Verra Mobility Corporation (VRRM) AI Stock Analysis
VRRM AI stock analysis summary
AI ResearchVerra Mobility Corporation provides smart mobility technology, automated photo enforcement, and toll management solutions. The company generated $1.01B in trailing twelve-month revenue with an operating margin of 27.2%. However, its stock has declined 88.2% over the past year and carries $1.09B in total debt.
- Market cap
- $434.7M
- Revenue (TTM)
- $1.01B
- P/E
- 10.6x fwd 16.0x
- 1Y return
- -88.2% S&P 500 16.8%
- Avg. target
- $6.40 123.8% vs last close
Bull case
- Verra Mobility maintains strong cash generation, producing $136.7M in free cash flow and $255.8M in operating cash flow in FY2025.
- The company generated a high operating margin of 27.2% and gross margin of 96.9% in FY2025.
- Analyst consensus sets a mean price target of $6.40, representing a 123.8% upside from the recent close of $2.86.
Bear case
- The balance sheet carries substantial leverage with $1.09B in total debt against $54.8M in cash and a debt-to-equity ratio of 4.86.
- Earnings for the latest quarter ended June 30, 2026, declined 15.0% year-over-year.
- Analysts forecast revenue to fall 3.4% and EPS to decline 17.1% for the next fiscal year.
What Verra Mobility does
Verra Mobility Corporation delivers smart mobility technology solutions and services across the United States, Australia, Canada, and Europe. It operates through three main segments: Government Solutions, Commercial Services, and Parking Solutions. Government Solutions provides automated safety camera programs detecting speeding, red light, and bus lane violations for municipalities and law enforcement. Commercial Services handles automated tolling, violations management, and title and registration for rental car firms and large fleets. Parking Solutions delivers integrated software and hardware for parking management at universities, municipalities, and transit hubs.
Growth and profitability
Between FY2021 and FY2025, annual revenue expanded from $550.6M to $979.1M, representing a 5-year compound annual growth rate of 20.0%. Net income reached $136.6M in FY2025, up from $41.4M in FY2021, while gross margin stood at 96.9%. For the trailing twelve months, revenue totaled $1.01B, and the operating margin was 27.2%. In the latest quarter ended June 30, 2026, revenue increased 11.7% year-over-year, while quarterly earnings declined 15.0%.
Balance sheet and cash flow
As of June 30, 2026, Verra Mobility held $54.8M in cash and short-term investments against $1.09B in total debt, resulting in net debt of $1.03B. Total assets stood at $1.62B with shareholders' equity of $223.6M, yielding a debt-to-equity ratio of 4.86. The company had a current ratio of 2.06. In FY2025, operating cash flow was $255.8M, capital expenditures were $119.1M, free cash flow totaled $136.7M, and share buybacks absorbed $133.4M.
Valuation and performance
At a share price of $2.86, Verra Mobility has a market cap of $434.7M and an enterprise value of $1.55B. The stock trades at a trailing P/E of 10.6x and an EV/EBITDA of 5.6x, compared to medians of 28.1x and 16.6x, respectively, for the median of its US-listed Technology peers. Its price-to-sales multiple is 0.4x versus the peer median of 2.8x. Over the past year, the stock fell 88.2%, while the S&P 500 gained 16.8%.
What analysts expect
Wall Street coverage includes 7 Hold ratings and zero Buy or Sell ratings. The mean price target is $6.40, which is 123.8% above the last close of $2.86. For the fiscal year ending December 31, 2026, consensus estimates project EPS of $1.14 on revenue of $962.0M. For the next fiscal year, 7 analysts estimate EPS of $0.94 on revenue of $929.1M. Verra Mobility beat EPS estimates in 3 of the last 4 quarters, with next earnings scheduled for November 4, 2026.
Key risks and what to watch
- Net debt of $1.03B limits financial flexibility given cash reserves of only $54.8M as of June 30, 2026.
- The stock is trading 72.8% below its 200-day average and down 87.2% year-to-date.
- Consensus estimates project full-year FY2026 revenue to drop to $962.0M from $979.1M in FY2025.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this VRRM AI stock analysis
This page is an AI-written research summary of Verra Mobility Corporation (VRRM). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: VRRM income statement, VRRM balance sheet, VRRM key metrics, VRRM analyst forecast, VRRM chart. See the VRRM stock overview for the latest quote and news.
VRRM AI stock analysis FAQ
Does Verra Mobility pay a dividend?
No, Verra Mobility does not pay a dividend. In FY2025, the company returned capital through $133.4M in share buybacks.
What is Verra Mobility's current debt level?
As of June 30, 2026, Verra Mobility had $1.09B in total debt and $54.8M in cash, resulting in net debt of $1.03B and a debt-to-equity ratio of 4.86.
What is the consensus analyst target for VRRM stock?
The mean analyst price target is $6.40, which is 123.8% above the stock's closing price of $2.86. All 7 covering analysts rate the stock a Hold.
When is Verra Mobility's next earnings report?
Verra Mobility is scheduled to report its next earnings on November 4, 2026.