Quarterhill Ends 2025 with Strong Margins, Backlog and AI-Driven ITS Momentum

Quarterhill ( (TSE:QTRH) ) has shared an update.

Quarterhill reported a strong fourth quarter and full-year 2025, underscoring progress in its multi-year transformation toward an AI-driven intelligent transportation platform. The company operates with expanding gross margins, a solid revenue backlog of $404.3 million, and improving cash and EBITDA metrics as it deepens its role in tolling and roadway safety modernization.

In Q4 2025, Adjusted EBITDA rose to $4.4 million from $1.2 million a year earlier and gross margin widened to 31%, while cash from operations reached $4.1 million and cash on hand edged up to $24.8 million. Operationally, Quarterhill secured a series of U.S. and international contracts, including with Illinois Tollway, Arkansas and Washington state transportation departments, and multiple Asian markets, reinforcing its positioning as a key ITS modernization partner and supporting its strategy to scale AI-enabled, higher-margin solutions.

Management emphasized a focus on accelerating growth in 2026, scaling its next-generation AI platform and maintaining disciplined top-line expansion with continued margin gains. The company aims to leverage its strong backlog and growing pipeline of ITS projects to drive sustained adjusted EBITDA profitability and long-term value for shareholders and public-sector customers seeking technology-driven infrastructure upgrades.

The most recent analyst rating on (TSE:QTRH) stock is a Hold with a C$1.00 price target. To see the full list of analyst forecasts on Quarterhill stock, see the TSE:QTRH Stock Forecast page.

Spark’s Take on QTRH Stock

According to Spark, TipRanks’ AI Analyst, QTRH is a Neutral.

The score is driven by improving operational momentum from the latest earnings call (positive EBITDA, stronger operating cash flow, cost reductions, and a large backlog), balanced against still-weak underlying financial performance (ongoing losses, low margins, negative ROE). Technical indicators are neutral and valuation remains constrained by negative earnings and no stated dividend yield.

To see Spark’s full report on QTRH stock, click here.

More about Quarterhill

Quarterhill Inc. is a Toronto-based provider of software and technology solutions for the Intelligent Transportation System industry, focusing on AI-enabled tolling, weigh-in-motion, freight mobility and roadway safety platforms for transportation agencies and large toll networks, with a growing mix of higher-margin software and recurring revenue.

YTD Price Performance: 8.42%

Average Trading Volume: 104,337

Technical Sentiment Signal: Sell

Current Market Cap: C$120.6M

For an in-depth examination of QTRH stock, go to TipRanks’ Overview page.