Quest Resource Holding Corporation Reports First Quarter 2026 Financial Results
Rhea-AI Summary
Quest Resource Holding (Nasdaq: QRHC) reported Q1 2026 results: revenue $61.7M (down 9.8% YoY, up 4.8% QoQ), gross profit $9.7M (down 11.6% YoY, up 6.1% QoQ) and GAAP net loss $2.3M (EPS $(0.11)). Adjusted EBITDA was $1.8M. The company added a large quick-service restaurant franchisee, refinanced its ABL facility and used it to pay down $2.0M of higher-rate term debt.
AI-generated analysis. Not financial advice.
Positive
- SG&A reduced by roughly 26% year‑over‑year
- GAAP net loss narrowed to $2.3M from $10.4M year‑ago
- Onboarded recent customer wins that finished the quarter as contributors
- Refinanced ABL and paid down $2.0M of higher‑rate term debt
Negative
- Gross profit declined 11.6% YoY
- Adjusted EBITDA fell ~14% QoQ (from $2.1M to $1.8M)
- Revenue remained negative YoY at $61.7M (down 9.8%)
News Market Reaction – QRHC
On the day this news was published, QRHC gained 6.48%, reflecting a notable positive market reaction. Argus tracked a peak move of +16.0% during that session. Our momentum scanner triggered 3 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $1M to the company's valuation, bringing the market cap to $24.31M at that time. Trading volume was elevated at 2.0x the daily average, suggesting notable buying interest.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
QRHC fell 2.22% while most listed waste/environmental peers (DXST, LNZA, AWX, GWAV) were up between roughly flat and low-single-digit gains, and only CDTG showed a larger decline. This points to a stock-specific move rather than a sector-wide shift.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Mar 12 | Quarterly earnings | Neutral | -22.1% | Q4 and FY 2025 results with revenue declines but balance-sheet improvements and refinancing. |
| Nov 10 | Quarterly earnings | Positive | +5.0% | Q3 2025 results showing sequential revenue growth, higher margins, cash flow, and debt reduction. |
| Aug 11 | Quarterly earnings | Neutral | -9.2% | Q2 2025 results with revenue pressure but improving cash flow and debt reduction initiatives. |
| May 12 | Quarterly earnings | Negative | -4.9% | Q1 2025 results with revenue decline, large net loss, asset sale, and impairment charges. |
| Mar 12 | Quarterly earnings | Negative | -30.4% | Q4/FY 2024 results with flat revenue but lower gross profit, margin compression, and impairment. |
Earnings releases have often coincided with downside moves, even when they include operational improvements or debt reduction, suggesting the market has focused on revenue pressure and margin challenges.
Over the past year, Quest’s earnings reports have shown a pattern of revenue declines and persistent GAAP net losses, offset by ongoing cost actions and debt reduction. Q4/FY 2024 and Q1–Q2 2025 highlighted restructuring, impairments, and Operational Excellence initiatives. Q3 2025 introduced better margins and cash generation, while Q4 2025 emphasized balance-sheet improvements. Today’s Q1 2026 release continues this mix: lower year-over-year revenue but sequential growth, margin stabilization, and further leverage management.
Historical Comparison
In the past year, QRHC’s 5 earnings releases produced an average move of -12.31%. Against that backdrop, today’s -2.22% reaction to Q1 2026 results appears relatively muted versus prior earnings volatility.
Across recent earnings, Quest has moved from FY 2024 restructuring and impairments toward 2025–2026 cost controls, Operational Excellence initiatives, and debt reduction. The Q1 2026 report extends this trajectory with sequential revenue and gross profit growth but continued year-over-year revenue declines and GAAP net losses.
Market Pulse Summary
The stock moved +6.5% in the session following this news. A strong positive reaction aligns with periods when Quest combined operational improvements with balance-sheet progress, such as Q3 2025’s margin expansion and cash generation. However, past earnings around this name have averaged moves of about -12.31%, highlighting historical volatility. With Q1 2026 still showing a GAAP net loss of $2.3M and revenue down 9.8% year-over-year, investors have previously reassessed rallies as the market refocused on sustained profitability and growth traction.
Key Terms
adjusted EBITDA financial
ABL credit facility financial
AI-generated analysis. Not financial advice.
Higher sequential volumes from Industrial customers and continued growth from non-Industrial portfolio drove
Improved revenue and gross profit performance throughout the quarter
Added a large franchisee in the quick-service restaurant industry in April, which launched in May
IRVING, Texas, May 07, 2026 (GLOBE NEWSWIRE) -- Quest Resource Holding Corporation (Nasdaq: QRHC) (“Quest” or the “Company”), a national leader in environmental waste and recycling services, today announced financial results for the first quarter ended March 31, 2026.
