Quest Resource Holding Corporation Reports Fourth Quarter and Fiscal Year 2025 Financial Results
Rhea-AI Summary
Quest (Nasdaq: QRHC) reported fourth-quarter and full-year 2025 results with continued revenue declines but tangible balance-sheet improvements and operational actions. Revenue was $58.9M in Q4 (down 15.8% YoY) and $250.2M for FY2025 (down 13.3% YoY). Q4 GAAP net loss narrowed to $1.7M from $9.5M a year earlier. Adjusted EBITDA was $2.1M in Q4 and $9.3M for FY2025. The company reduced debt by $13.2M in 2025 (16.4% reduction) and refinanced its ABL facility with covenant easements into 2027. Management highlighted new customer onboarding and share-of-wallet expansions as drivers for 2026 improvement.
Positive
- Q4 GAAP net loss narrowed to $1.7M from $9.5M
- Debt reduced by $13.2M in 2025 (16.4% reduction)
- Refinanced ABL facility and secured covenant easements into 2027
- Launched share-of-wallet expansions and onboarded a new restaurant customer
Negative
- FY2025 revenue declined 13.3% year-over-year to $250.2M
- Q4 2025 revenue down 15.8% year-over-year to $58.9M
- Adjusted EBITDA fell to $9.3M from $14.5M year-over-year (FY)
- Gross profit declined ~14.9% year-over-year for FY2025
News Market Reaction – QRHC
In the Mar 13 session, QRHC declined 22.07%, reflecting a significant negative market reaction. Argus tracked a trough of -26.5% from its starting point during tracking. Our momentum scanner triggered 10 alerts that day, indicating notable trading interest and price volatility. Trading volume was exceptionally heavy at 7.3x the daily average, suggesting significant selling pressure.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Nov 10 | Q3 2025 earnings | Positive | +5.0% | Sequential revenue growth, margin expansion, narrower loss, stronger cash flow. |
| Aug 11 | Q2 2025 earnings | Negative | -9.2% | Double-digit revenue decline and lower gross profit despite operational progress. |
| May 12 | Q1 2025 earnings | Negative | -4.9% | Revenue drop, sharply higher loss, non-cash charges, and lower Adjusted EBITDA. |
| Mar 12 | Q4 2024 earnings | Negative | -30.4% | Margin compression, impairment-driven loss despite slightly higher revenue and new clients. |
| Nov 07 | Q3 2024 earnings | Negative | -12.7% | Rising revenue but declining gross profit and continued GAAP net loss. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings releases have generally led to negative post-news moves (average around -10.44%), with only one recent quarter showing a positive reaction despite mixed fundamentals.
Over the last five earnings releases from Nov 2024 through Nov 2025, Quest reported declining or pressured revenue and profitability, while emphasizing operational initiatives, debt reduction, and new customer wins. Q1–Q3 2025 each showed year-over-year revenue declines and GAAP losses, with Q1 2025 impacted by a $5M asset sale and related non-cash charges. Q3 2025 delivered improved margins and narrower losses, prompting a positive reaction. However, most prior earnings led to share price declines, framing today’s Q4/FY 2025 report within a pattern of challenging fundamentals offset by operational and balance sheet actions.
Key Terms
gaap financial
adjusted ebitda financial
abl credit facility financial
covenant easements financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Strategic initiatives and new customers are delivering improved underlying performance, masked by ongoing sector and macroeconomic environment business pressures
Launched significant share of wallet expansions with two major customers and onboarded a new full-service restaurant customer
Reduced debt by
IRVING, Texas, March 12, 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 fourth quarter and fiscal year ended December 31, 2025.
Fourth Quarter 2025 Highlights
- Revenue was
$58.9 million , a15.8% decrease compared with the fourth quarter of 2024, and a7.0% decrease from the third quarter of 2025. - Gross profit was
$9.1 million , a15.1% decrease compared with the fourth quarter of 2024, and a20.6% decrease from the third quarter of 2025. - Gross margin was
15.5% of revenue, compared with15.3% for the fourth quarter of 2024. - GAAP net loss was
$1.7 million , compared with a net loss of$9.5 million for the fourth quarter of 2024. - GAAP net loss per basic and diluted share attributable to common stockholders was
$(0.08) , compared with$(0.46) for the fourth quarter of 2024. - Adjusted EBITDA was
$2.1 million , compared with$1.7 million for the fourth quarter of 2024.
