Business
Verra Mobility Receives Termination of Agreement Notice From Avis Budget Group
Verra Mobility Receives Termination of Agreement Notice From Avis Budget
About this update from Verra Mobility Corporation
[{"type":"text","content":"Taking immediate actions to reduce costs, adapt operations, and position the business for continued growth and future opportunitiesProvides revised 2026 full-year outlookMESA, 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 millionAdjusted EBITDA of $380 million to $385 millionAdjusted EPS of $1.19 to $1.25Free Cash Flow of $140 million to $150 millionUnderlying Assumptions for 2026 Full-Year GuidanceWeighted average fully diluted share count expected to be approximately 155 million shares for the full-year 2026Effective tax rate (including state taxes) is expected to be 28.0% to 29.0%, with...