Quarterhill (TSE:QTRH) Releases Earnings Results

Quarterhill (TSE:QTRH) issued its quarterly earnings data on Thursday. The company reported C($0.07) EPS for the quarter, FiscalAI reports. The firm had revenue of C$60.40 million during 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 Up 2.6%

TSE:QTRH opened at C$3.10 on Friday. The company has a market cap of C$371.94 million, a price-to-earnings ratio of -7.00, a price-to-earnings-growth ratio of 0.46 and a beta of 0.09. Quarterhill has a twelve month low of C$0.89 and a twelve month high of C$3.33. 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 stock has a fifty day simple moving average of C$2.41 and a 200-day simple moving average of C$1.69.

Insider Activity

In related news, Director Iii Burland Bland East acquired 17,000 shares of the firm’s stock in a transaction that occurred on Wednesday, May 27th. The stock was bought at an average price of C$1.84 per share, for a total transaction of C$31,280.00. Following the acquisition, the director directly owned 154,500 shares of the company’s stock, valued at C$284,280. This represents a 12.36% increase in their position. Also, Director Stephen A. Smith bought 13,000 shares of the company’s stock in a transaction on Friday, August 14th. The stock was bought at an average price of C$3.04 per share, for a total transaction of C$39,520.00. Following the completion of the purchase, the director directly owned 30,000 shares in the company, valued at approximately C$91,200. This represents a 76.47% increase in their ownership of the stock. Company insiders own 1.72% of the company’s stock.

Analysts Set New Price Targets

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

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.