Quest Resource (QRHC) Q3 Report: Key Insights Before Earnings Release
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 09 2025
0mins
Should l Buy QRHC?
Source: Yahoo Finance
Earnings Report Expectations: Quest Resource is set to report earnings, with analysts expecting a revenue decline of 17.8% year-on-year to $59.83 million and an adjusted loss of -$0.01 per share.
Recent Performance: The company missed revenue expectations by 17.9% last quarter, and has missed Wall Street's revenue estimates twice since going public, indicating ongoing challenges.
Peer Comparisons: Competitors in the waste management sector, such as Montrose and Waste Connections, have reported positive revenue growth, contrasting with Quest Resource's struggles.
Investor Sentiment: Despite recent performance issues, Quest Resource's stock has risen 10.5% over the past month, with an average analyst price target of $3.08 compared to its current price of $1.47.
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Analyst Views on QRHC
Wall Street analysts forecast QRHC stock price to rise
2 Analyst Rating
1 Buy
1 Hold
0 Sell
Moderate Buy
Current: 1.080
Low
2.25
Averages
2.25
High
2.25
Current: 1.080
Low
2.25
Averages
2.25
High
2.25
About QRHC
Quest Resource Holding Corporation is a provider of waste and recycling services to customers from across multiple industry sectors. The Company is engaged in creating customer-specific programs and performing the related services for the collection, processing, recycling, disposal, and tracking of waste streams and recyclables. It concentrates on programs for recycling cardboard, pallets, wood waste, metal, glass, motor oil and automotive lubricants, oil filters, scrap tires, oily water, goods destruction, food waste, meat renderings, cooking oil and grease trap waste, plastics, mixed paper, construction debris, as well as a variety of regulated and non-regulated solid, liquid, and gas wastes. In addition, it offers products, such as antifreeze and windshield washer fluid, dumpster and compacting equipment, and other minor ancillary services. The Company also provides information and data that tracks and reports the detailed transactional and environmental results of its services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Quest Resource Q1 Earnings Miss Expectations
- Disappointing Earnings: Quest Resource reported a Q1 GAAP EPS of -$0.11, missing expectations by $0.01, indicating challenges in profitability that may affect investor confidence.
- Revenue Decline: The company generated $61.7M in revenue for Q1, a 9.8% year-over-year decrease, falling short of expectations by $0.5M, reflecting ongoing sales struggles amid weak market demand.
- Slight EBITDA Growth: Adjusted EBITDA was $1.8M, a modest increase from $1.6M in Q1 2025, yet still below $2.1M in Q4 2025, suggesting that cost control efforts have yet to significantly enhance overall profitability.
- Cautious Future Outlook: Quest Resource outlined a focus on margin improvement for 2026, acknowledging ongoing volume headwinds, but strategic adjustments may lay the groundwork for future recovery.
See More
Quest Resource Holding Corporation Q1 2026 Earnings Call Insights
- Revenue Trends: In Q1 2026, Quest reported revenue of $61.7 million, reflecting a 10% year-over-year decline but a 5% sequential increase from Q4, indicating gradual improvement driven by seasonality and customer demand despite ongoing industrial challenges.
- New Customer Contract: The company secured a new contract with a major franchisee in the quick service restaurant sector, marking a significant step in business diversification, with expectations for rapid gross profit contributions due to minimal start-up costs.
- Cost Management: Management highlighted effective cost control, with SG&A expenses at $8.4 million, down $3 million year-over-year, demonstrating efforts to optimize operations and enhance financial flexibility.
- Future Outlook: While specific revenue or EPS guidance was not provided, management anticipates sequential growth in gross profit in Q2, driven by contributions from new business wins and wallet share expansions, reflecting a cautiously optimistic view on future performance.
See More
Quest Resource (QRHC) Q1 2026 Earnings Transcript
See More
Analysis of Cash-Strong Companies
- Quest Resource Performance Decline: Quest Resource (NASDAQ:QRHC) has a free cash flow margin of 3.7%, yet its sales have declined by an average of 6.9% annually over the past two years, indicating a lack of competitiveness that limits its growth potential.
- High Debt Risk: The company has a free cash flow margin of -0.3% over the last five years, and a net debt-to-EBITDA ratio of 7x increases the risk of forced asset sales or dilutive financing, further constraining its ability to self-fund growth.
- Regeneron Growth Challenges: Regeneron (NASDAQ:REGN) boasts a free cash flow margin of 27.6%, but its average annual revenue growth is only 6.7%, reflecting the double-edged sword effect of scale that limits its growth potential compared to smaller competitors.
- UnitedHealth Competitive Edge: UnitedHealth (NYSE:UNH) has a free cash flow margin of 4.4% and has achieved an 11.3% annual revenue growth over the past five years, demonstrating its strong competitive position and profitability in the health insurance market.
See More
Quest Resource Holding Corporation Q4 2025 Earnings Call Insights
- Financial Performance Review: Quest Resource Holding Corporation reported Q4 2025 revenue of $58.9 million, reflecting a 16% year-over-year decline and a 7% sequential decrease, primarily due to weakness in the industrial market and the divestiture of its mall-related business, resulting in a $10.7 million reduction compared to the prior year.
