Verra Mobility Reports $879.2 Million Revenue with 7.6% Growth, Net Income Declines Due to Goodwill Impairment

Verra Mobility Corporation reported a total revenue of $879.2 million for the fiscal year ended December 31, 2024, marking a 7.6% increase from $817.3 million in 2023. The growth was primarily driven by increased service revenue in its Commercial Services and Government Solutions segments, which benefited from higher travel volumes and expanded enforcement programs. However, net income decreased significantly to $31.4 million, down 44.8% from $57.0 million in the previous year, largely due to a $97.1 million goodwill impairment in the Parking Solutions segment.

The company’s Commercial Services segment generated approximately $407.7 million in revenue, accounting for 46% of total revenue, while the Government Solutions segment contributed about $390.9 million, or 44% of total revenue. The Parking Solutions segment, which provided $80.6 million, represented 9% of total revenue. Notably, the company processed over 190 million transactions in its Parking Solutions segment, indicating strong engagement metrics. The total employee headcount as of December 31, 2024, was 1,879, with a majority based in the United States.

In terms of strategic developments, Verra Mobility executed a share repurchase program, spending $200 million to repurchase approximately 7.9 million shares during the fiscal year. The company also refinanced its debt, reducing its interest rate by an aggregate of 111.4 basis points, which is expected to lower future interest expenses. The company extended its contract with the New York City Department of Transportation (NYCDOT) through December 31, 2025, allowing it to continue operating its automated enforcement program while participating in a competitive procurement for a new contract.

Looking ahead, Verra Mobility anticipates continued growth driven by increased adoption of its technology solutions and expansion into new markets. However, the company faces challenges, including potential changes in government regulations affecting automated enforcement and competition from both existing and new market entrants. The management remains focused on optimizing operational efficiencies and maintaining strong relationships with key customers to navigate these challenges effectively.