Quarterhill (QTRH) investor relations material

Executive summary

• Achieved stabilization and improved execution discipline, returning to sustainable profitability in 2025, with continued progress on multi-year transformation and scaling of AI-driven intelligent transportation platform.

• Focused on scaling the business, expanding margins, and leveraging AI-enabled technology solutions amid strong demand for modernization of roadway infrastructure and automated enforcement.

• Operational turnaround included cost restructuring, improved tolling program economics, disciplined bidding, and enhanced project oversight.

• Secured major contracts and expanded international presence in tolling and weigh-in-motion (WIM) technologies.

Financial highlights

• Q4 2025 revenue was $38.5M, nearly flat year-over-year; full-year revenue grew to $155.2M from $153.3M, driven by safety and enforcement business.

• Q4 gross margin rose to 31% from 20% YoY; full-year gross margin improved to 21% from 18%.

• Q4 adjusted EBITDA was $4.4M (11% of revenue), up from $1.2M (3%) YoY; full-year adjusted EBITDA was negative $0.3M, with positive results in H2.

• Q4 net loss was ($34.5M) vs. net income of $0.3M in Q4 2024; full-year net loss widened to ($54.4M) from ($11.0M) in 2024, mainly due to a $31.4M goodwill impairment.

• Year-end cash balance was $24.8M; Q4 operating cash flow was $4.1M; full-year operating cash flow improved to $2.3M from negative $4.4M YoY.

Outlook and guidance

• Entering 2026 with a strong foundation, aiming to accelerate growth, scale the platform, and expand margins, with a focus on disciplined top-line growth and sustained Adjusted EBITDA profitability.

• Focus remains on organic growth, with selective strategic acquisitions to enhance technology and market presence.

• Expecting further margin expansion and improved scalability as new AI-driven platform is commercialized and pipeline of ITS modernization opportunities grows.