Overview

* Quarterhill Q2 2025 revenue grows 4% yr/yr, misses analyst expectations

* Net loss for Q2 widens to $6.8 mln, adjusted EBITDA declines

* Company announces restructuring to save $12 mln annually, starting Q3

Outlook

* Quarterhill expects $12 mln annual savings from restructuring starting Q3 2025

* Company renegotiating tolling contracts to reduce costs and enter mediation

* Quarterhill ( QTRHF ) investing in next-gen technology for sustainable profitability

* Company anticipates margin expansion and positive cash flow with strategic plan

Result Drivers

* SAFETY AND ENFORCEMENT - Strong performance in safety and enforcement unit drove revenue growth, per CEO Chuck Myers

* TOLLING CONTRACTS - Cost overruns on tolling projects contributed to decreased gross profit and adjusted EBITDA

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss $43.08 $47.90

Revenue mln mln (2

Analysts

)

Q2 Net $6.84

Income mln

Q2 $2.70

Adjusted mln

EBITDA

Q2 Gross $6.34

Profit mln

Q2 $7.44

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$2.00, about 37% above its August 12 closing price of C$1.26

Press Release:

(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.)