Quest Resource (QRHC) 15th Annual Midwest IDEAS Investor Conference summary

Business overview and differentiation

• Provides national waste and recycling solutions for large B2B clients, focusing on complex waste streams and regulatory compliance.

• Serves diverse end markets including automotive, food, retail, and construction, reducing risk from sector-specific downturns.

• Asset-light model leverages thousands of subcontractors, enabling scalability and cost efficiency without heavy capital investment.

• Differentiates from competitors by aligning with customer sustainability goals and offering flexible, tech-enabled services.

• Focuses on high-value clients who prioritize sustainability, data reporting, and compliance, not just cost.

Growth strategy and financial performance

• Achieved a 40% three-year CAGR in revenue and more than doubled gross margins since 2016.

• Growth driven by expanding services to existing clients, acquiring new clients, and selective M&A targeting smaller, infrastructure-limited firms.

• Gross profit dollars are the primary performance metric due to commodity price fluctuations affecting revenue.

• Recent revenue flatness attributed to ramp-up of new clients and some client churn, but gross profit continues to grow.

• Automation initiatives are expected to further enhance EBITDA margins and cash flow in 2024 and 2025.

Technology and operational efficiency

• Tech-enabled platform provides clients with detailed waste data and reporting tools, supporting sustainability and compliance.

• Internal automation of invoice processing is reducing G&A costs and improving operational efficiency.

• Asset-light model allows rapid scaling and national coverage without significant capital expenditure.

• Vendor excess capacity is leveraged for cost advantages and high incremental EBITDA.