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Why Verra Mobility (VRRM) Stock Crashed Over 41% In After-Hours Trading

Benzinga·05/27/2026 06:46:17
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Verra Mobility (NASDAQ:VRRM) shares plunged sharply in after-hours trading on Tuesday.

VRRM shares fell 41.2% to $7.70 in after-hours trading after the company announced that Avis Budget Group terminated its agreement with Verra Mobility effective September 2026.

Verra Mobility is a smart transportation technology company that helps manage tolling transactions, traffic enforcement systems and fleet mobility services for commercial fleets, rental car companies and government agencies.

Contract Loss

The company said it was "surprised and disappointed" after receiving the termination notice from Avis Budget Group, one of the world's largest rental car companies, and added that it is taking steps to reduce costs and adjust operations. Verra Mobility also said it is reviewing issues related to negotiations, confidential information and contractual obligations tied to the agreement.

Verra Mobility said the contract termination could reduce annualized Commercial Services revenue by about $135 million to $145 million and lower annualized segment profit by around $120 million to $125 million before any cost-cutting efforts.

The company also lowered its 2026 financial outlook and now expects revenue between $985 million and $995 million, adjusted EBITDA of $380 million to $385 million, adjusted earnings per share of $1.19 to $1.25 and free cash flow of $140 million to $150 million.

Trading Analysis

Verra Mobility currently has a market capitalization of approximately $2 billion, with a 52-week high of $25.83 and a low of $12.83.

The stock is down nearly 46% over the past 12 months.

Price Action: According to market data, VRRM closed Tuesday's regular trading session down 3% at $13.08. Shares later plunged 41.2% in after-hours trading to $7.70.

Benzinga's Edge Stock Rankings indicate that VRRM shares currently maintain negative short, medium and long-term price trends.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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