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Gross Margin Expansion and Positive Adjusted EBITDA Highlight Q3 Progress

Quarterhill Demonstrates Strong Improvement in Profitability and Operational Execution

TORONTO, Nov. 6, 2025 /PRNewswire/ - Quarterhill Inc. ("Quarterhill" or the "Company") (TSX: QTRH) (OTCQX: QTRHF), a leading provider of tolling and enforcement solutions in the Intelligent Transportation System ("ITS") industry, announces its financial results for the three and nine months ended September 30, 2025. All financial information in this press release is reported in United States ("US") dollars, unless otherwise indicated.

Quarterhill delivered another quarter of significant progress in its turnaround strategy, achieving substantial gross margin expansion, positive Adjusted EBITDA and positive operating cash flow. The Company also continued to strengthen its balance sheet while advancing its multi-year plan to drive sustained profitability and margin growth across its business units.

Q3 2025 Highlights

• Revenue for Q3 2025 was $39.7 million, up from $38.0 million in Q3 2024.
• Gross margin¹ percentage for Q3 2025 improved to 26%, compared to 13% in Q3 2024.
• Cash generated from operations for Q3 2025 was $6.4 million, up significantly compared to cash used in operations of $1.7 million in Q3 2024.
• Cash and cash equivalents were $24.1 million at September 30, 2025.
• Adjusted EBITDA² for Q3 2025 was $1.4 million, an improvement compared to ($2.8) million in Q3 2024, marking the Company's first positive Adjusted EBITDA quarter since Q4 2024.
• Revenue backlog³ was $427 million at September 30, 2025.
• Restructuring announced in July expected to yield annualized savings of approximately $12 million.

"Q3 marks an important inflection point for Quarterhill," said Chuck Myers, CEO at Quarterhill. "We're beginning to see the results of our turnaround take hold, reflected in significant margin expansion, positive Adjusted EBITDA and strong cash generation. Gross margin improved to 26%, our highest level in more than two years, as we delivered better project execution, disciplined cost management and a more profitable revenue mix."

"Our Safety & Enforcement unit continues to perform exceptionally well, delivering gross margins above 40%, while our Tolling business is benefiting from restructuring actions and improved contract terms. With a robust $427 million revenue backlog³, a roughly $2 billion pipeline, and a strengthened balance sheet, we're now focused on accelerating growth and expanding profitability as we position Quarterhill as a leading, technology-driven ITS platform company."

Q3 2025 and Year-to-Date Financial Review
Quarterhill's Management's Discussion and Analysis and Financial Statements for the three and nine months ended September 30, 2025 are available at the Company's website and at its profile at SEDAR+.

Revenues for the three and nine months ended September 30, 2025, were $39.7 million and $116.7 million compared to $38.0 million and $114.4 million in the same periods last year. The increase in revenue for Q3 was due to growth in both the Company's tolling and safety and enforcement business units, while the increase for the year-to-date period was due to growth in the safety and enforcement unit.

Gross profit¹ as a value and as a percentage of revenues may be subject to significant variance in each reporting period due to the nature and type of contract and service work performed and currency volatility. Gross profit for the three and nine months ended September 30, 2025, was $10.5 million and $20.7 million, or 26% and 18%, as compared to $5.1 million and $20.0 million, or 13% and 17%, in the same periods last year. The increase for Q3 and the year-to-date period was primarily due to the restructuring, improved margins on certain tolling contracts and continued strong margin performance from the safety and enforcement unit.

Total operating expenses are comprised of selling, general and administrative costs ("SG&A"), research and development ("R&D") costs, depreciation, amortization of intangible assets and other charges. Total operating expenses for the three and nine months ended September 30, 2025, were $13.7 million and $37.8 million compared to $11.3 million and $32.5 million in the same periods last year. The increase for Q3 is primarily due to higher costs related to stock-based compensation, recruitment, technical consulting, facilities, R&D and other charges. The increase for the year-to-date period is due to similar factors, offset, in part, by a decrease in depreciation and amortization expenses and certain other charges.

Adjusted EBITDA² for the three and nine months ended September 30, 2025, was $1.4 million and ($4.7) million compared to ($2.8) million and ($0.9) million in the same periods last year. The increase in Adjusted EBITDA¹ for Q3 was primarily due to the factors impacting revenue, gross margin and expenses, as previously described.  

Net loss for the three and nine months ended September 30, 2025, was ($4.7) million and ($19.9) million, or ($0.04) and ($0.17) per diluted share, compared to net losses of ($4.1) million and ($11.3) million, or ($0.04) and ($0.10) per diluted share, in the same periods last year.

Cash generated from (used in) operations for the three and nine months ended September 30, 2025, was $6.4 million and ($1.7) million compared to cash used in operations of ($1.7) million and ($11.0) million in the same periods last year. Cash and cash equivalents were $24.1 million at September 30, 2025, compared to $22.7 million at June 30, 2025, and $31.9 million at December 31, 2024. The Company made long-term debt repayments of $3.1 million in Q3.

Conference Call and Webcast

Quarterhill will host a conference call to discuss its financial results on Thursday, November 6, 2025, at 8:30 AM Eastern Time.

Webcast Information

• Live audio webcast will be available at: https://app.webinar.net/wKbvGMAGMOY
• Webcast replay will be available at: https://app.webinar.net/wKbvGMAGMOY

Traditional Dial-in Information

• To access the call from the U.S. and Canada, dial 1.888.699.1199 (Toll Free)
• To access the call from other locations, dial 1.416.945.7677 (International)

Rapidconnect
To instantly join the conference call by phone, please use the following URL to easily register and be connected into the conference call automatically: https://emportal.ink/3L4bqmo        

Telephone Replay
Telephone replay will be available from November 6, 2025, until November 13, 2025, at: 1.888.660.6345 (Toll Free North America) or 1.289.819.1450.

Conference ID: 15004 and Replay Passcode: 15004 #

Non-IFRS Financial Measures and Non-IFRS Ratios
Quarterhill uses both IFRS and certain non-IFRS financial measures to assess performance. Non-IFRS financial measures are financial measures disclosed by a company that (a) depict historical or expected future financial performance, financial position or cash flow of a company, (b) with respect to their composition, exclude amounts that are included in, or include amounts that are excluded from, the composition of the most directly comparable financial measure disclosed in the primary financial statements of the company, (c) are not disclosed in the financial statements of the company, and (d) are not a ratio, fraction, percentage or similar representation. Non-IFRS ratios are financial measures disclosed by a company that are in the form of a ratio, fraction, percentage or similar representation that has a non-IFRS financial measure as one or more of its components, and that are not disclosed in the financial statements of the company.

These non-IFRS financial measures and non-IFRS ratios are not standardized financial measures under IFRS, and, therefore, are unlikely to be comparable to similar financial measures presented by other companies. Management believes these non-IFRS financial measures and non-IFRS ratios provide transparent and useful supplemental information to help investors evaluate our financial performance, financial condition, and liquidity using the same measures as management. These non-IFRS financial measures and non-IFRS ratios should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with IFRS.

Adjusted EBITDA - Non-IFRS Financial Measures

We use the non-IFRS financial measure "Adjusted EBITDA" to mean net loss adjusted for (i) income taxes, (ii) finance expense or income; (iii) amortization and impairment of intangibles; (iv) other charges and other one-time items; (v) depreciation of right-of-use assets and property, plant and equipment; (vi) stock-based compensation; (vii) foreign exchange (gain) loss ; (viii) other (income) expense; and (ix) changes in fair value of derivative liability. Adjusted EBITDA is used by our management to assess our normalized cash generated on a consolidated basis. Adjusted EBITDA is also a performance measure that may be used by investors to analyze the cash generated by Quarterhill. Adjusted EBITDA should not be interpreted as an alternative to net income (loss) and cash flows from operations as determined in accordance with IFRS or as measure of liquidity. The most directly comparable IFRS financial measure is net income (loss). See Reconciliation of Net Loss to Adjusted EBITDA below.

