Quest Resource Holding Corp
For the period ended Sep 30, 2025. Filed Nov 10, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 10, 2025
QRHC$1.12+7.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-11.
0000950170-25-106524
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-10.
0001193125-25-274169
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 79 previous paragraphs and 75 current paragraphs.
34 unchanged; 32 reworded; 9 added; 13 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 3 previous and 3 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (9)
Current report
For the quarter ended September 30, 2025, revenue was $63.3 million, a decrease of $9.5 million, or 13.0% compared to $72.8 million for the quarter ended September 30, 2024. For the nine months ended September 30, 2025, revenue was $191.3 million, a decrease of $27.3 million, or 12.5%, compared to $218.6 million for the nine months ended September 30, 2024.
Current report
For the quarter ended September 30, 2025, the revenue decline was primarily due to the divestiture of the mall-related business and continued softness in the industrial end market, which reduced revenue by approximately $3.0 million and $6.0 million, respectively. Excluding the impact of the divestiture and industrial headwinds, underlying revenue performance remained stable. New client growth contributed approximately $5.5 million in incremental revenue during the quarter, largely offsetting attrition tied to client losses that occurred primarily in the second half of 2024.
Current report
For the nine months ended September 30, 2025, the decline in revenue was primarily driven by the divestiture of the mall-related business and ongoing softness in the industrial end market, which reduced revenue by approximately $12.0 million and $23.0 million, respectively. These headwinds were partially offset by growth across the broader portfolio, which contributed approximately $8.0 million of incremental revenue. This increase reflected $24.0 million of new client growth, partially offset by $14.5 million of customer attrition that occurred primarily in the second half of 2024. Attrition levels have since normalized and client retention has remained stable in recent quarters.
Current report
Cost of revenue decreased $9.2 million, or 15% to $51.9 million for the quarter ended September 30, 2025 from $61.1 million for the quarter ended September 30, 2024. For the nine months ended September 30, 2025, cost of revenue decreased $21.4 million, or 12%, to $157.9 million from $179.3 million in the prior-year period. The decreases were primarily driven by lower volumes related to customer attrition and softness in the industrial end market, as well as the impact of the REIT divestiture completed in 2024, which eliminated costs associated with lower-margin operations.
Current report
Gross profit for the quarter ended September 30, 2025 was $11.5 million, compared to $11.7 million for the quarter ended September 30, 2024. Gross profit margin improved to 18.1% from 16.1% reflecting the benefits of the underperforming mall-related business divestiture and the traction on margin enhancement initiatives across the portfolio, partially offset by recent margin pressure from certain contract renewals.
Current report
For the nine months ended September 30, 2025, gross profit was $33.4 million compared to $39.3 million in the same period of 2024, with gross margin of 17.5% compared to 18.0% in the prior-year period. The decline reflects lower revenue volumes stemming from industrial market weakness and client attrition earlier in the year, partially offset by contributions from new client growth, the favorable impact of the mall-related business divestiture, and ongoing margin enhancement initiatives.
Current report
Selling, general, and administrative expenses were $9.2 million for the quarter ended September 30, 2025, compared to $10.3 million for same period in 2024. The year-over-year decrease primarily reflects $0.8 million lower labor-related costs from reduced headcount, driven by efficiency initiatives implemented earlier in the year, as well as $0.4 million lower professional fees. These savings were partially offset by a slight increase in IT and software-related costs to support ongoing efficiency improvements.
Current report
Selling, general, and administrative expenses were $29.9 million and $29.5 million for the nine months ended September 30, 2025 and 2024, respectively. The slight year-over-year increase primarily reflects one-time costs of $0.6 million related to the CEO transition earlier in the year. Excluding these nonrecurring items, selling, general, and administrative expenses declined compared to the prior-year period, reflecting sustainable cost reductions implemented during the first half of 2025.
