Quest Resource Q2 revenue rises on new customer wins, wallet share expansions

Quest Resource Holding

06/08/2026 21:47

Overview
US waste and recycling firm's Q2 revenue rose 7.6% year-over-year
Gross profit fell 5.5% and gross margin narrowed to 16.3% from 18.5%
Q2 net loss widened due to $11 mln non-cash goodwill impairment

Outlook
Quest expects to deliver improved financial results as conditions normalize
Company's financial focus remains on cost optimization, debt reduction, and improving cash cycle

Result Drivers
NEW CUSTOMER WINS - Co said Q2 revenue growth was driven by new customer wins and wallet share expansions onboarded in late 2025 and early 2026
COST OPTIMIZATION - Productivity initiatives and cost optimization led to an 11% reduction in SG&A expenses and supported operating cash flow
WORKING CAPITAL INITIATIVES - Progress on working capital initiatives helped generate strong operating cash flow, facilitating voluntary debt reduction

Company press release: ID:nGNX5MyscQ

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Slight Beat*
$64.10 mln
$63.55 mln (2 Analysts)
Q2 Adjusted EBITDA
Beat
$2.80 mln
$2.40 mln (2 Analysts)
Q2 Gross Margin
 
16.30%
 
Q2 Gross Profit
 
$10.40 mln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the environmental services & equipment peer group is "buy"
Wall Street's median 12-month price target for Quest Resource Holding Corp is $3.25, about 157.9% above its August 5 closing price of $1.26

Reuters Recommended Reads
Aug 6 - Finland's Lassila & Tikanoja beats Q2 sales estimates on strength in Waste Management and Recycling segment
Aug 5 - Hudson Technologies Q2 revenue beats estimates on strong volume
Aug 5 - Forward Air Q2 operating revenue rises, beats estimates but posts loss on impairment

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)