Canada's Quarterhill Q1 revenue rises on commercial vehicle business

Quarterhill

14/05/2026 12:07

Overview

Canada intelligent transport tech firm's Q1 revenue rose 14% yr/yr, driven by commercial vehicle business

Adjusted EBITDA turned positive, supported by restructuring and higher margins on tolling contracts

Gross margin improved to 28% from 12% a year ago

Outlook

Quarterhill says 2026 will focus on growth through organic initiatives and M&A

Company expects continued expansion in gross margins as it scales operations

Quarterhill cites strong backlog and recent contract wins supporting future growth

Result Drivers

COMMERCIAL VEHICLE BUSINESS - Revenue growth was primarily driven by expansion in the commercial vehicle and enforcement business unit

RESTRUCTURING AND MARGIN IMPROVEMENT - Gross margin expansion was mainly attributed to restructuring and improved margins on certain tolling contracts

NEW CONTRACTS AND ORGANIC SALES - Company cited momentum from new tolling and commercial vehicle contract wins and traction in organic sales initiatives

Company press release: ID:nPn9lDHNLa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
$38.61 mln
Q1 EPS
-$0.04
Q1 Net Income
-$5.25 mln
Q1 Adjusted EBITDA
$2 mln
Q1 Gross Profit
$10.71 mln
Q1 Pretax Profit
-$4.72 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 29% above its May 13 closing price of C$1.55

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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.)