Quest Resource Holding Corporation Reports Third Quarter 2026 Financial Results

(NASDAQ:QRHC) Quest Resource Holding Corporation announced its financial results for the third quarter ended September 30, 2026. Revenue for the third quarter of 2026 was $63.8 million, representing a 0.7% increase compared to the third quarter of 2025 and a 0.5% decrease from the second quarter of 2026. Gross profit for the quarter was $11.4 million, a 0.7% decrease from the third quarter of 2025 and a 9.1% increase from the second quarter of 2026. Gross margin was 17.8% of revenue, compared to 18.1% in the third quarter of 2025 and 16.3% in the second quarter of 2026. GAAP net loss was $(0.5) million, compared to a net loss of $(1.3) million in the third quarter of 2025 and a net loss of $(12.2) million in the second quarter of 2026, which included a non-cash goodwill impairment loss of $(11.0) million. GAAP net loss per basic and diluted share attributable to common stockholders was $(0.02), compared to $(0.06) for the third quarter of 2025 and $(0.57) for the second quarter of 2026. Adjusted EBITDA was $3.4 million, compared to $2.9 million for the third quarter of 2025 and $2.8 million for the second quarter of 2026. Non-industrial revenue grew sequentially, contributing to a more balanced and diversified revenue base. Gross margin improved by 150 basis points sequentially to 17.8%, driven by margin gains with industrial customers and continued optimization of the business. The company secured renewals with four customers and continued to expand share-of-wallet with existing customers. The sales pipeline remains healthy with several significant opportunities with national brands in late-stage discussions. The leadership team was strengthened through the addition of a new Senior Vice President of Technology with strong industry experience. Perry W. Moss, Chief Executive Officer, stated that the third quarter results reflect progress in building a more balanced and diversified business, with consistent performance and operating efficiencies driving Adjusted EBITDA growth both sequentially and year-over-year. Brett Johnston, Chief Financial Officer, noted that margin improvement with industrial customers and ongoing optimization of the service network drove a 150-basis point sequential increase in gross margin, and that disciplined cost management led to meaningful year-over-year SG&A savings. On the balance sheet, cash and cash equivalents were $943 thousand as of September 30, 2026, compared to $1,014 thousand as of December 31, 2025. Accounts receivable, less allowance for doubtful accounts, were $49,947 thousand as of September 30, 2026. Goodwill was $70,065 thousand as of September 30, 2026, compared to $81,065 thousand as of December 31, 2025. Intangible assets, net, were $5,436 thousand as of September 30, 2026. Property and equipment, net, and other assets were $5,217 thousand as of September 30, 2026. Total assets were $133,276 thousand as of September 30, 2026, compared to $145,551 thousand as of December 31, 2025. Accounts payable and accrued liabilities were $42,462 thousand as of September 30, 2026, compared to $38,384 thousand as of December 31, 2025. Current portion of notes payable was $540 thousand as of September 30, 2026. Notes payable, net, was $60,013 thousand as of September 30, 2026, compared to $63,999 thousand as of December 31, 2025. Total liabilities were $106,669 thousand as of September 30, 2026. Total stockholders’ equity was $26,607 thousand as of September 30, 2026, compared to $40,512 thousand as of December 31, 2025. Weighted average number of common shares outstanding, basic and diluted, was 21,474 thousand for the three months ended September 30, 2026. The company will host a conference call on November 5, 2026, at 5:00 PM ET to review the financial results.