Quest Resource 2025 Q3 Earnings 60.2% Net Loss Reduction

Quest Resource (QRHC) reported fiscal 2025 Q3 earnings on Nov 11, 2025, with revenue declining 13.0% year-over-year to $63.34 million but exceeding estimates by $3.51 million. The company narrowed its net loss to $1.35 million, a 60.2% improvement from $3.39 million in 2024 Q3. Despite a $0.02 non-GAAP EPS miss, management highlighted sequential operational progress and debt reduction of $4.6 million in Q3.

Revenue

Quest Resource’s total revenue for Q3 2025 fell to $63.34 million, a 13.0% decline from $72.77 million in the prior-year period. Services revenue accounted for the bulk of the top line at $60.24 million, while product sales and other income totaled $3.10 million. The drop was attributed to divested mall-related business and weaker industrial sector demand, though sequential growth of 6.4% from Q2 provided some relief.

Earnings/Net Income

The company reported a net loss of $1.35 million in Q3 2025, representing a 60.2% reduction compared to the $3.39 million loss in 2024 Q3. On a per-share basis, losses narrowed to $0.06 from $0.16, reflecting improved operational efficiency. While the non-GAAP EPS of -$0.02 missed estimates by $0.01, the significant reduction in losses underscores progress in cost management and margin stabilization.

Price Action

Quest Resource’s stock surged 8.03% in the latest trading day, 5.71% for the week, and 11.28% month-to-date. The post-earnings rally followed a 2.76% after-hours dip due to the EPS miss.

Post-Earnings Price Action Review

The stock’s post-earnings performance was mixed, with immediate volatility driven by the EPS shortfall but broader optimism from sequential revenue growth and debt reduction. Investors reacted positively to management’s emphasis on operational improvements, including a 200-basis-point gross margin expansion and $5.7 million in cash from operations. However, the EPS miss and industrial sector challenges tempered enthusiasm, leading to a short-term pullback before resuming its upward trend.

CEO Commentary

CEO Perry W. Moss highlighted “solid third quarter” results despite a challenging environment, crediting Operational Excellence initiatives for enhanced customer visibility and sales productivity. He emphasized progress in client onboarding and confidence in executing the “Quest value proposition” as macroeconomic conditions normalize.

Guidance

The company expects continued operational improvements and sustained momentum through 2025, aligning with strategic priorities of debt reduction and margin expansion. Forward-looking statements remain non-specific but underscore confidence in organic growth as industrial volumes recover.

Additional News

In the three weeks following Nov 11, 2025, Quest Resource announced expanded vendor partnerships and a subscription-based data portal to monetize its waste management insights. The company also reiterated its focus on non-industrial markets, including retail and hospitality, to diversify revenue streams. Additionally, management outlined plans to accelerate share-of-wallet initiatives with existing clients, aiming to boost service offerings and gross profit.

Quest Resource’s strategic pivot toward non-industrial sectors and digital monetization has drawn attention from analysts, who note its potential to mitigate industrial sector volatility. The company’s recent vendor renegotiations and process optimizations have also been cited as catalysts for long-term margin stability.

Quest Resource Holding Corporation (QRHC)

NASDAQ: QRHC | Market Cap: $30.03M | P/E Ratio: 21

Key Metrics (Q3 2025):

• Revenue: $63.34M (-13.0% Y/Y)

• Net Loss: -$1.35M (60.2% improvement)

• Cash from Operations: $5.7M

• Debt Reduction: $4.6M

Analyst Consensus (12-Month Outlook):

• EPS Estimate: $0.02

• Revenue Estimate: $62.76M

• Zacks Rank: #3 (Hold)

Risks to Watch:

• Industrial sector headwinds

• Margin pressures from client expansion

• High debt leverage

Investor Takeaway:

Quest Resource’s operational turnaround and debt reduction efforts have improved its financial flexibility. While industrial demand remains soft, the company’s focus on non-industrial markets and process optimization positions it for gradual recovery. Investors should monitor client retention rates and the pace of share-of-wallet expansion to gauge long-term momentum.