Quarterhill (TSE:QTRH) Posts Earnings Results

Quarterhill (TSE:QTRH) released its earnings results on Thursday. The company reported C($0.07) EPS for the quarter, FiscalAI reports. The business had revenue of C$60.40 million for the quarter. Quarterhill had a negative net margin of 33.64% and a negative return on equity of 50.09%.

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

• Profitability improved sharply in Q2, with adjusted EBITDA rising to $4.6 million, or 11% of revenue, from a $2.7 million loss a year earlier. Cash generated from operations was $5.7 million, supported by stronger gross margins and disciplined working capital management.
• Quarterhill reported a $415 million backlog, approximately $2.1 million in new international orders, and several notable customer wins, including a $5.25 million Oklahoma commercial vehicle screening project. Management continues to estimate an industry opportunity pipeline above $2 billion.
• The pending $70 million cash-and-stock acquisition of Conduent’s tolling solutions business is expected to approximately triple Quarterhill’s tolling revenue and create a combined platform with more than $400 million in annual revenue and a 10%–15% adjusted EBITDA margin after synergies.
• Management expects the Conduent transaction to close in Q4 2026 and said integration planning, lender discussions, and surety-provider discussions remain on track, though detailed synergy figures and staffing requirements have not yet been finalized.
• The acquisition will be funded partly with debt and shares representing 7% of Quarterhill’s outstanding stock, creating additional leverage and shareholder dilution; the transaction also remains subject to closing and complex contract-by-contract carve-out integration.

Quarterhill Price Performance

TSE:QTRH traded up C$0.03 during mid-day trading on Friday, reaching C$3.05. 95,730 shares of the stock were exchanged, compared to its average volume of 225,363. The firm has a market capitalization of C$365.94 million, a PE ratio of -6.88, a PEG ratio of 0.46 and a beta of 0.09. The company has a current ratio of 0.94, a quick ratio of 2.58 and a debt-to-equity ratio of 72.54. The business has a fifty day moving average price of C$2.38 and a 200 day moving average price of C$1.68. Quarterhill has a 1-year low of C$0.89 and a 1-year high of C$3.33.

Analysts Set New Price Targets

Separately, ATB Cormark Capital Markets raised shares of Quarterhill from an “outperform” rating to a “top pick” rating and boosted their target price for the stock from C$4.40 to C$5.00 in a research report on Wednesday, July 29th. One investment analyst has rated the stock with a Strong Buy rating, Based on data from MarketBeat, the stock has a consensus rating of “Strong Buy” and an average target price of C$5.00.

Insiders Place Their Bets

In related news, Director Iii Burland Bland East bought 17,000 shares of the business’s stock in a transaction on Wednesday, May 27th. The shares were bought at an average cost of C$1.84 per share, for a total transaction of C$31,280.00. Following the completion of the acquisition, the director directly owned 154,500 shares in the company, valued at approximately C$284,280. This represents a 12.36% increase in their ownership of the stock. 1.72% of the stock is currently owned by company insiders.

Quarterhill Company Profile

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.