Quarterhill (QTRH) Investor presentation summary

Business and market positioning

• Intelligent transportation offerings span tolling, Commercial Vehicle & Enforcement, and multi-modal transportation, with customers in 50+ countries.

• Tolling modernization targets more accurate revenue collection and improved contract economics; Commercial Vehicle & Enforcement offers 40%+ gross margins and growth in weigh-in-motion, classification, and sensing.

• AI capabilities include vehicle fingerprinting, automated image review, predictive analytics, anomaly detection, and violation risk scoring to improve accuracy and reduce manual intervention.

• A unified data lakehouse and modular, cloud-native platform support analytics, customer-system integration, and faster deployment of new AI modules.

Financial performance and visibility

• Q2 2026 revenue was $42.5M, gross margin 29%, and Adjusted EBITDA $4.6M.

• Q2 2026 marked the fourth consecutive quarter of positive Adjusted EBITDA; margin gains reflect stronger project economics, cost discipline, and operating leverage.

• Cash and cash equivalents increased from $14.7M at Mar. 31, 2026 to $26.2M at Jun. 30, 2026.

• Legacy contracted backlog was $415.3M, comprising $372.4M in Tolling and $43.0M in Commercial Vehicle & Enforcement, providing multi-year revenue visibility.

Conduent tolling acquisition

• Definitive agreement announced June 30, 2026 to acquire substantially all assets of Conduent’s tolling solutions business; closing expected in Q4 2026, subject to customary conditions and TSX approval.

• Acquisition is expected to approximately triple the tolling revenue base and create a scaled platform across electronic tolling, back-office operations, and roadside systems.

• Pro forma combined backlog is ~ $2B; combined annual revenue is $400M+ with a 10–15% Adjusted EBITDA margin after planned synergies.

• Consideration includes $70.0M cash, subject to customary adjustments and funded through debt, plus shares representing 7.0% of issued and outstanding shares.