Canada's Quarterhill Q4 revenue edges down, net loss widens on impairment

Quarterhill

23/03/2026 11:14

Overview

Canada ITS software provider's Q4 revenue declined yr/yr

Q4 adjusted EBITDA rose yr/yr, driven by margin expansion and restructuring

Company reported a net loss in Q4 due to a one-time goodwill impairment charge

Outlook

Quarterhill says demand for AI-enabled transportation solutions is increasing in 2026

Company aims to accelerate growth and expand margins in 2026

Quarterhill targets sustained adjusted EBITDA profitability in 2026

Result Drivers

MARGIN EXPANSION - Co said Q4 gross margin rose due to restructuring and improved profitability on certain tolling contracts, as well as strong performance from the safety and enforcement unit

CONTRACT WINS - Co secured new and extended contracts in the U.S. and internationally, including a $10.7 mln Illinois Tollway extension and multiple weigh-in-motion projects

GROWING DEMAND - Management said demand for AI-enabled transportation solutions is increasing, supporting the pipeline of new opportunities

Company press release: ID:nPnc3Hfw1a

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
$38.46 mln
Q4 Net Income
-$34.47 mln
Q4 Adjusted EBITDA
$4.40 mln
Q4 Gross Profit
$12.10 mln
Q4 Pretax Profit
-$34.95 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "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$1.80, about 74.8% above its March 20 closing price of C$1.03

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)