Quest Resource (NASDAQ:QRHC) Posts Quarterly Earnings Results, Misses Expectations By $0.06 EPS

Quest Resource (NASDAQ:QRHC) released its quarterly earnings data on Thursday. The business services provider reported ($0.09) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.03) by ($0.06), Zacks reports. Quest Resource had a negative return on equity of 12.07% and a negative net margin of 3.00%.The business had revenue of $61.73 million during the quarter, compared to analyst estimates of $62.21 million.

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 Price Performance

Shares of NASDAQ QRHC opened at $1.15 on Friday. The stock has a market capitalization of $24.10 million, a price-to-earnings ratio of -3.38 and a beta of 0.21. Quest Resource has a 12 month low of $0.81 and a 12 month high of $2.64. The firm’s 50 day simple moving average is $1.25 and its 200-day simple 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.

Hedge Funds Weigh In On Quest Resource

Several large investors have recently made changes to their positions in QRHC. Qube Research & Technologies Ltd acquired a new stake in Quest Resource during the second quarter valued at $50,000. Jane Street Group LLC raised its position in shares of Quest Resource by 91.4% in the fourth quarter. Jane Street Group LLC now owns 27,233 shares of the business services provider’s stock worth $51,000 after acquiring an additional 13,004 shares during the period. Bank of America Corp DE raised its position in shares of Quest Resource by 36.5% in the fourth quarter. Bank of America Corp DE now owns 15,356 shares of the business services provider’s stock worth $100,000 after acquiring an additional 4,104 shares during the period. Goldman Sachs Group Inc. boosted its stake in shares of Quest Resource by 22.8% during the 1st quarter. Goldman Sachs Group Inc. now owns 51,990 shares of the business services provider’s stock worth $135,000 after acquiring an additional 9,647 shares in the last quarter. Finally, Rothschild Wealth LLC purchased a new stake in shares of Quest Resource during the 4th quarter worth about $274,000. 48.16% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of research firms recently issued reports on QRHC. Weiss Ratings upgraded shares of Quest Resource from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Thursday. Wall Street Zen raised Quest Resource to a “hold” rating in a research report on Saturday, January 10th. Finally, Zacks Research lowered Quest Resource from a “hold” rating to a “strong sell” rating in a research note on Tuesday, March 31st. One analyst has rated the stock with a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Sell” and a consensus target price of $2.25.

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.