Overview

* Quest Resource Holding Corp ( QRHC ) Q2 revenue falls 18.6% yr/yr, missing analyst expectations

* Adjusted EPS for Q2 misses estimates, reflecting continued financial pressure

* Co generated $3.9 mln in operating cash flow, reduced debt by $6.6 mln YTD

Outlook

* Quest Resource ( QRHC ) focuses on cash generation and process improvement

* Company sees macro uncertainties slowing client decision-making

* Quest Resource ( QRHC ) pursues growth by expanding client base and footprint

Result Drivers

* OPERATIONAL EXCELLENCE - Initiatives focused on cash generation, profitability, and process improvement contributed to sequential improvements in gross profit and adjusted EBITDA

* COMPETITIVE WINS - Secured new client in restaurant industry and expanded geographic footprint with existing retailer client

* INDUSTRIAL SOFTNESS - Continued softness in the industrial end market impacted revenue, despite performance-focused actions

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss $59.50 $72.60

Revenue mln mln (3

Analysts

)

Q2 Miss -$0.04 $0.02 (3

Adjusted Analysts

EPS )

Q2 Miss $2.70 $3.13

Adjusted mln mln (3

EBITDA Analysts

)

Q2 Gross 18.5%

Margin

Q2 Gross $11 mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the environmental services & equipment peer group is "buy"

* Wall Street's median 12-month price target for Quest Resource Holding Corp ( QRHC ) is $5.50, about 62.8% above its August 8 closing price of $2.05

* The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)