Verra Mobility (VRRM) Stock Plunges 40% After Avis Budget Ends its Contract

Verra Mobility Corporation (NASDAQ:VRRM) is one of the 10 Best Russell 2000 Stocks to Invest In According to Hedge Funds.

On May 27, Barron’s reported that Verra Mobility Corporation (NASDAQ:VRRM) shares dipped more than 46% in premarket trading after Avis Budget Group terminated its contract, starting in September.

On May 26,  Verra Mobility Corporation (NASDAQ:VRRM) reported that it received a termination notice from Avis Budget. It is taking quick steps to cut costs and assign resources linked to the customer. The company is also reviewing its contractual rights and the handling of confidential information.

President and Chief Executive Officer David Roberts said the company was “surprised and disappointed” and that it is “moving decisively” to adjust operations and position for future opportunities.

Verra Mobility (VRRM) Stock Plunges 40% After Avis Budget Ends its Contract

At the same time, the corporation revised its 2026 outlook. It projected revenue of $985 million to $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.

Verra Mobility Corporation (NASDAQ:VRRM) works in the supply of smart mobility technology solutions through Government Solutions, Commercial Services, and Parking Solutions segments.

While we acknowledge the risk and potential of VRRM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than VRRM and that has 10,000% upside potential, check out our report about the cheapest AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy. 

Disclosure: None. Follow Insider Monkey on Google News.

1281292 - 11759070 - 1