Current report
net loss of $(5.6) million;
Removed paragraphs (13)
Previous report
For the quarter ended June 30, 2025, revenue was $59.5 million, a decrease of $13.6 million, or 18.6% compared to $73.1 million for the quarter ended June 30, 2024. For the six months ended June 30, 2025, revenue was $128.0 million, a decrease of $17.8 million, or 12.2%, compared to $145.8 million for the six months ended June 30, 2024.
Previous report
The revenue decline for the quarter ended June 30, 2025 was primarily attributable to the divestiture of the mall-related business and ongoing softness in the industrial end market, which reduced revenues by approximately $5 million and $11 million, respectively. These impacts were partially offset by growth within the remaining business, which contributed approximately $3 million in incremental revenue, driven by an $8 million increase from new clients, partially offset by a $5 million decline due to customer attrition.
Previous report
For the six months ended June 30, 2025, the decrease in revenue was similarly attributable to the divestiture of the mall-related business and softness in the industrial end market, which reduced revenues by approximately $9 million and $17 million, respectively. These declines were partially offset by growth within our remaining business, which contributed approximately $8 million in incremental revenue, driven by an $18.5 million increase from new clients, partially offset by a $9 million reduction due to customer attrition."
Previous report
Cost of revenue decreased $11.1 million to $48.5 million for the quarter ended June 30, 2025 from $59.6 million for the quarter ended June 30, 2024. Cost of revenue decreased $12.2 million to $106.0 million for the six months ended June 30, 2025 compared to $118.2 million for the six months ended June 30, 2024. The changes in cost of revenue were primarily related to the changes in revenue.
Previous report
Gross profit for the quarter ended June 30, 2025 was $11.0 million, compared to $13.5 million for the quarter ended June 30, 2024. The gross profit margin was 18.5% for the quarter ended June 30, 2025, compared to 18.5% for the same quarter of 2024. Gross profit for the six months ended June 30, 2025 was $22.0 million, compared to $27.6 million for the six months ended June 30,
Previous report
The gross profit margin was 17.2% for the six months ended June 30, 2025, compared to 18.9% for the six months ended June 30, 2024. The changes in gross profit for the quarter and year to date periods were primarily due to the net impacts of the changes in both revenue and cost of revenue.
Previous report
The gross profit margin percentage for the quarter ended June 30, 2025 remained flat compared to the quarter ended June 30, 2024. While we began to see the positive impact on margins resulting from current period performance initiatives gains, they were offset by approximately 2% due to the higher costs of implementing new customers. For the six months ended June 30, 2025, gross profit margin percentages declined by 1.7% due to the higher cost of implementing new customers which negatively impacted margins by approximately 2%. When new customers are on-boarded, we typically experience a higher cost of revenue during the implementation period while revenue is still ramping up. This results in lower margins during the implementation period, but as business with the customer increases the margins will mature over time.
Previous report
Selling, general, and administrative expenses were $9.3 million and $9.4 million for the quarters ended June 30, 2025 and 2024, respectively. Selling, general, and administrative expenses were $20.7 million and $19.2 million for the six months ended June 30, 2025 and 2024, respectively. The increase primarily relates to increases in labor related expenses which included $0.7 million in severance and retirement expenses in the first quarter of 2025. We reduced headcount beginning late in the first quarter of 2025 as a result of operational efficiency initiatives. We began to realize cost savings from the headcount reduction beginning in the second quarter of 2025.
Previous report
net loss of $(2.2) million;
Previous report
Goodwill Impairment Testing
Previous report
The qualitative assessment of goodwill at June 30, 2025 determined a triggering event occurred requiring that we conduct additional quantitative analyses. The triggering event was primarily due to the decrease in the Company's share price during the six months ended June 30, 2025 resulting in a decline in market capitalization.
