Quarterhill (QTRH) AI Stock Analysis

• Market Cap: C$156.93M
• Dividend Yield: N/A
• Average Volume (3M): 83.62K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.68
• Revenue Growth: 4.23%
• EPS Growth: 47.22%
• Country: CA
• Employees: 467
• Sector: Technology
• Sector Strength: 89
• Industry: Communication Equipment
• EPS (TTM): -0.04
• Shares Outstanding: 116,243,390
• 10 Day Avg. Volume: 43,012
• 30 Day Avg. Volume: 83,623
• PEG Ratio: -0.58
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.84
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$2.00
• Price Target Upside: 48.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 50 Neutral
• Price Target: C$1.50 ▲(11.11%Upside)

Quarterhill's overall score reflects significant financial challenges with declining revenues and profitability, offset by positive strategic initiatives and corporate events indicating potential for future growth. Technical indicators and valuation metrics highlight current market hesitance.

Quarterhill Business Overview & Revenue Model

Company Description

Quarterhill Inc. is a diversified investment holding company focused on acquiring technology companies in the Intelligent Transportation System (ITS) and Intellectual Property (IP) sectors. The company aims to create long-term value by investing in businesses that leverage technology to improve operational efficiencies. Its business operations span traffic management solutions, wireless communication technologies, and patent licensing.

How the Company Makes Money

Quarterhill generates revenue primarily through two key segments: the ITS segment and the IP segment. In the ITS segment, the company provides technology solutions for traffic management, which includes hardware and software systems that help municipalities and governments manage traffic flow and safety. This segment earns revenue through product sales, service contracts, and maintenance agreements. In the IP segment, Quarterhill monetizes its intellectual property portfolio by licensing patents and technology to other companies, often through litigation-driven strategies or strategic partnerships. The company’s earnings are bolstered by its ability to acquire and integrate complementary businesses that enhance its existing operations.

Quarterhill Financial Statement Overview

Summary

Quarterhill faces significant financial challenges with declining revenues and profitability across its income statement, balance sheet, and cash flow. The company struggles with negative cash flows and profitability trends, posing risks to financial stability despite manageable leverage.

Income Statement

Quarterhill experienced a challenging period with declining revenues and profitability. The Gross Profit Margin decreased significantly, and the Net Profit Margin turned negative, reflecting increased costs or decreased pricing power. The revenue decline from the previous year indicates potential market share loss or decreased demand for products. Negative EBIT and EBITDA margins highlight struggles in operational efficiency and cost management. Overall, the income statement shows a concerning trend of declining financial health.

Balance Sheet

The balance sheet reveals a moderately leveraged position with a Debt-to-Equity Ratio of 0.47, indicating manageable debt levels relative to equity. However, the Return on Equity (ROE) has turned negative due to net losses, impacting shareholder value. The Equity Ratio remains healthy at 57%, showing a solid equity base. Despite these strengths, the declining net income and equity raise concerns about future financial stability.

Cash Flow

The cash flow analysis shows significant weaknesses, with negative Operating Cash Flow and Free Cash Flow, indicating issues in generating cash from operations. The Free Cash Flow to Net Income Ratio is unfavorable, and the Operating Cash Flow to Net Income Ratio is negative, reflecting cash flow strains. The Free Cash Flow Growth Rate is also negative, highlighting declining cash generation capability. This weak cash flow position raises concerns about liquidity and the ability to fund operations and investments.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	153.31M	194.32M	305.69M	125.69M	144.53M
Gross Profit	27.78M	40.60M	117.54M	37.44M	58.86M
EBITDA	11.20M	-8.92M	-15.67M	3.90M	30.53M
Net Income	-11.02M	-49.99M	2.77M	-22.18M	4.43M
Balance Sheet
Total Assets	230.11M	332.08M	411.94M	427.19M	303.81M
Cash, Cash Equivalents and Short-Term Investments	31.89M	56.62M	67.91M	72.60M	141.25M
Total Debt	61.07M	86.54M	89.94M	115.90M	3.76M
Total Liabilities	98.98M	142.02M	154.28M	186.08M	31.88M
Stockholders Equity	131.12M	190.06M	257.66M	241.12M	271.93M
Cash Flow
Free Cash Flow	-9.86M	-23.38M	30.92M	-19.92M	32.63M
Operating Cash Flow	-4.42M	-27.56M	39.61M	-13.34M	35.22M
Investing Cash Flow	-1.99M	27.77M	-10.30M	-158.09M	41.44M
Financing Cash Flow	-4.54M	-9.05M	-42.89M	108.26M	-19.48M

Quarterhill Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:QTRH, the sentiment is Negative. The current price of 1.35 is below the 20-day moving average (MA) of 1.39, below the 50-day MA of 1.42, and below the 200-day MA of 1.56, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 39.49 is Neutral, neither overbought nor oversold. The STOCH value of 14.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:QTRH.

