Quest Resource Holding Corporation Reports 7.6% Revenue Growth in Q2 2026 Despite Net Loss

Quest Resource Holding Corporation (QRHC) reported its financial results for the second quarter of 2026, revealing a revenue increase of 7.6% to $64.1 million compared to $59.5 million in the same period last year. However, for the first half of 2026, revenue decreased by 1.7% to $125.8 million from $127.0 million in the prior year. The quarterly growth was attributed to improved volume from certain industrial clients and new business acquisitions, which contributed approximately $3.3 million and $1.2 million, respectively. Despite the revenue increase, the company experienced a gross profit decline, with gross profit for the quarter at $10.4 million, down from $11.0 million, reflecting a gross margin of 16.3%, compared to 18.5% in the previous year.

The company faced significant operational challenges, including an $11.0 million goodwill impairment charge, which contributed to a net loss of $12.2 million for the quarter, compared to a loss of $2.0 million in the same quarter of 2025. For the six months ended June 30, 2026, the net loss was $14.5 million, up from $12.4 million in the prior year. The increase in operating expenses, which totaled $20.4 million for the quarter, was primarily driven by the impairment charge, although selling, general, and administrative expenses decreased by 11.3% to $8.2 million.

In terms of operational metrics, QRHC's total current assets increased slightly to $52.3 million as of June 30, 2026, from $51.2 million at the end of 2025. The company reported a total of 21.1 million shares outstanding, reflecting a modest increase from the previous period. QRHC's cash and cash equivalents stood at $1.0 million, with working capital of $7.9 million, down from $11.7 million at the end of 2025. The company also reported a decrease in accounts receivable, which was attributed to improved collection efforts and billing cycle times.

Strategically, QRHC has been focusing on enhancing its operational efficiencies and expanding its service offerings. The company has entered into a new Loan and Security Agreement with Texas Capital Bank, providing a $40 million asset-based revolving credit facility, which is expected to support its operational needs and growth initiatives. The company anticipates that its existing cash, combined with borrowing capacity and cash generated from operations, will be sufficient to fund its operations for the next 12 months. However, QRHC remains cautious about potential economic challenges, including inflation and geopolitical uncertainties, which could impact its financial performance moving forward.