Previous report
Management engaged a third party to perform a series of quantitative assessments utilizing multiple valuation methods. Those assessments included both market and income-based methods utilizing Level 2 observable market data and Level 3 unobservable inputs, respectively. Significant estimates in the market-based method included identifying similar companies with comparable business factors such as service offerings, customers, size, growth, profitability, risk and return on investment, as well as assessing comparable market multiples in estimating the fair value of the Company. The income-based method is a discounted cash flow analysis and the significant estimates included expected growth rates, profitability and the weighted average cost of capital. The Company used an equal weighted average blend of these methods to assess its fair value. The results of those assessments indicated that the Company's fair value was in excess of the Company's book value and therefore its goodwill was not impaired as of June 30, 2025.
Previous report
Management will continue to monitor market conditions to determine if another triggering event has occurred. Should a triggering event occur, the Company will perform a quantitative assessment to estimate fair value.
Reworded paragraphs (32)
Previous wording
Three and Six Months Ended June 30, 2025 and 2024 Operating Results
Current wording
Three and Nine Months Ended September 30, 2025 and 2024 Operating Results
Previous wording
The following table summarizes our operating results for the three and six months ended June 30, 2025 and 2024 (in thousands):
Current wording
The following table summarizes our operating results for the three and nine months ended September 30, 2025 and 2024 (in thousands):
Previous wording
Three and Six Months Ended June 30, 2025, compared to Three and Six Months Ended June 30, 2024
Current wording
Three and Nine Months Ended September 30, 2025, compared to Three and Nine Months Ended September 30, 2024
Previous wording
There has been heightened uncertainty in the macroeconomic environment, especially as it relates to fluctuations in unemployment, inflation, tariffs, and consumer and business spending. There are also significant geopolitical concerns, including ongoing global conflicts, which have created extreme volatility in the global capital markets and are expected to have further global economic consequences, including disruptions of the global supply chain and energy markets. Any such volatility and disruptions may have adverse consequences on us or the third parties on whom we rely. If the equity and credit markets deteriorate, including as a result of political unrest or war, it may make any necessary debt or equity financing more difficult to obtain in a timely manner or on favorable terms, more costly or more dilutive. Inflation can adversely affect us by increasing our costs, including salary costs. Any significant increases in inflation and related increases in interest rates could have a material adverse effect on our business, results of operations and financial condition.
Current wording
There has been heightened uncertainty in the macroeconomic environment, especially as it relates to fluctuations in unemployment, inflation, tariffs, consumer and business spending, and government actions or inactions, including a prolonged federal government shutdown. There are also significant geopolitical concerns, including ongoing global conflicts, which have created extreme volatility in the global capital markets and are expected to have further global economic consequences, including disruptions of the global supply chain and energy markets. Any such volatility and disruptions may have adverse consequences on us or the third parties on whom we rely. If the equity and credit markets deteriorate, including as a result of political unrest or war, it may make any necessary debt or equity financing more difficult to obtain in a timely manner or on favorable terms, more costly or more dilutive. Inflation can adversely affect us by increasing our costs, including salary costs. Any significant increases in inflation and related increases in interest rates could have a material adverse effect on our business, results of operations and financial condition.
Previous wording
Operating expenses were $10.7 million and $11.8 million for the quarters ended June 30, 2025 and 2024, respectively. Operating expenses were $29.7 million and $23.9 million for the six months ended June 30, 2025 and 2024, respectively.
Current wording
Operating expenses were $10.4 million and $12.6 million for the quarters ended September 30, 2025 and 2024, respectively. Operating expenses were $40.1 million and $36.6 million for the nine months ended September 30, 2025 and 2024, respectively.
Previous wording
Operating expenses for the quarters ended June 30, 2025 and 2024 included depreciation and amortization of $1.3 million and $2.4 million, respectively. Operating expenses for the six months ended June 30, 2025 and 2024 included depreciation and amortization of $2.8 million and $4.7 million, respectively. The decrease in depreciation and amortization expense in 2025 is due primarily to lower customer relationship intangible asset balances being amortized.
Current wording
Operating expenses for the quarters ended September 30, 2025 and 2024 included depreciation and amortization of $1.3 million and $2.4 million, respectively. Operating expenses for the nine months ended September 30, 2025 and 2024 included depreciation and amortization of $4.1 million and $7.1 million, respectively. The decrease in depreciation and amortization expense in 2025 is due primarily to lower customer relationship intangible asset balances being amortized.
