Quarterhill Announces Q3 2025 Financial Results

Rhea-AI Summary

Quarterhill (OTCQX:QTRHF) reported Q3 2025 results on November 6, 2025, showing operational improvement and stronger margins.

Key figures: Q3 revenue $39.7M, gross margin 26% (vs 13% in Q3 2024), Adjusted EBITDA $1.4M (first positive quarter since Q4 2024), cash from operations $6.4M, cash $24.1M, revenue backlog $427M. Company noted restructuring with expected annualized savings of ~$12M and made $3.1M long-term debt repayments in Q3.

Net loss was $4.7M for the quarter and $19.9M year-to-date.

Positive

• Gross margin improved to 26% from 13% year-over-year
• Adjusted EBITDA positive at $1.4M in Q3
• Operating cash generation of $6.4M in Q3
• Backlog remained robust at $427M with ~ $2B pipeline

Negative

• Net loss of $4.7M in Q3 and $19.9M YTD
• Total operating expenses increased to $13.7M in Q3
• Cash balance declined from $31.9M year-end to $24.1M

Gross Margin Expansion and Positive Adjusted EBITDA Highlight Q3 Progress

Quarterhill Demonstrates Strong Improvement in Profitability and Operational Execution

TORONTO, Nov. 6, 2025 /PRNewswire/ - Quarterhill Inc. ("Quarterhill" or the "Company") (TSX: QTRH) (OTCQX: QTRHF), a leading provider of tolling and enforcement solutions in the Intelligent Transportation System ("ITS") industry, announces its financial results for the three and nine months ended September 30, 2025. All financial information in this press release is reported in United States ("US") dollars, unless otherwise indicated.

Quarterhill delivered another quarter of significant progress in its turnaround strategy, achieving substantial gross margin expansion, positive Adjusted EBITDA and positive operating cash flow. The Company also continued to strengthen its balance sheet while advancing its multi-year plan to drive sustained profitability and margin growth across its business units.

Q3 2025 Highlights

• Revenue for Q3 2025 was $39.7 million, up from $38.0 million in Q3 2024.
• Gross margin¹ percentage for Q3 2025 improved to 26%, compared to 13% in Q3 2024.
• Cash generated from operations for Q3 2025 was $6.4 million, up significantly compared to cash used in operations of $1.7 million in Q3 2024.
• Cash and cash equivalents were $24.1 million at September 30, 2025.
• Adjusted EBITDA² for Q3 2025 was $1.4 million, an improvement compared to ($2.8) million in Q3 2024, marking the Company's first positive Adjusted EBITDA quarter since Q4 2024.
• Revenue backlog³ was $427 million at September 30, 2025.
• Restructuring announced in July expected to yield annualized savings of approximately $12 million.

"Q3 marks an important inflection point for Quarterhill," said Chuck Myers, CEO at 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. Gross margin improved to 26%, our highest level in more than two years, as we delivered better project execution, disciplined cost management and a more profitable revenue mix."

"Our Safety & Enforcement unit continues to perform exceptionally well, delivering gross margins above 40%, while our Tolling business is benefiting from restructuring actions and improved contract terms. With a robust $427 million revenue backlog³, a roughly $2 billion pipeline, and a strengthened balance sheet, we're now focused on accelerating growth and expanding profitability as we position Quarterhill as a leading, technology-driven ITS platform company."

Q3 2025 and Year-to-Date Financial Review
Quarterhill's Management's Discussion and Analysis and Financial Statements for the three and nine months ended September 30, 2025 are available at the Company's website and at its profile at SEDAR+.

Revenues for the three and nine months ended September 30, 2025, were $39.7 million and $116.7 million compared to $38.0 million and $114.4 million in the same periods last year. The increase in revenue for Q3 was due to growth in both the Company's tolling and safety and enforcement business units, while the increase for the year-to-date period was due to growth in the safety and enforcement unit.

Gross profit¹ as a value and as a percentage of revenues may be subject to significant variance in each reporting period due to the nature and type of contract and service work performed and currency volatility. Gross profit for the three and nine months ended September 30, 2025, was $10.5 million and $20.7 million, or 26% and 18%, as compared to $5.1 million and $20.0 million, or 13% and 17%, in the same periods last year. The increase for Q3 and the year-to-date period was primarily due to the restructuring, improved margins on certain tolling contracts and continued strong margin performance from the safety and enforcement unit.

