | — |
ABL revolver (US$150M; US$35M LC sublimit) | 0 drawn at Jun 2026 (US$110.5M drawn and repaid in H1 2026) | 17 Oct 2030 | Asset-based | FY2025 8-K; Q2 2026 cash flow |
Equipment financing | ~2.7 | Various | New in 2026 | Q2 2026 cash flow |
Current portion of debt | 10.0 | Within 12 months | — | Q2 2026 balance sheet |
Analyst Conclusions
Management guidance (5 Aug 2026)
FY2026: revenue US$945–965M; Adjusted EBITDA US$360–370M (~38% margin); Adjusted EPS US$1.11–1.17; FCF US$105–115M; capex ~US$135M; D&A ~US$120M; net interest ~US$62M; effective tax rate 28–29%; ~153M diluted shares.
Segment colour from the Q2 2026 call (secondary summaries):
-
Commercial Services revenue down a high single digit, with segment margins in the low 60s%.
-
Government Solutions margins contracting ~450–500bp to the low 20s%, reflecting NYC pricing and implementation costs.
Consensus growth expectations
Near-term consensus (Q3 2026 Adj. EPS ~US$0.26 versus US$0.37 in Q3 2025) implies a ~30% YoY decline in adjusted earnings in H2 2026.
Bull case (grounded in data above)
-
The worst customer news is known and contracted. Avis (7 years) and Hertz (5 years) are locked in, NYC (5+5 years, US$998M TCV) is renewed, and roughly two-thirds of revenue now has multi-year visibility at reset prices.
-
Government Solutions is a genuine growth engine. Segment revenue grew +18% in FY2025 and +20% in Q2 2026. Verra holds all six California AB 645 cities plus LA's 125 sites, and won US$25M of new ARR in Q2 2026. Installation-heavy revenue should convert to higher-margin recurring service as cameras go live.
-
The valuation embeds extreme pessimism. EV/FY2026E Adjusted EBITDA is ~4x and the FCF yield ~24%. There are no maturities before 2030. Even a partial margin recovery from cost centralization could re-rate the equity, and the low valuation invites strategic interest.
Bear case (grounded in data above)
-
Pricing power has structurally shifted to the RACs. Avis can self-perform activities, and both RAC contracts carry fleet-volume modulation. The third major RAC renewal is outstanding. Pre-renewal, Avis alone represented ~US$135–145M of revenue and ~US$120–125M of segment profit; similar concessions at Enterprise would hit EBITDA further.
-
Quality of growth is deteriorating. FCF conversion has fallen from 50% to ~30%, receivables and unbilled balances are rising, credit losses are up, and Parking impairments now total over US$200M. The "high-margin recurring" narrative is weakening.
-
Balance sheet and governance overhangs. Net leverage is set to drift towards ~2.7–3.0x on falling EBITDA, tangible equity is negative, the CEO is interim, senior departures continue, securities litigation is pending, and ~US$185M of buybacks were executed at US$20+ before the collapse. All of this argues for a sustained discount.
Key catalysts and monitorables (next 12 months)
| Catalyst | Expected timing | What to watch |
|---|---|---|
| Q3 2026 results | 4 Nov 2026 | First quarter with full Avis/Hertz repricing; FY2026 guidance hold; CS margin |
| Buyback authorization expiry | 13 Nov 2026 | Renewal vs debt paydown priority |
| Permanent CEO appointment | H2 2026 – H1 2027 | Profile: operator vs dealmaker |
| Third RAC (Enterprise) renewal | — | Terms, insourcing rights |
| Segment re-definition | FY2026 10-K (~Feb 2027) | New reporting structure; possible Parking strategic review |
| California go-lives (Glendale, Long Beach, LA) | Autumn–end 2026 | Installation pace; citation volumes |
| NYC camera additions and SLA performance | Ongoing | Service credits / liquidated damages |
| FY2027 guidance | Feb 2027 | Run-rate EBITDA after repricing and cost actions |
| Securities class action | Ongoing | Motion to dismiss outcome |
| Credit rating actions | Ongoing | Any downgrade on VM Consolidated debt |
Analyst verdict
Redflex no longer exists as an investable security. Its legacy is now one modest but successful part of Verra Mobility: the international enforcement hardware and maintenance business (Australia, UK) plus US programme capacity folded into Government Solutions. Australian revenue up 44% in two years suggests the 2021 A$152.5M purchase was sound. That cannot be said of the T2 Systems acquisition, which has absorbed over US$200M of write-downs.
The investment question is therefore Verra Mobility, which in 2026 moved from a premium-quality compounder to a stressed turnaround. The core issue is not demand. Tolling volumes, NYC camera counts and the California pipeline are all growing. The core issue is the distribution of value: Verra's largest customers have shown they can capture much of the economics through repricing and partial insourcing. That makes the pre-2026 margin structure (46% Adjusted EBITDA, 65% Commercial margins) a historical artefact rather than a base case.
