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Verra Mobility Q3 revenue beats on government solutions segment growth

By Reuters News


Overview

  • U.S. smart mobility tech firm's Q3 revenue fell 1% yr/yr but beat analyst expectations

  • Adjusted EPS for Q3 beat analyst expectations

  • Company reaffirmed full-year 2026 guidance


Outlook

  • Verra Mobility reaffirms 2026 full-year revenue guidance of $945 mln to $965 mln

  • Company expects 2026 adjusted EBITDA of $360 mln to $370 mln

  • Company sees 2026 adjusted EPS of $1.11 to $1.17


Result Drivers

  • SEGMENT PERFORMANCE - Co said Q3 revenue decline was due to lower Commercial Services revenue, partly offset by growth in Government Solutions

  • CONTRACT CHANGES & TRAVEL DEMAND - Commercial Services segment decline driven by less favorable contract terms, fleet volume reductions, and lower travel demand

  • GOVERNMENT SOLUTIONS EXPANSION - Growth in Government Solutions segment attributed to expanded services and new camera installations


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$258.90 mln

$241.25 mln (7 Analysts)

Q3 Adjusted EPS

Beat

$0.36

$0.26 (8 Analysts)

Q3 Net Income

$40.40 mln

Q3 Adjusted EBITDA

Beat

$103.90 mln

$88.92 mln (7 Analysts)


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 8 "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 Corporation is $6.00, about 79.6% above its October 29 closing price of $3.34

  • The stock recently traded at 3 times the next 12-month earnings vs. a P/E of 4 three months ago


Reuters Recommended Reads

  • Oct 29 - XPO Q3 revenue rises 12%, adjusted EPS beats estimates

  • Oct 29 - Saia Inc Q3 revenue rises 17%, beats analyst estimates

  • Oct 29 - Transportation broker RXO Q3 profit beats on growth in truckload volume


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

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