Quest Resource Q2 Revenue Beats, But $11M Impairment Widens Loss
QRHC sits 57% above its 52-week low of $0.81.
Summary
Quest Resource reported Q2 revenue of $64.1M, a 7.6% YoY increase and a slight beat over the $63.55M consensus. Adjusted EBITDA of $2.8M also topped estimates. However, gross margin contracted to 16.3% from 18.5%, and a non-cash $11M goodwill impairment charge pushed the net loss wider. The revenue growth was driven by new customer wins and wallet share expansions onboarded in late 2025 and early 2026. Cost optimization efforts cut SG&A by 11%, supporting operating cash flow and voluntary debt reduction. The mixed results—top-line growth with margin pressure and a large impairment—leave the near-term outlook uncertain despite management's expectation of improving conditions.
At the time of this announcement, QRHC was trading at $1.27 on NASDAQ in the Industrial Applications And Services sector, with a market capitalization of approximately $26.8M. The 52-week trading range was $0.81 to $2.41. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: Reuters.