Quarterhill (TSE:QTRH) Issues Earnings Results

Quarterhill (TSE:QTRH) announced its quarterly earnings results on Monday. The company reported C($0.41) EPS for the quarter, reports. Quarterhill had a negative net margin of 39.92% and a negative return on equity of 57.40%. The company had revenue of C$50.47 million during the quarter.

Here are the key takeaways from Quarterhill’s conference call:

• Management says operational actions — cost restructuring, disciplined bidding, and strengthened project oversight — materially improved the company’s operating profile and delivered “millions” in annualized cost savings.
• Financial performance strengthened in H2 2025 with Q4 gross margin of 31%, Q4 adjusted EBITDA of $4.4 million (11% of revenue), and two consecutive quarters of positive operating cash flow.
• Quarterhill finished the year with a $404 million backlog and an opportunity pipeline of approximately $2 billion, with a growing share of recurring operations & maintenance revenue that supports margin visibility.
• The company is near commercialization of a next‑generation, AI‑enabled platform (commercial contract announcement expected soon), has increased capitalized R&D to support it, and sees the platform as a driver of future margin expansion and scalability.
• The balance sheet faces near‑term pressure — cash of $24.8 million versus upcoming maturities including a ~$14 million bank facility and ~$40 million in convertible debentures — and management is actively pursuing a refinancing solution.

Quarterhill Trading Up 4.8%

Shares of Quarterhill stock opened at C$1.10 on Wednesday. The company has a current ratio of 0.96, a quick ratio of 2.58 and a debt-to-equity ratio of 71.62. The company has a fifty day simple moving average of C$0.99 and a 200-day simple moving average of C$1.00. The stock has a market cap of C$128.80 million, a price-to-earnings ratio of -6.47, a PEG ratio of 0.46 and a beta of 0.69. Quarterhill has a 12-month low of C$0.89 and a 12-month high of C$1.66.

About Quarterhill

Quarterhill is a global leader in the Intelligent Transportation System (ITS) industry, advancing mobility through smart infrastructure solutions that reduce congestion, improve roadway safety, and create more sustainable travel. Each year, Quarterhill’s platforms process billions of transactions, perform compliance and safety inspections on millions of commercial vehicles, and enable transportation agencies worldwide to optimize thousands of lanes of traffic to improve travel for everyone. Leveraging advanced artificial intelligence and machine learning technologies, Quarterhill’s platform delivers automation and predictive insight to help agencies manage transportation networks more efficiently.