Quest Resource Holding Corporation, a leader in environmental waste and recycling services, reported its financial results for the first quarter ending March 31, 2025. The company recorded revenues of $68.4 million, marking a 5.8% decrease compared to the first quarter of 2024. Gross profit was $10.9 million, a decline of 22.1% from the previous year's first quarter. The gross margin also saw a reduction, recorded at 16.0% of revenue compared to 19.3% in the same period of 2024. The company experienced a GAAP net loss per basic and diluted share attributable to common stockholders of $(0.50), compared to $(0.03) per share during the first quarter of 2024. Additionally, Quest Resource recognized a non-cash loss on the sale of assets amounting to $4.4 million, or $(0.21) per diluted share, due to the sale of the tenant-direct mall portion of its RWS business. An impairment charge on intangible assets resulted in a non-cash loss of $1.7 million, or ($0.08) per diluted share. Adjusted EBITDA was reported at $1.6 million, down from $5.1 million in the first quarter of 2024. Significant business updates include the completion of the sale of a non-core portion of its RWS business, generating $5 million in cash proceeds used to pay down debt. The company also implemented a reduction in headcount, aiming to reduce SG&A expenses by approximately $3 million annually. Quest Resource has focused on operational performance improvements by adding a new CEO and Senior VP of Operations with deep industry experience. The company remains committed to increasing earnings, generating cash, and improving operating efficiencies through short-term initiatives and long-term efficiency programs.
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