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Business Breakdowns

Quest Resource Holdings Corp (QRHC) - An Asset-Light Waste and Recycling Services Provider

Quest’s unit economics improve with scale because Quest can effectively reduce service costs to its customers, which drives incremental business, creating the flywheel.

I join Greg Kitt and Jordan Salim from the Pinnacle Family Office to have a conversation with CEO Ray Hatch of Quest Resource Holding Corporation (QRHC).

Quest Resource Holding Corp (QRHC) is an asset-light waste and recycling services provider benefitting from increased interest to divert waste away from the landfill because of external regulatory drivers and internal ESG mandates. Quest boasts long standing relationships with a diversified base of blue chip customers, and provides data and reporting to customers to meet internal ESG and regulatory requirements. QRHC diverts 80% of waste away from the landfill by recovering the salvage value for these commodities, meaning customers benefit from increased landfill diversion, reduced operational complexity, and modest cost savings. Quest’s waste hauler partners gain access to large volume waste generator customers that they could not otherwise win. These waste haulers benefit from high margin incremental volume and offer Quest attractive pricing in exchange for these large, dependable customers.

Quest’s business has true flywheel effects. Quest’s unit economics improve with scale because Quest can effectively reduce service costs to its customers, which drives incremental business, creating the flywheel. Scale drives network effects that improve QRHC’s value proposition to customers and haulers.

This MicroCap Business Breakdowns discussion aired on August 22nd on the MicroCapClub Community. You can see further discussion on QRHC on our community.

MicroCap Business Breakdowns (MCBB) is a monthly program where we invite leaders of unique microcap businesses to have in depth conversations with the MicroCapClub member/investor that knows the business best. In each conversation we look to drill down into the history, business, strategy, vision, and bull/bear case. The MicroCapClub community can tune in live and ask questions. We publicize each episode two weeks after the live discussion. Not part of the MicroCapClub community? Join Us.

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