Revenue of
Secured four new share-of-wallet wins, including a significant share-of-wallet win with a large national automotive parts retailer
Productivity initiatives drove an 11% reduction in SG&A compared to the prior year period
Strong operating cash flow of
Second Quarter 2026 Highlights
- Revenue was
$64.1 million , a 7.6% increase compared with the second quarter of 2025, and a 3.8% increase from the first quarter of 2026. - Gross profit was
$10.4 million , a 5.5% decrease compared with the second quarter of 2025, and a 7.9% increase from the first quarter of 2026. - Gross margin was 16.3% of revenue, compared with 18.5% of revenue for the second quarter of 2025, and 15.7% of revenue for the first quarter of 2026.
- GAAP net loss was
$(12.2) million , which included a non-cash goodwill impairment loss of$(11.0) million , compared with a net loss of$(2.0) million for the second quarter of 2025, and a net loss of$(2.3) million for the first quarter of 2026. - GAAP net loss per basic and diluted share attributable to common stockholders was
$(0.57) , compared with$(0.09) for the second quarter of 2025 and$(0.11) for the first quarter of 2026. - Adjusted EBITDA was
$2.8 million , compared with$2.7 million for the second quarter of 2025 and$1.8 million for the first quarter of 2026.
Recent Highlights
- Second quarter was driven by strong contributions from new customer wins and wallet share expansions that were onboarded during the second half of 2025 and the first quarter of 2026.
- Successfully launched a large franchisee customer in the quick-service restaurant industry in May with minimal start-up costs.
- Secured four new share-of-wallet wins, including a significant share-of-wallet win with a large national automotive parts retailer.
- Productivity initiatives and cost optimization drove strong operating cash flow of
$4.5 million for the second quarter. - Utilized funds from further progress on working capital initiatives to pay down early another
$2.0 million of higher rate term debt, reducing future interest expense.
“We returned to top-line and Adjusted EBITDA growth during the second quarter, both sequentially and compared to the prior year, supported by the growing contributions of recent customer wins and wallet share expansions, stabilizing volumes from our Industrial customers and achieved ongoing efficiencies across the business,” said
Second 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 belief that our sales pipeline remains healthy, our expectation that the operating landscape is slowly improving, and our expectation that we will be able to deliver improved financial results as conditions normalize. 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 | $ | 64,069 | $ | 59,540 | |||||
| Cost of revenue | 53,639 | 48,503 | |||||||
| Gross profit | 10,430 | 11,037 | |||||||
| Operating expenses: | |||||||||
| Selling, general, and administrative | 8,246 | 9,295 | |||||||
| Depreciation and amortization | 1,059 | 1,299 | |||||||
| Loss on sale of assets, net | 88 | 61 | |||||||
| Impairment loss | 11,000 | — | |||||||
| Total operating expenses | 20,393 | 10,655 | |||||||
| Operating (loss) income | (9,963 | ) | 382 | ||||||
| Interest expense | (2,208 | ) | (2,375 | ) | |||||
| Loss before taxes | (12,171 | ) | (1,993 | ) | |||||
| Income tax expense (benefit) | 46 | (22 | ) | ||||||
| Net loss | $ | (12,217 | ) | $ | (1,971 | ) | |||
| Net loss per share applicable to common shareholders | |||||||||
| Basic and diluted | $ | (0.57 | ) | $ | (0.09 | ) | |||
| Weighted average number of common shares outstanding | |||||||||
| Basic and diluted | 21,334 | 20,933 | |||||||
| RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA (Unaudited) (In thousands) | |||||||||
| Three Months Ended | |||||||||
| 2026 | 2025 | ||||||||
| Net loss | $ | (12,217 | ) | $ | (1,971 | ) | |||
| Depreciation and amortization | 1,218 | 1,500 | |||||||
| Interest expense | 2,208 | 2,375 | |||||||
| Stock-based compensation expense | 357 | 533 | |||||||
| Loss on sale of assets, net | 88 | 61 | |||||||
| Impairment loss | 11,000 | — | |||||||
| Other adjustments | 92 | 208 | |||||||
| Income tax expense (benefit) | 46 | (22 | ) | ||||||
| Adjusted EBITDA | $ | 2,792 | $ | 2,684 | |||||
| BALANCE SHEETS (In thousands, except per share amounts) | ||||||||
| 2026 | 2025 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 1,023 | $ | 1,014 | ||||
| Accounts receivable, less allowance for doubtful accounts of | 49,533 | 49,010 | ||||||
| Prepaid expenses and other current assets | 1,726 | 1,174 | ||||||
| Total current assets | 52,282 | 51,198 | ||||||
| 70,065 | 81,065 | |||||||
| Intangible assets, net | 6,292 | 7,650 | ||||||
| Property and equipment, net, and other assets | 5,638 | 5,638 | ||||||
| Total assets | $ | 134,277 | $ | 145,551 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued liabilities | $ | 43,801 | $ | 38,384 | ||||
| Other current liabilities | 60 | 128 | ||||||
| Current portion of notes payable | 540 | 1,015 | ||||||
| Total current liabilities | 44,401 | 39,527 | ||||||
| Notes payable, net | 59,365 | 63,999 | ||||||
| Other long-term liabilities | 3,725 | 1,513 | ||||||
| Total liabilities | 107,491 | 105,039 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ equity: | ||||||||
| Preferred stock, | — | — | ||||||
| Common stock, | 21 | 21 | ||||||
| Additional paid-in capital | 181,793 | 180,984 | ||||||
| Accumulated deficit | (155,028 | ) | (140,493 | ) | ||||
| Total stockholders’ equity | 26,786 | 40,512 | ||||||
| Total liabilities and stockholders’ equity | $ | 134,277 | $ | 145,551 | ||||
