Earnings Releases·Oct 30, 2026, 8:35 AM ET

Verra Mobility — Third Quarter 2026 Earnings Summary

**Financial Results:** Q3 2026 revenue declined 1% to $258.9 million and net income fell 14% to $40.4 million ($0.27/share), while Adjusted EBITDA dropped 8% to $103.9 million; however, Free Cash Flow surged 82% to $89.4 million and operating cash flow rose to $114.5 million.
**Segment Performance:** Government Solutions revenue grew 12% to $136.8 million driven by safety services and NYCDOT installations, whereas Commercial Services revenue fell 14% to $100.3 million due to reduced rental car tolling revenue and less favorable contract terms.
**Guidance & Outlook:** The company reaffirmed full-year 2026 guidance for revenue ($945M–$965M), Adjusted EBITDA ($360M–$370M), and Adjusted EPS ($1.11–$1.17), assuming a TSA volume decline of over 1% compared to 2025.
**Strategic & Leadership Changes:** The Board appointed Jon Newhard as CEO and Matthew Kvarda as Interim CFO effective November 2026; the company terminated its agreement with Avis Budget Group effective January 2027 and renewed its partnership with Hertz for five years on less favorable terms.
**Balance Sheet & Impairments:** Net debt decreased to $903.3 million (2.2x leverage) and share repurchases totaled $51.6 million for the first nine months, offset by $104.4 million in goodwill and intangible asset impairments recorded in the Parking Solutions segment.