Quest Resource Holding Corporation Reports Third Quarter 2026 Financial Results

Cash declined to $943,000 at September 30, while current and noncurrent notes payable were below their December 31 levels.

Rhea-AI Summary

Quest Resource Holding (Nasdaq: QRHC) reported a narrower third-quarter 2026 net loss as operating income increased from a year earlier. Revenue was $63.8 million, up 0.7% year over year but down 0.5% sequentially. Gross profit reached $11.4 million, down 0.7% annually and up 9.1% sequentially. Gross margin was 17.8%, versus 18.1% a year earlier and 16.3% in the second quarter.

The net loss was $495,000, or $0.02 per share, versus $1.349 million, or $0.06 per share, a year earlier. The second-quarter loss was $12.217 million, including an $11 million non-cash goodwill impairment. Adjusted EBITDA, a supplemental earnings measure excluding certain expenses, rose to $3.432 million from $2.938 million a year earlier and $2.792 million sequentially. Quest secured four customer renewals, expanded business with existing customers and reported sequential growth in non-industrial revenue.

15 points · 0 major

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0 major · 5 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointRevenue of $63.8 million rose 0.7% year over year, although it declined 0.5% sequentially.
• Moderate pointGross profit of $11.4 million increased 9.1% sequentially, although it fell 0.7% year over year.
• Moderate pointNet loss narrowed to $495,000 from $1.349 million annually and $12.217 million sequentially, including an $11 million impairment. 49% of market cap
• Moderate pointAdjusted EBITDA reached $3.432 million, versus $2.938 million a year earlier and $2.792 million sequentially.
• Moderate pointOperating income increased to $1.696 million from $1.075 million in the third quarter of 2025.
• Moderate pointNoncurrent notes payable, net, fell to $60.013 million from $63.999 million at December 31, 2025.

9 minor points

• Minor pointGross margin of 17.8% improved from 16.3% sequentially but remained below 18.1% a year earlier.
• Minor pointLoss per share narrowed to $0.02 from $0.06 a year earlier and $0.57 sequentially.
• Minor pointSelling, general and administrative expenses fell to $8.501 million from $9.240 million a year earlier.
• Minor pointOperating depreciation and amortization fell to $986,000 from $1.304 million a year earlier.
• Minor pointInterest expense declined to $2.153 million from $2.389 million a year earlier.
• Minor pointFour customer renewals were secured, alongside expanded business with existing customers.
• Minor pointNon-industrial revenue grew sequentially, contributing to a more diversified revenue base.
• Minor pointCurrent notes payable fell to $540,000 from $1.015 million at December 31, 2025.
• Minor point. Forward-looking: it has not happened yet and may not happen.Cash generation and debt reduction remain company priorities, alongside continued refinement of working-capital initiatives.

Negative

• Moderate pointStockholders’ equity declined to $26.607 million from $40.512 million at December 31, 2025.
• Moderate pointAccounts payable and accrued liabilities rose to $42.462 million from $38.384 million at December 31, 2025.
• Moderate pointOther long-term liabilities, net, increased to $3.537 million from $1.513 million at December 31, 2025.
• Minor pointCash fell to $943,000 at September 30, 2026, from $1.014 million at December 31, 2025.
• Minor pointAsset sales produced a $200,000 loss, versus a $152,000 gain in the third quarter of 2025.

News Explained

At September 30, 2026, Quest reported 21,261 thousand common shares issued and outstanding, versus 20,960 thousand at December 31, 2025; the higher count means a fixed holding represents a smaller fraction of the company’s common equity.

Key Figures

Revenue: $63.8 million Gross profit: $11.4 million Gross margin: 17.8% +3 more

Revenue

$63.8 million

Q3 2026; up 0.7% year over year and down 0.5% sequentially

Gross profit

$11.4 million

Q3 2026; down 0.7% year over year and up 9.1% sequentially

Gross margin

17.8%

Q3 2026; up 150 basis points sequentially, compared with 18.1% a year earlier

GAAP net loss

$(0.5) million

Q3 2026; compared with $(1.3) million in Q3 2025 and $(12.2) million in Q2 2026

Net loss per share

$(0.02)

Basic and diluted, Q3 2026; compared with $(0.06) in Q3 2025 and $(0.57) in Q2 2026

