HireQuest Reports Financial Results for Fourth Quarter and Full Year 2025
Rhea-AI Summary
HireQuest (Nasdaq: HQI) reported fourth-quarter and full-year 2025 results on March 30, 2026. Full-year revenue fell to $30.6M from $34.6M (-11.4%), while net income rose to $6.3M ($0.45/sh) from $3.7M ($0.26/sh). System-wide sales declined to $500.2M (-11.3%).
The company said it is now debt free, increased cash to $3.9M, reduced liabilities to $19.9M, authorized a $20M share repurchase, and declared a quarterly dividend of $0.06 per share.
Positive
- Net income increased to $6.3M in 2025 (+70% vs 2024)
- Cash balance grew to $3.9M as of December 31, 2025
- Total liabilities decreased to $19.9M from $29.2M
- Board authorized a $20M share repurchase program
- Company declared a $0.06 quarterly cash dividend
Negative
- Total revenue declined to $30.6M in 2025 (-11.4% YoY)
- System-wide sales fell to $500.2M in 2025 (-11.3% YoY)
- Adjusted EBITDA dropped to $14.1M in 2025 (-13.0% vs 2024)
- Franchise royalties decreased to $29.0M in 2025 (-11.3% YoY)
News Market Reaction – HQI
In the Mar 31 session, HQI gained 1.94%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Nov 06 | Q3 2025 earnings | Positive | +15.5% | Return to profitability with higher net and adjusted income despite lower revenue. |
| Aug 07 | Q2 2025 earnings | Negative | -1.0% | Revenue, net income, and system-wide sales all declined year-over-year. |
| May 08 | Q1 2025 earnings | Negative | -2.6% | Broad declines in revenue, royalties, system-wide sales, and EBITDA versus 2024. |
| Mar 27 | FY/Q4 2024 earnings | Neutral | -9.1% | Mixed quarter with lower revenue but improved net income and reduced expenses. |
| Nov 07 | Q3 2024 earnings | