Revenue growth accelerated to 11.7% year-over-year in 2026Q2, while gross margins have expanded dramatically to a sustained level above 94% in recent quarters, indicating a fundamental shift in the company's cost structure and pricing power.
Verra Mobility Corporation (VRRM) annual income statement — 10-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 |
|---|
| Sales/Revenue | 1.01B | 979.08M | 879.21M | 817.31M | 741.6M | 550.59M | 393.59M | 448.74M | 370.15M | -780.28K | 230.75M |
| Revenue Growth % | 11.1% | 11.36% | 7.57% | 10.21% | 34.69% | 39.89% | -12.29% | 21.23% | 47537.55% | -100.34% | - |
| Cost of Goods Sold | 39.56M | 30.32M | 18.99M | 43.46M | 47.26M | 35.15M | 33.54M | 145.12M | 9.23M | 51.58M | 95.91M |
| COGS % of Revenue | - | 3.1% | 2.16% | 5.32% | 6.37% | 6.38% | 8.52% | 32.34% | 2.49% | -6610.97% | 41.56% |
| Gross Profit | 967.39M | 948.76M | 860.22M | 773.85M | 694.34M | 515.44M | 360.05M | 303.62M | 360.91M | -52.36M | 134.84M |
| Gross Margin % | 96.07% | 96.9% | 97.84% | 94.68% | 93.63% | 93.62% | 91.48% | 67.66% | 97.51% | 6710.97% | 58.44% |
| Gross Profit Growth % | - | 10.29% | 11.16% | 11.45% | 34.71% | 43.16% | 18.59% | -15.87% | 789.23% | -138.83% | - |
| Operating Expenses | 830.54M | 710.35M | 724.2M | 585.03M | 529.63M | 403.58M | 322.24M | 207.16M | 348.3M | 780.28K | 170.71M |
| OpEx % of Revenue | - | 72.55% | 82.37% | 71.58% | 71.42% | 73.3% | 81.87% | 46.17% | 94.1% | -100% | 73.98% |
| Selling, General & Admin | 200.15M | 215.27M | 195.05M | 166.65M | 163.13M | 123.41M | 89.66M | 85.49M | 136.07M | 580.59K | 53.03M |
| SG&A % of Revenue | - | 21.99% | 22.19% | 20.39% | 22% | 22.41% | 22.78% | 19.05% | 36.76% | -74.41% | 22.98% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3.8M | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | 0.85% | - | - | - |
| Other Operating Expenses | 4M | 495.07M | 529.14M | 418.38M | 366.5M | 280.17M | 232.57M | 117.87M | 8.79M | 199.69K | 2.47M |
| Operating Income | 136.86M | 238.41M | 136.02M | 188.81M | 164.71M | 111.87M | 37.82M | 96.45M | 12.61M | -780.28K | 47.89M |
| Operating Margin % | 13.59% | 24.35% | 15.47% | 23.1% | 22.21% | 20.32% | 9.61% | 21.49% | 3.41% | 100% | 20.76% |
| Operating Income Growth % | - | 75.28% | -27.96% | 14.64% | 47.23% | 195.82% | -60.79% | 665.14% | 1715.6% | -101.63% | - |
| EBITDA | 254.34M | 354.73M | 245.09M | 301.88M | 304.88M | 228.67M | 154.39M | 208.22M | 115.95M | 44.94M | 81.81M |
| EBITDA Margin % | 25.26% | 36.23% | 27.88% | 36.94% | 41.11% | 41.53% | 39.22% | 46.4% | 31.33% | -5760.08% | 35.45% |
| EBITDA Growth % | 0.68% | 44.73% | -18.81% | -0.98% | 33.33% | 48.11% | -25.85% | 79.57% | 157.99% | -45.06% | - |
| D&A (Non-Cash Add-back) | 117.49M | 116.31M | 109.07M | 113.07M | 140.17M | 116.8M | 116.57M | 111.77M | 103.35M | 45.73M | 33.92M |
| EBIT | 158.11M | 259.6M | 153.01M | 173.7M | 196.48M | 112.84M | 41.72M | 102.35M | 1.82M | 11.79M | 50.36M |
| Net Interest Income | -62.3M | -64.62M | -73.9M | -86.7M | -69.37M | -44.94M | -40.87M | -60.73M | -69.55M | 0 | -2.71M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3.02M | 0 |
| Interest Expense | 62.3M | 64.62M | 73.9M | 86.7M | 69.37M | 44.94M | 40.87M | 60.73M | 69.55M | 3.02M | 2.71M |
| Other Income/Expense | -41.05M | -43.43M | -56.91M | -101.82M | -37.6M | -43.97M | -36.96M | -65.8M | -90.48M | 3.02M | -235.72K |
| Pretax Income | 95.81M | 194.98M | 79.11M | 87M | 127.11M | 67.9M | 853K | 30.66M | -74.64M | 2.24M | 47.66M |
| Pretax Margin % | 9.51% | 19.91% | 9% | 10.64% | 17.14% | 12.33% | 0.22% | 6.83% | -20.16% | -286.49% | 20.65% |
| Income Tax | 51.52M | 58.35M | 47.66M | 29.98M | 34.63M | 26.45M | 5.43M | 13.58M | -16.24M | 810.93K | 18.66M |
| Effective Tax Rate % | 53.78% | 29.93% | 60.25% | 34.46% | 27.25% | 38.96% | 636.69% | 44.3% | 21.76% | 36.28% | 39.16% |
| Net Income | 44.28M | 136.63M | 31.45M | 57.02M | 92.47M | 41.45M | -4.58M | 17.08M | -58.39M | 1.42M | 29M |
| Net Margin % | 4.4% | 13.96% | 3.58% | 6.98% | 12.47% | 7.53% | -1.16% | 3.81% | -15.78% | -182.56% | 12.57% |
| Net Income Growth % | 13.58% | 334.47% | -44.84% | -38.35% | 123.11% | 1005.4% | -126.81% | 129.24% | -4199.28% | -95.09% | - |
| Net Income (Continuing) | 44.28M | 136.63M | 31.45M | 57.02M | 92.47M | 41.45M | -4.58M | 17.08M | -51.48M | 19.48M | 29M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.29 | 0.85 | 0.19 | 0.36 | 0.58 | 0.25 | -0.02 | 0.21 | -0.67 | 0.03 | 0.72 |
| EPS Growth % | 8.33% | 347.37% | -47.22% | -37.93% | 132% | 1273.71% | -110.14% | 131.34% | -2363.51% | -95.89% | - |
| EPS (Basic) | - | 0.86 | 0.19 | 0.36 | 0.61 | 0.26 | -0.02 | 0.21 | -0.67 | 0.03 | 0.72 |
| Diluted Shares Outstanding | 151.94M | 161.29M | 167.72M | 160.02M | 159.03M | 163.78M | 161.63M | 160.08M | 87.32M | 48.15M | 40M |
| Basic Shares Outstanding | 151.94M | 159M | 165.09M | 158.78M | 152.85M | 159.98M | 161.63M | 157.89M | 87.16M | 48.15M | 40M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | 162.46% |
Quick answers to the most common questions about buying VRRM stock.
