Should you sell your Questor Technology stock?

As reported by the Globe and Mail, Acumen Capital analyst Trevor Reynolds lowered his target on Questor Technology (Questor Technology Stock Quote, Chart, News, Analysts, Financials TSX:QST) to $0.55 from $0.75 on April 22following fourth-quarter 2025 results that came in below his expectations and the announced departure of president and CEO Audrey Mascarenhas, maintaining a “Hold” rating.

“The focus near term remains on QST’s ability to execute on projected international sales and rental agreements,” Reynolds said. “Overall, management remains highly optimistic on the outlook for Mexico along with Nigeria, Libya, and Iraq, but acknowledge that commissioning and start-ups have taken much longer than originally anticipated.”

Questor reported fourth-quarter revenue of $730,527, down from $1.78-million a year earlier, while gross profit fell to $50,863 from $595,405. Adjusted EBITDA was negative $687,806, compared with roughly break-even in the prior-year period, while net loss was $1.08-million, or $0.04 per share, compared with a loss of $1.04-million, or $0.04 per share, a year earlier.

For full-year 2025, revenue rose to $6.80-million from $4.52-million, while gross profit increased to $2.66-million from $1.23-million. Adjusted EBITDA improved to negative $324,024 from negative $1.45-million, and net loss narrowed to $1.62-million, or $0.06 per share, from $3.23-million, or $0.12 per share.

The Calgary-based clean combustion technology company said the increase in full-year revenue was driven mainly by growth in international equipment sales, reflecting its strategy to diversify revenue streams globally. Fourth-quarter revenue, however, was hurt by longer sales cycles on international projects and low utilization of rental units in the United States.

Questor also said commissioning of clean combustion units delivered to Iraq, Libya and Nigeria has now been pushed into the first half of 2026 after further project delays.

Fourth-quarter gross margin fell to 7% from 34%, reflecting lower sales volumes, weak U.S. rental utilization and fixed operating costs that stayed largely unchanged. For the full year, gross margin improved to 39% from 27%, helped by higher-margin equipment sales, including the sale of units previously used in the rental fleet.

Adjusted EBITDA for the year improved on stronger international equipment sales, better margins and ongoing cost controls, but fourth-quarter profitability weakened on lower sales and rental activity.

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