What we Spotted this Week

The tech industry is undergoing rapid transformation, a move that is expected to affect adjacent sectors like ITAD and the behavior of users like IT management. Evidence of this rapid transformation is this past quarter’s leading tech manufacturers reporting record revenue growth, essentially driven by cloud, AI and services, while the volume of electronic waste (e-waste) continues to climb.

As ITAD and recycling companies sit at the nexus of this cycle, this roundup is meant to help Compliance Standards clients from the sectors of ITAD, electronic recycling, tech OEMs and corporate IT/security departments, navigate the current landscape with brief reads. This report highlights mega-trends spotted during the week by our analysts, especially the meteoric rise of artificial intelligence.

Latest Tech Earnings: Growth Engines and Their Implications

Cloud, AI and Services Dominate Tech Growth

• While there were pockets of strong hardware sales last quarter, last week’s earnings showed further evidence of a continued brisk move toward all-things AI. Microsoft reported fiscal 2025 Q4 revenue of $29.9 billion for its Intelligent Cloud segment, up 26% year-over-year. Azure revenue jumped 39%, underscoring the demand for cloud infrastructure and the rapid deployment of AI models.
• For its part, Amazon posted Q2 FY2025 North American sales of $100 billion and international sales of $36.8 billion. Its AWS segment grew a solid 17.5% to $30.9 billion, also buoyed by AI workloads. Operating margin in the retail business remained thin compared with the high-margin AWS unit.
• Double-digit growth in iPhone, Mac and Services provided Apple with revenue record in the June quarter. Services revenue encompasses App Store, iCloud and Apple Music, which revenue hitting an all-time high, as the company seeks to up its recurring income stream model.
• Meta also beat expectations, delivering second-quarter revenue of $47.52 billion. The company emphasized its AI-powered advertising and content tools. Investments in AI personnel are driving costs but also enabling new products.
• For its part, Qualcomm diversified beyond smartphone chipsets; saw its automotive revenue growing 21% and IoT revenue up 24%. Management highlighted AI processing at the edge as a growth driver.

How to Interpret these Trends

1. Hardware demand remains healthy, but services and AI are the real engines of the tech sector and of the broad economy. Tech OEMs are seeing strong unit shipments, judging by iPhones and Macs sales, yet there is an even larger boost from subscription services. For ITADs, we expect to see a steady stream of used AI equipment probably within three years as hardware refresh cycles accelerate to make way for better AI-enabled devices.
2. High demand for Cloud and the resulting growth drives data-center hardware turnover. The boom in cloud services and AI training means hyperscale providers continually upgrade servers, GPUs and networking gear. ITAD companies with solid go-to-market strategies should seek ways to strengthen relationships with data-center operators to secure decommissioned hardware and engage in high-margin secondary markets.
3. AI in security and supply chains: AI is improving device security, predictive maintenance and supply-chain efficiency. We have been recommending ITAD industry leaders invest in AI-assisted sorting, automated asset tracking and intelligent remarketing platforms to remain competitive. This should be considered a priority because ISMS adoption in large enterprises is accelerating under AI and that could create problems for ITAD firms that are not prepared.

Electronics Recycling and E-Waste Sector: The Circularity Equation

Waste-Management Leaders Show Profitability and Scale

As part of our research efforts to understand broader market trends, we also track environmental and waste-management services. Companies in this sector generated robust earnings while emphasizing their recycling and renewable-energy businesses. These trends signal that the ITAD sector and electronics recycling are likely trending in the same way as environmental and waste management services.  For instance:

• WM posted Q2 FY2025 revenue of $6.43 billion and operating EBITDA of $1.86 billion. Recycling Processing and Renewable Energy segments contributed significantly to EBITDA growth.
• Waste Connections delivered Q2 revenue of $2.407 billion and adjusted EBITDA of $786 million. The company reaffirmed full-year revenue guidance near $9.45 billion.
• GFL Environmental reported Q2 revenue of $1.68 billion, a 5.9% increase, and achieved a record adjusted EBITDA margin of 30.7%. The firm raised its full-year revenue and EBITDA guidance.
• Casella Waste Systems grew Q2 revenue 23.4% to $465.3 million while increasing adjusted free cash flow to $70.8 million.

While the details of their earnings may not be critically important for our clients, it is important to note that  their results are indicative of solid performances for companies that are able to connect sustainability to profitability. In their case, these companies are able to turn waste into energy, capturing methane, and processing recyclables at scale, successfully highlight the value of circular business models in the PR and communications campaigns, a strategy that ITAD companies should replicate.

Metals and Battery Recyclers Navigate Volatility

• Closer to the ITAD sector is Sims Limited’s Sims Lifecycle Services division, which posted approximately 70% EBIT growth due to demand for cloud server decommissioning and IT asset disposition.
• Europe’s Umicore returned to profitability in H1 2025, generating adjusted EBITDA of €190 million from its Recycling unit, which processes electronic scrap and precious metals.
• Canada’s Li-Cycle Holdings recorded FY2024 revenue of $28 million but faces financing challenges for its lithium-ion battery recycling hub.

