Verra Mobility said it received a termination notice from Avis Budget Group that will take effect in September 2026, and it immediately moved to cut costs and reassign resources tied to that customer.
The company said the contract loss is expected to reduce its commercial services business by about $135 million to $145 million in annualized 2026 revenue and by about $120 million to $125 million in annualized segment profit, before cost cuts.
Verra Mobility also revised its full-year 2026 outlook. It now expects:
- Revenue of $985 million to $995 million
- Adjusted EBITDA of $380 million to $385 million
- Adjusted EPS of $1.19 to $1.25
- Free cash flow of $140 million to $150 million
The company said its revised assumptions for 2026 include:
- About 155 million weighted average diluted shares
- An effective tax rate of 28.0% to 29.0%
- About $50 million in cash taxes
- About $125 million in depreciation and amortization
- About $62 million in total interest expense, including roughly $60 million in net cash interest paid
- Zero change in working capital
- About $125 million in capital expenditures, mainly for camera installations and Mosaic implementation
Verra Mobility said it was “surprised and disappointed” by the termination notice after what it described as longstanding partnership discussions. The company said it is reviewing matters tied to negotiations, confidential information, and contractual rights. Today the company's shares have moved 0.68% to a price of $13.37. For the full picture, make sure to review VERRA MOBILITY Corp's 8-K report.
