Quarterhill Inc · TSX:QTRH
Quarterhill — Q2 2026 Earnings Presentation
22 slides from Quarterhill's earnings presentation, Aug 13, 2026
Slide 1: Investor Presentation
Investor Presentation Driving the future of transportation further, faster, smarter. August 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 (Q2 2026) Operational Highlights Global Business Tolling Revenue: $42.5M 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 ~$2B combined backlog* • High-margin Commercial Vehicle & Enforcement
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: Legacy Financials: Clear Progress on the Path Forward
Legacy 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 Revenue $50.0 50% Gross Margin $45.0 $43.1 $42.5 45% Commentary: $39.7 $40.0 $38.5 $38.6 40% $33.9 • $415M contracted backlog $35.0 31% 35% 29% supporting stable revenue $30.0 28% 30% 26% and long-term visibility $25.0 25% • Gross margin expansion $20.0
Slide 15: Structural Improvements Driving Margin Expansion
Structural Improvements Driving Margin Expansion 35% 31% 30% 29% 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 $4.6 $4.4 Commentary: $4.0 $3.0 • Fourth consecutive quarter of positive Adjusted $2.0 EBITDA in Q2 2026 $2.0 $1.4 ($millions) • Significant year-over-year improvement reflecting $1.0 stronger margins and improved operating lev
Slide 17: Liquidity Position: Cash Flow and Cash Balance
Liquidity Position: Cash Flow and Cash Balance Cash and Cash Equivalents Cash Flow from Operations $30.00 $8.00 $26.2 $6.00 $5.7 $25.00 $4.00 $20.00 ($millions) ($millions) $2.00 $14.7 $15.00 $- $10.00 $(2.00) $5.00 $(4.00) ($4.6) $(6.00) $- Mar. 31, 2026 Jun. 30, 2026 Q2 2025 Q2 2026 © 2026 Quarter
Slide 18: $415M Contracted Backlog Provides Multi-Year Revenue Visibility
$415M Contracted Backlog* Provides Multi-Year Revenue Visibility North America Backlog (Revenues, USD Millions) Tolling Commercial Vehicle & Enforcement Commentary: $91.9 Total Backlog $81.0 $13.4 Tolling $372.4M • $415M contracted backlog $26.5 CV&E $43.0M $60.6 providing strong multi-year $1.8 Tot
Slide 19: Acquisition of Conduent's Tolling Solutions Business
Acquisition of Conduent’s Tolling Solutions Business © 2025 Quarterhill – Confidential and Proprietary 19
Slide 20: Transformational Acquisition of Conduent's Tolling Solutions Business
Transformational Acquisition of Conduent’s Tolling Solutions Business Definitive agreement announced June 30, 2026 to acquire substantially all assets of Conduent’s tolling solutions business; expected to close in Q4 2026 Key Highlights: • Expected to approximately triple Quarterhill’s tolling reven
Slide 21: Key Takeaways
Key Takeaways Leading ITS platform at a clear inflection point for scalable, high-margin growth • AI-first platform transforming intelligent transportation operations • Transformational acquisition of Conduent's tolling business expected to approximately triple tolling revenue and create a leading t
Slide 22: Driving the future of transportation further, faster, smarter.
Driving the future of transportation further, faster, smarter. Thank you!