Quest Resource Holding Corp (QRHC) · Nov 5, 2026 · Earnings
In line — Revenue $63.8M vs ~$66.3M consensus; EPS -$0.02 vs ~$0.03 loss consensus
Quest Resource’s Q3 earnings show a sharp margin and EBITDA recovery, but revenue fell short of consensus and remains essentially flat year over year.
Quest is trying to rebuild growth after a weaker 2025, using customer diversification, share-of-wallet expansion and operating efficiencies to repair profitability. Its second quarter showed revenue growth but margin pressure, alongside debt reduction and a large goodwill impairment; the third quarter tests whether the operating recovery is taking hold.
Profitability improved materially, but the top line did not clear the bar. Revenue was $63.8 million, up only 0.7% year over year and down 0.5% sequentially, versus published consensus of roughly $66.3 million. That is a meaningful sales miss, even though the $0.02 per-share loss was narrower than the roughly $0.03 loss expected.
| Metric | Q3 2026 | Q3 2025 | Consensus / Q2 2026 |
|---|---|---|---|
| Revenue (Financial Highlights) | $63.8M (-0.5%) | $63.3M | ~$66.3M consensus |
| Gross margin (Financial Highlights) | 17.8% | 18.1% | 16.3% |
| Adjusted EBITDA (Reconciliation) | $3.4M (+16.8%) | $2.9M | $2.8M |
| GAAP net loss/share (Financial Highlights) | $(0.02) | $(0.06) | ~$(0.03) consensus |
The encouraging part is operating leverage, not demand acceleration. Gross margin expanded 150 basis points sequentially to 17.8%, and adjusted EBITDA rose to $3.4 million from $2.8 million in the second quarter and $2.9 million a year earlier. Lower SG&A and better industrial-customer margins are doing the work; revenue itself is still flat. 〔0〕
The balance sheet remains a constraint, even with debt reduction continuing. Notes payable declined to $60.0 million from $64.0 million at year-end, but cash was only $0.9 million and stockholders’ equity fell to $26.6 million from $40.5 million, partly reflecting the prior-quarter goodwill impairment and continuing losses. The quarter improves the earnings engine, but it does not yet establish a stronger growth or liquidity profile.
The pipeline is still an unproven promise. Quest cites four customer renewals, expanding share of wallet and late-stage discussions with national brands, while adding a technology executive to support optimization. Those could address the revenue shortfall, but none is yet reported as new revenue or a signed major contract. 〔1〕
Bottom line: This is a mixed earnings quarter: Quest is repairing margins and EBITDA faster than expected, but revenue remains below the market’s bar. The operating recovery is credible; the growth recovery is not yet demonstrated.
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