Verra Mobility (VRRM) AI Stock Analysis

• Market Cap: $3.67B
• Dividend Yield: N/A
• Average Volume (3M): 1.03M
• Price to Earnings (P/E): 71.9
• Beta (1Y): 0.32
• Revenue Growth: 8.52%
• EPS Growth: -45.92%
• Country: US
• Employees: 1,754
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.37
• Shares Outstanding: 159,564,450
• 10 Day Avg. Volume: 1,098,660
• 30 Day Avg. Volume: 1,027,378
• PEG Ratio: -2.69
• Price to Book (P/B): 15.06
• Price to Sales (P/S): 4.54
• P/FCF Ratio: 26.13
• Enterprise Value/Market Cap: 1.36
• Enterprise Value/Revenue: 5.30
• Enterprise Value/Gross Profit: 6.10
• Enterprise Value/Ebitda: 13.18
• 1Y Price Target: $28.33
• Price Target Upside: 22.06% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: $26.00 ▲(12.02% Upside)

Verra Mobility's overall stock score reflects strong financial performance and positive earnings call highlights, including significant revenue growth and strategic contract wins. However, technical indicators suggest bearish momentum, and valuation metrics indicate potential overvaluation, which tempers the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth demonstrates expanding market reach and product adoption, supporting long-term business sustainability.

New York City Contract

This major contract expansion enhances revenue visibility and strengthens Verra Mobility's position in the government solutions market.

Legislative Wins

Legislative changes in California expand market opportunities, potentially driving future revenue growth and market penetration.

Negative Factors

High Leverage

Significant leverage can strain financial flexibility and increase risk, potentially impacting long-term operational stability.

Margin Pressure

Margin pressure due to contract requirements could reduce profitability, affecting the company's ability to invest in growth.

Fleet Management Revenue Decline

Continued revenue decline in Fleet Management suggests challenges in customer retention and market competitiveness.

Verra Mobility Business Overview & Revenue Model

Company Description

Verra Mobility (VRRM) is a leading provider of technology-driven solutions for the mobility and transportation sectors. The company specializes in vehicle registration, toll and violation processing, and software solutions that enhance mobility for government and commercial clients. Verra Mobility operates across various segments, including Automated Tolling, Parking Management, and Fleet Management, offering services such as electronic toll collection, violation management, and advanced fleet tracking systems.

How the Company Makes Money

Verra Mobility generates revenue through multiple key channels. The company primarily earns money from its automated tolling and violation processing services, where it charges fees for processing tolls and managing traffic violations on behalf of government entities and municipalities. Additionally, it derives income from parking management services, which includes the deployment of parking enforcement technologies and solutions. Fleet management solutions contribute to revenue as well, as businesses pay for software and services that improve vehicle tracking and operational efficiency. Significant partnerships with local and state governments, as well as collaboration with transportation agencies, enhance its revenue potential by expanding its service offerings and client base.

Verra Mobility Financial Statement Overview

Summary

Verra Mobility demonstrates solid financial health with strong profitability and improving leverage metrics. While revenue growth is moderate, the company maintains high margins and efficient cash flow management. The high debt-to-equity ratio remains a concern, but recent improvements indicate a positive trajectory.

Income Statement

Verra Mobility shows strong profitability with a high gross profit margin of 95.06% TTM, indicating efficient cost management. The net profit margin has improved to 4.30% TTM from 3.58% in the previous year, reflecting better bottom-line performance. Revenue growth is modest at 4.02% TTM, suggesting steady expansion. However, the EBIT margin has slightly decreased to 17.50% TTM, which could indicate rising operational costs.

Balance Sheet

The company's debt-to-equity ratio has improved to 2.99 TTM from 4.02, showing a reduction in leverage, yet it remains relatively high, posing potential financial risk. Return on equity is stable at 11.11% TTM, reflecting consistent shareholder returns. The equity ratio is not explicitly provided, but the improvement in debt metrics suggests a strengthening balance sheet.

