Business UpdateMay 26, 2026, 04:23 PM
Verra Mobility Contract with Avis Budget Terminated; 2026 Guidance Cut
AI Summary
Verra Mobility Corporation announced it received a termination notice from Avis Budget Group, Inc. for their contract, effective September 2026. Avis Budget was a significant Commercial Services customer, accounting for over 10% of Verra Mobility's total revenue in Q1 2026 and FY 2025. As a result, Verra Mobility has revised its full-year 2026 financial guidance downwards and is taking immediate actions to reduce costs and adapt operations. The company also stated its intent to protect its contractual rights and business interests.
Key Highlights
- Avis Budget Group terminated its contract with Verra Mobility, effective September 2026.
- Avis Budget represented over 10% of Verra Mobility's total revenue in Q1 2026 and FY 2025.
- Revised 2026 total revenue guidance is $985 million to $995 million.
- Revised 2026 Adjusted EBITDA guidance is $380 million to $385 million.
- Revised 2026 Adjusted EPS guidance is $1.19 to $1.25.
- Revised 2026 Free Cash Flow guidance is $140 million to $150 million.
- Termination is expected to reduce 2026 annualized Commercial Services revenue by $135M-$145M.
- Termination is expected to reduce 2026 annualized segment profit by $120M-$125M.
Price Impact
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