Verra Mobility Corporation ($VRRM)

All right. Hi, everyone. Thank you very much. And this is Tomo Sano from JPMorgan covering SMID Cap Industrials. This is Verra Mobility Corporation's sessions. And then with me, we have Craig Conti, Chief Financial Officer. Thank you very much, Craig, for joining us. So 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 boosted over 90% recurring revenue and a strong track record of technology-driven growth with the major contract wins in New York City and Hawaii, fueling the next phase of expansions. So with that, I'd like to hand it over to Craig to go through who the company is and what you do and your stories for those who may not be familiar with it. Thank you, Craig.

Yes. 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. So 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 wave, it's the financial profile. I'll go through our businesses quickly, and I'll tell you a little bit how I think about allocating capital. So 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. And 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 3% spread across the continent in Europe. So that's the top of the waves financially for the company. Let me tell you what we do. I think Tomo 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 of years, if you heard that we talked about that in our earnings call. And this is a business that operates in the mid-60s in terms of the 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 going to step back a little bit in '26, get back up to those levels in '27 and then expanding from there in '28. And 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. And then finally, Parking Solutions. And 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. And our solution is across SaaS services and hardware. So that's a little bit about Verra Mobility, each of our businesses. And then, I want to -- this is my last slide, I want to talk a little bit about our capital allocation. I think with any company, the question that you may ask is how do you allocate capital? And for Verra Mobility, I'd like to say a good indicator of how we're going to allocate capital in the future is how we've done in the past. This capital allocation, what I call the wheel, 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 is 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 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 a couple of hundred million dollars of debt, primarily over the last couple of years. And then finally, share buybacks. We've done $650 million of share buybacks since we went public. So that's a little bit about the company, our profile, what we do and how we allocate capital. And I think with that, I'll turn it over to Tomo, and let's have a conversation.

Yes. Great. Thank you, Craig. I wanted to -- yes, please.

All right. Shall we talk about the company transformation, culture and leadership perspectives, and you have evolved into a market-leading safety and smart mobility platform with a strong culture of operational discipline, innovation and customer focus. So what have you -- been the most important cultural or organizational changes driving this transformation, Craig?

Yes. How does this work? Can you hear me okay? Okay. Great. Yes. Look, Tomo, 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? And then I think a piece that's been really successful culturally is we run the company on 4 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 4 pillars, they're going to 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. So pillar 1 is do what's right, okay? The second pillar is courage over comfort. So 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. So 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.

And if you could give an example from Craig, your perspective, like to embody, like the -- one of those pillars.

Yes, sure. I think the big thing is courage over comfort. I want to talk about that one. I grew up in GE and 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. But I think that 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. So this is actually a recent change to our values when we talk about courage over comfort. So 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? And that's been really successful. But I think successful cultures sometimes need to give themselves the license to have those discussions. That's how we've done it at Verra.

Yes. Thank you for sharing. And then if you could talk about the -- how do you ensure the operational discipline, customer centricity and a people-first culture remain embedded across your global footprint?

Yes. The big thing to me is the Verra Mobility operating system. So the Verra Mobility operating system is roughly leveraged from Danaher, the Danaher Business System. But essentially, what that is, is a set of standard metrics or mechanisms that we use across the company. So if you think about Verra, and a question I get a lot, Tomo, is what do you -- why is the Government and the Commercial business together, right? Like why are they under the same umbrella? And the not really satisfying answer is the same founder invented both products. They could easily not be under the same umbrella. So how do you get commonality between those 2 things? You have a common operating system. And 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 2 very different businesses that allows the business to know what kind of questions the senior leaders are going to ask, right? And it also allows the senior leaders to effectively lead across very diverse end markets. So 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.

And then 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? So it's more about the talent structure.