Cash Flow

Operating cash flow to net income ratio is strong at 1.38 TTM, indicating healthy cash generation relative to earnings. However, free cash flow has decreased by 19.15% TTM, which could impact future investments. The free cash flow to net income ratio remains robust at 65.73%, suggesting efficient cash utilization despite recent declines.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	942.72M	879.21M	817.31M	741.60M	550.59M	393.59M
Gross Profit	819.75M	860.22M	773.85M	694.34M	515.44M	360.05M
EBITDA	379.51M	262.08M	287.52M	336.65M	229.64M	158.56M
Net Income	51.10M	31.45M	57.02M	92.47M	41.45M	-4.58M
Balance Sheet
Total Assets	1.78B	1.61B	1.79B	1.76B	1.84B	1.37B
Cash, Cash Equivalents and Short-Term Investments	196.10M	77.56M	138.63M	105.20M	101.28M	120.26M
Total Debt	29.99M	1.07B	1.07B	1.25B	1.28B	873.21M
Total Liabilities	1.38B	1.35B	1.37B	1.53B	1.58B	1.05B
Stockholders Equity	403.15M	265.13M	421.47M	231.07M	259.96M	315.57M
Cash Flow
Free Cash Flow	152.41M	152.79M	148.62M	170.15M	168.17M	22.65M
Operating Cash Flow	256.13M	223.64M	206.10M	218.34M	193.17M	46.91M
Investing Cash Flow	-103.34M	-69.72M	-58.29M	-48.59M	-475.97M	-24.15M
Financing Cash Flow	-164.99M	-211.43M	-117.79M	-164.93M	268.72M	-34.00M

Verra Mobility Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 23.21
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VRRM, the sentiment is Negative. The current price of 23.21 is above the 20-day moving average (MA) of 22.85, below the 50-day MA of 23.71, and below the 200-day MA of 23.74, indicating a bearish trend. The MACD of -0.62 indicates Positive momentum. The RSI at 30.95 is Neutral, neither overbought nor oversold. The STOCH value of 9.78 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VRRM.

Verra Mobility Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WNS	77 Outperform	―	―	21.23%	―	1.94%	26.15%
PAY	74 Outperform	$4.35B	70.87	11.81%	―	44.34%	45.96%
CNXC	69 Neutral	$2.22B	7.53	7.08%	3.81%	3.40%	53.13%
VRRM	64 Neutral	$3.67B	71.93	11.49%	―	8.52%	-45.92%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SAIC	61 Neutral	$3.95B	10.37	25.40%	1.74%	2.23%	48.38%
INGM	60 Neutral	$4.84B	16.73	7.51%	1.49%	7.06%	-8.83%

Verra Mobility Corporate Events

Verra Mobility’s Earnings Call: Growth Amid Challenges

Verra Mobility’s recent earnings call painted a picture of robust financial health, marked by significant revenue growth across all segments. While the company celebrated new contracts and legislative victories, concerns were raised about potential future margin pressures and revenue declines in specific areas.

Verra Mobility Reports Strong Q3 2025 Results

Verra Mobility Corporation is a leading provider of smart mobility technology solutions, operating primarily in the transportation sector, offering services that enhance safety, efficiency, and connectivity in urban environments.

Verra Mobility Expands Share Repurchase Program by $150M

Verra Mobility Corporation reported strong financial results for the third quarter of 2025, with a total revenue of $261.9 million, marking a 16% increase from the previous year. This growth was primarily driven by the expansion of the New York City Department of Transportation’s red-light program. The company also announced an increase in its share repurchase program by $150 million, bringing the total authorization to $250 million, reflecting its confidence in future performance and commitment to returning value to shareholders.

The most recent analyst rating on (VRRM) stock is a Hold with a $23.00 price target. To see the full list of analyst forecasts on Verra Mobility stock, see the VRRM Stock Forecast page.

Verra Mobility Secures $150 Million Credit Facility

On October 17, 2025, Verra Mobility Corporation’s subsidiaries entered into an Amended and Restated Revolving Credit Agreement with Bank of America, establishing a $150 million senior secured asset-based revolving credit facility. This agreement amends a previous credit agreement and includes a $35 million sublimit for letters of credit, maturing in 2030. The facility’s availability is based on valuations of certain assets, and it includes covenants limiting financial activities and requiring certain subsidiaries to act as guarantors. Additionally, Verra Mobility refinanced its existing senior secured term loans with a new term loan maturing in 2032, offering more favorable interest terms and mandatory prepayment provisions.

The most recent analyst rating on (VRRM) stock is a Hold with a $26.00 price target. To see the full list of analyst forecasts on Verra Mobility stock, see the VRRM Stock Forecast page.

Verra Mobility Approves Equity Award for Executive

On September 25, 2025, Verra Mobility‘s Compensation Committee approved a one-time equity award for Jonathan Keyser, the Executive Vice President and Chief Legal Officer, in the form of time-based restricted stock units valued at $300,000. This award, part of a retention arrangement, includes an increase in Mr. Keyser’s annual base salary to $450,000, a target bonus of 75% of his salary, and a long-term incentive award of $1,000,000, aiming to align with market standards and retain key leadership.

The most recent analyst rating on (VRRM) stock is a Hold with a $26.00 price target. To see the full list of analyst forecasts on Verra Mobility stock, see the VRRM Stock Forecast page.