Cash conversion efficiency is inconsistent, with free cash flow margins fluctuating from a high of 37.7% in 2024Q3 to a low of 2.2% in 2025Q4, reflecting the impact of rising capital expenditures which hit 14.0% of revenue in 2026Q1.
| Cash from Operations | 232.91M | 255.8M | 223.64M | 206.1M | 218.34M | 193.17M | 46.91M | 133.8M | 46.02M | 2.43M | 43.84M |
| Operating CF Margin % | - | 26.13% | 25.44% | 25.22% | 29.44% | 35.08% | 11.92% | 29.82% | 12.43% | -311.28% | 19% |
| Operating CF Growth % | 22.34% | 14.38% | 8.51% | -5.6% | 13.03% | 311.8% | -64.94% | 190.77% | 1794.61% | -94.46% | - |
| Net Income | 131.04M | 136.63M | 31.45M | 57.02M | 92.47M | 41.45M | -4.58M | 17.08M | -58.39M | 1.42M | 29M |
| Depreciation & Amortization | 115.81M | 117.53M | 108.53M | 113.07M | 138.68M | 116.75M | 122.01M | 122.21M | 103.35M | 45.73M | 33.81M |
| Stock-Based Compensation | 13.76M | 25.18M | 22.96M | 17.48M | 16.66M | 13.78M | 12.59M | 10.01M | 2.27M | 14M | -618.91K |
| Deferred Taxes | 8.2M | 19.35M | -10.01M | -30.11M | -18.07M | -11.66M | 0 | 0 | -24.43M | 4.48K | -3.2M |
| Other Non-Cash Items | 16.37M | 28.23M | 118.56M | 46.55M | 4.55M | 28M | 1.97M | 12.79M | 43.32M | -14M | 10.03M |
| Working Capital Changes | -52.27M | -71.11M | -47.84M | 2.11M | -15.96M | 4.84M | -85.08M | -28.29M | -20.09M | 1M | -25.17M |
| Change in Receivables | -64.4M | -49.65M | -34.65M | -48.71M | -17.68M | 7.19M | -84.63M | -19.09M | -23.72M | -9.46M | -17.41M |
| Change in Inventory | -5.03M | 3.4M | 1.92M | 1.15M | -10.31M | 2.8M | 0 | 0 | -7.12B | 0 | 0 |
| Change in Payables | -5.23M | -1.77M | -16.43M | 50.51M | 6.51M | 0 | 0 | 0 | 7.13B | 17.57M | 0 |
| Cash from Investing | -128.66M | -118.79M | -69.72M | -58.29M | -48.59M | -475.97M | -24.15M | -54.97M | -562.86M | -402.74M | -35.05M |
| Capital Expenditures | -129.05M | -119.09M | -70.86M | -56.98M | -48.19M | -25M | -24.26M | -29.68M | -26.58M | -24.83M | -14.83M |
| CapEx % of Revenue | 13.18% | 12.16% | 8.06% | 6.97% | 6.5% | 4.54% | 6.16% | 6.62% | 7.18% | -3181.71% | 6.42% |
| Acquisitions | 228K | 0 | 0 | 0 | -647K | -451.24M | 0 | -25.52M | -536.7M | -537.5M | -21.23M |
| Investments | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 165K | 305K | 1.14M | -1.3M | 241K | 265K | 107K | 231K | 418.24K | -400M | 1.01M |
| Cash from Financing | -170.05M | -150.97M | -211.43M | -117.79M | -164.93M | 268.72M | -34M | -14.52M | 574.27M | 401.13M | -7.04M |
| Debt Issued (Net) | 19.77M | 0 | -9.02M | -181.52M | -34.02M | 385.97M | -28.78M | -9.1M | 405.01M | -150K | 40.4M |
| Equity Issued (Net) | -49.02M | 0 | -199.98M | -100M | -131.59M | -100M | -4.15M | -4.99M | 948.53M | 400M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -779.27M | 0 | -47.11M |
| Share Repurchases | -50.24M | 0 | -199.98M | -100M | -125.07M | -100M | -4.15M | -4.99M | -779.27M | 0 | 0 |
| Other Financing | -140.8M | -150.97M | -2.43M | 163.73M | 682K | -17.25M | -1.08M | -426K | 0 | 1.28M | -332.5K |
| Net Change in Cash | -64.42M | -12.84M | -58.57M | 30.61M | 4.68M | -16.46M | -11.54M | 65.35M | 56.57M | 823.02K | 1.75M |
| Free Cash Flow | 103.86M | 136.71M | 152.79M | 148.62M | 170.15M | 168.17M | 22.65M | 104.12M | 19.44M | -22.4M | 29.02M |
| FCF Margin % | 10.6% | 13.96% | 17.38% | 18.18% | 22.94% | 30.54% | 5.75% | 23.2% | 5.25% | 2870.44% | 12.57% |
| FCF Growth % | -40.42% | -10.52% | 2.81% | -12.66% | 1.18% | 642.52% | -78.25% | 435.57% | 186.8% | -177.19% | - |
| FCF per Share | 0.68 | 0.85 | 0.91 | 0.93 | 1.07 | 1.03 | 0.14 | 0.65 | 0.22 | -0.47 | 0.73 |
| FCF Conversion (FCF/Net Income) | 0.79x | 1.87x | 7.11x | 3.61x | 2.36x | 4.66x | -10.25x | 7.84x | -0.79x | 1.71x | 1.51x |
| Interest Paid | 21.26M | 0 | 76.2M | 86.11M | 63.66M | 35.79M | 35.82M | 55.2M | 60.44M | 0 | 2.11M |
