VERRA MOBILITY Corp Segments Disclosure
The Company has three operating and reportable segments, Commercial Services, Government Solutions, and Parking Solutions. Commercial Services offers toll and violation management solutions and title and registration services to RACs, Direct Fleets, FMCs, and other large fleet owners. Government Solutions offers photo enforcement automated safety solutions and services to states, municipalities, counties, school districts, and law enforcement agencies of all sizes. Parking Solutions provides an integrated suite of parking software, transaction processing, and hardware solutions to its customers.
The operating and reportable segments were determined based on how the Company’s Chief Operating Decision Maker (“CODM”) regularly reviews the operating results of the various components of the Company for which discrete financial information is available, including based on the nature of the products and services and the type of customer. The Company defines the CODM as its Chief Executive Officer. The Company’s CODM primarily uses actual revenues and segment profit (defined below) as compared to previously budgeted amounts to evaluate the operating performance, allocate resources, and deploy capital to the segments.
Segment performance is based on revenues and income from operations before depreciation, amortization, and stock-based compensation. The measure also excludes interest expense, net, income taxes and certain other transactions and is inclusive of other income, net. The tables below refer to this measure as segment profit. The aforementioned items are not indicative of operating performance, and, as a result, are not included in the measures that are reviewed by the CODM for the segments. Other income, net included in segment profit below consists primarily of credit card rebates earned on the prepayment of tolling transactions and gains or losses on foreign currency transactions and excludes certain non-operating expenses inapplicable to segments.
The CODM does not use discrete asset information to evaluate operating performance at the segment level, and as such, the Company has not reported assets disaggregated by reportable segment.
The following tables set forth financial information by segment for the fiscal years ended December 31, 2025, 2024 and 2023:
|
|
For the Year Ended December 31, 2025 |
|
|||||||||||||
|
|
Commercial |
|
|
Government |
|
|
Parking |
|
|
|
|
||||
($ in thousands) |
|
Services |
|
|
Solutions |
|
|
Solutions |
|
|
Total |
|
||||
Service revenue |
|
$ |
435,791 |
|
|
$ |
415,637 |
|
|
$ |
66,709 |
|
|
$ |
918,137 |
|
Product sales |
|
|
— |
|
|
|
45,070 |
|
|
|
15,872 |
|
|
|
60,942 |
|
Total revenue |
|
|
435,791 |
|
|
|
460,707 |
|
|
|
82,581 |
|
|
|
979,079 |
|
Cost of service revenue, excluding depreciation and amortization |
|
|
2,549 |
|
|
|
12,426 |
|
|
|
15,343 |
|
|
|
30,318 |
|
Cost of product sales |
|
|
— |
|
|
|
32,494 |
|
|
|
13,023 |
|
|
|
45,517 |
|
Operating expenses |
|
|
96,894 |
|
|
|
214,607 |
|
|
|
16,400 |
|
|
|
327,901 |
|
Selling, general and administrative expenses |
|
|
75,082 |
|
|
|
78,988 |
|
|
|
26,326 |
|
|
|
180,396 |
|
Loss on disposal of assets, net |
|
|
7 |
|
|
|
2,222 |
|
|
|
6 |
|
|
|
2,235 |
|
Other income, net |
|
|
(21,254 |
) |
|
|
(1,937 |
) |
|
|
(2 |
) |
|
|
(23,193 |
) |
Segment profit |
|
$ |
282,513 |
|
|
$ |
121,907 |
|
|
$ |
11,485 |
|
|
$ |
415,905 |
|
Interest expense, net |
|
|
|
|
|
|
|
|
|
|
|
64,618 |
|
|||
Tax receivable agreement liability adjustment |
|
|
|
|
|
|
|
|
|
|
|
687 |
|
|||
Loss on extinguishment of debt |
|
|
|
|
|
|
|
|
|
|
|
1,335 |
|
|||
Other reconciling items (1) |
|
|
|
|
|
|
|
|
|
|
|
154,283 |
|
|||
Income before income taxes |
|
|
|
|
|
|
|
|
|
|
$ |
194,982 |
|
|||
(1) This primarily consists of depreciation and amortization expense, stock-based compensation, and other costs to reconcile to total income before income taxes.
