Quest Resource Sees Higher Q4 Gross Profit

The waste and recycling services provider expects fourth-quarter gross profit and margin to rise from a year earlier, after flat third-quarter results.

Updated on Nov. 8, 2026 in Corporate Finance

Quest Resource Sees Higher Q4 Gross Profit

Quest Resource Holding Corporation expects fourth-quarter gross profit and margin to be up year over year, according to its CFO on the November 5, 2026 earnings call. The company reported third-quarter 2026 revenue of $63.779 million, up 0.7% from a year earlier, while gross profit slipped 0.7%.

Why it matters

The projected fourth-quarter improvement would reverse a year-over-year decline in gross profit, signaling a potential shift in profitability for the Nasdaq-listed company. Seasonality is expected to lower revenue and gross profit from the third quarter, so the outlook depends on the company's ability to lift margins.

Quest Resource reported Q3 2026 gross profit of $11.383 million, down 0.7% from $11.467 million a year earlier, with a 17.8% gross margin versus 18.1%. The company gave no numerical fourth-quarter targets, leaving the size of the expected improvement unspecified.

The players

Quest Resource Holding Corporation (QRHC)

A waste and recycling services provider listed on Nasdaq that reports quarterly revenue, gross profit, and adjusted EBITDA.

The details

Quest Resource's CFO said the company expects fourth-quarter gross profit and margin to be up solidly from the prior year, while cautioning that seasonality will lower revenue and gross profit from the third quarter. The company ended the quarter with days sales outstanding of about 71 days and expects that figure to reach the mid-60s in the near term.

Sept. 30, 2026: Quest Resource's third quarter ended, with revenue and gross profit reported.
Nov. 5, 2026: The CFO discussed fourth-quarter expectations on the earnings call.

Market Dynamics

The outlook follows a Q3 2026 gross margin of 17.8%, down from 18.1% a year earlier, which left Quest Resource's profitability flat-to-lower going into the fourth quarter. A reversal to year-over-year gains would be the company's first such improvement in the period reported.

Investors tracking Quest Resource can watch whether the fourth-quarter report confirms the expected year-over-year gains in gross profit and margin. Shareholders will also want to see whether days sales outstanding moves toward the mid-60s target the company has signaled.

The takeaway

Watch whether Quest Resource's fourth-quarter results match its qualitative guidance, since the company has not yet put numbers on the expected gross profit and margin gains. Tracking days sales outstanding against the mid-60s goal will show whether working-capital efficiency is improving alongside profitability.