Quarterhill (QTRH) Q1 2026 earnings summary

Executive summary

• Achieved 14% year-over-year revenue growth in Q1 2026, reaching $38.6 million, with 28% gross margins and third consecutive quarter of positive Adjusted EBITDA.

• Operational performance strengthened by new contract wins in key U.S. markets, including tolling and commercial vehicle segments, and a revamped capital structure.

• Completed organizational restructuring, balance sheet cleanup, and refinancing, positioning for scalable growth.

• Focused on scaling AI-first platform and pursuing both organic and inorganic growth, supported by a $100 million accordion facility and top M&A advisors.

• Management emphasizes focus on both organic growth and accretive M&A for 2026.

Financial highlights

• Q1 2026 revenue was $38.6 million, up from $33.9 million in Q1 2025, a 14% increase year-over-year, primarily from commercial vehicle and enforcement business growth.

• Gross margin improved to 28% from 12% in Q1 2025, a 1,600 basis point increase, with gross profit at $10.7 million versus $3.9 million.

• Adjusted EBITDA was $2 million, up from -$3.4 million in Q1 2025, marking a $5.5 million improvement.

• Net loss narrowed to $5.2 million (or $0.04 per share) from $8.4 million (or $0.07 per share) year-over-year.

• Ended Q1 2026 with $14.7 million in cash, down from $24.8 million at year-end 2025, due to working capital fluctuations.

Outlook and guidance

• Expect continued positive Adjusted EBITDA and margin expansion through 2026 and 2027 as recurring and software-enabled revenue grows.

• Targeting double-digit EBITDA margins in 2026, with a goal of reaching 20% EBITDA by the end of 2027.

• Backlog provides multi-year revenue visibility, with $428.8 million as of March 31, 2026, and 60%-72% of annual revenue typically secured at the start of each year.

• Forward-looking statements highlight expectations for operational enhancements, technology investment, and contract execution.