Adjusted EBITDA

$3.4 million

Q3 2026; compared with $2.9 million in Q3 2025 and $2.8 million in Q2 2026

Previous Earnings Reports

1 past event · Latest: Aug 06

Same Type 1 event

1. Aug 06

   Q2 earnings

   24h Move

   +18.1%

   Q2 reported a $12.2 million GAAP loss including an $11.0 million non-cash goodwill impairment.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

gaap, adjusted ebitda, goodwill impairment, non-gaap

4 terms

gaap financial

"GAAP net loss was $(0.5) million"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

View in glossary

adjusted ebitda financial

"Adjusted EBITDA was $3.4 million"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

goodwill impairment financial

"which included a non-cash goodwill impairment loss of $(11.0) million"

Goodwill impairment occurs when a company’s valued reputation or brand strength, known as goodwill, is found to be worth less than previously recorded on its financial statements. This usually happens when the company's performance declines or market conditions change, signaling that the expected benefits from acquisitions or brand value are no longer as strong. It matters to investors because it can indicate that a company's assets are less valuable than initially thought, potentially affecting its overall financial health.

non-gaap financial

"the non-GAAP financial measure “Adjusted EBITDA” is presented"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

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Gross Profit increased by 9.1%, sequentially driven by Gross Margin expansion of 150 basis points

Improved financial results demonstrate strong operating leverage and the benefits of revenue diversification efforts

Strengthened Leadership team by adding an experienced Senior Vice President of Technology

IRVING, Texas, Nov. 05, 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 third quarter ended September 30, 2026.

Third Quarter 2026 Highlights

• Revenue was $63.8 million, a 0.7% increase compared with the third quarter of 2025, and a 0.5% decrease from the second quarter of 2026.
• Gross profit was $11.4 million, a 0.7% decrease compared with the third quarter of 2025, and a 9.1% increase from the second quarter of 2026.
• Gross margin was 17.8% of revenue, compared with 18.1% of revenue for the third quarter of 2025, and 16.3% of revenue for the second quarter of 2026.
• GAAP net loss was $(0.5) million, compared with a net loss of $(1.3) million for the third quarter of 2025, and a net loss of $(12.2) million for the second quarter of 2026, which included a non-cash goodwill impairment loss of $(11.0) million.
• GAAP net loss per basic and diluted share attributable to common stockholders was $(0.02), compared with $(0.06) for the third quarter of 2025 and $(0.57) for the second quarter of 2026.
• Adjusted EBITDA was $3.4 million, compared with $2.9 million for the third quarter of 2025 and $2.8 million for the second quarter of 2026.

Recent Highlights

• Non-industrial revenue grew sequentially, contributing to a more balanced and diversified revenue base.
• Gross margin improved by 150 basis points sequentially to 17.8%, driven by margin gains with industrial customers and continued optimization of the business.
• Secured renewals with four customers and continued to expand share-of-wallet with existing customers.
• The sales pipeline remains healthy with several significant opportunities with national brands in late-stage discussions.
• To accelerate our optimization efforts, the leadership team was strengthened through the addition of a new Senior Vice President of Technology with strong industry experience.
  

“Our third quarter results reflect the progress we are making in building a more balanced and diversified business, as consistent performance across our broader portfolio and continued operating efficiencies drove Adjusted EBITDA growth both sequentially and compared to the prior year period,” said Perry W. Moss, Quest's Chief Executive Officer. “We continue to expand share of wallet with existing customers, and we are encouraged by the quality of opportunities in our sales pipeline, including several large national brands. Having made significant progress building a more efficient operating foundation, we are now investing in our team and capabilities to capture these opportunities. We believe the growing diversification of our customer portfolio across market verticals mitigates sector-specific risk and supports our long-term growth.”

Brett Johnston, Quest’s Chief Financial Officer, added, “Margin improvement with our industrial customers and the ongoing optimization of our service network drove a 150-basis point sequential increase in gross margin. Combined with our disciplined approach to cost management, which led to meaningful year-over-year SG&A savings, this increase in gross margin translated to strong Adjusted EBITDA growth sequentially and year-over-year. On the balance sheet, we continue to refine our working capital initiatives and will maintain a strong focus on cash flow generation and debt reduction as we move forward.”