Yes, that's a great question. Human resources is centralized. We do -- we have a very formal twice-a-year evaluations. We have goal setting, and that goal setting is permeated throughout the company. And I also -- I mentioned our engagement score that we track. We do this on a biannual basis. That means twice a year, right, not every 2 years, so just make sure I get that. I'm a finance guy, not an English guy, right? So -- okay, so twice a year, we do that. And 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 3 or 4 years now. So we can start to track our progress. And the way that, that works is once those are done, it's not like the executive leadership of the company gets in a room and says, okay, that's interesting, now on to next. No, 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 going to do. That's really, really important. And that over term gains buy-in. The other piece, and I want to go back to the Verra Mobility operating system, when you have a common operating system across the company, it provides clarity. It provides clarity as to what folks are accountable for and how those problems get solved. And I think that does 2 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. And we found that to be -- we found that to really help us in identifying top talent in the company and promoting that top talent.

Very helpful. So talking about growth strategies. So Verra's strategy leverage, its leading positions as you talk about Commercial Service, Government Solutions and Parking Solutions. And then, what are the major drivers to drive sustaining the revenue and margin expansions for each segment? So let's start it from Commercial Solutions.

Yes. All right. So first of all, across all 3 of our businesses, volume leverage is a big thing. And 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 going to continue to be a tailwind for the company is the expanding end markets, right? And I see that same thing in Parking Solutions. I really like our competitive position in universities and in small and medium cities because there's white space in both of those. So, as I think about what is going to be that kind of 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? And I also think that the expanding market that we're seeing in Government Solutions and in Parking Solutions is going to be a tailwind for some time. And then 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's those 3 pillars.

And 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 and long term?

Yes, sure. I'll start with New York City. So New York City is a bit of a different animal. So our CEO says there's only one New York, right? And 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. So let me talk about what's going on there. So New York City has been the largest deployment of photo enforcement technology as far as I know in the history of planet, and it's been sole sourced through Verra Mobility since inception, and they started their journey a long time ago. So where we look at ourselves in this journey today is New York City has renewed their contract, $1 billion contract, $998 million to be exact, for the next 5 years with -- then there's an option to renew from 5 years from there. So when you think about that $1 billion contract, obviously, a very huge deal, extremely excited at Verra Mobility for this. I'm going to talk -- 2 things I want to 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 want to start with that, right? So this is an excellent contract for us. But when we compare this to the other -- the older contract, it has taken a bit of a step back. Let me talk about why that is. And I'm going to do that at the EBITDA dollars level, Tomo, 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. And then, we have some stuff that we used to do, call it, at breakeven that now we do at margin. So that would be more margin dollars into the contract. Then, we had a price -- what I'll call, price realization, right? And 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. So there's been some price realization from the old to the -- price rationalization from the old to the new contract. So 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. And 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 5 boroughs of 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. That causes the investment. So 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 it.

Yes. So -- and then if you could talk about the -- how you see the balance evolving between core, tolling, enforcement and parking solutions? What are the most important growth opportunities in the next 3 to 5 years?

Yes, sure. I mean, so if I think about the commercial business or the tolling business, the way that this business grows is 1/3, 1/3, 1/3. So I get this question a lot. Let me tell you the shape of the question, Tomo, is whether we look historically, and we've had years where travel is 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 of years. 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? And here's the way to think about it. 1/3 of it comes from travel growth. I expect travel growth to be 1%-ish or so this year. It had been a little higher in previous years. The second 1/3 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. So the addition of toll roads and the continued penetration of cashless is the secular tailwinds, which is the second of my 1/3, 1/3, 1/3. And my final 1/3 are what our traditional growth initiatives. So this is the growth of our fleet business. This is the growth in Europe. So when you think about Commercial Services, I think it's 1/3, 1/3, 1/3. The back 1/3 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. For Government Solutions, we continue to see a -- I don't want to use an inflammatory word, but an expansion of a really strong expansion in the adoption of photo enforcement technology. The way I would think about this, we closed the year with $63 million or $64 million, Mark? $64 million of trailing 12-month ARR that we added. Now, this is a business that's less than $0.5 billion. So if you look at adding that much ARR, which will generalize into revenue in 12 to 18 months, you start to get a sense of why we're so excited about the growth. And if you think about the near-term TAM that we've expanded in the company over the last 18 to 24 months, it's been about $350 million, right? So as I think about the adoption of photo enforcement technology, and I want to 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. Red light is still an expanding part of the business, very important. We love that product. We love what it does for our customers. But 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? So you've seen some growth there. So if -- to get back to your question, where do I see the growth in Government Solutions as I see it across on all fronts and expanding in the technology. And one other fact on that, when we did our Investor Day back in '22, in the summer of '22, there were about 20 states that had one form -- at least one form of photo enforcement. That number now is more like 40. So a question I get on that is, okay, so is the growth done if it's up to 40? Absolutely not. That's only one form. So then, if you look at those 40 states, how do you incent the states or help the states adopt more forms, then how do you expand those programs, that's how the business has grown traditionally. And then finally, on Parking Solutions, where I get excited, I just -- I 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 showing the efficacy of our solutions. So there's a competitive aspect, too, a lot of white space. Same thing with the medium-sized municipalities for that business. So that's how I think about it, probably more than you wanted, but...

