Quest Resource Holding Corporation Reports Second Quarter 2025 Financial Results
Quest Resource Holding Corporation (NASDAQ:QRHC) reported Q2 2025 financial results showing mixed performance with signs of operational improvement despite revenue challenges. Revenue decreased 18.6% year-over-year to $59.5 million, while gross profit declined 18.4% to $11.0 million. The company posted a net loss of $2.0 million, or $(0.09) per share.
Notable achievements include generating $3.9 million in operating cash flow and reducing debt by $6.6 million year-to-date. The company secured new client wins in the restaurant sector and expanded geographically with an existing retail client. Management's Operational Excellence Initiatives are showing positive results, focusing on cash generation, profitability, and process improvement despite continued softness in the industrial end market.
Quest Resource Holding Corporation (NASDAQ:QRHC) ha riportato i risultati del 2° trimestre 2025, mostrando performance contrastanti ma segnali di miglioramento operativo nonostante le difficoltà sui ricavi. I ricavi sono scesi del 18,6% su base annua a $59,5 milioni, mentre l'utile lordo è diminuito del 18,4% a $11,0 milioni. La società ha registrato una perdita netta di $2,0 milioni, ovvero $(0,09) per azione.
Tra i risultati degni di nota, la società ha generato $3,9 milioni di flusso di cassa operativo e ha ridotto il debito di $6,6 milioni da inizio anno. Ha acquisito nuovi clienti nel settore della ristorazione e ampliato la presenza geografica con un cliente retail esistente. Le iniziative di Operational Excellence della direzione stanno producendo effetti positivi, con focus sulla generazione di cassa, la redditività e il miglioramento dei processi, nonostante la persistenza della debolezza nel mercato industriale.
Quest Resource Holding Corporation (NASDAQ:QRHC) presentó los resultados del 2T 2025, con un desempeño mixto pero señales de mejora operativa a pesar de los retos en los ingresos. Los ingresos disminuyeron un 18,6% interanual hasta $59,5 millones, y el beneficio bruto cayó un 18,4% hasta $11,0 millones. La compañía registró una pérdida neta de $2,0 millones, o $(0,09) por acción.
Entre los logros destacables, generó $3,9 millones de flujo de caja operativo y redujo la deuda en $6,6 millones en lo que va del año. Consiguió nuevos clientes en el sector de restauración y amplió su presencia geográfica con un cliente minorista existente. Las iniciativas de Operational Excellence de la dirección muestran resultados positivos, centradas en la generación de efectivo, la rentabilidad y la mejora de procesos, pese a la debilidad continua del mercado industrial.
Quest Resource Holding Corporation (NASDAQ:QRHC)는 2025년 2분기 실적을 발표했으며, 매출 압박 속에서도 운영 개선의 징후를 보이는 혼합된 성과를 나타냈습니다. 매출은 전년 대비 18.6% 감소한 $59.5백만을 기록했고, 매출총이익은 18.4% 줄어 $11.0백만이었습니다. 회사는 $2.0백만의 순손실을 기록했으며 주당 순손실은 $(0.09)였습니다.
주요 성과로는 영업활동으로 $3.9백만의 현금흐름을 창출하고 연초 이후 부채를 $6.6백만 줄였다는 점이 있습니다. 외식업 부문에서 신규 고객을 확보했고 기존 소매 고객과의 지리적 확장을 진행했습니다. 경영진의 Operational Excellence 이니셔티브는 현금 창출, 수익성, 프로세스 개선에 중점을 두며 긍정적 결과를 보이고 있으나 산업 최종 시장의 약세는 계속되고 있습니다.
Quest Resource Holding Corporation (NASDAQ:QRHC) a publié ses résultats du 2e trimestre 2025, montrant des performances mitigées mais des signes d'amélioration opérationnelle malgré des difficultés sur les revenus. Les revenus ont diminué de 18,6% en glissement annuel à $59,5 millions, tandis que le bénéfice brut a chuté de 18,4% à $11,0 millions. La société a enregistré une perte nette de $2,0 millions, soit $(0,09) par action.