Total operating expenses are comprised of selling, general and administrative costs ("SG&A"), research and development ("R&D") costs, depreciation, amortization of intangible assets and other charges. Total operating expenses for the three and nine months ended September 30, 2025, were $13.7 million and $37.8 million compared to $11.3 million and $32.5 million in the same periods last year. The increase for Q3 is primarily due to higher costs related to stock-based compensation, recruitment, technical consulting, facilities, R&D and other charges. The increase for the year-to-date period is due to similar factors, offset, in part, by a decrease in depreciation and amortization expenses and certain other charges.

Adjusted EBITDA² for the three and nine months ended September 30, 2025, was $1.4 million and ($4.7) million compared to ($2.8) million and ($0.9) million in the same periods last year. The increase in Adjusted EBITDA¹ for Q3 was primarily due to the factors impacting revenue, gross margin and expenses, as previously described.  

Net loss for the three and nine months ended September 30, 2025, was ($4.7) million and ($19.9) million, or ($0.04) and ($0.17) per diluted share, compared to net losses of ($4.1) million and ($11.3) million, or ($0.04) and ($0.10) per diluted share, in the same periods last year.

Cash generated from (used in) operations for the three and nine months ended September 30, 2025, was $6.4 million and ($1.7) million compared to cash used in operations of ($1.7) million and ($11.0) million in the same periods last year. Cash and cash equivalents were $24.1 million at September 30, 2025, compared to $22.7 million at June 30, 2025, and $31.9 million at December 31, 2024. The Company made long-term debt repayments of $3.1 million in Q3.

Conference Call and Webcast

Quarterhill will host a conference call to discuss its financial results on Thursday, November 6, 2025, at 8:30 AM Eastern Time.

Webcast Information

• Live audio webcast will be available at: https://app.webinar.net/wKbvGMAGMOY
• Webcast replay will be available at: https://app.webinar.net/wKbvGMAGMOY

Traditional Dial-in Information

• To access the call from the U.S. and Canada, dial 1.888.699.1199 (Toll Free)
• To access the call from other locations, dial 1.416.945.7677 (International)

Rapidconnect
To instantly join the conference call by phone, please use the following URL to easily register and be connected into the conference call automatically: https://emportal.ink/3L4bqmo        

Telephone Replay
Telephone replay will be available from November 6, 2025, until November 13, 2025, at: 1.888.660.6345 (Toll Free North America) or 1.289.819.1450.

Conference ID: 15004 and Replay Passcode: 15004 #

Non-IFRS Financial Measures and Non-IFRS Ratios
Quarterhill uses both IFRS and certain non-IFRS financial measures to assess performance. Non-IFRS financial measures are financial measures disclosed by a company that (a) depict historical or expected future financial performance, financial position or cash flow of a company, (b) with respect to their composition, exclude amounts that are included in, or include amounts that are excluded from, the composition of the most directly comparable financial measure disclosed in the primary financial statements of the company, (c) are not disclosed in the financial statements of the company, and (d) are not a ratio, fraction, percentage or similar representation. Non-IFRS ratios are financial measures disclosed by a company that are in the form of a ratio, fraction, percentage or similar representation that has a non-IFRS financial measure as one or more of its components, and that are not disclosed in the financial statements of the company.

These non-IFRS financial measures and non-IFRS ratios are not standardized financial measures under IFRS, and, therefore, are unlikely to be comparable to similar financial measures presented by other companies. Management believes these non-IFRS financial measures and non-IFRS ratios provide transparent and useful supplemental information to help investors evaluate our financial performance, financial condition, and liquidity using the same measures as management. These non-IFRS financial measures and non-IFRS ratios should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with IFRS.

Adjusted EBITDA - Non-IFRS Financial Measures

We use the non-IFRS financial measure "Adjusted EBITDA" to mean net loss adjusted for (i) income taxes, (ii) finance expense or income; (iii) amortization and impairment of intangibles; (iv) other charges and other one-time items; (v) depreciation of right-of-use assets and property, plant and equipment; (vi) stock-based compensation; (vii) foreign exchange (gain) loss ; (viii) other (income) expense; and (ix) changes in fair value of derivative liability. Adjusted EBITDA is used by our management to assess our normalized cash generated on a consolidated basis. Adjusted EBITDA is also a performance measure that may be used by investors to analyze the cash generated by Quarterhill. Adjusted EBITDA should not be interpreted as an alternative to net income (loss) and cash flows from operations as determined in accordance with IFRS or as measure of liquidity. The most directly comparable IFRS financial measure is net income (loss). See Reconciliation of Net Loss to Adjusted EBITDA below.

