Higher sequential volumes from Industrial customers and continued growth from non-Industrial portfolio drove 5% revenue growth and 6% gross profit growth compared to prior quarter
Improved revenue and gross profit performance throughout the quarter
Added a large franchisee in the quick-service restaurant industry in April, which launched in May
First Quarter 2026 Highlights
- Revenue was
$61.7 million , a 9.8% decrease compared with the first quarter of 2025, and a 4.8% increase from the fourth quarter of 2025. - Gross profit was
$9.7 million , an 11.6% decrease compared with the first quarter of 2025, and a 6.1% increase from the fourth quarter of 2025. - Gross margin was 15.7% of revenue, compared with 16.0% for the first quarter of 2025, and 15.5% for the fourth quarter of 2025.
- GAAP net loss was
$2.3 million , compared with a net loss of$10.4 million for the first quarter of 2025 (which includes a$4.4 million loss on the sale of assets and a$1.7 million impairment loss), and a net loss of$1.7 million for the fourth quarter of 2025. - GAAP net loss per basic and diluted share attributable to common stockholders was
$(0.11) , compared with$(0.50) for the first quarter of 2025 and$(0.08) for the fourth quarter of 2025. - Adjusted EBITDA was
$1.8 million , compared with$1.6 million for the first quarter of 2025, and$2.1 million for the fourth quarter of 2025.
Recent Highlights
- Successfully onboarded recent new customer wins and wallet share expansions with existing customers, all of which were fully contributing to financial results by quarter end.
- Added a large franchisee in the quick-service restaurant industry in April, which launched in May.
- Utilized recently refinanced ABL credit facility with
Texas Capital Bank to pay down$2.0 million of higher rate term debt, reducing expected interest expense.
“Throughout the first quarter, we experienced steady improvement, which is consistent with the seasonal acceleration,” said
Moss added, “Our sales pipeline also remains healthy as we continue to advance meaningful opportunities for both new sales and wallet share expansions. Overall, the operating environment remains difficult, though we are cautiously optimistic given improvements achieved in the quarter, and we remain acutely focused on elements within our control.”
First Quarter 2026 Earnings Conference Call and Webcast
Quest will host a conference call on
About
Quest is a national provider of waste and recycling services that empower larger businesses to excel in achieving their environmental and sustainability goals and responsibilities. Quest delivers focused expertise across multiple industry sectors to build single-source, customer-specific solutions that generate quantifiable business and sustainability results. Addressing a wide variety of waste streams and recyclables, Quest provides information and data that tracks and reports the environmental results of Quest’s services, gives actionable data to improve business operations, and enables Quest’s customers to excel in their business and sustainability responsibilities. For more information, visit https://questrmg.com/.
Reconciliation of
In this press release, the non-GAAP financial measure “Adjusted EBITDA” is presented. From time-to-time, Quest considers and uses supplemental measures of operating performance in order to provide an improved understanding of underlying performance trends. Quest believes it is useful to review, as applicable, both (1) GAAP measures that include (i) depreciation and amortization, (ii) interest expense, (iii) stock-based compensation expense, (iv) income tax expense, and (v) certain other adjustments, and (2) non-GAAP measures that exclude such items. Quest presents this non-GAAP measure because it considers it an important supplemental measure of Quest's performance. Quest’s definition of this adjusted financial measure may differ from a similar measure used by others. Quest believes this measure facilitates operating performance comparisons from period to period by eliminating potential differences caused by the existence and timing of certain expense items that would not otherwise be apparent on a GAAP basis. This non-GAAP measure has limitations as an analytical tool and should not be considered in isolation or as a substitute for the Company’s GAAP measures. (See attached table “Reconciliation of Net Loss to Adjusted EBITDA”).
