This report does not constitute a rating action. We expect steady travel volumes and increased demand in its government services segment will support a 5%-7% rise in the company's revenue in 2025, with its EBITDA margins remaining in the low-40% area. We believe the company can achieve this level of growth despite our expectation for flat revenue under its contract with NYCDOT--its largest government solutions customer (15.8% of 2024 revenue)--as it works through the outstanding request for proposal (RFP) process. We think Verra is well-positioned from a competitive standpoint to successfully renew its contract with NYCDOT because it has been identified as the preferred vendor to manage the city?s automated enforcement camera safety program, which speaks to its long-standing relationship