Third Quarter 2026 Earnings Conference Call and Webcast

Quest will host a conference call on Thursday, November 5, 2026, at 5:00 PM ET, to review the financial results for the third quarter ended September 30, 2026. To participate, dial 1-877-270-2148 or 1-412-371-6060 (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, (v) loss (gain) on sale of assets, (vi) impairment loss, (vii) loss on extinguishment of debt, and (viii) 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 our sales pipeline remains healthy, our expectations regarding opportunities with national brands in late-stage discussions and our belief that our increasingly diversified portfolio positions us well for future growth. 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 and our subsequent Quarterly Reports on Form 10-Q. 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
Nick Nelson or Chris Hodges
QRHC@alpha-ir.com
312-445-2870

Quest Resource Holding Corporation and Subsidiaries STATEMENTS OF OPERATIONS (In thousands, except per share amounts)
		Three Months Ended September 30,
		2026				2025
		(Unaudited)
Revenue		$	63,779			$	63,341
Cost of revenue			52,396				51,874
Gross profit			11,383				11,467
Operating expenses:
Selling, general, and administrative			8,501				9,240
Depreciation and amortization			986				1,304
Loss (gain) on sale of assets, net			200				(152	)
Total operating expenses			9,687				10,392
Operating income (loss)			1,696				1,075
Interest expense			(2,153	)			(2,389	)
Loss before taxes			(457	)			(1,314	)
Income tax expense			38				35
Net loss		$	(495	)		$	(1,349	)
Net loss per share applicable to common stockholders
Basic and diluted		$	(0.02	)		$	(0.06	)
Weighted average number of common shares outstanding
Basic and diluted			21,474				21,029

RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA (In thousands)
		Three Months Ended
		September 30, 2026				June 30, 2026				September 30, 2025
		(Unaudited)
Net loss		$	(495	)		$	(12,217	)		$	(1,349	)
Depreciation and amortization			1,139				1,218				1,498
Interest expense			2,153				2,208				2,389
Stock-based compensation expense			397				357				470
Loss (gain) on sale of assets, net			200				88				(152	)
Impairment loss			—				11,000				—
Other adjustments			—				92				47
Income tax expense			38				46				35
Adjusted EBITDA		$	3,432			$	2,792			$	2,938

BALANCE SHEETS (In thousands, except per share amounts)
		September 30,				December 31,
		2026				2025
		(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	943			$	1,014
Accounts receivable, less allowance for doubtful accounts of $716 and $780 as of September 30, 2026 and December 31, 2025, respectively			49,947				49,010
Prepaid expenses and other current assets			1,668				1,174
Total current assets			52,558				51,198
Goodwill			70,065				81,065
Intangible assets, net			5,436				7,650
Property and equipment, net, and other assets			5,217				5,638
Total assets		$	133,276			$	145,551
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities		$	42,462			$	38,384
Other current liabilities			117				128
Current portion of notes payable			540				1,015
Total current liabilities			43,119				39,527
Notes payable, net			60,013				63,999
Other long-term liabilities, net			3,537				1,513
Total liabilities			106,669				105,039
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.001 par value, 10,000 shares authorized, no shares issued and outstanding as of September 30, 2026 and December 31, 2025			—				—
Common stock, $0.001 par value, 200,000 shares authorized, 21,261 and 20,960 shares issued and outstanding as of September 30, 2026 and December 31, 2025, respectively			21				21
Additional paid-in capital			182,109				180,984
Accumulated deficit			(155,523	)			(140,493	)
Total stockholders’ equity			26,607				40,512
Total liabilities and stockholders’ equity		$	133,276			$	145,551

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Quest Resource Holding’s third-quarter 2026 revenue and net loss?

Quest reported $63.8 million in revenue and a $495,000 net loss, or $0.02 per basic and diluted share. Revenue increased 0.7% from the third quarter of 2025 but declined 0.5% from the second quarter of 2026.

How did QRHC’s third-quarter 2026 gross margin compare with prior periods?

Quest’s gross margin was 17.8%, compared with 16.3% in the second quarter of 2026 and 18.1% in the third quarter of 2025. The sequential improvement was 150 basis points.

What sales opportunities did Quest Resource Holding identify after its third-quarter 2026 results?

Quest said several opportunities with national brands were in late-stage discussions. These were sales-pipeline opportunities rather than announced customer agreements.