Announcement • Jul 01
Quarterhill Inc. (TSX:QTRH) agreed to acquire Conduent Tolling Solutions Business from Conduent Business Services, LLC. Quarterhill Inc. (TSX:QTRH) agreed to acquire Conduent Tolling Solutions Business from Conduent Business Services, LLC on June 30, 2026. The consideration consisting of (i) $70 million in cash, subject to customary adjustments, plus (ii) common shares in the capital of Quarterhill representing 7.0% of the issued and outstanding Shares on closing of the Transaction. The Company expects to fund the cash portion of the consideration through debt.
The transaction is subject to a number of closing conditions customary for a transaction of this nature, including TSX approval, and the satisfaction of other customary conditions precedent and is expected to close in Q4 of 2026.
AlixPartners is acting as financial advisor to Quarterhill, DLA Piper US LLP and DLA Piper (Canada) LLP are acting as legal advisors to Quarterhill. Jefferies Group LLC is acting as financial advisor to Conduent Business Services, LLC. New Risk • Jun 30
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Canadian stocks, typically moving 13% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. This is currently the only risk that has been identified for the company. Recent Insider Transactions • May 20
Independent Director recently bought CA$229k worth of stock On the 15th of May, Burland East bought around 129k shares on-market at roughly CA$1.78 per share. This transaction increased Burland's direct individual holding by 15x at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought CA$518k more in shares than they have sold in the last 12 months. Reported Earnings • May 15
First quarter 2026 earnings: Revenues exceed analysts expectations while EPS lags behind First quarter 2026 results: US$0.04 loss per share (improved from US$0.072 loss in 1Q 2025). Revenue: US$38.6m (up 14% from 1Q 2025). Net loss: US$5.25m (loss narrowed 37% from 1Q 2025). Revenue exceeded analyst estimates by 3.6%. Earnings per share (EPS) missed analyst estimates by 75%. Revenue is forecast to grow 8.3% p.a. on average during the next 2 years, compared to a 7.1% growth forecast for the Communications industry in Canada. Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has increased by 13% per year, which means it is tracking significantly ahead of earnings growth. Recent Insider Transactions • Apr 08
Independent Director recently bought CA$139k worth of stock On the 1st of April, Pasquale Deon bought around 105k shares on-market at roughly CA$1.32 per share. This transaction increased Pasquale's direct individual holding by 2x at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought CA$315k more in shares than they have sold in the last 12 months. Reported Earnings • Mar 24
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: US$0.47 loss per share (further deteriorated from US$0.096 loss in FY 2024). Revenue: US$155.2m (up 1.2% from FY 2024). Net loss: US$54.4m (loss widened 394% from FY 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 143%. Revenue is forecast to grow 7.3% p.a. on average during the next 2 years, compared to a 12% growth forecast for the Communications industry in North America. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. Announcement • Mar 24
Quarterhill Inc., Annual General Meeting, May 26, 2026 Quarterhill Inc., Annual General Meeting, May 26, 2026. New Risk • Mar 23
New major risk - Revenue and earnings growth Earnings have declined by 13% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 13% per year over the past 5 years. Minor Risk Market cap is less than US$100m (CA$122.7m market cap, or US$89.4m). Announcement • Mar 18
Quarterhill Inc. to Report Q4, 2025 Results on Mar 23, 2026 Quarterhill Inc. announced that they will report Q4, 2025 results Pre-Market on Mar 23, 2026 Announcement • Mar 10
Quarterhill Inc. Showcases Integrated Enforcement and Tolling Technologies Advancing Modern Transportation Operations Quarterhill Inc. had exhibited next-generation virtual weigh stations, automated enforcement, AI-enabled sensing, tolling technologies, and integrated data platforms for transportation agencies worldwide. The company demonstrated how its sensing technologies, vehicle screening tools, enforcement software, and data platforms work together to support commercial vehicle enforcement programs. These integrated solutions help transportation agencies strengthen regulatory compliance, protect roadway infrastructure, and improve safety and efficiency across busy freight corridors. Quarterhill Inc.'s approach connects multiple roadside technologies and data platforms into a single, coordinated system. This enables authorities to identify potential violations in motion, prioritize inspections more efficiently, and improve compliance outcomes without disrupting the flow of traffic. Quarterhill Inc. showcased capabilities from its AI-enabled tolling back-office solution. The feature is designed to help tolling agencies manage growing service demands and modernize customer support workflows. The technology can handle routine inquiries while routing more complex issues to human agents, enabling customer service teams to focus on higher-value interactions. Quarterhill Inc. unveiled several new solutions designed to transform commercial vehicle enforcement and modernize intelligent transportation operations, including: Virtual Weight Station (VWS) 2.0 – Building on Quarterhill Inc.'s first-to-market virtual weigh station technology, VWS 2.0 enables agencies to identify potential commercial vehicle violations in real