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Quest Resource
(NASDAQ:QRHC)
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Rating:46Neutral
Price Target:
$1.00
▼(-18.70% Downside)
Action:Reiterated
Date:08/07/26
QRHC scores low-to-mid primarily due to weak profitability and elevated leverage in the financial statements, with only partial offset from currently positive free cash flow and improving working-capital trends. Technicals are neutral-to-weak (below key moving averages with subdued momentum), and valuation provides limited support given losses and no stated dividend. The earnings call adds some uplift from improving execution (sequential growth, cost control, debt reduction), but liquidity and margin pressure remain notable risks.
Positive Factors
Positive Cash Generation
Sustained positive operating and free cash flow provides durable internal funding to support operations, working-capital needs, and scheduled debt reductions. Even with accounting losses, recurring cash generation reduces dependence on new external financing and underpins recovery efforts over months.
Negative Factors
High Leverage Relative to Equity
Debt materially exceeds equity, leaving a thin capital cushion to absorb continued losses. High leverage restricts financial flexibility, elevates covenant and refinancing risk, and increases sensitivity to margin or volume shocks, limiting strategic optionality over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Positive Cash Generation
Sustained positive operating and free cash flow provides durable internal funding to support operations, working-capital needs, and scheduled debt reductions. Even with accounting losses, recurring cash generation reduces dependence on new external financing and underpins recovery efforts over months.
Read all positive factors
Quest Resource (QRHC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$26.76M
Dividend YieldN/A
Average Volume (3M)113.98K
Price to Earnings (P/E)―
Beta (1Y)1.17
Revenue Growth-14.35%
EPS Growth70.98%
CountryUS
Employees195
SectorIndustrials
Sector Strength72
IndustryWaste Management
Share Statistics
EPS (TTM)-0.82
Shares Outstanding21,073,513
10 Day Avg. Volume105,155
30 Day Avg. Volume113,979
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)0.96
Price to Sales (P/S)0.16
P/FCF Ratio4.20
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$2.50Price Target Upside103.25% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.13
Revenue Forecast (FY)$257.25M
Quest Resource Business Overview & Revenue Model
Company Description
Quest Resource Holding Corporation (QRHC) is a U.S.-based enterprise dedicated to delivering holistic solutions for the management, recycling, and repurposing of diverse waste streams and recyclable materials. The company's extensive service portf...
How the Company Makes Money
Quest Resource primarily generates revenue by providing outsourced waste and recycling management programs to enterprise customers (especially those with many locations). Under these programs, Quest Resource coordinates and administers waste and r...
Quest Resource Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 16, 2026
Earnings Call Sentiment Positive
The call conveyed cautious optimism: multiple operational wins, revenue growth (up 8% YoY, 4% sequential), improved sequential gross profit and marked SG&A reductions demonstrate meaningful progress from company initiatives. Improvements in cash generation, working capital metrics, and continued debt paydown further support a constructive trajectory. However, notable headwinds remain — YoY gross profit and margin compression driven by select industrial clients, an $11M goodwill impairment, a low reported cash balance ($1M), and continued macro/geopolitical uncertainty that is elongating sales cycles. On balance, positive developments (diversification, cost discipline, pipeline, improving cash flow and debt reduction) outweigh the lowlights, though management remains cautious.Positive Updates
Revenue Growth
Revenue of $64.1M in Q2, up 8% year-over-year and 4% sequentially, driven by non-industrial wins, wallet-share expansions, and stabilizing industrial volumes.
Negative Updates
Year-over-Year Gross Profit and Margin Pressure
Gross profit dollars declined ~6% year-over-year and gross margin fell to 16.3% from 18.5% a year ago (a ~2.2 percentage point decline), primarily due to margin pressure at select industrial clients.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth
Revenue of $64.1M in Q2, up 8% year-over-year and 4% sequentially, driven by non-industrial wins, wallet-share expansions, and stabilizing industrial volumes.