Fiscal Year 2025 Highlights
- Revenue was
$250.2 million , a13.3% decrease compared with the same period of 2024. - Gross profit was
$42.5 million , a14.9% decrease compared with the same period of 2024. - Gross margin was
17.0% of revenue, compared with17.3% for the same period of 2024. - GAAP net loss was
$15.4 million , compared with a net loss of$15.1 million for the same period of 2024. - GAAP net loss per basic and diluted share attributable to common stockholders was
$(0.73) , which is consistent with the same period of 2024. - Adjusted EBITDA was
$9.3 million compared to$14.5 million during the same period of 2024.
Recent Highlights
- Launched a significant expansion of an existing retail customer, onboarded a new full-service restaurant customer, and expanded share of wallet wins with two major customers.
- Reduced debt by
$13.2 million in 2025, a16.4% reduction from December 31, 2024. - Refinanced ABL credit facility with Texas Capital Bank and concurrently secured covenant easements into 2027 to gain additional financial flexibility and to provide significant room to operate in a challenging macro environment.
“The strategic efforts made over the past year to drive operational efficiency across the business are making solid progress, but the business continues to navigate a difficult macroeconomic environment,” said Dan M. Friedberg, Chairman of the Company’s Board of Directors. “We are on much more solid footing and Quest is a fundamentally stronger business focused on delivering improved results in 2026.”
“While our financial performance in the fourth quarter continued to be challenged by lower volumes from our large industrial customers, strategic efforts made over the past year to drive operational efficiency across the business are delivering improved performance, and we remain confident that we are taking the right measures to position the business for a meaningful inflection when conditions normalize,” said Perry W. Moss, Quest’s Chief Executive Officer. “We are controlling what we can control and are taking significant and comprehensive action across every business function. We continue to bring this same disciplined approach to our new sales and share of wallet initiatives. Recent new contract wins are ramping as expected, and we are seeing encouraging traction with share-of-wallet initiatives that are delivering incremental organic growth. Altogether, we see these initiatives supporting an improved outlook for 2026.”
Brett Johnston, Quest’s Chief Financial Officer, added, “We continue to look for proactive measures to improve our financing costs and give ourselves greater flexibility on our lines of credit as our initiatives to improve profitability and cash flow take hold. To that end, we recently refinanced our ABL credit facility with Texas Capital Bank and negotiated both fixed charge and leverage covenant easements across 2026 and into 2027 on our term debt. These combined efforts will provide ample cushion to operate in this challenging environment while we continue to focus on the execution and completion of our initiatives to drive efficiencies and operating leverage across the business while investing in growth through new clients and wallet share.”
Fourth Quarter and Fiscal Year 2025 Earnings Conference Call and Webcast
Quest will host a conference call on Thursday, March 12, 2026, at 5:00 PM ET, to review the financial results for the fourth quarter and year ended December 31, 2025. To participate, dial 1-800-717-1738 or 1-646-307-1865. 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 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, client-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 clients 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 belief that strategic efforts made over the past year to drive operational efficiency across the business are delivering improved performance, our belief that our initiatives are supporting an improved outlook for 2026, and our belief that our combined efforts of refinancing our ABL credit facility and amending our term loan debt will provide ample cushion to operate in this challenging operating environment while we continue to focus on the execution and completion of our initiatives to drive efficiencies and operating leverage across the business while investing in growth through new clients and wallet share. 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 (In thousands, except per share amounts) | ||||||||||||||||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||
