Overview
- Avis Budget Group notified Verra Mobility that it will terminate their agreement effective September 2026, a contract that accounted for roughly 13.5% of Verra’s 2025 revenue.
- Verra said the loss will shave about $135 million to $145 million from annualized commercial services revenue and reduce segment profit by roughly $120 million to $125 million before cost actions.
- The company lowered full‑year 2026 guidance to $985 million–$995 million in revenue, adjusted EBITDA of $380 million–$385 million, adjusted EPS of $1.19–$1.25, and free cash flow of $140 million–$150 million.
- The stock plunged roughly 41%–46% in after‑hours and premarket trading Wednesday and prompted analyst downgrades and sharp price‑target cuts that highlighted higher leverage and renewal risk.
- Verra said it will cut costs, adjust operations and review contractual and confidential‑information issues while investors watch 2027 renewals with Enterprise and Hertz for wider commercial risks.