Previous wording
We recognized a $4.5 million loss on sale of assets in the six months ended June 30, 2025 ($61 thousand loss recognized in the three months ended June 30, 2025) resulting from the sale of the mall related business and additional post closing adjustments. See Note 3 to our condensed consolidated financial statements for further discussion.
Current wording
We recognized a $4.4 million loss on sale of assets in the nine months ended September 30, 2025 ($129 thousand gain recognized in the three months ended September 30, 2025) resulting from the sale of the mall-related business and additional post-closing adjustments. See Note 3 to our condensed consolidated financial statements for further discussion. In addition, we recognized a $23 thousand gain in the three and nine months ended September 30, 2025 on the sale of certain compactor and related equipment held at customer locations.
Previous wording
Interest expense was $2.4 million and $2.6 million for the quarters ended June 30, 2025 and 2024, respectively. Interest expense was $4.6 million and $5.1 million for the six months ended June 30, 2025 and 2024, respectively. The decrease is primarily due to lower interest rates, partially offset by increased borrowings under our revolving credit facility and our equipment term loan. We are amortizing debt issuance costs of $5.3 million and OID of $1.8 million to interest expense over the life of the related debt arrangements as discussed in Note 8 to our condensed consolidated financial statements.
Current wording
Interest expense was $2.4 million and $2.7 million for the quarters ended September 30, 2025 and 2024, respectively. Interest expense was $7.0 million and $7.8 million for the nine months ended September 30, 2025 and 2024, respectively. The decrease is primarily due to lower interest rates and lower borrowings under our revolving credit facility. We are amortizing debt issuance costs of $5.3 million and OID of $1.8 million to interest expense over the life of the related debt arrangements as discussed in Note 8 to our condensed consolidated financial statements.
Previous wording
We recorded an income tax benefit of $(22) thousand and a provision for income taxes of $684 thousand for the quarters ended June 30, 2025 and 2024, respectively. We recorded an income tax benefit of $(44) thousand and a provision for income taxes of $743 for the six months ended June 30, 2025 and 2024, respectively. The provision/(benefit) for income tax is primarily attributable to state tax obligations based on current estimated state tax income/(loss) multiplied by the state tax apportionment percentage for states with no net operating loss carryforwards.
Current wording
We recorded a provision for income taxes of $35 thousand and an income tax benefit of $(278) thousand for the quarters ended September 30, 2025 and 2024, respectively. We recorded an income tax benefit of $(9) thousand and a provision for income taxes of $465 thousand for the nine months ended September 30, 2025 and 2024, respectively. The provision/(benefit) for income tax is primarily attributable to state tax obligations based on current estimated state tax income/(loss) multiplied by the state tax apportionment percentage for states with no net operating loss carryforwards.
Previous wording
Net loss for the quarter ended June 30, 2025 was $(2.0) million, compared to net loss of $(1.5) million for the quarter ended June 30, 2024. Net loss for the six months ended June 30, 2025 was $(12.4) million, compared to net loss of $(2.2) million for the six months ended June 30, 2024. The explanations above detail the majority of the changes related to the change in net results.
Current wording
Net loss for the quarter ended September 30, 2025 was $(1.3) million, compared to net loss of $(3.4) million for the quarter ended September 30, 2024. Net loss for the nine months ended September 30, 2025 was $(13.7) million, compared to net loss of $(5.6) million for the nine months ended September 30, 2024. The explanations above detail the majority of the changes related to the change in net results.
Previous wording
Net loss per basic and diluted share attributable to common stockholders was $(0.09) and $(0.07) for the quarters ended June 30, 2025 and 2024, respectively. Net loss per basic and diluted share attributable to common stockholders was $(0.59) and $(0.11) for the six months ended June 30, 2025 and 2024, respectively.
