Verra Mobility Corporation ( VRRM ) announced that it will withdraw from Ontario after the province enacted a law banning automated speed enforcement cameras, effectively ending the company's involvement in a program it previously operated across multiple municipalities.

The prohibition, which took effect Nov. 14, immediately halted the use of speed cameras in the province. Verra Mobility ( VRRM ) said it will comply with the change and begin shutting down its systems. The company emphasized it is leaving Ontario only because the law requires it.

Executive Vice President Jon Baldwin said the firm is disappointed to see the end of a tool widely supported by drivers. He pointed to a study by SickKids and Toronto Metropolitan University showing school-zone speed cameras significantly reduced excessive speeding. Verra Mobility ( VRRM ) said its priority now is coordinating with local partners to safely unwind the program.

Also Read: CSG Systems Stock Soars As NEC Strikes $2.9 Billion Deal To Buy The Company

Financial Outlook

The company expects the withdrawal to result in a reduction of approximately $7 million in its annual revenue. Verra Mobility ( VRRM ) said the impact had already been included in its 2026 preliminary guidance shared during its late-October earnings call, and it does not plan to adjust its forecast.

Even as Ontario walks back automated enforcement, Verra Mobility ( VRRM ) continues expanding in other areas. The company recently introduced its new in-vehicle payments platform, AutoKinex, designed to streamline transactions for drivers.

The launch underscores its strategy to grow beyond its enforcement portfolio, as detailed in a separate update that highlighted seamless and secure payment capabilities.

Price Action: VRRM shares closed 4.92% lower at $20.86 on Thursday.

Read Next:

OpenAI Teams Up With Foxconn To Design And Manufacture AI Hardware In The US