Core Insights - The stock price of the company has experienced a significant decline, falling nearly 80% since the last analysis, with a drop of 20-30% on the first day after the results were announced [1]. Group 1: Investment Philosophy - The investment approach focuses on operational aspects and long-term earnings potential rather than market-driven dynamics [1]. - The strategy emphasizes holding companies for the long term, with most recommendations being holds rather than buys [1]. - The analysis aims to provide valuable information for future investors and introduce skepticism in a generally bullish market [1].

Quest Resource (QRHC) Q2 2025 Earnings Call August 11, 2025 05:00 PM ET Speaker0Good afternoon, ladies and gentlemen, and welcome to the Quest Resource Holding Corporation Second Quarter twenty twenty five Earnings Call. At this time, all lines are in listen only mode. Following the presentation, we will conduct a question and answer session. This call is being recorded on Monday, 08/11/2025. I would now like to turn the conference over to Joel Nynes.Please go ahead.Speaker1Thank you, operator, and thank yo ...

Core Insights - Quest Resource Holding Corporation reported a GAAP net loss of $(2.0) million for Q2 2025, compared to a loss of $(1.5) million in Q2 2024, and a significant improvement from a loss of $(10.4) million in Q1 2025 [4] - Revenue for Q2 2025 was $59.5 million, an 18.6% decrease year-over-year and a 13.0% decrease sequentially from Q1 2025 [4] - The company generated $3.9 million in operating cash flow during Q2 2025 and reduced debt by $6.6 million year-to-date [1][4] Financial Performance - Gross profit for Q2 2025 was $11.0 million, down 18.4% from Q2 2024, but showed a 1.0% increase sequentially from Q1 2025 [4] - Adjusted EBITDA for Q2 2025 was $2.7 million, compared to $5.1 million in Q2 2024 and $1.6 million in Q1 2025 [4] - Year-to-date Adjusted EBITDA was $4.2 million, a 58.7% decrease compared to $10.3 million during the same period of 2024 [4] Operational Initiatives - The company is on track with its Operational Excellence Initiatives, focusing on cash generation, profitability, and process improvement [1][7] - Management has made strategic changes, including reductions and additions to the management team, to address operational issues and client attrition [4][6] - Despite challenges in the industrial sector, the company secured new clients and expanded existing client relationships, particularly in the restaurant and retail markets [8] Market Context - The company faced a host of operational challenges last year, including a slowdown in the industrial sector and difficulties in client retention [4] - Macro uncertainties are causing prospective clients to delay decision-making, impacting growth, but the company continues to add new client opportunities [8]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 Commission file number: 001-36451 Quest Resource Holding Corporation (Exact Name of Registrant as Specified in its Charter) Nevada 51-0665952 (State or other Jurisdiction of Incorporation or Organization) (I.R.S. Employer Identification No.) 3481 Plano Parkway, Suite 100 The Colony, Texas 75056 ...

Exhibit 99.1 Quest Resource Holding Corporation Reports Second Quarter 2025 Financial Results Generated $3.9 million in operating cash flow in the second quarter and reduced debt by $6.6 million year to date Posted sequential improvements in gross profits and adjusted EBITDA Roll out of Operational Excellence Initiatives is on track and continuing with a focus on cash generation, profitability, and process improvement THE COLONY, TX – August 11, 2025 – Quest Resource Holding Corporation (Nasdaq: QRHC) ("Que ...

I N V E S T O R P R E S E N T A T I O N Quest Resource Holding Corporation (NASDAQ: QRHC) 2025 A u g u s t © 2022 Quest Resource Holding Corporation. Copying, publication or redistribution outside of Quest is strictly prohibited. © 2024 Quest Resource Holding Corporation. Copying, publishing or redistributing outside of Quest is strictly prohibited. NATIONAL PROVIDER OF WASTE & RECYCLING SOLUTIONS SEC SAFE HARBOR The statements contained in this Investor Presentation that are not purely historical are forwa ...

Core Viewpoint - Quest Resource Holding Corporation is set to release its second quarter financial results on August 11, 2025, after market close [1]. Group 1: Financial Results Announcement - The financial results for the second quarter ended June 30, 2025, will be announced on August 11, 2025 [1]. - A conference call will be held on the same day at 5:00 PM ET to discuss the financial results and business outlook [2]. - Investors can participate in the call via phone or through a webcast on Quest's investor relations website [2]. Group 2: Webcast and Playback Information - The webcast will include forward-looking information and will be archived for at least 90 days [3]. - A telephonic playback of the conference call will be available approximately 3 hours after the call ends, continuing until August 25, 2025 [3]. Group 3: Company Overview - Quest Resource Holding Corporation is a national provider of waste and recycling services, helping businesses achieve their environmental and sustainability goals [4]. - The company offers expertise across multiple sectors to create client-specific solutions that yield measurable business and sustainability outcomes [4]. - Quest tracks and reports the environmental results of its services, providing actionable data to enhance business operations [4].

