Verra Mobility Corporation's stock plunged 5.05% in the pre-market session on Friday, following the release of the company's fourth-quarter 2024 earnings results and a lackluster outlook for 2025.
The company reported a solid fourth quarter with consolidated revenue growth of 5% and adjusted EBITDA increasing by 12% year-over-year. However, investors were disappointed by the company's tepid guidance for 2025, which projected revenue growth at the lower end of its long-term outlook range of 6% to 8%.
Verra Mobility expects adjusted EBITDA to grow at a slower pace than revenue in 2025, primarily due to investments in sales and product installations in the Government Solutions segment, one-time costs related to its ERP implementation, and revenue mix shift as the Commercial Services segment faces lower anticipated travel volume.