#Canada #Toronto #Quarterhill #Intelligent Transportation #QTRH

Quarterhill's Q3 2025 Financial Results Overview

Quarterhill Inc., a prominent entity in Intelligent Transportation Systems (ITS), has made waves with its financial results for the third quarter of 2025. The company, which trades under the symbols QTRH on TSX and QTRHF on OTCQX, announced figures on November 6, 2025, revealing significant enhancements in profitability and overall operational efficiency.

Key Financial Metrics

The financial report highlighted a robust increase in revenue, with Q3 2025 generating $39.7 million, a commendable rise from $38.0 million in the corresponding quarter of 2024. One of the standout features of this quarter was a drastic improvement in gross margins, moving up to 26% from just 13% in Q3 2024, showcasing Quarterhill’s commitment to enhancing its profitability through better project execution and disciplined cost management.

Adjusted EBITDA for the quarter also marked a pivotal turnaround, reaching $1.4 million compared to a loss of $2.8 million in the same quarter last year. This marked Quarterhill's first positive adjusted EBITDA quarter since Q4 2024, indicating effective execution of its turnaround strategy that has been in play.

Cash Flow and Balance Sheet Health

The company demonstrated a noteworthy operational cash flow generation capability, reporting $6.4 million in cash generated from operations, a substantial improvement compared to the cash used in operations amounting to $1.7 million a year earlier. Quarterhill ended the quarter with $24.1 million in cash and cash equivalents, positioning the company favorably for future investments and strategic moves.

Business Unit Performance

The Safety Enforcement unit emerged as one of the key performers, delivering gross margins that exceeded 40%. Investments in this area have led to improved contract terms and continue to support the company’s expansion goals. The Tolling business unit is also reaping the benefits of recent restructuring initiatives, netting the company enhanced revenue streams moving forward.

Chuck Myers, the CEO of Quarterhill, articulated the company’s progress by noting, “Q3 marks an important inflection point for Quarterhill. We're beginning to see the results of our turnaround take hold, reflected in significant margin expansion, positive Adjusted EBITDA, and strong cash generation.” He emphasized the strategic importance of the company’s $427 million revenue backlog and a robust $2 billion pipeline, which are expected to drive future growth.

Future Outlook

The restructuring actions rolled out in July 2025 are anticipated to yield annualized savings of approximately $12 million, further enhancing the company’s financial position. With a clear focus on accelerating growth and optimizing profitability, Quarterhill is well-positioned to capitalize on its advancements in the ITS space. The company remains committed to integrating advanced technologies, aiming to further strengthen its presence in the transport management sector.

Quarterhill will continue to provide transparent updates on its growth strategies and operational performance, with the next investor conference scheduled post-results release, aiming to engage with stakeholders and clarify the trajectory of their planned advancements.

For more insights on Quarterhill’s financial standing and strategic direction, please visit their official website www.quarterhill.com.