Quest Resource (QRHC) Q2 2026 Earnings Call Transcript
Quest Resource Holding (QRHC) reported Q2 2026 revenue of $64.1 million, up 7.6% y/y, and adjusted EBITDA of $2.8 million. Gross profit fell to $10.4 million and gross margin to 16.3% due to industrial margin pressure. Operating cash flow was $4.5 million, with $2 million early term debt payment. A $11 million goodwill impairment drove a GAAP net loss of $12.2 million. Q3 revenue expected to grow sequentially.
How this was made
The 30-second read
Why it matters
Traders can use the disclosed Q2 operating metrics and the stated Q3 expectations (sequential revenue growth, flat-to-slightly-up gross margins) to update near-term estimates and risk framing around industrial volume normalization and margin pressure.
Market read
The call combines growth (revenue and adjusted EBITDA), improving cash cycle metrics (DSO and working capital days), and balance-sheet actions (debt reduction) with margin pressure and a non-cash goodwill impairment, plus a Q3 directional outlook.
What to watch
Gross margin fell YoY to 16.3% due to industrial client pressure, and the $11M goodwill impairment may raise investor scrutiny on valuation assumptions even if liquidity/covenants are unaffected.
Background
Quest Resource Holding Corporation held its Q2 2026 earnings call, covering revenue growth drivers, margin and cash flow performance, debt reduction, and a directional Q3 outlook.
Ticker impact
Quest Resource reported Q2 2026 revenue of $64.1M (+7.6% YoY) and guided Q3 to sequential revenue growth with flat-to-slightly-up gross margins.
Moderate, two-sided reaction risk: upside from sequential growth and cash/debt progress, offset by lower gross margin and a $11M goodwill impairment.
This is a company-specific earnings call transcript with multiple new datapoints (Q2 results, working capital improvement, liquidity, goodwill impairment, and Q3 outlook). However, the article does not include consensus beats/misses or a quantified EPS/FCF figure, limiting precision on magnitude.
Market effects
Signals demand stabilization in industrial end markets and continued expansion in non-industrial verticals (food service, retail, hospitality), relevant for industrial services peers.
No explicit regional demand or macro linkage beyond general macro/geopolitical risk commentary.
Diesel price resilience is mentioned, but no global supply-chain or international exposure details are provided.
Counterpoint
Working-capital gains and debt reduction may be partly timing-driven, while industrial volumes are described as subdued at select accounts, which could cap follow-through on margins.
Key entities
- companyQuest Resource Holding Corporation
Subject of the earnings call transcript, reporting Q2 2026 results and providing Q3 revenue and margin outlook.
- executivePerry Moss
CEO who discussed sales-cycle elongation risk, industrial volume normalization, and geopolitical risk impacts.
- executiveBrett Johnston
CFO who addressed the $11M goodwill impairment and stated it does not affect liquidity, cash flow, or debt covenant compliance.
- lenderMonroe Capital
Counterparty for a voluntary early term debt payment referenced in the call.
