Verra Mobility Q1 Revenue Flat at $223.6M; Government Solutions Up 4%
Verra Mobility reported first-quarter revenue of $223.6 million, up 0.1%, driven by a 4% increase in Government Solutions service revenue and offset by a 4% decline in Commercial Services. Net income fell to $26.7 million and operating cash flow dropped to $40.8 million.
1. Q1 Revenue and Segment Performance
Total revenue reached $223.6 million in the first quarter, up 0.1% year-over-year, with Government Solutions service revenue growing 4% thanks to $7.5 million from new speed, red light and bus lane program expansions, offset by a 4% decline in Commercial Services driven by fleet management customer churn.
2. Profitability Metrics
Net income declined to $26.7 million ($0.17 per share) from $32.3 million a year earlier, while adjusted EBITDA fell to $86.0 million with margins contracting to 38%, primarily due to higher operating expenses and reduced product sales, partially offset by a February legal settlement gain.
3. Cash Flow and Guidance
Operating cash flow dropped to $40.8 million from $63.0 million a year ago, reflecting lower net income, settlement-related share-based proceeds and increased working capital use; the company reaffirmed its full-year 2026 guidance, citing a robust pipeline and disciplined execution.