Nov 5, 2026, 4:05 PM ETIndustrials

Quest Resource Holding Corporation — Third Quarter 2026 Earnings Summary

QRHCQUEST RESOURCE HOLDING CORP

Financial Performance

Revenue was $63.8 million, representing a 0.7% increase year-over-year compared to Q3 2025 and a 0.5% decrease sequentially from Q2 2026.
Gross profit was $11.4 million, a 0.7% decrease year-over-year but a 9.1% increase sequentially.
Gross margin was 17.8%, an expansion of 150 basis points sequentially from 16.3% in Q2 2026, though a contraction of 30 basis points from 18.1% in Q3 2025.
GAAP net loss was $(0.5) million, an improvement from $(1.3) million in Q3 2025 and $(12.2) million in Q2 2026 (which included an $11.0 million non-cash goodwill impairment).
GAAP net loss per share was $(0.02), compared to $(0.06) in Q3 2025 and $(0.57) in Q2 2026.
Adjusted EBITDA was $3.4 million, up from $2.9 million in Q3 2025 and $2.8 million in Q2 2026.
Selling, general, and administrative expenses were $8.5 million, down from $9.2 million in Q3 2025.
Depreciation and amortization was $1.0 million, down from $1.3 million in Q3 2025.
Cash and cash equivalents were $0.9 million as of September 30, 2026, down from $1.0 million as of December 31, 2025.
Total liabilities were $106.7 million as of September 30, 2026, compared to $105.0 million as of December 31, 2025.
Notes payable, net, decreased to $60.0 million from $64.0 million at the end of 2025.

Management highlighted a healthy sales pipeline with several significant opportunities with national brands in late-stage discussions.
The company expects to continue investing in its team and capabilities to capture opportunities following progress in building an efficient operating foundation.
Management indicated a continued focus on cash flow generation and debt reduction.

Non-industrial revenue grew sequentially, contributing to a more balanced and diversified revenue base.
The company secured renewals with four customers and continued to expand share-of-wallet with existing customers.
Margin gains were specifically driven by industrial customers.

The company operates as a national leader in environmental waste and recycling services.
Management stated that the growing diversification of the customer portfolio across market verticals mitigates sector-specific risk.
The press release notes competition in the environmental services industry as a factor in the safe harbor statement.

Potential risks include competition in the environmental services industry, the impact of the current economic environment, interruptions to supply chains, commodity price fluctuations, and extended shutdowns of businesses.
The company faces risks related to the timing and existence of expense items that may not be apparent on a GAAP basis.

CEO Perry W. Moss stated that results reflect progress in building a more balanced and diversified business, driven by consistent performance and operating efficiencies.
CFO Brett Johnston noted that disciplined cost management led to meaningful year-over-year SG&A savings and that the balance sheet is being refined through working capital initiatives.
Management expressed encouragement regarding the quality of opportunities in the sales pipeline.

The leadership team was strengthened by the addition of a new Senior Vice President of Technology with strong industry experience to accelerate optimization efforts.
The Q2 2026 net loss included a non-cash goodwill impairment loss of $11.0 million.
The company hosts a conference call on November 5, 2026, to review results, with a webcast available via the investor relations website.
Goodwill decreased to $70.1 million as of September 30, 2026, from $81.1 million as of December 31, 2025.
Intangible assets, net, decreased to $5.4 million from $7.7 million at the end of 2025.