QRHC Q2 Revenue Beats, but $11M Goodwill Impairment Drives Deep Loss

summarizeSummary

QRHC's Q2 revenue beat estimates, but an $11M goodwill impairment charge drove a steep net loss and eroded equity, highlighting balance sheet stress despite operational improvements.

check_boxKey Events · Earnings and Guidance · QRHC

• Revenue Beats Consensus

  Q2 revenue of $64.1M rose 7.6% YoY, exceeding the $63.55M consensus estimate, driven by industrial volume improvements and new business.

• $11M Goodwill Impairment Charge

  A sustained stock price decline below book value triggered a non-cash goodwill impairment of $11.0M, causing a Q2 net loss of $12.2M and reducing stockholders' equity to $26.8M.

• Adjusted EBITDA Improves

  Adjusted EBITDA increased 4% YoY to $2.8M, reflecting lower SG&A expenses from cost-saving initiatives, partially offset by gross margin pressure.

• Liquidity Remains Tight

  Cash stood at $1.0M as of June 30, 2026, with $19.4M available under the new TCB ABL facility; management expects sufficient liquidity for the next 12 months.

auto_awesomeAnalysis · QRHC · Energy & Transportation

Quest Resource Holding Corp reported Q2 revenue of $64.1 million, a 7.6% increase year-over-year and slightly above the $63.55 million consensus. However, a sustained decline in the company's stock price triggered an $11.0 million non-cash goodwill impairment, swinging the bottom line to a net loss of $12.2 million from a near-breakeven a year ago. The impairment wiped out a significant portion of stockholders' equity, which fell to $26.8 million. On an adjusted basis, EBITDA rose 4% to $2.8 million, reflecting cost discipline. Liquidity remains tight with $1.0 million in cash, though $19.4 million is available under a new ABL facility. The results underscore a bifurcated picture: improving operations and revenue growth are overshadowed by balance sheet deterioration and a low stock price that forced the impairment.