Q4 2025 Quarterhill Inc Earnings Call Transcript
Key Points
- Quarterhill Inc (QTRHF) reported a significant improvement in gross margins, reaching 31% in Q4 2025, up from 20% in the same quarter last year.
- The company achieved its second consecutive quarter of positive adjusted EBITDA, marking a turnaround from negative adjusted EBITDA in the first half of 2025.
- Quarterhill Inc (QTRHF) has a substantial backlog of $404 million, providing multi-year revenue visibility and a strong foundation for future growth.
- The company is advancing its AI-enabled platform, which is expected to enhance competitiveness and operational efficiency.
- Quarterhill Inc (QTRHF) is well-positioned in the growing ITS market, with a $2 billion opportunity pipeline and plans to expand through strategic acquisitions.
- Quarterhill Inc (QTRHF) reported only modest year-over-year revenue growth, with full-year 2025 revenue at $155.2 million compared to $153.3 million in 2024.
- The company faces upcoming debt maturities, including a $14 million bank facility and $40 million in convertible debentures, requiring refinancing efforts.
- Revenue variability remains a challenge due to project timing and external factors such as weather, impacting quarterly performance.
- Despite improvements, the company's unbilled revenue is still higher than desired, indicating potential cash flow management issues.
- Quarterhill Inc (QTRHF) is in the process of finalizing its new platform, which may involve additional costs and risks associated with commercialization and integration.
Good morning everyone and welcome to Quarter Hill's fourth quarter and full year's 2025 financial results conference call. Joining us today are Chuck Myers, Chief Executive Officer, and David Charron, Chief Financial Officer. (Operator Instructions)
Earlier this morning, Quarter Quarterhill issued a news release announcing its financial results for the fourth quarter and full year ended December 31, 2025. This news release, along with the company's MD&A and financial statements are available on Sedar+.
Certain matters discussed during today's conference call or responses to questions may constitute forward-looking statements. Actual results could differ materially from those anticipated. Risk factors that could affect, I'm sorry, risk factors that could affect results are detailed in the company's annual information form and other public filings available on Sedar+.
During this conference call, holder will refer to adjusted EBITDA. Adjusted EBITDA does not have any standardized meaning prescribed by IFRS. Please refer to the company's Q4 2025 MD&A and full cautionary
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