Quest Resource (NASDAQ: QRHC) Q1 2026 revenue falls but net loss shrinks
Rhea-AI Filing Summary
Quest Resource Holding Corporation reported first quarter 2026 results showing mixed trends. Revenue was $61.7 million, down 9.8% from the first quarter of 2025 but up 4.8% from the fourth quarter of 2025, reflecting stronger sequential volumes, especially from Industrial customers and growth in non-Industrial accounts.
Gross profit was $9.7 million, 11.6% lower year over year, while gross margin held relatively steady at 15.7% of revenue compared with 16.0% a year ago and 15.5% in the prior quarter. GAAP net loss improved significantly to $2.3 million versus a $10.4 million loss a year earlier, though it was wider than the $1.7 million loss in the fourth quarter of 2025.
Adjusted EBITDA was $1.8 million, up from $1.6 million a year ago but below $2.1 million in the preceding quarter. Management highlighted successful onboarding of new customers and wallet share expansions, a new quick-service restaurant franchisee added in April, and the use of a refinanced ABL credit facility to pay down $2.0 million of higher-rate term debt to reduce interest expense.
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Insights
Quest shows modest operational progress despite lower year-over-year revenue.
Quest generated first quarter 2026 revenue of $61.7M, down 9.8% year over year but up 4.8% sequentially, helped by higher Industrial volumes and growth in its non-Industrial portfolio. Gross margin of 15.7% remained close to prior-year levels.
GAAP net loss narrowed to $2.3M from $10.4M a year earlier, reflecting lower SG&A and the absence of prior-year asset sale and impairment charges. Adjusted EBITDA improved to $1.8M from $1.6M, though it declined from the fourth quarter.
Management emphasized cost controls, citing roughly 26% year-over-year SG&A reduction and continued Operational Excellence initiatives. They also used a refinanced ABL credit facility to replace $2.0M of higher-rate term debt, which they expect to lower interest expense and support future voluntary debt paydowns as conditions allow.
8-K Event Classification
Key Figures
Key Terms
Adjusted EBITDA financial
ABL credit facility financial
Selling, general, and administrative financial
loss on extinguishment of debt financial
forward-looking statements regulatory
Earnings Snapshot
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of report (Date of earliest event reported): |
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the follow provisions:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
We are furnishing this Current Report on Form 8-K in connection with the disclosure of information, in the form of the textual information from a press release released on May 7, 2026.
The information in this Current Report on Form 8-K (including the exhibit) is furnished pursuant to Item 2.02 and shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section.
We do not have, and expressly disclaim, any obligation to release publicly any updates or any changes in our expectations or any change in events, conditions, or circumstances on which any forward-looking statement is based.
The text included with this Current Report on Form 8-K is available on our website located at https://investors.qrhc.com/, although we reserve the right to discontinue that availability at any time.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. |
Description |
99.1 |
Press Release from Quest Resource Holding Corporation, dated May 7, 2026, entitled “Quest Resource Holding Corporation Reports First Quarter 2026 Financial Results”. |
104 |
Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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QUEST RESOURCE HOLDING CORPORATION |
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Dated: May 7, 2026 |
By: |
/s/ Brett W. Johnston |
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Name: |
Brett W. Johnston |
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Title: |
Senior Vice President and Chief Financial Officer |
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Exhibit 99.1
Quest Resource Holding Corporation Reports First Quarter 2026 Financial Results
Higher sequential volumes from Industrial customers and continued growth from non-Industrial portfolio drove 5% revenue growth and 6% gross profit growth compared to prior quarter
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, TX – May 7, 2026 – 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
Recent Highlights
“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 26% compared to the same quarter in the prior year and lower than the guidance provided last quarter. We simultaneously continue to seek ways to elevate our billing and collection practices, optimizing working capital and improving our cash conversion cycle in the process. Lastly, the recent refinancing of our ABL credit facility allowed us to immediately swap $2.0 million of term debt for ABL debt, reducing our interest expense, which we expect will free up additional cash to allocate toward additional debt paydown. As macroeconomic conditions improve and lend incremental visibility, we anticipate executing similar voluntary paydowns going forward as appropriate. We expect these measures, along with our focus on continuous improvement, to improve our cash cycle, strengthen our balance sheet, and provide incremental financial flexibility as the operating landscape improves.”