time without requiring permanent roadside inspection facilities. The web-based platform supports more flexible enforcement while improving compliance and protecting roadway assets. Direct Enforcement – Direct Enforcement enables agencies to identify and cite overweight vehicles in real time using in-lane detection technology. Designed to work within evolving legislative frameworks, Direct Enforcement supports scalable compliance strategies that protect bridges, pavements, and freight corridors without increasing operational burden. SensorLine Fiber-Optic Sensing – High-accuracy fiber-optic sensing solutions that deliver axle-level vehicle detection and classification, including count, direction, and spacing. These systems provide reliable, real-time data inputs that enhance compliance monitoring and inspection targeting. RedFox Multi-Sensor Vehicle Portal – A non-intrusive, high-accuracy vehicle identification and classification solution for ports, borders, and tolling environments that integrates LiDAR, imaging, and next-generation above-ground axle detection. RedFox improves vehicle screening accuracy while reducing installation complexity compared to traditional in-road sensing systems. Icoms Analytics Platform – A cloud-based data and analytics environment designed to integrate roadside sensing and enforcement technologies into a unified operational view. Solutions within the Icoms portfolio, including the TMB Series radar detection platform, enable multilane traffic monitoring, intersection analytics, and near real-time data insights that support safer and more efficient roadway management. Tolling Back Office – Quarterhill Inc.'s Tolling Back Office AI-enabled capabilities help manage growing service demands by handling routine customer inquiries and routing complex issues to human agents. The result is a tolling system that runs reliably behind the scenes while supporting efficient customer support. Quarterhill Inc. representatives were available for select media briefings and demos during Intertraffic Amsterdam to discuss how integrated enforcement technologies can support infrastructure protection and operational efficiency initiatives across regional and national transportation networks. Announcement • Dec 24
Quarterhill Inc. Announces Appointment of Burland East to Board of Directors, Effective January 1, 2026 Quarterhill Inc. announced the appointment of Burland East to its Board of Directors, effective January 1, 2026. Mr. East is the CEO of Soledad Realty Capital, LLC, an Advisor at Oxygen Investment Management, and a Member of the Board of Advisors and CFO of Unmanned Aerospace. He has over 30 years of experience on Wall Street as a Managing Director and as an NASD broker-dealer member-owner. Mr. East has led teams of securities analysts and investment bankers and has raised approximately $20 billion in capital (primarily equity) from sophisticated investors globally across 142 large-scale real estate transactions, including 28 IPOs and other transactions. He holds an MBA, Finance from Loyola University Maryland. New Risk • Nov 11
New major risk - Revenue and earnings growth Earnings have declined by 21% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 21% per year over the past 5 years. Minor Risk Market cap is less than US$100m (CA$112.4m market cap, or US$80.2m). Reported Earnings • Nov 07
Third quarter 2025 earnings released: US$0.04 loss per share (vs US$0.036 loss in 3Q 2024) Third quarter 2025 results: US$0.04 loss per share (further deteriorated from US$0.036 loss in 3Q 2024). Revenue: US$39.7m (up 4.5% from 3Q 2024). Net loss: US$4.73m (loss widened 15% from 3Q 2024). Revenue is forecast to grow 8.6% p.a. on average during the next 3 years, compared to a 5.2% growth forecast for the Communications industry in Canada. Over the last 3 years on average, earnings per share has increased by 33% per year but the company’s share price has fallen by 13% per year, which means it is significantly lagging earnings. Buy Or Sell Opportunity • Oct 31
Now 25% overvalued Over the last 90 days, the stock has fallen 17% to CA$1.09. The fair value is estimated to be CA$0.87, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 9.9% over the last 3 years. Earnings per share has grown by 30%. Revenue is forecast to grow by 9.6% in a year. Earnings are forecast to grow by 34% in the next year. Board Change • Oct 24
High number of new directors There are 6 new directors who have joined the board in the last 3 years. Independent Director Steve Smith was the last director to join the board, commencing their role in 2025. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Announcement • Oct 23
Quarterhill Inc. to Report Q3, 2025 Results on Nov 06, 2025 Quarterhill Inc. announced that they will report Q3, 2025 results on Nov 06, 2025 Announcement • Jul 30
Quarterhill Inc. to Report Q2, 2025 Results on Aug 13, 2025 Quarterhill Inc. announced that they will report Q2, 2025 results on Aug 13, 2025 Announcement • Jul 25
Quarterhill Inc. Announces Workforce Reduction of Approximately 100 Positions Quarterhill Inc. announced a workforce reduction of approximately 100 positions, representing approximately 15% of total headcount. This strategic initiative is intended to reduce costs, accelerate the path toward sustainable positive Adjusted EBITDA and operating cash flow, and better align resources with long-term strategic priorities and those of customers. The reduction, affecting both contract and full-time roles in roughly equal measure, is expected to generate annualized cost savings of approximately USD 12 million. The reduction is primarily focused on operational areas that affect cost of sales, with a partial benefit to be realized in 2025 and the full benefit expected in 2026. Announcement • Jul 16