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, which provides a “safe harbor” for such statements in certain circumstances. The forward-looking statements include, but are not limited to, our expectation that as macroeconomic conditions improve and lend incremental visibility, we may execute similar voluntary paydowns of our debt going forward as appropriate, and our expectation that these measures, along with our focus on continuous improvement, could improve our cash cycle, strengthen our balance sheet, and provide incremental financial flexibility as the operating landscape improves. Actual events or results could differ materially from those discussed in the forward-looking statements as a result of various factors, including, but not limited to, competition in the environmental services industry, the impact of the current economic environment, interruptions to supply chains, commodity price fluctuations, and extended shut down of businesses, and other factors discussed in greater detail in our filings with the Securities and Exchange Commission (“SEC”), including our Annual Report on Form 10-K for the year ended
Investor Relations Contact:
QRHC@alpha-ir.com
312-445-2870
| Financial Tables Follow STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share amounts) | ||||||||
| Three Months Ended | ||||||||
| 2026 | 2025 | |||||||
| Revenue | $ | 61,735 | $ | 68,430 | ||||
| Cost of revenue | 52,070 | 57,499 | ||||||
| Gross profit | 9,665 | 10,931 | ||||||
| Operating expenses: | ||||||||
| Selling, general, and administrative | 8,389 | 11,412 | ||||||
| Depreciation and amortization | 1,045 | 1,543 | ||||||
| (Gain) loss on sale of assets, net | (11 | ) | 4,430 | |||||
| Impairment loss | — | 1,707 | ||||||
| Total operating expenses | 9,423 | 19,092 | ||||||
| Operating income (loss) | 242 | (8,161 | ) | |||||
| Interest expense | (2,050 | ) | (2,267 | ) | ||||
| Loss on extinguishment of debt | (488 | ) | — | |||||
| Loss before taxes | (2,296 | ) | (10,428 | ) | ||||
| Income tax expense (benefit) | 22 | (22 | ) | |||||
| Net loss | $ | (2,318 | ) | $ | (10,406 | ) | ||
| Net loss per share applicable to common shareholders | ||||||||
| Basic and diluted | $ | (0.11 | ) | $ | (0.50 | ) | ||
| Weighted average number of common shares outstanding | ||||||||
| Basic and diluted | 21,197 | 20,859 | ||||||
| RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA (Unaudited) (In thousands) | ||||||||
| Three Months Ended | ||||||||
| 2026 | 2025 | |||||||
| Net loss | $ | (2,318 | ) | $ | (10,406 | ) | ||
| Depreciation and amortization | 1,208 | 1,746 | ||||||
| Interest expense | 2,050 | 2,267 | ||||||
| Stock-based compensation expense | 388 | 662 | ||||||
| (Gain) loss on sale of assets, net | (11 | ) | 4,430 | |||||
| Impairment loss | — | 1,707 | ||||||
| Loss on extinguishment of debt | 488 | — | ||||||
| Other adjustments | (35 | ) | 1,171 | |||||
| Income tax expense (benefit) | 22 | (22 | ) | |||||
| Adjusted EBITDA | $ | 1,792 | $ | 1,555 | ||||
| BALANCE SHEETS (In thousands, except per share amounts) | |||||||
| 2026 | 2025 | ||||||
| (Unaudited) | |||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 1,139 | $ | 1,014 | |||
| Accounts receivable, less allowance for doubtful accounts of | 52,055 | 49,010 | |||||
| Prepaid expenses and other current assets | 1,260 | 1,174 | |||||
| Total current assets | 54,454 | 51,198 | |||||
| 81,065 | 81,065 | ||||||
| Intangible assets, net | 7,002 | 7,650 | |||||
| Property and equipment, net, and other assets | 5,460 | 5,638 | |||||
| Total assets | $ | 147,981 | $ | 145,551 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable and accrued liabilities | $ | 41,906 | $ | 38,384 | |||
| Other current liabilities | 65 | 128 | |||||
| Current portion of notes payable | 540 | 1,015 | |||||
| Total current liabilities | 42,511 | 39,527 | |||||
| Notes payable, net | 63,414 | 63,999 | |||||
| Other long-term liabilities | 3,394 | 1,513 | |||||
| Total liabilities | 109,319 | 105,039 | |||||
| Commitments and contingencies | |||||||
| Stockholders’ equity: | |||||||
| Preferred stock, | — | — | |||||
| Common stock, | 21 | 21 | |||||
| Additional paid-in capital | 181,452 | 180,984 | |||||
| Accumulated deficit | (142,811 | ) | (140,493 | ) | |||
| Total stockholders’ equity | 38,662 | 40,512 | |||||
| Total liabilities and stockholders’ equity | $ | 147,981 | $ | 145,551 | |||
