$VRRM

VERRA MOBILITY Corp

CIK:0001682745|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Total revenue	$ 263,591	$ 236,025	$ 487,159	$ 459,279
Operating expenses	90,577	81,317	176,520	155,056
Selling, general and administrative expenses	43,990	48,466	84,843	99,967
Depreciation, amortization and (gain) loss on disposal of assets, net	29,167	29,473	58,458	57,287
goodwill impairment	64,037	0	64,037	0
Impairment of intangible assets	40,354	0	40,354	0
Total costs and expenses	296,370	172,831	468,138	338,700
(Loss) income from operations	(32,779)	63,194	19,021	120,579
Interest expense, net	15,486	16,572	30,893	33,208
Loss on extinguishment of debt	0	23	0	48
Other income, net	(6,040)	(6,003)	(10,134)	(10,112)
Total other expenses	9,446	10,592	20,759	23,144
(Loss) income before income taxes	(42,225)	52,602	(1,738)	97,435
Income tax provision	5,953	14,027	19,696	26,521
Net (loss) income	(48,178)	38,575	(21,434)	70,914
Other comprehensive (loss) income:
Change in foreign currency translation adjustment	(170)	6,386	824	8,513
Total comprehensive (loss) income	$ (48,348)	$ 44,961	$ (20,610)	$ 79,427
Net (loss) income per share:
Basic	$ (0.32)	$ 0.24	$ (0.14)	$ 0.44
Diluted	$ (0.32)	$ 0.24	$ (0.14)	$ 0.44
Weighted average shares outstanding:
Basic	151,945	159,478	151,896	159,511
Diluted	151,945	161,543	151,896	161,804
Service Revenue
Total revenue	$ 246,710	$ 223,477	$ 460,102	$ 435,379
Cost of revenue	14,210	4,629	21,601	9,412
Product Sales
Total revenue	16,881	12,548	27,057	23,900
Cost of revenue	$ 14,035	$ 8,946	$ 22,325	$ 16,978

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash Flows from Operating Activities:
Net income	$ (21,434)	$ 70,914
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	57,755	56,645
Amortization of deferred financing costs and discounts	1,122	1,903
Loss on extinguishment of debt	0	48
Share-based proceeds from legal settlement	(7,865)	0
Unrealized loss on remeasurement of share-based proceeds	2,628	0
Credit loss expense	7,210	13,856
Deferred income taxes	(5,262)	(4,467)
Stock-based compensation	7,147	13,735
UTP reserve release	0	(1,682)
goodwill impairment	64,037	0
Impairment of intangible assets	40,354	0
Other	881	1,227
Changes in operating assets and liabilities:
Accounts receivable	(32,412)	(23,674)
Unbilled receivables	(40,858)	(2,710)
Inventory	(9,745)	182
Prepaid expenses and other assets	11,037	5,975
Deferred revenue	(5,009)	(56)
Accounts payable and other current liabilities	22,931	7,900
Other liabilities	4,729	(1,683)
Net cash provided by operating activities	97,246	138,113
Cash Flows from Investing Activities:
Purchases of installation and service parts and property and equipment	(55,048)	(56,118)
Cash proceeds from the sale of assets	211	99
Net cash used in investing activities	(54,837)	(56,019)
Cash Flows from Financing Activities:
Borrowings on Amended Revolver	110,500	0
Repayment on Amended Revolver	(110,500)	0
Repayment of long-term debt	(3,444)	(4,509)
Equipment financing arrangements	2,908	0
Repayment of equipment financing arrangements	(210)	0
Payment of debt issuance costs	(536)	(262)
Share repurchase and retirement	(51,567)	0
Proceeds from the exercise of stock options	336	841
Payment of employee tax withholding related to RSUs and PSUs vesting	(5,474)	(6,990)
Net cash used in financing activities	(57,987)	(10,920)
Effect of exchange rate changes on cash and cash equivalents	450	1,597
Net (decrease) increase in cash, cash equivalents and restricted cash	(15,128)	72,771
Cash, cash equivalents and restricted cash - beginning of period	68,318	81,154
Cash, cash equivalents and restricted cash - end of period	53,190	153,925
Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets
Cash and cash equivalents	49,561	147,651
Restricted cash	3,629	6,274
Total cash, cash equivalents and restricted cash	53,190	153,925
Supplemental cash flow information:
Interest paid	33,835	32,782
Income taxes paid, net of refunds	15,200	26,011
Supplemental non-cash information:
Purchases of installation and service parts and property and equipment in accounts payable and accrued liabilities at period-end	11,741	8,570
Property and equipment acquired through vendor financing	$ 6,111	$ 0

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 49,561	$ 65,272
Restricted cash	3,629	3,046
Accounts receivable (net of allowance for credit losses of $20.0 million and $23.0 million at March 31, 2026 and December 31, 2025 respectively)	259,424	234,288
Unbilled receivables	97,279	56,100
Inventory	24,277	20,662
Prepaid expenses and other current assets	56,529	61,534
Total current assets	490,699	440,902
Installation and service parts, net	30,304	27,081
Property and equipment, net	249,079	208,703
Operating lease assets	46,178	36,359
Intangible assets, net	98,685	168,641
Goodwill	676,826	741,610
Other non-current assets	24,420	22,366
Total assets	1,616,191	1,645,662
Current liabilities:
Accounts payable	141,117	101,813
Deferred revenue	21,713	26,650
Accrued liabilities	60,345	69,851
Tax receivable agreement liability, current portion	5,257	5,257
Current portion of long-term debt	10,000	6,888
Total current liabilities	238,432	210,459
Long-term debt, net	1,024,657	1,021,157
Operating lease liabilities, net of current portion	46,664	31,338
Tax receivable agreement liability, net of current portion	33,418	38,418
Asset retirement obligation	18,898	17,789
Deferred tax liabilities, net	11,464	16,341
Other long-term liabilities	19,036	17,200
Total liabilities	1,392,569	1,352,702
Commitments and contingencies (Note 13)
Stockholders' equity
Preferred stock, $0.0001 par value, 1,000 shares authorized with no shares issued and outstanding at June 30, 2026 and December 31, 2025	0	0
Class A common stock, $0.0001 par value, 260,000 shares authorized with 151,906 and 153,557 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively	15	15
Additional paid-in capital	541,477	547,274
Accumulated deficit	(308,124)	(243,759)
Accumulated other comprehensive loss	(9,746)	(10,570)
Total stockholders' equity	223,622	292,960
Total liabilities and stockholders' equity	$ 1,616,191	$ 1,645,662