Sometimes legislation doesn't just change the rules—it wipes out your business model entirely. That's what just happened to Verra Mobility Corporation (VRRM) in Ontario, where provincial lawmakers decided automated speed cameras had to go.

The company announced it's withdrawing from Ontario after the province enacted a ban on automated speed enforcement cameras. The law took effect November 14, immediately halting the use of speed cameras that Verra Mobility had been operating across multiple municipalities. The company says it's complying with the new requirements and beginning the process of shutting down its systems throughout the region.

Executive Vice President Jon Baldwin expressed disappointment with the decision, noting that the speed camera program had broad support from drivers themselves. He pointed to research from SickKids and Toronto Metropolitan University demonstrating that school-zone speed cameras significantly reduced excessive speeding. Still, when the law says you're done, you're done. Verra Mobility says its focus now is working with local partners to safely wind down operations.

The Revenue Hit

The Ontario exit will slice roughly $7 million from Verra Mobility's annual revenue. That's not a catastrophic blow, but it's not nothing either. The company noted that this impact was already factored into the preliminary 2026 guidance it shared during its late-October earnings call, so investors shouldn't expect any revisions to the forecast.

While Ontario is moving away from automated enforcement, Verra Mobility isn't sitting still. The company recently rolled out AutoKinex, a new in-vehicle payments platform aimed at making transactions smoother for drivers. It's part of a broader strategy to diversify beyond traffic enforcement—a smart move when provincial governments can eliminate entire revenue streams with a single vote.

Price Action: VRRM shares fell 4.92% to close at $20.86 on Thursday.