Revenue: As of FY2025, the actual value is USD 250.22 M, missing the estimate of USD 252.52 M.

EPS: As of FY2025, the actual value is USD -0.73.

EBIT: As of FY2025, the actual value is USD 3.052 M.

Quest Resource Holding Corporation operates as a single operating and reportable segment, with consolidated net income (loss) used to measure segment profit or loss, allocate resources, and assess performance.

Revenue

Revenue for the year ended December 31, 2025, was $250.2 million, a decrease of $38.3 million or 13.3% compared to $288.5 million in 2024. This decline was primarily due to a $31.4 million reduction from certain industrial end-market clients and a $14.3 million decrease from the divestiture of an underperforming business operation in Q1 2025. These reductions were partially offset by $7.0 million in incremental growth from new and expanded client business, though client attrition, mainly in Q4 2024, offset $19.5 million of this growth.

Operational Metrics

• Cost of Revenue: Decreased to $207.7 million in 2025 from $238.5 million in 2024.
• Gross Profit: Decreased by $7.5 million to $42.5 million in 2025 from $50.0 million in 2024.
• Gross Profit Margin: Slightly declined to 17.0% in 2025 from 17.3% in 2024.
• Operating Expenses: Decreased to $48.7 million in 2025 from $54.5 million in 2024, driven by $1.6 million in labor-related cost savings and $1.2 million in reduced professional fees, partially offset by increased severance and IT costs.
• Operating Loss: Was - $6.157 million in 2025 compared to - $4.460 million in 2024.
• Depreciation and Amortization: Decreased to $5.3 million in 2025 from $9.4 million in 2024 due to a lower customer relationship intangible balance and reclassification of intangible assets as held for sale.
• Loss on Sale of Assets, Net: Was $4.1 million in 2025, compared to $0 in 2024.
• Impairment Loss: Was $1.7 million in 2025 versus $5.5 million in 2024.
• Interest Expense: Decreased to - $9.2 million in 2025 from - $10.3 million in 2024 due to reduced borrowings.
• Net Loss: Was - $15.4 million in 2025, compared to - $15.1 million for 2024.
• Adjusted EBITDA: Was $9.297 million in 2025 compared to $14.469 million in 2024.

Cash Flow

• Net Cash Provided by Operating Activities: Significantly improved to $9.6 million in 2025 from - $6.1 million in 2024, primarily due to improved working capital management, stronger collection efforts, and reduced interest payments.
• Net Cash Provided by Investing Activities: Was $4.6 million in 2025, mainly from the sale of divested business operations ($5.0 million) and equipment ($1.1 million), contrasting with - $6.0 million used in 2024 for property and equipment purchases.
• Net Cash Used in Financing Activities: Was - $13.5 million in 2025, driven by net repayments on notes payable and the ABL Facility, compared to $12.1 million provided in 2024.
• Net Increase in Cash and Cash Equivalents: Was $0.618 million in 2025 compared to $0.072 million in 2024.

Outlook / Guidance

Quest Resource Holding Corporation expects its existing cash, available borrowing under its ABL Facility, and cash generated from operations to be sufficient to fund its operations for the next 12 months and the foreseeable future. The company anticipates managing volatility in costs like fuel, labor, and capital items through flexible pricing structures and cost recovery fees. However, there is no assurance that the company will not be affected by higher rates of inflation and increases in interest rates in the future.