Quarterhill Inc · TSX:QTRH
Quarterhill — Q4 2025 Earnings Presentation
22 slides from Quarterhill's earnings presentation, Mar 23, 2026
Slide 1: Investor Presentation
Investor Presentation Driving the future of transportation further, faster, smarter. March 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 (Q4 2025) Operational Highlights Global Business Tolling Revenue: $38.5M 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 $404M backlog and $2B+ pipeline • High-margin Safety & Enforcement bus
Slide 6: Changing the Industry through Vision and Focus
Changing the Industry through Vision and Focus Safety & Quarterhill’s portfolio of products, offerings and geographies positions the Enforcement company for strategic growth. Tolling Technical Global Back Office and Roadside lines of business set to benefit from Tolling Vision Presence disruptive te
Slide 7: Market-Leading Segments Driving Growth & Margin Expansion
Market-Leading Segments Driving Growth & Margin Expansion Tolling Safety & 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 and safety •
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 50% Revenue $45.0 Gross Margin $43.1 45% Commentary: $39.7 $40.0 $38.5 40% $33.9 • $404M contracted backlog $35.0 31% 35% supporting stable revenue $30.0 30% 26% and long-term visibility $25.0 25% • Gross margin expansion $20.0 20% reflects improv
Slide 15: Structural Improvements Driving Margin Expansion
Structural Improvements Driving Margin Expansion 35% 31% 30% Commentary: 26% 25% • Improved project economics and 20% stronger execution driving margin 20% (%) gains 15% 15% • Growing mix of software and 12% recurring revenue across the platform 10% • Safety & Enforcement deployments delivering cons
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 • Second consecutive quarter of positive Adjusted EBITDA in Q4 2025 $2.0 $1.4 ($millions) $1.2 • 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 $7.00 $6.5 $24.1 $24.8 $6.00 $25.00 $5.00 $20.00 ($millions) ($millions) $4.1 $4.00 $15.00 $3.00 $10.00 $2.00 $5.00 $1.00 $- $- Sept. 30, 2025 Dec. 31, 2025 Q4 2024 Q4
Slide 18: $404M Contracted Backlog Provides Multi-Year Revenue Visibility
$404M Contracted Backlog Provides Multi-Year Revenue Visibility North America Backlog (Revenues, USD Millions) Tolling Backlog Safety & Enforcement Backlog $119.8 Commentary: 32.2 Total Backlog • $404M contracted backlog $71.6 Tolling $365.0M providing strong multi-year 4.8 $60.6 S&E $39.3M 1.4 reve
Slide 19: Illustrative Sum-of-the-Parts Highlights Significant Undervaluation
Illustrative Sum-of-the-Parts Highlights Significant Undervaluation Assets Illustrative Valuation Range ($M) Safety & Enforcement $100 - $150 Tolling $60 - $90 Contracted Backlog NPV $70 - $120 Wi-Lan Assets (Equity Stake, Cash Earn-Out, Promissory Note) $20 - $40 Quarterhill Illustrative Value $250
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 $40
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