Core Insights - Quarterhill Inc. is launching a $2.7 million project to modernize freight operations on two critical trucking corridors in Arkansas, in collaboration with the Arkansas Department of Transportation and the Arkansas Highway Police [1][3]. Group 1: Project Overview - The initiative will implement advanced mainline sorter systems at Lehi on I-40 Eastbound and at Marion on I-55 Southbound, which are among the busiest truck entry points in the U.S. [2] - The project aims to enhance freight management through AI-driven and sensor-based technologies, improving safety and efficiency without necessitating costly roadway expansions [3][4]. Group 2: Technology and Benefits - The modernized systems will include Weigh-in-Motion (WIM) sensors for capturing truck weights at highway speeds, a Tire Anomaly Classification System (TACS) for detecting unsafe tire conditions, and License Plate Recognition (LPR) for instant vehicle credential verification [7]. - These upgrades are expected to address the increasing freight volume and support the Arkansas Department of Transportation's mission for safer and more sustainable transportation infrastructure [3][4]. Group 3: Strategic Importance - The collaboration with Quarterhill is positioned as a significant step towards enhancing roadway safety and efficiency, benefiting the economy, drivers, and communities in Arkansas [4]. - The project highlights the importance of technology-driven solutions in managing freight corridors where expansion is challenging, ensuring Arkansas remains a leader in efficient freight movement as interstate commerce grows [3].

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]

Core Viewpoint - Quarterhill Inc. announced a workforce reduction of approximately 100 positions, representing about 15% of total headcount, aimed at reducing costs and aligning resources with long-term strategic priorities [1][2][3] Group 1: Workforce Reduction Details - The workforce reduction will affect both contract and full-time roles in roughly equal measure, expected to generate annualized cost savings of approximately US$12 million [2] - The reduction primarily targets operational areas impacting cost of sales, with partial benefits anticipated in 2025 and full benefits expected in 2026 [2] Group 2: Management Perspective - CEO Chuck Myers emphasized the necessity of these changes to ensure the company remains focused and well-positioned for long-term growth, marking a critical milestone towards achieving positive Adjusted EBITDA margins and operating cash flow [3] Group 3: Company Overview - Quarterhill is a leading provider in the Intelligent Transportation System (ITS) industry, focusing on tolling, safety and enforcement, and logistics solutions, with a goal of technology-driven global leadership through organic growth and acquisitions [4]