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Item 3 — Quantitative and Qualitative Disclosures About Market Risk
Verra Mobility Corporation · 10-Q · Q2 FY2026 · Period ended Jun 30, 2026
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We are exposed to interest rate risk due to the variable interest rates on the Amended Term Loan and Amended Revolver described in Part I, Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources.
Interest rate risk represents our exposure to fluctuations in interest rates associated with the variable rate debt represented by the Amended Term Loan, which has an outstanding balance of $683.6 million at June 30, 2026, respectively. As of June 30, 2026, the interest rate on the Amended Term Loan was 5.6%.
Based on the June 30, 2026 balance outstanding, each 1% movement in interest rates will result in an approximately $6.8 million change in annual interest expense.