Breaking Down Quest Resource Holding Corporation (QRHC) Financial Health: Key Insights for Investors

Are you keeping a close watch on Quest Resource Holding Corporation (QRHC)? As investors, we're always seeking insights into a company's financial stability and future prospects. Did you know that in 2024, QRHC reported revenue of $288.5 million, a slight increase of 0.1% compared to 2023? However, gross profit saw a minor decrease to $50.0 million. With a GAAP net loss per diluted share of $(0.73) and an adjusted net loss per diluted share of $(0.03), should investors be concerned? Dive in to uncover a detailed breakdown of QRHC's financial health and what it means for your investment strategy.

Quest Resource Holding Corporation (QRHC) Revenue Analysis

Understanding Quest Resource Holding Corporation's revenue streams is crucial for investors. A detailed look at the company's revenue sources, growth, and segment contributions provides valuable insights into its financial health and future prospects. You might also be interested in: Exploring Quest Resource Holding Corporation (QRHC) Investor Profile: Who’s Buying and Why?

Here’s a breakdown of Quest Resource Holding Corporation's revenue streams:

• Primary Revenue Sources: The company primarily generates revenue through services, which constitute a significant portion of its total revenue, and from product sales and other sources.
• Year-Over-Year Revenue Growth Rate: In 2024, Quest Resource Holding Corporation reported a slight revenue increase of 0.1% compared to 2023. The annual revenue for 2024 was $288.5 million. For the quarter ending December 31, 2024, the revenue was $69.97 million, a 0.91% increase year-over-year.
• Contribution of Business Segments to Overall Revenue:
  • Services: Accounted for 96.25% of the total revenue.
  • Product Sales and Other: Contributed 3.84% to the total revenue.

Here is a table summarizing Quest Resource Holding Corporation's revenue by segments for Q3 2024:

Analysis of Significant Changes in Revenue Streams:

While Quest Resource Holding Corporation's revenue saw a slight increase of 0.1% for the year 2024, the company faced challenges in translating this into sustained margin and profit growth. Factors impacting the results included:

• Temporary cost increases from onboarding new clients.
• Implementation of a new vendor management system.
• Client attrition.
• Weakness in industrial clients and markets.

Despite these challenges, Quest Resource Holding Corporation is implementing cost-saving measures, including a 15% workforce reduction, expected to save approximately $3 million annually. They are also focused on operational improvements and efficiency gains to drive future growth.

Quest Resource Holding Corporation (QRHC) Profitability Metrics

Analyzing Quest Resource Holding Corporation's (QRHC) profitability involves examining several key metrics to understand the company's financial health and operational efficiency. A comprehensive look at gross profit, operating profit, and net profit margins, alongside trends and comparisons, provides valuable insights for investors.

For the fiscal year 2024, Quest Resource Holding Corporation reported:

• Revenue: $288.5 million, a slight increase of 0.1% compared to 2023.
• Gross Profit: $50.0 million, a 0.1% decrease compared to 2023.
• Gross Margin: 17.3%, slightly down from 17.4% in 2023.

However, the Q4 2024 results showed some challenges:

• Revenue: $70.0 million, a 0.9% increase compared to Q4 2023.
• Gross Profit: $10.7 million, a 6.7% decrease compared to Q4 2023.
• Gross Margin: 15.3%, compared to 16.6% in Q4 2023.

Net profitability metrics also reflect a challenging year:

• GAAP Net Loss per Diluted Share: $(0.73), compared to $(0.36) in 2023.
• Adjusted Net Loss per Diluted Share: $(0.03), compared to an adjusted net income of $0.15 in 2023.

The Q4 2024 GAAP net loss per diluted share was $(0.46), compared to $(0.11) in Q4 2023.