Adjusted EBITDA per share – Non-IFRS Ratio

Adjusted EBITDA per share is calculated as Adjusted EBITDA divided by the basic weighted average of common shares. Adjusted EBITDA per share is used by our management and investors to analyze cash generated by Quarterhill on a per share basis. The most comparable IFRS measure is earnings per share. See Reconciliation of Net Loss to Adjusted EBITDA below.

Backlog - Non-IFRS Financial Measure

We use the non-IFRS measure "backlog" to mean the total value of work that has not yet been completed but that in management's experience of similar situations has: (a) a high certainty of being performed pursuant to existing contracts or work orders specifying job scope, value and timing; (b) an expectation of expansion of existing contracts due to expected extensions; and/or (c) been awarded to one or more of our ITS operating subsidiaries as evidenced by a binding contract or where the finalization of a binding contract is reasonably assured. Activities under such contracts may cover a period of up to 15 years. We do not include in "backlog" the value of any expected but unsigned change orders that management considers may apply to such contracts.

Supplementary Financial Measures
Supplementary financial measures are financial measures disclosed by a company that (a) are, or are intended to be, disclosed on a periodic basis to depict the historical or expected future financial performance, financial position or cash flow of a company, (b) are not disclosed in the financial statements of the company, (c) are not non-IFRS financial measures, and (d) are not non-IFRS ratios. Key supplementary measures disclosed are as follows:

Gross margin %
Calculated as gross profit as a percentage of revenue.

About Quarterhill
Quarterhill is a global leader in the Intelligent Transportation System (ITS) industry, advancing mobility through smart infrastructure solutions that reduce congestion, improve roadway safety, and create more sustainable travel. Each year, Quarterhill's platforms process billions of transactions, perform compliance and safety inspections on millions of commercial vehicles, and enable transportation agencies worldwide to optimize thousands of lanes of traffic to improve travel for everyone. Leveraging advanced artificial intelligence and machine learning technologies, Quarterhill's platform delivers automation and predictive insight to help agencies manage transportation networks more efficiently. By working in close partnership with governments, communities, and industry leaders, Quarterhill is building today's connected roadways while shaping the next generation of intelligent, resilient mobility. Quarterhill is listed on the TSX under the symbol QTRH and on the OTCQX Best Market under the symbol QTRHF. For more information: www.quarterhill.com.

Forward-looking Information
This news release contains forward-looking information and forward-looking statements within the meaning of applicable Canadian securities laws (collectively, "forward-looking statements") regarding Quarterhill, its operating subsidiaries and their respective businesses. Such forward-looking statements relate to future events, conditions or future financial performance of ‎Quarterhill based on future economic conditions and courses of action. All statements other ‎than statements of historical fact may be forward-looking statements. Such forward-looking statements ‎are often, but not always, identified by the use of any words such as "seek", "anticipate", "budget", ‎‎"plan", "goal", and similar expressions. These statements involve known and unknown risks, assumptions, ‎uncertainties and other factors that may cause actual results or events to differ materially from those ‎anticipated in such forward-looking statements. The Company believes the expectations reflected in ‎those forward-looking statements are reasonable, but no assurance can be given that these expectations ‎will prove to be correct and such forward-looking statements included in this news release should not be ‎unduly relied upon.‎ In particular, this news release contains forward-looking statements pertaining to, but not limited to, the ‎following: operational and financial expectations for the 2025 financial year, including revenue, gross margin and Adjusted EBITDA expectations; the Company's business plan and strategy, and outcomes thereof; the outcome of renegotiation efforts and mediation relating to our tolling contracts; the impact of contract renegotiation on our financial performance; the results of operational enhancements and technology investment by the Company; the anticipated cost savings from the restructuring; the Company's ability and path to achieve revenue growth, margin expansion and positive cash flow; and the impact of the Company's workforce reduction on the Company's operations, financial position and results.

‎Although the forward-looking statements contained in this news release are based upon assumptions ‎which management of the Company believes to be reasonable, the Company cannot assure investors ‎that actual results will be consistent with these forward-looking statements. With respect to forward-‎looking statements contained in this news release, the Company has made assumptions regarding, but ‎not limited to: the Company's ability to execute on its business plan; successful integration of acquisitions; general economic and industry trends; operating assumptions relating to the ‎Company's operations; demand for the Company's products and services; cost estimates for fixed price contracts; successful renegotiation of our tolling contracts on terms acceptable and favourable to the Company; and the other assumptions set forth in the ‎Company's most recent annual information form available under the Company's profile on SEDAR+ ‎at www.sedarplus.ca.‎

The Company's actual results could differ materially from those anticipated in the forward-looking ‎statements, as a result of numerous known and unknown risks and uncertainties and other factors ‎including, but not limited to: changes in demand for the Company's products and services; general economic, ‎political, market and business conditions, including fluctuations in interest rates, foreign exchange rates, ‎stock market volatility; reliance on key management personnel; risks related to competition within the Company's industry and relating to technological advances; litigation risks; cyber-security risks; fixed price contracts may result in unexpected costs to the Company; risks of health epidemics, pandemics and similar ‎outbreaks; the tolling contracts not successfully being renegotiated on terms acceptable or favourable to the Company, or at all; and the other risks set forth in the Company's most recent annual information form ‎and management's discussion and analysis for the three and twelve months ended December 31, 2024 available under the Company's profile on SEDAR+ at www.sedarplus.ca.‎

The Company's actual results, performance or achievement could differ materially from those ‎expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be ‎given that any of the events anticipated by the forward-looking statements will transpire or occur, or if ‎any of them do so, what benefits the Company will derive therefrom. Readers are therefore cautioned ‎that the foregoing lists of important factors are not exhaustive, and they should not unduly rely on the ‎forward-looking statements included in this news release. All forward-looking statements contained in this news release are expressly ‎qualified by this cautionary statement. Quarterhill has no intention, and undertakes no obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

This news release contains "future-oriented financial information" and "financial outlooks" within the meaning of applicable Canadian securities laws (collectively, "FOFI"), including about the financial results, revenue, gross margin and Adjusted EBITDA of Quarterhill for the year ended December 31, 2025. FOFI, as with forward-looking ‎statements ‎generally, are, without limitation, based on the assumptions and qualifications, and are subject to the risks set out ‎above in respect of forward-looking statements. Quarterhill's actual financial position and results of operations may differ materially from ‎management's ‎current expectations and, as a result, the Company's financial results may differ ‎materially from ‎the FOFI provided in this news release. The Company and its management believe that the FOFI has been prepared on a reasonable basis, reflecting management's best estimates and judgments and the FOFI contained in this news release was approved by management as of the date hereof, for purposes of providing further information about the Company's future business operations and results. However, because this information is subjective and subject to numerous risks and assumptions, it should not be relied on as necessarily indicative of future results. Except as required by applicable securities laws, the Company undertakes no obligation to update such FOFI. Readers are cautioned that the FOFI contained in this news release should not be used for purposes other than for which it is disclosed herein, and such information is ‎presented for ‎illustrative purposes only and may not be an indication of the Company's actual ‎financial position or ‎results of operations.‎

1,Please refer to Gross Margin % in the Supplementary Financial Measures section for further information.

2.Please refer to the Adjusted EBITDA Non-IFRS Financial Measures section for further information.

3.Please refer to the Backlog - Non-IFRS Financial Measure section for further information.

Interim Condensed Consolidated Statements of Loss and Comprehensive Loss
(in thousands and in United States dollars, except share and per share amounts)

View original content:https://www.prnewswire.com/news-releases/quarterhill-announces-q3-2025-financial-results-302606849.html

SOURCE Quarterhill Inc.

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• Quarterhill subsidiary IRD will install Weigh-In-Motion technology at 28 sites on various Interstate and State Routes.
• The sites will collect vehicle data related to road infrastructure protection and monitor commercial vehicle routes to improve highway safety.

