Q-FREE: Strong third quarter 2020 results

In the third quarter of 2020 Q-Free reported solid profitability, strong cash flow from operations, and a significant increase in order intake and order backlog. An attractive revenue mix and reduced costs were the main drivers behind the strong result.  

-We are very pleased with the performance in the third quarter. Despite several challenges caused by the Covid-19 pandemic, profitability in Q3-20 was high, our cash reserves increased, and multiple large contracts were won and signed. Q-Free currently has a strong market momentum and the outlook for the coming months is positive, comments President & CEO in Q-Free, Håkon Volldal.

Highlights for Q3-20 include:

* 210 MNOK in revenues, down 13% YoY amid reduced product sales and delayed project deliveries caused by COVID-19

* 32 MNOK in EBITDA (15% margin), up from 31 MNOK in Q3-19 (22 MNOK excl. 9 MNOK positive impact from a one-time pension adjustment), driven by an attractive revenue mix and low OPEX

* 24 MNOK in positive cash flow from operations

* 354 MNOK in order intake and >300 MNOK in awarded but not yet signed contracts

* 1 169 MNOK in order backlog, up 7% YoY and 12% QoQ

EBITDA increased to 32 MNOK with a healthy 15% margin despite low product sales and delayed project revenues caused by Covid-19. In the second and the third quarter of 2020 Q-Free has reaped the rewards for proactively and forcefully adjusting its cost base in anticipation of lower revenues. Profitability is expected to remain solid in the coming quarters based on a healthy order backlog, an attractive revenue mix, and continued cost control.

Good cash management and improved profitability enabled Q-Free to reduce its net interest-bearing debt in the quarter while simultaneously increasing its liquidity reserves. The company now has sufficient capital to fund ongoing development initiatives/delivery projects and planned investments.

On the back of big contract wins in Portugal, the USA, and Norway plus several medium-sized and small contracts, Q-Free increased its year-to-date book-to-bill ratio to 1.2 and its order backlog to a healthy 1 169 MNOK. In addition, Q-Free has been awarded contracts with an accumulated value of more than 300 MNOK. These contracts are expected to be signed in Q4-20.

-In addition to boosting order intake and backlog, the contract wins are a testament to Q-Free’s increasing competitiveness in the market. The company has invested, and continues to invest, significantly in products and services that will drive profitable growth going forward. The outlook for the fourth quarter and 2021 is positive, Volldal comments.

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A recorded version will be available after the webcast has been concluded.


Enclosures: Q3-20 report, Q3-20 presentation

For further information, please contact:

President & CEO, Håkon Volldal: +47 977 19 973

Interim CFO, Trond Christensen: +47 481 02 754


About Q-Free:

Q-Free ASA (OSE: QFR) is a global innovator in intelligent transportation systems that improve traffic flow, road safety, and air quality. With an open, collaborative approach to tolling, traffic and active transportation management, Q-Free works with customers and partners on every continent to digitize infrastructure and overcome modern mobility challenges for the greater good of society.

Headquartered in Trondheim, Norway, Q-Free has annual revenues of approximately 1 billion NOK and employs approximately 400 transportation innovators, experts and enthusiasts. To learn more about how Q-Free is changing the movements of life, visit or Twitter:@Q-FreeASA