Quest Resource (NASDAQ:QRHC) Issues Quarterly Earnings Results
by Doug Wharley · The Cerbat GemQuest Resource (NASDAQ:QRHC – Get Free Report) issued its quarterly earnings results on Thursday. The business services provider reported ($0.11) earnings per share for the quarter, missing the consensus estimate of ($0.03) by ($0.08), FiscalAI reports. The business had revenue of $61.74 million during the quarter, compared to analyst estimates of $62.21 million. Quest Resource had a negative return on equity of 12.07% and a negative net margin of 3.00%.
Here are the key takeaways from Quest Resource’s conference call:
- The company reported $61.7 million in revenue (down ~10% year‑over‑year) but up 5% sequentially; gross profit was $9.7 million (down ~12% YoY) with a 15.7% gross margin, signaling ongoing top‑line pressure despite quarter‑end improvement.
- Management highlighted diversification gains and a meaningful new QSR win (a 7‑figure account, ~50% of the franchisee portfolio) onboarded May 1 with minimal service changeouts, which should ramp quickly and help offset industrial seasonality.
- Operational initiatives are reducing costs and improving cash: SG&A fell ~26% YoY, operating cash flow was slightly positive (~$200k), working capital days improved to 11.5, and the company refinanced its ABL and made a $2 million early term‑debt payment to lower interest expense and increase financial flexibility.
- Material risk remains from a few soft industrial (ag) customers that reduced volumes (~$4M impact) and the company cautioned that elevated fuel prices, geopolitical events and mix effects could sustain margin pressure through 2026.
Quest Resource Stock Performance
NASDAQ:QRHC traded up $0.07 during midday trading on Friday, hitting $1.15. The company’s stock had a trading volume of 98,812 shares, compared to its average volume of 41,823. Quest Resource has a fifty-two week low of $0.81 and a fifty-two week high of $2.64. The firm’s 50 day moving average is $1.25 and its 200-day moving average is $1.65. The company has a debt-to-equity ratio of 1.58, a current ratio of 1.30 and a quick ratio of 1.30. The firm has a market cap of $24.10 million, a P/E ratio of -3.38 and a beta of 0.21.
Wall Street Analysts Forecast Growth
Several equities research analysts have weighed in on the company. Wall Street Zen raised Quest Resource to a “hold” rating in a report on Saturday, January 10th. Zacks Research downgraded Quest Resource from a “hold” rating to a “strong sell” rating in a report on Tuesday, March 31st. Finally, Weiss Ratings raised Quest Resource from a “sell (e+)” rating to a “sell (d-)” rating in a report on Thursday. One investment analyst has rated the stock with a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, Quest Resource currently has a consensus rating of “Sell” and a consensus target price of $2.25.
Check Out Our Latest Research Report on Quest Resource
Hedge Funds Weigh In On Quest Resource
Several hedge funds and other institutional investors have recently bought and sold shares of the business. Veradace Capital Management LLC acquired a new position in Quest Resource in the 4th quarter worth approximately $2,336,000. Rothschild Wealth LLC acquired a new position in Quest Resource in the 4th quarter worth approximately $274,000. Jane Street Group LLC increased its holdings in Quest Resource by 91.4% in the 4th quarter. Jane Street Group LLC now owns 27,233 shares of the business services provider’s stock worth $51,000 after buying an additional 13,004 shares during the period. Mink Brook Asset Management LLC acquired a new position in Quest Resource in the 2nd quarter worth approximately $405,000. Finally, Qube Research & Technologies Ltd acquired a new position in Quest Resource in the 2nd quarter worth approximately $50,000. Institutional investors and hedge funds own 48.16% of the company’s stock.
About Quest Resource
Quest Resource Holding Corporation, together with its subsidiaries, provides solutions for the reuse, recycling, and disposal of various waste streams and recyclables in the United States. The company provides disposal and recycling services for motor oil and automotive lubricants, oil filters, scrap tires, oily water, goods destruction, food waste, meat renderings, cooking oil and grease trap waste, plastics, cardboard, metal, glass, mixed paper, construction debris, as well as a large variety of regulated and non-regulated solid, liquid, and gas wastes.