📊 QRHC Key Takeaways
Is Quest Resource Holding Corp (QRHC) a Good Investment?
Quest Resource Holding Corp faces severe financial distress with declining revenue (-13.3% YoY), persistent operating losses, and negative interest coverage (-0.7x), indicating inability to service debt from operations. The company's minimal cash position ($1.0M), elevated leverage (1.58x), and deteriorating profitability (negative ROE -38%, ROA -10.6%) signal unsustainable fundamentals. While positive operating cash flow ($9.6M) provides near-term breathing room, the combination of shrinking top line, unprofitable operations, and constrained liquidity presents unacceptable risk.
Why Buy Quest Resource Holding Corp Stock? QRHC Key Strengths
- Positive operating cash flow of $9.6M despite net losses indicates some underlying cash generation capability
- Positive free cash flow of $9.3M with minimal capex requirements (3.7% FCF margin) provides near-term debt servicing capacity
- Acceptable current ratio of 1.30x maintains minimum short-term liquidity threshold
QRHC Stock Risks: Quest Resource Holding Corp Investment Risks
- Critical negative interest coverage ratio (-0.7x) means company cannot cover debt obligations from operating income and is reliant on external financing or asset sales
- Revenue declining 13.3% YoY coupled with negative operating margin (-2.5%) indicates structural business deterioration not offset by cost controls
- Dangerously low cash position ($1.0M) creates existential liquidity risk if operating cash flow deteriorates or debt matures without refinancing capability
- High leverage (Debt/Equity 1.58x) with $64.0M long-term debt relative to only $40.5M equity leaves minimal margin for error
- Negative ROE (-38%) and ROA (-10.6%) demonstrate accelerating shareholder value destruction
Key Metrics to Watch
- Revenue trajectory and YoY growth rate - stabilization essential; continued decline fatal
- Operating income and operating margin - company must return to profitability to service debt sustainably
- Cash balance and operating cash flow sustainability - any decline below $5M operating cash flow would trigger severe covenant or refinancing risk
Quest Resource Holding Corp (QRHC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 3.7% FCF margin may limit capital allocation flexibility.
QRHC Profit Margin, ROE & Profitability Analysis
QRHC vs Market Sector: How Quest Resource Holding Corp Compares
How Quest Resource Holding Corp compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Quest Resource Holding Corp Stock Overvalued? QRHC Valuation Analysis 2026
Based on fundamental analysis, Quest Resource Holding Corp shows some fundamental concerns relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Quest Resource Holding Corp Balance Sheet: QRHC Debt, Cash & Liquidity
QRHC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Quest Resource Holding Corp's revenue has grown significantly by 85% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.73 indicates the company is currently unprofitable.
QRHC Revenue Growth, EPS Growth & YoY Performance
QRHC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $63.3M | -$655.0K | $-0.06 |
| Q2 2025 | $59.5M | -$655.0K | $-0.07 |
| Q1 2025 | $68.4M | -$655.0K | $-0.03 |
| Q3 2024 | $70.4M | -$655.3K | $-0.10 |
| Q2 2024 | $73.1M | -$655.3K | $-0.04 |
| Q1 2024 | $72.7M | -$655.3K | $-0.03 |
| Q3 2023 | $70.4M | -$886.6K | $-0.09 |
| Q2 2023 | $74.5M | -$886.6K | $-0.04 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Quest Resource Holding Corp Dividends, Buybacks & Capital Allocation
QRHC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Quest Resource Holding Corp (CIK: 0001442236)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Apr 7, 2026 | 4 | xslF345X06/form412364002mos_04072026.xml | View → |
| Apr 7, 2026 | 4 | xslF345X06/form412364002joh_04072026.xml | View → |
| Apr 2, 2026 | 4 | xslF345X06/form412364002nol_04022026.xml | View → |
| Apr 2, 2026 | 4 | xslF345X06/form412364002fri_04022026.xml | View → |
| Mar 23, 2026 | 4 | xslF345X06/form412364002_03232026.xml | View → |
❓ Frequently Asked Questions about QRHC
What is the AI rating for QRHC?
Quest Resource Holding Corp (QRHC) has an AI rating of STRONG SELL with 85% confidence, based on fundamental analysis of SEC EDGAR filings.
What are QRHC's key strengths?
Claude: Positive operating cash flow of $9.6M despite net losses indicates some underlying cash generation capability. Positive free cash flow of $9.3M with minimal capex requirements (3.7% FCF margin) provides near-term debt servicing capacity.
What are the risks of investing in QRHC?
Claude: Critical negative interest coverage ratio (-0.7x) means company cannot cover debt obligations from operating income and is reliant on external financing or asset sales. Revenue declining 13.3% YoY coupled with negative operating margin (-2.5%) indicates structural business deterioration not offset by cost controls.
What is QRHC's revenue and growth?
Quest Resource Holding Corp reported revenue of $250.2M.
Does QRHC pay dividends?
Quest Resource Holding Corp does not currently pay dividends.
Where can I find QRHC SEC filings?
Official SEC filings for Quest Resource Holding Corp (CIK: 0001442236) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is QRHC's EPS?
Quest Resource Holding Corp has a diluted EPS of $-0.73.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is QRHC a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Quest Resource Holding Corp has a STRONG SELL rating with 85% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is QRHC stock overvalued or undervalued?
Valuation metrics for QRHC: ROE of -38.0% (sector avg: 15%), net margin of -6.1% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy QRHC stock in 2026?
Our dual AI analysis gives Quest Resource Holding Corp a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is QRHC's free cash flow?
Quest Resource Holding Corp's operating cash flow is $9.6M, with capital expenditures of $251.0K. FCF margin is 3.7%.
How does QRHC compare to other Market stocks?
Vs Default sector averages: Net margin -6.1% (avg: 12%), ROE -38.0% (avg: 15%), current ratio 1.30 (avg: 1.8).
Is Quest Resource Holding Corp carrying too much debt?
QRHC has a debt-to-equity ratio of 1.58x, which is above the Market sector average of 0.7x. However, the current ratio of 1.30 suggests adequate short-term liquidity.