Quest Resource (QRHC)
NASDAQ:QRHC
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Quest Resource
(NASDAQ:QRHC)
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Rating:43Neutral
Price Target:
$1.00
▼(-15.25% Downside)
Action:ReiteratedDate:05/08/26
QRHC scores low primarily due to persistent losses, weak operating profitability, and rising leverage, alongside bearish price/indicator trends. These are partially offset by improved free cash flow trends and management’s actions on cost control and debt refinancing, but liquidity remains tight and margin pressure is expected to persist.
Positive Factors
Improving Cash Generation
TTM operating cash flow (~$9.6M) and free cash flow (~$8.7M) represent a meaningful improvement versus prior years. If sustained over the next 2–6 months, this cash generation can fund working capital, modest debt paydowns, and provide a structural cushion to support execution of onboarding and margin initiatives.
Negative Factors
Weak Profitability
Persistent net losses and a very thin TTM EBITDA margin (~0.6%) indicate the business is not reliably generating operating profit. Over a multi‑month horizon this undermines equity rebuilding, limits ability to self-fund growth or debt reduction, and leaves the company exposed to margin pressure from mix or fuel cost shocks.
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Positive Factors
Negative Factors
Improving Cash Generation
TTM operating cash flow (~$9.6M) and free cash flow (~$8.7M) represent a meaningful improvement versus prior years. If sustained over the next 2–6 months, this cash generation can fund working capital, modest debt paydowns, and provide a structural cushion to support execution of onboarding and margin initiatives.
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Quest Resource (QRHC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$23.06M
Dividend YieldN/A
Average Volume (3M)113.98K
Price to Earnings (P/E)―
Beta (1Y)1.17
Revenue Growth-13.28%
EPS Growth-1.31%
CountryUS
Employees224
SectorIndustrials
Sector Strength72
IndustryWaste Management
Share Statistics
EPS (TTM)-0.73
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 Cap3.71
Enterprise Value/Revenue0.34
Enterprise Value/Gross Profit2.29
Enterprise Value/Ebitda14.64
Forecast
1Y Price Target
$2.50Price Target Upside111.86% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.24
Revenue Forecast (FY)$254.27M
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:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 17, 2026
Earnings Call Sentiment Neutral
The call presents a balanced picture: material near-term financial headwinds (10% revenue decline YoY, ~12% gross profit decline YoY, concentrated industrial volume losses, limited cash and significant net debt) are offset by clear operational progress — SG&A reductions (26% YoY), working capital improvements, an active sales pipeline, a meaningful QSR win, and proactive debt management. Management expresses cautious optimism and expects sequential improvement into Q2 while acknowledging persistent margin pressure and macro risks.Positive Updates
Sequential Revenue Recovery
Revenue of $61.7M: down 10% year-over-year but up 5% sequentially versus Q4, with management noting steady month-to-month improvement and an encouraging exit-rate trend for the quarter.
Negative Updates
Year-Over-Year Revenue Decline
Total revenue of $61.7M represented a 10% decline versus the prior year; management attributed the YoY decrease primarily to headwinds from select industrial clients and the absence of $3M of prior-year mall-related revenue that was divested in 2025.
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Q1-2026 Updates
Positive
Negative
Sequential Revenue Recovery
Revenue of $61.7M: down 10% year-over-year but up 5% sequentially versus Q4, with management noting steady month-to-month improvement and an encouraging exit-rate trend for the quarter.
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Company Guidance
Management guided to sequential improvement into Q2, expecting gross profit dollars to grow quarter‑over‑quarter as recent new wins and wallet‑share expansions finish onboarding, while warning of continued margin pressure in 2026 that they expect to offset through operational excellence, service optimization and share‑of‑wallet growth. They reported Q1 revenue of $61.7M (‑10% YoY, +5% sequential), gross profit of $9.7M (≈‑12% YoY, +6% sequential), SG&A of $8.4M (down $3.0M YoY, ‑26% YoY; +9% sequential driven by bonus), operating cash flow ≈$0.2M, cash $1.1M, net notes payable ≈$63.4M, DSOs in the mid‑70s (improved from the 80s a year ago) with AR up $3M, working capital days 11.5 (about an 11‑day improvement YoY), and a $2M early payment on term debt after refinancing the ABL and securing covenant easements through 2026–2027; they also noted a seven‑figure QSR win (just over 50% of that franchisee’s locations) onboarded May 1 that should ramp quickly with minimal startup costs, and reiterated priorities to grow revenues, improve margins, generate cash, and reduce debt (using excess ABL availability to make voluntary prepayments to narrow an ~500‑basis‑point spread between facilities).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
Neutral
1.18
Price Trends
1.45
Negative
1.75
Negative
1.73
Negative
Market Momentum
-0.08
Negative
45.94
Neutral
28.12
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QRHC, the sentiment is Neutral. The current price of 1.18 is above the 20-day moving average (MA) of 1.15, below the 50-day MA of 1.45, and below the 200-day MA of 1.73, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 45.94 is Neutral, neither overbought nor oversold. The STOCH value of 28.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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% | |
53 Neutral | $18.80M | -0.40 | -274.21% | ― | ― | -134.53% | |
48 Neutral | $9.87M | -2.04 | 0.47% | ― | 5.10% | -26.69% | |
45 Neutral | $218.49M | -10.29 | -24.89% | ― | 4.33% | 43.24% | |
43 Neutral | $23.06M | -5.93 | -44.35% | ― | -13.28% | -1.31% |
* 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.