SASKATOON, SK, March 7, 2024 /PRNewswire/ - Quarterhill Inc. ("Quarterhill" or the "Company") (TSX: QTRH) (OTCQX: QTRHF), a leading provider of tolling and enforcement solutions in the Intelligent Transportation System ("ITS") industry, announces that its wholly-owned subsidiary, International Road Dynamics Inc. ("IRD"), has been awarded a $5.3 million contract by the Tennessee Department of Transportation ("TDOT") to install Weigh-In-Motion ("WIM") systems at 28 sites on interstate and state routes across Tennessee. Installation is expected to be completed in May 2025. All financial information in this press release is reported in Canadian dollars.

TDOT is promoting the advancement of WIM in the state through the development of a statewide WIM program. The WIM systems will capture and record axle weights and gross vehicle weights as vehicles drive over the measurement sites at highway speeds. The sites will provide data on commercial vehicle characteristics in certain transit corridors for asset management and design improvements.

Some of the WIM sites are co-located with enforcement sites operated by the Tennessee Highway Patrol, who will integrate their commercial vehicle inspection program with the WIM data. In addition to collecting data, the WIM systems will be able to determine if trucks are overloaded so they can be routed to inspection stations for ticketing, thus cutting down on excessive highway wear-and-tear and the number of unsafe vehicles on the road. There is also the potential for future upgrades of the sites with E-screening technology to automate the evaluation of driver and trucking company safety ratings, resulting in enhanced enforcement capabilities and further improvements to highway safety.

"We are pleased to collaborate with TDOT on this project to elevate highway safety and efficiency in Tennessee," said Chuck Myers, CEO of Quarterhill. "The deployment of advanced WIM systems will provide vital data to facilitate effective enforcement, enhance asset management, and significantly improve the safety of Tennessee's highways. This project is our first major initiative in Tennessee, and we look forward to exploring opportunities to expand our footprint further in the State."

About Quarterhill
Quarterhill is a leading provider of tolling and enforcement solutions in the Intelligent Transportation System (ITS) industry. Our goal is global leadership in ITS, via organic growth of the Electronic Transaction Consultants, LLC (ETC) and International Road Dynamics Inc. (IRD) platforms, and by continuing an acquisition-oriented investment strategy that capitalizes on attractive growth opportunities within ITS and its adjacent markets. Quarterhill is listed on the TSX under the symbol QTRH and on the OTCQX Best Market under the symbol QTRHF. For more information, visit www.quarterhill.com.

About IRD
IRD is a dynamic technology company engaged in developing key components and advanced systems for the next generation of transportation networks. Together with subsidiaries PAT Traffic and IRD Europe (ICOMS Detections, Sensor Line and VDS), IRD supplies Intelligent Transportation Systems (ITS) to private corporations, transportation agencies, and highway authorities around the world. IRD's systems make highways safer, greener, and more efficient. Known globally as a trusted partner providing sales, service, and installation support on major ITS projects for over 40 years, IRD contributes to creating smarter cities by empowering engineering and urban planning professionals to access reliable traffic data. For more information, visit www.irdinc.com

Forward-looking Information
This news release contains forward-looking statements regarding Quarterhill, its operating subsidiaries and their respective businesses. Forward-looking statements are based on estimates and assumptions made by Quarterhill in light of its experience and its perception of historical trends, current conditions, expected future developments and the expected effects of new business strategies, as well as other factors that Quarterhill believes are appropriate in the circumstances. The forward-looking events and circumstances discussed herein may not occur and could differ materially as a result of known and unknown risk factors and uncertainties affecting Quarterhill, which include, without limitation, the risks described in Quarterhill's March 22, 2023 annual information form for the year ended December 31, 2022 (the "AIF"). In addition, readers are also urged to review the additional risk factors disclosed in our Management's Discussion and Analysis for the three and nine months ended September 30, 2023 filed on www.sedarplus.ca. Quarterhill recommends that readers review and consider all of these risk factors and notes that readers should not place undue reliance on any of Quarterhill's forward-looking statements. Quarterhill has no intention, and undertakes no obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

View original content:https://www.prnewswire.com/news-releases/quarterhill-awarded-5-3-million-tennessee-statewide-weigh-in-motion-contract-302082425.html

SOURCE Quarterhill Inc.

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• Mr. Vineet Khosla, AI and Machine Learning Pioneer, joins the Board of Directors

TORONTO, Aug. 9, 2024 /PRNewswire/ - Quarterhill Inc. ("Quarterhill" or the "Company") (TSX: QTRH) (OTCQX: QTRHF), a leading provider of tolling and enforcement solutions in the Intelligent Transportation System ("ITS") industry, announces its financial results for the three and six months ended June 30, 2024. All financial information in this press release is reported in United States ("US") dollars, unless otherwise indicated.

Quarterhill has changed the presentation currency of its financial statements to US dollars, its functional currency. A significant proportion of the Company's sales, expenses, assets, and liabilities are denominated in US dollars. This change in presentation currency aims to enhance external stakeholders' ability to assess Quarterhill's financial performance and to reduce the impact of foreign exchange volatility.

Q2 2024 Highlights

• Revenue was $41.5 million, up 7.5% compared to $38.6 million in Q2 2023.
• Adjusted EBITDA¹ was $1.7 million compared to $2.9 million in Q2 2023.
• Cash from operations was $0.8 million compared to cash used in operations of ($10.3) million in Q2 2023.
• Revenue backlog³ was $500 million at June 30, 2024.
• Completed acquisition of Red Fox I.D. Limited ("Red Fox"), expanding the Company's software offerings.
• Red Fox won two prestigious King's Awards: one for innovation and one for excellence in international trade.

"Q2 saw continued execution on our goals to drive top-line growth, expand Adjusted EBITDA margin and improve cash flow," said Chuck Myers, CEO at Quarterhill. "Adjusted EBITDA margin grew sequentially from Q1, and we anticipate continued progress in growing our margin throughout the year. Additionally, we generated positive cash flow from operations for the first time in two years and expect our cash balance to grow through the end of the year."

"Our two business units – tolling and enforcement – made progress in Q2 on their ongoing projects as well as closing new business, resulting in a contracted revenue backlog of $500 million at quarter end. We remain focused on leveraging the improvements we've made in the past year to our project management and contract bidding processes to grow these leading businesses. At the same time, we continue to work to increase our market reach through operational integration, exploring new opportunities in Europe, penetrating the logistics sector and building-out our suite of software solutions, in particular with artificial intelligence (AI) applications."

Board of Directors Update

Quarterhill announces that Vineet Khosla, Chief Technology Officer at the Washington Post, has joined the Board of Directors, effective immediately. Mr. Khosla has an extensive track record as an innovator and executive at some of the world's largest technology companies. A pioneering researcher and leading voice in AI, machine learning, and cloud computing, he has driven significant advancements in these fields.

Since joining the Washington Post in 2023, Mr. Khosla has led the engineering team, executing the next phase of the company's innovation strategy. Prior to the Post, Vineet served as Senior Engineering Manager at Uber, where he was responsible for the development of their map routing engine, which optimizes routes and timing. Before his tenure at Uber, he was the first engineering hire for Siri's natural language engine at Apple, where he spent over eight years in senior engineering roles, developing and managing Siri's AI engine. Mr. Khosla holds a Master's in AI from the University of Georgia, earned in 2005.

"We are very pleased to welcome Vineet to the Board," said Rusty Lewis, Chair of the Board at Quarterhill. "His deep expertise in AI and machine learning, combined with his experience at the intersection of transportation and technology, will play a key role in the development of our product roadmap and our push to expand the software side of our business."

Q2 2024 Financial Review

Quarterhill's Management's Discussion and Analysis and financial statements for the three and six months ended June 30, 2024 are available at the Company's website and at its profile at SEDAR+.