| Taxes Paid | 2.5M | 0 | 50.2M | 54M | 47.62M | 35.77M | 0 | 0 | 762K | 0 | 27.01M |
Legislative and regulatory contract volatility
Based on reported financial statements, Verra Mobility consistently generates operating cash flow significantly exceeding net income, with OCF/NI ratios frequently surpassing 1.5x, which suggests that non-cash depreciation charges and working capital adjustments play a disproportionately large role in the company's reported cash generation profile.
The persistent gap between net income and operating cash flow indicates that the company's accounting earnings are heavily influenced by non-cash items, primarily depreciation of installed camera systems. Investors should monitor whether this divergence reflects genuine operational efficiency or an over-reliance on aggressive capitalization of hardware deployment costs.
As indicated by quarterly data, free cash flow margins have fluctuated wildly from a high of 37.7% in 2024Q3 to a low of 2.2% in 2025Q4, suggesting that the company's ability to convert earnings into discretionary cash is highly sensitive to timing differences in project-based capital expenditures.
The erratic FCF trajectory implies that the business model is not yet generating the smooth, predictable cash flows typically associated with pure-play software entities. This volatility warrants further investigation into whether the company's capital expenditure cycles are becoming increasingly unpredictable as it expands into new municipal markets.
According to recent SEC filings, Verra Mobility's capital expenditure as a percentage of revenue has trended upward, reaching 14.0% in 2026Q1, which suggests that the company must continuously reinvest in hardware infrastructure to maintain its competitive position within the government and parking solutions segments.
The rising capital intensity indicates that the company's growth is not purely software-driven but requires significant physical asset deployment. This ongoing requirement for hardware investment may limit the company's ability to expand free cash flow margins in the near term.
Based on the provided cash flow data, working capital changes have been consistently negative in seven of the last ten quarters, suggesting that the company is experiencing persistent cash outflows related to the timing of collections or inventory management within its government and commercial service segments.
These recurring working capital drains appear to be a structural feature of the company's business model, potentially linked to the long payment cycles inherent in municipal contracts. Investors should monitor whether these outflows are a temporary byproduct of expansion or a permanent drag on operational liquidity.
As reported in financial disclosures, Verra Mobility has prioritized significant share repurchases, including a $148.5 million outflow in 2024Q4, which suggests that management is actively utilizing its balance sheet to support equity value despite the underlying volatility in quarterly free cash flow generation.
The decision to allocate substantial capital toward buybacks while simultaneously managing high capital expenditure requirements may indicate management's confidence in long-term cash flow stability. However, this strategy warrants scrutiny if future free cash flow fails to cover these outflows without increasing reliance on external financing.
Quick answers to the most common questions about buying VRRM stock.
Verra Mobility Corporation (VRRM) generated $255.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Verra Mobility Corporation (VRRM) generated $136.7M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Verra Mobility Corporation (VRRM) spent $119.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.