Gross margins have clustered between 87% and 97% in most quarters, yet operating margin swung from 28.6% in 2025Q3 to -12.4% in 2026Q2, indicating that discrete items heavily influence reported profitability.
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 | 1B | 979.08M | 879.21M | 817.31M | 741.6M | 550.59M | 393.59M | 448.74M | 370.15M | -780.28K | 230.75M |
| Revenue Growth % | 6.49% | 11.36% | 7.57% | 10.21% | 34.69% | 39.89% | -12.29% | 21.23% | 47537.55% | -100.34% | - |
| Cost of Goods Sold | 62.84M | 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 | 941.05M | 948.76M | 860.22M | 773.85M | 694.34M | 515.44M | 360.05M | 303.62M | 360.91M | -52.36M | 134.84M |
| Gross Margin % | 93.74% | 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 | 813.45M | 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 | 195.83M | 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 | 127.61M | 238.41M | 136.02M | 188.81M | 164.71M | 111.87M | 37.82M | 96.45M | 12.61M | -780.28K | 47.89M |
| Operating Margin % | 12.71% | 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 | 240.49M | 352.49M | 244.55M | 301.88M | 303.39M | 228.62M | 154.39M | 212.02M | 115.95M | 44.94M | 81.71M |
| EBITDA Margin % | 23.96% | 36% | 27.81% | 36.94% | 40.91% | 41.52% | 39.22% | 47.25% | 31.33% | -5760.08% | 35.41% |
| EBITDA Growth % | -9.15% | 44.14% | -18.99% | -0.5% | 32.71% | 48.08% | -27.18% | 82.85% | 157.99% | -44.99% | - |
| D&A (Non-Cash Add-back) | 112.88M | 114.08M | 108.53M | 113.07M | 138.68M | 116.75M | 116.57M | 115.57M | 103.35M | 45.73M | 33.81M |
| EBIT | 147.33M | 259.6M | 153.01M | 173.7M | 196.48M | 112.84M | 41.72M | 102.35M | 1.82M | 11.79M | 50.36M |
| Net Interest Income | -60.91M | -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 | 60.91M | 64.62M | 73.9M | 86.7M | 69.37M | 44.94M | 40.87M | 60.73M | 69.55M | 3.02M | 2.71M |
| Other Income/Expense | -41.19M | -43.43M | -56.91M | -101.82M | -37.6M | -43.97M | -36.96M | -65.8M | -90.48M | 3.02M | -235.72K |
| Pretax Income | 86.42M | 194.98M | 79.11M | 87M | 127.11M | 67.9M | 853K | 30.66M | -74.64M | 2.24M | 47.66M |
| Pretax Margin % | 8.61% | 19.91% | 9% | 10.64% | 17.14% | 12.33% | 0.22% | 6.83% | -20.16% | -286.49% | 20.65% |
| Income Tax | 48.59M | 58.35M | 47.66M | 29.98M | 34.63M | 26.45M | 5.43M | 13.58M | -16.24M | 810.93K | 18.66M |
| Effective Tax Rate % | 56.22% | 29.93% | 60.25% | 34.46% | 27.25% | 38.96% | 636.69% | 44.3% | 21.76% | 36.28% | 39.16% |
| Net Income | 37.83M | 136.63M | 31.45M | 57.02M | 92.47M | 41.45M | -4.58M | 17.08M | -58.39M | 1.42M | 29M |
| Net Margin % | 3.77% | 13.96% | 3.58% | 6.98% | 12.47% | 7.53% | -1.16% | 3.81% | -15.78% | -182.56% | 12.57% |
| Net Income Growth % | -25.96% | 334.47% | -44.84% | -38.35% | 123.11% | 1005.4% | -126.81% | 129.24% | -4199.28% | -95.09% | - |
| Net Income (Continuing) | 37.83M | 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) | 0.25 | 0.85 | 0.19 | 0.36 | 0.58 | 0.25 | -0.02 | 0.21 | -0.67 | 0.03 | 0.72 |
| EPS Growth % | -25% | 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 | 152.12M | 161.29M | 167.72M | 160.02M | 159.03M | 163.78M | 161.63M | 160.08M | 87.32M | 48.15M | 40M |
| Basic Shares Outstanding | 152M | 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 operating income
Metrics are mathematically derived from official filings.
Revenue Growth Plateauing Near Mid-Single Digits
Based on reported quarterly figures, VRRM's revenue has moved from roughly 6% year-over-year growth in early 2025 to a slight contraction of 1.2% in the most recent quarter, suggesting growth momentum has largely stalled.
The reported revenue series of $223M to $264M per quarter indicates a business whose top line is expanding modestly rather than compounding. The sequential flatness through 2026 suggests growth is being driven more by pricing or contract mix than by a meaningful volume acceleration. Investors should monitor whether the -1.2% decline in the latest quarter represents a transitory fluctuation or the start of a deceleration trend.
Gross Margin Structurally Elevated but Volatile
Reported gross margins ranged from 60.6% to 102.1% across the period, with most quarters clustering between 87% and 97%, which points to a cost base that is largely fixed relative to revenue rather than a conventional product-margin profile.
The unusually high gross margins reflect a service-oriented model where direct costs are minimal relative to revenue, consistent with the technology services classification. The outlier quarters, including the 60.6% margin in 2024Q4 and the negative cost of revenue in 2025Q4, appear to reflect timing or classification items rather than sustainable economics. Based on these figures, the underlying gross margin profile looks durable, but the quarter-to-quarter swings warrant further investigation before treating the average as a reliable run-rate.
Operating Income Swings Obscure Scaling Trend
As reported, VRRM's operating margin oscillated between roughly 17% and 29% in profitable quarters, while the two loss quarters in 2024Q4 and 2026Q2 pushed operating margin to -19.6% and -12.4%, indicating large non-recurring or timing-driven items.
SG&A has remained relatively stable at roughly $40M to $52M per quarter, with the exception of the $67.5M figure in 2025Q4, which likely contributed to that quarter's margin compression. The gap between gross profit and operating income in normal quarters suggests moderate operating leverage, though the frequency of negative operating income quarters limits confidence in a clean scaling thesis. Investors should monitor whether the 2026Q2 operating loss reflects discrete charges that do not recur.
Net Income Heavily Influenced by Discrete Items
According to reported figures, VRRM's net margin moved between roughly 7% and 18% in normal quarters, yet the large swings to -30.1% in 2024Q4 and -18.3% in 2026Q2 show that reported net income is sensitive to items outside core operations.
Diluted EPS mirrors these swings, ranging from roughly $0.12 to $0.29 in profitable quarters before turning negative in the loss periods. Stock-based compensation of $4M to $7M per quarter is modest relative to net income, so it does not appear to be the primary driver of volatility. Based on the reported data, the quality of earnings depends heavily on identifying and normalizing the non-recurring charges behind the loss quarters.
Margin Durability Under Scrutiny
The strongest bear case rests on the fact that VRRM's latest quarter showed revenue decline of 1.2% alongside an EPS decline of 6.9%, which may indicate that margin expansion has peaked while growth stalls.
Short-side analysis would focus on the cluster of negative operating quarters and the decline in diluted EPS growth, suggesting the earnings base may be less stable than the average margin implies. Peer comparison shows VRRM's operating margin is well above the OSI Systems and Resideo averages, which could invite questions about whether the premium is fully sustainable under competitive pressure. These are inferences from the reported figures and warrant further investigation rather than proven conclusions.