Quest Resource (QRHC)
NASDAQ:QRHC
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Quest Resource
(NASDAQ:QRHC)
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Rating:44Neutral
Price Target:
$1.00
▼(-20.63% Downside)
Action:ReiteratedDate:03/24/26
The score is driven primarily by weak financial performance (ongoing losses and rising leverage despite improved TTM free cash flow) and bearish technicals (downtrend with negative MACD). Earnings call signals modest operational progress (cost cuts, working-capital improvement, debt reduction) but also emphasized meaningful near-term revenue and margin pressure; valuation is constrained by negative earnings and no dividend data.
Positive Factors
Improving cash generation
The company returned to positive operating and free cash flow on a TTM basis, indicating the business can generate internal liquidity. Over 2–6 months this supports funding working capital, debt paydown and operational investments, but durability depends on sustaining revenue and margin improvement.
Negative Factors
Persistent unprofitability and thin margins
The company has been unable to convert a relatively stable gross margin into consistent operating profitability, leaving earnings fragile. With EBITDA near breakeven, any revenue or cost setbacks could wipe out operating cash generation and stall deleveraging efforts.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving cash generation
The company returned to positive operating and free cash flow on a TTM basis, indicating the business can generate internal liquidity. Over 2–6 months this supports funding working capital, debt paydown and operational investments, but durability depends on sustaining revenue and margin improvement.
Read all positive factors
Quest Resource (QRHC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$26.41M
Dividend YieldN/A
Average Volume (3M)113.98K
Price to Earnings (P/E)―
Beta (1Y)1.31
Revenue Growth-9.25%
EPS Growth-189.37%
CountryUS
Employees224
SectorIndustrials
Sector Strength72
IndustryWaste Management
Share Statistics
EPS (TTM)-0.07
Shares Outstanding20,959,751
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 Cap3.38
Enterprise Value/Revenue0.36
Enterprise Value/Gross Profit2.39
Enterprise Value/Ebitda15.27
Forecast
1Y Price Target
$2.50Price Target Upside98.41% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.17
Revenue Forecast (FY)$262.43M
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 an...
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)...
Quest Resource Earnings Call Summary
Earnings Call Date:Mar 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 18, 2026
Earnings Call Sentiment Neutral
The call balanced clear near-term financial headwinds—most notably a 16% YoY revenue decline and substantial gross profit contraction—with meaningful operational progress: significant SG&A reductions (24% YoY), improved working capital (working capital days down from 23 to 11), debt reduction and refinancing actions, $29M of new revenue additions year-over-year, and ongoing vendor and technology improvements. Management framed the challenges as primarily macro-driven (soft industrial volumes and elongated sales cycles) while highlighting execution on cost, cash, and wallet-expansion initiatives that should support recovery as the macro backdrop improves.Positive Updates
Operational Cost Reductions and SG&A Improvement
SG&A for Q4 was $7.7M, down 24% year-over-year and 17% sequentially, driven by headcount reductions, lower bad debt, divestiture impacts, efficiency initiatives, and workforce reductions; company expects SG&A below $9M in Q1 and anticipates approximately $400k of annualized savings from HQ lease rationalization.
Negative Updates
Revenue Decline
Q4 revenue was $58.9M, down 16% year-over-year and down 7% sequentially; the decline was driven primarily by softer industrial volumes and the divested mall-related business which together accounted for a $10.7M reduction in quarterly revenue versus the prior year.
Read all updates
Q4-2025 Updates
Positive
Negative
Operational Cost Reductions and SG&A Improvement
SG&A for Q4 was $7.7M, down 24% year-over-year and 17% sequentially, driven by headcount reductions, lower bad debt, divestiture impacts, efficiency initiatives, and workforce reductions; company expects SG&A below $9M in Q1 and anticipates approximately $400k of annualized savings from HQ lease rationalization.
Read all positive updates
Company Guidance
Management guided that Q4 revenue was $58.9M (down 16% YoY, down 7% sequentially) with gross profit of $9.1M (gross margin 15.5%, down 15% YoY and 21% sequentially) and SG&A of $7.7M (down 24% YoY, 17% sequentially); they reported $1M cash on hand, ~$37.7M available borrowing capacity on a $45M ABL, ~ $1M of cash from operations and $1.7M of free cash flow, DSOs in the mid‑70s (improved from the low‑80s a year ago) and working capital days down to 11 from 23, paid down ~ $2M of debt in Q4 (net notes payable $64M vs $76.3M at the start of the year) and noted full‑year debt reduction in the mid‑teens million range, added roughly $29M of new revenue in 2025 (and, excluding industrial headwinds and a mall divestiture, the remaining two‑thirds of the business grew about $7.4M or ~5%); looking ahead they expect Q1 SG&A to be below $9M (with a seasonal bonus accrual), a modest sequential improvement in gross profit dollars as new client and wallet‑share launches ramp, continued focus on improving cash generation and DSO, continued aggressive debt reduction, anticipated ~$400k of annualized lease savings in 2026, but still some margin pressure in 2026 to be offset by operational and commercial initiatives.Quest Resource Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
38
Negative
Cash Flow
55
Neutral
| 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
Negative
1.26
Price Trends
1.79
Negative
1.81
Negative
1.82
Negative
Market Momentum
-0.23
Positive
41.67
Neutral
29.86
Neutral
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 1.26 is below the 20-day moving average (MA) of 1.44, below the 50-day MA of 1.79, and below the 200-day MA of 1.82, indicating a bearish trend. The MACD of -0.23 indicates Positive momentum. The RSI at 41.67 is Neutral, neither overbought nor oversold. The STOCH value of 29.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $199.99M | -16.86 | -19.87% | ― | -9.64% | 40.01% | |
53 Neutral | $10.10M | 32.68 | 0.47% | ― | -4.84% | -81.73% | |
47 Neutral | $12.34M | >-0.01 | -274.21% | ― | ― | -106.93% | |
44 Neutral | $26.41M | -2.54 | -44.35% | ― | -9.25% | -189.37% |
* Industrials Sector Average
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Quest Resource Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Quest Resource Refinances Credit Facilities and Extends Warrants
Positive
Mar 12, 2026
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, 20...
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.