Quarterhill (TSE:QTRH)
TSX:QTRH
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Quarterhill
(TSX:QTRH)
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Rating:57Neutral
Price Target:
C$2.00
▲(39.86% Upside)
Action:Reiterated
Date:05/15/26
The score is held back primarily by weak financial performance (persistent losses, very poor ROE, and slightly negative TTM free cash flow) despite improving revenue and gross margin. Technicals are a meaningful positive with a strong uptrend and supportive momentum indicators. Valuation remains challenged due to negative earnings and no provided dividend yield.
Positive Factors
Recurring service revenue
Quarterhill’s business derives recurring, service-oriented revenue from operating and supporting toll and enforcement deployments. This yields durable revenue streams tied to long-term agency contracts and maintenance, smoothing volatility from lumpier equipment sales and supporting predictable cash flows over months to years.
Negative Factors
Persistent unprofitability
Despite revenue gains, the company remains loss-making at the EBIT and net levels. Continued negative margins signal structural profitability issues—either pricing, fixed cost base, or high operating overhead—that could erode capital and limit reinvestment unless operational margins improve sustainably.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring service revenue
Quarterhill’s business derives recurring, service-oriented revenue from operating and supporting toll and enforcement deployments. This yields durable revenue streams tied to long-term agency contracts and maintenance, smoothing volatility from lumpier equipment sales and supporting predictable cash flows over months to years.
Read all positive factors
Quarterhill (QTRH) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$214.19M
Dividend YieldN/A
Average Volume (3M)116.86K
Price to Earnings (P/E)―
Beta (1Y)0.51
Revenue Growth4.41%
EPS Growth-227.05%
CountryCA
Employees467
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)-0.42
Shares Outstanding118,992,744
10 Day Avg. Volume97,254
30 Day Avg. Volume116,856
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)1.33
Price to Sales (P/S)0.70
P/FCF Ratio17.56
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$2.50Price Target Upside74.83% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-0.02
Revenue Forecast (FY)C$166.60M
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 m...
How the Company Makes Money
Quarterhill primarily makes money by supplying intelligent transportation systems to government and transportation-agency customers, with revenue generally coming from (1) system and equipment sales/implementation for electronic tolling and traffi...
Quarterhill Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The earnings call showcased significant improvements in revenue, EBITDA, and cash flow, driven by strategic restructuring and successful contract renegotiations. The company demonstrated strong performance in key business units and is investing in future growth through technology. Despite increased operating expenses, the positive developments notably outweigh the negatives.Positive Updates
Revenue and Cash Flow Growth
Q3 revenue was $39.7 million, up 4.5% from Q3 last year. Year-to-date, revenue was $116.7 million, up 2%. The company generated $6.4 million of positive cash from operations.
Negative Updates
Increased Operating Expenses
Total operating expenses for Q3 were $13.7 million, up from $11.3 million in Q3 last year, primarily due to investments in leadership and resources.
Read all updates
Q3-2025 Updates
Positive
Negative
Revenue and Cash Flow Growth
Q3 revenue was $39.7 million, up 4.5% from Q3 last year. Year-to-date, revenue was $116.7 million, up 2%. The company generated $6.4 million of positive cash from operations.
Read all positive updates
Company Guidance
In the Quarterhill Q3 2025 financial results call, CEO Charles Myers and CFO David Charron highlighted several key metrics and strategic initiatives. The company reported a positive adjusted EBITDA of $1.4 million, marking a significant improvement from the previous quarter. Revenue for the quarter stood at $39.7 million, a 4.5% increase year-over-year, contributing to a year-to-date revenue of $116.7 million. The company successfully generated $6.4 million in cash from operations and increased their cash balance to $24.1 million while reducing debt. Quarterhill undertook a workforce reduction of approximately 100 positions, resulting in anticipated annual savings of $12 million. In the Safety and Enforcement unit, gross margins exceeded 40%, while the tolling business saw improved profitability following the renegotiation of an underperforming contract. The company added $137 million in new contracts year-to-date and maintained a backlog of over $427 million. Quarterhill is investing in next-gen technology to boost higher-margin software revenue and improve operational efficiency. These efforts align with their focus on driving growth, expanding margins, and ensuring consistent positive cash flow.Quarterhill Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