Financial statements for the three and six months ended June 30, 2023, have been prepared to reflect continuing operations, and therefore, exclude results during that period from Wi-LAN Inc. ("WiLAN"), which was sold by Quarterhill on June 15, 2023.

Revenues for the three and six months ended June 30, 2024, were $41.5 million and $76.4 million, up 7.5% and 14%, respectively, compared to $38.6 million and $67.0 million in the three and six months ended June 30, 2023. The increase in revenues was due to increased activity and improved performance with North American project revenue.

Gross profit² as a value and as a percentage of revenues may be subject to significant variance in each reporting period due to the nature and type of contract and service work performed. Gross profit for the three and six months ended June 30, 2024, was $8.5 million and $14.9 million, or 21% and 19%, as compared to $10.0 million and $13.8 million, or 26% and 21%, in the three and six months ended June 30, 2023. While gross profit margin percentage has increased on a sequential quarterly basis, the year-over-year decreases compared to the prior year periods were primarily due to one tolling project that is in the maintenance phase but experiencing a transitory period of lower-than-expected margin. The year-over-year decreases in gross profit margin were partially offset by continued strong performance in the Company's enforcement operations.

Total operating expenses are comprised of selling, general and administrative costs ("SG&A"), research and development ("R&D") costs, depreciation, amortization of intangible assets and other charges. Total operating expenses for the three and six months ended June 30, 2024, were $10.8 million and $21.2 million compared to $10.6 million and $22.2 million in the three and six months ended June 30, 2023. The year-over-year changes were primarily due to lower R&D expenses and other charges offset by higher SG&A.

Adjusted EBITDA¹ for the three and six months ended June 30, 2024, was $1.7 million and $1.8 million compared to $2.9 million and ($0.9) million for the three and six months ended June 30, 2023. The decrease in Adjusted EBITDA for the three months ended June 30, 2024, compared to the prior year period, was due to lower gross profit as previously explained, and offset, in part, by increased revenue and lower operating expenses. This increase in Adjusted EBITDA for the six months ended June 30, 2024, compared to the prior year period, was due to higher revenue and lower operating expenses.

Net loss from continuing operations for the three and six months ended June 30, 2024, was ($3.0) million and ($7.2) million, or ($0.03) and ($0.06) per diluted share, compared to a net loss from continuing operations of ($10.2) million and ($19.3) million, or ($0.09) and ($0.17) per diluted share, for the three and six months ended June 30, 2023.

Cash generated (used) in continuing operations for the three and six months ended June 30, 2024, was $0.8 million and ($9.3) million compared to cash used in continuing operations of ($6.9) million and ($13.5) million for the three and six months ended June 30, 2023.

Cash and cash equivalents were $24.0 million at June 30, 2024, compared to $42.7 million at December 31, 2023. The uses of cash in the three months ended June 30, 2024, included a net amount of $4.9 million spent on the acquisition of Red Fox.

Adjusted Working Capital⁴ was $68.4 million at June 30, 2024, compared to $78.9 million at December 31, 2023. Due to the nature of the Company's business activities, operating cash flows may vary significantly between periods due to changes and timing in working capital balances.

1. Please refer to the Adjusted EBITDA Non-IFRS Financial Measures section for further information.

2. Please refer to Gross Margin % in the Supplementary Financial Measures section for further information.

3. Please refer to the Backlog - Non-IFRS Financial Measures section for further information.

4. Please refer to the Adjusted Working Capital - Non-IFRS Financial Measures section for further information.

Conference Call and Webcast
Quarterhill will host a conference call to discuss its financial results on Friday, August 9, 2024, at 10:00 AM Eastern Time.

Webcast Information

• Live audio webcast will be available at: https://app.webinar.net/E0GnDAr2wRQ
• Webcast replay will be available at: https://app.webinar.net/E0GnDAr2wRQ

Traditional Dial-in Information

• To access the call from the U.S. and Canada, dial 1.800.836.8184 (Toll Free)
• To access the call from other locations, dial 1.289.819.1350 (International)

Rapidconnect
To instantly join the conference call by phone, please use the following URL to easily register and be connected into the conference call automatically: https://emportal.ink/4cZxWpC

Telephone Replay
Telephone replay will be available from August 9, 2024, until August 16, 2024, at: 1.888.660.6345 (Toll Free North America) or 1.289.819.1450.

Conference ID: 52352 and Replay Passcode: 52352#

Non-IFRS Financial Measures and Non-IFRS Ratios
Quarterhill uses both IFRS and certain non-IFRS financial measures to assess performance. Non-IFRS financial measures are financial measures disclosed by a company that (a) depict historical or expected future financial performance, financial position or cash flow of a company, (b) with respect to their composition, exclude amounts that are included in, or include amounts that are excluded from the composition of the most directly comparable financial measure disclosed in the primary financial statements of the company, (c) are not disclosed in the financial statements of the company and (d) are not a ratio, fraction, percentage or similar representation. Non-IFRS ratios are financial measures disclosed by a company that are in the form of a ratio, fraction, percentage or similar representation that has a non-IFRS financial measure as one or more of its components, and that are not disclosed in the financial statements of the company.

These non-IFRS financial measures and non-IFRS ratios are not standardized financial measures under IFRS, and, therefore, are unlikely to be comparable to similar financial measures presented by other companies. Management believes these non-IFRS financial measures and non-IFRS ratios provide transparent and useful supplemental information to help investors evaluate our financial performance, financial condition, and liquidity using the same measures as management. These non-IFRS financial measures and non-IFRS ratios should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with IFRS.

Adjusted EBITDA - Non-IFRS Financial Measures

We use the non-IFRS financial measure "Adjusted EBITDA" to mean net (loss) income adjusted for (i) income taxes, (ii) finance expense or income; (iii) amortization and impairment of intangibles; (iv) other charges and other one-time items; (v) depreciation of right-of-use assets and property, plant and equipment; (vi) stock- based compensation; (vii) foreign exchange (gain) loss; and (viii) other income which includes equity in earnings from joint ventures; (ix) dividends received from joint ventures; and * changes in fair value of derivative liability. Adjusted EBITDA is used by our management to assess our normalized cash generated on a consolidated basis. Adjusted EBITDA is also a performance measure that may be used by investors to analyze the cash generated by Quarterhill. Adjusted EBITDA should not be interpreted as an alternative to net (loss) income and cash flows from operations as determined in accordance with IFRS or as measure of liquidity. The most directly comparable IFRS financial measure is Net (loss) income.

Adjusted EBITDA per share – Non-IFRS ratio

Adjusted EBITDA per share is calculated as Adjusted EBITDA divided by the basic weighted average of common shares. Adjusted EBITDA per share is used by our management and investors to analyze cash generated by Quarterhill on a per share basis. The most comparable IFRS measure is earnings per share.

Adjusted Working Capital

Adjusted Working Capital is calculated as current assets minus current liabilities, adjusted for convertible debentures and derivative liability. Adjusted Working Capital reflects our net working capital expected to be settled in cash within twelve months.

Backlog - Non-IFRS Financial Measures

We use the non-IFRS measure "backlog" to mean the total value of work that has not yet been completed but that in management's experience of similar situations has: (a) a high certainty of being performed pursuant to existing contracts or work orders specifying job scope, value and timing; (b) an expectation of expansion of existing contracts due to expected extensions; and/or (c) been awarded to one or more of our ITS operating subsidiaries as evidenced by a binding contract or where the finalization of a binding contract is reasonably assured. Activities under such contracts may cover a period of up to 15 years. We do not include in "backlog", the value of any expected but unsigned change orders that management considers may apply to such contracts.

Supplementary Financial Measures
Supplementary financial measures are financial measures disclosed by a company that (a) are, or are intended to be, disclosed on a periodic basis to depict the historical or expected future financial performance, financial position or cash flow of a company (b) are not disclosed in the financial statement of the company, (c) are not non-IFRS financial measures, and (d) are not non-IFRS ratios.

