Hi, everyone. Thank you very much. This is Tomohiko Sano from JP Morgan covering the SMID cap industrials. This is Verra Mobility Corporation sessions. With me we have Craig Conti, Chief Financial Officer. Thank you very much, Craig, for joining us. Let me start by sharing why Verra Mobility is such a standout in this year's conference lineup. As the market leader in U.S. tolling, automated enforcement, and smart mobility solutions, Verra, you know, boosted over 90% recurring revenue, and a strong track record of technology-driven growth with major contract wins in New York City and Hawaii, fueling the next phase of expansions.
With that, I'd like to hand it over to Craig to go through, you know, who the company is, and what you do, and your story, for those who may not be familiar with it.
All right. Thanks a lot.
Thank you, Craig.
Yeah. Thanks a lot, Tomo. First of all, thanks for the invite. Really nice conference so far. I'm looking forward to the rest of the day. Let me tell you a little bit about the company. I've only got a few slides for those who might not be familiar with it, and I'll start at the top of the waves, the financial profile. I'll go through our businesses quickly, and I'll tell you a little bit how I think about allocating capital. Verra Mobility, if we look at 2025, just south of $1 billion, 94% service revenue, which is basically all recurring revenue. We'll talk about that as we get a little deeper today. Adjusted EBITDA, north of $400 million.
42% margins across the enterprise and free cash flow generation of about $137 million for the trailing 12 months ending 2025. We have about just shy of 2,000 employees, 1,900 we've got on the slide. 2,300 customers. Interestingly with this, about 2,000 of those customers are in our smallest business, which is parking solutions. The balance, about 300 or so customers between commercial and government. I'll talk about those businesses in a second. If you think about the geography, so the geography behind that, just roughly, under $1 billion of revenue, about 90% of that is in North America. 7% of it is in APAC, heavily concentrated in Australia and New Zealand, and, three percent spread across the continent in Europe.
That's the top of the waves financially for the company. Let me tell you what we do. I think Tomo Sano gave a pretty nice intro already. The commercial services business, which is about 45% of our consolidated revenue, in this business, we're the market leader in toll and violation management for commercial fleets. The way that typically shows up is rental cars, although we also do large and medium corporate fleets. We do toll services, violation processing, and title and registration on behalf of our customers. This is a mid-single digit organic grower over the next couple years, if you heard, we talked about that in our earnings call, and this is a business that operates in the mid-60s% in terms of EBITDA margin.
Our government solutions business, just south of half of the company, we're the industry leader in automated traffic enforcement for cities and school districts. This is a high single-digit% grower. About high 20s% margins, that's gonna step back a little bit in 2026, get back up to those levels in 2027, and then expanding from there in 2028. If you think about how we go to market here, these are speed safety cameras, traffic or bus lane enforcement cameras, school bus stop arm cameras, and red light cameras. Finally, parking solutions. In parking solutions, we're the leading technology provider of end-to-end parking management solutions in North America. What I like to say about this business isn't what it is, it's what it isn't, okay? We do not own parking lots. We don't own any real estate. We do.
The easiest way to think about it is the hardware and the software, the ERP of parking for universities and cities. Our solution is across SaaS services and hardware. That's a little bit about Verra Mobility, each of our businesses. This is my last slide. I want to talk a little bit about capital allocation. I think with any company, the question that, you know, you may ask is, how do you allocate capital? For Verra Mobility, I like to say a good indicator of how we're gonna allocate capital in the future is how we've done it in the past.
Mm-hmm.
This capital allocation, what I call the wheel, this covers our capital allocation since we went public in 2018. The first, it's about $2.5 billion of capital deployed, and let me walk you through how we've done that. The first dollars out the door for Verra Mobility are always organic investment. The organic investment is our CapEx, so the overwhelming majority of our CapEx is in our government solutions business, where we actually keep the photo enforcement equipment on our books. We provide that to our customers pseudo free of charge, probably the way, the best way to think about it for most of our customers. First dollars out the door. Secondly is strategic M&A. We've spent about $1.2 billion on that since we went public. We haven't done a deal since the end of 2021.
