Quest Resource Holding Corp reported second-quarter revenue of $64.1 million, marking a 7.6% year-over-year increase. Despite a net loss of $12.2 million, the company achieved strong cash flow and a $2.0 million voluntary debt reduction, signaling improved cash management for investors.

Key Highlights

  • Revenue rose 7.6% YoY to $64.1 million in Q2 2026, while the share‑of‑wallet wins and efficiency gains lifted sales 3.8% versus Q1 2026.
  • Gross profit declined to $10.4 million, with the gross margin slipping to 16.3% from 18.5% a year earlier.
  • SG&A expenses were cut 11% year‑over‑year, and operating cash flow of $4.5 million allowed a $2.0 million reduction in term debt.

Quest Resource Holding Corp (NASDAQ: QRHC) reported second-quarter 2026 revenue of $64.1 million, a 7.6% increase from the prior year's quarter. This growth comes despite challenges, including an overall market decline reflected in a 35.9% year-to-date drop in the company's shares.

Revenue Breakdown

Total revenue for the second quarter was $64.1 million, compared to $59.5 million for the same quarter last year. This boost included contributions from four new share-of-wallet wins and ongoing efficiency improvements, driving a quarterly sales increase of 3.8% over the first quarter of 2026. Despite this sales growth, gross profit fell to $10.4 million, a 5.5% decline compared to the second quarter of 2025, reflecting decreased gross margins.

The gross margin was reported at 16.3%, down from 18.5% in the year-ago period, highlighting pressures on profitability even amid rising revenues.

Cost Management Initiatives

Quest effectively managed costs through productivity initiatives, achieving an 11% reduction in selling, general, and administrative (SG&A) expenses compared to last year. The operating cash flow of $4.5 million enabled the company to reduce term debt by $2.0 million in the quarter. This aligns with Quest's ongoing focus on optimizing costs and improving liquidity, important for managing a challenging market.

Market Context

Quest's stock has been under pressure, down approximately 35.9% year-to-date, indicative of broader market conditions impacting the environmental services sector. The overall market performance, seen with peers like TISI remaining little changed and BCHT up 0.7%, reflects the volatility affecting investor sentiment. Despite these challenges, recent customer wins signal a healthy sales pipeline, reinforcing the potential for improved financial outcomes if market conditions stabilize.

Upcoming Events

Investors should look forward to the earnings conference call scheduled for August 6, where management will examine into the second-quarter results and future strategies. Continuous improvements in cash management alongside a focus on cost optimization may further enhance financial performance in subsequent quarters. Given the backdrop of a recovering market, the company's future initiatives will be critical to restoring confidence among investors and potentially reversing the negative stock trend.

Peers Moving on This News

  • Team Inc (TISI) little changed
  • Birchtech Corp (BCHT) up 0.7%

Analysis based on the Form 8-K filed 6 August 2026; figures verified against the filing and live market data.

This article is for informational purposes only and does not constitute financial advice. Please consult a licensed financial adviser before making investment decisions.