Current wording
Net loss per basic and diluted share attributable to common stockholders was $(0.06) and $(0.16) for the quarters ended September 30, 2025 and 2024, respectively. Net loss per basic and diluted share attributable to common stockholders was $(0.66) and $(0.27) for the nine months ended September 30, 2025 and 2024, respectively.
Previous wording
The basic and diluted weighted average number of shares of common stock outstanding were approximately 20.9 million and 20.5 million for the three months ended June 30, 2025 and 2024, respectively. The basic and diluted weighted average number of shares of common stock outstanding were approximately 20.9 million and 20.4 million for the six months ended June 30, 2025 and 2024, respectively.
Current wording
The basic and diluted weighted average number of shares of common stock outstanding were approximately 21.0 million and 20.7 million for the three months ended September 30, 2025 and 2024, respectively. The basic and diluted weighted average number of shares of common stock outstanding were approximately 20.9 million and 20.5 million for the nine months ended September 30, 2025 and 2024, respectively.
Previous wording
For the three months ended June 30, 2025, Adjusted EBITDA (as defined below), a non-GAAP financial measure, decreased 47.8% to $2.7 million from $5.1 million for the three months ended June 30, 2024. For the six months ended June 30, 2025, Adjusted EBITDA decreased 58.7% to $4.2 million from $10.3 million for the same period in 2024.
Current wording
For the three months ended September 30, 2025, Adjusted EBITDA (as defined below), a non-GAAP financial measure, increased 15.9% to $2.9 million from $2.5 million for the three months ended September 30, 2024. For the nine months ended September 30, 2025, Adjusted EBITDA decreased 43.9% to $7.2 million from $12.8 million for the same period in 2024.
Previous wording
We use the non-GAAP measurement of earnings before interest, taxes, depreciation, amortization, stock-related compensation charges, and other adjustments, or “Adjusted EBITDA”, to evaluate our performance. Adjusted EBITDA is a non-GAAP measure that is also frequently used by analysts, investors and other interested parties to evaluate the market value of companies considered to be in similar businesses. We suggest that Adjusted EBITDA be viewed in conjunction with our reported financial results or other financial information prepared in accordance with GAAP.
Current wording
We use the non-GAAP measurement of earnings before interest, taxes, depreciation, amortization, stock-related compensation charges, and other adjustments, or “Adjusted EBITDA”, to evaluate our performance. Adjusted EBITDA is a non-GAAP measure that is frequently used by analysts, investors and other interested parties to evaluate the market value of companies considered to be in similar businesses. We suggest that Adjusted EBITDA be viewed in conjunction with our reported financial results or other financial information prepared in accordance with GAAP.
Previous wording
The following table reflects the reconciliation of net loss to Adjusted EBITDA for the three and six months ended June 30, 2025 and 2024 (in thousands):
Current wording
The following table reflects the reconciliation of net loss to Adjusted EBITDA for the three and nine months ended September 30, 2025 and 2024 (in thousands):
Previous wording
For the three months ended June 30, 2025, other adjustments primarily related to certain loan amendment costs and other professional fees. For the six months ended June 30, 2025, other adjustments primarily related to severance and retirement costs, certain loan amendment costs, and other professional fees. For the three and six months ended June 30, 2024, other adjustments included certain professional fees as well as certain administrative fees related to borrowings.
Current wording
For the three months ended September 30, 2025, other adjustments primarily related to certain loan amendment costs and other professional fees. For the nine months ended September 30, 2025, other adjustments primarily related to severance and retirement costs, certain loan amendment costs, and other professional fees. For the three and nine months ended September 30, 2024, other adjustments included certain professional fees as well as certain administrative fees related to borrowings.