|
|
For the Year Ended December 31, 2024 |
|
|||||||||||||
|
|
Commercial |
|
|
Government |
|
|
Parking |
|
|
|
|
||||
($ in thousands) |
|
Services |
|
|
Solutions |
|
|
Solutions |
|
|
Total |
|
||||
Service revenue |
|
$ |
407,680 |
|
|
$ |
367,914 |
|
|
$ |
66,082 |
|
|
$ |
841,676 |
|
Product sales |
|
|
— |
|
|
|
22,989 |
|
|
|
14,542 |
|
|
|
37,531 |
|
Total revenue |
|
|
407,680 |
|
|
|
390,903 |
|
|
|
80,624 |
|
|
|
879,207 |
|
Cost of service revenue, excluding depreciation and amortization |
|
|
2,682 |
|
|
|
2,066 |
|
|
|
14,240 |
|
|
|
18,988 |
|
Cost of product sales |
|
|
— |
|
|
|
15,433 |
|
|
|
11,625 |
|
|
|
27,058 |
|
Operating expenses |
|
|
92,038 |
|
|
|
182,493 |
|
|
|
17,353 |
|
|
|
291,884 |
|
Selling, general and administrative expenses |
|
|
62,942 |
|
|
|
69,972 |
|
|
|
25,173 |
|
|
|
158,087 |
|
Loss on disposal of assets, net |
|
|
222 |
|
|
|
315 |
|
|
|
9 |
|
|
|
546 |
|
Other (income) expense, net |
|
|
(17,958 |
) |
|
|
(1,061 |
) |
|
|
49 |
|
|
|
(18,970 |
) |
Segment profit |
|
$ |
267,754 |
|
|
$ |
121,685 |
|
|
$ |
12,175 |
|
|
$ |
401,614 |
|
Interest expense, net |
|
|
|
|
|
|
|
|
|
|
|
73,902 |
|
|||
Goodwill impairment |
|
|
|
|
|
|
|
|
|
|
|
97,076 |
|
|||
Tax receivable agreement liability adjustment |
|
|
|
|
|
|
|
|
|
|
|
(257 |
) |
|||
|
|
|
|
|
|
|
|
|
|
|
494 |
|
||||
Loss on extinguishment of debt |
|
|
|
|
|
|
|
|
|
|
|
1,745 |
|
|||
Other reconciling items (1) |
|
|
|
|
|
|
|
|
|
|
|
149,546 |
|
|||
Income before income taxes |
|
|
|
|
|
|
|
|
|
|
$ |
79,108 |
|
|||
(1) This primarily consists of depreciation and amortization expense, stock-based compensation, and other costs to reconcile to total income before income taxes.
|
|
For the Year Ended December 31, 2023 |
|
|||||||||||||
|
|
Commercial |
|
|
Government |
|
|
Parking |
|
|
|
|
||||
($ in thousands) |
|
Services |
|
|
Solutions |
|
|
Solutions |
|
|
Total |
|
||||
Service revenue |
|
$ |
372,786 |
|
|
$ |
344,034 |
|
|
$ |
66,775 |
|
|
$ |
783,595 |
|
Product sales |
|
|
— |
|
|
|
14,385 |
|
|
|
19,330 |
|
|
|
33,715 |
|
Total revenue |
|
|
372,786 |
|
|
|
358,419 |
|
|
|
86,105 |
|
|
|
817,310 |
|
Cost of service revenue, excluding depreciation and amortization |
|
|
2,362 |
|
|
|
2,252 |
|
|
|
13,618 |
|
|
|
18,232 |
|
Cost of product sales |
|
|
— |
|
|
|
9,751 |
|
|
|
15,480 |
|
|
|
25,231 |
|
Operating expenses |
|
|
83,828 |
|
|
|
168,736 |
|
|
|
18,236 |
|
|
|
270,800 |
|
Selling, general and administrative expenses |
|
|
61,607 |
|
|
|
62,597 |
|
|
|
23,988 |
|
|
|
148,192 |
|
Loss on disposal of assets, net |
|
|
— |
|
|
|
128 |
|
|
|
— |
|
|
|
128 |
|
Other (income) expense, net |
|
|
(17,176 |
) |
|
|
488 |
|
|
|
(87 |
) |
|
|
(16,775 |
) |
Segment profit |
|
$ |
242,165 |
|
|
$ |
114,467 |
|
|
$ |
14,870 |
|
|
$ |
371,502 |
|
Interest expense, net |
|
|
|
|
|
|
|
|
|
|
|
86,701 |
|
|||
Change in fair value of private placement warrants |
|
|
|
|
|
|
|
|
|
|
|
24,966 |
|
|||
Tax receivable agreement liability adjustment |
|
|
|
|
|
|
|
|
|
|
|
(3,077 |
) |
|||
|
|
|
|
|
|
|
|
|
|
|
817 |
|
||||
Loss on extinguishment of debt |
|
|
|
|
|
|
|
|
|
|
|
3,533 |
|
|||
Other reconciling items (1) |
|
|
|
|
|
|
|
|
|
|
|
171,565 |
|
|||
Income before income taxes |
|
|
|
|
|
|
|
|
|
|
$ |
86,997 |
|
|||
(1) This primarily consists of depreciation and amortization expense, stock-based compensation, and other costs to reconcile to total income before income taxes.
The Company provides information on credit loss expense (income) by reportable segment, refer to Note 2, Significant Accounting Policies, for additional details.
The Company primarily operates within the United States, Australia, Europe, and Canada. Property and equipment, net located in foreign countries was $18.6 million as of December 31, 2025, of which Australia represented $6.9 million, Canada represented $5.8 million, and Spain represented $3.2 million. Property and equipment, net located in foreign countries was $20.3 million as of December 31, 2024, of which Canada represented $10.6 million and Australia represented $5.8 million.
The following table details the revenues from international operations for the respective periods:
|
|
For the Year Ended December 31, |
|
|||||||||
($ in thousands) |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Australia |
|
$ |
66,202 |
|
|
$ |
58,029 |
|
|
$ |
45,879 |
|
Canada |
|
|
31,600 |
|
|
|
33,192 |
|
|
|
30,826 |
|
United Kingdom |
|
|
28,209 |
|
|
|
20,484 |
|
|
|
23,794 |
|
All other |
|
|
6,958 |
|
|
|
4,318 |
|
|
|
3,071 |
|
Total international revenues |
|
$ |
132,969 |
|
|
$ |
116,023 |
|
|
$ |
103,570 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Apr 22, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Mar 2, 2020 | |
| 2018 | Mar 18, 2019 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.