Quest Resource’s second quarter saw notable revenue growth and a positive market response, driven by ongoing expansion in non-industrial markets and improved customer diversification. Management cited contributions from recent customer wins, especially in food service, retail, and automotive sectors, as key drivers. CEO Perry Moss emphasized, “We returned to top-line revenue and adjusted EBITDA growth compared to both the prior year and the prior quarter,” highlighting the benefit of wallet share expansions and stabilizing industrial volumes. The company’s operational initiatives, including cost controls and process optimization, also played an important role in results.
Is now the time to buy QRHC? Find out in our full research report (it’s free for active Edge members).
Quest Resource (QRHC) Q2 CY2026 Highlights:
- Revenue: $64.07 million vs analyst estimates of $63.55 million (7.6% year-on-year growth, 0.8% beat)
- EPS (GAAP): -$0.57 vs analyst estimates of -$0.07 (significant miss)
- Adjusted EBITDA: $2.79 million vs analyst estimates of $2.4 million (4.4% margin, relatively in line)
- Operating Margin: 1.8%, up from 0.7% in the same quarter last year
- Market Capitalization: $29.95 million
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Quest Resource’s Q2 Earnings Call
- Aaron Spychalla (Craig-Hallum) asked for details on the size and growth prospects of recent automotive customer wallet share wins. CEO Perry Moss explained these are seven-figure opportunities with potential for further expansion and higher initial margins.
- Aaron Spychalla (Craig-Hallum) inquired about the sustainability of wallet share pipeline growth and whether Quest remains open to industrial sector expansions. Moss confirmed ongoing efforts in both areas, highlighting the importance of diversification.
- Aaron Spychalla (Craig-Hallum) questioned the expected EBITDA conversion from gross profit given operational improvements. Moss stated conversion rates would be slightly higher for wallet share opportunities due to lower onboarding costs.
- Aaron Spychalla (Craig-Hallum) asked for an update on operational initiatives and areas of focus moving forward. Moss pointed to standardized processes, improved training, and a 20% reduction in SG&A as evidence of progress.
- No additional analyst questions were asked on the call.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will monitor (1) the pace of new customer additions and wallet share expansions in non-industrial end-markets, (2) continued improvements in operational efficiency and SG&A leverage, and (3) stabilization or further recovery within the industrial portfolio. Additional attention will be paid to Quest’s cash generation and progress on debt reduction targets.
Quest Resource currently trades at $1.42, up from $1.27 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).
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