Quarterhill Posts Profitable Quarter Ahead of Conduent Acquisition

The Toronto-based technology firm generated $42.5 million in revenue during the second quarter, compared to $43.1 million in the same period last year. Despite the marginal revenue dip, the company saw a significant expansion in gross margin, which rose to 29% from 15% a year prior. Management attributed this improvement to internal restructuring and disciplined execution on key contracts.

Looking toward the end of 2026, the company expects its $70 million acquisition of Conduent’s tolling solutions business to reshape its market presence. Upon closing, the transaction is slated to triple the company’s tolling revenue and establish it as the second-largest tolling operator in the U.S., backed by a combined $2 billion backlog. CEO Chuck Myers stated that the company’s immediate priorities remain the finalization of the deal and a smooth integration process. Meanwhile, organic growth continues to gain momentum, with recent wins in Utah, Illinois, and Oklahoma bolstering the firm’s position in the intelligent transportation sector.