Quarterhill Inc. Announces System Acceptance of Transition of Tx Tag User Accounts to Harris County Toll Road Authority Quarterhill Inc. announced that the transition of approximately one million TxTag user accounts to the Harris County Toll Road Authority back office system has received system acceptance as of March 14, 2025. TxTag user accounts managed by the Texas Department of Transportation have been serviced by HCTRA since going live in December 2024. Quarterhill has been a critical technology partner to HCTRA since 2002 and upgraded the authority's back office to a system in 2017. Quarterhill designed the RiteHorizon™? solution as a multi-tenant back office to permit the processing of transactions by multiple agencies. A uniquely strong internal control system enables transaction tracking and revenue reporting by agency, facility, plaza, and lane. Reporting, reconciling, and settling transactions are separated and indicated for each authority. HCTRA now processes transactions for six different agencies with varying policies and degrees of involvement in customer service. TxDOT internal reporting indicated that 60% of its customers' transactions occurred on HCTRA-managed roads. By moving its user account management to HCTRA, TxDOT will improve efficiency by consolidating customer service and support. Consolidation will also create a unified customer service experience for drivers throughout the Austin and Houston areas. TxTag customers can keep using their current tags with the unified service. The back-office system developed by Quarterhill was essential for extending HCTRA's high-quality service to TxTag customers. This partnership between HCTRA and TxDOT marks a significant advancement toward simplified and efficient transportation solutions. Recent Insider Transactions • Jul 07
Chief Financial Officer recently bought CA$140k worth of stock On the 30th of June, David Charron bought around 100k shares on-market at roughly CA$1.40 per share. This transaction increased David's direct individual holding by 12x at the time of the trade. This was the largest purchase by an insider in the last 3 months. This was David's only on-market trade for the last 12 months. Announcement • Jun 06
Quarterhill Inc. Announces Chief Financial Officer Changes, Effective June 17, 2025 Quarterhill Inc. announced the appointment of David Charron as Chief Financial Officer ("CFO"), effective June 17, 2025. Mr. Charron brings more than 15 years of public company CFO experience and a proven track record of driving growth and operational excellence in global technology businesses. Mr. Charron most recently served as CFO at Maropost Inc., a global private SaaS company. Prior to that, he spent three years as CFO of Tiny Ltd./WeCommerce Holdings Inc., a publicly traded technology holding company. His public company experience includes four years as CFO of Terago Networks Inc., during which time he also served as Interim CEO for six months, as well as at Redknee Solutions Inc., where he served as CFO and Corporate Secretary for eight years. At Redknee, Mr. Charron successfully closed and integrated five acquisitions, while completing $240 million in equity and credit financings. Mr. Charron currently serves as Board Director and Chair of the Audit Committee for NowVertical Group, a publicly traded AI-focused data services company. He holds a Chartered Director designation from The Directors College at McMaster University, is a Chartered Professional Accountant and Certified Management Accountant, and earned his MBA from McMaster University's DeGroote School of Business and Bachelor of Engineering (Electrical) from McMaster University. Added thanks Morgan Demkey for his dedicated service as Interim CFO during this transition period. Morgan will return to his full-time role as Vice President of Operations for Safety & Enforcement unit, where he has consistently delivered strong results. Board Change • Jun 01
High number of new directors There are 6 new directors who have joined the board in the last 3 years. Independent Director Steve Smith was the last director to join the board, commencing their role in 2025. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Major Estimate Revision • May 22
Consensus EPS estimates fall by 194% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from US$165.4m to US$159.4m. Losses expected to increase from US$0.044 per share to US$0.13. Communications industry in Canada expected to see average net income growth of 11% next year. Consensus price target down from CA$2.03 to CA$1.95. Share price fell 7.2% to CA$1.41 over the past week. Reported Earnings • May 15
First quarter 2025 earnings released: US$0.07 loss per share (vs US$0.037 loss in 1Q 2024) First quarter 2025 results: US$0.07 loss per share (further deteriorated from US$0.037 loss in 1Q 2024). Revenue: US$33.9m (down 2.9% from 1Q 2024). Net loss: US$8.37m (loss widened 98% from 1Q 2024). Revenue is forecast to grow 8.6% p.a. on average during the next 2 years, compared to a 5.1% growth forecast for the Communications industry in Canada. Over the last 3 years on average, earnings per share has increased by 22% per year but the company’s share price has fallen by 11% per year, which means it is significantly lagging earnings. Announcement • May 13
Quarterhill Approves Board Appointments Quarterhill Inc. at its Annual General and Special Meeting of shareholders held on May 12, 2025, approved election of Asha Daniere and Stephen A. Smith as director of the company. Announcement • May 01
