VERRA MOBILITY Corp Leases Disclosure

The Company’s operating leases primarily consist of office, equipment, and vehicle leases expiring at various dates through January 2037. The Company has lease agreements with lease and non-lease components and has elected to account for such components as a single lease component. The Company measures and recognizes contracts containing a lease and determines lease classification at commencement. Right of use operating assets and lease liabilities are measured based on the estimated present value of lease payments over the lease term. In determining the present value of lease payments, the Company uses its estimated incremental borrowing rate when the rate implicit in the lease cannot be readily determined. The estimated incremental borrowing rate is based upon information available at lease commencement including publicly available data for debt instruments. The lease term includes periods covered by options to extend when it is reasonably certain the Company will exercise such options as well as periods subsequent to an option to terminate the lease if it is reasonably certain the Company will not exercise the termination option. Certain of the lease agreements have rent abatement and escalating rental payment provisions. Operating lease costs are recognized on a straight-line basis over the lease term. Variable lease costs are recognized as incurred. The Company’s lease agreements do not contain any material residual value guarantees or restrictive covenants. The Company does not have material short-term leases and does not engage in material subleasing activities.

As of December 31, 2025 and 2024, operating leases had a remaining weighted average lease term of 7.6 years and 7.5 years, respectively, and operating lease liabilities were measured using a weighted average discount rate of 6.5% and 5.8%, respectively. The total operating lease costs for the fiscal years ended December 31, 2025, 2024, and 2023 were $10.3 million, $9.3 million, and $9.5 million, respectively. Variable lease costs for fiscal years ended December 31, 2025, 2024, and 2023 were approximately $3.7 million, $3.8 million, and $2.7 million, respectively. Finance leases for the Company were not material.