Key Highlights

  • Total Revenue was USD 258.9 million versus USD 261.9 million, with service revenue down 1.4% to USD 239.9 million.
  • Government Solutions service revenue rose 13.1% to USD 122.5 million, while Commercial Services fell 14.5% to USD 100.3 million.
  • Net income was USD 40.4 million, or USD 0.27 per diluted share, versus USD 46.8 million, or USD 0.29.
  • The company exercised its option to terminate a customer contract effective January 30, 2027 after volumes fell sharply.

Revenue and Profit Dip

Verra Mobility Corporation (NASDAQ:VRRM) reported third-quarter 2026 total revenue of USD 258,875,000 versus USD 261,938,000. Service revenue decreased USD 3.3 million, or 1.4%, to USD 239.9 million, equal to 92.7% of revenue, while product sales rose to USD 19.0 million from USD 18.7 million.

Net income was USD 40.4 million, or USD 0.27 per basic and diluted share, versus USD 46.8 million, or USD 0.29. Income tax provision was USD 14.9 million versus USD 17.8 million, and income before income tax was USD 55.3 million versus USD 64.7 million. Total revenue declined about 1.2% in the quarter, while nine-month revenue rose about 3.4%.

Segment Mix

Commercial Services service revenue decreased USD 17.0 million, or 14.5%, to USD 100.3 million from USD 117.3 million, and was 38.8% of revenue versus 44.8%. Government Solutions service revenue increased USD 14.2 million, or 13.1%, to USD 122.5 million from USD 108.3 million, and was 47.3% of revenue versus 41.3%. Parking Solutions service revenue decreased to USD 17.1 million from USD 17.6 million.

During the quarter a customer significantly reduced its fleet Volume under its contract, and on October 2, 2026 the company exercised its option to terminate the contract effective January 30, 2027. TSA passenger volume in the quarter was about 3% lower than a year earlier.

Costs and Nine-Month Results

Cost of service revenue, excluding Depreciation and amortization, was USD 14.9 million versus USD 9.2 million, and cost of product sales was USD 17.6 million versus USD 12.8 million. Operating expenses were USD 90.4 million versus USD 88.0 million, selling, general and administrative expenses fell to USD 43.4 million from USD 47.8 million, and depreciation, amortization and disposal losses were USD 26.9 million versus USD 29.3 million.

For nine months, revenue was USD 746.0 million versus USD 721.2 million, and Net Income was USD 19.0 million, or USD 0.12 per diluted share, versus USD 117.8 million, or USD 0.73. The nine-month period included a Goodwill Impairment of USD 64.0 million and an impairment of intangible assets of USD 40.4 million, and nine-month service revenue was USD 700.0 million versus USD 678.6 million, with nine-month product sales of USD 46.0 million versus USD 42.6 million. Nine-month income before income tax was USD 53.5 million versus USD 162.1 million, and the income tax provision was USD 34.6 million versus USD 44.3 million. Nine-month cost of service revenue was USD 36.5 million versus USD 18.7 million and nine-month operating expenses were USD 266.9 million versus USD 243.1 million, while SG&A fell to USD 128.3 million from USD 147.7 million.

Contract and Volume Indicators

Items to watch include the effect of the terminated contract on Commercial Services revenue, Government Solutions growth, travel volumes and cost trends in service revenue.