Verra Mobility Corporation

and welcome to the Vera Mobility second quarter 2026 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, press star 1-1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker, Mr. Mark Zindler, Vice President of Investor Relations. Please go ahead.

Thank you. Good afternoon and welcome to Vera Mobility's second quarter 2026 earnings call. Today we'll be discussing the results announced in our press release issued after the market closed, along with our earnings presentation, which is available on the Investor Relations section of our website at ir.veramobility.com. With me on the call are Jon Kaiser, Vera Mobility's Interim Chief Executive Officer, and Craig Conti, our Chief Financial Officer. Jon will begin with prepared remarks, followed by Craig, and then we'll open up the call for Q&A. Management may make forward-looking statements during the call regarding future events and expectations, anticipated future trends, and the anticipated future performance of the company. We caution you that such statements are not guarantees of future performance and many more. Finally, during today's call, we'll refer to certain non-GAAP financial measures. A reconciliation of these non-GAAP measures to the most directly comparable GAAP measure is included in our earnings release and quarterly earnings presentation, both of which can be found on our website at ir.bearmobility.com. With that, I'll turn the call over to Jon.

Thanks, Mark, and good afternoon, everyone. This is my first earnings call as interim CEO of Air Mobility. I want to start by saying thank you to our shareholders. I appreciate the opportunity to speak with you today. Having served Vera Mobility in several leadership roles, I know our business, our people, and the value we provide to our customers. I also recognize the responsibility that comes with leading the company at this important moment. And my approach to leading Vera Mobility is straightforward, establish clear priorities, act decisively, communicate candidly, and deliver on our commitments. These principles have guided me throughout my career, from my service as a military officer in which I served in combat in wars in Iraq and Afghanistan. Through my extensive legal career as a mergers and acquisitions attorney enrolled at large multinational corporations, my time as Vera Mobility's chief legal officer and also leading market expansion for our government safety business via our government relations function, and my experience as Vera Mobility's chief transformation officer. My leadership has been developed and battle tested in times of crisis when the stakes are high. and although the ultimate stakes in business are clearly not the same as they are in war, some leadership principles transcend military service and leadership in business. On my first day as CEO, I set up a series of leadership principles and I discussed them with our employees. Those included integrity first, customer centricity, acting with urgency and the belief that technology, like AI, is a force multiplier. I share these principles as a guide to how our leaders will lead, how we will make decisions, and how we will hold ourselves accountable. And I'm very pleased to say that over the last few months, we have been building momentum. We've achieved great wins, and we've been putting those principles into action. So I have three immediate priorities for our company. First, we're working hard to broaden and deepen our customer relationships. Second, we're spending a lot of time realigning our cost structure and improving how we operate. And third, We're positioning Vero Mobility for future growth and long-term value creation. We've already made tangible progress against each of these priorities since I stepped into the interim CEO role at the end of May. So let me first start with customer relationships, beginning with our tolling and large fleet customers. Vero Mobility operates at the center of a complicated, multi-jurisdictional mobility ecosystem. We connect rental car companies, large fleet operators, governmental tolling authorities, and millions of drivers. We manage vehicle identification, toll transactions, violations, payments, data, and customer service across a large number of locations. And that capability has been developed over decades, and we believe it is very difficult to replicate at scale. The clearest example of our focus on customer relationships is our new agreement with Avis Budget Group. Following ABG's termination notice in May, we listened carefully to their concerns and strategic priorities, and we rapidly deployed teams from across our organization to develop a path forward. And I am pleased to report, as we said in our press release on July 28th, that we've reached an agreement with ABG on the key contractual terms for a new seven-year tolling and violation services contract, extending a relationship that had already spanned nearly two decades. I believe this is a really important outcome for Vero Mobility. It demonstrates the value of our technology for our customers and our ability to listen to our customers and adapt to their needs. and I want to say thank you to Avis Budget Group for their renewed faith in us and the new relationship we're building together, including at the most senior levels of both companies. Now, I also realize there have been many questions about the approaching expiration date from our contract with Hertz. Today, I'm also pleased to announce that we have entered into a new five-year agreement with Hertz that provides long-term visibility for both companies and establishes a strong foundation for the next phase of our relationship. Hertz is an important and long-standing customer with highly engaged and a very talented team that is modernizing, strengthening, and building Hertz's business. And I'm honored that they have chosen to extend their relationship with us. And I believe this is a vote of confidence in Vera Mobility's technology, operating capabilities, integrations and scale, as well as the work that our teams have done to develop a more flexible and customer-focused partnership. And I want to thank the senior leadership at Hertz for their collaboration and trust in Vera Mobility Thank you for joining us. We were recently selected as the automated speed safety vendor for the city of Los Angeles, California. And as we zoom out for a moment, we are negotiating and hope to finalize that contractual agreement. And once completed, I'll be proud to say that with the passage of Assembly Bill 645 in California, which authorized speed enforcement in the state, Barrel Mobility will have been selected as a technology partner for six out of the six cities that were authorized by that legislation. Rivera Mobility is honored to serve these customers and help them achieve their goals for safer, more efficient transportation and our shared mission of saving lives. As we discussed in our national Stop on Red press release on