Brief: Quarterhill Announces Q2 2025 Financial Results

Quarterhill

13/08/2025 11:45

Corrects to show Net Income, Adjusted EBITDA and Pretax Profit figures in Key Details table are negative

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 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/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$43.08 mln
$47.90 mln (2 Analysts)
Q2 Net Income
-$6.84 mln
Q2 Adjusted EBITDA
-$2.70 mln
Q2 Gross Profit
$6.34 mln
Q2 Pretax Profit
-$7.44 mln


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

Press Release: ID:nCNWYlpXGa

 (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.)