Here's a summary of Quest Resource Holding Corporation's profitability margins:

Quest Resource Holding Corporation's profitability has faced pressure, as evidenced by declining gross margins and net losses. The company is implementing several measures to improve operational efficiency and reduce costs:

• Cost Reduction: Implementing a 15% workforce reduction, expected to save $3 million annually.
• Debt Refinancing: Successfully refinanced debt, reducing annual interest expense by approximately $1 million. The blended interest rate was reduced by approximately 150 basis points.
• Operational Efficiency: Focusing on process enhancements and integrating technology to improve efficiency and profitability.

Despite the challenges, Quest Resource Holding Corporation secured eight new clients in 2024, expected to generate significant annual revenue. They also secured five expansion service agreements with existing clients.

For more insights into Quest Resource Holding Corporation, check out: Exploring Quest Resource Holding Corporation (QRHC) Investor Profile: Who’s Buying and Why?

Quest Resource Holding Corporation (QRHC) Debt vs. Equity Structure

Understanding how Quest Resource Holding Corporation (QRHC) finances its growth involves analyzing its debt and equity structure. This provides insights into the company's financial leverage and risk profile.

As of the fiscal year 2024, a detailed breakdown of QRHC's debt levels is essential to gauge its financial health. This includes both short-term and long-term debt obligations.

Analyzing QRHC's debt-to-equity ratio is crucial. This ratio measures the proportion of debt and equity used to finance the company's assets. A higher ratio indicates greater financial leverage, which can amplify both profits and losses. Comparing QRHC's debt-to-equity ratio to industry standards provides context on whether the company's leverage is typical or atypical for its sector.

Information on any recent debt issuances, credit ratings, or refinancing activities offers insights into QRHC's borrowing costs and financial stability. Credit ratings, assigned by agencies like Standard & Poor's, Moody's, and Fitch, reflect the creditworthiness of the company. Refinancing activities can indicate efforts to lower interest rates or extend debt maturities.

Balancing debt financing and equity funding is a strategic decision for QRHC. Debt financing can provide capital for growth initiatives without diluting ownership, but it also increases financial risk. Equity funding, on the other hand, strengthens the balance sheet but can dilute existing shareholders' ownership.

To better illustrate QRHC's financial position, consider the following hypothetical data for the fiscal year 2024:

In this hypothetical scenario, QRHC's debt-to-equity ratio of 0.5 suggests a balanced approach to financing. However, a thorough analysis would require comparing this ratio to industry averages and evaluating the company's ability to service its debt obligations.

Key considerations for investors include:

• The company's ability to manage its debt obligations.
• The impact of interest rate changes on its borrowing costs.
• The availability of future financing options.

For more insights into Quest Resource Holding Corporation's (QRHC) values, explore: Mission Statement, Vision, & Core Values of Quest Resource Holding Corporation (QRHC).

Quest Resource Holding Corporation (QRHC) Liquidity and Solvency

When evaluating Quest Resource Holding Corporation (QRHC), understanding its liquidity and solvency is crucial for investors. Liquidity refers to the company's ability to meet its short-term obligations, while solvency concerns its ability to meet long-term obligations.

Here's a breakdown of key aspects:

Assessing Quest Resource Holding Corporation's Liquidity:

Current and Quick Ratios: These ratios provide insights into QRHC's ability to cover its current liabilities with its current assets. As of the most recent data, these ratios should be analyzed to determine if QRHC has sufficient liquid assets. For instance, a current ratio of 2.0 suggests the company has $2 of current assets for every $1 of current liabilities.

Analysis of Working Capital Trends: Monitoring the trend of QRHC's working capital (current assets minus current liabilities) is essential. A consistently positive working capital balance indicates a healthy short-term financial position. Any significant fluctuations should be investigated to understand the underlying causes. For example, if working capital decreased by 15% year-over-year, it could signal potential liquidity issues.

Cash Flow Statements Overview:

A review of QRHC's cash flow statements, specifically focusing on operating, investing, and financing activities, is critical. Key trends to watch include:

• Operating Cash Flow: A positive and increasing trend indicates the company is generating cash from its core business operations.
• Investing Cash Flow: This section reveals how QRHC is using cash for investments, such as purchasing property, plant, and equipment (PP&E).
• Financing Cash Flow: This shows how the company is raising capital, such as through debt or equity, and repaying debt.

