Quarterhill Reaches Favorable Mediation Agreement, Strengthening Tolling Contract

Core Viewpoint - Quarterhill Inc. has successfully resolved a contract renegotiation with a tolling customer, establishing a stronger partnership and improved terms for future collaboration [1][2][4]. Group 1: Contract Resolution Details - The resolution was achieved through constructive mediation, emphasizing a commitment to a long-term partnership [2]. - The agreement includes a one-time payment to Quarterhill in Q3 2025 for historical cost-recovery matters, along with improved payment terms and enhanced performance standards [3]. - The new contract structure aims to increase annual revenue while reducing costs, and includes a termination-for-convenience provision for a three-year operations and maintenance period [3]. Group 2: Strategic Implications - This resolution is seen as a significant milestone in Quarterhill's operational transformation, providing clarity for shareholders and reaffirming the company's commitment to strong customer relationships [4]. - The agreement is expected to create opportunities for both Quarterhill and its customer, enhancing predictability and setting the stage for long-term success [4]. - Quarterhill aims for technology-driven global leadership in the Intelligent Transportation System (ITS) industry through organic growth and an acquisition-oriented investment strategy [5].