Verra Mobility (NASDAQ:VRRM) Sets New 1-Year Low on Disappointing Earnings

Shares of Verra Mobility Corp (NASDAQ:VRRM) reached a new 52-week low on Wednesday following a weaker than expected earnings announcement. The stock traded as low as $16.03 and last traded at $16.16, with a volume of 866580 shares changing hands. The stock had previously closed at $18.71.

The company reported $0.30 earnings per share for the quarter, missing the consensus estimate of $0.32 by ($0.02). Verra Mobility had a net margin of 5.42% and a return on equity of 60.72%. The firm had revenue of $257.86 million for the quarter, compared to the consensus estimate of $241.17 million. During the same period in the previous year, the company earned $0.33 earnings per share. Verra Mobility’s quarterly revenue was up 16.4% compared to the same quarter last year. Verra Mobility has set its FY 2026 guidance at 1.320-1.380 EPS.

Trending Headlines about Verra Mobility

Here are the key news stories impacting Verra Mobility this week:

• Positive Sentiment: Top‑line beat — Q4 revenue rose ~16% YoY to $257.9M, beating Street estimates and demonstrating continued demand growth. Article Title
• Positive Sentiment: New contract and strategic wins — announced a five‑year contract with the New York City Department of Transportation, which supports longer‑term revenue visibility. Article Title
• Positive Sentiment: Active capital allocation — repurchased $133.4M of common stock in Q4, which is shareholder‑friendly and can support EPS over time. Article Title
• Neutral Sentiment: Full‑year 2025 results — revenue for FY2025 was ~$979.1M and net income ~$136.6M; management provided slides and the earnings‑call transcript for deeper detail. Article Title Slides
• Negative Sentiment: EPS miss — reported $0.30 EPS vs. consensus ~$0.32 (and weaker GAAP/profit metrics highlighted on the call), which pressured the stock. Article Title
• Negative Sentiment: Margin compression & profitability hit — operating profit and net income declined materially YoY; management says MOSAIC investments and the NYC contract profile will reshape margin dynamics, implying near‑term margin pressure. Article Title
• Negative Sentiment: Higher capex and weaker cash flow metrics — capex rose and cash balances fell year‑over‑year while liabilities remain elevated, raising near‑term cash/coverage concerns for some investors. Article Title
• Negative Sentiment: Market reaction & guidance interpretation — several outlets framed the company’s FY‑26 outlook (revenue roughly ~$1.02B–$1.03B per management) and margin commentary as weaker than hoped, prompting sell‑side headlines and the stock decline. Article Title

Analyst Ratings Changes

Several equities analysts have recently weighed in on the stock. UBS Group increased their price objective on shares of Verra Mobility from $29.00 to $31.00 and gave the stock a “buy” rating in a research note on Thursday, October 30th. JPMorgan Chase & Co. initiated coverage on shares of Verra Mobility in a report on Monday, January 26th. They set a “neutral” rating and a $25.00 target price for the company. Weiss Ratings reiterated a “hold (c)” rating on shares of Verra Mobility in a research note on Monday, December 29th. Finally, Wall Street Zen upgraded Verra Mobility from a “buy” rating to a “strong-buy” rating in a research note on Saturday, December 20th. Two investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, the company currently has an average rating of “Hold” and an average price target of $27.25.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Allspring Global Investments Holdings LLC purchased a new position in shares of Verra Mobility in the 3rd quarter worth $1,602,000. SG Americas Securities LLC purchased a new stake in shares of Verra Mobility during the 3rd quarter valued at about $2,725,000. Future Fund LLC purchased a new stake in shares of Verra Mobility during the 2nd quarter valued at about $1,010,000. Y Intercept Hong Kong Ltd lifted its holdings in shares of Verra Mobility by 233.2% in the 3rd quarter. Y Intercept Hong Kong Ltd now owns 108,334 shares of the company’s stock valued at $2,676,000 after acquiring an additional 75,822 shares during the last quarter. Finally, American Century Companies Inc. grew its position in Verra Mobility by 11.2% in the second quarter. American Century Companies Inc. now owns 2,570,738 shares of the company’s stock worth $65,271,000 after acquiring an additional 259,330 shares in the last quarter.

Verra Mobility Stock Down 13.3%

The company has a quick ratio of 2.35, a current ratio of 2.45 and a debt-to-equity ratio of 2.55. The company has a 50 day simple moving average of $20.86 and a two-hundred day simple moving average of $22.62. The company has a market capitalization of $2.59 billion, a P/E ratio of 50.34, a PEG ratio of 2.93 and a beta of 0.59.

Verra Mobility Company Profile

Verra Mobility, traded on the Nasdaq under the ticker VRRM, is a leading provider of smart mobility solutions designed to improve safety, efficiency and compliance for transportation authorities and commercial fleets. The company develops and operates automated traffic enforcement systems, toll and violation management platforms, and connected-vehicle services. Through its technology offerings, Verra Mobility helps public agencies enhance road safety, reduce congestion and streamline revenue collection for tolling and parking.

Verra Mobility’s core products include red-light and speed-camera enforcement programs, license plate recognition systems, and cloud-based violation processing software.