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]

Quest Resource (QRHC) Q1 2025 Earnings Call May 12, 2025 05:00 PM ET Company Participants Dave Mossberg - Founder & CEODaniel Friedberg - ChairmanBrett Johnston - Chief Financial OfficerPerry Moss - President & CEONelson Obus - Co-Founder & CIOGreg Kitt - General Partner - InvestmentsGeorge Melas-Kyriazi - President Conference Call Participants Aaron Spychalla - Research AnalystGerry Sweeney - Managing Director, Senior Research AnalystOwen Rickert - Senior Research Analyst Operator Good day, everyone, and w ...

Quest Resource (QRHC) Q1 2025 Earnings Call May 12, 2025 05:00 PM ET Speaker0 Good day, everyone, and welcome to Quest Resource Holding Corporation First Quarter twenty twenty five Earnings Call. At this time, all participants have been placed on a listen only mode, and we will open the floor for your questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, David Mossberg, Investor Relations representative. Sir, the floor is yours. Speaker1 Thank you, Matthew ...

Financial Performance - Revenue for Q1 2025 was $68.4 million, a decrease of $4.2 million, or 5.8%, compared to $72.7 million in Q1 2024[82] - Gross profit for Q1 2025 was $10.9 million, with a gross profit margin of 16.0%, down from $14.0 million and 19.3% in Q1 2024[85] - Net loss for Q1 2025 was $10.4 million, compared to a net loss of $0.7 million in Q1 2024, resulting in a loss per share of $(0.50) versus $(0.03) in the prior year[96][98] - Adjusted net income (loss) for Q1 2025 was $(2.9) million, a decrease from $1.7 million in Q1 2024[103] - Reported net loss for Q1 2025 was $(10.4) million, compared to $(0.7) million in Q1 2024[104] - Adjusted net income (loss) per diluted share for Q1 2025 was $(0.14), down from $0.08 in Q1 2024[104] Operating Expenses - Operating expenses increased to $19.1 million in Q1 2025 from $12.2 million in Q1 2024, primarily due to higher selling, general, and administrative expenses[88] - Adjusted EBITDA for Q1 2025 decreased 69.6% to $1.6 million from $5.1 million in Q1 2024[100] - The company recorded a $1.7 million impairment charge for certain customer relationship intangible assets in Q1 2025[92] Revenue Changes - New clients contributed approximately $11.0 million in revenue, while lost customers accounted for a $7.0 million decline in revenue[83] - The company experienced a $4.4 million loss on the sale of assets related to its mall business, with a total selling price of approximately $5.0 million[92] Cash Flow and Working Capital - Working capital as of March 31, 2025, was $21.6 million, down from $30.7 million as of December 31, 2024[105] - Net cash used in operating activities for Q1 2025 was $(1.1) million, an improvement from $(1.7) million in Q1 2024[109] - Cash provided by investing activities for Q1 2025 was $4.5 million, primarily from the sale of business assets[112] - Net cash used in financing activities for Q1 2025 was $(2.5) million, primarily due to repayments of notes payable[113] - Company has $1.4 million in cash and cash equivalents and $45.0 million available under its ABL Facility as of March 31, 2025[107] - Company believes existing cash and expected operational cash flow will be sufficient to fund operations for the next 12 months[107] - Company has no off-balance sheet debt or similar obligations[118] Interest and Cost Management - Interest expense decreased to $2.3 million in Q1 2025 from $2.5 million in Q1 2024, primarily due to lower interest rates[93] - The company anticipates realizing cost savings from headcount reductions beginning in Q2 2025 as part of operational efficiency initiatives[89]

Exhibit 99.1 Quest Resource Holding Corporation Reports First Quarter 2025 Financial Results First Quarter 2025 Financial Highlights Recent Highlights: "First quarter financial results were in-line with our expectations and indicative of the temporary increase in costs and other factors we described last quarter, but not yet reflective of the performance-focused actions we are developing and implementing to improve operating efficiencies and financial performance. Through the decisive actions of our team, w ...

Operating performance in line with expectations Sale of non-core business for $5 million used to pay down debt Savings of $3 million annually through elimination of costs associated with sold non-core business, and reduction of headcount Amended agreements with existing lenders to provide additional financial flexibility Focus on performance culture, implementation of short-term initiatives, and development of long-term efficiency programs are on track THE COLONY, Texas, May 12, 2025 (GLOBE NEWSWIRE) -- Q ...

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, client-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 Qu ...

THE COLONY, Texas, April 04, 2025 (GLOBE NEWSWIRE) -- Quest Resource Holding Corporation (NASDAQ:QRHC) ("Quest" or the "Company"), a national leader in environmental waste and recycling services, today announced the sale of its tenant-direct portion of the RWS commercial property management business. "We have successfully completed the sale of a portion of RWS, which was a non-core line of business and a small part of our overall portfolio. The sale enables us to increase our focus on our core portfolio of ...

