# Quest Resource Expects Q4 Gross Profit and Margin to Rise Year Over Year

By John Kim

Canonical URL: https://www.tokenpost.com/news/business/51757
Published: 2026-11-08T19:14:55.000Z
Updated: 2026-11-08T19:14:55.000Z
Section: Business

> Seasonality is expected to lower revenue and gross profit from Q3. Quest ended September with days sales outstanding of about 71 days.

Quest Resource Holding Corporation (Nasdaq: QRHC), a waste and recycling services provider, expects fourth-quarter gross profit and margin to top year-earlier levels even as seasonal patterns weigh on revenue and gross profit from Q3, Chief Financial Officer Brett Johnston said on a Nov. 5 earnings call.

Johnston described the expected year-over-year gains in gross profit and margin as “to be up solidly compared to the prior year.” The company provided no numerical Q4 targets for either measure. It also expected revenue and gross profit to fall from Q3 because of seasonality, but did not quantify those sequential declines.

For the quarter ended Sept. 30, 2026, Quest generated $63.779 million in revenue, up 0.7% from $63.341 million a year earlier. Gross profit was $11.383 million, down 0.7% from $11.467 million in Q3 2025.

Gross margin was 17.8%, compared with 18.1% a year earlier. From Q2 2026, gross profit increased 9.1%, while gross margin rose from 16.3%. Adjusted EBITDA was $3.4 million, versus $2.9 million in Q3 2025 and $2.8 million in Q2 2026.

Quest ended Q3 with days sales outstanding (DSO) of about 71 days, essentially unchanged from the prior quarter. Johnston reiterated a near-term DSO target in the mid-60s. The company said three short-term client collection issues had been resolved by the call, including one involving a large client that temporarily paused payments while moving payment processing in-house.