Quarterhill Inc. ( (QTRHF) ) has released its Q4 earnings. Here is a breakdown of the information Quarterhill Inc. presented to its investors.
Quarterhill Inc. is a prominent company in the Intelligent Transportation System (ITS) industry, providing tolling and enforcement solutions globally. In its latest earnings report for the fourth quarter and fiscal year 2024, Quarterhill Inc. reported a revenue of $38.9 million for Q4 and $153.3 million for the entire year, showing a slight increase from the previous year. The company also highlighted a significant revenue backlog of $495 million as of December 31, 2024, and a notable increase in cash and cash equivalents to $31.9 million by the end of the year.
Key financial metrics revealed a decrease in adjusted EBITDA to $1.2 million for Q4 2024 from $2.3 million in the same period last year, and to $0.2 million for the fiscal year from $2.9 million the previous year. The company attributed these changes to cost overruns on tolling projects and a strategic shift in operations. Despite these challenges, Quarterhill managed to generate positive cash flow from continuing operations, amounting to $6.5 million in Q4 2024.
Strategically, Quarterhill made significant moves, including the acquisition of Red Fox for $4.9 million and the sale of its 50% interest in a Chinese joint venture, which brought in $4.4 million. The company also secured a $40 million renewal contract to upgrade the Alameda CTC I-580 Express Lanes, with potential expansion valued at an additional $15 million.
Looking ahead, Quarterhill’s management remains optimistic about the company’s future, focusing on becoming a leading player in its markets. With a solid financial foundation, improved operational efficiency, and enhanced technological capabilities, the company is well-positioned for revenue growth and margin expansion in 2025.