Quarterhill Announces Q3 2025 Financial Results

Core Insights - Quarterhill Inc. has shown significant progress in its turnaround strategy, achieving substantial gross margin expansion, positive Adjusted EBITDA, and positive operating cash flow [2][4] - The company is focused on accelerating growth and expanding profitability as it positions itself as a leading technology-driven Intelligent Transportation System (ITS) platform [4][21] Financial Performance - Revenues for Q3 2025 were $39.7 million, an increase from $38.0 million in Q3 2024, while year-to-date revenues reached $116.7 million compared to $114.4 million in the same period last year [5][9] - Gross profit for Q3 2025 was $10.5 million, representing a gross margin of 26%, up from 13% in Q3 2024 [6][7] - Adjusted EBITDA for Q3 2025 was $1.4 million, a significant improvement from a loss of $2.8 million in Q3 2024, marking the first positive Adjusted EBITDA quarter since Q4 2024 [9][34] Operational Highlights - The Safety & Enforcement unit delivered gross margins above 40%, while the Tolling business benefited from restructuring actions and improved contract terms [4][6] - The company reported a revenue backlog of $427 million as of September 30, 2025, with a pipeline valued at approximately $2 billion [4][10] Cash Flow and Expenses - Cash generated from operations for Q3 2025 was $6.4 million, a significant increase compared to cash used in operations of $1.7 million in Q3 2024 [10][34] - Total operating expenses for Q3 2025 were $13.7 million, up from $11.3 million in Q3 2024, primarily due to higher costs related to stock-based compensation and recruitment [7][8] Balance Sheet Strength - Cash and cash equivalents stood at $24.1 million as of September 30, 2025, compared to $22.7 million at June 30, 2025 [10][30] - The company made long-term debt repayments of $3.1 million in Q3 2025, reflecting a commitment to strengthening its balance sheet [10][30]