Key supplementary measures disclosed are as follows:

Gross margin %
Calculated as gross profit as a percentage of revenue.

About Quarterhill
Quarterhill is a leading provider of tolling and enforcement solutions in the Intelligent Transportation System (ITS) industry. Our goal is technology-driven global leadership in ITS, via organic growth of our tolling and enforcement businesses, and by continuing an acquisition-oriented investment strategy that capitalizes on attractive growth opportunities within ITS and its adjacent markets. Quarterhill is listed on the TSX under the symbol QTRH and on the OTCQX Best Market under the symbol QTRHF. For more information: www.quarterhill.com.

Forward-looking Information
This news release contains forward-looking information and forward-looking statements within the meaning of applicable Canadian securities laws (collectively, "forward-looking statements") regarding Quarterhill, its operating subsidiaries and their respective businesses. Such forward-looking statements relate to future events, conditions or future financial performance of ‎Quarterhill based on future economic conditions and courses of action. All statements other ‎than statements of historical fact may be forward-looking statements. Such forward-looking statements ‎are often, but not always, identified by the use of any words such as "seek", "anticipate", "budget", ‎‎"plan", "goal", and similar expressions. These statements involve known and unknown risks, assumptions, ‎uncertainties and other factors that may cause actual results or events to differ materially from those ‎anticipated in such forward-looking statements. The Company believes the expectations reflected in ‎those forward-looking statements are reasonable, but no assurance can be given that these expectations ‎will prove to be correct and such forward-looking statements included in this news release should not be ‎unduly relied upon.‎ In particular, this news release contains forward-looking statements pertaining to, but not limited to, the ‎following: operational and financial expectations for the 2024 financial year, including revenue, gross margin and Adjusted EBITDA expectations; and the Company's business plan.

‎Although the forward-looking statements contained in this news release are based upon assumptions ‎which management of the Company believes to be reasonable, the Company cannot assure investors ‎that actual results will be consistent with these forward-looking statements. With respect to forward-‎looking statements contained in this news release, the Company has made assumptions regarding, but ‎not limited to: the Company's ability to execute on its business plan; successful integration of Red Fox; general economic and industry trends; operating assumptions relating to the ‎Company's operations; demand for the Company's products and services; cost estimates for fixed price contracts; and the other assumptions set forth in the ‎Company's most recent annual information form available under the Company's profile on SEDAR+ ‎at www.sedarplus.ca.‎

The Company's actual results could differ materially from those anticipated in the forward-looking ‎statements, as a result of numerous known and unknown risks and uncertainties and other factors ‎including, but not limited to: changes in demand for the Company's products and services; general economic, ‎political, market and business conditions, including fluctuations in interest rates, foreign exchange rates, ‎stock market volatility; reliance on key management personnel; risks related to competition within the Company's industry and relating to technological advances; litigation risks; cyber-security risks; fixed price contracts may result in unexpected costs to the Company; risks of health epidemics, pandemics and similar ‎outbreaks; and the other risks set forth in the Company's most recent annual information form ‎and management's discussion and analysis for the three and twelve months ended December 31, 2023 available under the Company's profile on SEDAR+ at www.sedarplus.ca.‎

The Company's actual results, performance or achievement could differ materially from those ‎expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be ‎given that any of the events anticipated by the forward-looking statements will transpire or occur, or if ‎any of them do so, what benefits the Company will derive therefrom. Readers are therefore cautioned ‎that the foregoing lists of important factors are not exhaustive, and they should not unduly rely on the ‎forward-looking statements included in this news release. All forward-looking statements contained in this news release are expressly ‎qualified by this cautionary statement. Quarterhill has no intention, and undertakes no obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

This news release contains "future-oriented financial information" and "financial outlooks" within the meaning of applicable Canadian securities laws (collectively, "FOFI"), including about the financial results, revenue, gross margin and Adjusted EBITDA of Quarterhill for the year ended December 31, 2024. FOFI, as with forward-looking ‎statements ‎generally, are, without limitation, based on the assumptions and qualifications, and are subject to the risks, set out ‎above in respect of forward-looking statements. Quarterhill's actual financial position and results of operations may differ materially from ‎management's ‎current expectations and, as a result, the Company's financial results may differ ‎materially from ‎the FOFI provided in this news release. The Company and its management believe that the FOFI has been prepared on a reasonable basis, reflecting management's best estimates and judgments and the FOFI contained in this news release was approved by management as of the date hereof, for purposes of providing further information about the Company's future business operations and results. However, because this information is subjective and subject to numerous risks and assumptions, it should not be relied on as necessarily indicative of future results. Except as required by applicable securities laws, the Company undertakes no obligation to update such FOFI. Readers are cautioned that the FOFI contained in this news release should not be used for purposes other than for which it is disclosed herein, and such information is ‎presented for ‎illustrative purposes only and may not be an indication of the Company's actual ‎financial position or ‎results of operations.‎

Interim Condensed Consolidated Statements of Loss and Comprehensive Loss
(in thousands and in United States dollars, except share and per share amounts)

View original content:https://www.prnewswire.com/news-releases/quarterhill-announces-q2-2024-financial-results-302218638.html

SOURCE Quarterhill Inc.

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$2.7 Million Investment Brings AI-Enabled Safety Inspection Technology to Two of Arkansas' Busiest Trucking Corridors

TORONTO, Oct. 9, 2025 /PRNewswire/ - Quarterhill Inc. ("Quarterhill" or the "Company") (TSX: QTRH) (OTCQX: QTRHF), a leading global provider of intelligent transportation system ("ITS") solutions, together with the Arkansas Department of Transportation ("ARDOT") and the Arkansas Highway Police, today announced the launch of a $2.7 million project to modernize freight operations on two of the state's most critical freight corridors. All dollar amounts are in U.S. dollars unless otherwise specified.

The initiative will deploy advanced mainline sorter systems at Lehi on I-40 Eastbound and at Marion on I-55 Southbound, two key entry points that handle some of the highest truck volumes in the nation.

Working in partnership, ARDOT, the Arkansas Highway Police, and Quarterhill are introducing an integrated suite of AI-driven and sensor-based technologies that will streamline inspection, improve safety, and keep commerce moving efficiently without the need for costly roadway expansion. These next-generation mainline sorter systems will feature:

• Weigh-in-Motion (WIM) sensors to capture truck weights at highway speeds.
• Tire Anomaly Classification System (TACS) for real-time detection of unsafe tire conditions.
• License Plate Recognition (LPR), Department of Transportation (DOT) Checks, and Intelligent Roadside Operations Computer (iROC) to verify vehicle credentials instantly.
• Fully Integrated Dynamic Message Boards to guide drivers who need further inspection.

"This project demonstrates how technical innovation and collaboration can solve real-world challenges in freight management and strengthen Arkansas' position as a national leader in freight movement," said Quarterhill CEO Chuck Myers. "By working hand in hand with ARDOT and the Arkansas Highway Police, we are ensuring that Arkansas' highways remain safe, efficient, and capable of supporting growth in interstate commerce for decades to come."

The modernized systems will help Arkansas address increasing freight volume at one of America's busiest trucking corridors while supporting ARDOT's broader mission to deliver safer, smarter, and more sustainable transportation infrastructure. The project underscores the importance of technology-driven solutions for freight corridors where expansion is challenging, but traffic volumes continue to grow. As interstate commerce continues to surge, these upgrades will ensure Arkansas remains at the forefront of efficient, safe freight movement.

"Partnering with Quarterhill allows us to bring cutting-edge tools to two of Arkansas' most important freight gateways," said Jeff Holmes, Chief of Arkansas Highway Police. "These upgrades will strengthen enforcement, improve roadway safety, and keep goods moving efficiently across our state and beyond. This initiative is a win for our economy, drivers, and communities."

