Verra Mobility Q3 2026: EPS Beat Amid Leadership Shake-Up

Verra Mobility posted adjusted EPS of $0.36 for the third quarter of 2026, beating expectations on both earnings and revenue. The beat lands in the same week the company is handing the keys to a new CEO and an interim CFO, making the underlying numbers harder than usual to read at face value.

Commercial Services was the weak spot, where rental car tolling revenue dropped 20% after contract renewals with Avis Budget Group and Hertz came in on materially less favorable terms. Avis's contract is set to terminate entirely on January 30, 2027, and Enterprise Mobility's agreement expires September 30, 2027, with a competitive renewal process already underway, so the RAC revenue headwind is not a one-quarter event.

Government Solutions provided the clearest offset, with segment revenue up 12% year over year. Record bookings outside the NYCDOT renewal quarter and net new camera installation revenue from New York City drove that growth, and Verra Mobility was separately selected by Los Angeles to run California's largest speed safety program, pointing to continued municipal demand for automated enforcement.

Free cash flow rose 83% year over year, which management attributed partly to lower accounts receivable. Despite the contract turbulence and the dual leadership transition, full-year 2026 guidance was reaffirmed. Quarterly earnings calls resume with fourth-quarter results, giving investors their first extended look at the new leadership team.