Q-Free: Third quarter 2021 financial results

(Oslo, 28 October 2021) Q-Free ASA (OSE: QFR) reported EBITDA of NOK 31 million and EBIT of NOK 18 million on revenues of NOK 204 million in the third quarter of 2021. At the end of the quarter the company had a backlog of NOK 1.1 billion and annual recurring revenues of NOK 245 million. Q-Free reiterates its positive short- and long-term outlook.

“The performance in the third quarter was solid with 4 percent organic revenue growth despite supply chain constraints, robust profitability with significantly improved earnings per share, and strong cash flow from operations.” says Håkon Volldal, President and CEO of Q-Free.

In the third quarter of 2021 Q-Free generated revenues of NOK 204 million (210), up 4 percent adjusted for currency effects and discontinued business. The revenues in the quarter were negatively impacted by low availability of microcontrollers for tolling tags. Due to high margins and cost control EBITDA* ended at NOK 31 million (32) in the quarter, while EBIT came in at NOK 18 million (18). Earnings per share was NOK 0.13 (0.03).

The order intake was NOK 118 million (354) and the backlog ended at NOK 1135 million (1169). Q-Free was awarded two important contracts in early October after closing of the third quarter: a tolling system contract in Australia and a tolling frame agreement in Norway.

“We have a very promising contract pipeline, which is expected to increase order intake and backlog in the coming quarters, “ Volldal continues.

The cash flow from operations in the third quarter of 2021 was up 50 percent year-on-year to NOK 36 million (24) and net interest-bearing debt was down 40% year-on-year to NOK 141 million (233).

The outlook for 2021 remains positive despite global supply constraints for microcontrollers that will negatively impact revenues. Q-Free reiterates its 2025 ambitions of NOK 1.3-1.5 billion in revenues and an EBITDA margin in the 15-20 percent range. Annual recurring revenues were NOK 245 million at the end of the third quarter, of which software revenues amounted to NOK 117 million.

“Q-Free has a solid margin structure, an attractive contract pipeline, and continues to increase its base of annual recurring revenues. The company is well positioned to benefit from positive macro trends related to efficient, safe, and sustainable transportation,” Volldal concludes.

Q-Free will host a webcast on 28 October to present its third quarter results. The presentation starts at 09:00 CET and can be followed live on:

A recorded version will be available after the webcast has been concluded. The report from the Board of Directors and the webcast presentation are enclosed.

* EBITDA and other alternative performance measures (APMs) are defined and reconciled to the IFRS financial statements as a part of the APM section of the third quarter 2021 financial report on page 29.

This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act. This stock exchange announcement was published by Rita Bøe Isaksen, Board Secretary in Q-Free ASA, on 28 October 2021 at 07:00 CET.

For further information, please contact:

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

Trond Christensen, CFO, +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 350 transportation innovators, experts, and enthusiasts. To learn more about how Q-Free is “changing the movements of life”, visit or Twitter:@Q-FreeASA