Quest Resource (QRHC) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue declined 15.8% year-over-year to $58.9 million, driven by industrial sector softness, a divestiture, and seasonal slowdown.

• Gross profit decreased 15.1% year-over-year to $9.1 million in Q4, with a gross margin of 15.5%.

• Net loss narrowed to $1.7 million in Q4 2025 from $9.5 million in Q4 2024; full-year net loss was $15.4 million.

• Operational excellence, share of wallet expansion, and new client wins are driving efficiencies and positioning for future growth.

• Divestiture of an underperforming business and new client wins contributed to a $29 million increase in new revenues year-over-year.

Financial highlights

• Q4 2025 revenue was $58.9 million, down 16% year-over-year and 7% sequentially, mainly due to industrial client weakness and divestiture.

• SG&A expenses were $7.7 million, a 24% year-over-year and 17% sequential reduction, driven by headcount and cost cuts.

• Generated $1 million in cash from operations and $1.7 million in free cash flow in Q4.

• Paid down $2 million in debt in Q4, totaling $13.2 million for the year, a 16.4% reduction.

• GAAP net loss per share was $(0.08) in Q4 and $(0.73) for the year, unchanged from the prior year.

Outlook and guidance

• Management expects improved sequential gross profit in Q1 2026 and full-year benefit from recent client launches and strategic initiatives.

• Anticipate continued margin pressure in 2026 from industrial volume challenges and land-and-expand strategy, but plan to offset via operational improvements and wallet share growth.

• SG&A expected below $9 million in Q1 2026 due to normal bonus accrual resumption.

• Continued focus on debt reduction, cash generation, and operational efficiency.