At ~4x forward EBITDA, with ~24% FCF yield and no maturities until 2030, the equity already discounts a severe outcome. Real upside requires three things:
-
a stable renewal with the third RAC;
-
evidence that Government Solutions margins can recover toward the ~30% long-term level management cited in 2025 as installations convert to recurring service; and
-
a credible permanent CEO with a cost and capital-allocation plan that favours deleveraging over buybacks.
The downside path is further RAC concessions, NYC service penalties and continued Parking erosion. Together these could push leverage above 3x and leave the equity as a levered option on Government Solutions.
Net assessment: a high-risk, deep-value special situation. Position sizing should reflect binary customer risk. The decisive data points are the November 2026 Q3 print and the February 2027 FY2027 guidance. Until those land, a "hold / speculative" stance, consistent with the prevailing sell-side Neutral/Hold posture, is analytically defensible.
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View Subscription PlansExecutive Leadership
Executive Leadership Team
| Name | Title | Tenure | Prior roles | Education | Age (birth yr) |
|---|---|---|---|---|---|
Jonathan (Jon) Keyser | Interim President & CEO (from 31 May 2026). Previously EVP, Chief Legal Officer (Dec 2022–) and Chief Transformation Officer (2025–) | Joined Dec 2022 | VP & GC, Honeywell PMT and UOP/Aerospace ISC (2019–22); Assistant GC, Harley-Davidson (2016–19); Hogan Lovells (2010–16); Colorado State House member (2014–16); USAF intelligence officer (Iraq, Afghanistan) | BS, US Air Force Academy; JD, University of Denver | 44 |
Craig C. Conti | EVP & CFO | Since Apr 2022 | CFO, Century Aluminum (2018–22); CFO, ITW welding (2014–18); GE HealthCare IT FP&A; 15 years at GE | MBA, Kellogg (Northwestern); BS Finance, Siena College | 48 |
Stacey Moser | Chief Customer Officer (from 17 Jun 2026). Previously EVP Commercial Services (Jul 2025–) | Joined Jul 2025 | CCO, Universal Robots (2023–25); CCO, GE Digital grid software (2021–23); VP Global Sales & Ops, Tektronix/Fortive; Texas Instruments; Motorola | BSEE, Purdue | 48 |
Lin Bo | SVP, Parking Solutions (T2) | Since Sep 2024 | GM, Filtration Group (2023–24); Danaher (9 years); ZS Associates | MBA, Harvard; BSc Eng, University of Toronto | 40 |
Hiten Patel | Chief Accounting Officer | — | — | — | 1982 (Yahoo) |
Jason Rivera | Chief Product & Technology Officer | — | — | — | — |
Kristen Young | SVP, General Counsel & Chief Compliance Officer | Not disclosed (likely succeeded Keyser in the legal role) | — | — | — |
Mark Zindler | VP Investor Relations | — | — | — | — |
“—” = not publicly disclosed.
Executive Leadership Team — David M. Roberts
| Name | Role | Departure | Context |
|---|---|---|---|
David M. Roberts | President & CEO and director (CEO since Oct 2018; ATS COO 2014–18) | 1 Jun 2026 | The Board said it was the right time for a leadership transition. The departure came six days after the Avis termination notice (8-K 1 Jun 2026) |
Jonathan Baldwin | EVP Government Solutions (Apr 2022–) | 9 Jul 2026 | Departure disclosed in mid-June 2026 alongside the realignment |
Steve Lalla | EVP Commercial Services (Feb 2021–) | 30 Jul 2025 | Succeeded by Stacey Moser; received severance per proxy |
Mark Talbot (ex-Redflex CEO) | Led Government Solutions after the Redflex acquisition (2021) | — | Succeeded by Baldwin in Apr 2022 |
Directors' Remuneration
| Named executive officer | 2025 base salary (USD) | 2024 base salary (USD) | AIP target (% of salary) | Notes |
|---|---|---|---|---|
David M. Roberts (former CEO) | 700,000 | 675,000 | 100 | LTI mix 70% PSU / 30% RSU; ~89% of 2025 pay variable |
Craig C. Conti (CFO) | 500,000 | 485,000 | 75 | LTI 60% PSU / 40% RSU |
Stacey Moser | 450,000 | 0 | 70 | Joined 21 Jul 2025 |
Jonathan Baldwin | 430,000 | 414,000 | 75 | Departed Jul 2026 |
Jonathan Keyser | 450,000 | 414,000 | 75 | Raised Sep 2025 for retention |
Steve Lalla | 460,000 | 453,000 | 75 | Departed 30 Jul 2025 |
Board of Directors
| Director | Age | Since | Committees | Background |
|---|---|---|---|---|
Patrick J. Byrne (Chair) | 65 | Nov 2020 (Chair since 2022) | Audit | Chair of Diebold Nixdorf, GXO Logistics, Stronvar Aerospace; ex-GE (CEO GE Digital, CEO Onshore Wind, SVP Operational Transformation); ex-Fortive/Tektronix; ex-Micron director |
