In a challenging market environment, Quest Resource (NASDAQ:QRHC) Holding Corporation (QRHC) stock has touched a 52-week low, dipping to $6.4. The company, which specializes in environmental reuse, recycling, and disposal services, has faced headwinds that have pressured its stock price over the past year, with a notable 20.7% decline over the past six months. According to InvestingPro analysis, while the company maintains healthy liquidity with a current ratio of 1.52, it faces some challenges with debt servicing. Despite these challenges, the company has demonstrated resilience with modest revenue growth of 2.35% and maintains strong liquid assets exceeding short-term obligations. InvestingPro analysis suggests the stock is currently trading below its Fair Value, potentially presenting an opportunity for value investors. Investors and analysts will be watching closely to see how QRHC responds to these conditions and whether it can rebound from this 52-week low. For deeper insights, investors can access 8 additional ProTips and comprehensive financial analysis through InvestingPro's detailed research report.
In other recent news, Quest Resource Holding Corp. reported a slight year-over-year revenue increase of 3.3% to $72.8 million in their third-quarter earnings call. The revenue boost was attributed to the addition of seven new clients, contributing $16 million, despite facing challenges such as weaker market conditions and client attrition. However, a 5.9% decline in gross profit was observed due to a shift in revenue mix, increased service costs, and unexpected billing credits.
The company remains optimistic about future growth, evidenced by a strong pipeline and anticipated cost savings from new technology. Quest Resource projects over $20 million in net incremental revenue from new clients in 2025, not including potential growth from existing clients. The firm also emphasized enhancing its technology platform and client service capabilities.
Analysts noted a $13 million revenue decline due to weaker market conditions and client attrition, and a decrease in gross profit by 5.9% year-over-year. However, they also highlighted the company's optimism for future growth and the potential for recurring savings from their automated vendor management system. The company has onboarded nine new clients this year, with significant revenue potential from existing and new contracts.
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