Key Highlights

  • Revenue was $63.8 million, a 0.7 percent increase from the third quarter of 2025.
  • Gross profit was $11.4 million, up 9.1 percent from the second quarter of 2026.
  • Adjusted EBITDA was $3.4 million, compared with $2.9 million a year earlier.
  • Revenue declined 0.5 percent from the second quarter.

Quest Resource Holding Corporation (NASDAQ:QRHC), a national provider of environmental waste and recycling services, reported results for the third quarter ended September 30, 2026. Revenue was $63.8 million, a 0.7 percent increase from the prior-year quarter and a 0.5 percent decrease from the second quarter. Gross Profit reached $11.4 million, down 0.7 percent year over year but up 9.1 percent sequentially. Adjusted EBITDA was $3.4 million, compared with $2.9 million in the third quarter of 2025.

Revenue Stability and Sequential Trend

Revenue was nearly unchanged from both the prior-year and prior quarters, which indicates a stable Demand base for the company's waste and recycling services. The small change in each direction suggests that Volume and pricing have been steady over the period rather than shifting sharply.

Because revenue held steady while gross profit rose from the second quarter, the company's cost of services or its service mix improved during the period. The release reports the sequential improvement in gross profit as a notable movement relative to the flat top line.

Gross Profit and Adjusted EBITDA

Gross profit of $11.4 million fell slightly from the prior-year quarter, so the year-over-year profit trend is flat rather than rising. Gross margin, calculated on the reported figures, is roughly 18 percent of revenue, which sets the base from which operating expenses are deducted.

Adjusted EBITDA rose to $3.4 million from $2.9 million a year earlier and from $2.8 million in the second quarter. That growth came despite a flat revenue base, which suggests that cost control or below-gross-profit expense changes contributed to the improvement.

Sector Context and What to Watch

Waste and recycling services depend on municipal and commercial contracts, Commodity prices for recovered materials, and regulatory requirements for disposal. Stable revenue in this category often reflects contracted volumes, while margins can respond to recycling commodity prices and fuel costs.

Final Takeaways

Quest Resource reported revenue close to its prior-year level, a sequential gain in gross profit and higher adjusted EBITDA. The results show steady operations with improving profitability measures in the quarter. Future reports will indicate whether the company can keep improving profit at a stable revenue level.