I don't have it on the page, but debt repayment, we've paid down $200 million of debt, primarily over the last couple years. Finally, share buybacks. We've done $650 million of share buybacks since we went public. That's a little bit about the company, our profile, what we do, and how we allocate capital. I think with that, I'll turn it over to Tomo, and let's have a conversation.
Yeah. Great. Thank you, Craig. Why don't you,
Want me to sit next to you?
Yes, please.
All right.
Thank you.
Cool.
All right. Shall we talk about the company transformation culture and leadership perspectives? You have evolved into a market-leading safety and smart mobility platform with a strong culture of operational discipline, innovation, and customer focus.
Right.
What has been the most important cultural or organizational change driving this transformation, Craig?
Yeah. Can you hear me okay?
Yes.
Okay. Great. Yeah, you know, look, Tomo Sano, the way I think about that is first you start with the purpose of the company. Right. The purpose of the company is to make transportation safer, smarter, and more efficient and more connected. Okay? Then I think a piece that's been really successful culturally is we run the company on four pillars, and these have been really consistent, and they're not just words on a wall. This is actually how we evaluate ourselves and how we talk about ourselves, right? And those four pillars, they're gonna sound familiar. You might have heard them at other companies, but as we go a little deeper, I'll tell you how we actually run the company on these.
Mm-hmm.
Pillar one is do what's right. Okay? The second pillar is courage over comfort. That's always how we communicate with each other, courage over comfort. Win together. I'll leave it there. I'll leave it there for now. It is the way that we think about those, this is the way that we communicate with each other. This is how we evaluate each other, and when we're in meetings, this is how we make sure that what needs to be said actually is said, and it's been a cultural bedrock of the company for a long time.
Thank you. If you could give example from Craig, your perspective.
Sure
Like to embody like the one of those pillars.
Yeah, sure. You know, I think the big thing is courage over comfort. I wanna talk about that one.
Mm-hmm.
I grew up at GE in the Jack Welch era, and we used to call something similar to this edge. This is not a new concept, and I think what happens is, we'll talk culturally about the company. We have an internal promoter score. It's a Glint survey. It's an engagement score, which is really, really high, and I'm very proud of that. I think the one thing is when you have a high engagement among your employees, and you like working together, sometimes it becomes hard to have that tough conversation. This is actually a recent change to our values when we talk about courage over comfort.
When you're in a meeting and there's a tough question to be asked, you have the license in the company to do that, and it's not perceived as being rude. That's really, really important. I use it financially all the time. Like, I actually say in meetings, "Courage over comfort for a second here. How do you think about X, Y, and Z?" That's been really successful. I think successful cultures sometimes need to give themselves the license to have those discussions. That's how we've done it at Verra.
Yeah. Thank you for sharing. If you could talk about how do you ensure the operational discipline, customer centricity, and a people-first culture remain embedded across your global footprints?
The big thing to me is the Verra Mobility operating system. The Verra Mobility operating system is roughly leveraged from Danaher, the Danaher Business System. Essentially what that is is a set of standard metrics or mechanisms that we use across the company. If you think about Verra, a question I get a lot, Tomo-
Mm-hmm
I s why is the government and the commercial business together?
Right.
Like, why are they under the same umbrella? The not really satisfying answer is the same founder invented both products. They could easily not be under the same umbrella. How do you get commonality between those two things? You have a common operating system. I think what that common operating system allows the business to do is I have the same way that I look at in terms of problem-solving, daily management, Kaizen focus on two very different businesses that allows the business to know what kind of questions the senior leaders are gonna ask, right?
Mm-hmm.
It also allows the senior leaders to effectively lead across very diverse end markets. The Verra Mobility operating system has done a lot for us in terms of culture and clarity and accountability within the company. It's been really well-received.
Thank you. If you could talk about what other key elements of your talent strategies, and how do you maintain consistency and accountability across your business segments? It's more about the talent strategy.
