Via Transportation, Inc. Q1 FY2026 earnings call

• Core Business Growth & Milestones

  • Total Q1 2026 revenue grew 29% YoY to $127 million, hitting an annual run rate of $510 million, a company milestone
  • Total platform customers grew 23% YoY to 838, a new record high
  • Adjusted EBITDA margin improved to -4.6% from -8.4% YoY, continuing steady progress toward profitability
  • Total sales pipeline reached a record $650 million, more than doubling year-over-year
  • Balance sheet remains strong with $348 million in cash and no outstanding debt as of March 31, 2026

• Product & Strategic Progress

  • VIA is the only provider of an end-to-end unified platform for entire transit system optimization and operation, built on proprietary AI-powered routing software
  • Full network orchestration contracts (integrating software and services across multiple transit modes) are accelerating, with 4 wins in 2026 YTD representing an inflection point for this larger opportunity
  • The proven successful transformation of the Sioux Falls full transit network, which reversed declining ridership and rising costs to deliver ~40% ridership growth, serves as a key reference for new network opportunities
  • Over 75% of new VIA code is now developed with AI, driving large R&D efficiency gains; R&D spend fell to 16% of revenue from 20% YoY even after accounting for $2 million in negative impact from the strong Israeli shekel
  • VIA has formed new autonomous vehicle (AV) partnerships with Waymo and Beep, including an upcoming deployment in West Palm Beach, and is positioned as the core orchestration layer for AV integration into public transit networks
  • Via AI Labs, the new division exploring AI-powered civic solutions beyond transit (including waste management, pothole scheduling, data unification, and social work caseload management), has already partnered with a dozen municipalities for early testing and shows strong initial interest
  • Flywheel effect is accelerating in core states: existing customer success drives higher win rates and larger pipeline contribution, with California holding nearly $100 million in active pipeline

• Expense Efficiency

  • Sales and marketing spend was 13% of revenue (14% YoY), with AI automation driving additional efficiency and strong ROI
  • G&A spend held steady at 15% of revenue year-over-year, in line with expectations
  • Quarterly revenue grew $74 million since Q1 2023, while adjusted operating expenses grew only $10 million over the same period, demonstrating significant operating leverage

VIA reports revenue on a geographic basis, with no formal product segment breakdown provided in the transcript. In Q1 2026, total company revenue was $127 million, up 29% year-over-year, reaching an annual run rate of $510 million, the first quarter over $500 million in annual run rate. The United States contributed 74% of total revenue, growing 36% year-over-year; California specifically saw 85% year-over-year revenue growth in the quarter. Internationally, the UK saw strong momentum with 68% year-over-year revenue growth, while Germany faced ongoing budgetary headwinds and delivered just 3% year-over-year growth, representing 16% of total company revenue. By business line, microtransit remains VIA's founding core offering, while full network orchestration (covering microtransit, paratransit, and fixed-route buses) is the fastest growing new line of business, with four new full network contracts awarded in 2026 year-to-date totaling $40 million in annual contract value. The new Via AI Labs division is in early exploration, with no material revenue contribution as of Q1 2026.

• Q2 2026 guidance:

  • Revenue expected between $132.5 million and $134 million, representing 23.7% to 25.1% year-over-year growth, below consensus expectations due to later contract launch timing and ongoing German headwinds
  • Adjusted EBITDA margin expected between -3% and -2.2%, with adjusted EBITDA between -$4 million and -$3 million

• Full-year 2026 guidance:

  • Revenue guidance raised to $547 million to $550 million, representing 26% to 26.6% year-over-year growth, up from prior guidance
  • Adjusted EBITDA guidance is maintained at -$12.5 million to -$7.5 million, despite $2 million in annualized negative impact from the strong Israeli shekel
  • VIA reaffirms its goal to deliver the first quarter of positive adjusted EBITDA (profitability) in Q4 2026

• Long-term guidance: VIA reaffirms its target of reaching 50% long-term gross margin, to be achieved through service cost optimization, AI and AV adoption, and accretive acquisitions

• Sustained constrained budgetary environment in Germany has created growth headwinds and elevated churn, with Germany remaining a largely siloed microtransit-only market that has not yet opened to full platform deployment, limiting growth longer-term if dynamics do not change
  • The Israeli shekel is at a 30-year high against the U.S. dollar, creating a $2 million annualized negative impact on adjusted R&D expenses and profitability, with foreign exchange volatility creating ongoing cost pressure for VIA's largest R&D center
  • Fuel price volatility creates near-term gross margin pressure; while most contracts allow for fuel cost pass-through to customers, near-term impacts are expected in Q2 2026 before pass-through is completed
  • Large full network orchestration contracts are a relatively new category for VIA, and historical win rates for these larger opportunities are still unproven, creating uncertainty around pipeline conversion timelines
  • Government procurement cycles for large contracts are inherently slow, and any lengthening of these cycles could delay revenue recognition from won opportunities
  • Autonomous vehicle commercialization is dependent on third-party developer progress and cost reductions, so material revenue and cost benefits from AV integration may take longer than expected to materialize

Q: Is VIA's increasing referenceability from successful deployments pulling forward RFP activity and shifting the market toward integrated opportunities that favor VIA? / A: Management confirms positive trends in flywheel states: win rates are higher, a large share of the total pipeline now comes from these regions, and customers are increasingly structuring RFPs around integrated software and service opportunities that play to VIA's unique competitive advantage. This is an encouraging, accelerating dynamic that aligns with VIA's strategic focus. (182 characters)

Q: What specific use cases is Via AI Labs developing, and how will investment in the division be balanced against profitability targets? / A: Early use cases focus on unified municipal data dashboards, optimized scheduling for sanitation and pothole repair, public safety data integration, and social work caseload management. Many of these solutions are easily scalable now thanks to AI, which reduces the custom work that previously prevented cross-city expansion. Management noted the division is being funded by efficiency savings from internal AI adoption, investments will be balanced to hit existing profitability targets, and AI Labs offerings are expected to be accretive to overall gross margins. (367 characters)

Q: What is driving the recent string of full network wins, and can this success scale across the business? / A: Full network opportunities have grown thanks to three factors: VIA's public listing increased credibility, product maturity across all transit verticals now supports end-to-end network offerings, and the market is shifting away from siloed procurement of separate software and services toward integrated solutions. While it is still early days, management notes recent wins are very encouraging, and government procurement's preference for proven providers should drive a flywheel effect for future network opportunities, creating a very large long-term growth runway if conversion holds. (352 characters)

Q: Can the German headwinds spread to other EU markets, and what is the core dynamic driving weakness in Germany? / A: Management emphasizes Germany is a unique case, not a sign of broader EU risk. Most other EU markets, including the UK (which is seeing 68% YoY growth and broad platform adoption), France, Nordics, and Benelux, are showing very positive dynamics. In Germany, VIA's revenue remains concentrated in the siloed microtransit vertical, and broader government budget instability has created pressure that has limited growth and increased churn. Management expects this to be temporary as VIA works to expand its full platform offering in the market over time. (354 characters)

Q: What is the nature of VIA's recent autonomous vehicle partnerships, and what is the long-term opportunity for AVs? / A: Current AV projects include embedding AV shuttles into VIA's full network service for West Palm Beach, with more partnerships with other AV developers in progress. VIA's preferred model is to integrate AVs directly into the core fleet of managed transit networks, rather than running standalone pilot projects. Management notes AVs are still expensive today, but as costs fall, they will create significant margin expansion opportunities, and VIA's position as the network orchestrator makes it the natural partner for both cities and AV developers. (318 characters)