For example, if QRHC shows positive operating cash flow of $5 million, negative investing cash flow of $2 million (due to capital expenditures), and positive financing cash flow of $1 million (from new debt), this mix provides insights into its financial strategy.

Potential Liquidity Concerns or Strengths: Investors should be aware of any red flags, such as a consistently negative operating cash flow or a high level of short-term debt. Conversely, a strong cash position and positive working capital trends are positive indicators of liquidity strength.

A comprehensive financial analysis often includes a detailed table of key financial ratios and metrics. Here's an example of how this information might be presented:

Understanding these elements is essential for a clear view of QRHC's financial well-being. For more in-depth analysis, check out: Breaking Down Quest Resource Holding Corporation (QRHC) Financial Health: Key Insights for Investors

Quest Resource Holding Corporation (QRHC) Valuation Analysis

Assessing whether Quest Resource Holding Corporation (QRHC) is overvalued or undervalued requires a multifaceted approach, incorporating various financial ratios, stock performance analysis, and analyst opinions. Key valuation metrics include the price-to-earnings (P/E) ratio, price-to-book (P/B) ratio, and enterprise value-to-EBITDA (EV/EBITDA) ratio.

Currently, up-to-date, real-time data on these specific ratios for QRHC as of April 2025 would provide the most accurate snapshot. However, based on the latest available financial data from fiscal year 2024, we can analyze QRHC using these metrics:

• Price-to-Earnings (P/E) Ratio: This ratio indicates how much investors are willing to pay for each dollar of QRHC's earnings. A higher P/E ratio might suggest overvaluation if it's significantly above industry averages, while a lower P/E could indicate undervaluation.
• Price-to-Book (P/B) Ratio: The P/B ratio compares QRHC's market capitalization to its book value of equity. A lower P/B ratio compared to its peers could suggest the stock is undervalued.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: This ratio compares the company's total value (market cap plus debt minus cash) to its earnings before interest, taxes, depreciation, and amortization. It's useful for evaluating companies with varying capital structures.

Analyzing QRHC's stock price trends over the last 12 months (or longer) can offer insights into market sentiment and investor confidence. Significant price appreciation could indicate strong market optimism, while a declining trend might suggest concerns about the company's performance or industry outlook.

As of April 2025, dividend yield and payout ratios are not applicable as QRHC does not currently offer dividends. Therefore, this aspect does not factor into its valuation analysis.

To provide a clearer picture, consider the following hypothetical valuation data for QRHC based on its 2024 fiscal year performance:

It's essential to note that these values are purely hypothetical and for illustrative purposes only. Real-time financial data should be consulted for accurate analysis.

Finally, assessing analyst consensus on QRHC's stock valuation (buy, hold, or sell ratings) provides an external perspective on the company's potential. A consensus of 'buy' ratings suggests analysts believe the stock is undervalued and has growth potential, while 'hold' or 'sell' ratings indicate a more cautious outlook.

Quest Resource Holding Corporation (QRHC) Risk Factors

Several factors could potentially impact Quest Resource Holding Corporation's (QRHC) financial health, spanning both internal and external elements. These risks encompass industry competition, regulatory changes, market conditions, and specific operational and strategic challenges detailed in their financial reports.

Industry Competition: The waste management and recycling industry is highly competitive. QRHC faces competition from large, established national companies as well as smaller, regional players. Increased competition could lead to pricing pressures, reduced market share, and decreased profitability.

Regulatory Changes: The waste management industry is subject to extensive and evolving environmental regulations at the federal, state, and local levels. Changes in these regulations can increase compliance costs, require significant capital expenditures, and potentially limit the types of services QRHC can offer. For example, stricter regulations on landfill disposal or increased recycling mandates could significantly impact operations.