John H. Rexford | 69 | Oct 2018 | Audit (Chair); Nominating & Governance | Ramona Park Consulting; ex-Xerox Global M&A head; ex-CFO, Affiliated Computer Services; ex-Exela director |
Douglas L. Davis | 64 | Jun 2019 | Compensation (Chair); Nominating & Governance | Oshkosh and Cerence director; ex-Intel SVP (Automated Driving, IoT) |
Cynthia A. Russo | 56 | Jun 2019 | Audit; Compensation | PAR Technology and Verifone audit chair; ex-CFO Cvent and MICROS; CPA |
Michael P. Huerta | 69 | May 2021 | Nominating & Governance (Chair) | Former FAA Administrator (2013–18); Delta Air Lines and Joby Aviation director; ex-ACS (now Conduent) transportation group president |
Raj Ratnakar | 58 | Feb 2024 | Compensation | Ex-Chief Strategy Officer DuPont and Fortive; ex-McKinsey; private equity adviser |
Major Shareholders
| Holder | Shares | % of class | As-of / source |
|---|---|---|---|
BlackRock, Inc. | 22,723,449 | 14.96 | 13G/A 18 Jul 2025 (2026 proxy) |
T. Rowe Price Associates | 9,612,440 | 6.33 | 13G 17 Feb 2026 (2026 proxy) |
The Vanguard Group | 17235167 (prior filing) | 11.35 (prior) | Vanguard reported 0% on a disaggregated basis from 13 Mar 2026 (2026 proxy) |
Wellington Management | 7,059,237 | ~4.6 (computed) | 13F Q4 2025 via MarketBeat |
Sunriver Management | 2,956,976 | ~1.9 (computed) | 13F Q4 2025 via MarketBeat |
Undisclosed holder (MarketBeat) | 2,924,781 | ~1.9 (computed) | 13F Q4 2025 |
Dimensional Fund Advisors, Morgan Stanley | Not captured | — | Increased positions in Q4 2025 (MarketBeat) |
All directors & executive officers (12 persons) | 1,922,361 | 1.27 | 2026 proxy (record date 24 Mar 2026) |
Competitive Landscape
Competitors by Segment
| Segment | Competitor | Type | Positioning vs Verra |
|---|---|---|---|
Government Solutions | Conduent (Transportation segment) | US-listed BPO; tolling, transit, legacy enforcement | Sold its Curbside Management and Public Safety Solutions businesses in 2024 (Conduent 10-K FY2025). Now a weaker direct enforcement rival; strong in tolling back-offices |
Government Solutions | Modaxo (Constellation Software group) | — | Inherits municipal enforcement and parking contracts |
Government Solutions | Jenoptik (Smart Mobility Solutions) | German photonics group | Expanding in the US through a go-to-market transition; FY2025 SMS revenue +8.5% |
Government Solutions | Sensys Gatso Group | Swedish traffic enforcement specialist | Systems sales plus TRaaS; US presence; FY2025 revenue SEK 719M |
Government Solutions | BusPatrol | Private; school bus stop-arm | Direct rival in the stop-arm category (market share not disclosed) |
Government Solutions | Hayden AI | Private; AI bus-mounted lane enforcement | Rival in bus-lane enforcement (not disclosed) |
Government Solutions | Altumint, Blue Line Solutions, NovoaGlobal | Private US enforcement vendors | Regional programmes, speed and red-light (not disclosed) |
Government Solutions | Rekor Systems | US-listed AI roadway intelligence | Adjacent (ALPR/data) rather than full-programme BOOM |
Commercial Services | RAC in-house toll programmes | Customer insourcing | Primary 2026 threat. Avis secured the right to perform certain activities internally |
Commercial Services | Bestpass; PrePass (fleet tolling) | Private fleet toll aggregators | Compete for trucking and fleet tolling |
Commercial Services | Fleet-card and payments players (Wex, Fleetcor/Corpay) | Payments | Toll management add-ons; partly partners (U.S. Bank Voyager) |
Parking Solutions | Passport, ParkMobile/EasyPark, Flowbird, Amano/AIMS, gtechna, Genetec | Parking SaaS and hardware | Fragmented. T2's hardware revenue is shifting to mobile; impairments suggest share or price pressure |
Peer Comparison FY2025
| Company / segment | Revenue (FY2025) | YoY growth | EBITDA margin | Source |
|---|---|---|---|---|
Verra Mobility (group) | US$979.1M | +11.4% | 42.5% (Adjusted) | FY2025 8-K |
Conduent – Transportation segment | US$609M | +3.9% | 3.0% (Adjusted) | Conduent Q4 2025 call (MarketBeat) |
Jenoptik – Smart Mobility Solutions | €129.7M | +8.5% | 13.6% | Jenoptik Annual Report 2025 |
Sensys Gatso Group | SEK 719M | +14% (+20% constant currency) | 15.2% | Sensys Gatso year-end report 2025 |