First Quarter 2026 Highlights
- Revenue was
$61.7 million , a9.8% decrease compared with the first quarter of 2025, and a4.8% increase from the fourth quarter of 2025. - Gross profit was
$9.7 million , an11.6% decrease compared with the first quarter of 2025, and a6.1% increase from the fourth quarter of 2025. - Gross margin was
15.7% of revenue, compared with16.0% for the first quarter of 2025, and15.5% for the fourth quarter of 2025. - GAAP net loss was
$2.3 million , compared with a net loss of$10.4 million for the first quarter of 2025 (which includes a$4.4 million loss on the sale of assets and a$1.7 million impairment loss), and a net loss of$1.7 million for the fourth quarter of 2025. - GAAP net loss per basic and diluted share attributable to common stockholders was
$(0.11) , compared with$(0.50) for the first quarter of 2025 and$(0.08) for the fourth quarter of 2025. - Adjusted EBITDA was
$1.8 million , compared with$1.6 million for the first quarter of 2025, and$2.1 million for the fourth quarter of 2025.
Recent Highlights
- Successfully onboarded recent new customer wins and wallet share expansions with existing customers, all of which were fully contributing to financial results by quarter end.
- Added a large franchisee in the quick-service restaurant industry in April, which launched in May.
- Utilized recently refinanced ABL credit facility with Texas Capital Bank to pay down
$2.0 million of higher rate term debt, reducing expected interest expense.
“Throughout the first quarter, we experienced steady improvement, which is consistent with the seasonal acceleration,” said Perry W. Moss, Quest’s Chief Executive Officer. “Importantly, recent new customer wins and wallet share expansions with existing customers that we secured during the latter half of 2025 are now fully onboarded and finished the first quarter as full contributors to our results.”
Moss added, “Our sales pipeline also remains healthy as we continue to advance meaningful opportunities for both new sales and wallet share expansions. Overall, the operating environment remains difficult, though we are cautiously optimistic given improvements achieved in the quarter, and we remain acutely focused on elements within our control.”
Brett Johnston, Quest’s Chief Financial Officer, added, “Our financial strategy remains focused on managing our cost structure, leveraging our Operational Excellence initiatives to drive cash flow, and paying down debt. We’ve demonstrated a firm grasp on our operating cost structure, reducing SG&A in the first quarter by roughly
First Quarter 2026 Earnings Conference Call and Webcast
Quest will host a conference call on Thursday, May 7, 2026, at 5:00 PM ET, to review the financial results for the first quarter ended March 31, 2026. To participate, dial 1-877-270-2148 or 1-412-317-6060 (International). The conference call, which may include forward-looking statements, is also being webcast and is available via the investor relations section of Quest’s website at https://investors.qrhc.com/. A replay of the webcast will be archived on Quest’s investor relations website for at least 90 days.
About Quest Resource Holding Corporation
Quest is a national provider of waste and recycling services that empower larger businesses to excel in achieving their environmental and sustainability goals and responsibilities. Quest delivers focused expertise across multiple industry sectors to build single-source, customer-specific solutions that generate quantifiable business and sustainability results. Addressing a wide variety of waste streams and recyclables, Quest provides information and data that tracks and reports the environmental results of Quest’s services, gives actionable data to improve business operations, and enables Quest’s customers to excel in their business and sustainability responsibilities. For more information, visit https://questrmg.com/.
Reconciliation of U.S. GAAP to Non-GAAP Financial Measures
In this press release, the non-GAAP financial measure “Adjusted EBITDA” is presented. From time-to-time, Quest considers and uses supplemental measures of operating performance in order to provide an improved understanding of underlying performance trends. Quest believes it is useful to review, as applicable, both (1) GAAP measures that include (i) depreciation and amortization, (ii) interest expense, (iii) stock-based compensation expense, (iv) income tax expense, and (v) certain other adjustments, and (2) non-GAAP measures that exclude such items. Quest presents this non-GAAP measure because it considers it an important supplemental measure of Quest's performance. Quest’s definition of this adjusted financial measure may differ from a similar measure used by others. Quest believes this measure facilitates operating performance comparisons from period to period by eliminating potential differences caused by the existence and timing of certain expense items that would not otherwise be apparent on a GAAP basis. This non-GAAP measure has limitations as an analytical tool and should not be considered in isolation or as a substitute for the Company’s GAAP measures. (See attached table “Reconciliation of Net Loss to Adjusted EBITDA”).
