Free cash flow generation has been volatile, with margins ranging from 2.2% to 37.7% over the past ten quarters, while capital expenditures as a percentage of revenue have more than doubled to 20.9% in 2026Q2, signaling a shift towards a more capital-intensive investment phase.
Verra Mobility Corporation (VRRM) cash flow statement — 10-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 |
|---|
| Cash from Operations | 255.01M | 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 % | -36.51% | 14.38% | 8.51% | -5.6% | 13.03% | 311.8% | -64.94% | 190.77% | 1794.61% | -94.46% | - |
| Net Income | 44.28M | 136.63M | 31.45M | 57.02M | 92.47M | 41.45M | -4.58M | 17.08M | -58.39M | 1.42M | 29M |
| Depreciation & Amortization | 144.41M | 117.53M | 108.53M | 113.07M | 138.68M | 116.75M | 122.01M | 122.21M | 103.35M | 45.73M | 33.81M |
| Stock-Based Compensation | 13.63M | 25.18M | 22.96M | 17.48M | 16.66M | 13.78M | 12.59M | 10.01M | 2.27M | 14M | -618.91K |
| Deferred Taxes | 5.93M | 19.35M | -10.01M | -30.11M | -18.07M | -11.66M | 0 | 0 | -24.43M | 4.48K | -3.2M |
| Other Non-Cash Items | 100.45M | 28.23M | 118.56M | 46.55M | 4.55M | 28M | 1.97M | 12.79M | 43.32M | -14M | 10.03M |
| Working Capital Changes | -80.44M | -71.11M | -47.84M | 2.11M | -15.96M | 4.84M | -85.08M | -28.29M | -20.09M | 1M | -25.17M |
| Change in Receivables | -82.46M | -49.65M | -34.65M | -48.71M | -17.68M | 7.19M | -84.63M | -19.09M | -23.72M | -9.46M | -17.41M |
| Change in Inventory | -14.72M | 3.4M | 1.92M | 1.15M | -10.31M | 2.8M | 0 | 0 | -7.12B | 0 | 0 |
| Change in Payables | 7.71M | -1.77M | -16.43M | 50.51M | 6.51M | 0 | 0 | 0 | 7.13B | 17.57M | 0 |
| Cash from Investing | -148.69M | -118.79M | -69.72M | -58.29M | -48.59M | -475.97M | -24.15M | -54.97M | -562.86M | -402.74M | -35.05M |
| Capital Expenditures | -149.22M | -119.09M | -70.86M | -56.98M | -48.19M | -25M | -24.26M | -29.68M | -26.58M | -24.83M | -14.83M |
| CapEx % of Revenue | 14.82% | 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 | 301K | 305K | 1.14M | -1.3M | 241K | 265K | 107K | 231K | 418.24K | -400M | 1.01M |
| Cash from Financing | -225.85M | -150.97M | -211.43M | -117.79M | -164.93M | 268.72M | -34M | -14.52M | 574.27M | 401.13M | -7.04M |
| Debt Issued (Net) | -12.93M | -8.49M | -9.02M | -181.52M | -34.02M | 385.97M | -28.78M | -9.1M | 405.01M | -150K | 40.4M |
| Equity Issued (Net) | -234.54M | -132.36M | -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 | -235.42M | -133.45M | -199.98M | -100M | -125.07M | -100M | -4.15M | -4.99M | -779.27M | 0 | 0 |
| Other Financing | 21.62M | -10.12M | -2.43M | 163.73M | 682K | -17.25M | -1.08M | -426K | 0 | 1.28M | -332.5K |
| Net Change in Cash | -118.95M | -12.84M | -58.57M | 30.61M | 4.68M | -16.46M | -11.54M | 65.35M | 56.57M | 823.02K | 1.75M |
| Free Cash Flow | 105.79M | 136.71M | 152.79M | 148.62M | 170.15M | 168.17M | 22.65M | 104.12M | 19.44M | -22.4M | 29.02M |
| FCF Margin % | 10.51% | 13.96% | 17.38% | 18.18% | 22.94% | 30.54% | 5.75% | 23.2% | 5.25% | 2870.44% | 12.57% |
| FCF Growth % | -43.95% | -10.52% | 2.81% | -12.66% | 1.18% | 642.52% | -78.25% | 435.57% | 186.8% | -177.19% | - |
| FCF per Share | 0.70 | 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) | 2.39x | 1.87x | 7.11x | 3.61x | 2.36x | 4.66x | -10.25x | 7.84x | -0.79x | 1.71x | 1.51x |
| Interest Paid | 0 | 0 | 76.2M | 86.11M | 63.66M | 35.79M | 35.82M | 55.2M | 60.44M | 0 | 2.11M |
| Taxes Paid | 0 | 0 | 50.2M | 54M | 47.62M | 35.77M | 0 | 0 | 762K | 0 | 27.01M |
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.