This project underscores Quarterhill's commitment to working closely with transportation agencies nationwide to deliver cutting-edge ITS solutions to today's most pressing mobility challenges.

To learn more about Quarterhill, please visit the Quarterhill.com.

About Quarterhill
Quarterhill is a global leader in the Intelligent Transportation System (ITS) industry, advancing mobility through smart infrastructure solutions that reduce congestion, improve roadway safety, and create more sustainable travel. Each year, Quarterhill's platforms process billions of transactions, perform compliance and safety inspections on millions of commercial vehicles, and enable transportation agencies worldwide to optimize thousands of lanes of traffic to improve travel for everyone. Leveraging advanced artificial intelligence and machine learning technologies, Quarterhill's platform delivers automation and predictive insight to help agencies manage transportation networks more efficiently. By working in close partnership with governments, communities, and industry leaders, Quarterhill is building today's connected roadways while shaping the next generation of intelligent, resilient mobility. Quarterhill is listed on the TSX under the symbol QTRH and on the OTCQX Best Market under the symbol QTRHF. For more information, please visit: www.quarterhill.com.

Forward-looking Information
This news release contains forward-looking information and forward-looking statements within the meaning of applicable Canadian securities laws (collectively, "forward-looking statements"). Such forward-looking statements relate to future events, conditions or future financial performance of ‎Quarterhill based on future economic conditions and courses of action. All statements other ‎than statements of historical fact may be forward-looking statements. Such forward-looking statements ‎are often, but not always, identified by the use of any words such as "seek", "anticipate", "budget", ‎‎"plan", "goal", "expect" and similar expressions.

Forward-looking statements involve known and unknown risks, assumptions, ‎uncertainties and other factors that may cause actual results or events to differ materially from those ‎anticipated in such forward-looking statements. Material risk factors that could cause actual results to differ materially from the forward-looking statements contained in this news release include, among others, demand for Quarterhill's products and services; general economic and market conditions; competition; risks relating to technological advances and cyber-security; force majeure risks; risks associated with operations in foreign countries, including but not limited to changes in government policies, political or economic instability, currency fluctuations, difficulties in enforcing contracts and intellectual property rights, differing regulatory and legal requirements, and potential difficulties in repatriating funds; and other risks set forth in the Company's most recent annual information form available on SEDAR+ at www.sedarplus.ca.

The Company believes the expectations reflected in ‎the forward-looking statements are reasonable, but no assurance can be given that these expectations ‎will prove to be correct and such forward-looking statements included in this news release should not be ‎unduly relied upon.‎ Material factors and assumptions used to develop the forward-looking statements contained in this news release include, among others: Quarterhill's ability to execute on its business plan; demand for Quarterhill's products and services; operating assumptions; and financial projections and cost estimates. The foregoing lists are not exhaustive. Additional information on these and other factors which could affect the Company's operations or financial results are included in the Company's most recent annual information form and other public documents on file with the Canadian Securities regulatory authorities on www.sedarplus.ca.

The forward-looking statements represent the Company's views as at the date of this news release. There can be no assurance that forward-looking statements will prove to be accurate, as actual events and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on any forward-looking statement. The Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities law.

View original content:https://www.prnewswire.com/news-releases/quarterhill-and-arkansas-department-of-transportation-partner-to-modernize-freight-operations-at-states-critical-crossroads-302579225.html

SOURCE Quarterhill Inc.

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TORONTO, May 15, 2025 /PRNewswire/ - Quarterhill Inc. ("Quarterhill" or the "Company") (TSX: QTRH) (OTCQX: QTRHF), a leading provider of tolling and enforcement solutions in the Intelligent Transportation System ("ITS") industry, announces its financial results for the three months ended March 31, 2025. All financial information in this press release is reported in United States ("US") dollars, unless otherwise indicated.

Q1 2025 Highlights

• Revenue for Q1 2025 was $33.9 million compared to $34.9 million in Q1 2024.
• Adjusted EBITDA¹ for Q1 2025 was ($3.4) million compared to $0.2 million in Q1 2024. Adjusted EBITDA¹ for Q1 2025 was negatively impacted by ($3.2) million due to two tolling contracts that are currently under renegotiation.
• Revenue backlog³ was $476 million at March 31, 2025.
• Cash used in operations for Q1 2025 was ($3.6) million compared to ($10.1) million in Q1 2024.
• Cash and cash equivalents were $26.1 million at March 31, 2025.
• Announced $40 million Renewal Contract to Upgrade Alameda CTC I-580 Express Lanes and provide operation and maintenance over seven years, with a potential four-year expansion valued at another $15 million.
• Subsequent to quarter-end, received a $3.2 million dividend from Wi-LAN Inc. ("WiLAN").

"Q1 2025 results reflect our ongoing business transformation," said Chuck Myers, CEO at Quarterhill. "While performance was impacted by our seasonally slow first quarter and the two tolling contracts that are in renegotiation, we continue to make meaningful progress on our turnaround strategy, positioning us for long-term success. Despite challenges, our project operations once again delivered strong revenue growth and margins. In addition, we remain actively engaged in renegotiating the two tolling contracts that negatively impacted our Adjusted EBITDA by $3.2 million this quarter, with the goal of securing a favorable outcome that would improve our financial performance in future quarters."

Mr. Myers continued: "Beyond our operational progress, we benefited from a WiLAN dividend payment received after the quarter ended, which contributes positively to our cash position and will be reflected in our Q2 2025 financials. We remain confident in our ability to drive revenue growth and margin improvement as we move past the first quarter and progress through 2025, particularly as our contract renegotiations conclude and our operational enhancements and technology investment take fuller effect."

Q1 2025 Financial Review
Quarterhill's Management's Discussion and Analysis and Financial Statements for the three months ended March 31, 2025 are available at the Company's website and at its profile at SEDAR+.

Revenues for the three months ended March 31, 2025, were $33.9 million compared to $34.9 million in the same period last year. The decrease in Q1 2025 revenue was due primarily to the timing of revenues received from certain tolling contracts, and offset, in part, by revenue growth from the enforcement operations. The two tolling contracts that are being renegotiated contributed $3.6 million to revenue in Q1 2025.

Gross profit² as a value and as a percentage of revenues may be subject to significant variance in each reporting period due to the nature and type of contract and service work performed and currency volatility. Gross profit for the three months ended March 31, 2025, was $3.9 million, or 12%, as compared to $6.4 million, or 18%, in the same period last year. The decrease in Q1 2025 was primarily due to cost overruns on two tolling projects, and offset, in part, by continued strong margin performance from the enforcement operations.

Total operating expenses are comprised of selling, general and administrative costs ("SG&A"), research and development ("R&D") costs, depreciation, amortization of intangible assets and other charges. Total operating expenses for the three months ended March 31, 2025, were $11.2 million compared to $10.5 million in the same period last year. The Q1 2025 increase is primarily due to recruitment, technical consulting and facilities expenses, which was offset in part by a decrease in amortization expense and other charges.

Adjusted EBITDA¹ for the three months ended March 31, 2025, was ($3.4) million compared to $0.2 million in the same period last year. The Q1 2025 decrease in Adjusted EBITDA¹ compared to Q1 2024, was due to the factors impacting revenue, gross margin and expenses, as previously described. The two tolling contracts that are being renegotiated resulted in a reduction to Adjusted EBITDA¹ of ($3.2) million in Q1 2025.

Net loss for the three months ended March 31, 2025, was ($8.4) million, or ($0.07) per diluted share, compared to a net loss of ($4.2) million, or ($0.04) per diluted share, in the same period last year.

Cash used in continuing operations for the three months ended March 31, 2025, was ($3.6) million compared to ($10.1) million in the same period last year.

