Quarterhill Reports Financial Results for Q4 and Fiscal Year 2024

Quarterhill Inc. has recently revealed its financial outcomes for the fourth quarter and the entire fiscal year of 2024. The company, a prominent player in the Intelligent Transportation Systems (ITS) sector, recorded revenues of $38.9 million for Q4 2024, with total annual revenues reaching $153.3 million. Despite facing challenges compared to the previous year, Quarterhill is optimistic about its trajectory.

Financial Highlights

In Q4 2024, the revenue fell slightly from $43.0 million when juxtaposed with the same quarter last year, while the annual figures showcased a notable uptick from $144.0 million in FY2023. Adjusted EBITDA for the quarter was reported at $1.2 million, a drop from $2.3 million in Q4 2023, and for the entire fiscal year, it stood at $0.2 million, compared to $2.9 million the year before.

The company’s revenue backlog reached a remarkable $495 million as of December 31, 2024. This backlog reflects the solid future pipeline for Quarterhill as it continues to expand its operational capabilities.

In terms of operational cash flow, Quarterhill generated $6.5 million in Q4 2024 against a loss of $4.4 million for the entire fiscal year. This is a significant improvement compared to the $32 thousand and $14 million in the previous periods, respectively.

Quarterhill not only acquired Red Fox for $4.9 million during this fiscal period but also strategically divested its 50% stake in the Chinese joint venture, Xuzhou-PAT Control Technologies Limited, generating $4.4 million in net cash proceeds.

Leadership Changes

Further strengthening its leadership structure, Quarterhill appointed Pasquale T. Deon, Sr. to its Board of Directors and brought in Robin Saunders on February 19, 2025, signaling a strategic pivot towards enhancing governance.

In an essential move, the company announced a substantial $40 million renewal contract to upgrade the I-580 express lanes under the Alameda County Transportation Commission, with potential for a subsequent four-year expansion valued at an additional $15 million.

Future Prospects and Strategy

CEO Chuck Myers emphasized the transformative efforts made during 2024 that have set a solid foundation for future endeavors. He noted the company’s aim to bolster its position as a leading player within its market while striving for growth through reliable cash flow generation. Key pieces of the strategy include improving operational efficiencies, refining the technology roadmap, and expanding the sales pipeline.

The emphasis on organic growth combined with a keen eye for acquisition opportunities underscores Quarterhill's commitment to not only maintaining but enhancing its market presence.

Myers stated, "While there is still work to do, we made important progress on each of these fronts in 2024, which positions us well for revenue growth and margin expansion in 2025."

In aligning with investor expectations, Quarterhill's management is optimistic about leveraging its strong operational assets to ensure sustained financial health and increased profitability.

Looking Ahead

To discuss the results further, Quarterhill is hosting a conference call on March 17, 2025, providing a platform for investors and analysts to engage with the leadership team. This transparency reflects the company's commitment to keeping stakeholders informed about its strategic directions and financial health.

The company remains focused on its vision to become a top-tier player in its industry, balancing organic growth with prudent acquisitions, ensuring a resilient financial future. For further information about its strategies and reports, investors and interested parties can visit Quarterhill's website.