Download PDF

1. Company Snapshot

1.a. 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 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.The company provides santifreeze and windshield washer fluid, dumpster and compacting equipment, and other minor ancillary services.


In addition, it offers landfill diversion services.The company's services focus on the waste streams and recyclables from big box, grocers, and other retailers; automotive maintenance, quick lube, dealerships, and collision repair; transportation, logistics, and internal fleet operators; manufacturing plants; multi-family and commercial properties; restaurant chains and food operations; and construction and demolition projects.It markets its services to automotive, manufacturing, hospitality and retail, construction and demolition, and commercial and multi-family property management industries through direct sales force and strategic partnerships.


The company was formerly known as Infinity Resources Holdings Corp.and changed its name to Quest Resource Holding Corporation in October 2013.Quest Resource Holding Corporation was incorporated in 2002 and is based in The Colony, Texas.

Show Full description

1.b. Last Insights on QRHC

Quest Resource Holding Corporation's recent performance was negatively impacted by a 5.8% decrease in revenue to $68.4 million in Q1 2025, compared to the same period last year. The company's quarterly loss widened to $0.14 per share, missing revenue estimates. However, the sale of a non-core business for $5 million and reduction of headcount are expected to yield $3 million in annual cost savings. The company also amended agreements with lenders to improve financial flexibility, and is focused on implementing efficiency programs.

1.c. Company Highlights

2. Quest Resource Holding Corporation Delivers Sequential Improvement in Q3

Quest Resource Holding Corporation reported a revenue of $63.3 million in the third quarter, a 13% decrease from the prior year but a 6.4% sequential increase. The gross margin was 18.1%, 200 basis points better than the prior year. The company's gross profit dollars totaled $11.5 million, a 2% decline from the prior year but a 3.9% sequential increase. SG&A was $9.2 million, a 10% reduction year over year. The actual EPS came out at '-0.02' relative to estimates at '-0.00667', indicating a loss. The company's cash generation improved, with $5.7 million in cash from operations and a $4.6 million debt repayment during the quarter.

Publication Date: Nov -30

📋 Highlights
  • Sequential Financial Growth:: Revenue increased 6.4% sequentially to $63.3M, while gross profit rose 3.9% to $11.5M despite a 13% YoY revenue drop.
  • Gross Margin Improvement:: Gross margin expanded 200 bps to 18.1% YoY, driven by operational efficiencies and industrial stabilization.
  • Cost Efficiency Gains:: SG&A costs fell 10% YoY to $9.2M, reflecting disciplined cost management.
  • Cash Flow and Debt Reduction:: Generated $5.7M in operating cash flow, paying down $4.6M in debt during the quarter.
  • Strategic Business Wins:: Secured a 7–8 figure food processing contract, accounting for ~20% of the customer’s portfolio, boosting revenue diversification.

Operational Highlights and Initiatives

The company has been working on diversifying its portfolio to add customers that ramp up in Q4, and its strategy to take wallet share from clients has been enhanced and refined. Quest has won a new food processing customer with a 7 or 8-figure deal size, representing about 20% of the customer's portfolio. Operational improvement initiatives are on track, with 25 KPIs showing positive trends since April. The vendor management platform is progressing well, with improved relationships with vendors, better rates, and lower service disruptions.

Financial Performance and Outlook

The company's financial performance is expected to continue improving, driven by operational efficiencies and stabilization in industrials. Quest expects to continue to experience some margin pressure but anticipates offsetting these pressures through optimizing service levels, growing share of wallet with existing clients, and driving operational improvements. Analysts estimate next year's revenue growth at 3.1%.

Valuation and Debt Reduction

With a P/S Ratio of 0.14 and an EV/EBITDA of -14.84, the company's valuation appears to reflect its challenging financial performance. Quest aims to pay down debt aggressively, with a preference for paying down more expensive debt. The company's Net Debt / EBITDA is -9.6, indicating a significant debt burden. The company plans to fund strategic initiatives while paying down debt, with a focus on continuous improvement and driving incremental efficiency.

