Quest Resource Holding (QRHC) Earnings Date & Reports

Key Takeaways

• Revenue rose 7.6% year over year to $64.1 million, topping the roughly $63.55 million consensus estimate and returning the company to top-line growth.
• GAAP net loss widened to $(12.2) million, or $(0.57) per share, driven primarily by an $11.0 million non-cash goodwill impairment charge.
• Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) increased to $2.8 million, up from $2.7 million a year ago and $1.8 million in the first quarter.
• Gross margin compressed to 16.3% from 18.5% a year earlier, although it improved sequentially from 15.7% in the prior quarter.
• Operating cash flow of $4.5 million supported $4.6 million of year-to-date debt reduction, underscoring ongoing balance sheet progress.
• For more context on Quest Resource Holding, explore its Major News, Today's Price Move, Price Targets, and Forecast pages.
• To discover AI-driven trading ideas across the broader market, explore Trending AI Robots.

Earnings Context and Why It Matters

Quest Resource Holding Corporation, a national provider of environmental waste and recycling services, has spent recent quarters navigating subdued industrial volumes and compressed margins. The second quarter of 2026 marked a notable inflection, as management's operational excellence initiatives—cost reductions, faster collections, and a renewed focus on non-industrial end markets—began flowing through to the financials. For investors, this report matters because it tests whether the company can pair restored revenue growth with disciplined expense control and stronger cash generation, all while reducing debt. The results offer an early read on whether Quest's diversification strategy is translating into a more durable, profitable business model.

Reported Results

For the second quarter ended June 30, 2026, Quest reported revenue of $64.1 million, a 7.6% increase from $59.5 million in the prior-year period and a 3.8% sequential gain. The top line edged past the consensus estimate of roughly $63.55 million. Growth was driven by stabilizing industrial volumes and contributions from recently onboarded customers in food service, retail, and hospitality.

Gross profit declined 5.5% year over year to $10.4 million, while gross margin fell to 16.3% from 18.5% a year earlier, reflecting margin pressure among select industrial clients. Sequentially, gross profit rose 7.9% and gross margin improved from 15.7%. SG&A (selling, general, and administrative expenses) fell roughly 11% year over year to about $8.2 million, even as revenue grew.

GAAP (Generally Accepted Accounting Principles) net loss was $(12.2) million, or $(0.57) per share, including an $11.0 million non-cash goodwill impairment tied to the decline in the company's market capitalization. Excluding that charge, adjusted EBITDA rose to $2.8 million from $2.7 million a year earlier. The company generated $4.5 million in operating cash flow and reduced net notes payable by $4.6 million year to date to approximately $59.4 million.

AI Screener

Tickeron's AI Screener is an AI-powered stock and ETF discovery tool that helps traders and investors filter the market based on technical patterns, fundamentals, trends, volatility, and AI-driven signals. Users can scan thousands of stocks and ETFs using customizable filters such as industry, market capitalization, technical indicators, price patterns, and performance metrics. The screener is designed to surface trade ideas, trending stocks, breakout candidates, and market opportunities more efficiently than manual screening. For investors tracking names like Quest Resource Holding across the environmental services space, the AI Screener provides a structured way to identify and compare potential opportunities.

Market Reaction and Investor Sentiment

Quest's second-quarter results presented a mixed picture for investors. The return to revenue growth, sequential gross margin improvement, meaningful SG&A reductions, and strong operating cash flow signaled that the company's turnaround efforts are gaining traction. However, the sizable non-cash goodwill impairment—triggered by a lower market capitalization—served as a reminder of the stock's recent underperformance and lingering concerns about valuation and industrial demand. Analysts and shareholders generally focused on the underlying operating trends rather than the accounting charge, which management noted had no impact on liquidity, cash flow, or debt covenant compliance. Sentiment entering and exiting the report remained cautious, with attention centered on whether margin and cash-flow momentum can be sustained.

Forward Outlook and Key Factors to Monitor

Looking ahead, investors should watch whether Quest can hold its gross margin trajectory while industrial volumes remain subdued. Management signaled expectations for gross margins to be flat to slightly up in the third quarter as volumes ramp at select larger customers. Continued progress on cost discipline will be critical, given that SG&A reductions have been a primary driver of improved profitability.

Balance sheet and cash-cycle improvements remain central to the story. The company reduced DSOs (days sales outstanding, a measure of how quickly it collects payment) to roughly 70 days and trimmed working capital days to five. Reaching management's near-term DSO target in the mid-60s would further support debt paydown and lower interest expense.

Finally, the pace of new customer onboarding and "share of wallet" expansions in non-industrial markets will shape the revenue outlook. Management has acknowledged that sales cycles for large national accounts are elongating amid macroeconomic and geopolitical uncertainty, and rising diesel costs could pressure service delivery expenses. Investors should monitor new contract wins, industrial volume trends, and cash generation as the key signals of whether this turnaround can continue.

Disclaimer

The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.

Disclaimers and Limitations