Cash and cash equivalents were $26.1 million at March 31, 2025, compared to $31.9 million at December 31, 2024. Due to the nature of the Company's business activities, operating cash flows may vary significantly between periods due to changes and timing in working capital balances. Working capital was $22.4 million at March 31, 2025, compared to $28.9 million at December 31, 2024. Adjusted Working Capital⁴ was $59.8 million at March 31, 2025, compared to $66.2 million at December 31, 2024.

1. Please refer to the Adjusted EBITDA Non-IFRS Financial Measures section for further information.

2. Please refer to Gross Margin % in the Supplementary Financial Measures section for further information.

3. Please refer to the Backlog - Non-IFRS Financial Measure section for further information.

4. Please refer to the Adjusted Working Capital - Non-IFRS Financial Measure section for further information.

Conference Call and Webcast
Quarterhill will host a conference call to discuss its financial results on Thursday, May 15, 2025, at 10:00 AM Eastern Time.

Webcast Information

• Live audio webcast will be available at: https://app.webinar.net/bj6lZkPJOQK          
• Webcast replay will be available at: https://app.webinar.net/bj6lZkPJOQK    

Traditional Dial-in Information

• To access the call from the U.S. and Canada, dial 1.888.699.1199 (Toll Free)
• To access the call from other locations, dial 1.416.945.7677 (International)

Rapidconnect
To instantly join the conference call by phone, please use the following URL to easily register and be connected into the conference call automatically: https://emportal.ink/3RrbzAs      

Telephone Replay
Telephone replay will be available from May 15, 2025, until May 22, 2025, at: 1.888.660.6345 (Toll Free North America) or 1.289.819.1450.

Conference ID: 47107 and Replay Passcode: 47107#

Non-IFRS Financial Measures and Non-IFRS Ratios
Quarterhill uses both IFRS and certain non-IFRS financial measures to assess performance. Non-IFRS financial measures are financial measures disclosed by a company that (a) depict historical or expected future financial performance, financial position or cash flow of a company, (b) with respect to their composition, exclude amounts that are included in, or include amounts that are excluded, from the composition of the most directly comparable financial measure disclosed in the primary financial statements of the company, (c) are not disclosed in the financial statements of the company, and (d) are not a ratio, fraction, percentage or similar representation. Non-IFRS ratios are financial measures disclosed by a company that are in the form of a ratio, fraction, percentage or similar representation that has a non-IFRS financial measure as one or more of its components, and that are not disclosed in the financial statements of the company.

These non-IFRS financial measures and non-IFRS ratios are not standardized financial measures under IFRS, and, therefore, are unlikely to be comparable to similar financial measures presented by other companies. Management believes these non-IFRS financial measures and non-IFRS ratios provide transparent and useful supplemental information to help investors evaluate our financial performance, financial condition, and liquidity using the same measures as management. These non-IFRS financial measures and non-IFRS ratios should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with IFRS.

Adjusted EBITDA - Non-IFRS Financial Measures

We use the non-IFRS financial measure "Adjusted EBITDA" to mean net loss adjusted for (i) income taxes, (ii) finance expense or income; (iii) amortization and impairment of intangibles; (iv) other charges and other one-time items; (v) depreciation of right-of-use assets and property, plant and equipment; (vi) stock-based compensation; (vii) foreign exchange loss (gain); and (viii) other (income) expense and (ix) changes in fair value of derivative liability. Adjusted EBITDA is used by our management to assess our normalized cash generated on a consolidated basis. Adjusted EBITDA is also a performance measure that may be used by investors to analyze the cash generated by Quarterhill. Adjusted EBITDA should not be interpreted as an alternative to net income (loss) and cash flows from operations as determined in accordance with IFRS or as measure of liquidity. The most directly comparable IFRS financial measure is Net income (loss).

Adjusted EBITDA per share – Non-IFRS Ratio

Adjusted EBITDA per share is calculated as Adjusted EBITDA divided by the basic weighted average of common shares. Adjusted EBITDA per share is used by our management and investors to analyze cash generated by Quarterhill on a per share basis. The most comparable IFRS measure is earnings per share.

Adjusted Working Capital – Non-IFRS Financial Measure

Adjusted Working Capital is calculated as current assets minus current liabilities, adjusted for convertible debentures and derivative liability. Adjusted Working Capital reflects our net working capital expected to be settled in cash within twelve months. The most comparable IFRS measure is working capital.

Backlog - Non-IFRS Financial Measure

We use the non-IFRS measure "backlog" to mean the total value of work that has not yet been completed but that in management's experience of similar situations has: (a) a high certainty of being performed pursuant to existing contracts or work orders specifying job scope, value and timing; (b) an expectation of expansion of existing contracts due to expected extensions; and/or (c) been awarded to one or more of our ITS operating subsidiaries as evidenced by a binding contract or where the finalization of a binding contract is reasonably assured. Activities under such contracts may cover a period of up to 15 years. We do not include in "backlog", the value of any expected but unsigned change orders that management considers may apply to such contracts.

Supplementary Financial Measures
Supplementary financial measures are financial measures disclosed by a company that (a) are, or are intended to be, disclosed on a periodic basis to depict the historical or expected future financial performance, financial position or cash flow of a company, (b) are not disclosed in the financial statements of the company, (c) are not non-IFRS financial measures, and (d) are not non-IFRS ratios. Key supplementary measures disclosed are as follows:

Gross margin %
Calculated as gross profit as a percentage of revenue.

About Quarterhill
Quarterhill is a leading provider of tolling and enforcement solutions in the Intelligent Transportation System (ITS) industry. Our goal is technology-driven global leadership in ITS, via organic growth of our tolling and enforcement businesses, and by continuing an acquisition-oriented investment strategy that capitalizes on attractive growth opportunities within ITS and its adjacent markets. Quarterhill is listed on the TSX under the symbol QTRH and on the OTCQX Best Market under the symbol QTRHF. For more information: www.quarterhill.com.

Forward-looking Information
This news release contains forward-looking information and forward-looking statements within the meaning of applicable Canadian securities laws (collectively, "forward-looking statements") regarding Quarterhill, its operating subsidiaries and their respective businesses. Such forward-looking statements relate to future events, conditions or future financial performance of ‎Quarterhill based on future economic conditions and courses of action. All statements other ‎than statements of historical fact may be forward-looking statements. Such forward-looking statements ‎are often, but not always, identified by the use of any words such as "seek", "anticipate", "budget", ‎‎"plan", "goal", and similar expressions. These statements involve known and unknown risks, assumptions, ‎uncertainties and other factors that may cause actual results or events to differ materially from those ‎anticipated in such forward-looking statements. The Company believes the expectations reflected in ‎those forward-looking statements are reasonable, but no assurance can be given that these expectations ‎will prove to be correct and such forward-looking statements included in this news release should not be ‎unduly relied upon.‎ In particular, this news release contains forward-looking statements pertaining to, but not limited to, the ‎following: operational and financial expectations for the 2025 financial year, including revenue, gross margin and Adjusted EBITDA expectations; the Company's business plan and strategy;  the outcome of renegotiation efforts relating to our tolling contracts; the impact of contract renegotiation on our financial performance; and the results of operational enhancements and technology investment by the Company.

