Verra Mobility Q3 revenue beats estimates on strong demand

Overview

• Verra Mobility Q3 revenue grows 16% yr/yr, beating analyst expectations, per LSEG data

• Adjusted EPS for Q3 also beats consensus

• Company expands stock repurchase program by $150 mln, indicating financial confidence

Outlook

• Verra Mobility raises 2025 revenue guidance to $955 mln-$965 mln

• Company maintains 2025 Adjusted EBITDA guidance at $410 mln-$420 mln

• Company anticipates mid-single digit revenue growth for 2026

Result Drivers

• NYCDOT EXPANSION - Revenue growth driven by NYCDOT red-light program expansion, contributing $17 mln in Q3 revenue

• GOVERNMENT SOLUTIONS GROWTH - 19% growth in Government Solutions service revenue due to NYCDOT and enforcement programs

• COMMERCIAL SERVICES INCREASE - Growth in Commercial Services from product adoption, tolling activity, and European operations

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the business support services peer group is "buy"

• Wall Street's median 12-month price target for Verra Mobility Corp is $30.00, about 20% above its October 28 closing price of $24.00

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release: ID:nPn9qD4C2a

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)