Parmi les faits marquants, elle a généré $3,9 millions de flux de trésorerie d'exploitation et réduit sa dette de $6,6 millions depuis le début de l'année. Elle a remporté de nouveaux clients dans la restauration et étendu sa présence géographique avec un client retail existant. Les initiatives d'Operational Excellence de la direction donnent des résultats positifs, axées sur la génération de trésorerie, la rentabilité et l'amélioration des processus, malgré la faiblesse persistante du marché industriel.
Quest Resource Holding Corporation (NASDAQ:QRHC) meldete Ergebnisse für das 2. Quartal 2025 mit einer uneinheitlichen Entwicklung, aber Anzeichen betrieblicher Verbesserung trotz Umsatzschwierigkeiten. Der Umsatz ging um 18,6% gegenüber dem Vorjahr auf $59,5 Mio. zurück, der Bruttogewinn sank um 18,4% auf $11,0 Mio. Das Unternehmen verzeichnete einen Nettogewinnverlust von $2,0 Mio., bzw. $(0,09) je Aktie.
Zu den bemerkenswerten Punkten zählen die Erzielung von $3,9 Mio. operativem Cashflow und eine Reduzierung der Verschuldung um $6,6 Mio. seit Jahresbeginn. Das Unternehmen gewann neue Kunden im Gastronomiesektor und weitete die geografische Präsenz bei einem bestehenden Einzelhandelskunden aus. Die Operational-Excellence-Initiativen des Managements zeigen positive Effekte mit Fokus auf Cash-Generierung, Profitabilität und Prozessverbesserung, trotz anhaltender Schwäche im Industrieendmarkt.
- Generated $3.9 million in operating cash flow in Q2 2025
- Reduced debt by $6.6 million year-to-date
- Gross margin improved 250 basis points sequentially to 18.5%
- Sequential improvement in gross profits and adjusted EBITDA
- Secured new client wins in restaurant sector and retail expansion
- Revenue declined 18.6% year-over-year to $59.5 million
- Net loss widened to $2.0 million from $1.5 million in Q2 2024
- Adjusted EBITDA decreased to $2.7 million from $5.1 million year-over-year
- Recognized $4.5 million non-cash loss on sale of RWS assets
- Continued softness in industrial end market affecting performance
Insights
Quest shows operational improvement despite revenue decline, with sequential gross profit growth and significant debt reduction.
Quest Resource's Q2 2025 results reveal a company in transition, working to overcome multiple operational challenges from the previous year. While revenue declined
The most encouraging sign is cash flow generation of
The revenue decline stems from three factors: industrial sector slowdown, client attrition, and the strategic divestiture of an underperforming business segment (the tenant-direct mall portion of RWS sold in Q1). However, management has implemented specific operational excellence initiatives focused on cash generation and profitability that are showing early positive results.
Despite posting a net loss of
The company has secured important new business wins - adding a restaurant client and expanding geographic coverage with an existing retail client - which could help offset some of the revenue challenges. However, management noted that macroeconomic uncertainties are causing potential clients to delay decisions, slowing their growth initiatives.
Overall, while Quest faces continued challenges in the industrial segment and shows year-over-year declines in most metrics, the sequential improvements in gross profit, reduced SG&A costs, and strong cash generation suggest the company's operational turnaround is progressing, though not yet complete.
Generated
Posted sequential improvements in gross profits and adjusted EBITDA
Roll out of Operational Excellence Initiatives is on track and continuing with a focus on cash generation, profitability, and process improvement
THE COLONY, Texas, Aug. 11, 2025 (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 second quarter ended June 30, 2025.
Second Quarter 2025 Highlights
- Revenue was
$59.5 million , an18.6% decrease compared with the second quarter of 2024, and a13.0% decrease sequentially from the first quarter of 2025. - Gross profit was
$11.0 million , an18.4% decrease compared with the second quarter of 2024, and a1.0% increase sequentially from the first quarter of 2025. - Gross margin was
18.5% of revenue compared with18.5% for the second quarter of 2024, and a 250 basis point improvement sequentially from the first quarter of 2025. - GAAP net loss was
$(2.0) million , compared with GAAP net loss of$(1.5) million during the second quarter of 2024, and a net loss of$(10.4) million during the first quarter of 2025. - GAAP net loss per basic and diluted share attributable to common stockholders was
$(0.09) , compared with$(0.07) for the second quarter of 2024, and$(0.50) for the first quarter of 2025. - Adjusted EBITDA was
$2.7 million , compared with$5.1 million during the second quarter of 2024, and$1.6 million during the first quarter of 2025. - Adjusted net loss per diluted share was
$(0.04) , compared with adjusted net income of$0.03 per diluted share during the second quarter of 2024, and$(0.14) per share during the first quarter of 2025.