Yeah, that's a great question. Human resources is centralized. We have a very formal twice-a-year evaluations. We have goal setting, and that goal setting is permeated throughout the company. I also mentioned our engagement score that we track. We do this on a biannual basis. That means twice a year, right?
Mm-hmm.
Not every two years. I'm just making sure.
Yeah.
I get that. I'm a finance guy, not an English guy, right? Okay. Twice a year we do that. What's really important about that is we've used the same vendor and the same survey. We changed the questions, but the same format for three or four years now. We can start to track our progress. The way that works is once those are done, it's not like, you know, the executive leadership of the company gets in a room and says, "Okay, that's interesting. Now on to ne-" No, no. What we do is we say we roll it up for each of the leaders in the company. Each of the leaders are accountable to go back to their team saying, "Here's what I heard.
Here's what we're gonna do." That's really, really important, and that over time gains buy-in. The other piece, I wanna go back to the Verra Mobility operating system. When you have a common operating system across the company, it provides clarity.
Mm-hmm.
It provides clarity as to what folks are accountable for and how those problems get solved. I think that does two things. Number one, it clarifies expectations for the team, but it allows for feedback, right? You can easily take someone who's struggling and put them somewhere else in the company and say, "Look, learn from this." We found that to really help us in identifying top talent in the company and promoting that top talent.
Mm-hmm. Thank you, Craig. Very helpful. Talking about growth strategies. Verra's strategy leverage its leading positions as we talk about commercial services, government solutions, and parking solutions. What other major drivers to drive sustained revenue and margin expansions for each segment? Let's start it from commercial solutions.
Yeah. All right. At first of all, across all three of our businesses, volume leverage is a big thing. Here, here's why I say that. Our businesses scale very, very well, right? Especially, I think that's probably historically most evident on the commercial side of the house, but you're starting to see that as well, as we continue to ramp up on the government side of the house. I think on the government side of the house, the other thing that's gonna continue to be a tailwind for the company is the expanding end markets, right? I see that same thing in parking solutions. I really like our competitive position in universities and in small and medium cities 'cause there's a lot of white space in both of those.
As I think about what is going to be that kinda next thing, I think volume leverage is always going to be a tailwind for the company in terms of profitability. I think as long as the businesses are growing, obviously, right? I also think that the expanding market that we're seeing in government solutions and in parking solutions is gonna be a tailwind for some time. I think the final piece is innovation and opening new markets. Right? We've talked about that on the commercial side of the house with our connected vehicle strategy. I think we'll probably talk about that a little bit later, but it is those three pillars.
Mm-hmm. Thank you. If you could talk about the scales, volume leverage, like could you talk about the new contracts like New York City and Hawaii, how it's actually impacting your business for the medium long term?
Yeah, sure. I'll start with New York City. New York City is a bit of a different animal, so you know, our CEO always says there's only one New York, right? When you think about that, it's on average, I mean, 10x or larger than our second largest contract. It's the biggest customer in the company, by far. Let me talk about what's going on there. New York City has been the largest deployment of photo enforcement technology, as far as I know in the history of it, of the planet, and it's been sole source through Verra Mobility since inception, and they started their journey a long time ago.
Where we look at ourselves in this journey today is New York City has renewed their contract. It's a billion-dollar contract, $998 million to be exact, for the next five years, then there's an option to renew from five years from there. When you think about that billion-dollar contract, obviously a very huge deal, extremely excited at Verra Mobility for this. I'm gonna talk about two things I wanna make sure are clear about this. Number one is we think about the margin percent of the new New York City contract. It is still materially accretive to the rest of the government solutions business. I wanna start with that.
Mm-hmm.
Right? This is an excellent contract for us. When we compare this to the other, the older contract, it has taken a bit of a step back, and let me talk about why that is, and I'm gonna do that at the EBITDA dollars level, Tomo Sano, right, so we're all clear on that. If I think about the new contract versus the old contract, we've added a lot of scope. We have the expansion of about 1,000 cameras in New York, which is an enormous expansion. That's margin dollars into the contract with the new installs. We've added some new use cases we didn't do before. That's margin dollars into the contract.