- Cost Control Effectiveness: The company's SG&A expenses for Q4 were $7.7 million, representing a 24% year-over-year reduction and a 17% sequential decrease, driven by headcount reductions and cost control measures, with an anticipated annual savings of approximately $400,000 in 2026 from a new office sublease.
- Cash Flow and Debt Management: Free cash flow for Q4 was $1.7 million, with $1 million in cash on hand and $37.7 million in available borrowing capacity at year-end, alongside a $2 million debt repayment during the quarter, bringing total debt reduction for the year to $13.2 million, indicating strong financial health.
- Cautious Future Outlook: Management anticipates continued margin pressure in 2026, although they expect to mitigate this through optimizing service levels and expanding wallet share with existing clients, while remaining vigilant about ongoing softness in the industrial market and elongated sales cycles.
See More
Quest Resource (QRHC) Q4 2025 Earnings Transcript
See More
Quest Resource Q1 Earnings Miss Expectations
- Disappointing Earnings: Quest Resource reported a Q1 GAAP EPS of -$0.11, missing expectations by $0.01, indicating challenges in profitability that may affect investor confidence.
- Revenue Decline: The company generated $61.7M in revenue for Q1, a 9.8% year-over-year decrease, falling short of expectations by $0.5M, reflecting ongoing sales struggles amid weak market demand.
- Slight EBITDA Growth: Adjusted EBITDA was $1.8M, a modest increase from $1.6M in Q1 2025, yet still below $2.1M in Q4 2025, suggesting that cost control efforts have yet to significantly enhance overall profitability.
- Cautious Future Outlook: Quest Resource outlined a focus on margin improvement for 2026, acknowledging ongoing volume headwinds, but strategic adjustments may lay the groundwork for future recovery.
See More
Quest Resource Holding Corporation Q1 2026 Earnings Call Insights
- Revenue Trends: In Q1 2026, Quest reported revenue of $61.7 million, reflecting a 10% year-over-year decline but a 5% sequential increase from Q4, indicating gradual improvement driven by seasonality and customer demand despite ongoing industrial challenges.
- New Customer Contract: The company secured a new contract with a major franchisee in the quick service restaurant sector, marking a significant step in business diversification, with expectations for rapid gross profit contributions due to minimal start-up costs.
- Cost Management: Management highlighted effective cost control, with SG&A expenses at $8.4 million, down $3 million year-over-year, demonstrating efforts to optimize operations and enhance financial flexibility.
- Future Outlook: While specific revenue or EPS guidance was not provided, management anticipates sequential growth in gross profit in Q2, driven by contributions from new business wins and wallet share expansions, reflecting a cautiously optimistic view on future performance.
See More
Quest Resource (QRHC) Q1 2026 Earnings Transcript
See More
Analysis of Cash-Strong Companies
- Quest Resource Performance Decline: Quest Resource (NASDAQ:QRHC) has a free cash flow margin of 3.7%, yet its sales have declined by an average of 6.9% annually over the past two years, indicating a lack of competitiveness that limits its growth potential.
- High Debt Risk: The company has a free cash flow margin of -0.3% over the last five years, and a net debt-to-EBITDA ratio of 7x increases the risk of forced asset sales or dilutive financing, further constraining its ability to self-fund growth.
- Regeneron Growth Challenges: Regeneron (NASDAQ:REGN) boasts a free cash flow margin of 27.6%, but its average annual revenue growth is only 6.7%, reflecting the double-edged sword effect of scale that limits its growth potential compared to smaller competitors.
- UnitedHealth Competitive Edge: UnitedHealth (NYSE:UNH) has a free cash flow margin of 4.4% and has achieved an 11.3% annual revenue growth over the past five years, demonstrating its strong competitive position and profitability in the health insurance market.
See More
Quest Resource Holding Corporation Q4 2025 Earnings Call Insights
- Financial Performance Review: Quest Resource Holding Corporation reported Q4 2025 revenue of $58.9 million, reflecting a 16% year-over-year decline and a 7% sequential decrease, primarily due to weakness in the industrial market and the divestiture of its mall-related business, resulting in a $10.7 million reduction compared to the prior year.
- Cost Control Effectiveness: The company's SG&A expenses for Q4 were $7.7 million, representing a 24% year-over-year reduction and a 17% sequential decrease, driven by headcount reductions and cost control measures, with an anticipated annual savings of approximately $400,000 in 2026 from a new office sublease.
- Cash Flow and Debt Management: Free cash flow for Q4 was $1.7 million, with $1 million in cash on hand and $37.7 million in available borrowing capacity at year-end, alongside a $2 million debt repayment during the quarter, bringing total debt reduction for the year to $13.2 million, indicating strong financial health.
- Cautious Future Outlook: Management anticipates continued margin pressure in 2026, although they expect to mitigate this through optimizing service levels and expanding wallet share with existing clients, while remaining vigilant about ongoing softness in the industrial market and elongated sales cycles.
See More
Quest Resource (QRHC) Q4 2025 Earnings Transcript
See More