Quarterhill Inc. to Report Q1, 2025 Results on May 15, 2025 Quarterhill Inc. announced that they will report Q1, 2025 results on May 15, 2025 Recent Insider Transactions • Mar 28
Key Executive recently bought CA$108k worth of stock On the 26th of March, Russell Lewis bought around 72k shares on-market at roughly CA$1.51 per share. This transaction amounted to 3.6% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Russell has been a buyer over the last 12 months, purchasing a net total of CA$954k worth in shares. Price Target Changed • Mar 19
Price target decreased by 8.1% to CA$2.08 Down from CA$2.27, the current price target is an average from 3 analysts. New target price is 39% above last closing price of CA$1.50. Stock is down 17% over the past year. The company is forecast to post a net loss per share of US$0.044 next year compared to a net loss per share of US$0.096 last year. Reported Earnings • Mar 17
Full year 2024 earnings released Full year 2024 results: Net income: (up US$33.1m from FY 2023). Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. New Risk • Mar 17
New major risk - Revenue and earnings growth Earnings have declined by 48% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 48% per year over the past 5 years. Minor Risk Currently unprofitable and not forecast to become profitable next year (US$4.0m net loss next year). Announcement • Mar 10
Quarterhill Inc. to Report Q4, 2024 Results on Mar 17, 2025 Quarterhill Inc. announced that they will report Q4, 2024 results on Mar 17, 2025 Announcement • Mar 05
Quarterhill Inc., Annual General Meeting, May 12, 2025 Quarterhill Inc., Annual General Meeting, May 12, 2025. Board Change • Jan 03
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Director Pat Deon was the last director to join the board, commencing their role in 2024. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Announcement • Jan 01
Quarterhill Inc. Announces the Appointment of Pasquale T. (Pat) Deon, Sr. to Its Board of Directors Quarterhill Inc. announced the appointment of Pasquale T. (Pat) Deon, Sr. to its Board of Directors. Mr. Deon brings a wealth of experience in tolling, ITS, and business leadership to Quarterhill. As the former Chairman of the Southeastern Pennsylvania Transportation Authority ("SEPTA") and current Vice Chairman of the Pennsylvania Turnpike Commission, Mr. Deon has played a pivotal role in advancing large-scale transportation initiatives. He is also an accomplished entrepreneur and community leader with extensive business experience in the real estate, energy, hospitality, and beverage industries. During his 25-year tenure as Chair of SEPTA, the nation's sixth-largest public transit system, Mr. Deon led significant expansions and technological innovations, contributing to a billion-dollar capital budget, increasing ridership, and maintaining balanced budgets. His leadership also helped secure over $800 million in project financing, earning him recognition along the way, such as the "Outstanding Public Transportation Board Member Award" from the American Public Transportation Association. Beyond SEPTA, Mr. Deon has been recognized for his leadership roles on several influential boards, including the Pennsylvania Turnpike Commission, the Delaware River Port Authority, the Greater Philadelphia Chamber of Commerce, and the Pennsylvania Convention Center. Mr. Deon's entrepreneurial achievements are equally noteworthy. As the owner of Progressive Management, his business holdings span diverse industries, including real estate, energy, hospitality, and regulated gaming. He is also the Executive Chairman of SportsContentCo, LLC, a data supplier to the sports betting industry and serves on the board of Independence Health Group, Pennsylvania's largest insurance company. Mr. Deon's dedication to his community has included support for the Special Olympics, Pennsylvania March of Dimes, the American Red Cross, and other notable organizations and foundations, which reflects his commitment to civic and philanthropic endeavors. Reported Earnings • Nov 12
Third quarter 2024 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2024 results: US$0.036 loss per share (further deteriorated from US$0.015 loss in 3Q 2023). Revenue: US$38.0m (up 12% from 3Q 2023). Net loss: US$4.11m (loss widened 147% from 3Q 2023). Revenue exceeded analyst estimates by 2.6%. Earnings per share (EPS) missed analyst estimates by 52%. Revenue is forecast to grow 8.3% p.a. on average during the next 3 years, compared to a 8.3% growth forecast for the Communications industry in Canada. Over the last 3 years on average, earnings per share has fallen by 5% per year but the company’s share price has fallen by 15% per year, which means it is performing significantly worse than earnings. Announcement • Oct 30
Quarterhill Inc. to Report Q3, 2024 Results on Nov 08, 2024 Quarterhill Inc. announced that they will report Q3, 2024 results on Nov 08, 2024 Announcement • Oct 04
Quarterhill Inc. Announces Formation of A Technical Advisory Committee Quarterhill Inc. announced the formation of a Technical Advisory Committee and the addition of two external advisors to this committee. Quarterhill welcome Bobby Parikh as a Special Advisor to the CEO and as a member of the Technical Advisory Committee. Bobby is an engineering executive and product and business advisor with a long track record in the areas of technology and transportation. His experience spans roles at Uber, Google, and deCarta, where he developed some of the most popular mapping platforms and applications in use. In addition, Vineet Khosla, who the Company previously announced was joining its Board of Directors, will instead join the Technical Advisory Committee in a non-fiduciary role. Quarterhill's Technical Advisory Committee will be comprised of experts dedicated to guiding the Company's technology roadmap, shaping its system architecture and positioning it to capitalize on emerging artificial intelligence and machine learning applications. Recent Insider Transactions • Aug 18
