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QRHC Nasdaq· Quest Resource Holding Corp
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QRHC Nasdaq· Quest Resource Holding Corp
Earnings report Q3 2023

QRHC Reports Slight Decrease in Revenue for the Latest Quarter

Segments of revenue

QRHC generated a total revenue of $70.43 million for the three months ended September 30, 2023, compared to $73.36 million in the same period last year. The company's revenue for the nine months ended September 30, 2023, amounted to $219.04 million, slightly lower than the $221.79 million reported in the previous year.

Strengths

Despite the slight decrease in revenue, QRHC maintained a solid financial performance in the latest quarter. The company's ability to generate substantial revenue from both solid waste and recyclable materials, as well as sales of recyclable materials, demonstrates its diversified revenue streams. Additionally, QRHC's management highlighted the contribution of product sales, including antifreeze and windshield washer fluid, to its overall revenue.

Challenges

QRHC faced challenges in the form of cost of revenue, which amounted to $57.99 million for the three months ended September 30, 2023, compared to $61.17 million in the same period last year. The cost of revenue for the nine months ended September 30, 2023, was $180.47 million, slightly lower than the $183.69 million reported in the previous year. The company's management should focus on optimizing cost efficiency to improve profitability.

Noteworthy

It is worth mentioning that QRHC's operating income increased to $468,538 for the latest quarter, compared to $377,273 in the same period last year. This improvement in operating income indicates the company's ability to effectively manage its operating expenses. However, QRHC also experienced an increase in interest expense, which amounted to ($2.41 million) for the latest quarter, compared to ($1.91 million) in the same period last year. This increase in interest expense may impact the company's overall financial performance.

Summary

QRHC reported a slight decrease in revenue for the latest quarter, generating $70.43 million compared to $73.36 million in the same period last year. Despite this, the company demonstrated strengths in its diversified revenue streams, including solid waste and recyclable materials, sales of recyclable materials, and product sales. QRHC's operating income improved, indicating effective management of operating expenses. However, the company should address challenges related to cost efficiency and the increase in interest expense. Overall, QRHC's financial performance remains solid, and its management should continue to focus on optimizing profitability.

Source documents

Form 10-Q  filed on Nov 14, 2023
51 pages scanned

Reference data

Company financials Q3 revenue 70.4M
Analyst estimates Q3 EPS missed by -78.57%
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