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 .