Quarterhill (QTRH) Q2 2026 earnings summary

Executive summary

• Achieved $42.5 million in Q2 2026 revenue and $4.6 million adjusted EBITDA (11% margin), marking the strongest profitability in over three years and the fourth consecutive quarter of positive adjusted EBITDA.

• Revenue was slightly down from $43.1 million in Q2 2025, mainly due to lower tolling project activity, partially offset by growth in commercial vehicle and enforcement business.

• Secured major new contracts in Utah, Illinois, Oklahoma, South Korea, and Thailand, demonstrating ability to win new business and expand existing relationships.

• Announced acquisition of Conduent's tolling solutions business, expected to triple tolling revenue, expand backlog to $2 billion, and make the company the second-largest tolling operator in the U.S., with closing expected in Q4 2026.

• Integration planning for the acquisition is progressing well, with significant synergies identified.

Financial highlights

• Q2 2026 revenue was $42.5 million, down 1% year-over-year; first six months 2026 revenue grew 5% to $81.1 million.

• Q2 gross profit was $12.2 million (29% margin), up from $6.3 million (15% margin) in Q2 2025, driven by restructuring and improved contract economics.

• Adjusted EBITDA improved to $4.6 million (11% margin) from a loss of $2.7 million (-6% margin) in Q2 2025.

• Net loss for Q2 2026 was $5.6 million ($0.05 per share), compared to $6.8 million ($0.06 per share) in Q2 2025.

• Cash from operations in Q2 was $5.7 million, compared to a use of $4.6 million in the prior year; cash and cash equivalents increased to $26.2 million at June 30, 2026, from $14.7 million at March 31, 2026.

Outlook and guidance

• Commercial opportunity pipeline remains above $2 billion.

• Acquisition of Conduent expected to close in Q4 2026, with pro forma annual revenue projected at over $400 million and adjusted EBITDA margin of 10%-15%.

• Combined revenue backlog post-acquisition will be approximately $2 billion, providing strong visibility into future revenue.

• Targeting 10%-15% EBITDA margin by 2027 post-integration.

• Management expects continued margin expansion and growth in the organic pipeline, supported by strong industry demand and infrastructure modernization funding.