‎Although the forward-looking statements contained in this news release are based upon assumptions ‎which management of the Company believes to be reasonable, the Company cannot assure investors ‎that actual results will be consistent with these forward-looking statements. With respect to forward-‎looking statements contained in this news release, the Company has made assumptions regarding, but ‎not limited to: the Company's ability to execute on its business plan; successful integration of acquisitions; general economic and industry trends; operating assumptions relating to the ‎Company's operations; demand for the Company's products and services; cost estimates for fixed price contracts; successful renegotiation of our tolling contracts on terms acceptable and favourable to the Company; and the other assumptions set forth in the ‎Company's most recent annual information form available under the Company's profile on SEDAR+ ‎at www.sedarplus.ca.‎

The Company's actual results could differ materially from those anticipated in the forward-looking ‎statements, as a result of numerous known and unknown risks and uncertainties and other factors ‎including, but not limited to: changes in demand for the Company's products and services; general economic, ‎political, market and business conditions, including fluctuations in interest rates, foreign exchange rates, ‎stock market volatility; reliance on key management personnel; risks related to competition within the Company's industry and relating to technological advances; litigation risks; cyber-security risks; fixed price contracts may result in unexpected costs to the Company; risks of health epidemics, pandemics and similar ‎outbreaks; the tolling contracts not successfully being renegotiated on terms acceptable or favourable to the Company, or at all; and the other risks set forth in the Company's most recent annual information form ‎and management's discussion and analysis for the three and twelve months ended December 31, 2024 available under the Company's profile on SEDAR+ at www.sedarplus.ca.‎

The Company's actual results, performance or achievement could differ materially from those ‎expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be ‎given that any of the events anticipated by the forward-looking statements will transpire or occur, or if ‎any of them do so, what benefits the Company will derive therefrom. Readers are therefore cautioned ‎that the foregoing lists of important factors are not exhaustive, and they should not unduly rely on the ‎forward-looking statements included in this news release. All forward-looking statements contained in this news release are expressly ‎qualified by this cautionary statement. Quarterhill has no intention, and undertakes no obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

This news release contains "future-oriented financial information" and "financial outlooks" within the meaning of applicable Canadian securities laws (collectively, "FOFI"), including about the financial results, revenue, gross margin and Adjusted EBITDA of Quarterhill for the year ended December 31, 2025. FOFI, as with forward-looking ‎statements ‎generally, are, without limitation, based on the assumptions and qualifications, and are subject to the risks, set out ‎above in respect of forward-looking statements. Quarterhill's actual financial position and results of operations may differ materially from ‎management's ‎current expectations and, as a result, the Company's financial results may differ ‎materially from ‎the FOFI provided in this news release. The Company and its management believe that the FOFI has been prepared on a reasonable basis, reflecting management's best estimates and judgments and the FOFI contained in this news release was approved by management as of the date hereof, for purposes of providing further information about the Company's future business operations and results. However, because this information is subjective and subject to numerous risks and assumptions, it should not be relied on as necessarily indicative of future results. Except as required by applicable securities laws, the Company undertakes no obligation to update such FOFI. Readers are cautioned that the FOFI contained in this news release should not be used for purposes other than for which it is disclosed herein, and such information is ‎presented for ‎illustrative purposes only and may not be an indication of the Company's actual ‎financial position or ‎results of operations.‎

Interim Condensed Consolidated Statements of Loss and Comprehensive Loss
(in thousands and in United States dollars, except share and per share amounts)

View original content:https://www.prnewswire.com/news-releases/quarterhill-announces-q1-2025-financial-results-302456204.html

SOURCE Quarterhill Inc.

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• Alameda CTC's fully electronic express lanes increase the efficiency of the I-580 and I-680 corridors by giving drivers the option to bypass congested traffic segments under certain conditions.
• Upgrading the I-580 system will create a single, unified platform for Alameda CTC and solidify Quarterhill as its sole Express Lane vendor through 2032.

TORONTO, Jan. 6, 2025 /PRNewswire/ - Quarterhill Inc. ("Quarterhill" or the "Company") (TSX: QTRH) (OTCQX: QTRHF), a global leader in providing intelligent transportation system solutions, announced today that has been awarded a contract valued at $40 million to upgrade the Alameda County Transportation Commission ("Alameda CTC") I-580 Express Lanes. The project will be implemented over 17 months and includes seven (7) years of operations and maintenance. The contract provides Alameda CTC with the option to procure up to four (4) additional years of operations and maintenance at an additional cost of $15 million. All financial information in this press release is reported in U.S. dollars.

The Alameda CTC I-580 express lanes are specially designated highway lanes designed to improve travel times and alleviate traffic congestion across Alameda County. These lanes enable a more reliable traveling experience for commuters and travelers in the county by providing an option to bypass congested traffic segments under certain conditions. Express lanes help in managing and mitigating traffic congestion, directly benefiting not just the users of these lanes but also potentially improving conditions in the general-purpose lanes. The I-580 Express Lanes span approximately 10 miles from Hacienda Drive in Pleasanton to Greenville Road in Livermore in the eastbound direction and approximately 12 miles from Greenville Road to just before the I-680 overpass in Dublin in the westbound direction.

Under this contract, Quarterhill will upgrade I-580 Express Lanes onto the same technology infrastructure that underlies the I-680 Express Lanes operations. The project ensures compatibility with recent system replacements at the Alameda CTC I-680 Express Lane facilities, which implemented Quarterhill's riteSuite™ to improve mobility and alleviate congestion along the corridor. riteSuite is an updated family of cloud-based, end-to-end tolling and mobility systems built on mainstream open-source platforms for flexible deployment to support transportation growth throughout the region.

The express lane consolidation focuses on streamlining operational processes and applying consistent business rules across Alameda CTC's operations. It also addresses the legacy system's increasing operational exposures and maintenance risks by updating technical equipment, including sign upgrades to accommodate changes to road segments, and decommissioning and replacing outdated roadside equipment. With this project, Quarterhill is positioned as Alameda CTC's sole Express Lane Electronic Toll Collection System provider until 2032, with potential extensions until 2036, emphasizing a long-term commitment to enhancing Alameda County's transportation infrastructure.

"We are thrilled to deepen our partnership with the Alameda CTC through this significant upgrade of the Express Lanes," said Chuck Myers, CEO of Quarterhill. "This upgrade project not only demonstrates Quarterhill's commitment to innovation but also solidifies our position as Alameda CTC's unified provider for electronic tolling solutions. This initiative will streamline operations, ensure uniformity in the application of business rules across Alameda CTC's network, and provide greater maintenance efficiency. We believe this is a pivotal step forward in enhancing customer experience and are proud to play a crucial role in modernizing Alameda County's transportation infrastructure."

About Quarterhill
Quarterhill is a leading provider of tolling and enforcement solutions in the Intelligent Transportation System (ITS) industry. Our goal is technology-driven global leadership in ITS, via organic growth of our tolling and enforcement businesses, and by continuing an acquisition-oriented investment strategy that capitalizes on attractive growth opportunities within ITS and its adjacent markets. Quarterhill is listed on the TSX under the symbol QTRH and on the OTCQX Best Market under the symbol QTRHF. For more information: www.quarterhill.com.

Forward-looking Information
This news release contains forward-looking information and forward-looking statements within the meaning of applicable Canadian securities laws (collectively, "forward-looking statements"). Such forward-looking statements relate to future events, conditions or future financial performance of ‎Quarterhill based on future economic conditions and courses of action. All statements other ‎than statements of historical fact may be forward-looking statements. Such forward-looking statements ‎are often, but not always, identified by the use of any words such as "seek", "anticipate", "budget", ‎‎"plan", "goal", "expect" and similar expressions.

Forward-looking statements involve known and unknown risks, assumptions, ‎uncertainties and other factors that may cause actual results or events to differ materially from those ‎anticipated in such forward-looking statements. Material risk factors that could cause actual results to differ materially from the forward-looking statements contained in this news release include, among others, demand for Quarterhill's products and services; general economic and market conditions; competition; risks relating to technological advances and cyber-security; and other risks set forth in the Company's most recent annual information form available on SEDAR+ at www.sedarplus.ca. The Company believes the expectations reflected in ‎the forward-looking statements are reasonable, but no assurance can be given that these expectations ‎will prove to be correct and such forward-looking statements included in this news release should not be ‎unduly relied upon.‎ Material factors and assumptions used to develop the forward-looking statements contained in this news release include, among others: Quarterhill's ability to execute on its business plan; demand for Quarterhill's products and services; operating assumptions; and financial projections and cost estimates. Quarterhill has no intention, and undertakes no obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

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SOURCE Quarterhill Inc.

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