Core Insights - Quarterhill Inc. reported Q2 2025 revenue of $43.1 million, a 4% increase year-over-year, primarily driven by strong performance in the safety and enforcement unit [3][6] - The company is implementing a four-point plan aimed at strengthening its business, which includes restructuring for $12 million in annualized savings, renegotiating tolling contracts, pursuing higher-margin business, and investing in next-generation technology [4][10] - Despite revenue growth, the company experienced a net loss of $6.8 million in Q2 2025, compared to a net loss of $3.0 million in Q2 2024 [10][13] Financial Performance - Q2 2025 revenues were $43.1 million, up from $41.5 million in Q2 2024, while year-to-date revenues reached $77.0 million compared to $76.4 million in the same period last year [6][13] - Gross profit for Q2 2025 was $6.3 million (15% margin), down from $8.5 million (21% margin) in Q2 2024, attributed to cost overruns on tolling projects [7][30] - Adjusted EBITDA for Q2 2025 was ($2.7) million, a decrease from $1.7 million in Q2 2024, largely due to impacts from renegotiated tolling contracts [9][30] Operational Highlights - Total operating expenses for Q2 2025 were $12.9 million, up from $10.8 million in Q2 2024, driven by recruitment and technical consulting costs [8][30] - Cash used in operations for Q2 2025 was ($4.6) million, compared to cash generated from operations of $0.8 million in Q2 2024 [11][30] - The company’s cash and cash equivalents decreased to $22.7 million as of June 30, 2025, down from $31.9 million at the end of 2024 [11][30] Strategic Initiatives - The company has appointed new leadership, including David Charron as Chief Financial Officer and Darren Learmonth as Chief Technology Officer, to drive its strategic initiatives [13] - A restructuring plan announced on July 24, 2025, is expected to yield annualized savings of approximately $12 million starting in Q3 2025 [4][13] - The company reported a revenue backlog of $463 million as of June 30, 2025, indicating a strong pipeline for future revenue [13]
Quarterhill Announces Q2 2025 Financial Results
Prnewswire·2025-08-13 10:31