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

Verra Mobility (NASDAQ:VRRM) issued its earnings results on Tuesday. The company reported $0.30 earnings per share for the quarter, missing analysts’ consensus estimates of $0.32 by ($0.02), FiscalAI reports. The company had revenue of $257.86 million during the quarter, compared to analyst estimates of $241.17 million. Verra Mobility had a net margin of 5.42% and a return on equity of 60.72%. The business’s quarterly revenue was up 16.4% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.33 EPS. 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 Trading Up 0.8%

Shares of NASDAQ VRRM traded up $0.14 during midday trading on Tuesday, reaching $18.71. The stock had a trading volume of 1,436,564 shares, compared to its average volume of 1,456,911. The company’s 50 day moving average price is $20.92 and its 200 day moving average price is $22.65. The company has a debt-to-equity ratio of 2.55, a quick ratio of 2.35 and a current ratio of 2.45. Verra Mobility has a twelve month low of $17.08 and a twelve month high of $26.38. The firm has a market cap of $2.99 billion, a price-to-earnings ratio of 58.47, a price-to-earnings-growth ratio of 2.99 and a beta of 0.59.

Hedge Funds Weigh In On Verra Mobility

Several hedge funds and other institutional investors have recently bought and sold shares of VRRM. Empowered Funds LLC acquired a new stake in Verra Mobility during the 4th quarter worth about $109,000. XTX Topco Ltd boosted its position in shares of Verra Mobility by 896.8% during the 4th quarter. XTX Topco Ltd now owns 205,095 shares of the company’s stock valued at $4,596,000 after purchasing an additional 184,519 shares in the last quarter. VARCOV Co. acquired a new stake in Verra Mobility during the fourth quarter worth approximately $496,000. Wellington Management Group LLP increased its holdings in Verra Mobility by 4.9% in the fourth quarter. Wellington Management Group LLP now owns 7,059,237 shares of the company’s stock worth $158,198,000 after purchasing an additional 329,264 shares in the last quarter. Finally, Tudor Investment Corp ET AL lifted its stake in Verra Mobility by 57.9% in the fourth quarter. Tudor Investment Corp ET AL now owns 138,533 shares of the company’s stock valued at $3,105,000 after buying an additional 50,823 shares during the period.

Analyst Ratings Changes

VRRM has been the subject of a number of recent research reports. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Verra Mobility in a report on Monday, December 29th. Wall Street Zen raised Verra Mobility from a “buy” rating to a “strong-buy” rating in a research note on Saturday, December 20th. JPMorgan Chase & Co. initiated coverage on shares of Verra Mobility in a research report on Monday, January 26th. They set a “neutral” rating and a $25.00 target price on the stock. Finally, UBS Group boosted their target price on shares of Verra Mobility from $29.00 to $31.00 and gave the stock a “buy” rating in a report on Thursday, October 30th. Two research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $27.25.

About Verra Mobility

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.