Year-to-Date 2025 Highlights (June 30, 2025)
- Revenue was
$128.0 million , a12.2% decrease compared with the same period of 2024. - Gross profit was
$22.0 million , a20.3% decrease compared with the same period of 2024. - Gross margin was
17.2% of revenue compared with18.9% during the same period of 2024. - GAAP net loss was
$(12.4) million , compared with GAAP net loss of$(2.2) million during the same period of 2024. - GAAP net loss per basic and diluted share attributable to common stockholders was
$(0.59) , compared with$(0.11) during the same period of 2024. - Recognized a non-cash loss on sale of assets of
$4.5 million , or$(0.21) per basic and diluted share, related to the sale of the tenant-direct mall portion of RWS during the first quarter of 2025. Recognized a non-cash loss of$1.7 million , or$(0.08) per basic and diluted share, related to an impairment charge on intangible assets during the first quarter of 2025. - Year-to-date Adjusted EBITDA was
$4.2 million , a58.7% decrease compared to$10.3 million during the same period of 2024. - Adjusted net loss per diluted share was
$(0.18) , compared with adjusted net income of$0.10 per diluted share during the same period of 2024.
Recent Highlights
- Improved cash cycle times, generating
$3.9 million of operating cash flow during the second quarter of 2025. - Reduced debt by
$6.6 million year-to-date. - Secured significant competitive wins; a new client in the restaurant end market and a geographic expansion with an existing client in the retail end market.
“We experienced a host of issues last year. These include a number of operational issues, an industrial sector slowdown, and client attrition; as well as challenges related to adding a record number of new clients and systems integration. We took decisive, well-documented actions to address these issues. These include reductions and additions to the management team, making cost reductions, selling an underperforming business line, and resetting financial covenants with our lenders. Since then, we have launched an intensive set of initiatives focused on driving short-term improvements and long-term operating and financial performance.
Our efforts to fundamentally improve our operations and produce more consistent financial results are on track. Sequential revenue comparisons reflect the sale of the non-core portion of our RWS business at the end of the first quarter and continued softness with clients in the industrial end market. Sequential growth in gross profit dollars, a decrease in SG&A costs and strong operating cash flow generation were all a direct result of the performance-focused actions we took earlier this year. Despite continued softness in the industrial end market, we are on track to continue to deliver improvements in the trajectory of the business,” said Dan M. Friedberg, Chairman of the Company’s Board of Directors.
Perry W. Moss, Quest’s Chief Executive Officer, said, “I believe a culture of performance and accountability is critical to the success of an organization. We are fundamentally changing Quest’s culture, and we are already seeing positive results. Our team is embracing this data and KPI driven philosophy. Our Operational Excellence Initiatives are beginning to improve cash generation, improve efficiency, and reduce operational variability. In addition, we are strengthening vendor relationships and increasing employee satisfaction while maintaining high standards for client service; all of which will drive long-term shareholder value.
While we have been implementing operational improvements, we have also been actively pursuing growth initiatives. Macro uncertainties are causing prospective clients to delay decision making, which is slowing the pace of growth. Nevertheless, we are still winning new clients and adding new client opportunities to our pipeline. In addition, we are focused on expanding our share of wallet with existing clients. During the second quarter, our sales organization generated a significant win with a new client in the restaurant industry and a significant expansion of the geographic footprint with an existing retailer client. Both were competitive wins and reflective of our value proposition.”
Second Quarter 2025 Earnings Conference Call and Webcast
Quest will host a conference call on Monday, August 11, 2025, at 5:00 PM ET, to review the financial results for the second quarter ended June 30, 2025. To participate, dial 1-800-717-1738 or 1-646-307-1865. Investors can also access the call online through a listen-only webcast on the investor relations section of Quest’s website at http://investors.qrhc.com/. The webcast, which may include forward-looking information, will be archived on the Quest investor relations website for at least 90 days.
About Quest Resource Holding Corporation
Quest is a national provider of waste and recycling services that enables 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 www.qrhc.com.
