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 - 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]