Wed, May 7, 8:49 PM (16 days ago)
**Verra Mobility Corporation (VRRM) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $223.3 million, up 6.4% YoY, driven by increased travel volume and growth in bus lane enforcement programs. - **Net Income:** $32.3 million, up 10.9% YoY, with a net margin of 14.5%. - **Operating Income:** $57.4 million, up 5.6% YoY, with an operating margin of 25.7%. - **Earnings per Share (EPS):** $0.20, up from $0.18 YoY. - **Cash Flow from Operations:** $63.0 million, up 83.6% YoY. **Profit Margins:** - **Gross Margin:** Not explicitly stated, but implied by operating income and revenue. - **Operating Margin:** 25.7%. - **Net Margin:** 14.5%. **Cash Flow:** - **Operating Cash Flow:** $63.0 million, up significantly from $34.3 million YoY. - **Investing Cash Flow:** -$21.2 million, primarily due to capital expenditures. - **Financing Cash Flow:** -$8.7 million, mainly due to share repurchases and debt repayments. **Earnings Changes:** - **Revenue Growth:** 6.4% YoY, driven by service revenue and product sales. - **Operating Income Growth:** 5.6% YoY. - **Net Income Growth:** 10.9% YoY. **Quarterly Performance Discussion:** - **Revenue Growth:** Driven by increased travel volume and growth in bus lane enforcement programs. - **Operating Expenses:** Increased by 4.4% YoY, primarily due to higher subcontractor costs and wages. - **Interest Expense:** Decreased by 15.3% YoY due to debt refinancing and lower interest rates. - **Share Repurchases:** Completed an accelerated share repurchase (ASR) program, retiring 4.5 million shares. **Trends and Uncertainties:** - **Customer Concentration:** High dependence on a few large customers, particularly NYCDOT. - **Regulatory Risks:** Dependence on enabling legislation for photo enforcement programs. - **Economic Factors:** Sensitivity to macroeconomic conditions and travel demand. **Future Operations Impact:** - **NYCDOT Contract:** Potential for a new five-year contract, but terms and pricing are uncertain. - **Share Repurchases:** Limited availability under the current authorization. - **Debt Management:** Continued focus on debt refinancing and repayment. **Ticker:** VRRM **Full Name:** Verra Mobility Corporation **Note:** The company's performance is subject to various risks, including regulatory changes, economic conditions, and customer concentration. The outlook remains positive, with a focus on organic growth and strategic acquisitions.