Reconciliation of U.S. GAAP to Non-GAAP Financial Measures
In this press release, non-GAAP financial measures, “Adjusted EBITDA” and “Adjusted Net Income (Loss)” are presented. From time-to-time, Quest considers and uses these 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 these non-GAAP measures because it considers them an important supplemental measure of Quest’s performance. Quest’s definition of these adjusted financial measures may differ from similarly named measures used by others. Quest believes these measures facilitate 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. These non-GAAP measures have limitations as an analytical tool and should not be considered in isolation or as a substitute for the Company’s GAAP measures. (See attached tables “Reconciliation of Net Loss to Adjusted EBITDA” and “Adjusted Net Income (Loss) Per Share”).
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 our efforts to fundamentally improve our operations and produce more consistent financial results are on track, our belief that sequential growth in gross profit dollars, a decrease in SG&A costs and strong operating cash flow generation were all a direct result of the performance-focused actions we took earlier this year and our expectation that we are on track to continue to deliver improvements in the trajectory of the business. 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, 2024. 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:
Three Part Advisors, LLC
Joe Noyons
817.778.8424
Financial Tables Follow
| Quest Resource Holding Corporation and Subsidiaries STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share amounts) | |||||||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||
| Revenue | $ | 59,540 | $ | 73,145 | $ | 127,970 | $ | 145,796 | |||||||||||||||||||||
| Cost of revenue | 48,503 | 59,613 | 106,002 | 118,228 | |||||||||||||||||||||||||
| Gross profit | 11,037 | 13,532 | 21,968 | 27,568 | |||||||||||||||||||||||||
| Selling, general, and administrative | 9,295 | 9,385 | 20,707 | 19,184 | |||||||||||||||||||||||||
| Depreciation and amortization | 1,299 | 2,365 | 2,842 | 4,726 | |||||||||||||||||||||||||
| Loss on sale of assets | 61 | — | 4,491 | — | |||||||||||||||||||||||||
| Impairment loss | — | — | 1,707 | — | |||||||||||||||||||||||||
| Total operating expenses | 10,655 | 11,750 | 29,747 | 23,910 | |||||||||||||||||||||||||
| Operating income (loss) | 382 | 1,782 | (7,779 | ) | 3,658 | ||||||||||||||||||||||||
| Interest expense | (2,375 | ) | (2,612 | ) | (4,642 | ) | (5,084 | ) | |||||||||||||||||||||
| Loss before taxes | (1,993 | ) | (830 | ) | (12,421 | ) | (1,426 | ) | |||||||||||||||||||||
| Income tax expense (benefit) | (22 | ) | 684 | (44 | ) | 743 | |||||||||||||||||||||||
| Net loss | $ | (1,971 | ) | $ | (1,514 | ) | $ | (12,377 | ) | $ | (2,169 | ) | |||||||||||||||||
| Net loss per share applicable to common stockholders: | |||||||||||||||||||||||||||||
| Basic and diluted | $ | (0.09 | ) | $ | (0.07 | ) | $ | (0.59 | ) | $ | (0.11 | ) | |||||||||||||||||
| Weighted average number of common shares outstanding: | |||||||||||||||||||||||||||||
| Basic and diluted | 20,933 | 20,507 | 20,896 | 20,446 | |||||||||||||||||||||||||
| RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA (Unaudited) (In thousands) | |||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||
| Net loss | $ | (1,971 | ) | $ | (1,514 | ) | $ | (12,377 | ) | $ | (2,169 | ) | |||||||||
| Depreciation and amortization | 1,500 | 2,605 | 3,246 | 5,101 | |||||||||||||||||
| Interest expense | 2,375 | 2,612 | 4,642 | 5,084 | |||||||||||||||||
| Stock-based compensation expense | 533 | 363 | 1,195 | 720 | |||||||||||||||||
| Acquisition, integration, and related costs | — | 19 | — | 61 | |||||||||||||||||
| Loss on sale of assets | 61 | — | 4,491 | — | |||||||||||||||||