Key Executive recently bought CA$68k worth of stock On the 12th of August, Russell Lewis bought around 42k shares on-market at roughly CA$1.62 per share. This transaction amounted to 2.2% of their direct individual holding at the time of the trade. In the last 3 months, they made an even bigger purchase worth CA$205k. Russell has been a buyer over the last 12 months, purchasing a net total of CA$3.2m worth in shares. Reported Earnings • Aug 13
Second quarter 2024 earnings: EPS in line with expectations, revenues disappoint Second quarter 2024 results: US$0.026 loss per share (improved from US$0.089 loss in 2Q 2023). Revenue: US$41.5m (up 7.5% from 2Q 2023). Net loss: US$2.97m (loss narrowed 71% from 2Q 2023). Revenue is forecast to grow 9.9% p.a. on average during the next 2 years, compared to a 11% growth forecast for the Communications industry in Canada. Over the last 3 years on average, earnings per share has fallen by 15% per year whereas the company’s share price has fallen by 13% per year. Announcement • Aug 01
Quarterhill Inc. to Report Q2, 2024 Results on Aug 09, 2024 Quarterhill Inc. announced that they will report Q2, 2024 results on Aug 09, 2024 Recent Insider Transactions • Jul 31
Key Executive recently bought CA$80k worth of stock On the 23rd of July, Russell Lewis bought around 47k shares on-market at roughly CA$1.69 per share. This transaction amounted to 2.5% of their direct individual holding at the time of the trade. In the last 3 months, they made an even bigger purchase worth CA$205k. Russell has been a buyer over the last 12 months, purchasing a net total of CA$3.1m worth in shares. Recent Insider Transactions • Jun 13
Key Executive recently bought CA$180k worth of stock On the 5th of June, Russell Lewis bought around 107k shares on-market at roughly CA$1.69 per share. This transaction amounted to 5.9% of their direct individual holding at the time of the trade. In the last 3 months, they made an even bigger purchase worth CA$205k. Russell has been a buyer over the last 12 months, purchasing a net total of CA$3.0m worth in shares. Recent Insider Transactions • Jun 06
Key Executive recently bought CA$101k worth of stock On the 29th of May, Russell Lewis bought around 60k shares on-market at roughly CA$1.69 per share. This transaction amounted to 3.5% of their direct individual holding at the time of the trade. In the last 3 months, they made an even bigger purchase worth CA$205k. Russell has been a buyer over the last 12 months, purchasing a net total of CA$2.8m worth in shares. Recent Insider Transactions • May 23
Key Executive recently bought CA$205k worth of stock On the 22nd of May, Russell Lewis bought around 122k shares on-market at roughly CA$1.68 per share. This transaction amounted to 8.1% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Russell has been a buyer over the last 12 months, purchasing a net total of CA$2.5m worth in shares. Major Estimate Revision • May 20
Consensus revenue estimates increase by 13%, EPS downgraded The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast increased from CA$191.0m to CA$215.7m. EPS estimate fell from -CA$0.035 to -CA$0.041 per share. Communications industry in Canada expected to see average net income growth of 52% next year. Consensus price target up from CA$2.17 to CA$2.28. Share price was steady at CA$1.67 over the past week. New Risk • May 13
New minor risk - Financial position The company has less than a year of cash runway based on its current free cash flow. Free cash flow: -CA$37m This is considered a minor risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Minor Risks Less than 1 year of cash runway based on current free cash flow (-CA$37m). Currently unprofitable and not forecast to become profitable next year (CA$781k net loss next year). Reported Earnings • May 13
First quarter 2024 earnings: Revenues exceed analysts expectations while EPS lags behind First quarter 2024 results: CA$0.04 loss per share (improved from CA$0.11 loss in 1Q 2023). Revenue: CA$34.9m (down 8.9% from 1Q 2023). Net loss: CA$4.22m (loss narrowed 66% from 1Q 2023). Revenue exceeded analyst estimates by 19%. Earnings per share (EPS) missed analyst estimates by 82%. Revenue is forecast to grow 3.8% p.a. on average during the next 2 years, compared to a 9.8% growth forecast for the Communications industry in Canada. Over the last 3 years on average, earnings per share has fallen by 21% per year but the company’s share price has only fallen by 11% per year, which means it has not declined as severely as earnings. Announcement • May 03
Quarterhill Inc. to Report Q1, 2024 Results on May 13, 2024 Quarterhill Inc. announced that they will report Q1, 2024 results on May 13, 2024 Announcement • Apr 09
Quarterhill Inc. (TSX:QTRH) completed the acquisition of Red Fox I.D. Limited. Quarterhill Inc. (TSX:QTRH) entered into a definitive agreement to acquire Red Fox I.D. Limited for $10.2 million on March 15, 2024. The consideration will pay through a combination of cash and equity. The transaction is subject to customary closing conditions. The acquisition is expected to close on, or about, April 1, 2024.