Adjusted EBITDA per share – Non-IFRS Ratio

Adjusted EBITDA per share is calculated as Adjusted EBITDA divided by the basic weighted average of common shares. Adjusted EBITDA per share is used by our management and investors to analyze cash generated by Quarterhill on a per share basis. The most comparable IFRS measure is earnings per share. See Reconciliation of Net Loss to Adjusted EBITDA below.

Backlog - Non-IFRS Financial Measure

We use the non-IFRS measure "backlog" to mean the total value of work that has not yet been completed but that in management's experience of similar situations has: (a) a high certainty of being performed pursuant to existing contracts or work orders specifying job scope, value and timing; (b) an expectation of expansion of existing contracts due to expected extensions; and/or (c) been awarded to one or more of our ITS operating subsidiaries as evidenced by a binding contract or where the finalization of a binding contract is reasonably assured. Activities under such contracts may cover a period of up to 15 years. We do not include in "backlog" the value of any expected but unsigned change orders that management considers may apply to such contracts.

Supplementary Financial Measures
Supplementary financial measures are financial measures disclosed by a company that (a) are, or are intended to be, disclosed on a periodic basis to depict the historical or expected future financial performance, financial position or cash flow of a company, (b) are not disclosed in the financial statements of the company, (c) are not non-IFRS financial measures, and (d) are not non-IFRS ratios. Key supplementary measures disclosed are as follows:

Gross margin %
Calculated as gross profit as a percentage of revenue.

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. By working in close partnership with governments, communities, and industry leaders, Quarterhill is building today's connected roadways while shaping the next generation of intelligent, resilient mobility. Quarterhill is listed on the TSX under the symbol QTRH and on the OTCQX Best Market under the symbol QTRHF. For more information: www.quarterhill.com.

Forward-looking Information
This news release contains forward-looking information and forward-looking statements within the meaning of applicable Canadian securities laws (collectively, "forward-looking statements") regarding Quarterhill, its operating subsidiaries and their respective businesses. Such forward-looking statements relate to future events, conditions or future financial performance of ‎Quarterhill based on future economic conditions and courses of action. All statements other ‎than statements of historical fact may be forward-looking statements. Such forward-looking statements ‎are often, but not always, identified by the use of any words such as "seek", "anticipate", "budget", ‎‎"plan", "goal", and similar expressions. These statements involve known and unknown risks, assumptions, ‎uncertainties and other factors that may cause actual results or events to differ materially from those ‎anticipated in such forward-looking statements. The Company believes the expectations reflected in ‎those forward-looking statements are reasonable, but no assurance can be given that these expectations ‎will prove to be correct and such forward-looking statements included in this news release should not be ‎unduly relied upon.‎ In particular, this news release contains forward-looking statements pertaining to, but not limited to, the ‎following: operational and financial expectations for the 2025 financial year, including revenue, gross margin and Adjusted EBITDA expectations; the Company's business plan and strategy, and outcomes thereof; the outcome of renegotiation efforts and mediation relating to our tolling contracts; the impact of contract renegotiation on our financial performance; the results of operational enhancements and technology investment by the Company; the anticipated cost savings from the restructuring; the Company's ability and path to achieve revenue growth, margin expansion and positive cash flow; and the impact of the Company's workforce reduction on the Company's operations, financial position and results.

‎Although the forward-looking statements contained in this news release are based upon assumptions ‎which management of the Company believes to be reasonable, the Company cannot assure investors ‎that actual results will be consistent with these forward-looking statements. With respect to forward-‎looking statements contained in this news release, the Company has made assumptions regarding, but ‎not limited to: the Company's ability to execute on its business plan; successful integration of acquisitions; general economic and industry trends; operating assumptions relating to the ‎Company's operations; demand for the Company's products and services; cost estimates for fixed price contracts; successful renegotiation of our tolling contracts on terms acceptable and favourable to the Company; and the other assumptions set forth in the ‎Company's most recent annual information form available under the Company's profile on SEDAR+ ‎at www.sedarplus.ca.‎