Previous wording
Adjusted net income (loss), a non-GAAP financial measure, was $(0.8) million for the three months ended June 30, 2025, compared with $0.7 million for the three months ended June 30, 2024. Adjusted net income (loss) was $(3.7) million for the six months ended June 30, 2025, compared with $2.3 million for the six months ended June 30, 2024. We present adjusted net income (loss) and adjusted net income (loss) per diluted share, both non-GAAP financial measures, supplementally because they are widely used by investors as a valuation measure in the solid waste industry. Management uses adjusted net income (loss) and adjusted net income (loss) per diluted share as two of the principal measures to evaluate and monitor the ongoing financial performance of our operations. We provide adjusted net income (loss) to exclude the effects of items management believes impact the comparability of operating results between periods. Adjusted net income (loss) has limitations due to the fact that it excludes items that have an impact on our financial condition and results of operations. Adjusted net income (loss) and adjusted net income (loss) per diluted share are not a substitute for, and should be used in conjunction with, GAAP financial measures. Other companies may calculate these non-GAAP financial measures differently. Our adjusted net income (loss) and adjusted net income (loss) per diluted share for the three and six months ended June 30, 2025 and 2024 are calculated as follows (in thousands except per share amounts):
Current wording
Adjusted net income (loss), a non-GAAP financial measure, was $(0.4) million for the three months ended September 30, 2025, compared with $(1.1) million for the three months ended September 30, 2024. Adjusted net income (loss) was $(4.1) million for the nine months ended September 30, 2025, compared with $1.2 million for the nine months ended September 30, 2024. We present adjusted net income (loss) and adjusted net income (loss) per diluted share, both non-GAAP financial measures, supplementally because they are widely used by investors as a valuation measure in the solid waste industry. Management uses adjusted net income (loss) and adjusted net income (loss) per diluted share as two of the principal measures to evaluate and monitor the ongoing financial performance of our operations. We provide adjusted net income (loss) to exclude the effects of items management believes impact the comparability of operating results between periods. Adjusted net income (loss) has limitations due to the fact that it excludes items that have an impact on our financial condition and results of operations. Adjusted net income (loss) and adjusted net income (loss) per diluted share are not a substitute for, and should be used in conjunction with, GAAP financial measures. Other companies may calculate these non-GAAP financial measures differently. Our adjusted net income (loss) and adjusted net income (loss) per diluted share for the three and nine months ended September 30, 2025 and 2024 are calculated as follows (in thousands except per share amounts):
Previous wording
As of June 30, 2025, we had working capital of $16.9 million, including $0.4 million of cash and cash equivalents, compared with working capital of $30.7 million, including $0.4 million of cash and cash equivalents as of December 31, 2024. Working capital at December 31, 2024 included $8.1 million net assets held for sale which were sold in the first quarter of 2025.
Current wording
As of September 30, 2025, we had working capital of $13.2 million, including $1.1 million of cash and cash equivalents, compared with working capital of $30.7 million, including $0.4 million of cash and cash equivalents as of December 31, 2024. Working capital at December 31, 2024 included $9.9 million assets held for sale which were sold in the first quarter of 2025.
Previous wording
We believe our existing cash and cash equivalents of $0.4 million, our borrowing availability under our $45.0 million ABL Facility (as defined and discussed in Note 8 to our condensed consolidated financial statements), and cash expected to be generated from operations will be sufficient to fund our operations for the next 12 months and thereafter for the foreseeable future. Our known current- and long-term uses of cash include, among other possible demands, capital expenditures, lease payments and repayments to service debt and other long-term obligations. We have no agreements, commitments, or understandings with respect to any such placements of our securities and any such placements could be dilutive to our stockholders.
Current wording
We believe our existing cash and cash equivalents of $1.1 million, our borrowing availability under our $45.0 million ABL Facility (as defined and discussed in Note 8 to our condensed consolidated financial statements), and cash expected to be generated from operations will be sufficient to fund our operations for the next 12 months and thereafter for the foreseeable future. Our known current- and long-term uses of cash include, among other possible demands, capital expenditures, lease payments and repayments to service debt and other long-term obligations. We have no agreements, commitments, or understandings with respect to any such placements of our securities and any such placements could be dilutive to our stockholders.