For fiscal year 2025, Verra Mobility Corporation (VRRM) reported total revenue of $979.1M. This represents a 324.3% increase compared to $230.7M in 2016.
Verra Mobility Corporation (VRRM) is profitable, generating $136.6M in net income for the fiscal year ending 2025 with a net profit margin of 14.0%.
Verra Mobility Corporation (VRRM) reported an operating income of $238.4M, resulting in an operating profit margin of 24.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Verra Mobility Corporation (VRRM) generated $948.8M in gross profit for the year, representing a gross profit margin of 96.9%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Volatile quarterly profitability
Metrics are mathematically derived from official filings.
Revenue Growth Accelerates on Strong Demand
Verra Mobility's revenue growth has accelerated, reaching 11.7% year-over-year in 2026Q2, up from a 5.0% growth rate in 2024Q4, suggesting strengthening demand for its tolling and traffic management solutions.
The acceleration in top-line growth, particularly the jump from 6.1% in 2025Q2 to 16.1% in 2025Q3 and 16.4% in 2025Q4, indicates the company is capturing market share or benefiting from increased traffic volumes. This trend appears durable, as the most recent quarter maintained double-digit growth despite a sequential revenue decline from 2025Q4, implying the business is not solely reliant on seasonal peaks.
Structural Margin Expansion and Pricing Power
Gross margins have expanded dramatically from 60.6% in 2024Q4 to a sustained level above 94% in recent quarters, indicating a fundamental shift in the cost structure and significant pricing power within its niche market.
The leap to gross margins consistently above 94% since 2025Q1, compared to the 60-83% range in early 2024, suggests a successful transition to a higher-margin service mix or the realization of significant operating efficiencies. This level of profitability is exceptional and appears to be structural, as it has been maintained for six consecutive quarters, providing a robust foundation for operating income generation.
Operating Leverage Unlocked by Margin Structure
Operating leverage has become highly favorable, with operating income scaling to 23-29% of revenue in profitable quarters, a stark improvement from the negative margins seen in 2024Q4, demonstrating efficient conversion of gross profit to earnings.
The company's operating margin has stabilized in the mid-to-high 20% range since 2025Q1, indicating that SG&A expenses are well-controlled relative to the expanded gross profit base. This suggests management has successfully scaled the business without a proportional increase in overhead, allowing incremental revenue to flow directly to the bottom line.
Net Income Volatility from Non-Operating Items
Reported net income and EPS show significant volatility, with 2026Q2 posting a net loss of $48.2M despite strong gross profit, suggesting material non-operating charges or tax effects are obscuring underlying operational performance.
The disconnect between robust operating income in most quarters and erratic net income figures, such as the large loss in 2026Q2 and 2024Q4, points to the impact of non-cash items, debt-related charges, or tax adjustments. Investors should focus on operating income as a cleaner measure of core business profitability, as net income appears heavily influenced by factors outside day-to-day operations.
2025 Marks a Profitability Inflection Point
The first quarter of 2025 represents a clear operational inflection, where gross margins surged to 94.3% and operating income turned consistently positive, establishing a new, higher baseline for profitability that has been maintained since.
Prior to 2025Q1, the company experienced quarters with negative operating income and volatile gross margins. The sustained shift to high-90s gross margins and operating margins above 25% starting in 2025Q1 suggests a permanent improvement in the business model, likely driven by contract wins, pricing adjustments, or cost restructuring that took effect at the start of that year.
Sustainability of Exceptional Margins in Question
The most significant analytical challenge is whether the current gross margins above 94% are sustainable, as they represent a dramatic departure from historical levels and may be vulnerable to competitive pressure or cost inflation.
While the recent margin structure is impressive, it is an outlier compared to both the company's own history and peer averages (e.g., Clearwater Analytics at 67.3%, OSI Systems at 34.3%). This raises questions about the durability of the pricing power or cost advantages that enabled this shift. Any reversion toward historical norms would severely impact operating income, given the fixed nature of SG&A expenses.