In 2025, Verra Mobility Corporation (VRRM) spent $133.4M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Earnings quality obscured by non-cash charges
Metrics are mathematically derived from official filings.
Earnings Quality Masked by Non-Cash Charges
The significant divergence between net income and operating cash flow, with OCF/NI ratios swinging from -2.02 to 3.13, suggests that reported earnings are heavily influenced by non-cash items, making cash flow a more reliable indicator of underlying performance.
The volatile relationship between net income and operating cash flow, particularly the negative OCF/NI ratio in 2026Q2 and 2024Q4, indicates that large non-cash charges, likely related to the company's high depreciation and amortization or other accruals, are distorting the bottom line. This pattern implies that investors should focus on operating cash flow as the primary measure of Verra Mobility's cash-generating ability, as it appears to strip out significant non-operational volatility.
FCF Volatility Amidst Capex Ramp
Free cash flow margins have been highly volatile, ranging from 2.2% to 37.7% over the past ten quarters, indicating that the company's cash generation is not yet stable and is sensitive to the timing of capital expenditures.
The erratic FCF margin trajectory, with a recent dip to 4.1% in 2026Q1, suggests that the company's cash generation is not yet predictable and is heavily influenced by the timing and scale of its capital investments. This volatility warrants monitoring, as it contrasts with the more stable operating cash flow trend and indicates that the business has not yet achieved a steady-state level of free cash flow generation.
Rising Capital Intensity Signals Investment Phase
Capital expenditures as a percentage of revenue have more than doubled from 6.3% in 2024Q2 to 20.9% in 2026Q2, indicating a significant shift towards a more capital-intensive investment phase that is consuming a growing share of operating cash flow.
The sharp increase in CapEx intensity suggests the company is in a period of heavy investment, likely to expand its tolling infrastructure or technology platform. This rising capital burden is the primary driver behind the recent compression in free cash flow margins, and investors should monitor whether these investments translate into the revenue growth and margin expansion implied by the prior income statement analysis.
Persistent Working Capital Drag on Cash Flow
Working capital has been a consistent use of cash over the past ten quarters, with cumulative outflows exceeding $140 million, suggesting that the company's growth is consuming cash through inventory or receivables build-up.
The persistent negative working capital changes, particularly the large outflows in 2024Q1 and 2024Q2, indicate that the company's operational growth is not yet translating into efficient cash conversion. This pattern suggests that management may need to improve collections or inventory management to unlock the full cash flow potential of its high-margin business model.
Aggressive Share Repurchases Offset by Capex
The company has deployed over $440 million towards share repurchases over the past ten quarters, a significant capital return that is largely funded by operating cash flow but is being increasingly offset by rising capital expenditures.
The substantial share repurchase activity, particularly the $133.6 million in 2025Q4 and $51.6 million in 2026Q2, indicates a management commitment to returning capital to shareholders. However, this strategy is becoming more challenging to sustain as capital expenditures consume a larger portion of operating cash flow, creating a potential tension between shareholder returns and the need for growth investment.
Cash Flow Obscured by Non-Cash Adjustments
The significant gap between net income and operating cash flow, particularly in quarters with large net losses, suggests that non-cash charges like stock-based compensation and depreciation are materially distorting the reported earnings picture.
The cash flow statement reveals that the company's reported net income is heavily influenced by non-cash items, with depreciation and amortization consistently representing a major add-back to operating cash flow. This pattern implies that the underlying cash generation of the business may be stronger than the volatile net income suggests, but it also means that investors must carefully adjust for these non-cash items to assess true operational performance.