The Company's actual results could differ materially from those anticipated in the forward-looking ‎statements, as a result of numerous known and unknown risks and uncertainties and other factors ‎including, but not limited to: changes in demand for the Company's products and services; general economic, ‎political, market and business conditions, including fluctuations in interest rates, foreign exchange rates, ‎stock market volatility; reliance on key management personnel; risks related to competition within the Company's industry and relating to technological advances; litigation risks; cyber-security risks; fixed price contracts may result in unexpected costs to the Company; risks of health epidemics, pandemics and similar ‎outbreaks; the tolling contracts not successfully being renegotiated on terms acceptable or favourable to the Company, or at all; and the other risks set forth in the Company's most recent annual information form ‎and management's discussion and analysis for the three and twelve months ended December 31, 2024 available under the Company's profile on SEDAR+ at www.sedarplus.ca.‎

The Company's actual results, performance or achievement could differ materially from those ‎expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be ‎given that any of the events anticipated by the forward-looking statements will transpire or occur, or if ‎any of them do so, what benefits the Company will derive therefrom. Readers are therefore cautioned ‎that the foregoing lists of important factors are not exhaustive, and they should not unduly rely on the ‎forward-looking statements included in this news release. All forward-looking statements contained in this news release are expressly ‎qualified by this cautionary statement. Quarterhill has no intention, and undertakes no obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

This news release contains "future-oriented financial information" and "financial outlooks" within the meaning of applicable Canadian securities laws (collectively, "FOFI"), including about the financial results, revenue, gross margin and Adjusted EBITDA of Quarterhill for the year ended December 31, 2025. FOFI, as with forward-looking ‎statements ‎generally, are, without limitation, based on the assumptions and qualifications, and are subject to the risks set out ‎above in respect of forward-looking statements. Quarterhill's actual financial position and results of operations may differ materially from ‎management's ‎current expectations and, as a result, the Company's financial results may differ ‎materially from ‎the FOFI provided in this news release. The Company and its management believe that the FOFI has been prepared on a reasonable basis, reflecting management's best estimates and judgments and the FOFI contained in this news release was approved by management as of the date hereof, for purposes of providing further information about the Company's future business operations and results. However, because this information is subjective and subject to numerous risks and assumptions, it should not be relied on as necessarily indicative of future results. Except as required by applicable securities laws, the Company undertakes no obligation to update such FOFI. Readers are cautioned that the FOFI contained in this news release should not be used for purposes other than for which it is disclosed herein, and such information is ‎presented for ‎illustrative purposes only and may not be an indication of the Company's actual ‎financial position or ‎results of operations.‎

1,	Please refer to Gross Margin % in the Supplementary Financial Measures section for further information.
2.	Please refer to the Adjusted EBITDA Non-IFRS Financial Measures section for further information.
3.	Please refer to the Backlog - Non-IFRS Financial Measure section for further information.

Interim Condensed Consolidated Statements of Loss and Comprehensive Loss
(in thousands and in United States dollars, except share and per share amounts)

	Three months ended September 30,		Nine months ended September 30,
	2025	2024	2025	2024
Revenues	$39,743	$38,019	$116,707	$114,429
Direct cost of revenues	29,288	32,892	95,978	94,429
Gross profit	10,455	5,127	20,729	20,000
Operating expenses
Selling, general and administrative expenses	9,902	8,125	27,608	21,573
Research and development expenses	510	275	1,291	1,071
Depreciation of right-of-use assets	373	373	925	1,081
Depreciation of property, plant and equipment	369	384	1,103	1,144
Amortization of intangible assets	2,069	1,789	6,089	6,166
Other charges	483	313	807	1,468
	13,706	11,259	37,823	32,503
Results from operations	(3,251)	(6,132)	(17,094)	(12,503)
Finance income	(58)	(43)	(178)	(408)
Finance expense	1,507	1,646	4,564	5,002
Foreign exchange (gain) loss	(824)	845	2,196	(652)
Other income	(98)	(3,874)	(3,707)	(4,008)
Change in fair value of derivative liability	(29)	(499)	(519)	(1,426)
Loss before taxes	(3,749)	(4,207)	(19,450)	(11,011)
Current income tax expense	734	45	777	390
Deferred income tax expense (recovery)	251	(143)	(288)	(107)
Income tax expense (recovery)	985	(98)	489	283
Net loss	(4,734)	(4,109)	(19,939)	(11,294)
Other comprehensive loss that may be reclassified subsequently to net loss:
Foreign currency translation adjustment	(650)	974	1,856	42
Comprehensive loss	($5,384)	($3,135)	($18,083)	($11,252)
Loss per share - Basic	($0.04)	($0.04)	($0.17)	($0.10)
Loss per share - Diluted	($0.04)	($0.04)	($0.17)	($0.10)