We have some stuff that we used to do, call it at break even, that now we do at margin, so that would be more margin dollars into the contract.
Mm-hmm.
We had to price what I'll call price realization, right? The way that we thought about this is the contract is now out in the market. We had an out-of-market price before because it was an older contract. Now it's a newer contract. There's been some price realization, price rationalization, from the old to the new contract. If I take the EBITDA dollars I've covered so far, we'd be slightly EBITDA dollar accretive, okay? Now we have the minority and women-owned businesses, which we've talked about at length, which brings it to EBITDA dollars down versus the old contract. Essentially the way that is, New York has been very consistent on this. Over 30% of the dollars that New York pays on this contract need to be spent within the five boroughs at minority and women-owned businesses.
Now, the way you think about that for Verra Mobility are things that we used to do with our own employees, we're now paying a third-party margin to do.
Right.
That causes the investment. If you think about the new contract versus the old contract, there's an EBITDA dollar step back. If you think about it in terms of growth for the company and optionality for the company, again, EBITDA percent accretive to the rest of the GS business, materially EBITDA percent accretive, and the largest example case on the planet. Great contract for Verra to have. That's how I think about-
Yep. Thank you very much.
You bet.
If you could talk about how you see the balance evolving between core tolling, enforcement, and parking solutions, what are the most important growth opportunities in the next three to five years?
Yeah, sure. I mean, if I think about the commercial business or the tolling business, you know, the way that this business grows is a third, a third, a third. I get this question a lot. Let me tell you the shape of the question, Tomo Sano, is, you know, whether we look historically and we've had years where travel's strong and this has been a high single-digit grower. If I think about it today, it probably feels more like a mid-single-digit grower for the next couple years.
Mm-hmm.
Well, if you already have the majority of the rental car customers in the United States, how do you grow? What are you growing, right? Here's the way to think about it. 1/3 of it comes from travel growth.
Mm-hmm.
I expect travel growth to be 1%-ish or so this year. It's been a little higher in previous years. The second third is what we call secular tailwinds. We still do not have 100% cashless roads in the United States. They're probably only around 70%. As that goes more cashless, the uptake on our product goes up. That's one. The second thing is we add toll roads in the United States every year. The addition of toll roads and the continued penetration of cashless is the secular tailwinds, which is the second of my third, a third. My final third are traditional growth initiatives. This is the growth of our fleet business. This is the growth in Europe. When you think about commercial services, I think it's a third.
The back one third of that are how do we continue to expand our footprint in Europe and how do we continue to expand with fleets here in the United States particularly? That's commercial.
Mm-hmm.
For government solutions, we continue to see. I don't wanna use an inflammatory word, but an expansion, a really strong expansion in the adoption of photo enforcement technology. The way I would think about this, we closed the year with 63 or 64, Mark? Thank you. $64 million of trailing 12-month ARR that we added. Now, this is a business that's less than half a billion dollars. If you look at adding that much ARR, which will annualize into revenue in 12-18 months, you start to get a sense of why we're so excited about the growth.
If you think about the near term TAM that we've expanded in the company over the last, you know, 18-24 months, it's been about $350 million, right? As I think about the adoption of photo enforcement technology, and I wanna be clear on this, particularly what we call purpose-built photo enforcement technology. What I mean by that, Tomo, is if you looked at photo enforcement technology 15 years ago, it was a red light industry.
Mm-hmm.
Red light is still an expanding part of the business, very important. We love that product. We love what it does for our customers. If you look at the other piece that's grown even faster than red light, it's been stuff that protects precious cargo, so that's stuff in bus lanes, that school bus stop arm, that school zone speed, right? You've seen some growth there. To get back to your question, where do I see the growth in government solutions? As I see it across on all fronts.
Mm-hmm
expanding in the technology. One other fact on that, when we did our investor day back in 2022, in the summer of 2022, there were about 20 states that had one form, at least one form of photo enforcement.