Previous wording
The following discussion relates to the major components of our cash flows for the six months ended June 30, 2025 and 2024.
Current wording
The following discussion relates to the major components of our cash flows for the nine months ended September 30, 2025 and 2024.
Previous wording
Net cash provided by operating activities was $2.8 million for the six months ended June 30, 2025 compared with net cash used in operating activities of $(0.8) million for the six months ended June 30, 2024.
Current wording
Net cash provided by operating activities was $8.5 million for the nine months ended September 30, 2025, compared with net cash used in operating activities of $(1.3) million for the nine months ended September 30, 2024. This improvement reflects the optimization of working capital through streamlining processes in billing customers and paying vendors and initiatives in accounts receivable collections.
Previous wording
Net cash provided by operating activities for the six months ended June 30, 2025 related primarily to the net effect of the following:
Current wording
Net cash provided by operating activities for the nine months ended September 30, 2025 related primarily to the net effect of the following:
Previous wording
net loss of $(12.4) million, which includes a non-cash impairment loss of $1.7 million and a loss on sale of assets of $4.5 million;
Current wording
net loss of $(13.7) million, which includes a non-cash impairment loss of $1.7 million and a loss on sale of assets of $4.3 million;
Previous wording
other non-cash items of $5.3 million, which primarily related to depreciation, amortization of intangible assets and debt issuance costs, provision for doubtful accounts, and stock-based compensation; and
Current wording
other non-cash items of $7.8 million, which primarily related to depreciation, amortization of intangible assets and debt issuance costs, provision for doubtful accounts, and stock-based compensation; and
Previous wording
net cash provided by the net change in operating assets and liabilities of $3.7 million, primarily associated with relative changes in accounts receivable, accounts payable, and accrued liabilities.
Current wording
net cash provided by the net change in operating assets and liabilities of $8.3 million, primarily associated with relative changes in accounts receivable, accounts payable, and accrued liabilities.
Previous wording
Net cash used in operating activities for the six months ended June 30, 2024 related primarily to the net effect of the following:
Current wording
Net cash used in operating activities for the nine months ended September 30, 2024 related primarily to the net effect of the following:
Previous wording
non-cash items of $6.9 million, which primarily related to depreciation, amortization of intangible assets and debt issuance costs, provision for doubtful accounts, and stock-based compensation; and
Current wording
non-cash items of $10.8 million, which primarily related to depreciation, amortization of intangible assets and debt issuance costs, provision for doubtful accounts, and stock-based compensation; and
Previous wording
net cash used in the net change in operating assets and liabilities of $(5.6) million, primarily associated with relative changes in accounts receivable, accounts payable, and accrued liabilities. This includes an earn-out payment of $(1.0) million.
Current wording
net cash used in the net change in operating assets and liabilities of $(6.5) million, primarily associated with relative changes in accounts receivable, accounts payable, and accrued liabilities. This includes an earn-out payment of $(1.0) million.
Previous wording
Cash provided by investing activities for the six months ended June 30, 2025 was $4.2 million and primarily related to $5.0 million in proceeds from the sale of mall related business assets. Cash used in investing activities for the six months ended June 30, 2024 was $(4.8) million and primarily related to the purchase of $(3.1) million in compactors and related equipment. Other investing activities are primarily from purchases of intangible assets such as software development costs and other property and equipment.
Current wording
Cash provided by investing activities for the nine months ended September 30, 2025 was $3.9 million and primarily related to $5.0 million in proceeds from the sale of mall-related business assets. Cash used in investing activities for the nine months ended September 30, 2024 was $(5.2) million and primarily related to the purchase of compactors and related equipment. Other investing activities are primarily from purchases of intangible assets such as software development costs and other property and equipment.
Previous wording
Net cash used in financing activities for the six months ended June 30, 2025 was $(7.0) million, primarily from $3.5 million in repayments of notes payable with proceeds from sale of assets as further discussed in Note 3 to our condensed consolidated financial statements and net repayments of $2.8 million on our ABL Facility. Net cash provided by financing activities for the six months ended June 30, 2024 was $6.3 million, primarily from net borrowings of $4.0 million on our ABL Facility and $2.5 million borrowings from our PNC equipment term loan. See Note 8 to our condensed consolidated financial statements for a discussion of the ABL Facility and other notes payable.