Read all positive updates
Company Guidance
Guidance-wise, Quest said it expects another quarter of sequential revenue growth in Q3 and anticipates gross margins to be flat to slightly up sequentially, while continuing to prioritize margin improvement, cash generation, and debt reduction; near-term working capital goals include reducing DSOs to the mid-60s (Q2 DSOs ~70, improved from mid-70s in Q1) and maintaining the improved working capital days level (5 days in Q2, down from 12 at Q1-end and 19 a year ago). For context and execution capacity, Q2 metrics referenced on the call included revenue of $64.1M (+8% YoY, +4% sequential), gross profit $10.4M (-~6% YoY, +8% sequential) with a 16.3% gross margin (vs. 18.5% year‑ago, 15.7% Q1), SG&A of $8.2M (‑11% YoY, ‑2% sequential), $4.5M operating cash flow in the quarter, $1M cash and ~$19.4M availability on the ABL, net notes payable of ~$59.4M (term debt reduced >$4M YTD and ~ $17M over six quarters, including a $2M voluntary early payment in the quarter), and a non‑cash $11M goodwill impairment that does not affect liquidity or covenant compliance.Quest Resource Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
34
Negative
Cash Flow
52
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 248.05M | 250.22M | 288.53M | 288.38M | 284.04M | 155.72M |
| Gross Profit | 38.50M | 37.27M | 49.99M | 50.06M | 48.86M | 28.71M |
| EBITDA | -4.73M | -106.00K | 11.44M | 14.40M | 14.45M | 9.12M |
| Net Income | -17.54M | -15.38M | -15.06M | -7.29M | -6.05M | 1.69M |
Balance Sheet | ||||||
| Total Assets | 134.28M | 145.55M | 175.65M | 177.12M | 181.49M | 175.67M |
| Cash, Cash Equivalents and Short-Term Investments | 1.02M | 1.01M | 396.00K | 324.01K | 9.56M | 8.43M |
| Total Debt | 59.91M | 65.01M | 79.18M | 67.57M | 73.95M | 65.73M |
| Total Liabilities | 107.49M | 105.04M | 121.49M | 110.84M | 110.35M | 102.04M |
| Stockholders Equity | 26.79M | 40.51M | 54.16M | 66.28M | 71.14M | 73.63M |
Cash Flow | ||||||
| Free Cash Flow | 11.21M | 9.31M | -12.05M | -3.26M | -4.04M | 1.93M |
| Operating Cash Flow | 11.36M | 9.56M | -6.08M | -1.36M | -2.34M | 2.57M |
| Investing Cash Flow | -314.00K | 4.58M | -5.97M | -1.90M | -4.33M | -16.93M |
| Financing Cash Flow | -10.47M | -13.52M | 12.13M | -5.98M | 7.81M | 15.27M |
Quest Resource Technical Analysis
Positive
1.23
Price Trends
1.31
Positive
1.21
Positive
1.52
Negative
Market Momentum
0.01
Negative
67.08
Neutral
55.88
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QRHC, the sentiment is Positive. The current price of 1.23 is below the 20-day moving average (MA) of 1.30, below the 50-day MA of 1.31, and below the 200-day MA of 1.52, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 67.08 is Neutral, neither overbought nor oversold. The STOCH value of 55.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for QRHC.
Quest Resource Risk Analysis
Quest Resource disclosed 35 risk factors in its most recent earnings report. Quest Resource reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Quest Resource Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $16.52B | 37.83 | 15.64% | ― | 5.07% | 15.63% | |
74 Outperform | $90.56B | 31.95 | 28.92% | 1.48% | 7.17% | 4.68% | |
73 Outperform | $64.78B | 30.16 | 18.12% | 1.15% | 3.19% | 5.11% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | $5.71B | 778.06 | 0.36% | ― | 14.92% | -48.77% | |
52 Neutral | $351.98M | -17.29 | -34.48% | ― | -0.91% | 23.41% | |
46 Neutral | $26.76M | -3.66 | -17.78% | ― | -14.35% | 70.98% |
* Industrials Sector Average
QRHC
Quest Resource
1.50
-0.54
-26.65%
CWST
Casella Waste
89.41
-9.67
-9.76%
CLH
Clean Harbors
308.17
70.92
29.89%
PESI
Perma-Fix
18.08
6.90
61.72%
RSG
Republic Services
214.56
-17.97
-7.73%
WM
Waste Management
227.68
-3.70
-1.60%
Quest Resource Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Quest Resource Shareholders Approve Proposals at 2026 Meeting
Positive
Jul 1, 2026
Quest Resource Holding Corporation held its 2026 Annual Meeting of Stockholders on June 30, 2026, with 21,073,513 shares eligible to vote as of the May 21, 2026 record date. Shareholders elected Class II directors Stephen A. Nolan and Audrey P. Du...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.