Mm-hmm.
That number now is more like 40. A question I get on that is, "Oh, oh, okay, so is the growth done if it's up to 40?" Absolutely not. That's only one form. If you look at those 40 states, how do you incent the states or help the states, you know, adopt more forms, then how do you expand those programs? That's how the business has grown traditionally. Finally on parking solutions, where I get excited here, I just like our position, right? We're the leader with universities. A lot of the competition here is about going to a university that doesn't have a solution today and saying that, you know, showing the efficacy of our solution. There's a competitive aspect too, a lot of white space.
Same thing with the medium-sized municipalities for that business. That's how we think about it.
Thank you.
Probably more than you wanted, but.
That's great. Thank you very much. If you could talk about how, like, do you plan to further unlock the value from your technology platforms?
Yeah
S uch as, Mosaic and SaaS, transition, please?
Sure. Yeah, perfect. Let's talk about Mosaic specifically. If we think about Mosaic, by the way, what is it and where does it point to? This is in our government solutions business, and what this is this takes our historic operating footprint where we had three or more legacy systems and consolidates them to a much smaller number of systems. What that system does, think about it kind of like the ERP for photo enforcement, right? This will be the system that you bring to the customers that helps all the cameras talk to the city and helps it, you know, issue citations, sometimes print and mail if that needs to be done. It's basically the inner workings of a photo enforcement system.
As I think about that, let's think about it in terms of the margin % of the government solutions business, 'cause I think that gets to your question of how does it impact it.
Mm-hmm.
We closed last year, GS's margins were in the mid-20s%. I think 26%. Don't quote me on that, but it should be pretty close. We're gonna step back here in 2026 to the low 20s%. Big reason for that is we're ramping up with New York City, and now we have the new New York City contract. We expect the GS business to grow to get to the mid- to high 20s% again by the time we get to 2028, and the main path between those two things is the Mosaic project.
Mm-hmm.
What the Mosaic project's gonna allow us to do, again, to consolidate those systems, which we're gonna be able to have less folks working on those systems. We're gonna move some stuff that's on-prem today to the cloud to be much more efficient with, like you'd imagine, the amount of data that we have in video. The one thing that I'm really excited about is if you look at how quick our government solutions business has grown, we're using a lot of resources that are engineering resources to work on installations because we're growing so quickly. A more common architecture will allow us to repurpose that highly skilled engineering talent to thinking about the problem of the future, not just installing the deal that we just won. I'm really excited about what kind of value that can unlock for the company.
That's what I think Mosaic is probably the largest one. Really quickly on T2.
Mm-hmm.
Our evolution in SaaS, if you think about the T2 market or you think about the parking market, for a long time, a university or hospital, it was a swing arm that you go in, you put in money or a ticket, and the swing arm goes up, and then it comes back down, or you go and you pay at a parking meter. That is rapidly moving towards an equipment-free or an asset-light deployment. You know, I think when you look in the university space, you also tack on the fact that you have young folks that are early adopters of that technology. That trend is a great trend for Verra Mobility. That allows us to move from a historically SaaS or equipment-enabled SaaS business to a true SaaS business.
That progression is gonna take time, but we have the products and we know how to sell and design those products in the company, so we're excited about that transition.
Mm-hmm. Thank you, Craig. If you talk about the government solutions, how do you see the regulatory landscape evolving? This is something topical. The themes and what are the most important opportunities and risks?
Yeah. Well, I think the one fact that I gave you about, you know, 20 states to 40 states, the expansion that we've seen in the adoption of this technology across state lines, across political lines in the last, you know, three years has been larger growth than we've seen in the preceding 10. So I'm very bullish on that. What was the other part of the question, Tomo? Sorry.
Yeah. Like, the most opportunities in Brazil.
Yeah. Okay. Let me stay on the opportunity side. I think California is probably the biggest opportunity today. A couple things going on there. The first is about a year and a half ago or so maybe within six months of a year and a half ago. California launched a speed pilot.
Mm-hmm.
