CORRECTED-Tolling solutions firm Quarterhill's Q2 revenue misses estimates
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
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