Quest Resource (QRHC) AI Stock Analysis

• Market Cap: $18.44M
• Dividend Yield: N/A
• Average Volume (3M): 113.98K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.29
• Revenue Growth: -9.25%
• EPS Growth: -189.37%
• Country: US
• Employees: 224
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): -0.07
• Shares Outstanding: 20,959,751
• 10 Day Avg. Volume: 105,155
• 30 Day Avg. Volume: 113,979
• PEG Ratio: 0.00
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 0.16
• P/FCF Ratio: 4.20
• Enterprise Value/Market Cap: 4.47
• Enterprise Value/Revenue: 0.33
• Enterprise Value/Gross Profit: 1.99
• Enterprise Value/Ebitda: 14.12
• 1Y Price Target: $2.50
• Price Target Upside: 184.09% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.14
• Revenue Forecast (FY): $260.43M

• Rating: 44 Neutral
• Price Target: $0.84 ▼(-4.89% Downside)
• Action: Reiterated Date: 03/18/26
• Date: Action: Reiterated 03/18/26

The score is held down primarily by weak financial performance (ongoing losses, deteriorating operating profitability, and rising leverage) and very bearish technicals (price far below key moving averages with negative MACD). Improving cash flow and operational actions discussed on the earnings call (SG&A cuts, working-capital improvements, and debt reduction) provide some support, but valuation is not compelling given negative earnings and no dividend yield.

Positive Factors

Improving cash generation

Sustained positive operating and free cash flow provides durable internal funding to repay debt and support working capital. Over 2–6 months, consistent cash generation reduces refinancing dependence, funds modest reinvestment, and underpins recovery if maintained versus prior multi-year volatility.

Material SG&A reductions

Meaningful, sustained SG&A cuts lower the company's structural breakeven and improve operating leverage. Permanent headcount and lease savings reduce fixed costs, making profitability easier to attain as revenue recovers and supporting margin durability over the coming quarters.

Refinancing and liquidity extension

A new ABL and covenant amendments materially reshape funding lines and extend maturities, providing near-term liquidity and runway. This structural financing change lowers immediate refinancing risk and enables continued deleveraging and operational fixes over the next several quarters.

Negative Factors

Top-line weakness

Sustained revenue declines weaken scale economics and limit ability to convert fixed-cost reductions into margin expansion. If industrial volumes and elongated sales cycles persist, revenue recovery may be slow, constraining durable margin and cash-flow improvement over 2–6 months.

Persistent losses and thin margins

Ongoing negative operating performance and razor-thin EBITDA margin indicate limited buffer against cost or volume shocks. Even with SG&A cuts, low margins and persistent losses constrain equity rebuild and reduce resilience, requiring sustained revenue mix or pricing improvements for durable profitability.

Elevated leverage and shrinking equity

Higher leverage and declining equity increase financial fragility and limit strategic flexibility. Covenants and interest obligations amplify downside risk if cash flow slips, making deleveraging a necessary multi-month priority to restore balance-sheet capacity for growth or M&A.

Quest Resource Business Overview & Revenue Model

Company Description

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. It offers 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. The company provides santifreeze and windshield washer fluid, dumpster and compacting equipment, and other minor ancillary services. In addition, it offers landfill diversion services. The company's services focus on the waste streams and recyclables from big box, grocers, and other retailers; automotive maintenance, quick lube, dealerships, and collision repair; transportation, logistics, and internal fleet operators; manufacturing plants; multi-family and commercial properties; restaurant chains and food operations; and construction and demolition projects. It markets its services to automotive, manufacturing, hospitality and retail, construction and demolition, and commercial and multi-family property management industries through direct sales force and strategic partnerships. The company was formerly known as Infinity Resources Holdings Corp. and changed its name to Quest Resource Holding Corporation in October 2013. Quest Resource Holding Corporation was incorporated in 2002 and is based in The Colony, Texas.

How the Company Makes Money

QRHC primarily makes money by acting as a managed-services provider for waste, recycling, and sustainability programs. It typically contracts with business clients (often multi-site retailers, restaurants, and other distributed-location operators) to design, implement, and manage their waste/recycling and related environmental programs; QRHC then coordinates pickup, processing, and other services through a network of third-party haulers, recyclers, and specialty vendors. Revenue is generally generated from service fees charged to clients for program management and administration, and from pass-through billings where QRHC invoices clients for third-party vendor services and retains a margin (spread) for managing and optimizing those services. Additional revenue can come from specialized services (e.g., organics/food waste, sustainability reporting, compliance support, and other value-added program elements) when included in customer contracts. Specific material revenue-share arrangements (e.g., sharing in the value of recovered recyclables) and named strategic partnerships are not available in the provided context; null.

Quest Resource Financial Statement Overview

Summary

Fundamentals are mixed: revenue is down (~4.2% TTM) and profitability remains weak with persistent net losses and negative operating profit, while leverage has increased (debt-to-equity ~1.63) and equity has declined. The main offset is a notable TTM cash flow rebound (operating cash flow ~$9.6M; free cash flow ~$8.7M), though it remains small relative to debt and has been volatile historically.

