Verra Mobility Receives Termination Notice from Avis Budget Group and Revises 2026 Guidance

Verra Mobility Corporation announced on May 26, 2026, that it received a termination notice from Avis Budget Group, Inc. regarding their contract, effective September 2026. Avis Budget was a significant customer, representing over 10% of Verra Mobility's total revenue in the first three months of 2026 and the entirety of 2025. The company expressed surprise and disappointment, and is taking immediate actions to reduce costs, adapt operations, and protect its contractual rights and business interests. Verra Mobility is reviewing matters related to the contract negotiations and parties' rights and obligations. Consequently, the company has revised its full-year 2026 financial outlook. The new guidance projects total revenue between $985 million and $995 million, Adjusted EBITDA of $380 million to $385 million, Adjusted EPS of $1.19 to $1.25, and Free Cash Flow of $140 million to $150 million. The termination is expected to reduce Commercial Services' 2026 annualized revenue by approximately $135-$145 million and segment profit by $120-$125 million before cost reduction initiatives.