Verra Mobility Corporation Q4 FY2025 earnings call

• Closed 2025 with strong execution across 3 segments. • Signed NYC DOT contract with $998M over 5 years. • Government Solutions as primary value creation engine, growing with high win rates. • T2 Systems seeing early momentum in decreasing churn. • Commercial Services a durable cash-generative business. • Capital deployment disciplined, prioritizing growth areas, M&A, and share repurchases. • Investing in technology platforms like MOSAIC and connected vehicle platform

Government Solutions: Fourth quarter total revenue increased 25% over Q4 2024, driven by NYC Red-Light expansion; full year 2025 total revenue $461M, 18% increase. Commercial Services: Q4 revenue growth 10%, RAC tolling up 16%, FMC down 8%; full year 2025 revenue $436M, 7% growth. Parking Solutions: Q4 revenue $21M, segment profit ~$2M; full year 2025 revenue $83M, 2% increase

• 2026 total revenue expected $1.02B - $1.03B (5% midpoint growth). • Adjusted EBITDA $405M - $415M (40% margin). • Non-GAAP adjusted EPS $1.32 - $1.38 per share. • Free cash flow $150M - $160M. • Commercial Services mid-single-digit revenue growth, TSA volume modest growth. • Government Solutions high single-digit service revenue growth, margins impacted by NYC contract. • Parking Solutions mid-single-digit revenue growth

• Legislative activity and public debate about automated enforcement programs. • Inclement weather impacting revenue pacing. • Customer churn in FMC business. • Competitive landscape and potential impact of new entrants

Q: Faiza Alwy asked about quarterly cadence and political environment around automated photo traffic enforcement.

A: Craig Conti discussed Q1 revenue flatness due to FMC churn, weather, and NYC contract price normalization; David Roberts talked about normal political noise around automated enforcement.

Q: Tomo Sano asked about NYC contract margin impact and AI.

A: Craig Conti explained margin impact from contract elements and MWBE requirements; David Roberts spoke about AI integration in business.

Q: Dan Moore asked about cash flow and working capital.

A: Craig Conti discussed working capital and CapEx expectations.

Q: David Koning asked about government business ARR growth and margins.

A: Craig Conti said government business growth holds, margins will improve.

Q: Shefali Tamaskar asked about AI trade-offs.

A: David Roberts talked about partnering and internal innovation for AI