Quest Resource Holding Corporation

Thank you for standing by and welcome to Trust Resource Holding Corporation second quarter 2026 earnings call. I'd like to remind everyone that this call is being recorded and that all lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed with the number one on your telephone keypad. If you would like to withdraw your question, press star 1 again. Thank you. I would now like to turn the call over to Nick Nelson, Alpha IR Group. Please go ahead.

Thank you, operator, and thank you, everyone, for joining us for Quest Resources' second quarter 2026 earnings call. Before we begin, we'd like to remind everyone that this conference call may contain predictions, estimates, and other forward-looking statements regarding future events or future performance of the company. use of words like anticipate, project, estimate, expect, intend, believe, and other similar expressions are intended to identify those forward-looking statements. Such forward-looking statements are based on the company's current expectations, estimates, projections, beliefs, and assumptions and involve significant risks and uncertainties. Actual events or the company's results could differ materially from those discussed in the forward-looking statements as a result of various factors which are discussed in greater detail in the company's filings with the Securities and Exchange Commission. You are cautioned not to place undue reliance on such statements and to consult SEC filings for additional risks and uncertainties. The company's forward-looking statements are presented as of the date made and the company undertakes no obligation to update such statements unless required by law to do so. In addition, this call may include industry and market data and their statistical information, as well as the company's observations and views about industry conditions and developments. The data and information are based on the company's estimates, independent publications, government publications, and reports by market research firms and other sources. Although Quest believes these sources are reliable and the data and other information are accurate. We caution that Quest has not independently verified the reliability of the sources or the accuracy of the information. Certain non-GAAP financial measures will be disclosed during this call. These non-GAAP measures are used by management to make strategic decisions, forecast future results and evaluate the company's current performance. Management believes the presentation of these non-GAAP financial measures is useful to investors' understanding and assessment of the company's ongoing core operations and prospects for the future. Unless it is stated otherwise, it should be assumed that any financials discussed in this call will be on a non-GAAP basis. Full reconciliations of non-GAAP to GAAP financial measures are included in today's earnings release. With that, I'd like to turn the call over to Perry Moss, Chief Executive Officer.

Perry Moss Thanks, Nick, and thanks, everyone, for joining this afternoon. Quest delivered a solid quarter of results as the sequential improvements in momentum we experienced in the first quarter carried forward into the second period. We returned to top line revenue and adjusted EBITDA growth compared to both the prior year and the prior quarter. This was supported by the growing contributions of recent customer wins and wallet share expansions, stabilizing volumes from our industrial customers and on-going productivity improvements across the business. We're encouraged by this progress, but understand that the macro environment remains complex and at times uneven. Within our industrial portfolio, we also saw positive trends carry forward into Q2. This drove sequential volume improvements as well as meaningful year-over-year growth from some of our largest customers. That said, volumes still remain subdued relative to a few years ago at a few select accounts and are likely the new norm. We will continue to monitor the broader macro environment closely. Given how the first half of the year played out, we're cautiously optimistic that our industrial portfolio has stabilized. The non-industrial portion of the portfolio, meanwhile, continues to perform as well as or better than expected as we've grown meaningfully in markets like food service, retail, hospitality, and more. The comprehensive efforts we have taken over the past several quarters designed to streamline our operations, diversify the business, and improve productivity levels are clearly showing results. I'm incredibly proud of the entire Quest team for their hard work and commitment through this period and the way they've bought into the changes we've implemented. While there remains significant work to be done, we are encouraged by what appears to be a gradually improving operating environment, as well as the wins our initiatives are delivering. We're mindful that these trends can shift, so we're staying disciplined rather than getting ahead of ourselves. Along those lines, we'll continue to seek ways to drive incremental improvements in the business through our operational excellence initiatives, effectively control our cost structure, and ensure the business is well positioned to drive stronger financial results going forward. Moving to specific results for the period, revenue in the second quarter grew by 8% compared to the prior year and 4% sequentially. That growth was driven by a renewed sales and go-to-market effort that elevated our focus on non-industrial markets as well as wallet share opportunities across our existing portfolio. With the internal tools and processes we've implemented to better identify, track, and close these opportunities, the results have followed. Over the past four quarters, we've successfully onboarded several new customer wins. Importantly, as I've noted earlier, Many of these wins are outside the industrial sector and are helping diversify the portfolio. They include a customer in the food products market, a large restaurant chain, a large retailer, and one of the largest franchisees in the quick service restaurant industry. At the same time, we've landed several new wallet share gains with existing customers, including an expansion with an existing retail customer, the addition of several hundred new locations with a customer in the automotive services and market, and expansions with two other major customers. More recently, in the second quarter, we landed four new share wallet wins, including a significant one with a large national automotive parts retailer. Each of these wins over the past year is helping create a better balance across our portfolio and demonstrates both the capability of our sales team and the appeal of the Quest model across markets. We also continue to expand our sales pipeline during the period. Our pipeline remains healthy and we're engaged with several promising opportunities to add large national brands to our portfolio. Some of these opportunities are in markets that are new for Quest, which would further diversify our customer list and provide incremental offsets to the seasonally slower periods for many of our industrial customers. That said, many of these companies are also actively monitoring the current macroeconomic backdrop which is elongating the sales cycle. We like our positioning but the timing on closing these opportunities will ultimately depend on how quickly these companies gain confidence in the broader environment. Operationally, we continue to execute well and I believe we're operating more efficiently than at any point in my time here. Brett and his team have done a terrific job optimizing our cost structure, improving our cash cycle and reducing debt. which will put us on firmer financial footing as volumes improve. Some of this is already evident in the strong flow through of our sequential gross profit gains to adjusted EBITDA in the most recent quarter. On the cost side, diesel prices have risen amid geopolitical events around the world, yet Quest has experienced only a limited impact on our financials through this extended period of elevated prices. We view this as a good proof point for our model and its relative resilience to short-term commodity fluctuations, as well as our ability to use our scale to push back on cost increases where we can or to pass through unavoidable costs to our customers. Lastly, we continue to evolve our organizational structure and make personnel changes to attract, develop, and retain the best team possible. This holds true across the organization from sales and key accounts to IT, finance and more. We made some exciting changes so far this year through the addition of high quality talent in key areas and we'll keep finding ways to put the team in the best position to succeed and serve our customers. Looking ahead, our priorities remain focused on growing the business with new and existing customers driving margin improvements, continuing the development of our operating platform, improving cash generation, and reducing our debt balance. With that, I'd like to turn the call over to Brett to review our second quarter financial results in greater detail. Brett?