Quarterhill Inc. (TSX:QTRH) completed the acquisition of Red Fox I.D. Limited on April 8, 2024. Recent Insider Transactions • Mar 22
Key Executive recently bought CA$78k worth of stock On the 19th of March, Russell Lewis bought around 43k shares on-market at roughly CA$1.83 per share. This transaction amounted to 2.9% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Russell has been a buyer over the last 12 months, purchasing a net total of CA$2.3m worth in shares. Reported Earnings • Mar 15
Full year 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2023 results: CA$0.38 loss per share (down from CA$0.024 profit in FY 2022). Revenue: CA$194.3m (down 36% from FY 2022). Net loss: CA$43.8m (down CA$46.6m from profit in FY 2022). Revenue exceeded analyst estimates by 5.4%. Earnings per share (EPS) missed analyst estimates by 46%. Revenue is forecast to grow 5.3% p.a. on average during the next 2 years, compared to a 7.3% growth forecast for the Communications industry in Canada. Over the last 3 years on average, earnings per share has fallen by 18% per year but the company’s share price has only fallen by 7% per year, which means it has not declined as severely as earnings. Announcement • Mar 15
Quarterhill Inc. (TSX:QTRH) entered into a definitive agreement to acquire Red Fox I.D. Limited for $10.2 million. Quarterhill Inc. (TSX:QTRH) entered into a definitive agreement to acquire Red Fox I.D. Limited for $10.2 million on March 15, 2024. The consideration will pay through a combination of cash and equity. The transaction is subject to customary closing conditions. The acquisition is expected to close on, or about, April 1, 2024. Buy Or Sell Opportunity • Mar 08
Now 22% overvalued after recent price rise Over the last 90 days, the stock has risen 3.9% to CA$1.85. The fair value is estimated to be CA$1.52, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 35% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to decline by 39% in a year. Earnings are forecast to decline by 157% in the next year. Buy Or Sell Opportunity • Feb 12
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 8.5% to CA$1.79. The fair value is estimated to be CA$1.48, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 35% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to decline by 39% in a year. Earnings are forecast to decline by 157% in the next year. Recent Insider Transactions • Dec 11
Key Executive recently bought CA$444k worth of stock On the 7th of December, Russell Lewis bought around 258k shares on-market at roughly CA$1.72 per share. This transaction amounted to 51% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Russell has been a buyer over the last 12 months, purchasing a net total of CA$979k worth in shares. Major Estimate Revision • Nov 15
Consensus EPS estimates fall by 10% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from CA$188.7m to CA$184.4m. Losses expected to increase from CA$0.35 per share to CA$0.39. Communications industry in Canada expected to see average net income growth of 20% next year. Consensus price target of CA$1.72 unchanged from last update. Share price rose 8.6% to CA$1.65 over the past week. New Risk • Nov 14
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 17% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Minor Risks Large one-off items impacting financial results. Shareholders have been diluted in the past year (17% increase in shares outstanding). Reported Earnings • Nov 10
Third quarter 2023 earnings: EPS and revenues miss analyst expectations Third quarter 2023 results: CA$0.024 loss per share (improved from CA$0.085 loss in 3Q 2022). Revenue: CA$45.7m (up 7.7% from 3Q 2022). Net loss: CA$2.23m (loss narrowed 77% from 3Q 2022). Revenue missed analyst estimates by 17%. Earnings per share (EPS) also missed analyst estimates. Revenue is expected to decline by 18% p.a. on average during the next 3 years, while revenues in the Communications industry in Canada are expected to grow by 4.2%. Over the last 3 years on average, earnings per share has fallen by 16% per year whereas the company’s share price has fallen by 17% per year. Announcement • Oct 27
Quarterhill Inc. to Report Q3, 2023 Results on Nov 08, 2023 Quarterhill Inc. announced that they will report Q3, 2023 results on Nov 08, 2023 Price Target Changed • Sep 28
Price target decreased by 12% to CA$1.72 Down from CA$1.95, the current price target is an average from 3 analysts. New target price is 15% above last closing price of CA$1.49. Stock is down 11% over the past year. The company is forecast to post a net loss per share of CA$0.35 compared to earnings per share of CA$0.024 last year. Recent Insider Transactions • Sep 19
Key Executive recently bought CA$205k worth of stock On the 11th of September, Russell Lewis bought around 138k shares on-market at roughly CA$1.49 per share. This transaction amounted to 40% of their direct individual holding at the time of the trade. In the last 3 months, they made an even bigger purchase worth CA$300k. Russell has been a buyer over the last 12 months, purchasing a net total of CA$505k worth in shares. Recent Insider Transactions • Sep 12
Key Executive recently bought CA$300k worth of stock On the 7th of September, Russell Lewis bought around 200k shares on-market at roughly CA$1.50 per share. This transaction increased Russell's direct individual holding by 1x at the time of the trade. This was the largest purchase by an insider in the last 3 months. Russell has been a buyer over the last 12 months, purchasing a net total of CA$395k worth in shares. Announcement • Sep 06
