Quest Resource (QRHC) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue increased 7.6% year-over-year to $64.1 million, driven by new customer wins, wallet share expansions, and volume improvements in both industrial and non-industrial markets.

• Gross profit declined 5.5% year-over-year to $10.4 million, but improved sequentially; gross margin was 16.3%, down from 18.5% last year but up from 15.7% last quarter.

• Adjusted EBITDA for Q2 2026 rose 4.0% year-over-year to $2.8 million, with sequential improvement.

• Net loss widened to $12.2 million, primarily due to an $11.0 million non-cash goodwill impairment.

• Productivity and operational excellence initiatives led to an 11% reduction in SG&A expenses year-over-year and improved cost structure.

Financial highlights

• Q2 2026 revenue: $64.1 million (+7.6% YoY, +4% sequentially); six-month revenue: $125.8 million (–1.7% YoY).

• Gross profit: $10.4 million (–5.5% YoY, +8% sequentially); gross margin: 16.3%.

• Net loss: $12.2 million in Q2 2026 (vs. $2.0 million prior year); net loss per share: $(0.57).

• Adjusted EBITDA: $2.8 million (+4.0% YoY); six-month Adjusted EBITDA: $4.6 million (+8.1% YoY).

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

Outlook and guidance

• Management expects continued sequential revenue growth and improvement in financial results as operating conditions normalize.

• Gross margins anticipated to be flat to slightly up in Q3 as industrial volumes ramp.

• Management expects to remain in compliance with loan covenants and to fund operations for at least the next 12 months.

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