Quarterhill Posts Third Straight Profitable Quarter on Tolling and AI Contract Wins
Event summary
- Quarterhill reported $38.6M in Q1 2026 revenue, up 14% YoY, with gross margins expanding to 28% from 12% a year ago.
- The company secured a $60M credit facility with $100M in uncommitted accordion capacity for M&A.
- New contracts include $10.7M with Illinois Tollway and $6.4M with Massachusetts DOT for weigh-in-motion expansions.
- Adjusted EBITDA turned positive for the third consecutive quarter at $2.0M, up from ($3.4M) in Q1 2025.
- Revenue backlog stands at $428.8M as of March 31, 2026.
The big picture
Quarterhill's strong Q1 2026 results reflect its strategic pivot toward AI-driven intelligent transportation solutions, particularly in tolling and commercial vehicle enforcement. The company's ability to secure large-scale contracts with state DOTs positions it as a key player in infrastructure modernization. With a revamped balance sheet and a focus on M&A, Quarterhill is poised to capitalize on the growing demand for smart transportation technologies.
What we're watching
- M&A Execution
- Whether Quarterhill can deploy its $100M accordion facility effectively to fuel accretive growth.
- Margin Sustainability
- How the company maintains its 28% gross margin as it scales operations and integrates potential acquisitions.
- Contract Pipeline
- The pace at which Quarterhill secures new tolling and commercial vehicle enforcement contracts in key markets.
Related topics