- Quarterhill (TSX:QTRH) has laid off 100 employees, representing about 15 per cent of its headcount
- The move is intended to reduce costs and put the company on a path to sustainable adjusted EBITDA and operating cash flow
- Quarterhill provides tolling, logistics, and safety and enforcement solutions in the intelligent transportation systems industry
- Quarterhill stock has given back 20.73 per cent year-over-year and 35.96 per cent since 2020
Transportation technology provider Quarterhill (TSX:QTRH) has laid off 100 employees, representing about 15 per cent of its headcount, to reduce costs and put the company on a path to sustainable adjusted EBITDA and operating cash flow.
This content has been prepared as part of a partnership with Quarterhill Inc., and is intended for informational purposes only. The author owns shares in the company. The author has not been paid by Quarterhill Inc. or any third party for this article.
The cuts affected contract and full-time employees to a similar degree, mostly in areas driving the cost of sales, and will result in annualized cost savings of US$12 million that will be fully reflected in the business by 2026.
The move is part of Quarterhill’s ongoing turnaround strategy, which chief executive officer Chuck Myers characterized in the Q4 2024 as “integrating our strong operating assets, implementing leadership changes, developing our strategic plan, advancing our technology roadmap, expanding our sales pipeline and renegotiating certain tolling contracts.”
Renegotiations are underway for two tolling contracts, as per the Q1 2025 news release, accounting for US$3.2 million of US$3.4 million in adjusted EBITDA losses for the quarter.
The company’s bid to “better align resources with our long-term strategic priorities and those of our customers,” as described in Thursday’s news release, follows three consecutive years of decreasing operating losses – from US$33.98 million in 2022 to US$15.94 million in 2024 – and four consecutives years of revenue growth – posting US$153.31 million in 2024 – showing the company to be on a profitable growth path that speaks highly of its near-term future.
Leadership insights
“While it is always difficult to part with good people, these changes are necessary to ensure we remain focused and well-positioned for long-term growth,” Myers said in a statement. “This is one of several decisive steps we are taking to strengthen our financial foundation and represents a critical milestone in our objective to achieve positive adjusted EBITDA margins and operating cash flow. At the same time, as we progress through this transition period, we will be better positioned to serve our customers with the highest standard of service.”
About Quarterhill
Quarterhill provides tolling, logistics, and safety and enforcement solutions in the intelligent transportation systems industry.
Quarterhill stock (TSX:QTRH) last traded at C$1.30. The stock has given back 20.73 per cent year-over-year and 35.96 per cent since 2020.
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