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)
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Three Months Ended |
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2026 |
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2025 |
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Revenue |
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$ |
61,735 |
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$ |
68,430 |
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Cost of revenue |
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52,070 |
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57,499 |
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Gross profit |
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9,665 |
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10,931 |
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Operating expenses: |
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Selling, general, and administrative |
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8,389 |
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11,412 |
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Depreciation and amortization |
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1,045 |
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1,543 |
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(Gain) loss on sale of assets, net |
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(11 |
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4,430 |
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Impairment loss |
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— |
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1,707 |
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Total operating expenses |
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9,423 |
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19,092 |
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Operating income (loss) |
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242 |
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(8,161 |
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Interest expense |
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(2,050 |
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(2,267 |
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Loss on extinguishment of debt |
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(488 |
) |
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— |
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Loss before taxes |
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(2,296 |
) |
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(10,428 |
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Income tax expense (benefit) |
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22 |
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(22 |
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Net loss |
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$ |
(2,318 |
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$ |
(10,406 |
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Net loss per share applicable to common shareholders |
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Basic and diluted |
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$ |
(0.11 |
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$ |
(0.50 |
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Weighted average number of common shares outstanding |
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Basic and diluted |
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21,197 |
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20,859 |
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RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA
(Unaudited)
(In thousands)
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Three Months Ended |
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2026 |
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2025 |
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Net loss |
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$ |
(2,318 |
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$ |
(10,406 |
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Depreciation and amortization |
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1,208 |
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1,746 |
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Interest expense |
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2,050 |
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2,267 |
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Stock-based compensation expense |
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388 |
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662 |
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(Gain) loss on sale of assets, net |
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(11 |
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4,430 |
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Impairment loss |
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— |
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1,707 |
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Loss on extinguishment of debt |
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488 |
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— |
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Other adjustments |
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(35 |
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1,171 |
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Income tax expense (benefit) |
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22 |
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(22 |
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Adjusted EBITDA |
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$ |
1,792 |
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$ |
1,555 |
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BALANCE SHEETS
(In thousands, except per share amounts)
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March 31, |
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December 31, |
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2026 |
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2025 |
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(Unaudited) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
1,139 |
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$ |
1,014 |
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Accounts receivable, less allowance for doubtful accounts of $712 and $780 as of March 31, 2026 and December 31, 2025, respectively |
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52,055 |
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49,010 |
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Prepaid expenses and other current assets |
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1,260 |
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1,174 |
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Total current assets |
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54,454 |
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51,198 |
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Goodwill |
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81,065 |
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81,065 |
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Intangible assets, net |
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7,002 |
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7,650 |
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Property and equipment, net, and other assets |
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5,460 |
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5,638 |
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Total assets |
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$ |
147,981 |
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$ |
145,551 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable and accrued liabilities |
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$ |
41,906 |
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$ |
38,384 |
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Other current liabilities |
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65 |
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128 |
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Current portion of notes payable |
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540 |
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1,015 |
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Total current liabilities |
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42,511 |
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39,527 |
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Notes payable, net |
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63,414 |
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63,999 |
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Other long-term liabilities |
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3,394 |
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1,513 |
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Total liabilities |
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109,319 |
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105,039 |
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Commitments and contingencies |
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Stockholders’ equity: |
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Preferred stock, $0.001 par value, 10,000 shares authorized, no shares |
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— |
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— |
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Common stock, $0.001 par value, 200,000 shares authorized, |
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21 |
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21 |
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Additional paid-in capital |
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181,452 |
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180,984 |
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Accumulated deficit |
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(142,811 |
) |
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(140,493 |
) |
Total stockholders’ equity |
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38,662 |
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40,512 |
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Total liabilities and stockholders’ equity |
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$ |
147,981 |
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$ |
145,551 |
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