--- title: "Quest Resource | 10-Q: FY2026 Q1 Revenue Misses Estimate at USD 61.74 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/285795020.md" datetime: "2026-05-09T04:05:13.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285795020.md) - [en](https://longbridge.com/en/news/285795020.md) - [zh-HK](https://longbridge.com/zh-HK/news/285795020.md) --- # Quest Resource | 10-Q: FY2026 Q1 Revenue Misses Estimate at USD 61.74 M Revenue: As of FY2026 Q1, the actual value is USD 61.74 M, missing the estimate of USD 62.2 M. EPS: As of FY2026 Q1, the actual value is USD -0.11. EBIT: As of FY2026 Q1, the actual value is USD 2.292 M. Quest Resource Holding Corporation manages its business activities as a single operating and reportable segment at the consolidated level . #### Revenue - **Consolidated Revenue**: For the three months ended March 31, 2026, revenue was $61.7 million, representing a 9.8% decrease from $68.4 million for the same period in 2025 . This decline was primarily due to a $4.0 million reduction from industrial end-market clients and a $3.0 million decrease from the divestiture of an underperforming business operation . These reductions were partially offset by approximately $2.0 million in growth from new client wins and expanded business from existing clients, though client attrition of $1.7 million also occurred . #### Gross Profit - **Gross Profit**: Gross profit for the three months ended March 31, 2026, was $9.7 million, compared to $10.9 million for the same period in 2025 . - **Gross Profit Margin**: The gross profit margin was 15.7% for the three months ended March 31, 2026, a slight decrease from 16.0% for the same period in 2025, attributed to headwinds from industrial clients . #### Operating Expenses - **Total Operating Expenses**: Total operating expenses decreased to $9.4 million for the three months ended March 31, 2026, from $19.1 million for the same period in 2025 . - **Selling, General, and Administrative (SG&A)**: SG&A expenses were $8.4 million for the three months ended March 31, 2026, down from $11.4 million in the prior year, including $1.8 million in labor-related savings and a $0.6 million decrease in professional and marketing fees . - **Depreciation and Amortization**: Depreciation and amortization expenses decreased to $1.0 million in Q1 2026 from $1.5 million in Q1 2025 . - **(Gain) Loss on Sale of Assets, Net**: The company reported a net gain of - $11 thousand on the sale of assets in Q1 2026, compared to a net loss of $4.4 million in Q1 2025 . - **Impairment Loss**: No impairment loss was recorded in Q1 2026, compared to a $1.7 million impairment loss in Q1 2025 . #### Operating Income (Loss) - **Operating Income (Loss)**: The company reported operating income of $242 thousand for the three months ended March 31, 2026, a significant improvement from an operating loss of - $8,161 thousand for the same period in 2025 . #### Interest Expense and Debt Extinguishment - **Interest Expense**: Interest expense decreased to - $2.1 million for the three months ended March 31, 2026, from - $2.3 million for the same period in 2025 . - **Loss on Extinguishment of Debt**: A loss of - $488 thousand was recognized in Q1 2026 due to the termination of the PNC Loan Agreement . #### Net Loss - **Net Loss**: Net loss for the three months ended March 31, 2026, was - $2.3 million, a considerable improvement from a net loss of - $10.4 million for the same period in 2025 . #### Adjusted EBITDA (Non-GAAP) - **Adjusted EBITDA**: For the three months ended March 31, 2026, Adjusted EBITDA increased by 15.2% to $1.8 million, up from $1.6 million for the same period in 2025 . #### Cash Flows - **Net Cash Provided by (Used in) Operating Activities**: Net cash provided by operating activities was $190 thousand for the three months ended March 31, 2026, compared to net cash used in operating activities of - $1,058 thousand for the same period in 2025 . - **Net Cash (Used in) Provided by Investing Activities**: Net cash used in investing activities was - $373 thousand in Q1 2026, primarily for software development costs, contrasting with net cash provided by investing activities of $4.5 million in Q1 2025, mainly from the sale of divested business operations . - **Net Cash Provided by (Used in) Financing Activities**: Net cash provided by financing activities was $308 thousand in Q1 2026, including net borrowings of $2.7 million, partially offset by $2.1 million in debt repayments . #### Liquidity and Capital Resources - **Working Capital**: As of March 31, 2026, working capital was $11.9 million, including $1.1 million in cash and cash equivalents, compared to $11.7 million (including $1.0 million cash) as of December 31, 2025 . #### Future Outlook and Strategy Quest Resource Holding Corporation expects existing cash, borrowing availability under its $40.0 million TCB ABL Facility, and cash generated from operations to be sufficient to fund operations for the next 12 months and the foreseeable future . The company’s known uses of cash include capital expenditures, lease payments, and debt service . The company anticipates being in compliance with financial covenants under its loan agreements for the remainder of 2026 and beyond . ### Related Stocks - [QRHC.US](https://longbridge.com/en/quote/QRHC.US.md) ## Related News & Research - [What To Expect From Quest Resource’s (QRHC) Q2 Earnings](https://longbridge.com/en/news/294906104.md) - [Quest for Growth Q2 FY26 returns to profit of € 6.9 million](https://longbridge.com/en/news/294389561.md) - [Tyra Biosciences Q2 FY26 net loss widens to $45.56 million; R&D expenses climb to $39.2 million](https://longbridge.com/en/news/294866378.md) - [Hamilton Lane Q1 FY27 GAAP net income rises 62% to USD 124.88 million; revenue climbs 56% to USD 275.33 million](https://longbridge.com/en/news/294812724.md) - [Why Nvidia stock still trades at a heavy discount to chip rivals](https://longbridge.com/en/news/294857037.md)