54
Neutral
Cash Flow
41
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 148.39M | 157.89M | 106.53M | 194.32M | 159.33M | 125.69M |
| Gross Profit | 32.15M | 22.24M | 19.30M | 40.60M | 21.63M | 37.44M |
| EBITDA | -978.11K | ― | 5.53M | -8.92M | -11.46M | 4.24M |
| Net Income | -39.73M | -55.36M | ― | -49.99M | 2.77M | -22.18M |
Balance Sheet | ||||||
| Total Assets | 184.04M | 190.67M | 230.11M | 332.08M | 411.94M | 427.19M |
| Cash, Cash Equivalents and Short-Term Investments | 14.73M | 24.80M | 31.89M | 56.62M | 67.91M | 75.69M |
| Total Debt | 57.93M | 59.65M | 61.07M | 86.54M | 89.94M | 115.90M |
| Total Liabilities | 104.18M | 107.38M | 98.98M | 142.02M | 154.28M | 186.08M |
| Stockholders Equity | 79.85M | 83.29M | 131.12M | 190.06M | 257.66M | 241.12M |
Cash Flow | ||||||
| Free Cash Flow | -1.09M | 6.32M | -9.86M | -29.77M | 30.92M | -19.92M |
| Operating Cash Flow | 2.07M | 7.01M | -4.42M | -27.56M | 39.61M | -13.34M |
| Investing Cash Flow | -4.37M | -6.47M | -1.99M | 27.77M | -10.30M | -158.09M |
| Financing Cash Flow | -6.93M | -6.23M | -4.54M | -9.05M | -42.89M | 108.26M |
Quarterhill Technical Analysis
Positive
1.43
Price Trends
1.34
Positive
1.14
Positive
1.11
Positive
Market Momentum
0.09
Negative
76.12
Negative
87.48
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:QTRH, the sentiment is Positive. The current price of 1.43 is below the 20-day moving average (MA) of 1.52, above the 50-day MA of 1.34, and above the 200-day MA of 1.11, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 76.12 is Negative, neither overbought nor oversold. The STOCH value of 87.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:QTRH.
Quarterhill Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | C$77.69M | 28.75 | 15.83% | ― | 22.40% | 87.23% | |
65 Neutral | C$324.36M | -323.95 | -6.16% | 2.14% | -8.60% | -455.10% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | C$214.19M | -6.98 | -45.74% | ― | 4.41% | -227.05% | |
47 Neutral | C$43.95M | 310.31 | -4.10% | 1.52% | -26.68% | -92.00% | |
45 Neutral | C$39.69M | -4.28 | ― | ― | -10.80% | 31.36% |
* Technology Sector Average
TSE:QTRH
Quarterhill
1.80
0.30
20.00%
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Quarterhill Corporate Events
Business Operations and Strategy
Quarterhill Wins $2.4 Million Caltrans Contracts to Expand Freight Vehicle Monitoring in California
Positive
Mar 31, 2026
Quarterhill has secured three new commercial vehicle technology projects worth about $2.4 million from the California Department of Transportation, deepening its long-standing role in supporting freight operations across key state corridors. The p...
Business Operations and Strategy
Quarterhill Wins Multi-Year NJDOT Deal to Maintain Statewide Traffic Monitoring Network
Positive
Mar 24, 2026
Quarterhill, through its International Road Dynamics subsidiary, has secured a multi-year contract with the New Jersey Department of Transportation to maintain and modernize the state’s network of weigh-in-motion stations and traffic volume ...
Business Operations and StrategyFinancial Disclosures
Quarterhill Ends 2025 with Strong Margins, Backlog and AI-Driven ITS Momentum
Positive
Mar 23, 2026
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 bac...
Financial Disclosures
Quarterhill Schedules March 23 Call to Review 2025 Results
Neutral
Mar 17, 2026
Quarterhill Inc., a Toronto-listed intelligent transportation systems specialist, designs and operates smart infrastructure platforms that help government and industry partners manage connected roadways more efficiently. The company focuses on eas...
Business Operations and StrategyProduct-Related Announcements
Quarterhill to Debut Next-Gen Enforcement and Tolling Tech at Intertraffic Amsterdam
Positive
Mar 9, 2026
Quarterhill will use the Intertraffic Amsterdam 2026 exhibition to showcase an expanded portfolio of integrated enforcement, sensing, tolling, and analytics solutions aimed at modernizing transportation operations. The company is positioning its t...
Business Operations and Strategy
Quarterhill Wins $6.4 Million MassDOT Contract to Expand Weigh-In-Motion Network
Positive
Mar 5, 2026
Quarterhill has secured a $6.4 million contract, via Coviello Electric, to expand the Massachusetts Department of Transportation’s Weigh-in-Motion program with 15 new stations and an integrated commercial vehicle compliance software platform...
Business Operations and Strategy
Quarterhill Wins $6.4 Million MassDOT Contract to Expand Weigh-In-Motion Network
Positive
Mar 5, 2026
Quarterhill has secured a US$6.4 million contract, via Coviello Electric, to expand the Massachusetts Department of Transportation’s weigh-in-motion program by installing 15 new stations and deploying a commercial vehicle compliance software...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.