Where Verra Mobility’s Red-Light & Speed Camera Programs Are Growing Fastest: Q2 2025 Earnings Reveal Regional Leaders
Verra Mobility (NASDAQ: VRRM) released its Q2 2025 earnings on August 6, revealing that its Government Solutions segment—home to red-light, speed, bus lane, and school bus stop-arm enforcement programs—remains the company’s fastest-growing division. While the 10% year-over-year growth in this segment is impressive, what stands out most is where this growth is happening.
From New York City’s massive enforcement expansion to Philadelphia’s high-profile red-light corridor deployments, the company’s revenue gains are tied to specific states and cities that are embracing automated enforcement at scale.
Q2 2025 Earnings Overview
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Total Revenue: $236.0M (+6% YoY)
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Net Income: $38.6M ($0.24 per diluted share)
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Adjusted EPS: $0.34 (up from $0.31)
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Adjusted EBITDA: $105.3M (45% margin)
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Government Solutions Revenue: $107.1M (+10% YoY)
The star performer was Government Solutions, which accounts for much of Verra Mobility’s municipal partnerships and automated enforcement technology contracts.
Top Regions Driving Growth
1. New York City, NY
NYC represents Verra Mobility’s largest enforcement footprint. The city operates the nation’s biggest automated enforcement network and recently passed legislation to quadruple red-light cameras from 150 to 600 intersections. It also manages extensive speed camera and bus lane enforcement programs.
A pending contract renewal with the NYC Department of Transportation is expected to sustain—and possibly expand—this revenue stream, despite near-term uncertainty.
2. Long Island, NY (Nassau & Suffolk Counties)
On Long Island, Verra Mobility manages speed camera enforcement in work zones and red-light camera programs. Nassau County’s contract runs through December 2029, while Suffolk County’s deployments continue to expand. These counties have been key contributors to New York State’s position as one of the strongest red-light and speed camera markets in the U.S.
3. Philadelphia, PA
The Philadelphia Parking Authority recently awarded Verra Mobility a contract to install 74 red-light cameras, complementing another vendor’s 72-camera award. High-crash corridors like Roosevelt Boulevard are seeing targeted deployments aimed at reducing serious collisions.
4. San Francisco, CA
San Francisco has been running automated enforcement programs since 1996, and Verra Mobility currently manages the city’s red-light and illegal-turn cameras. These efforts are central to the city’s Vision Zero safety plan, which has seen a 66% drop in injury collisions from red-light running between 1997 and 2022.
5. Lakeland, FL
This mid-sized Florida city extended its red-light camera contract with Verra Mobility in late 2023, keeping 18 cameras across 11 intersections and upgrading several systems. The city also uses Verra Mobility’s automatic license plate recognition (ALPR) technology, showcasing the company’s ability to deliver multi-solution packages.
Regional Revenue Trends
| Region / City | Enforcement Programs | Status |
|---|---|---|
| New York City, NY | Red-light, speed, bus lane, truck enforcement | Expanding |
| Long Island, NY | Red-light & speed cameras in work zones | Stable/Expanding |
| Philadelphia, PA | Red-light cameras on high-crash corridors | New Installations |
| San Francisco, CA | Red-light & illegal-turn cameras (Vision Zero) | Long-Term Contract |
| Lakeland, FL | Red-light & ALPR systems | Upgrades in Progress |
Why These Regions Stand Out
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Population Density – High-traffic, urban areas like NYC and Philadelphia see more violations, making enforcement more impactful.
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Supportive Legislation – States like New York and California have legal frameworks that encourage automated enforcement.
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Proven Safety Impact – Cities like San Francisco use decades of collision reduction data to justify program expansion.
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Revenue Reliability – Programs generate consistent fine revenue, making them appealing to municipalities.
Challenges in Key Markets
Even in these strong regions, there are operational and political challenges:
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Contract Renewals – NYC’s pending contract decision is a potential swing factor for Government Solutions revenue.
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Public Backlash – In some regions, drivers and advocacy groups push back against perceived revenue-driven enforcement.
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Legal Changes – State legislatures can limit or expand camera use, directly impacting program scope.
Outlook for 2025 and Beyond
With a reaffirmed 2025 revenue target of $925–935M and a $100M share repurchase program, Verra Mobility is signaling confidence in its long-term growth. The company’s strongest opportunities remain in expanding urban and suburban automated enforcement networks, especially in markets with a proven appetite for red-light and speed camera programs.
Given legislative trends, more states could join the ranks of these top-performing regions, further cementing automated enforcement as a fixture of urban traffic safety strategies.