Via Transportation (NYSE:VIA) reported second-quarter revenue growth of 27% year over year to $136 million, as the public-transit technology company expanded its customer base and continued to narrow its adjusted EBITDA loss.
Co-Founder and CEO Daniel Ramot said the company ended the quarter with 847 customers, up 23% from a year earlier, while its pipeline of incremental growth annual contract value doubled year over year for the second consecutive quarter. Via reported adjusted EBITDA of negative $3.4 million and adjusted net loss per share of negative $0.01, which Ramot described as progress toward the company’s target of adjusted EBITDA profitability in the fourth quarter.
Pipeline Growth Led by Network Opportunities
Ramot said a growing share of the opportunity involves “network” deals, in which Via offers to manage and modernize a customer’s broader transit network rather than provide a single product such as microtransit or paratransit planning. He said these opportunities reflect several years of product development, service expansion and customer-reference building.
Management said a typical sales cycle runs about nine to 10 months, followed by an average implementation period of two to three months. As a result, Via generally begins recognizing revenue about a year after an opportunity enters its pipeline, although individual deal timelines vary.
Fain said Via’s historical growth has been driven roughly one-third by new customers and two-thirds by expansions with existing customers. The company is seeing a similar mix in its pipeline, with a somewhat higher weighting toward new customers.
Ramot cited an Alabama city that initially used Via’s microtransit solution and has since adopted the company’s full network offering. According to Ramot, the city had relied on a piecemeal set of legacy systems, faced driver shortages and had about 20% of scheduled buses fail to operate as planned. Via said its technology helped digitize driver recruitment, vetting and onboarding, while a redesigned network is intended to extend transit access to 20% of the city’s population that previously lacked access without increasing the annual budget.
Schools and AI Labs Add Growth Areas
Via also highlighted momentum in its schools transportation business, which focuses on alternative transportation for students poorly served by traditional school buses, including students in foster or shelter housing, students with complex custody arrangements and students with disabilities.
Ramot said the company expects a large number of school transportation projects to launch during the summer and fall. Fain noted that school contracts generally begin toward the end of the third quarter, creating some seasonality because new customers may contribute only one month of revenue during that quarter.
The company said its school transportation platform gives districts and families visibility into scheduled rides, pickups and drop-offs. Ramot described a Midwest school district where the platform enabled improved monitoring of trips and on-time performance.
Via is also expanding its AI Labs initiative, which provides municipal customers with AI-based tools outside traditional transit applications. Ramot said initial projects include agentic workflows for public-records requests, informed citation decisions, snow-removal optimization and automated permitting. One customer reduced the manual time spent processing public-records requests by 92%, according to the company.
Management said AI Labs remains early-stage but has shown potential for repeatable deployments across municipalities. Ramot said Via aims to build applications that can be deployed to other cities quickly while adapting to local operating requirements.
Margins Improve, Though Q3 Mix Is Expected to Normalize
Fain said the company’s annualized revenue run rate was $543 million in the second quarter. U.S. revenue, which represented 76% of total revenue, rose 35% year over year. Via ended the quarter with 114 customers generating more than $1 million in annual run-rate revenue, up 36% from a year earlier, while annualized revenue per customer reached a record $641,000.
Adjusted gross margin increased to 41% from 40% in the prior-year period, aided by a more favorable revenue mix and non-subscription revenue at the high end of its typical range. Fain said the company expects non-subscription revenue to return to a lower level within its normal range in the third quarter, with gross margin more consistent with prior quarters.
- Sales and marketing expense was 13% of revenue, compared with 14% a year earlier.
- General and administrative expense was 15% of revenue, unchanged year over year.
- Research and development expense was 16% of revenue, down from 20% a year earlier.
- Adjusted EBITDA margin improved to negative 2.5%, compared with negative 8.5% in the second quarter of 2025.
Fain said the stronger Israeli shekel increased adjusted R&D expense by about $2.2 million compared with the prior-year quarter. Via finished the quarter with $336 million of cash and no outstanding debt.
Guidance Raised for Revenue
For the third quarter, Via forecast revenue of $137.6 million to $138.2 million, representing year-over-year growth of 25.5% to 26%. It expects adjusted EBITDA of negative $4.5 million to negative $3.5 million, reflecting summer-season volume patterns and investments to launch new network and school transportation customers.
For full-year 2026, Via raised its revenue outlook to $550 million to $553 million, representing growth of 26.6% to 27.3%. The company maintained its adjusted EBITDA outlook of negative $12.5 million to negative $7.5 million and reiterated its goal of generating positive adjusted EBITDA in the fourth quarter.
Ramot said public transit agencies are facing pressure to demonstrate better outcomes and efficiency from existing budgets, while demand for affordable transportation remains high. He said Via believes its technology and service model position the company to address those needs as transit agencies reconsider legacy operating approaches.
About Via Transportation (NYSE:VIA)
Via transforms antiquated and siloed public transportation systems into smart, data-driven, and efficient digital networks. We are addressing a striking gap in the $545 billion global public transportation market. While billions of people across the globe rely on public transportation, this critical form of mobility has yet to meaningfully benefit from recent advances in technology. Buses still follow fixed routes and schedules planned years, if not decades ago, regardless of actual demand for their service.
