Verra Mobility Corporation (NASDAQ: VRRM) announced that Avis Budget Group has terminated its contract with the company, effective September 2026. The Mesa, Arizona-based smart mobility technology provider received the termination notice and is implementing cost reduction measures in response.

The contract termination is expected to reduce Verra Mobility's Commercial Services segment revenue by approximately $135 million to $145 million annually and segment profit by $120 million to $125 million annually for 2026, before accounting for planned cost reduction initiatives.

"We were surprised and disappointed to receive this notice from Avis Budget Group given our longstanding partnership and the significant time invested by both parties in ongoing extension negotiations," said David Roberts, President and CEO of Verra Mobility.

The company has revised its 2026 full-year financial guidance following the termination notice. Verra Mobility now expects total revenue of $985 million to $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.

Verra Mobility stated it intends to protect its contractual rights, intellectual property, and business interests. The company is reviewing matters related to the parties' negotiations, handling of confidential information, and respective rights and obligations under their agreements.

The company plans to reallocate resources previously associated with the Avis Budget Group contract to other customers as part of its operational adaptation strategy.