Overview

* Verra Mobility ( VRRM ) 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 ( VRRM ) 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

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $261.89 $237.70

Revenue mln mln (6

Analysts

)

Q3 Beat $0.37 $0.34 (7

Adjusted Analysts

EPS )

Q3 Net $46.80

Income mln

Q3 Beat $113.30 $107.60

Adjusted mln mln (6

EBITDA Analysts

)

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 ( VRRM ) 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:

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(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.)