| Impairment loss | — | — | 1,707 | — | |||||||||||||||||
| Other adjustments | 208 | 370 | 1,379 | 719 | |||||||||||||||||
| Income tax expense (benefit) | (22 | ) | 684 | (44 | ) | 743 | |||||||||||||||
| Adjusted EBITDA | $ | 2,684 | $ | 5,139 | $ | 4,239 | $ | 10,259 | |||||||||||||
| ADJUSTED NET INCOME (LOSS) PER SHARE (Unaudited) (In thousands, except per share amounts) | ||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| June 30, | June 30, | |||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||
| Reported net loss (1) | $ | (1,971 | ) | $ | (1,514 | ) | $ | (12,377 | ) | $ | (2,169 | ) | ||||||||
| Amortization of intangibles (2) | 1,104 | 2,221 | 2,468 | 4,441 | ||||||||||||||||
| Acquisition, integration, and related costs (3) | — | 19 | — | 61 | ||||||||||||||||
| Loss on sale of assets | 61 | — | 4,491 | — | ||||||||||||||||
| Impairment loss | — | — | 1,707 | — | ||||||||||||||||
| Adjusted net income (loss) | $ | (806 | ) | $ | 726 | $ | (3,711 | ) | $ | 2,333 | ||||||||||
| Diluted earnings (loss) per share: | ||||||||||||||||||||
| Reported net loss | $ | (0.09 | ) | $ | (0.07 | ) | $ | (0.59 | ) | $ | (0.11 | ) | ||||||||
| Adjusted net income (loss) | $ | (0.04 | ) | $ | 0.03 | $ | (0.18 | ) | $ | 0.10 | ||||||||||
| Weighted average number of common shares outstanding: | ||||||||||||||||||||
| Basic | 20,933 | 20,507 | 20,896 | 20,446 | ||||||||||||||||
| Diluted (4) | 20,933 | 22,974 | 20,896 | 22,777 | ||||||||||||||||
(1) Applicable to common stockholders
(2) Reflects the elimination of non-cash amortization of acquisition-related intangible assets
(3) Reflects the add back of acquisition/integration related transaction costs
(4) Reflects adjustment for dilution when adjusted net income is positive
BALANCE SHEETS
(In thousands, except per share amounts)
| June 30, | December 31, | ||||||||
| 2025 | 2024 | ||||||||
| (Unaudited) | |||||||||
| ASSETS | |||||||||
| Current assets: | |||||||||
| Cash and cash equivalents | $ | 449 | $ | 396 | |||||
| Accounts receivable, less allowance for doubtful accounts of and | 53,660 | 62,252 | |||||||
| Prepaid expenses and other current assets | 2,618 | 2,601 | |||||||
| Assets held for sale | — | 9,890 | |||||||
| Total current assets | 56,727 | 75,139 | |||||||
| Goodwill | 81,065 | 81,065 | |||||||
| Intangible assets, net | 9,316 | 12,946 | |||||||
| Property and equipment, net, and other assets | 5,954 | 6,495 | |||||||
| Total assets | $ | 153,062 | $ | 175,645 | |||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||
| Current liabilities: | |||||||||
| Accounts payable and accrued liabilities | $ | 38,130 | $ | 39,899 | |||||
| Deferred revenue | 146 | 1,001 | |||||||
| Current portion of notes payable | 1,540 | 1,651 | |||||||
| Liabilities held for sale | — | 1,840 | |||||||
| Total current liabilities | 39,816 | 44,391 | |||||||
| Notes payable, net | 69,680 | 76,265 | |||||||
| Other long-term liabilities | 628 | 833 | |||||||
| Total liabilities | 110,124 | 121,489 | |||||||
| Commitments and contingencies | |||||||||
| Stockholders’ equity: | |||||||||
| Preferred stock, shares issued or outstanding as of June 30, 2025 and December 31, 2024 | — | — | |||||||
| Common stock, 20,712 and 20,606 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively | 21 | 21 | |||||||
| Additional paid-in capital | 180,405 | 179,246 | |||||||
| Accumulated deficit | (137,488 | ) | (125,111 | ) | |||||
| Total stockholders’ equity | 42,938 | 54,156 | |||||||
| Total liabilities and stockholders’ equity | $ | 153,062 | $ | 175,645 | |||||
FAQ
What were Quest Resource Holding Corporation's (QRHC) key financial results for Q2 2025?
How much debt did QRHC reduce in 2025 and what was their cash flow?
What were QRHC's Adjusted EBITDA results for Q2 2025?
What new business developments did QRHC announce for Q2 2025?
What operational initiatives is QRHC implementing to improve performance?