Company Performance - Quest Resource reported a quarterly loss of $0.14 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.05, and compared to a loss of $0.03 per share a year ago, indicating a significant earnings surprise of -180% [1] - The company posted revenues of $68.43 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 5.63%, and down from $72.65 million in the same quarter last year [2] - Over the last four quarters, Quest Resource has not surpassed consensus EPS or revenue estimates [2] Stock Performance - Quest Resource shares have declined approximately 61.7% since the beginning of the year, contrasting with the S&P 500's decline of -3.8% [3] - The current Zacks Rank for Quest Resource is 5 (Strong Sell), indicating expectations for the stock to underperform the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.06 on revenues of $75.84 million, and for the current fiscal year, it is $0.21 on revenues of $304.77 million [7] - The trend for estimate revisions ahead of the earnings release has been unfavorable, which could impact future stock performance [6] Industry Context - The Waste Removal Services industry, to which Quest Resource belongs, is currently ranked in the bottom 30% of over 250 Zacks industries, suggesting a challenging environment for the company [8]

Financial Data and Key Metrics Changes - Revenue for the first quarter was $68.4 million, a decrease of 6% year-over-year and down 2% sequentially from the fourth quarter [11] - Gross profit dollars were $10.9 million, a 22% decrease from last year but a 2% increase sequentially from the fourth quarter [13] - SG&A expenses were $11.4 million, an increase of $1.6 million year-over-year and $1.3 million sequentially [16] Business Line Data and Key Metrics Changes - The decrease in revenue was attributed to lower volumes due to client attrition and lower volumes at select larger clients, with client attrition contributing approximately $7 million to the decline [12] - New clients secured during 2024 finished the first quarter at approximately 80% of their anticipated run rate, expected to provide incremental growth in revenue and gross profit [13] Market Data and Key Metrics Changes - The industrial sector showed some weakness, impacting volumes, but other end markets did not exhibit significant changes [53] - The company is seeing increased demand for its services, particularly from prospects that have never used its model before, indicating a robust pipeline [44] Company Strategy and Development Direction - The company is focused on generating cash, improving profitability, lowering debt, and increasing operating efficiency [9] - A cultural shift towards operational excellence is being implemented, emphasizing performance and accountability across the organization [20] - The company aims to improve EBITDA, cash generation, and pay down debt through various initiatives [20] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the company's ability to execute operational improvements and expects steady improvement throughout the year [26] - The company anticipates both top and bottom line growth for 2025, with more meaningful growth expected as the year progresses [27] Other Important Information - The company completed the sale of a non-core part of the RWS business, generating $5 million in cash used to reduce debt [8] - Cash at the end of the first quarter was $1.4 million, with approximately $21 million of available borrowing capacity [17] Q&A Session Summary Question: Any notable KPIs to highlight as you focus on execution moving forward? - Management has started to baseline all processes and identified weaknesses, implementing changes to address these gaps [31] Question: Are you seeing any increase in weakness in your market? - No significant change in market weakness has been observed, but there is hope for strength returning [38] Question: How do you plan to bring down DSO? - Strategies include improving billing efficiency and having ongoing conversations with larger clients to accelerate collections [46][48] Question: What is the timetable to evaluate the initiatives being put in place? - A year from now, the company expects to look very different, with results beginning in Q2 and largely in Q3 and Q4 [70] Question: What caused customer attrition? - Attrition has been mostly related to customers being acquired with different programs in place, with some isolated attrition noted [56] Question: How do bonuses work for employees? - Bonuses are built over an annualized forecast and will be adjusted based on the company's performance throughout the year [60]

Financial Data and Key Metrics Changes - Revenue for the first quarter was $68.4 million, a decrease of 6% year-over-year and down 2% sequentially from the fourth quarter [11] - Gross profit dollars were $10.9 million, a 22% decrease from last year but a 2% increase sequentially from the fourth quarter [13] - SG&A expenses were $11.4 million, an increase of $1.6 million year-over-year and $1.3 million sequentially [15] Business Line Data and Key Metrics Changes - The decrease in revenue was attributed to client attrition and lower volumes at select larger clients, with client attrition contributing approximately $7 million to the decline [12] - New clients secured during 2024 finished the first quarter at approximately 80% of their anticipated run rate, expected to provide incremental growth in revenue and gross profit [13] Market Data and Key Metrics Changes - The company experienced lower volumes in the industrial sector, which may continue to affect volumes for several quarters [12] - Demand for services from existing clients remains strong, with opportunities to expand services in the long term despite current volume decreases [12][26] Company Strategy and Development Direction - The company is focused on generating cash, improving profitability, lowering debt, and increasing operating efficiency [8] - A cultural shift towards operational excellence is being implemented, emphasizing performance and accountability across the organization [20][21] - The company aims to enhance shareholder value through a series of changes in cost structure, management team, and operating philosophy [10] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the potential for growth despite current economic uncertainties, expecting both top and bottom line growth for 2025 [27] - The company is monitoring its markets closely, particularly the industrial sector, and believes there are long-term opportunities with existing clients [26][27] Other Important Information - The company completed the sale of a non-core part of the RWS business, generating $5 million in cash used to reduce debt [7] - Cash at the end of the first quarter was $1.4 million, with approximately $21 million of available borrowing capacity [16] Q&A Session Summary Question: Any notable KPIs to highlight as you focus on execution moving forward? - Management has started to baseline all processes and identified weaknesses, implementing changes to improve operational efficiency [31] Question: Are you seeing any increase in weakness in your end markets? - No significant change in market weakness has been observed, but demand and volumes are slightly down [39] Question: How do you plan to bring down DSO? - Strategies include improving billing efficiency and increasing visibility into missing invoices [47][49] Question: Any notable changes in end customer behavior or volumes? - No significant changes outside the industrial segment; there has been an uptick in demand for services [54] Question: What caused customer attrition? - Attrition has been primarily related to customers being acquired with different programs in place [57] Question: What is the expected timeline for evaluating the impact of new initiatives? - A year from now, the company expects to look significantly different, with results beginning in Q2 and more substantial impacts in Q3 and Q4 [71] Question: How much of the revenue decline is due to existing customers versus new ones? - The majority of the revenue decline is attributed to new clients added throughout 2024 [95]