Mr. Chuck Myers reports

QUARTERHILL STREAMLINES OPERATIONS TO REDUCE COSTS AND ALIGN WITH STRATEGIC PRIORITIES

Quarterhill Inc. has made a work force reduction of approximately 100 positions, representing approximately 15 per cent of total head count. This strategic initiative is intended to reduce costs, accelerate the path toward sustainable positive adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) and operating cash flow, and better align resources with the company's long-term strategic priorities and those of its customers.

The reduction, affecting both contract and full-time roles in roughly equal measure, is expected to generate annualized cost savings of approximately $12-million (U.S.). The reduction is primarily focused on operational areas that affect cost of sales, with a partial benefit to be realized in 2025 and the full benefit expected in 2026.

"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," said Chuck Myers, chief executive officer at Quarterhill. "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 Inc.

Quarterhill is a leading provider of tolling, safety and enforcement, and logistics solutions in the intelligent transportation system (ITS) industry. The company's goal is technology-driven global leadership in ITS through organic growth of its businesses and by continuing an acquisition-oriented investment strategy that capitalizes on attractive growth opportunities within ITS and its adjacent markets. Quarterhill is listed on the Toronto Stock Exchange under the symbol QTRH and on the OTCQX Best Market under the symbol QTRHF.

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