Interim Condensed Consolidated Statements of Financial Position
(in thousands and in United States dollars)

As at	September 30, 2025	December 31, 2024
Current assets
Cash and cash equivalents	$24,085	$31,893
Accounts receivable, net	24,698	20,716
Unbilled revenue	32,939	34,461
Income taxes receivable	3	231.00
Inventories (net of obsolescence)	8,875	10,143
Prepaid expenses and deposits	4,293	4,588
	94,893	102,032
Non-current assets
Accounts and other long-term receivables	5,143	4,781
Right-of-use assets, net	4,902	5,035
Property, plant and equipment, net	3,241	3,961
Intangible assets, net	75,711	78,370
Investment in other entity	3,919	3,919
Deferred compensation asset	1,161	1,050
Goodwill	31,415	30,960
	125,492	128,076
TOTAL ASSETS	$220,385	$230,108
Liabilities
Current liabilities
Accounts payable and accrued liabilities	$30,226	$25,598
Income taxes payable	580	334
Current portion of lease liabilities	2,239	2,040
Current portion of deferred revenue	9,202	5,708
Current portion of long-term debt	13,860	2,125
Convertible debentures	39,352	36,825
Derivative liability	1	516
	95,460	73,146
Non-current liabilities
Deferred revenue	1,296	1,574
Long-term lease liabilities	3,809	4,803
Long-term debt	-	15,273
Deferred compensation liabilities	1,265	1,100
Deferred income tax liabilities	2,383	2,577
Other long-term liabilities	512	512
	9,265	25,839
TOTAL LIABILITIES	104,725	98,985
Shareholders' equity
Capital stock	315,987	314,630
Contributed surplus	128,709	127,446
Accumulated other comprehensive income	14,004	12,148
Deficit	(343,040)	(323,101)
	115,660	131,123
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$220,385	$230,108

Interim Condensed Consolidated Statements of Cash Flows
(in thousands and in United States dollars)

		Three months ended September 30,		Nine months ended September 30,
		2025	2024	2025	2024
Operating activities:
Net loss		($4,734)	($4,109)	($19,939)	($11,294)
Add (deduct) non-cash items:
Stock-based compensation expense		1,343	724	3,440	1,936
Depreciation and amortization		2,811	2,546	8,117	8,391
Foreign exchange (gain) loss		(824)	845	2,196	(652)
Other income		(98)	(3,874)	(3,500)	(4,008)
Deferred and non-cash income tax expense (recovery)		251	(143)	(288)	(107)
Embedded derivatives		25	6	(20)	12
Change in fair value of derivative liability		(29)	(499)	(519)	(1,426)
Non-cash interest expense		556	593	1,655	1,685
Net change in non-cash working capital balances		7,140	2,259	7,112	(5,501)
Cash generated from (used in) operating activities		6,441	(1,652)	(1,746)	(10,964)
Financing activities:
Payment of lease liabilities		(551)	(629)	(1,862)	(1,767)
Repayment of long-term debt		(3,062)	(531)	(3,593)	(1,594)
Cash used in financing activities		(3,613)	(1,160)	(5,455)	(3,361)
Investing activities:
Net proceeds from disposition of a joint venture		-	-	319	-
Acquisition of business, Red Fox		-	-	-	(7,181)
Cash acquired on acquisition of business, Red Fox		-	-	-	2,296
Proceeds from sale of property, plant and equipment		-	7	26	17
Purchase of property, plant and equipment		(161)	(459)	(530)	(1,004)
Dividend received from investment in other entity		-	3,849	3,203	3,849
Capitalized software costs		(862)	(1,634)	(3,009)	(3,007)
Cash (used in) generated from investing activities		(1,023)	1,763	9	(5,030)
Foreign exchange on cash held in foreign currencies		(378)	141	(616)	(245)
Net increase (decrease) in cash and cash equivalents		1,427	(908)	(7,808)	(19,600)
Cash and cash equivalents, beginning of period		22,658	24,041	31,893	42,733
Cash and cash equivalents, end of period		$24,085	$23,133	$24,085	$23,133

Interim Condensed Consolidated Statements of Shareholders' Equity
(in thousands and in United States dollars)