Current wording
Net cash used in financing activities for the nine months ended September 30, 2025 was $(11.7) million, primarily from $4.7 million in repayments of notes payable and net repayments of $7.0 million on our ABL Facility. Net cash provided by financing activities for the nine months ended September 30, 2024 was $7.3 million, primarily from net borrowings of $5.3 million on our ABL Facility and $2.5 million borrowings from our PNC equipment term loan. See Note 8 to our condensed consolidated financial statements for a discussion of the ABL Facility and other notes payable.
Previous wording
Although the overall economy has experienced some inflationary pressures, we do not believe that inflation had a material impact on us during the six months ended June 30, 2025 and 2024. We believe that volatility in costs, such as fuel, labor, and certain capital items, can be addressed by our flexible pricing structures and cost recovery fees allowing us to recover certain of the cost of inflation from our customer base. Consistent with industry practice, many of our contracts allow us to pass through certain costs to our customers or adjust pricing. Although we believe that we should be able to offset many cost increases that result from inflation in the ordinary course of business, we may be required to absorb at least part of these costs increases due to competitive pressures or delays in timing of rate increases. Although we have not been materially affected by inflation in the past, we can provide no assurance that we will not be affected in the future by higher rates of inflation and increases in interest rates.
Current wording
Although the overall economy has experienced some inflationary pressures, we do not believe that inflation had a material impact on us during the nine months ended September 30, 2025 and 2024. We believe that volatility in costs, such as fuel, labor, and certain capital items, can be addressed by our flexible pricing structures and cost recovery fees allowing us to recover certain of the cost of inflation from our customer base. Consistent with industry practice, many of our contracts allow us to pass through certain costs to our customers or adjust pricing. Although we believe that we should be able to offset many cost increases that result from inflation in the ordinary course of business, we may be required to absorb at least part of these costs increases due to competitive pressures or delays in timing of rate increases. Although we have not been materially affected by inflation in the past, we can provide no assurance that we will not be affected in the future by higher rates of inflation and increases in interest rates.
Previous wording
Our discussion and analysis of our financial condition and results of operations are based on our condensed consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of our condensed consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue, expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, we evaluate our estimates, including those related to areas that require a significant level of judgment or are otherwise subject to an inherent degree of uncertainty. These areas include carrying amounts of accounts receivable, goodwill and other intangible assets, stock-based compensation expense, and deferred taxes. We base our estimates on historical experience, our observance of trends in particular areas, and information or valuations and various other assumptions that we believe to be reasonable under the circumstances and which form the basis for making judgments about the carrying value of assets and liabilities that may not be readily apparent from other sources. Actual amounts could differ significantly from amounts previously estimated. For a discussion of our critical accounting policies, refer to Part II, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our 2024 Annual Report. There have been no significant changes in our critical accounting policies during the six months ended June 30, 2025, except as follows:
Current wording
Our discussion and analysis of our financial condition and results of operations are based on our condensed consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of our condensed consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue, expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, we evaluate our estimates, including those related to areas that require a significant level of judgment or are otherwise subject to an inherent degree of uncertainty. These areas include carrying amounts of accounts receivable, goodwill and other intangible assets, stock-based compensation expense, and deferred taxes. We base our estimates on historical experience, our observance of trends in particular areas, and information or valuations and various other assumptions that we believe to be reasonable under the circumstances and which form the basis for making judgments about the carrying value of assets and liabilities that may not be readily apparent from other sources. Actual amounts could differ significantly from amounts previously estimated. For a discussion of our critical accounting policies, refer to Part II, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our 2024 Annual Report. There have been no significant changes in our critical accounting policies during the nine months ended September 30, 2025.