Verra Mobility (NASDAQ: VRRM) moves to end Avis contract and holds its 2026 outlook

Posted by Wayne Rhoads on Oct 31st, 2026

What happened

Verra Mobility Corporation (NASDAQ: VRRM) is ending its Avis Budget Group contract on Jan. 30, 2027, after Avis cut fleet volumes.

The company used its termination right on Oct. 2. In July it had signed a seven-year extension with Avis on materially less favorable terms, the earnings release says.

Third-quarter revenue was $258.9 million, down 1% from $261.9 million a year earlier. Net income was $40.4 million, or $0.27 per diluted share, against $0.29 a year earlier. The company kept its 2026 guidance, including revenue of $945 million to $965 million.

Jon Newhard becomes CEO on Nov. 1. CFO Craig Conti steps down Nov. 4, and Matthew Kvarda becomes interim CFO on Nov. 5.

Key numbers

Metric	Latest	Change	Source
Total revenue	$258.9 million	from $261.9 million, -1%	SEC 8-K Exhibit 99.1
Net income	$40.4 million	from $46.8 million, -13.8%	Calculated from SEC 8-K
Diluted EPS	$0.27	from $0.29, -6.9%	Calculated from SEC 8-K
Net cash provided by operating activities	$114.5 million	from $77.7 million, +$36.8 million	SEC 8-K Exhibit 99.1
Adjusted EBITDA	$103.9 million	from $113.3 million	SEC 8-K Exhibit 99.1
Free Cash Flow	$89.4 million	from $49.0 million	SEC 8-K Exhibit 99.1

Why it matters

Cash flow looks stronger than earnings. Operating cash flow rose $36.8 million to $114.5 million from $77.7 million a year earlier. The company says most of the working-capital gain came from a decrease in accounts receivable.

By OptimistFi's calculation, net income fell 13.8%, far faster than revenue, and diluted EPS fell 6.9%. The diluted share count dropped to 152.1 million from 161.9 million, which softened the per-share decline. The cash flow statement shows $51.6 million of share repurchases in the nine months.

Commercial Services drove the weakness. Segment revenue fell 14% to $100.3 million as rental car tolling revenue dropped $16.1 million, partly because of extensions with two significant customers on materially less favorable terms. Government Solutions revenue rose 12% to $136.8 million.

OptimistFi has argued that value depends on keeping large institutional customers. The Avis exit and weaker renewal terms cut against that case, while government growth supports it. In the nine months, the company also booked a $64.0 million goodwill impairment and a separate intangibles impairment in Parking Solutions.

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What's next

The Enterprise Mobility contract expires Sept. 30, 2027, and Verra Mobility is following Enterprise's procurement process.

Fourth-quarter and full-year 2026 results will show whether guidance holds and whether cash flow lasts before the Avis exit. The company expects to resume its quarterly earnings calls then.