Quarterhill (QTRH) AI Stock Analysis

• Market Cap: $110.06M
• Dividend Yield: N/A
• Average Volume (3M): 116.86K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.67
• Revenue Growth: 1.48%
• EPS Growth: 11.75%
• Country: CA
• Employees: 467
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 0.00
• Shares Outstanding: 117,087,870
• 10 Day Avg. Volume: 97,254
• 30 Day Avg. Volume: 116,856
• PEG Ratio: 0.22
• Price to Book (P/B): 1.44
• Price to Sales (P/S): 1.23
• P/FCF Ratio: -19.20
• Enterprise Value/Market Cap: 1.99
• Enterprise Value/Revenue: 1.41
• Enterprise Value/Gross Profit: 7.70
• Enterprise Value/Ebitda: -183.61
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: C$1.00 ▲(5.26% Upside)

Quarterhill's overall stock score reflects significant financial challenges and bearish technical indicators, which are partially offset by positive earnings call insights and recent corporate events. The company's strategic initiatives and contract wins provide a foundation for potential future growth, but current financial and market conditions remain challenging.

Positive Factors

Revenue Growth

The increase in revenue indicates a positive trend in market demand and effective business strategies, supporting long-term growth.

Cash Generation

Positive cash flow from operations enhances financial flexibility, enabling the company to invest in growth opportunities and manage debt.

Contract Renegotiation

Turning a loss-making contract profitable improves margins and demonstrates effective management, contributing to long-term financial health.

Negative Factors

Declining Profitability

Negative profitability margins indicate challenges in cost management and pricing power, potentially affecting future earnings stability.

Cash Flow Strains

Struggles in generating cash from operations can limit the company's ability to fund growth and meet financial obligations, impacting long-term viability.

Increased Operating Expenses

Rising operating expenses may pressure margins and profitability, requiring careful management to maintain financial health.

Quarterhill Business Overview & Revenue Model

Company Description

Quarterhill Inc. operates in the intelligent transportation system and intellectual property licensing industries worldwide. Its Licensing segment includes patents relating to wireless communications, memory interface technologies, semiconductor manufacturing and packaging technologies, wired connectivity, automotive applications, computer gaming, intelligent personal assistant technologies, enhanced image processing, streaming video technologies, non-volatile Flash memory, DRAM and other memory technologies, and semiconductor analog circuitry technologies. The company's Intelligent Systems segment provides international road dynamics products and services, such as red light and speed enforcement systems, automated truck weigh stations; toll road systems and equipment; traffic management and safety systems; VectorSense, a tire sensor suite; Vehicle Information-In-Motion, a traffic intelligence system; integrated traffic control systems; permanent and portable slow speed weigh-in-motion systems; portable wheel load scales; traffic data collection products; vehicle and axle detection equipment; and automated vehicle identification services and equipment, and other hardware and software products and offerings for the intelligent transportation systems industry. This segment serves through direct salespeople, distributors, agents, contractors, and systems integrators. The company was formerly known as Wi-LAN Inc. and changed its name to Quarterhill Inc. in June 2017. Quarterhill Inc. was incorporated in 1992 and is headquartered in Toronto, Canada.

How the Company Makes Money

Quarterhill generates revenue primarily through licensing agreements and royalties from its intellectual property portfolio. The company acquires patents and technologies, which it then licenses to other firms, allowing them to utilize these innovations while providing Quarterhill with a steady stream of income. Additionally, revenue is supplemented by strategic partnerships and collaborations with technology firms, where Quarterhill may receive upfront payments or ongoing royalties based on the success of the licensed technologies. The company may also explore opportunities in the acquisition of complementary businesses that enhance its revenue capabilities.

Quarterhill Financial Statement Overview

Summary

Quarterhill is facing significant financial challenges with declining revenues and profitability, negative cash flows, and a concerning trend in financial health. Despite a manageable debt level, the negative cash flows and profitability trends pose risks to financial stability.

Income Statement

Quarterhill experienced a challenging period with declining revenues and profitability. The Gross Profit Margin decreased significantly, and the Net Profit Margin turned negative, reflecting increased costs or decreased pricing power. The revenue decline from the previous year indicates potential market share loss or decreased demand for products. Negative EBIT and EBITDA margins highlight struggles in operational efficiency and cost management. Overall, the income statement shows a concerning trend of declining financial health.

Balance Sheet

The balance sheet reveals a moderately leveraged position with a Debt-to-Equity Ratio of 0.47, indicating manageable debt levels relative to equity. However, the Return on Equity (ROE) has turned negative due to net losses, impacting shareholder value. The Equity Ratio remains healthy at 57%, showing a solid equity base. Despite these strengths, the declining net income and equity raise concerns about future financial stability.