3. NewsRoom

Card image cap

Head-To-Head Analysis: Enviri (NYSE:NVRI) vs. Quest Resource (NASDAQ:QRHC)

Dec -07

Source: defenseworld.net

Card image cap

Quest Resource Holding Corporation (QRHC) Q3 2025 Earnings Call Transcript

Nov -11

Source: seekingalpha.com

Card image cap

Quest Resource (QRHC) Reports Q3 Loss, Beats Revenue Estimates

Nov -10

Source: zacks.com

Card image cap

New Strong Sell Stocks for August 28th

Aug -28

Source: zacks.com

Card image cap

Quest Resource: Price Has Become More Logical, But Still Unattractive Given Risks

Aug -12

Source: seekingalpha.com

Card image cap

Quest Resource Holding Corporation (QRHC) Q2 2025 Earnings Call Transcript

Aug -12

Source: seekingalpha.com

Card image cap

Quest Resource (QRHC) Reports Q2 Loss, Lags Revenue Estimates

Aug -12

Source: zacks.com

Card image cap

Quest Resource Holding Corporation Reports Second Quarter 2025 Financial Results

Aug -11

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.92%)

6. Segments

Waste and Recycling Services

Expected Growth: 9%

Quest Resource Holding Corporation's Waste and Recycling Services segment growth is driven by increasing environmental regulations, rising landfill costs, and growing demand for sustainable waste management practices. Additionally, the company's focus on organic growth through strategic acquisitions and expansion into new markets contributes to its 9% growth rate.

Antifreeze and Windshield Washer Fluid and Other

Expected Growth: 7%

Quest Resource Holding Corporation's Antifreeze and Windshield Washer Fluid segment growth is driven by increasing demand for eco-friendly and high-performance products, expansion into new markets, and strategic partnerships. Additionally, growing vehicle sales, extreme weather conditions, and government regulations promoting environmental sustainability contribute to the 7% growth rate.

7. Detailed Products

Recycling Services

Quest Resource Holding Corporation provides recycling services to help businesses and municipalities manage their waste efficiently. The company's recycling programs are designed to reduce waste disposal costs, minimize environmental impact, and maximize recycling revenue.

Sustainability Services

Quest offers sustainability services to help organizations reduce their environmental footprint and improve their sustainability performance. The company's sustainability services include waste reduction, energy efficiency, and sustainable supply chain management.

Environmental Services

Quest provides environmental services to help organizations comply with environmental regulations and manage environmental risks. The company's environmental services include environmental consulting, permitting, and compliance management.

Waste Management Services

Quest offers waste management services to help organizations manage their waste streams efficiently and sustainably. The company's waste management services include waste reduction, recycling, and disposal management.

Compliance Services

Quest provides compliance services to help organizations comply with environmental regulations and industry standards. The company's compliance services include auditing, training, and compliance management.

8. Quest Resource Holding Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Quest Resource Holding Corporation is moderate due to the availability of alternative waste management services.

Bargaining Power Of Customers

The bargaining power of customers is low for Quest Resource Holding Corporation as the company provides specialized waste management services to a diverse customer base.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate for Quest Resource Holding Corporation as the company relies on a network of suppliers for equipment, materials, and services.

Threat Of New Entrants

The threat of new entrants is low for Quest Resource Holding Corporation due to the high barriers to entry in the waste management industry, including regulatory hurdles and capital requirements.

Intensity Of Rivalry

The intensity of rivalry is high in the waste management industry, with several established players competing for market share and Quest Resource Holding Corporation facing competition from larger rivals.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 50.00%
Debt Cost 6.82%
Equity Weight 50.00%
Equity Cost 6.82%
WACC 6.82%
Leverage 100.01%

11. Quality Control: Quest Resource Holding Corporation passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Montrose Environmental Group

A-Score: 3.8/10

Value: 5.3

Growth: 4.0

Quality: 3.1

Yield: 0.0

Momentum: 7.5

Volatility: 2.7

1-Year Total Return ->

View Full Report
Stock-Card
Enviri

A-Score: 3.7/10

Value: 6.9

Growth: 3.4

Quality: 1.1

Yield: 0.0

Momentum: 6.5

Volatility: 4.0

1-Year Total Return ->

View Full Report
Stock-Card
Aqua Metals

A-Score: 3.1/10

Value: 7.4

Growth: 5.0

Quality: 6.2

Yield: 0.0

Momentum: 0.0

Volatility: 0.0

1-Year Total Return ->

View Full Report
Stock-Card
Quest Resource

A-Score: 3.1/10

Value: 9.6

Growth: 3.0

Quality: 3.4

Yield: 0.0

Momentum: 0.0

Volatility: 2.3

1-Year Total Return ->

View Full Report
Stock-Card
Perma-Fix Environmental Services

A-Score: 2.7/10

Value: 6.8

Growth: 0.4

Quality: 5.4

Yield: 0.0

Momentum: 1.0

Volatility: 2.3

1-Year Total Return ->

View Full Report
Stock-Card
LanzaTech

A-Score: 2.6/10

Value: 8.0

Growth: 3.6

Quality: 3.8

Yield: 0.0

Momentum: 0.0

Volatility: 0.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2.2$

Current Price

2.2$

Potential

0.00%

Expected Cash-Flows