Quarterhill Inc. Appoints Chuck Myers as Chief Executive Officer Quarterhill Inc. announced that Chuck Myers, a member of its Board of Directors has been appointed Chief Executive Officer. A member of the Quarterhill Board since May 2023, Mr. Myers most recently served as CEO and board member of Cogniac Corporation. Prior to his time at Cogniac, Mr. Myers was President, Chief Executive Officer, and Board Member of Airgain Inc. Earlier in his career, Mr. Myers was a member of the SAIC Transportation Division that was instrumental in building the first electronic toll collection system in the United States. That single project subsequently grew into the creation of Transcore, one of the world's largest electronic toll-collection providers. During this period, Mr. Myers played significant roles in several acquisitions including Syntonic, Cubic Toll Systems, and JHK Associates. Mr. Myers currently serves as an advisor to Platform Science; Rx—health; and Energy311. Mr. Myers holds a Master of Science degree in Management of Technology from MIT and a Bachelor of Science degree in Engineering from National University, and an Organizational Leadership Certificate from Yale School of Management. Board Change • Aug 18
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Director Chuck Myers was the last director to join the board, commencing their role in 2023. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Major Estimate Revision • Aug 16
Consensus EPS estimates fall by 10%, revenue upgraded The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast increased from CA$184.6m to CA$189.0m. Forecast EPS reduced from -CA$0.308 to -CA$0.339 per share. Communications industry in Canada expected to see average net income growth of 15% next year. Consensus price target broadly unchanged at CA$1.98. Share price rose 7.6% to CA$1.56 over the past week. Reported Earnings • Aug 10
Second quarter 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2023 results: CA$0.12 loss per share (improved from CA$0.21 loss in 2Q 2022). Revenue: CA$51.9m (up 18% from 2Q 2022). Net loss: CA$13.7m (loss narrowed 43% from 2Q 2022). Revenue exceeded analyst estimates by 23%. Earnings per share (EPS) missed analyst estimates. Revenue is expected to decline by 31% p.a. on average during the next 2 years, while revenues in the Communications industry in Canada are expected to grow by 6.1%. Over the last 3 years on average, earnings per share has fallen by 40% per year but the company’s share price has only fallen by 7% per year, which means it has not declined as severely as earnings. Announcement • Jul 28
Quarterhill Inc. to Report Q2, 2023 Results on Aug 09, 2023 Quarterhill Inc. announced that they will report Q2, 2023 results on Aug 09, 2023 Major Estimate Revision • Jun 22
Consensus revenue estimates decrease by 12% The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast fell from CA$209.1m to CA$184.6m. EPS estimate unchanged from -CA$0.31 per share at last update. Communications industry in Canada expected to see average net income growth of 17% next year. Consensus price target down from CA$2.43 to CA$1.95. Share price rose 4.0% to CA$1.30 over the past week. Price Target Changed • Jun 18
Price target decreased by 7.7% to CA$2.24 Down from CA$2.43, the current price target is an average from 4 analysts. New target price is 79% above last closing price of CA$1.25. Stock is down 33% over the past year. The company is forecast to post a net loss per share of CA$0.30 compared to earnings per share of CA$0.024 last year. Announcement • Jun 16
Owlpoint IP Opportunities JVF LP and Quarterhill Inc. (TSX:QTRH) acquired Wi-LAN Inc. from Quarterhill Inc. (TSX:QTRH) for approximately CAD 71.4 million. Owlpoint IP Opportunities JVF LP and Quarterhill Inc. (TSX:QTRH) acquired Wi-LAN Inc. from Quarterhill Inc. (TSX:QTRH) for approximately CAD 71.4 million on June 15, 2023. In addition to the 10% ownership stake in WiLAN, the consideration for this transaction will consist of approximately CAD 48 million in cash, approximately CAD 8 million as an earn out and approximately CAD 15.4 million pursuant to an unsecured promissory note, which earn out and note are payable on WiLAN achieving certain revenue milestones. Quarterhill's 10% ownership stake can be repurchased by WiLAN for between approximately CAD 13 million and CAD 16 million subject to WiLAN meeting certain revenue milestones.
Owlpoint IP Opportunities JVF LP and Quarterhill Inc. (TSX:QTRH) completed the acquisition of Wi-LAN Inc. from Quarterhill Inc. (TSX:QTRH) on June 15, 2023. Announcement • May 25
Quarterhill Inc. Announces CFO Changes Quarterhill Inc. announced that John Karnes, Chief Financial Officer ("CFO"), is departing the Company and Kyle Chriest, VP Corporate Finance, has been appointed Interim CFO. These changes are effective immediately. Mr. Chriest joined Quarterhill in November 2022. Prior to Quarterhill, he spent six years at Calian Group Ltd., a publicly traded company on the Toronto Stock Exchange, where, as Director of Finance, he was responsible for managing the Finance Department of Calian's Advanced Technologies division. During Kyle's time with Calian, the company experienced significant organic and inorganic growth, with revenue growing from $250 million to $500 million. Prior to that, Mr. Chriest held a variety of accounting roles at AutoCanada, KPMG LLP and Deloitte and Touche LLP. Mr. Chriest has a Bachelor of Commerce degree from the University of Saskatchewan and holds both Chartered Professional Accountant (CPA) and Chartered Accountant (CA) designations. Major Estimate Revision • May 17
Consensus EPS estimates upgraded to CA$0.11 loss, revenue downgraded The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast fell from CA$219.4m to CA$209.1m. 2023 losses expected to reduce from -CA$0.15 to -CA$0.11 per share. Communications industry in Canada expected to see average net income growth of 17% next year. Consensus price target up from CA$2.25 to CA$2.43. Share price fell 13% to CA$1.22 over the past week. Price Target Changed • May 12