Market Conditions: Economic downturns can reduce the volume of waste generated by businesses, impacting QRHC's revenue. Fluctuations in commodity prices, particularly for recyclable materials, can also affect profitability. A decrease in the price of recycled materials would reduce revenue from the sale of these materials.

Operational Risks:

• Contract Management: QRHC's business relies on securing and maintaining contracts with its customers. The loss of significant contracts or failure to renew contracts on favorable terms could adversely affect revenue and profitability.
• Integration Risks: QRHC has grown through acquisitions, and integrating acquired companies and operations can be complex and challenging. Failure to successfully integrate acquisitions could result in increased costs, loss of key personnel, and disruption of business operations.
• Reliance on Third Parties: QRHC relies on third-party vendors for various services, including transportation and disposal of waste. Disruptions in these services, or the failure of vendors to meet their obligations, could negatively impact QRHC's operations and financial performance.

Financial Risks:

• Debt Levels: High levels of debt could increase QRHC's vulnerability to economic downturns and limit its ability to invest in growth opportunities.
• Access to Capital: QRHC's future growth depends on its ability to access capital markets to fund acquisitions and capital expenditures. Changes in market conditions or the company's financial performance could limit its access to capital on favorable terms.

Mitigation Strategies: While specific mitigation strategies would be detailed in Quest Resource Holding Corporation's (QRHC) filings, common strategies include:

• Diversifying service offerings to reduce reliance on any single market segment.
• Investing in technology and infrastructure to improve operational efficiency and reduce costs.
• Implementing robust contract management processes to ensure favorable terms and minimize the risk of contract losses.
• Maintaining strong relationships with vendors and exploring alternative service providers to mitigate disruptions.
• Adopting conservative financial management practices to maintain a strong balance sheet and ensure access to capital.

For further insights into QRHC's mission, vision, and core values, you can explore: Mission Statement, Vision, & Core Values of Quest Resource Holding Corporation (QRHC).

Quest Resource Holding Corporation (QRHC) Growth Opportunities

Quest Resource Holding Corporation (QRHC) demonstrates potential for future growth driven by several factors, including strategic initiatives, market expansion, and innovative solutions. A comprehensive analysis reveals key areas that investors should monitor to gauge the company's trajectory.

Key growth drivers for QRHC include:

• Market Expansion: Expanding into new geographic regions and industries to broaden the customer base.
• Service Innovation: Developing and implementing new and improved waste management and recycling solutions.
• Strategic Acquisitions: Acquiring complementary businesses to enhance service offerings and market presence.

Future revenue growth projections and earnings estimates are crucial for assessing QRHC's financial health. While specific figures can fluctuate based on market conditions and company performance, analysts often consider the following:

• Projected annual revenue growth rates, which can vary from single-digit to double-digit percentages based on market penetration and economic factors.
• Earnings per share (EPS) growth, reflecting the company's profitability and efficiency in managing its operations.

Strategic initiatives and partnerships play a significant role in QRHC's growth prospects. These include:

• Technology Adoption: Integrating advanced technologies to improve waste tracking, reporting, and overall operational efficiency.
• Sustainability Partnerships: Collaborating with organizations focused on sustainability to enhance QRHC's reputation and attract environmentally conscious clients.
• Client Retention Programs: Implementing strategies to maintain and grow relationships with key clients, ensuring recurring revenue streams.

QRHC possesses several competitive advantages that position it favorably for future growth:

• Industry Expertise: Deep understanding of waste management and recycling processes, allowing for tailored solutions.
• Regulatory Compliance: Strong track record of adhering to environmental regulations, building trust with clients and regulatory bodies.
• Customer Service: Commitment to providing excellent customer service, fostering long-term client relationships.

The following table summarizes potential future growth indicators for Quest Resource Holding Corporation:

For further insights into QRHC's financial health, consider exploring: Breaking Down Quest Resource Holding Corporation (QRHC) Financial Health: Key Insights for Investors.