Quest Resource Holding Stock Earnings Reports

Quest Resource Q1 2026 highlights for investors: Revenue was $61.7M (down 10% YoY, up 5% sequentially). The YoY decline was driven primarily by lower volumes at a few large industrial customers (~$4M headwind) and the prior-year divestiture of mall-related revenue; nonindustrial segments (retail, restaurants, hospitality, grocery) grew and helped partially offset industrial weakness. Gross profit was $9.7M (down ~12% YoY) with a 15.7% gross margin, but gross profit improved sequentially as recent new-client onboardings and wallet-share expansions completed their one-time startup costs. Management emphasized operational-excellence initiatives (exception management, billing & collections, productivity and cost containment) that are delivering measurable improvements. SG&A was $8.4M (down ~26% YoY) despite a sequential increase driven by resumed bonus expense. Operating cash flow was slightly positive (~$0.2M), working capital days improved to 11.5 (≈11-day improvement YoY), and DSOs are in the mid-70s and trending down from the prior year. Balance sheet and liquidity: $1.1M cash and ~$63.4M net notes payable at quarter end; the company refinanced its ABL to Texas Capital Bank and obtained covenant easements from Monroe Capital, enabling greater flexibility and the ability to make voluntary prepayments on higher‑cost term debt (a $2.0M early payment was made in Q1). Recent commercial progress: a new 7‑figure quick‑service-restaurant (QSR) contract (onboarded May 1) covering just over 50% of the franchisee’s portfolio, plus several wallet-share opportunities with large customers; management expects sequential gross profit growth in Q2 as low-startup-cost clients ramp. Company priorities: grow revenue via new logos and wallet-share expansion, continue margin improvement through operational programs, improve cash generation and reduce debt. Key risks remain: softer industrial end markets, geopolitical developments, and the potential for sustained elevated fuel/commodity costs that could pressure margins or slow customer decisions.