That's great. And if you could talk about the -- how -- like do you plan to further unlock the value from your technology platforms such as MOSAIC and SaaS transition, please?

Sure. Yes, perfect. So let's talk about MOSAIC specifically. So if we think about MOSAIC, by the way, what is it and where does it point to? So this is in our Government Solutions business. And what this is, is this takes our historic operating footprint where we had 3 or more legacy systems and consolidates them to a much smaller number of systems. And what that system does, think about it kind of like the ERP for photo enforcement, right? So this will be the system that you bring to the customers that helps all the cameras talk to the city and helps it issue citations, sometimes print and mail if that needs to be done. It's basically the inner workings of a photo enforcement system. And as I think about that, let's think about it in terms of the margin percent of the Government Solutions business because I think that gets to your question of how does it impact that. We closed last year. GS' margins were in the mid-20s, I think 26%, don't quote me on that, but it should be pretty close. We're going to 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 2 things is the MOSAIC project. And what the MOSAIC project is going to allow us to do, again, to consolidate those systems, which we're going to be able to have less folks working on those systems. We're going to move some stuff that's on-prem today to the cloud to be much more efficient with like you can imagine the amount of data that we have in video. And 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 re-purpose 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. So that's what I think MOSAIC is probably the largest one. Really quickly on T2, 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 a 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 in and you pay at a parking meter. That is rapidly moving towards an equipment-free or an asset-light deployment. 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 -- equipment-enabled SaaS business to a true SaaS business. That progression is going to 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.

Great. And then, 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?

Yes. Well, I think the one fact that I gave you about 20 states to 40 states, the expansion that we've seen in the adoption of this technology across state lines, across the political lines in the last 3 years has been larger growth than we've seen in the preceding 10. So I'm very, very bullish on that. What was the other part of the question, Tomo? Sorry.

Yes. So the -- like the most opportunity is in real.

Yes. Okay. Okay. So let me stay on the opportunity side. I think California is probably the biggest opportunity today. A couple of things going on there. The first is about 1.5 years ago or so, maybe within 6 months or 1.5 years ago, California launched a speed pilot, right? And they did that with 6 cities. So far, they've awarded 5 of those cities, and Verra Mobility is one of 5. To the degree that, that then goes statewide, that would be $150-or-so million 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 happen to catch this in our Q3 earnings call, we talked about a regulatory change in red light camera. California historically -- we are -- we provide red light camera service to a lot of cities in California today. Historically, this had been what was called driver liability. So what that means is you need 2 cameras. You would have a camera take a picture of the car, and it'll take a picture of the driver. And then that would go to the court system, and the court system would adjudicate that historically as a criminal offense with fines north of $1,000. Because of that, it was very difficult for the cities of California to kind of get behind that legislation, and it really wasn't enforced as much. They changed that in the third quarter of last year to be owner liability, which is like it is a lot of other places in the country, where it's simply a photograph of the license plate. And now, the violation is a civil matter. It doesn't go to the criminal court. It's a lower fine. Because of that, we expect a reinvigoration of red light camera enforcement in California, and that is going to be somewhere between $100 million and $140 million of opportunity to the company. So those 2 things that we just talked about are not generating incremental revenue just yet, but came to be in the last year or 2 at the most. That's how I get -- I'm really, 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.

And then, Craig, if you could talk about the rental car, one of your biggest, like 4 big companies, when they think about the digitalizing their older platform, and then, how you actually ensure your operating -- your Verra operating business model like to help them versus be replaced by their like in-house capabilities?