Financial Data and Key Metrics Changes - Revenue for Q4 2024 was $70 million, up 1% year-over-year but down 4% sequentially from Q3 [27] - Gross profit dollars decreased by 6.7% year-over-year and 8.3% sequentially, totaling $10.7 million [33] - Adjusted EBITDA for Q4 2024 would have been approximately $3.2 million, excluding non-cash adjustments [38] Business Line Data and Key Metrics Changes - New clients secured during 2024 generated approximately two-thirds of their anticipated quarterly revenue run rate during Q4 [29] - Client attrition was primarily related to the mall and shopping center sector, which the company has decided to exit [31] - The company expects to realize $15 million in net incremental revenue from new client wins achieved during 2024 [32] Market Data and Key Metrics Changes - Weak market conditions in the industrial end markets are expected to continue impacting volumes for at least the next two quarters [30] - The company noted that the relationship with industrial clients remains strong, with opportunities to add services in the long term [30] Company Strategy and Development Direction - The company is focused on reducing costs, implementing process improvements, and increasing accountability to enhance performance [12] - A new operational leadership team has been established to drive operational excellence and improve workflow efficiency [61] - The company is committed to maintaining a solid balance sheet and prioritizing capital allocation towards debt repayment [64] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that performance over the last couple of years has been unacceptable and emphasized the need for operational excellence [50] - The company expects to show both top and bottom-line growth in 2025, with improvements anticipated in the second half of the year [65] - Management is optimistic about the future, citing a robust pipeline and strong client referrals [64] Other Important Information - The company has refinanced its debt, reducing interest expenses by approximately $1 million annually [45] - An impairment loss of $5.5 million was recognized related to the sale of client contracts for the mall and shopping center portion of the business [43] Q&A Session Summary Question: Can you talk about the vendor management system and its rollout? - The vendor management program is substantially complete, with ongoing improvements and expected cost savings flowing through [71][72] Question: Is the attrition stabilizing? - Yes, most attrition was related to the mall business and M&A activity, and the company believes client stickiness remains strong [80] Question: What is the outlook for the industrial market? - The company expects challenges in the industrial market for the next couple of quarters but sees signs of optimism for a pickup in the second half of the year [78] Question: How is the sales pipeline looking? - The sales pipeline has grown significantly, and the company remains bullish on future deal flow [84] Question: What are the expected proceeds from the sale of the RWS tenant billing business? - The business is a non-contributor, and while specific proceeds cannot be disclosed yet, the sale is expected to improve operational focus [88] Question: What is the focus on M&A in the near term? - The company is focused on operational improvements and debt repayment, with M&A being a lower priority for the immediate future [126] Question: What does top and bottom-line growth in 2025 mean? - The company expects growth over 2024 figures, particularly in revenue, gross profit, and adjusted EBITDA [134]

Financial Data and Key Metrics Changes - Revenue for Q4 2024 was $70 million, up 1% year-over-year but down 4% sequentially from Q3 2024 [27] - Gross profit dollars decreased by 6.7% year-over-year and 8.3% sequentially, totaling $10.7 million [33] - Adjusted EBITDA for Q4 2024 would have been approximately $3.2 million, excluding non-cash adjustments [38] Business Line Data and Key Metrics Changes - New clients secured during 2024 generated approximately two-thirds of their anticipated quarterly revenue run rate during Q4 2024 [29] - Client attrition was primarily related to the mall and shopping center sector, which the company has decided to exit [31] - The company expects to realize $15 million in net incremental revenue from new client wins achieved during 2024 [32] Market Data and Key Metrics Changes - Weak market conditions in the industrial end markets are expected to continue impacting volumes for at least the next two quarters [30] - The company has experienced uncharacteristic client attrition, with a third related to the mall business [31][58] Company Strategy and Development Direction - The company is focused on reducing costs, implementing process improvements, and increasing accountability to enhance performance [12] - A new operational leadership team has been established to drive operational excellence and efficiency [61] - The company is committed to maintaining a solid balance sheet and prioritizing capital allocation towards debt repayment [64] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that performance over the last couple of years has been unacceptable and is committed to achieving operational excellence [50][58] - The company expects to show both top and bottom-line growth in 2025, with improvements anticipated in the second half of the year [65] - Management is optimistic about the future, citing a robust pipeline and strong client referrals [9][64] Other Important Information - The company has refinanced its debt, reducing interest expenses by approximately $1 million annually [45] - An impairment loss of $5.5 million was recognized related to the sale of client contracts for the mall business [43] Q&A Session Summary Question: Can you talk about the vendor management system and its rollout? - The vendor management program is substantially complete, with ongoing improvements and expected cost reductions in Q1 [71][72] Question: Is the attrition stabilizing? - Yes, most attrition was related to the mall business and M&A activity, and the company is seeing signs of stabilization [80] Question: What is the outlook for the industrial market? - The industrial market is expected to face challenges for the next couple of quarters, but there are signs of potential recovery in the second half of the year [78] Question: How is the sales pipeline looking? - The sales pipeline has grown significantly, and the company remains optimistic about future deal flow [84] Question: What are the expectations regarding the sale of the RWS tenant billing business? - The sale is expected to close soon, and it is not anticipated to have a material impact on the bottom line [88] Question: How does the company view M&A in the near term? - The focus is currently on operational improvements and debt repayment, with M&A not being a priority at this time [126] Question: What are the expectations for top and bottom-line growth in 2025? - The company expects growth in both revenue and EBITDA, with improvements anticipated as operational initiatives take effect [135][137]