Quarterhill Announces Q3 2025 Financial Results

Executive Summary

• Quarterhill reported Q3 2025 revenue of $39.7 M (up 4.5% YoY) and gross margin improvement to 26% (from 13% in Q3 2024).
• Adjusted EBITDA turned positive at $1.4 M, the first such quarter since Q4 2024, and cash generated from operations was $6.4 M.
• The company highlighted a $427 M revenue backlog and expects annualized restructuring savings of approximately $12 M.

Key Details

• Revenue: $39.7 M for Q3 2025 vs. $38.0 M in Q3 2024.
• Gross Margin: 26% in Q3 2025, up from 13% a year earlier. Safety & Enforcement unit >40% margin; Tolling unit improving after restructuring.
• Adjusted EBITDA: $1.4 M (positive) vs. $(2.8) M in Q3 2024.
• Cash Flow: Cash generated from operations $6.4 M (Q3 2025) vs. cash used $1.7 M (Q3 2024). Cash & equivalents $24.1 M at Sep‑30‑2025.
• Backlog: $427 M as of Sep‑30‑2025.
• Restructuring Savings: Expected annualized $12 M from July restructuring actions.
• Net Loss: $(4.7) M for Q3 2025 vs. $(4.1) M in Q3 2024; per diluted share loss $0.04 (unchanged YoY).
• Operating Expenses: $13.7 M for the quarter, up from $11.3 M YoY, driven by higher stock‑based compensation, recruitment, technical consulting, and R&D.
• Long‑Term Debt Repayment: $3.1 M repaid in Q3 2025.
• Conference Call: Scheduled for Thursday, Nov 6 2025 at 8:30 AM ET (webcast link provided).

Notable Quotes

“Q3 marks an important inflection point for Quarterhill,” said Chuck Myers, CEO. “We’re beginning to see the results of our turnaround take hold…gross margin improved to 26%, our highest level in more than two years.”

Materiality Assessment: Material – Positive (significant improvement in profitability metrics and cash generation indicating a material positive shift in the company’s financial performance).