Monday, one of the most important rewarding aspects of our work is seeing the real-world impact of our technology. Across the communities we serve, we're seeing measurable improvements in driver behavior and roadway safety. Thank you for joining us. We appointed Stacey Moser as Chief Customer Officer and unified our sales, account management, and marketing leadership across our largest commercial and government businesses. This change creates a stronger, more consistent voice for the customer within Vera Mobility and allows us to identify issues earlier, respond more quickly, and bring the full breadth and capabilities of our company to every customer relationship. because to me customer centricity also requires that our leaders responsible for product and engineering operations and our unified customer facing organization be as close as possible to the CEO. So we're dramatically improving our customer centricity and that's going to be one of the primary measures of success for this new organization and our structure going forward. Over the past several months our board's transformation advisory committee has also worked with management on a review of our organization, our operating model, and strategic priorities. That work reinforced an important conclusion. While Vera Mobility has historically been organized around separate business units, we increasingly operate as one integrated mobility technology company. And doing so is a far more efficient way to operate. Our customers don't think in terms of reporting segments. They come to Vera Mobility to help solve problems related to, regardless of whatever product, technology, or service delivers the solution. Increasingly, our competitive advantage comes from a combination of our technologies, Our customer relationships and our operational capabilities and not from individual business lines. So that reality is reflected in how we are managing the company. We are confident in our continued transformation and that it will enable faster decision making, greater operational leverage, and even stronger customer experience. So after increasing our customer focus, the second major priority we identified in our leadership transition has been furthering our transformation efforts by realigning our cost structure and improving how we operate. Consistent with the leadership principle I discussed earlier, our organization acted with urgency. We completed the principal labor and certain non-labor cost takeout efforts in a rapid fashion that was made possible by the transformational work that we started months prior. This was also benefited by the interaction between management and the transformation advisory committee. These decisions are always difficult. They affected capable colleagues who made meaningful contributions to Bear Mobility And we did not take these decisions lightly, but the actions were necessary. They were necessary to help us align our organization and cost structure more closely with our current priorities, speed decision-making and accountability, and to ensure we have an organization that is poised for future growth and success. We've now moved into the next phase of the program with an increased focus on non-labor spending, third-party costs, procurement, organizational complexity, and opportunities to further improve the efficiency of our processes. and while we transform to reduce lower value and duplicative activity, we believe strongly in investing in technology, investing in product development, and investing in customer service and implementation capabilities. To me, transformation cannot be a series of isolated cost actions. It must be disciplined, sustained efforts to improve how we allocate resources, how we prioritize, and how we serve our customers and generate returns and new growth. And that's exactly what we're doing. Now I want to spend a moment on AI. In the last couple of months, our transformation has been pursuing two principal bodies of work related to AI. The first is using AI to improve how Vera Mobility operates. We are now evaluating, experimenting, and using AI that can help us accelerate software development, automate repetitive work, improve forecasting, identify operational abnormalities, and help employees analyze information more quickly. Our objective in deploying AI is not simply to deploy new technology for the sake of technology. It's to improve the speed, consistency, and quality of our work and allow our employees to spend more time on customers, complex decisions, and innovation. The second body of work is incorporating AI more deeply into the products and services that we provide. This is critical to how I see the future of Vera Mobility. Vera Mobility operates one of the largest connected transportation technology platforms in North America. Across our network, More than 28,000 intelligent edge sensors like cameras, radars, lidar, and monitoring sensors capture real-world transportation activity. We process over 230 million toll transactions and 56 million traffic events annually. We issue approximately 50 million parking permits and support these operations with more than 16,000 connected devices. So this combination of connected infrastructure and sensors, proprietary transportation data, and Mission Critical Software creates a unique foundation for AI. Unlike organizations that are just beginning to collect data, on a rolling basis, we have over 10 petabytes of transportation data and we have years of operational intelligence generated through real-world customer workflows at significant scale. Over time, we believe AI will allow us to transform this data into increasingly valuable insights. Improving image and sensor interpretation, predicting operational conditions before they occur, understanding changes in conditions, optimizing transportation and enforcement operations, automating complex decision-making, and delivering more intelligent software and edge hardware for our customers. We believe this positions Vera Mobility not only to improve the efficiency of our own operations, but also to create a new generation of AI-enabled transportation solutions that strengthen customer outcomes, improve roadway safety, increase the long-term value of our technology platform, and ultimately help save lives. Now, before I turn it over to Craig, I want to say a heartfelt thank you to our employee population. While I've been out on the road visiting and engaging with our customers, I've also been traveling to many of our sites across the U.S., meeting with all levels of employees. This has been a difficult past few months, and our employees have responded with resiliency and confidence. Their hard work and dedication energizes me, inspires me, and the rest of our executive team. And at Vera Mobility, we are one team. So with that, I'll turn the call over to Craig to discuss our second quarter financial results, our outlook, and the financial implications of the actions that we have underway. Craig?