Quest Resource (NASDAQ:QRHC) Releases Earnings Results, Misses Estimates By $0.09 EPS

Quest Resource (NASDAQ:QRHC) posted its earnings results on Thursday. The business services provider reported ($0.08) EPS for the quarter, missing the consensus estimate of $0.01 by ($0.09), FiscalAI reports. The company had revenue of $58.91 million for the quarter, compared to the consensus estimate of $61.21 million. Quest Resource had a negative return on equity of 13.96% and a negative net margin of 6.15%.

Here are the key takeaways from Quest Resource’s conference call:

• Fourth-quarter revenue was $58.9 million, down 16% year-over-year and 7% sequentially, driven mainly by softer industrial volumes and the divestiture of a mall-related business.
• Fourth-quarter gross profit fell to $9.1 million (15.5% margin), a 15% decline year-over-year and 21% sequentially, pressured by lower industrial margins and ~$0.5 million of one-time implementation costs, with margin headwinds expected to persist into 2026.
• Cost and balance-sheet improvements continued — SG&A fell 24% to $7.7 million, working capital days dropped to 11, DSOs improved, the company generated positive free cash flow, and it paid down $13.2 million of debt in 2025.
• Commercial momentum includes about $29 million of incremental revenue from wins and wallet-share expansion in 2025, with large retailer and restaurant launches now ramping and a focused share-of-wallet strategy expected to accelerate growth as volumes recover.
• Management refinanced the ABL with Texas Capital and secured covenant easements with Monroe Capital, providing liquidity cushion into 2027 and greater flexibility to reduce interest expense and reallocate debt as cash generation improves.

Quest Resource Stock Performance

QRHC stock opened at $1.13 on Friday. The company has a debt-to-equity ratio of 1.56, a current ratio of 1.32 and a quick ratio of 1.32. The company has a 50 day moving average price of $1.91 and a 200 day moving average price of $1.77. Quest Resource has a fifty-two week low of $1.08 and a fifty-two week high of $3.13. The stock has a market capitalization of $23.58 million, a PE ratio of -1.55 and a beta of 0.17.

Quest Resource News Roundup

Here are the key news stories impacting Quest Resource this week:

• Positive Sentiment: Company cut debt and improved liquidity (refinanced ABL, covenant easements into 2027) — management says the refinancing and covenant relief provide operating flexibility while they execute margin initiatives. Press Release
• Positive Sentiment: New customer wins and share‑of‑wallet expansions were announced (including a full‑service restaurant customer), which management says will ramp and contribute incremental organic growth. Quiver Summary
• Positive Sentiment: Adjusted EBITDA improved in Q4 versus prior year (Q4 adjusted EBITDA $2.1M vs $1.7M), and GAAP net loss narrowed year‑over‑year for the quarter — signs management points to as evidence their efficiency programs are working. Quiver Summary
• Neutral Sentiment: Full Q4 earnings and management commentary are available from the earnings call/transcript — useful for hearing detail on volume trends, contract ramps, and margin actions. Earnings Transcript (Yahoo)
• Negative Sentiment: Revenue and EPS missed expectations — Q4 revenue $58.9M (down ~15.8% YoY) and GAAP EPS $(0.08), missing consensus; investors often sell on both top‑line misses and EPS misses. Zacks: Q4 Loss, Misses Revenue
• Negative Sentiment: Industrial volume weakness is the primary operational headwind cited by management; efficiency gains haven’t fully offset lower volumes, pressuring near‑term revenue and gross profit. QRHC Q4 Deep Dive
• Negative Sentiment: Full‑year metrics show stress: FY2025 revenue and adjusted EBITDA declined vs 2024 (adjusted EBITDA down materially year‑over‑year), and the company remains loss‑making on a GAAP basis for the year. Quiver Summary
• Negative Sentiment: Media coverage and block/institutional position moves show selling pressure and heightened trading volume around the release, amplifying downward share momentum. MSN: Shares Falling

Analysts Set New Price Targets

Separately, Wall Street Zen upgraded Quest Resource to a “hold” rating in a research note on Saturday, January 10th. Two equities research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Reduce” and an average price target of $2.25.

Institutional Inflows and Outflows

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

Quest Resource Company Profile

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.