Quarterhill Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ET	79 Outperform	C$925.25M	15.51	22.71%	8.97%	-4.64%	-19.57%
BEW	77 Outperform	C$68.14M	110.45	7.04%	―	41.67%	-23.86%
VCM	60 Neutral	C$225.15M	61.14	1.61%	3.25%	9.13%	-77.24%
TSAT	60 Neutral	$507.18M	8.35	-12.49%	―	-20.40%	-161.60%
QTRH	50 Neutral	C$156.93M	―	-11.53%	―	4.23%	47.22%
Sector *	49 Neutral	C$2.89B	2.48	-80.91%	2.94%	6.72%	-18.96%
BYL	41 Neutral	C$34.10M	―	275.12%	―	―	―

Quarterhill Corporate Events

Quarterhill Files Preliminary Base Shelf Prospectus to Raise Up to C$200 Million

Quarterhill Inc. has filed a preliminary short form base shelf prospectus in Canada, excluding Quebec, to potentially raise up to C$200 million through various securities over a 25-month period. This move is intended to provide the company with the flexibility to access new capital for strategic acquisitions, depending on its financial needs and market conditions, thereby potentially strengthening its position in the ITS industry.

The most recent analyst rating on (TSE:QTRH) stock is a Buy with a C$2.00 price target. To see the full list of analyst forecasts on Quarterhill stock, see the TSE:QTRH Stock Forecast page.

Quarterhill Appoints New CFO to Propel Growth

Quarterhill Inc. has appointed David Charron as its new Chief Financial Officer, effective June 17, 2025. Charron, with over 15 years of experience in public technology companies, is expected to drive the next phase of growth for Quarterhill, leveraging his expertise in capital markets and mergers and acquisitions. This strategic appointment comes as Quarterhill is in the late stages of its transformation efforts, positioning the company for further expansion and operational excellence in the Intelligent Transportation System industry.

The most recent analyst rating on (TSE:QTRH) stock is a Buy with a C$2.00 price target. To see the full list of analyst forecasts on Quarterhill stock, see the TSE:QTRH Stock Forecast page.

Quarterhill Reports Q1 2025 Results Amid Contract Renegotiations

Quarterhill Inc. reported its Q1 2025 financial results, showing a slight decline in revenue to $33.9 million from $34.9 million in Q1 2024. The company’s adjusted EBITDA was negatively impacted by $3.2 million due to ongoing renegotiations of two tolling contracts. Despite these challenges, Quarterhill secured a $40 million renewal contract to upgrade the Alameda CTC I-580 Express Lanes, with potential expansion valued at $15 million. The company also received a $3.2 million dividend from Wi-LAN Inc., which will positively affect its Q2 2025 financials. Quarterhill remains focused on its turnaround strategy, aiming for long-term success through operational enhancements and technology investments.

The most recent analyst rating on (TSE:QTRH) stock is a Buy with a C$2.60 price target. To see the full list of analyst forecasts on Quarterhill stock, see the TSE:QTRH Stock Forecast page.

Quarterhill Completes Major Toll System Projects for CTRMA

Quarterhill has successfully completed and received full system acceptance for the US 290 toll road project and CTRMA 183A Phase III, marking a significant achievement in deploying advanced toll collection systems. This accomplishment not only enhances regional mobility but also reinforces Quarterhill’s reputation as an innovator in tolling technology. The projects, which include automated toll systems and improved traffic flow, are expected to boost economic growth and provide a superior travel experience in the region.

The most recent analyst rating on (TSE:QTRH) stock is a Buy with a C$2.60 price target. To see the full list of analyst forecasts on Quarterhill stock, see the TSE:QTRH Stock Forecast page.

Quarterhill Announces Shareholder Meeting Results and Strategic Decisions

Quarterhill Inc. announced the results of its Annual General and Special Meeting of shareholders, where key decisions were made. Shareholders elected a new Board of Directors, appointed Ernst & Young Canada LLP as auditors, and approved an amendment to the company’s 2018 Equity Incentive Plan. These decisions are expected to influence the company’s strategic direction and operational efficiency, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (TSE:QTRH) stock is a Buy with a C$2.60 price target. To see the full list of analyst forecasts on Quarterhill stock, see the TSE:QTRH Stock Forecast page.

Quarterhill to Release Q1 2025 Financial Results

Quarterhill Inc. announced it will release its Q1 2025 financial results on May 15, 2025, with a conference call and webcast hosted by CEO Chuck Myers and Interim CFO Morgan Demkey. This announcement is significant as it provides stakeholders with insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor relations.

Quarterhill Announces Virtual Shareholders Meeting and Board Nominees

Quarterhill Inc. announced its upcoming virtual Annual and Special Meeting of Shareholders scheduled for May 12, 2025. The meeting will feature the election of six nominees to the Board of Directors, including two new nominees, Asha Daniere and Stephen A. Smith, who bring extensive governance, legal, and financial expertise. This strategic move aims to enhance the Board’s diversity and expertise, supporting Quarterhill’s growth opportunities and long-term shareholder value.