Income Statement

QRHC’s top line has softened recently, with revenue down ~4.2% in TTM (Trailing-Twelve-Months) after being roughly flat in 2024. Profitability remains the key issue: net losses have persisted from 2022 through TTM, and TTM shows negative operating profit with very thin EBITDA margin (~0.6%) versus ~4.0% in 2024 and ~5.0% in 2022–2023. Gross margin has been relatively stable (~17% in recent years), but the company has not converted that into consistent operating or net profitability.

Balance Sheet

Leverage is elevated and trending worse, with debt-to-equity rising to ~1.63 in TTM (Trailing-Twelve-Months) (from ~1.46 in 2024 and ~0.89 in 2021). Equity has declined (TTM equity ~$40.5M vs ~$54.2M in 2024), and returns to shareholders are meaningfully negative (TTM return on equity ~-33.5%), reflecting continued losses. The balance sheet is not under immediate stress based on the data provided, but the combination of higher leverage and negative returns increases financial risk if profitability does not improve.

Cash Flow

Cash flow is a relative bright spot in the most recent period: TTM (Trailing-Twelve-Months) operating cash flow is positive (~$9.6M) and free cash flow is positive (~$8.7M), a sharp rebound from negative operating and free cash flow in 2022–2024. That said, cash generation has been volatile, and the company’s cash flow remains small relative to its debt load (TTM operating cash flow is about ~9% of total debt), which limits flexibility. Overall, improving free cash flow momentum is encouraging, but durability needs to be proven given the multi-year inconsistency.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	250.22M	288.53M	288.38M	284.04M	155.72M
Gross Profit	37.27M	49.99M	50.06M	48.86M	28.71M
EBITDA	4.91M	11.44M	14.40M	14.45M	9.12M
Net Income	-15.38M	-15.06M	-7.29M	-6.05M	1.69M
Balance Sheet
Total Assets	145.55M	175.65M	177.12M	181.49M	175.67M
Cash, Cash Equivalents and Short-Term Investments	1.01M	396.00K	324.01K	9.56M	8.43M
Total Debt	65.01M	79.18M	67.57M	73.95M	65.73M
Total Liabilities	105.04M	121.49M	110.84M	110.35M	102.04M
Stockholders Equity	40.51M	54.16M	66.28M	71.14M	73.63M
Cash Flow
Free Cash Flow	9.31M	-12.05M	-3.26M	-4.04M	1.93M
Operating Cash Flow	9.56M	-6.08M	-1.36M	-2.34M	2.57M
Investing Cash Flow	4.58M	-5.97M	-1.90M	-4.33M	-16.93M
Financing Cash Flow	-13.52M	12.13M	-5.98M	7.81M	15.27M

Quest Resource Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.88
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QRHC, the sentiment is Negative. The current price of 0.88 is below the 20-day moving average (MA) of 1.55, below the 50-day MA of 1.85, and below the 200-day MA of 1.83, indicating a bearish trend. The MACD of -0.24 indicates Positive momentum. The RSI at 18.93 is Positive, neither overbought nor oversold. The STOCH value of 3.03 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for QRHC.

Quest Resource Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
PESI	60 Neutral	$226.47M	-25.42	-19.87%	―	-9.64%	40.01%
AWX	47 Neutral	$10.18M	1.34	0.47%	―	-4.84%	-81.73%
AQMS	47 Neutral	$12.67M	>-0.01	-274.21%	―	―	-106.93%
QRHC	44 Neutral	$18.44M	-2.54	-44.35%	―	-9.25%	-189.37%

Quest Resource Corporate Events

Quest Resource Refinances Credit Facilities and Extends Warrants

On March 12, 2026, Quest Resource Holding Corporation and certain domestic subsidiaries amended their existing Monroe Capital credit agreement, modifying financial covenants, and extended the expiration of Monroe-related warrants from March 19, 2028 to June 28, 2030, affecting 850,000 shares. On the same date, the company entered a new $40 million asset-based revolving credit facility with Texas Capital Bank, featuring a $10 million accordion, comprehensive collateral and covenant package, and a December 30, 2029 maturity, while terminating and fully repaying its prior loan and security agreement with PNC Bank, thereby reshaping its capital structure and liquidity profile.

The TCB facility, backed by first-priority liens on substantially all tangible and intangible personal property of certain subsidiaries and stock pledges, imposes limits on additional indebtedness, asset sales, and other transactions, with customary default provisions that could accelerate repayment. These concurrent financing moves signal a refinancing of Quest Resource’s working capital lines, a tightening and recalibration of covenant frameworks with Monroe, and an extension of potential equity upside for Monroe affiliates, with implications for leverage flexibility and future dilution for existing shareholders.

The most recent analyst rating on (QRHC) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Quest Resource stock, see the QRHC Stock Forecast page.