Core Insights - Long Cast Advisers reported a cumulative net return improvement of 4% in Q3 2025, with a total cumulative return of 266% net of fees since inception in November 2015, translating to a 14% CAGR [1] Company Overview: Quest Resource Holding Corporation (NASDAQ:QRHC) - Quest Resource Holding Corporation provides waste and recycling services and is headquartered in The Colony, Texas [2] - The stock experienced a one-month return of 29.66%, but has lost 73.82% of its value over the past 52 weeks, closing at $1.88 per share with a market capitalization of $39.236 million on November 27, 2025 [2] Performance Analysis - Year-to-date, Quest Resource Holding Corporation has been a significant detractor for Long Cast Advisers' portfolio, leading to its removal from the top-five holdings [3] - The company reported revenue of $63.3 million in Q3 2025, which is a 13% decrease compared to Q3 2024 but a 6.4% increase from Q2 2025 [4] Management and Valuation Concerns - The company has improved management and operational processes, making it a more reasonable investment despite its past performance [3] - There is a notable discrepancy between $80 million in goodwill and a $35 million market capitalization, which is expected to trigger an annual impairment test [3] Hedge Fund Interest - Quest Resource Holding Corporation is not among the 30 most popular stocks among hedge funds, with only 8 hedge fund portfolios holding the stock at the end of Q3 2025, down from 12 in the previous quarter [4]

Core Insights - Quest Resource Holding Corporation reported a revenue of $63.3 million for Q3 2025, reflecting a 13.0% decrease compared to Q3 2024 but a 6.4% increase from Q2 2025 [5] - The company achieved an adjusted EBITDA of $2.9 million, up from $2.5 million in Q3 2024, indicating operational improvements [5] - Year-to-date, the company reduced its debt by $11.2 million, representing a 14% reduction, and improved operating cash flow by 45% to $5.7 million in Q3 2025 [5][6] Financial Performance - Revenue for the nine months ended September 30, 2025, was $191.3 million, a 12.5% decrease from the same period in 2024 [5] - Gross profit for Q3 2025 was $11.5 million, a 2.0% decrease from Q3 2024, but a 3.9% increase from Q2 2025 [5] - The GAAP net loss for Q3 2025 was $(1.3) million, an improvement from a net loss of $(3.4) million in Q3 2024 [5] Strategic Initiatives - The company is implementing strategic actions to enhance operational efficiencies, which are beginning to show positive results in financial performance [4] - Quest's CEO highlighted the effectiveness of Operational Excellence initiatives in improving customer visibility and sales productivity [6] - The company signed a new contract in the food products sector, contributing to organic growth [5] Market Position - Quest is positioned as a national leader in environmental waste and recycling services, focusing on helping businesses meet their sustainability goals [8] - The company aims to provide tailored solutions across various industry sectors, enhancing its competitive edge in the market [8]

Group 1 - Quest Resource is expected to report earnings with a projected revenue decline of 17.8% year on year to $59.83 million, contrasting with a 3.3% increase in the same quarter last year [2][3] - Last quarter, Quest Resource missed analysts' revenue expectations by 17.9%, reporting revenues of $59.54 million, which is an 18.6% decrease year on year [1][3] - Analysts have generally reconfirmed their estimates for Quest Resource over the last 30 days, indicating expectations for the company to maintain its course heading into earnings [3] Group 2 - In the waste management segment, peers like Montrose and Waste Connections reported positive results, with Montrose achieving year-on-year revenue growth of 25.9% and Waste Connections reporting a 5.1% increase [4] - Positive sentiment in the waste management sector is reflected in an average share price increase of 2.2% over the last month, with Quest Resource's shares up 10.5% during the same period [5] - The average analyst price target for Quest Resource is $3.08, significantly higher than its current share price of $1.47 [5]

Core Viewpoint - Quest Resource Holding Corporation is set to release its third quarter financial results on November 10, 2025, after market close, indicating ongoing transparency and communication with investors [1]. Financial Results Announcement - The financial results for the third quarter ended September 30, 2025, will be announced on November 10, 2025, after market close [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]. Conference Call Details - Investors can participate in the live call by dialing 1-800-717-1738 or 1-646-307-1865 [2]. - The call will also be accessible through a listen-only webcast on the investor relations section of Quest's website [2]. Webcast and Playback Information - The webcast may 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, accessible until November 24, 2025 [3]. Company Overview - Quest Resource Holding Corporation is a national provider of waste and recycling services, focusing on helping larger businesses achieve their environmental and sustainability goals [4]. - The company offers tailored solutions across various industry sectors, providing actionable data to improve business operations and sustainability outcomes [4].

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]

Core Viewpoint - The Massachusetts Congressional delegation is urging Republic Services to resume negotiations with striking sanitation workers to end a 28-day work stoppage, which has led to significant delays in waste collection across multiple communities [3][4][5]. Group 1: Strike Details - The strike by Teamsters Local 25 against Republic Services has entered its fifth week, with no new bargaining sessions scheduled since July 18 [4][6]. - Over 400 members of Teamsters Local 25 are involved in delivering essential waste and recycling services, emphasizing the importance of competitive wages and comprehensive benefits for workers [5][6]. Group 2: Community Impact - Many cities and towns in North Shore and Greater Boston are experiencing collection delays and gaps in trash, recycling, and yard waste pickup due to the strike [4][7]. - Local officials are actively communicating with Republic Services to address missed pickups and are working to restore recycling services as soon as possible [7]. Group 3: Legal Actions - Officials from six cities and towns have filed a complaint in Salem Superior Court seeking health violation citations and additional resources from Republic Services, citing the company's failure to adequately manage waste collection during the strike [8].

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].

Core Insights - Quest Resource Holding Corporation reported first quarter financial results that were in line with expectations, reflecting temporary cost increases and not yet the impact of performance-focused initiatives [4][6] - The company completed the sale of a non-core business segment for $5 million, which was utilized to pay down debt, and anticipates annual savings of $3 million from cost reductions and headcount decreases [1][6] - The company is focused on enhancing its performance culture, implementing short-term initiatives, and developing long-term efficiency programs to improve financial performance [4][5] Financial Performance - Revenue for the first quarter of 2025 was $68.4 million, a decrease of 5.8% compared to the same period in 2024 [6] - Gross profit was $10.9 million, down 22.1% year-over-year, resulting in a gross margin of 16.0%, compared to 19.3% in the first quarter of 2024 [6] - The GAAP net loss per share was $(0.50), compared to $(0.03) in the first quarter of 2024, with an adjusted net loss per diluted share of $(0.14) compared to adjusted net income of $0.08 in the prior year [6][15] Operational Highlights - The company recognized a non-cash loss on the sale of assets of $4.4 million and an impairment charge of $1.7 million on intangible assets [6] - Adjusted EBITDA for the first quarter was $1.6 million, down from $5.1 million in the same quarter of 2024 [6][14] - The company has amended agreements with existing lenders to enhance financial flexibility [1][6] Strategic Initiatives - Quest is committed to generating cash, increasing profitability, and reducing debt, with ongoing efforts to onboard blue-chip clients and improve operational efficiencies [4][5] - The company has initiated short-term initiatives and is developing long-term efficiency programs aimed at increasing earnings and cash generation [6][5] - A new CEO and Senior VP of Operations have been appointed, both with extensive industry experience focused on enhancing operational performance [6]