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, which provides a “safe harbor” for such statements in certain circumstances. The forward-looking statements include, but are not limited to, our expectation that as macroeconomic conditions improve and lend incremental visibility, we may execute similar voluntary paydowns of our debt going forward as appropriate, and our expectation that these measures, along with our focus on continuous improvement, could improve our cash cycle, strengthen our balance sheet, and provide incremental financial flexibility as the operating landscape improves. Actual events or results could differ materially from those discussed in the forward-looking statements as a result of various factors, including, but not limited to, competition in the environmental services industry, the impact of the current economic environment, interruptions to supply chains, commodity price fluctuations, and extended shut down of businesses, and other factors discussed in greater detail in our filings with the Securities and Exchange Commission (“SEC”), including our Annual Report on Form 10-K for the year ended December 31, 2025. You are cautioned not to place undue reliance on such statements and to consult our SEC filings for additional risks and uncertainties that may apply to our business and the ownership of our securities. Our forward-looking statements are presented as of the date made, and we disclaim any duty to update such statements unless required by law to do so.
Investor Relations Contact:
Alpha IR Group
Ryan Coleman or Nick Nelson
QRHC@alpha-ir.com
312-445-2870
| Financial Tables Follow Quest Resource Holding Corporation and Subsidiaries STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share amounts) | ||||||||
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2026 | 2025 | |||||||
| Revenue | $ | 61,735 | $ | 68,430 | ||||
| Cost of revenue | 52,070 | 57,499 | ||||||
| Gross profit | 9,665 | 10,931 | ||||||
| Operating expenses: | ||||||||
| Selling, general, and administrative | 8,389 | 11,412 | ||||||
| Depreciation and amortization | 1,045 | 1,543 | ||||||
| (Gain) loss on sale of assets, net | (11 | ) | 4,430 | |||||
| Impairment loss | — | 1,707 | ||||||
| Total operating expenses | 9,423 | 19,092 | ||||||
| Operating income (loss) | 242 | (8,161 | ) | |||||
| Interest expense | (2,050 | ) | (2,267 | ) | ||||
| Loss on extinguishment of debt | (488 | ) | — | |||||
| Loss before taxes | (2,296 | ) | (10,428 | ) | ||||
| Income tax expense (benefit) | 22 | (22 | ) | |||||
| Net loss | $ | (2,318 | ) | $ | (10,406 | ) | ||
| Net loss per share applicable to common shareholders | ||||||||
| Basic and diluted | $ | (0.11 | ) | $ | (0.50 | ) | ||
| Weighted average number of common shares outstanding | ||||||||
| Basic and diluted | 21,197 | 20,859 | ||||||
| RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA (Unaudited) (In thousands) | ||||||||
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2026 | 2025 | |||||||
| Net loss | $ | (2,318 | ) | $ | (10,406 | ) | ||
| Depreciation and amortization | 1,208 | 1,746 | ||||||
| Interest expense | 2,050 | 2,267 | ||||||
| Stock-based compensation expense | 388 | 662 | ||||||
| (Gain) loss on sale of assets, net | (11 | ) | 4,430 | |||||
| Impairment loss | — | 1,707 | ||||||
| Loss on extinguishment of debt | 488 | — | ||||||
| Other adjustments | (35 | ) | 1,171 | |||||
| Income tax expense (benefit) | 22 | (22 | ) | |||||
| Adjusted EBITDA | $ | 1,792 | $ | 1,555 | ||||
| BALANCE SHEETS (In thousands, except per share amounts) | |||||||
| March 31, | December 31, | ||||||
| 2026 | 2025 | ||||||
| (Unaudited) | |||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 1,139 | $ | 1,014 | |||
| Accounts receivable, less allowance for doubtful accounts of | 52,055 | 49,010 | |||||
| Prepaid expenses and other current assets | 1,260 | 1,174 | |||||
| Total current assets | 54,454 | 51,198 | |||||
| Goodwill | 81,065 | 81,065 | |||||
| Intangible assets, net | 7,002 | 7,650 | |||||
| Property and equipment, net, and other assets | 5,460 | 5,638 | |||||
| Total assets | $ | 147,981 | $ | 145,551 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable and accrued liabilities | $ | 41,906 | $ | 38,384 | |||
| Other current liabilities | 65 | 128 | |||||
| Current portion of notes payable | 540 | 1,015 | |||||
| Total current liabilities | 42,511 | 39,527 | |||||
| Notes payable, net | 63,414 | 63,999 | |||||
| Other long-term liabilities | 3,394 | 1,513 | |||||
| Total liabilities | 109,319 | 105,039 | |||||
| Commitments and contingencies | |||||||
| Stockholders’ equity: | |||||||
| Preferred stock, | — | — | |||||
| Common stock, | 21 | 21 | |||||
| Additional paid-in capital | 181,452 | 180,984 | |||||
| Accumulated deficit | (142,811 | ) | (140,493 | ) | |||
| Total stockholders’ equity | 38,662 | 40,512 | |||||
| Total liabilities and stockholders’ equity | $ | 147,981 | $ | 145,551 | |||
