Canada · Delayed Price · Currency is CAD Quarterhill Earnings Call Transcripts
Fiscal Year 2025
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Stabilized operations and improved profitability in 2025, with revenue and margins up year-over-year. Entering 2026 with a $404M backlog, a robust $2B pipeline, and a focus on scaling AI-driven platforms and strategic acquisitions.
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Q3 saw revenue and margin growth, a return to positive adjusted EBITDA, and strong cash generation. Restructuring and contract renegotiations drove profitability, while investments in AI and new tech platforms position the business for future growth.
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Q2 revenue grew 4% year-over-year to $43.1 million, but adjusted EBITDA was negative due to two problematic tolling contracts. A major restructuring is expected to save $12 million annually, with margin improvements and positive cash flow anticipated in the second half of 2025.
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Q1 2025 saw revenue of $33.9M and negative adjusted EBITDA of $3.4M, mainly due to two legacy tolling contracts under renegotiation. The company maintains a $476M backlog, is advancing its AI-driven technology, and expects margin and cash flow improvements as contract issues are resolved.
Fiscal Year 2024
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Revenue grew 6.5% in 2024 with positive Adjusted EBITDA and strong cash flow improvements. Backlog reached $495 million, providing high revenue visibility for 2025, and margin expansion is expected as legacy contract issues are resolved.
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Q3 revenue grew 12% year-over-year, but reserves for legacy tolling contracts led to negative Adjusted EBITDA. The company expects a return to positive margins in Q4 and targets 10%+ EBITDA margin in 2025, supported by a $475 million backlog and strategic asset sales.
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Q2 2024 saw 7.5% revenue growth, improved cash flow, and a $500M backlog, with positive outlook for margin and EBITDA improvements. The Red Fox acquisition and new board member strengthen AI capabilities, while the business remains recession-resistant and focused on growth.