Cash Flow

The cash flow analysis shows significant weaknesses, with negative Operating Cash Flow and Free Cash Flow, indicating issues in generating cash from operations. The Free Cash Flow to Net Income Ratio is unfavorable, and the Operating Cash Flow to Net Income Ratio is negative, reflecting cash flow strains. The Free Cash Flow Growth Rate is also negative, highlighting declining cash generation capability. This weak cash flow position raises concerns about liquidity and the ability to fund operations and investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	155.58M	153.31M	194.32M	305.69M	125.69M	144.53M
Gross Profit	28.51M	27.78M	40.60M	117.54M	37.44M	58.86M
EBITDA	-1.20M	7.96M	-8.92M	―	―	30.53M
Net Income	-19.67M	-11.02M	-49.99M	2.77M	-22.18M	4.43M
Balance Sheet
Total Assets	220.38M	230.11M	332.08M	411.94M	427.19M	303.81M
Cash, Cash Equivalents and Short-Term Investments	24.09M	31.89M	56.62M	67.91M	72.60M	141.25M
Total Debt	59.26M	61.07M	86.54M	89.94M	115.90M	3.76M
Total Liabilities	104.72M	98.98M	142.02M	154.28M	186.08M	31.88M
Stockholders Equity	115.66M	131.12M	190.06M	257.66M	241.12M	271.93M
Cash Flow
Free Cash Flow	-167.00K	-9.86M	-23.38M	30.92M	-19.92M	32.63M
Operating Cash Flow	4.80M	-4.42M	-27.56M	39.61M	-13.34M	35.22M
Investing Cash Flow	3.05M	-1.99M	27.77M	-10.30M	-158.09M	41.44M
Financing Cash Flow	-6.63M	-4.54M	-9.05M	-42.89M	108.26M	-19.48M

Quarterhill Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:QTRH, the sentiment is Neutral. The current price of 0.95 is above the 20-day moving average (MA) of 0.94, below the 50-day MA of 0.99, and below the 200-day MA of 1.25, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.90 is Neutral, neither overbought nor oversold. The STOCH value of 36.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:QTRH.

Quarterhill Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BEW	70 Outperform	C$68.75M	98.73	7.70%	―	27.55%	-39.69%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
VCM	53 Neutral	C$235.85M	-11.99	-8.77%	2.27%	-11.70%	-199.55%
QTRH	50 Neutral	$110.06M	-4.00	-15.76%	―	1.48%	11.75%
CMI	46 Neutral	C$35.92M	-36.64	-4.10%	1.52%	-46.11%	-149.26%
BYL	39 Underperform	C$41.98M	-11.88	―	―	―	―

Quarterhill Corporate Events

Quarterhill Secures $5.2 Million Contract for Advanced Tolling System Deployment

Quarterhill Inc. has secured a $5.2 million contract to implement its Next Generation Toll Lane System on a major U.S. express lane corridor, highlighting its expertise in modernizing tolling technology. This system, which includes machine learning, cloud-based infrastructure, and dynamic pricing, aims to enhance traffic flow and driver experience while offering scalable solutions for future needs. This initiative not only strengthens Quarterhill’s partnerships with transportation agencies but also underscores its commitment to advancing intelligent mobility and improving roadway safety.

Quarterhill to Participate in Key Investor Conferences

Quarterhill Inc. announced that its CEO, Chuck Myers, and CFO, David Charron, will participate in two upcoming investor conferences, the 14th Annual ROTH Technology Conference and the 17th Annual TD Cowen Technology Conference. This participation underscores Quarterhill’s active engagement with the investment community, potentially enhancing its visibility and investor relations within the ITS industry.

Quarterhill Reports Strong Q3 2025 Financial Results with Improved Profitability

Quarterhill Inc. reported significant progress in its Q3 2025 financial results, showcasing a substantial improvement in profitability and operational execution. The company achieved gross margin expansion to 26%, positive Adjusted EBITDA, and strong cash generation, marking a successful phase in its turnaround strategy. With a robust revenue backlog and a strengthened balance sheet, Quarterhill is focused on accelerating growth and expanding profitability, positioning itself as a leading technology-driven ITS platform company.

Quarterhill to Release Q3 2025 Financial Results

Quarterhill Inc. announced it will release its Q3 2025 financial results on November 6, 2025, with a conference call and webcast hosted by CEO Chuck Myers and CFO David Charron. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and strategic positioning in the ITS industry, potentially impacting its market perception and investor decisions.

Quarterhill and WSDOT Launch $2.3 Million Truck Parking Safety Initiative on I-5

Quarterhill Inc., in collaboration with the Washington State Department of Transportation, has launched a $2.3 million Truck Parking Information Management System (TPIMS) to enhance truck parking safety along Washington’s I-5 corridor. This initiative aims to address the critical issue of secure truck parking by providing real-time information on available spaces, thereby reducing fatigue-related risks and improving freight efficiency. The project highlights Quarterhill’s role as a comprehensive solutions provider, enhancing roadway safety and supporting the state’s transportation network resilience.

Quarterhill and Arkansas DOT Collaborate to Enhance Freight Operations with AI Technology

Quarterhill Inc. has partnered with the Arkansas Department of Transportation and the Arkansas Highway Police to launch a $2.7 million project aimed at modernizing freight operations on two major trucking corridors in Arkansas. The initiative will implement AI-driven and sensor-based technologies, including weigh-in-motion sensors and tire anomaly classification systems, to enhance safety and efficiency without expanding roadways. This project is expected to strengthen Arkansas’ position as a leader in freight movement, addressing increasing freight volumes and supporting sustainable transportation infrastructure.