Right? They did that with six cities. So far they've awarded five of those cities, and Verra Mobility's won all five. To the degree that that then goes statewide, that would be $150 million or so opportunity, and we feel like we're in a very good position to capitalize on some of that. I think the other part in California, if you happened to catch this in our Q3 earnings call, we talked about a regulatory change in red light camera. California historically, and we provide red light camera service to a lot of cities in California today. Historically, this had been what was called driver liability. What that means is you need two cameras.
You would have a camera take a picture of the car and take a picture of the driver, and then that would go to the court system, and the court system would adjudicate that historically as, you know, a criminal offense with fines north of $1,000. Because of that, it was very difficult for the cities of California to kinda get behind that legislation, and it really wasn't enforced as much.
Mm-hmm.
They changed that in the third quarter of last year to be owner liability, which is like it is a lot other places in the country where it's simply a photograph of the license plate. Now the violation is a civil matter. It doesn't go to the criminal courts. It's a lower fine. Because of that, we expect a reinvigoration of red light camera enforcement in California, and that is gonna be somewhere between $100 million-$140 million of opportunity to the company. Those two things that we just talked about are not generating incremental revenue just yet but came to be in the last, you know, last year or two at the most.
I'm really excited about the trend of this technology, the adoption of this technology, and our position in the market to be able to capitalize on it.
Thank you. Craig, if you could talk about the rental car, you know, one of your biggest, like four big companies.
Yeah.
When they think about the digitizing their older platform.
Mm-hmm
how you actually ensure you're operating your, you know, Verra operating business model
Mm-hmm
Like, to help them.
Sure.
Versus being replaced by their, like, in-house capabilities.
Yeah. You know, this is, we've worked with each of the rental car companies for 10+ years. We're very closely integrated with the teams. You can imagine, we're actually integrated with their operating systems because the problem that Verra Mobility solves-
Mm-hmm
Is when the owner and the driver of the car are different. Think about that in a tolling transaction, right? If you're in a rental car, and you go underneath a cashless toll gantry, how does that tolling authority know that the person driving the car is not, you know, the rental car company? They don't, right? That's where we come in and I think because of the fact that we need to be so real time
Mm-hmm
We're always with the customer, and we have very deep relationships to make sure that we're. Yeah, go back to the whole reason we exist. We make transportation smarter, safer, and more connected, and we serve our customers at their highest point of need. Serving the customer at the highest point of need make sure I'm creating value for that customer every day.
Thank you. Capital allocations, and I would open up the questions. Capital allocations, thank you for highlighting at the beginning.
Sure.
With leverage declining, strong free cash flow, again, like how do you prioritize organic investment versus M&A, share repurchase like going forward?
Yeah. One thing I always like to say is I can't tell you what I'm gonna do in the next 60 days, but I'm gonna tell you exactly how I'm gonna think about it. This is exactly how we think about it. We common size cash flows at the company, okay?
Mm-hmm.
There are four things we can do with our cash, maybe five arguably. One of them is a dividend. We're not gonna pay a dividend, so if you're looking for a dividend, you're in the wrong room.
Mm-hmm.
Right? You go into buying back shares, doing M&A or paying down your debt. Let me explain really simply how we evaluate that. I have a Term Loan B, covenant light. I could pay it at my option. I know what my interest rate is, and I know what my tax rate is. If the tax affect my interest rate, that's return number one to a stakeholder in the company. Return number two, I keep a very live view of the intrinsic value of the company versus the screen, right? We're a cash generative company, so I have the ability to buy back shares, have a supportive board on that as well.
I look at the return of the intrinsic value of the company versus what we're seeing on the screen. That's number two. The third thing is on M&A, and this is where you could have, it's not pure math. There's some strategy that comes into here. How we buy companies, typically, we are a DCF buyer, right? I don't have the scale to do pre-revenue, pre-money usually. And I discount net of any synergies or dis-synergies, whatever the case would be, I discount the cash flows of that acquisition by either my WACC or the match funded deal cost, whichever one is higher.
