Quest Resource (QRHC) investor relations material

Executive summary

• Revenue grew to $64.1 million, up 8% year-over-year and 4% sequentially, driven by new customer wins and wallet share expansions, especially in non-industrial markets.

• Adjusted EBITDA improved to $2.8 million, up from $2.7 million in Q2 2025 and $1.8 million in Q1 2026.

• Operational excellence and productivity initiatives led to improved cost structure, cash cycle, and an 11% reduction in SG&A expenses year-over-year.

• Industrial business volumes stabilized, while non-industrial segments outperformed expectations.

• GAAP net loss widened to $12.2 million, primarily due to a non-cash goodwill impairment of $11 million.

Financial highlights

• Q2 revenue was $64.1 million, up 8% year-over-year and 4% sequentially.

• Gross profit was $10.4 million, down 6% year-over-year but up 8% sequentially; gross margin was 16.3%, down from 18.5% last year but up from 15.7% last quarter.

• SG&A expenses were $8.92 million, an 11% reduction year-over-year and 2% sequentially.

• Operating cash flow was $4.5 million for the quarter, supporting voluntary debt reduction.

• Net notes payable reduced to $59.4 million, down $4.6 million year-to-date and $17 million over six quarters.

Outlook and guidance

• Expecting another quarter of sequential revenue growth in Q3, with gross margins anticipated to be flat to slightly up as industrial volumes ramp.

• Management expects continued improvement in financial results as operating conditions normalize and productivity initiatives continue.

• Cautiously optimistic about continued stabilization and improvement in the operating environment.

• Sales pipeline remains healthy, with optimism for further growth.