	Capital Stock	Contributed Surplus	Accumulated Other Comprehensive Income	Deficit	Total Shareholders' Equity
Balance, January 1, 2024	$313,738	$126,129	$15,652	($312,079)	$143,440
Net loss	-	-	-	(11,294)	(11,294)
Other comprehensive loss	-	-	42	-	42
Stock-based compensation expense	-	1,936	-	-	1,936
Common shares issued from restricted stock units	729	(976)	-	-	(247)
Common shares issued from performance stock units	55	(55)	-	-	-
Balance, September 30, 2024	$314,522	$127,034	$15,694	($323,373)	$133,877
Balance, January 1, 2025	$314,630	$127,446	$12,148	($323,101)	$131,123
Net loss	-	-	-	(19,939)	(19,939)
Other comprehensive income	-	-	1,856	-	1,856
Stock-based compensation expense	-	3,440	-	-	3,440
Common shares issued from restricted stock units	1,012	(1,436)	-	-	(424)
Common shares issued from deferred stock units	345	(741)	-	-	(396)
Balance, September 30, 2025	$315,987	$128,709	$14,004	($343,040)	$115,660

Reconciliation of Net Loss to Adjusted EBITDA
(in thousands and in United States dollars, except share and per share amounts)

	Three months ended September 30,
	2025		2024
	$	Per Share [2]	$	Per Share
Net loss	($4,734)	($0.04)	($4,109)	($0.04)
Adjusted for:
Income tax expense (recovery)	985	0.01	(98)	(0.00)
Foreign exchange (gain) loss	(824)	(0.01)	845	0.01
Finance expense, net	1,449	0.01	1,603	0.01
Other charges	483	0.00	313	0.00
Depreciation and amortization	2,811	0.02	2,546	0.02
Stock based compensation expense	1,343	0.01	515	0.01
Change in fair value of derivative liability	(29)	-	(499)	(0.00)
Other income	(98)	(0.00)	(3,874)	(0.03)
Adjusted EBITDA [1]	$1,386	$0.01	($2,758)	($0.02)
Weighted average number of Common Shares
Basic	116,898,292		115,393,052

	Nine months ended September 30,
	2025		2024
	$	Per Share [2]	$	Per Share
Net loss	($19,939)	($0.17)	($11,294)	($0.10)
Adjusted for:
Income tax expense	489	0.00	283	0.00
Foreign exchange loss (gain)	2,196	0.01	(652)	(0.01)
Finance expense, net	4,386	0.03	4,594	0.04
Other charges	807	0.01	1,468	0.01
Depreciation and amortization	8,117	0.07	8,391	0.07
Stock based compensation expense	3,440	0.03	1,727	0.02
Change in fair value of derivative liability	(519)	0.00	(1,426)	(0.01)
Other income	(3,707)	(0.03)	(4,008)	(0.03)
Adjusted EBITDA [1]	($4,730)	($0.05)	($917)	($0.01)
Weighted average number of Common Shares
Basic	116,394,088		115,255,582

1.	Please refer to the Adjusted EBITDA Non-IFRS Financial Measures section for further information.
2.	Please refer to the Adjusted EBITDA per share – Non-IFRS Ratio section for further information.

View original content:https://www.prnewswire.com/news-releases/quarterhill-announces-q3-2025-financial-results-302606849.html

SOURCE Quarterhill Inc.

FAQ

What were Quarterhill's revenue and gross margin in Q3 2025 (QTRHF)?

Q3 2025 revenue was $39.7M and gross margin was 26%.

Did Quarterhill (QTRHF) generate positive Adjusted EBITDA in Q3 2025?

Yes. Adjusted EBITDA was $1.4M, the first positive quarter since Q4 2024.

How much cash did Quarterhill (QTRHF) generate from operations in Q3 2025?

Quarterhill generated $6.4M of cash from operations in Q3 2025.

What is Quarterhill's (QTRHF) revenue backlog at September 30, 2025?

Revenue backlog was reported at $427M as of September 30, 2025.

What cost savings and debt actions did Quarterhill (QTRHF) report in Q3 2025?

The company expects ~$12M annualized savings from restructuring and repaid $3.1M of long-term debt in Q3.

Is Quarterhill (QTRHF) still reporting a net loss after Q3 2025 results?

Yes. Net loss was $4.7M for Q3 2025 and $19.9M year-to-date.