Mm-hmm.
I compare those three things, and I pick the one that has the highest number, right? I think if you look back over the wheel that we covered up front, you can see that changes. Given the strong free cash flow generation of the company, David, the CEO, and I make this decision every 60-90 days. We don't typically run with a lot of cash on the balance sheet.
Mm-hmm.
That's how we think about it. It's the same answer I would've given you a year ago. It's the same answer I'll give you a year from today.
Yeah. Thank you very much. I'll open up the questions if anybody ask the questions. Good. Okay. Moving forward, the underappreciations. It's been a challenging year to date.
It has.
Craig, I have to say. Like, are there aspects from, like, your perspective such as recurring revenue model, technology platform, strong cash flow, global reach, that you believe are underappreciated by investors?
I think that was a great list, Tomo. I maybe have a few to add. I wouldn't take anything off.
Yes.
Look, in all honesty, I do think it's a great list. Here's how I think about that. We do prioritize recurring revenue at the company. You know, we talked about 94% of our revenue in our service revenue. The overwhelming majority of that is recurring revenue. I love our position in the markets. I love the end markets that we operate in. You know, I'll continually point to the government, the government solutions business. Photo enforcement is, it is a market we've been in since the late 1980s.
Mm-hmm.
I think I said it to you. One thing I like to tell people when they come to our office, which is in Mesa, Arizona, is the founder of our company installed the first red light camera in North America about a mile from where our headquarters is today in 1987. That location is still active, right? We've seen the evolution of this industry, and we've got some folks in the business that have been there. Our CEO is a great example. He's been with the company over 12 years, right? He actually in one iteration ran that business early before he was the CEO.
His market perspective on this is, you know, I've seen more growth in the adoption of this technology in the last several years than I have in the preceding ten. I wanna go back to why that is, Tomo. When I really get excited about this business, I wanna talk about why that is.
Mm-hmm.
It's a big reason why I joined Verra Mobility. One thing you may not know, my father was a police officer. He was chief of police in our hometown. I remember photo enforcement in the nineties when it was a thing that, you know, uh-oh, that's gonna take jobs away from cops. Very different. It's a very different environment. When you look at where we are today, in terms of policing in the United States, I think a lot of police departments view this as a force multiplier, not as a. That's why it's gained so much. That's one of the reasons why it's gained such a nice groundswell.
The way I think about that, these are my words, not the police agency's words, but would you rather have a police officer standing with a radar gun or have them out doing a felony follow-up? This allows the force multiplier aspect of it. I think the second thing is, and this is really intentional, on the part of the company, so we have 70% of the market in the United States. We're very proud of that. There's been a large focus on purpose-built technology over and above what was historically just photo enforcement, which you may think of as a red light camera. Again, that's still a very important piece of the company. When you talk about protecting precious cargo, we see a lot of growth in school zones.
We see a lot of growth on school bus stop arms. I believe it's still on our website. If you go and look at some of the worst offenders, just as an adult in the United States, it'll turn your stomach when you see kids walking off a school bus and somebody going around a school bus 70 miles an hour. Look, those kind of things I think are really important. Those trends are things that we've either participated in helping to build or have certainly glommed onto that I think give us a nice sustainable growth go forward. In the commercial business, we've been in this business for a very, very long time. We love our position. We have a very close connection with our customers.
I think back to culturally too, on this business for a second, we have to think about what's next. Let's think about what's next for a second. Tolling in the United States has been a piece of plastic on the windshield or a video toll through a license plate for a long time. What will that tolling transaction look like in 10-15 years? More likely than not, it'll go through the head unit of a vehicle. When you think about that, Verra Mobility has a business stood up, and we've had it for quite some time, thinking about what that next iteration is.
Mm-hmm.
how we can help and how we can play. That helps our employees stay engaged, and it helps our customers make sure that we know we're investing on their behalf.
Thank you.
Thank you.
I'm gonna wrap it up. Thank you very much, Craig, and thank you to everyone for joining. Thank you.
Appreciate it. Thank you.