Quarterhill (TSE:QTRH) Announces Earnings Results

Quarterhill (TSE:QTRH) posted its quarterly earnings data 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 return on equity of 50.09% and a negative net margin of 33.64%.

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 Stock Down 4.3%

Shares of QTRH traded down C$0.14 during trading hours on Thursday, hitting C$3.08. The company had a trading volume of 178,170 shares, compared to its average volume of 224,977. The stock has a market capitalization of C$369.54 million, a price-to-earnings ratio of -6.95, a P/E/G ratio of 0.46 and a beta of 0.09. The firm has a fifty day moving average price of C$2.36 and a 200-day moving average price of C$1.67. Quarterhill has a 52-week low of C$0.89 and a 52-week high of C$3.33. The company has a debt-to-equity ratio of 72.54, a quick ratio of 2.58 and a current ratio of 0.94.

Wall Street Analyst Weigh In

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

Insiders Place Their Bets

In other news, Director Iii Burland Bland East acquired 17,000 shares of Quarterhill stock in a transaction on Wednesday, May 27th. The stock was acquired at an average cost of C$1.84 per share, for a total transaction of C$31,280.00. Following the purchase, the director owned 154,500 shares in the company, valued at C$284,280. This trade represents a 12.36% increase in their ownership of the stock. Corporate insiders own 1.72% of the company’s stock.

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.