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Quest Resource (QRHC) investor relations material
Quest Resource Q2 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Q2 2025 revenue was $59.5M, down 18.6% year-over-year and 13% sequentially, mainly due to the divestiture of the mall-related business and industrial sector weakness, partially offset by new client growth.
Gross profit for Q2 2025 was $11.0M, flat margin at 18.5% year-over-year but up 1% sequentially; operational improvements and cost reductions are driving more consistent results.
Net loss for Q2 2025 was $(2.0)M ($0.09/share), compared to $(1.5)M in Q2 2024; Adjusted EBITDA was $2.7M, down 47.8% year-over-year but up from Q1.
Operational Excellence Initiatives are underway, focusing on cash generation, profitability, and process improvement, with initial benefits seen in cash flow and debt reduction.
The business is expanding share of wallet with existing clients and adding new clients, despite slower new client additions due to economic uncertainty.
Financial highlights
Q2 2025 revenue: $59.5M (down from $73.1M in Q2 2024); year-to-date revenue: $128.0M (down 12.2%).
Q2 2025 gross profit: $11.0M; gross margin 18.5% (flat year-over-year, up 250 bps sequentially).
Q2 2025 net loss: $(2.0)M; year-to-date net loss: $(12.4)M.
Q2 2025 Adjusted EBITDA: $2.7M (4.5% margin); year-to-date Adjusted EBITDA: $4.2M, down 58.7%.
Operating cash flow for Q2 was $3.9M; debt reduced by $6.6M year-to-date; net notes payable at quarter end were $69.7M.
Outlook and guidance
Gross profit expected to be flat to slightly down in Q3, with sequential growth resuming in Q4; SG&A costs anticipated to remain flat.
Management expects continued improvements in business trajectory, with strong operating cash flow and reduced SG&A.
Management expects to be in compliance with financial covenants for the remainder of 2025 and beyond.
Existing cash, borrowing availability, and expected cash from operations are believed sufficient to fund operations for at least the next 12 months.
Cautious outlook due to ongoing industrial end market uncertainty, margin pressures from renewals, and macroeconomic risks.
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