With the business potentially at an important milestone, we thought we'd take a closer look at Quest Resource Holding Corporation's (NASDAQ:QRHC) future prospects. Quest Resource Holding Corporation, together with its subsidiaries, provides solutions for the reuse, recycling, and disposal of various waste streams and recyclables in the United States. On 31 December 2024, the US$60m market-cap company posted a loss of US$15m for its most recent financial year. As path to profitability is the topic on Quest Resource Holding's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

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According to the 3 industry analysts covering Quest Resource Holding, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$1.6m in 2026. So, the company is predicted to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 124% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for Quest Resource Holding given that this is a high-level summary, though, take into account that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Check out our latest analysis for Quest Resource Holding

Before we wrap up, there’s one issue worth mentioning. Quest Resource Holding currently has a debt-to-equity ratio of 144%. Typically, debt shouldn’t exceed 40% of your equity, and the company has considerably exceeded this. Note that a higher debt obligation increases the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on Quest Resource Holding, so if you are interested in understanding the company at a deeper level, take a look at Quest Resource Holding's company page on Simply Wall St. We've also compiled a list of pertinent aspects you should further research:

1. Valuation: What is Quest Resource Holding worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Quest Resource Holding is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Quest Resource Holding’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.