Quarterhill Inc · TSX:QTRH
Quarterhill — Q1 2026 Earnings Presentation
22 slides from Quarterhill's earnings presentation, May 14, 2026
Slide 1: Investor Presentation
Investor Presentation Driving the future of transportation further, faster, smarter. May 2026
Slide 2: Important Cautionary Notes
Important Cautionary Notes Certain statements in this discussion, other than statements of historical fact, may include forward-looking information that involves various risks and uncertainties that face the Company. Such statements may contain words and expressions based on management’s current ass
Slide 3: Quarterhill: An AI-First Leader in Intelligent Transportation Systems
Quarterhill: An AI-First Leader in Intelligent Transportation Systems Transforming tolling, enforcement, and multi-modal transportation with AI-driven platforms. Technology Leader Financial Snapshot (Q1 2026) Operational Highlights Global Business Tolling Revenue: $38.6M 3B+ tolling transactions pro
Slide 4: Legacy transportation systems are undergoing a necessary AI-enabled modernization cycle
Legacy transportation systems are undergoing a Revenue Generation necessary AI-enabled Governments need revenue solutions to pay for infrastructure modernization cycle Safety Road accidents result in 18.2 deaths per 100,000 and costs 3% of countries’ GDP* on average Serviceable Addressable Market 20
Slide 5: Investment Highlights
Investment Highlights • Market valuation does not fully reflect the strength of assets, backlog, or operational improvements • Profitability inflection point: expanding margins and positive cash flow • Durable growth supported by $429M backlog and $2B+ pipeline • High-margin Commercial Vehicle & Enf
Slide 6: Changing the Industry through Vision and Focus
Changing the Industry through Vision and Focus Commercial Vehicles Quarterhill’s portfolio of products, offerings, and geography position the & Enforcement company for strategic growth. Tolling Technical Global Back Office and Roadside lines of business set to benefit from Tolling Vision Presence di
Slide 7: Market-Leading Segments Driving Growth & Margin Expansion
Market-Leading Segments Driving Growth & Margin Expansion Tolling Commercial Vehicles & Enforcement Multi-Modal Transportation • AI-enhanced accuracy modernizing • 40%+ gross margins with long- • AI-powered vehicle & cargo revenue collection tenured government customers classification for compliance
Slide 8: Technology Advantage Enabling Scalable, High-Margin Growth
Technology Advantage Enabling Scalable, High-Margin Growth Cloud-Native, Domain Expertise AI-Driven Intelligence Modular Platform & Proven Delivery • ML-based vehicle identification • Scalable microservices architecture • Global leader in WIM & enforcement • Automated image review & • Seamless integ
Slide 9: AI-First Capabilities Delivering Accuracy, Efficiency & Performance
AI-First Capabilities Delivering Accuracy, Efficiency & Performance Intelligence is at the core of everything we’re building. • AI vehicle fingerprinting and automated image review enhance accuracy and reduce manual intervention. • Predictive analytics, anomaly detection, and violation risk scoring
Slide 10: Unified Data Platform Enabling Speed, Automation & Continuous Optimization
Unified Data Platform Enabling Speed, Automation & Continuous Optimization • Centralized data lakehouse architecture streamlines ingestion, processing, and analysis. • Integrated AI and analytics improve decision-making, service quality, and operational efficiency. • Easily onboard customer data and
Slide 11: Transformation Journey
Transformation Journey © 2026 Quarterhill – Confidential and Proprietary 11
Slide 12: Executing Multi-Year Transformation to Drive High-Margin Growth and Scalable Expansion
Executing Multi-Year Transformation to Drive High-Margin Growth and Scalable Expansion Phase 1 (2024–2025) Phase 2 (2025–2026) Phase 3 (2026+) Reset & Stabilize Scale High-Margin, AI-Driven Growth AI-First ITS Platform Leader ✓ Right-sized cost structure and • Winning higher-margin business and secu
Slide 13: Financials: Clear Progress on the Path Forward
Financials: Clear Progress on the Path Forward © 2026 Quarterhill – Confidential and Proprietary 13
Slide 14: Quarterly Revenue and Gross Margin Performance
Quarterly Revenue and Gross Margin Performance $50.0 Revenue 50% Gross Margin $45.0 $43.1 45% Commentary: $39.7 $40.0 $38.5 $38.6 40% $33.9 • $429M contracted backlog $35.0 31% 35% supporting stable revenue $30.0 28% 30% 26% and long-term visibility $25.0 25% • Gross margin expansion $20.0 20% refle
Slide 15: Structural Improvements Driving Margin Expansion
Structural Improvements Driving Margin Expansion 35% 31% 30% Commentary: 28% 26% 25% • Improved project economics and stronger execution driving margin gains 20% (%) • Growing mix of software and recurring 15% 15% revenue across the platform 12% • Commercial Vehicle & Enforcement 10% deployments del
Slide 16: Adjusted EBITDA Improving with Margin Expansion and Cost Discipline
Adjusted EBITDA Improving with Margin Expansion and Cost Discipline $5.0 $4.4 Commentary: $4.0 $3.0 • Third consecutive quarter of positive Adjusted $2.0 EBITDA in Q1 2026 $2.0 $1.4 ($millions) • Significant year-over-year improvement reflecting $1.0 stronger margins and improved operating leverage
Slide 17: Improving Liquidity: Strong Operating Cash Flow and Growing Cash Balance
Improving Liquidity: Strong Operating Cash Flow and Growing Cash Balance Cash and cash equivalents Cash Flow from Operations $30.00 $- $24.8 $25.00 $(1.00) $20.00 $(2.00) ($millions) ($millions) $14.7 $(3.00) $15.00 $(4.00) ($3.6) $10.00 $5.00 $(5.00) ($5.4) $(6.00) $- Dec. 31, 2025 Mar. 31, 2026 Q1
Slide 18: $429M Contracted Backlog Provides Multi-Year Revenue Visibility
$429M Contracted Backlog Provides Multi-Year Revenue Visibility North America Backlog (Revenues, USD Millions) Tolling Commercial Vehicle & Enforcement $108.6 Commentary: $32.0 $86.8 Total Backlog $8.9 Tolling $385.6M • $429M contracted backlog CV&E $43.3M providing strong multi-year $56.6 $1.2 Tota
Slide 19: Illustrative Sum-of-the-Parts Highlights Significant Undervaluation
Illustrative Sum-of-the-Parts Highlights Significant Undervaluation Assets Illustrative Valuation Range ($M) Commercial Vehicle & Enforcement $100 - $150 Tolling $60 - $90 Contracted Backlog NPV $70 - $120 Wi-Lan Assets (Equity Stake, Cash Earn-Out, Promissory Note) $20 - $40 Quarterhill Illustrativ
Slide 20: Key Takeaways
Key Takeaways Leading ITS platform at a clear inflection point for scalable, high-margin growth • AI-first platform transforming intelligent transportation operations • Profitability inflection underway with expanding margins and positive operating cash flow • High-visibility growth supported by $42
Slide 21: Driving the future of transportation further, faster, smarter.
Driving the future of transportation further, faster, smarter. Thank you!
Slide 22: Case Study: Harris County Toll Road Authority - HCTRA
Case Study: Harris County Toll Road Authority - HCTRA Our solutions advance toll road management and customer service. Key Achievements: Key Benefits Include: Interoperability: • Enhanced Efficiency: Modernized toll collection system reduced processing times and Seamless integration with other opera