Yes. This is -- we've worked with each of the rental car companies for 10-plus 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 is when the owner and the driver of the car are different. So think about that in a tolling transaction, right? So if you're in a rental car and you go underneath a cashless toll gantry, how is -- how does that tolling authority know that the person driving the car is not the rental car company? They don't, right? So that's where we come in. And I think because of the fact that we need to be so real-time, we're always with the customer, and we have very deep relationships to make sure that we -- I 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.

So capital allocations, and I would open up for questions. Capital allocations, thank you for highlighting at the beginning, with leverage declining, strong free cash flow, again, like how do you prioritize organic investment, bolt-on M&A, share repurchase, like going forward?

Yes. One thing I would like to say is I can't tell you what I'm going to do in the next 60 days, but I'm going to tell you exactly how I'm going to think about it. It's exactly how we think about it. We common size cash flows at the company, okay? There are 4 things we can do with our cash, maybe 5 arguably. One of them is a dividend. We're not going to pay dividend. So if you're looking for a dividend, you're in the wrong room, right? So then, you go into buying back shares, doing M&A or paying down your debt. So let me explain real simply how we evaluate that. So I have a Term Loan B, covenant-lite. I can pay it at my option. I know what my interest rate is, and I know what my tax rate is, so the tax affect my interest rate, that's return #1 to a stakeholder in the company. Return #2, I keep a very live view of the intrinsic value of the company versus the screen, right? And then, we're a cash-generative company. So I have the ability to buy back shares. I have a supportive Board on that as well. So I look at the return of the intrinsic value of the company versus what we're seeing on the screen. That's number two. And then, 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. But 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 may be, is I discount the cash flows of that acquisition by either my WACC or the match-funded deal cost, whichever one is higher. And then, I compare those 3 things. And I pick the one that has the highest number, right? And I think if you look back over the wheel that we covered upfront, you can see that, that changes. Given the strong free cash flow generation of the company, David, the CEO, and I make this decision every 60 to 90 days. We don't typically run with a lot of cash on the balance sheet. That's how we think about it. It's the same answer I would have given you a year ago. It's the same answer I'll give you a year from today.

Yes. So I'll open up for questions if anyone can ask questions. Good. Okay. Moving forward, the underappreciation, it's been a challenging year-to-date, Craig, I have to say. But 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?

And I think that was a great list, Tomo. Maybe I have a few to add. I wouldn't take anything off. No. But look, in all honesty, I do think it's a great list. But here's how I think about that. We do prioritize recurring revenue at the company. And we talked about 94% of our revenue in service revenue. The overwhelming majority of that is recurring revenue. I love the -- I love our position in the markets. I love the end markets that we operate in. I'll continually point to the Government Solutions business. Photo enforcement is a market we've been in since the last -- since the late 1980s. One thing I like -- 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, and that location is still active, right? So 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? And he actually, in one iteration, ran that business early before he was the CEO. So his market perspective on this is I have never -- I've seen more growth in the adoption of this technology in the last several years than I have in the preceding 10. And I want to go back to why that is, Tomo. So when I really get excited about this business, I want to talk about why that is. And it's a big reason why I joined Verra Mobility. So one thing you may not know, my father was a police officer. He was chief police in our hometown. I remember photo enforcement in the '90s, when it was a thing that, oh, oh, that's going to 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 -- and that's why it's gained so much. That's one of the reasons why it's gained such a nice groundswell. And the way I think about that, these are my words, not the police agencies' 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. And 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 you may think of as a red light camera. Again, that's still a very important piece of the company. But 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 will turn your stomach when you see kids in a -- walking off a school bus and somebody going around school bus 70 miles an hour. So those kind of things, I think, are really important. Those trends are things that we've either participated in helping to build or certainly have glommed on to 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. And I think back to culturally, too, on this business for a second, we have to think about what's next. So 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 to 15 years? More likely than not, it will go through the head unit of a vehicle. So 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, 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.

I'm going to wrap it up. Thank you very much, Craig, and thank you for everyone to join. Thank you.

Appreciate it. Thank you.