| Revenue | $ | 58,906 | $ | 69,970 | $ | 250,217 | $ | 288,532 | ||||||||||||||||||||||||||
| Cost of revenue | 49,797 | 59,243 | 207,673 | 238,537 | ||||||||||||||||||||||||||||||
| Gross profit | 9,109 | 10,727 | 42,544 | 49,995 | ||||||||||||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||||||||||
| Selling, general, and administrative | 7,687 | 10,086 | 37,634 | 39,543 | ||||||||||||||||||||||||||||||
| Depreciation and amortization | 1,130 | 2,307 | 5,276 | 9,401 | ||||||||||||||||||||||||||||||
| (Gain) loss on sale of assets, net | (255 | ) | — | 4,084 | — | |||||||||||||||||||||||||||||
| Impairment loss | — | 5,511 | 1,707 | 5,511 | ||||||||||||||||||||||||||||||
| Total operating expenses | 8,562 | 17,904 | 48,701 | 54,455 | ||||||||||||||||||||||||||||||
| Operating income (loss) | 547 | (7,177 | ) | (6,157 | ) | (4,460 | ) | |||||||||||||||||||||||||||
| Interest expense | (2,178 | ) | (2,505 | ) | (9,209 | ) | (10,312 | ) | ||||||||||||||||||||||||||
| Loss before taxes | (1,631 | ) | (9,682 | ) | (15,366 | ) | (14,772 | ) | ||||||||||||||||||||||||||
| Income tax expense (benefit) | 25 | (174 | ) | 16 | 291 | |||||||||||||||||||||||||||||
| Net loss | $ | (1,656 | ) | $ | (9,508 | ) | $ | (15,382 | ) | $ | (15,063 | ) | ||||||||||||||||||||||
| Net loss per share applicable to common stockholders | ||||||||||||||||||||||||||||||||||
| Basic and diluted | $ | (0.08 | ) | $ | (0.46 | ) | $ | (0.73 | ) | $ | (0.73 | ) | ||||||||||||||||||||||
| Weighted average number of common shares outstanding | ||||||||||||||||||||||||||||||||||
| Basic and diluted | 21,110 | 20,837 | 20,998 | 20,617 | ||||||||||||||||||||||||||||||
| RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA (Unaudited) (In thousands) | ||||||||||||||||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||||||||||
| Net loss | $ | (1,656 | ) | $ | (9,508 | ) | $ | (15,382 | ) | $ | (15,063 | ) | ||||||||||||||||||||||
| Depreciation and amortization | 1,307 | 2,558 | 6,051 | 10,272 | ||||||||||||||||||||||||||||||
| Interest expense | 2,178 | 2,505 | 9,209 | 10,312 | ||||||||||||||||||||||||||||||
| Stock-based compensation expense | (48 | ) | 272 | 1,617 | 1,563 | |||||||||||||||||||||||||||||
| Acquisition, integration, and related costs | — | 21 | — | 112 | ||||||||||||||||||||||||||||||
| (Gain) loss on sale of assets, net | (255 | ) | — | 4,084 | — | |||||||||||||||||||||||||||||
| Impairment loss | — | 5,511 | 1,707 | 5,511 | ||||||||||||||||||||||||||||||
| Other adjustments | 569 | 491 | 1,995 | 1,471 | ||||||||||||||||||||||||||||||
| Income tax expense (benefit) | 25 | (174 | ) | 16 | 291 | |||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 2,120 | $ | 1,676 | $ | 9,297 | $ | 14,469 | ||||||||||||||||||||||||||
| BALANCE SHEETS (In thousands, except per share amounts) | |||||||||
| December 31, | December 31, | ||||||||
| 2025 | 2024 | ||||||||
| ASSETS | |||||||||
| Current assets: | |||||||||
| Cash and cash equivalents | $ | 1,014 | $ | 396 | |||||
| Accounts receivable, less allowance for doubtful accounts of and | 49,010 | 62,252 | |||||||
| Prepaid expenses and other current assets | 1,174 | 2,601 | |||||||
| Assets held for sale | — | 9,890 | |||||||
| Total current assets | 51,198 | 75,139 | |||||||
| Goodwill | 81,065 | 81,065 | |||||||
| Intangible assets, net | 7,650 | 12,946 | |||||||
| Property and equipment, net, and other assets | 5,638 | 6,495 | |||||||
| Total assets | $ | 145,551 | $ | 175,645 | |||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||
| Current liabilities: | |||||||||
| Accounts payable and accrued liabilities | $ | 38,384 | $ | 39,899 | |||||
| Other current liabilities | 128 | 1,001 | |||||||
| Current portion of notes payable | 1,015 | 1,651 | |||||||
| Liabilities held for sale | — | 1,840 | |||||||
| Total current liabilities | 39,527 | 44,391 | |||||||
| Notes payable, net | 63,999 | 76,265 | |||||||
| Other long-term liabilities | 1,513 | 833 | |||||||
| Total liabilities | 105,039 | 121,489 | |||||||
| Commitments and contingencies | |||||||||
| Stockholders’ equity: | |||||||||
| Preferred stock, shares issued and outstanding as of December 31, 2025 and 2024 | — | — | |||||||
| Common stock, 20,960 and 20,606 shares issued and outstanding as of December 31, 2025 and 2024, respectively | 21 | 21 | |||||||
| Additional paid-in capital | 180,984 | 179,246 | |||||||
| Accumulated deficit | (140,493 | ) | (125,111 | ) | |||||
| Total stockholders’ equity | 40,512 | 54,156 | |||||||
| Total liabilities and stockholders’ equity | $ | 145,551 | $ | 175,645 | |||||