Price target decreased by 8.9% to CA$2.49 Down from CA$2.73, the current price target is an average from 4 analysts. New target price is 113% above last closing price of CA$1.17. Stock is down 45% over the past year. The company is forecast to post a net loss per share of CA$0.11 compared to earnings per share of CA$0.024 last year. Announcement • May 11
Quarterhill Inc. Appoints Charles Myers to Its Board Quarterhill announced that Charles ("Chuck") Myers was appointed to the board of directors, effective May 9, 2023. Mr. Myers brings more than 25 years of leadership experience as a Chief Executive Officer, board member, and founder for private and public companies in the technology industry, including a co-founding role at Transcore, a leader in the ITS industry. Most recently, Mr. Myers served as Chief Executive Officer and board member of Cogniac Corporation, a San Jose, California-based provider of enterprise-class AI deep learning solutions that automate visual inspection through image and video analysis. Under his leadership, Cogniac was named "2021 Global Entrepreneurial Company of the Year in Computer Vision" by Frost & Sullivan and "A Global Leader" by IDC in 2022. Since 2019, the company has grown revenue significantly and has expanded its global customer footprint in multiple verticals. Prior to Cogniac, Mr. Myers was President, Chief Executive Officer, and Board Member of Airgain Inc. Earlier in his career, Mr. Myers was a co-founder of the SAIC Transportation Division and was instrumental in building the first electronic toll collection system in the United States. That single project subsequently grew into the creation of Transcore, one of the larger electronic toll collection providers in the world. During this period, Mr. Myers played significant roles in several acquisitions including Syntonic, Cubic Toll Systems, and JHK Associates. Mr. Myers currently serves as a board advisor to Platform Science, a revolutionary fleet management platform; Rx.Health, a digital health platform company; and Energy311, a green energy and fintech startup. Mr. Myers holds a Master of Science degree in Management of Technology from MIT and a Bachelor of Science degree in Engineering from National University, and an Organizational Leadership Certificate from Yale School of Management. Reported Earnings • May 10
First quarter 2023 earnings: EPS and revenues miss analyst expectations First quarter 2023 results: CA$0.14 loss per share (down from CA$0.50 profit in 1Q 2022). Revenue: CA$44.0m (down 74% from 1Q 2022). Net loss: CA$15.6m (down 127% from profit in 1Q 2022). Revenue missed analyst estimates by 15%. Earnings per share (EPS) also missed analyst estimates by 100%. Revenue is forecast to grow 16% p.a. on average during the next 2 years, compared to a 6.2% growth forecast for the Communications industry in Canada. Over the last 3 years on average, earnings per share has fallen by 49% per year but the company’s share price has only fallen by 13% per year, which means it has not declined as severely as earnings. Major Estimate Revision • Apr 02
Consensus EPS estimates upgraded to CA$0.15 loss The consensus outlook for fiscal year 2023 has been updated. 2023 losses forecast to reduce from -CA$0.167 to -CA$0.15 per share. Revenue forecast steady at CA$219.4m. Communications industry in Canada expected to see average net income growth of 17% next year. Consensus price target of CA$2.25 unchanged from last update. Share price rose 10% to CA$1.53 over the past week. Major Estimate Revision • Mar 29
Consensus revenue estimates fall by 10% The consensus outlook for revenues in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from CA$246.1m to CA$220.5m. Forecast losses increased from -CA$0.074 to -CA$0.155 per share. Communications industry in Canada expected to see average net income growth of 17% next year. Consensus price target down from CA$2.73 to CA$2.25. Share price rose 3.4% to CA$1.51 over the past week. Reported Earnings • Mar 22
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: CA$0.02 (up from CA$0.20 loss in FY 2021). Revenue: CA$305.7m (up 143% from FY 2021). Net income: CA$2.77m (up CA$24.9m from FY 2021). Profit margin: 0.9% (up from net loss in FY 2021). The move to profitability was driven by higher revenue. Revenue missed analyst estimates by 1.2%. Earnings per share (EPS) also missed analyst estimates by 87%. Over the last 3 years on average, earnings per share has increased by 3% per year whereas the company’s share price has remained flat. Valuation Update With 7 Day Price Move • Mar 20
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to CA$1.51, the stock trades at a trailing P/E ratio of 13x. Average forward P/E is 20x in the Communications industry in Canada. Total returns to shareholders of 21% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CA$1.16 per share. Upcoming Dividend • Dec 01
Upcoming dividend of CA$0.013 per share Eligible shareholders must have bought the stock before 08 December 2022. Payment date: 09 January 2023. Payout ratio is a comfortable 43% and this is well supported by cash flows. Trailing yield: 3.2%. Lower than top quartile of Canadian dividend payers (5.8%). In line with average of industry peers (3.1%). Major Estimate Revision • Nov 17
Consensus EPS estimates fall by 24% The consensus outlook for earnings per share (EPS) in 2022 has deteriorated. 2022 revenue forecast decreased from CA$327.4m to CA$310.5m. EPS estimate also fell from CA$0.21 per share to CA$0.16 per share. Net income forecast to shrink 94% next year vs 23% growth forecast for Communications industry in Canada . Consensus price target down from CA$2.93 to CA$2.73. Share price fell 6.2% to CA$1.51 over the past week. 
