Verra Mobility (NASDAQ:VRRM) Announces Quarterly Earnings Results, Misses Estimates By $0.02 EPS

Verra Mobility (NASDAQ:VRRM) posted its quarterly earnings results on Tuesday. The company reported $0.30 EPS for the quarter, missing analysts’ consensus estimates of $0.32 by ($0.02), FiscalAI reports. Verra Mobility had a return on equity of 60.72% and a net margin of 5.42%.The company had revenue of $257.86 million during the quarter, compared to analyst estimates of $241.17 million. During the same quarter in the previous year, the business posted $0.33 earnings per share. The company’s revenue for the quarter was up 16.4% compared to the same quarter last year. Verra Mobility updated its FY 2026 guidance to 1.320-1.380 EPS.

Here are the key takeaways from Verra Mobility’s conference call:

• Signed and registered a $998 million New York City automated photo enforcement contract over five years (with a five‑year renewal option); Q4 included roughly $22M of revenue related to the NYC red light expansion.
• Fourth‑quarter total revenue increased 16% year‑over‑year (Government Solutions +25%) and the company booked about $64M of incremental ARR in 2025, highlighting strong wins and expanded addressable market.
• 2026 guidance calls for total revenue of $1.02B–$1.03B (~5% growth), adjusted EBITDA of $405M–$415M (~40% margin, ~250 bps below 2025), and adjusted EPS of $1.32–$1.38, reflecting mixed near‑term dynamics.
• Near‑term margin headwinds are anticipated from New York City price normalization and Minority/Women‑Owned Business subcontractor requirements, which Craig quantified at about $22–$24M annually and are expected to pressure Government Solutions margins ~450–500 bps in 2026.
• Company is investing in its Mosaic cloud enforcement platform and connected‑vehicle initiatives, expecting Mosaic to drive $10–$20M of annual operating expense savings starting in 2027 and positioning Verra for long‑term AI/autonomy tailwinds.

Verra Mobility Stock Up 0.8%

NASDAQ VRRM traded up $0.14 on Tuesday, reaching $18.71. The company had a trading volume of 1,436,564 shares, compared to its average volume of 1,456,911. The company has a quick ratio of 2.35, a current ratio of 2.45 and a debt-to-equity ratio of 2.55. The company’s fifty day moving average is $20.92 and its 200 day moving average is $22.65. Verra Mobility has a 52-week low of $17.08 and a 52-week high of $26.38. The stock has a market capitalization of $2.99 billion, a P/E ratio of 58.47, a P/E/G ratio of 2.99 and a beta of 0.59.

Wall Street Analysts Forecast Growth

Several analysts have recently commented on the company. UBS Group raised their target price on Verra Mobility from $29.00 to $31.00 and gave the company a “buy” rating in a research note on Thursday, October 30th. JPMorgan Chase & Co. initiated coverage on Verra Mobility in a research note on Monday, January 26th. They issued a “neutral” rating and a $25.00 price objective for the company. Wall Street Zen upgraded Verra Mobility from a “buy” rating to a “strong-buy” rating in a report on Saturday, December 20th. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Verra Mobility in a report on Monday, December 29th. Two analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $27.25.

Institutional Trading of Verra Mobility

Institutional investors and hedge funds have recently made changes to their positions in the company. Global Retirement Partners LLC purchased a new position in Verra Mobility during the fourth quarter worth about $27,000. Caitong International Asset Management Co. Ltd increased its stake in Verra Mobility by 967.8% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 1,260 shares of the company’s stock valued at $28,000 after buying an additional 1,142 shares during the last quarter. EverSource Wealth Advisors LLC increased its stake in Verra Mobility by 439.4% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,494 shares of the company’s stock valued at $38,000 after buying an additional 1,217 shares during the last quarter. Osaic Holdings Inc. lifted its position in shares of Verra Mobility by 285.8% during the 2nd quarter. Osaic Holdings Inc. now owns 3,044 shares of the company’s stock worth $72,000 after buying an additional 2,255 shares in the last quarter. Finally, Smartleaf Asset Management LLC boosted its stake in shares of Verra Mobility by 46.7% in the 2nd quarter. Smartleaf Asset Management LLC now owns 3,414 shares of the company’s stock worth $87,000 after buying an additional 1,087 shares during the last quarter.

Verra Mobility Company Profile

Verra Mobility, traded on the Nasdaq under the ticker VRRM, is a leading provider of smart mobility solutions designed to improve safety, efficiency and compliance for transportation authorities and commercial fleets. The company develops and operates automated traffic enforcement systems, toll and violation management platforms, and connected-vehicle services. Through its technology offerings, Verra Mobility helps public agencies enhance road safety, reduce congestion and streamline revenue collection for tolling and parking.

Verra Mobility’s core products include red-light and speed-camera enforcement programs, license plate recognition systems, and cloud-based violation processing software.