Slide 1: Verra Mobility Q1 2025 Earnings Presentation
Earnings Overview Verra Mobility Q1 2025 Earnings Presentation For the Quarter Ended March 31, 2025
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements which address our expected future business and financial performance, and may contain words such as “goal,” “target,” “future,” “estimate,” “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “project,” “may,”
Slide 3: Q1 2025 Financial Highlights Executive Summary
Q1 2025 Financial Highlights Executive Summary Total Revenue • Solid consolidated first quarter top-line performance - Commercial Services: 6% Y-o-Y revenue growth driven by increased travel volume, $223 million; 6% YoY growth product adoption and tolling activity - Government Solutions: 4% Y-o-Y se
Slide 4: Strong top-line growth driven by travel & speed enforcement trends
Strong top-line growth driven by travel & speed enforcement trends Consolidated – Q1 Results Total Revenue ($M) Adjusted EBITDA ($M)* Service Product Total $223 $210 +6% $11 $7 Total Service $212 $93 +3% $95 $203 +5% Q1 2024 Q1 2025 Q1 2024 Q1 2025 Adjusted EPS* Free Cash Flow ($M)*,1 $0.30 $42 $0.2
Slide 5: Core Businesses Drive Strong Growth and FCF Conversion
Core Businesses Drive Strong Growth and FCF Conversion Total Revenue Breakdown ($M) Adjusted EBITDA & Margins* ($M) Service Total Revenue Product CAGR 16% Adj EBITDA Service Revenue CAGR 13% CAGR 18% $893 46% 45% $879 $817 $38 $42 45% $742 $34 46% $46 $551 49% $58 $402 $404 $784 $842 $851 $372 $695
Slide 6: Increased travel volume and secular trends driving strong performance
Increased travel volume and secular trends driving strong performance Commercial Services – Q1 Results Total Revenue & YoY Growth Segment Profit & YoY Growth Segment Profit $61 +4% $63 Srvc Rev $101 $96 +6% Q1 2024 Q1 2025 Q1 2024 Q1 2025 Q1 – Key Highlights • First quarter Revenue up 6% over Q1 202
Slide 7: Revenue fueled by core market acceleration
Revenue fueled by core market acceleration Government Services – Q1 Results Total Revenue & YoY Growth Segment Profit & YoY Growth Service Product Revenue $102 $94 Total Rev $4 +8% $8 Srvc Rev Segment Profit $90 $94 $29 1% $29 +4% Q1 2024 Q1 2025 Q1 2024 Q1 2025 Q1 – Key Highlights • Service Revenue
Slide 8: Strong Recurring SaaS Revenue offset by declining product sales and professional services
Strong Recurring SaaS Revenue offset by declining product sales and professional services T2 Systems – Q1 Results Total Revenue & YoY Change Segment Profit & YoY Change SaaS & Service Revenue Product Revenue Total Rev $20 2% $20 $3 $4 Srvc Rev $17 --% $17 Segment Profit $3 5% $3 Q1 2024 Q1 2025 Q1 2
Slide 9: Strong, Flexible Balance Sheet + Robust Cash Flow
2 0 2 1 I N V E S T O R D A Y – © B U I L D E R9 S F I R S T S O U R C E Strong, Flexible Balance Sheet + Robust Cash Flow Capital Summary & Financial Highlights ($M) Net Leverage* Improvement ($M) March 31, 2025 $903 $928 $968 $935 $844 Cash & Cash Equivalents $108 2.4x 2.4x 2.2x 2.4x 2.3x Debt $1,
Slide 10: Reaffirming 2025 Financial Outlook
Reaffirming 2025 Financial Outlook 2025 Guidance In millions, except per Expect Total Revenue growth of 6% at share data Commentary the mid-point of guidance CS … HSD growth CS driven by expected increased 1 Total Revenue $925 - $935 GS … MSD to HSD growth adoption and tolling activity; T2 … Flat wi
Slide 11: Additional 2025 Guidance Assumptions
Additional 2025 Guidance Assumptions 2025 fully diluted share count expected to be approximately 163 million shares (weighted average for the year) Effective tax rate expected to be 28.5% to 29.5% including State taxes; approximately $65 million expected in 2025 total cash taxes paid 2025 depreciati
Slide 12: Appendix
Appendix 12
Slide 13: Key Definitions
KEY DEFINITIONS EBITDA and Adjusted EBITDA We define "EBITDA" as net income adjusted to exclude interest expense, net, income taxes, depreciation and amortization. "Adjusted EBITDA" further excludes certain non-cash expenses and non-recurring items. Adjusted EBITDA Margin We define “Adjusted EBITDA
Slide 14: Key Definitions, Continued
KEY DEFINITIONS, Continued Net Debt We define “Net Debt” as total long-term debt (including current portion of long-term debt) excluding original issue discounts and unamortized deferred financing costs, less cash and cash equivalents. Net Leverage We define “Net Leverage” as Net Debt divided by the
Slide 15: Verra Mobility Quarterly Results
Verra Mobility Quarterly Results 2022 – Q1 2025 Full Year Full Year Unaudited ($ in millions) 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Full Year 2024 Q1 2025 Service revenue $695.2 $184.7 $196.0 $201.0 $201.8 $783.6 $202.7 $212.0 $217.3 $209.7 $841.7 $211.9 Product s
Slide 16: Verra Mobility Quarterly Results: Segment Results of Operations
Verra Mobility Quarterly Results Segment Results of Operations Commercial Services Unaudited ($ in millions) Full Year Full Year Full Year Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 2022 2023 2024 Total Revenue Commercial Services $326.0 $85.6 $94.5 $98.1 $94.5 $372.8 $9
Slide 17: Verra Mobility Adj. Net Income and Adjusted EPS Reconciliations
Verra Mobility Adj. Net Income and Adjusted EPS Reconciliations (in $MM, except per share data) Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Net Income $29.1 $34.2 $34.7 ($66.7) $32.3 Amortization of intangibles 16.7 16.7 16.8 16.7 16.7 Transaction and other related expenses 1.5 0.1 2.5 1.2 - Transformat
Slide 18: Verra Mobility Free Cash Flow Reconciliation, incl. % of Adj. EBITDA
Verra Mobility Free Cash Flow Reconciliation, incl. % of Adj. EBITDA Q1 2025 ($MM) 2021 2022 2023 2024 TTM Net cash provided by operating $ 193 $ 218 $206 $224 $252 activities1 Purchases of installation and service parts and property and equipment (25) (48) (57) (71) (78) Free Cash Flow 1 $ 168 $ 17
Slide 19: Verra Mobility Net Debt and Net Leverage Reconciliation
Verra Mobility Net Debt and Net Leverage Reconciliation Q1 Q2 Q3 Q4 Q1 ($MM) 2024 2024 2024 2024 2025 2021 Term Loan, due 2028 $ 702 $ 700 $700 $696 $693 Plus: Senior Notes, due 2029 $ 350 $ 350 $350 $350 $350 Long-term Debt, excluding original issue discounts and unamortized $1,052 $1,050 $1050 $1,
Slide 20: Thank You
Thank You http://ir.verramobility.com/