Crypto‑Mining Dynamics in 1H 2025. Does that Even Matter?

The crypto mining downturn in early 2025 is creating an oversupply of mid generation ASIC rigs, which will depress resale values throughout the year. ITAD firms should treat these units primarily as recycling fodder, focusing on materials recovery rather than expecting high margins. At the same time, miners and AI operators are soaking up most high-end GPUs, so the secondary market for premium graphics cards is likely to remain tight. Companies that can refurbish and certify GPUs may find a profitable niche, but sourcing inventory will be a challenge.

On the security front, because crypto mining rigs often carry firmware and configuration data, secure data erasure and a clear chain of custody are essential. The shift from bitcoin mining to AI/HPC hosting also creates a service opportunity: some operators will need help retiring old ASIC fleets and building new GPU clusters, offering business for ITAD providers with decommissioning and infrastructure build capabilities. Overall, unless cryptocurrency prices rebound sharply, the flood of mining hardware should be viewed as a short-term recycling opportunity; the more durable growth will come from processing AI, cloud, and enterprise equipment entering the secondary market.

Regulatory Watch

E-waste regulations around the world are tightening. While the EU’s Waste Electrical and Electronic Equipment (WEEE) Directive has set collection and recycling targets, in the U.S., the Right-to-Repair movement is gaining traction this year with five states passing six new bills, landmark legislation signed in Washington, and newly passed bills in Oregon, Nevada, Texas, and Connecticut awaiting governors’ approval. More right-to-repair mandates and recycled-content requirements are likely. This opens interesting new opportunities for ITAD providers, such as investing in repair capabilities and traceable material recovery.

Sustainability and ESG: Where Do Enterprises Stand?

Integration Over Isolation

Despite the political headwinds, we see that corporate sustainability leaders are shifting from narrow ESG programs to integrated business strategies. Focus areas now include biodiversity, water stewardship, supply-chain transparency, climate strategy and AI’s role in sustainability. Companies are emphasizing sustainability storytelling and embedding ESG considerations into core operations rather than treating them as separate commitments.

But in the sustainability debate, political and ideological considerations have been a major factor in shaping sustainability trends.  Some argue that the obsession with quantifying the ROI of sustainability has distorted priorities. There is no single universal business case; value depends on sector, geography and material issues. While some firms have pulled back on spending, most are realigning sustainability with broader business priorities rather than abandoning them. U.S. firms are more likely than their European or Asian peers to debate the business case.

The AI Path

Despite the importance of sustainability, a recent survey found that many CEOs are shifting focus from sustainability to AI, growth and inflation. While consumers are deeply concerned about climate change, corporate boardrooms are prioritizing other issues. Experts warn that ignoring sustainability could erase trillions in market value.

Meanwhile, generative AI and large-language models require massive compute power, increasing electricity and water use. Data centers could emit 2.5 billion tons of CO2 by 2030. This will drive demand for renewable energy, advanced cooling, and carbon-free computing. In this context, we expect rapid AI hardware turnover, fueling demand for refurbishment, resale, and green ITAD solutions like asset-level carbon tracking.

New Research.

In the week starting August 4, 2025, Compliance Standards is releasing a report titled:

“ITAD Certifications Under Scrutiny: Governance,
Accountability, and the Path to Enterprise Credibility.”
[Access It Here]

The central thesis of this report is that amid an ongoing debate over the value of ITAD certifications and despite their importance, we conclude that the existing certification frameworks are not sufficient on their own to meet enterprise-grade risk, governance, and compliance expectations. While they may address the need of ITAD companies to demonstrate that they abide by best practice, their enterprise clients are looking elsewhere.

The report neither assesses nor does it focus on the contents of the certifications, but instead it looks at their static format and how they are managed and perceived. We conclude that to remain relevant, not only must the certification bodies reform their policies, management style and structures, but they also must evolve beyond operational checklists into visible, auditable, and ISMS-aligned trust mechanisms that integrate with enterprise risk frameworks such as ISO 27001 and SOC 2.

What Does this Report Cover: This report analyzes the growing disconnect between widely used ITAD certifications (R2v3, e-Stewards, NAID AAA) and the evolving risk, audit, and compliance expectations of enterprise clients. It explores the aftermath of recent data breaches and challenges certifiers to elevate governance standards, audit transparency, and breach accountability.

Why It Matters: As enterprise buyers adopt zero-trust frameworks and demand ISO 27001/SOC 2-aligned assurance, traditional ITAD certifications risk becoming irrelevant unless reformed. The report introduces a 4-tier ITAD maturity model and a Certification Transparency Index to guide buyers and vendors alike.

Intended Audience:

• ITAD providers seeking enterprise credibility
• CISOs and procurement leaders evaluating vendor risk
• Certification bodies at a strategic crossroads
• ESG and compliance officers navigating third-party liability

Client Access Here