Verra Mobility (NASDAQ:VRRM) Posts Q4 Sales In Line With Estimates

Verra Mobility Corporation (NASDAQ: VRRM), a leading provider of smart mobility technology solutions, reported its fourth quarter and full-year 2024 financial results on February 27, 2025. The company's revenue for the quarter was $221.5 million, up 5% year-over-year (YoY) from $211.0 million in the same period last year. Full-year 2024 revenue reached $879.2 million, an 8% increase from $817.3 million in 2023. Despite a net loss of $(66.7) million in the fourth quarter due to a $97.1 million goodwill impairment in the Parking Solutions segment, Verra Mobility's strong operational performance and growth prospects remain intact.

Verra Mobility's revenue growth was driven by robust performance in its Commercial Services and Government Solutions segments. The Commercial Services segment, which provides automated toll and violations management, and title and registration solutions to rental car companies, fleet management companies, and other large fleet owners, generated $98.7 million in revenue, up 4% YoY from $94.5 million in Q4 2023. This growth was primarily due to increases in travel volume, product adoption, and tolling activity. The Government Solutions segment, which offers automated safety solutions to municipalities, school districts, and government agencies, reported revenue of $82.6 million, up 10% YoY from $75.1 million in Q4 2023. This growth was driven by the expansion of school bus stop arm, bus lane, and maintenance programs.

The Parking Solutions segment, which provides an integrated suite of parking software, transaction processing, and hardware solutions, experienced a revenue decline of 4% in Q4 2024, with revenue of $40.2 million compared to $42.0 million in the same period last year. This decline was primarily due to a reduction in professional services revenue related to parking management solutions, offset by increased revenue from software as a service product offerings. As a result, the segment's profit margin contracted from 22% to 14%.

Verra Mobility's strong operational performance and growth prospects are supported by its robust financial position. The company generated $223.6 million in net cash provided from operations in 2024, up from $218.89 million in 2023. Free cash flow for the year was $152.8 million, compared to $150.39 million in 2023. Verra Mobility's balance sheet remains strong, with a current ratio of 2.61 and a debt-to-equity ratio of 2.20.

Looking ahead, Verra Mobility anticipates continued growth and strong performance in its Commercial Services and Government Solutions segments. The company expects travel demand to remain resilient, driving ongoing strength in the Commercial Services segment. Additionally, Verra Mobility anticipates that its strong sales bookings in the Government Solutions segment will drive solid revenue growth over the foreseeable future. The company's Parking Solutions segment is expected to exit 2025 on a strong run-rate, as Verra Mobility focuses on expanding its software as a service product offerings and optimizing its parking management solutions.

Verra Mobility's 2024 financial results demonstrate the company's strong operational performance and growth prospects, despite challenges in its Parking Solutions segment. The company's revenue growth, driven by robust performance in its Commercial Services and Government Solutions segments, highlights the resilience and recurring revenue strength of Verra Mobility's business model. Verra Mobility's strong financial position, supported by its robust cash flow generation, enables the company to invest in future growth and maintain its balance of growth investments and shareholder returns.




In conclusion, Verra Mobility's Q4 and full-year 2024 results demonstrate the company's strong operational performance and growth prospects, despite challenges in its Parking Solutions segment. The company's revenue growth, driven by robust performance in its Commercial Services and Government Solutions segments, highlights the resilience and recurring revenue strength of Verra Mobility's business model. Verra Mobility's strong financial position, supported by its robust cash flow generation, enables the company to invest in future growth and maintain its balance of growth investments and shareholder returns. As Verra Mobility continues to execute on its strategic initiatives and capitalize on market trends, the company is well-positioned to achieve its long-term targets and deliver value to shareholders.