Greg Kitt's questions to Quest Resource Holding Corp (QRHC) leadership • Q2 2025
Question
Greg Kitt of Pinnacle Family Office sought more detail on management's confidence in improving Days Sales Outstanding (DSO), the timeline for optimizing margins on new business, and clarification on whether the weakness in the industrial segment was due to cyclical volume declines or customer losses.
Answer
CFO Brett Johnston attributed his confidence in DSO improvement to daily cash management focus, progress on billing accrued AR, and tighter collections. CEO Perry Moss clarified that taking lower margins is a tactic for specific renewals, not new business, which is being onboarded at higher margins than last year. Moss definitively stated that the industrial weakness is purely a volume issue with no loss of any industrial clients or service lines. Chairman Daniel Friedberg reinforced that the core strategy remains value-added margin expansion.