Overview

* Quarterhill ( QTRHF ) Q3 revenue rises to $39.7 mln, missing analyst expectations

* Gross margin improved to 26% from 13% in Q3 2024

* Adjusted EBITDA turns positive at $1.4 mln, first positive since Q4 2024

Outlook

* Quarterhill ( QTRHF ) did not provide specific guidance for future quarters or the full year

Result Drivers

* GROSS MARGIN EXPANSION - Co attributes improved margins to better project execution, disciplined cost management, and a more profitable revenue mix

* SAFETY & ENFORCEMENT PERFORMANCE - Safety & Enforcement unit delivered gross margins above 40%

* TOLLING BUSINESS BENEFITS - Tolling business benefited from restructuring actions and improved contract terms

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Miss $39.74 $41.80

Revenue mln mln (1

Analyst)

Q3 Net -$4.73

Income mln

Q3 $1.40

Adjusted mln

EBITDA

Q3 Gross $10.46

Profit mln

Q3 -$3.75

Pretax mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the electronic equipment & parts peer group is "buy"

* Wall Street's median 12-month price target for Quarterhill Inc ( QTRHF ) is C$1.80, about 41.1% above its November 5 closing price of C$1.06

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)