Taking immediate actions to reduce costs, adapt operations, and position the business for continued growth and future opportunities
Provides revised 2026 full-year outlook
MESA, Ariz., May 26, 2026 /PRNewswire/ — Verra Mobility Corporation (NASDAQ:VRRM), a leading provider of smart mobility technology solutions, announced today that it received a termination notice from Avis Budget Group regarding its contract with Verra Mobility, effective September 2026. Verra Mobility is taking steps to reduce costs and re-allocate certain resources associated with the customer to other customers.
“We were surprised and disappointed to receive this notice from Avis Budget Group given our longstanding partnership and the significant time invested by both parties in ongoing extension negotiations,” said David Roberts, President and CEO of Verra Mobility. “We are now moving decisively to reduce costs, adapt our operations, and position the business for continued growth and future opportunities.”
Mr. Roberts continued, “We are proud of the value our Commercial Services platform delivers by simplifying complex operational processes for fleet operators and enabling customers to focus on their core business. We remain confident in the strength of our platform, our ability to continue innovating, and our capacity to meet customers’ evolving needs while mitigating the impact of this development.”
Verra Mobility intends to protect its contractual rights, intellectual property, and business interests. Accordingly, the company is reviewing matters related to the parties’ negotiations, the handling of confidential information, and the parties’ respective rights and obligations under their agreements.
Revised 2026 Full-Year Guidance
Based on the Company’s year-to-date 2026 results and outlook for the remainder of the year including the aforementioned termination notice, Verra Mobility is revising its 2026 full-year financial outlook to the following:
- Total Revenue of $985 million to $995 million
- Adjusted EBITDA of $380 million to $385 million
- Adjusted EPS of $1.19 to $1.25
- Free Cash Flow of $140 million to $150 million
Underlying Assumptions for 2026 Full-Year Guidance
- Weighted average fully diluted share count expected to be approximately 155 million shares for the full-year 2026
- Effective tax rate (including state taxes) is expected to be 28.0% to 29.0%, with approximately $50 million in total cash taxes expected to be paid in 2026. The effective tax rate for non-GAAP adjustments is provided in the Reconciliation of Net Income to Adjusted Net Income and Calculation of Adjusted EPS in our most recent earnings press release dated May 6, 2026.
- Depreciation and amortization expense expected to be approximately $125 million for 2026
- Total interest expense, net expected to be approximately $62 million, of which approximately $60 million is expected to be net cash interest paid
- Change in working capital (change in operating assets and liabilities) is expected to be zero for 2026
- Capital expenditures (purchases of installation and service parts and property and equipment) are expected to be approximately $125 million for 2026 relating primarily to camera installations and MOSAIC implementation.
The Company currently expects the termination to reduce …