Quest Resource reports Q2 adjusted EPS (4c), consensus 2c
Q2 Revenue Performance: The company reported Q2 revenue of $59.54 million, falling short of the consensus estimate of $72.56 million due to various operational challenges and client attrition.
Strategic Actions Taken: In response to these issues, the company has implemented management changes, cost reductions, divested an underperforming business line, and initiated a series of initiatives aimed at improving both short-term and long-term performance.
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- 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.
- Disappointing Earnings: Quest Resource reported a Q4 GAAP EPS of -$0.73, missing expectations by $0.65, indicating a significant decline in profitability that could undermine investor confidence.
- Revenue Decline: The company generated $58.9 million in revenue, a 15.8% year-over-year decrease that fell short of expectations, reflecting weak market demand and intensified competition, which may hinder future growth.
- Gross Margin Erosion: Gross profit was $42.5 million, a 14.9% decrease compared to the same period in 2024, with a gross margin of 17.0% versus 17.3% in 2024, highlighting challenges in cost control that could impact overall profitability.
- Adjusted EBITDA Drop: Adjusted EBITDA stood at $9.3 million, significantly down from $14.5 million in the same period of 2024, indicating pressure on operational efficiency and profitability that may affect future investment decisions.

Fourth Quarter Financial Results: Quest Resource Holding Corporation has reported its financial results for the fourth quarter of the fiscal year 2025, detailing key performance metrics and financial health.
Fiscal Year Overview: The report provides an overview of the company's performance throughout the fiscal year 2025, highlighting significant achievements and challenges faced during this period.

- Earnings Release Schedule: Quest Resource Holding Corporation is set to announce its fourth quarter and year-end financial results for 2025 on March 12, 2026, after market close, reflecting the company's commitment to transparency and investor communication.
- Conference Call Details: Management will host a conference call at 5:00 PM ET on the same day, where investors can dial in at 1-800-717-1738 or 1-646-307-1865 to gain insights into financial results and business outlook, aiming to bolster investor confidence.
- Webcast Access: Investors can also access the call online through the investor relations section of Quest's website, with the webcast archived for at least 90 days, ensuring information availability and demonstrating the company's ongoing engagement with investors.
- Playback Service: A telephonic playback of the conference call will be available approximately three hours after the call ends, accessible by calling 1-844-512-2921 or 1-412-317-6671, further enhancing information transparency and investor participation, fostering interaction between the company and its investors.






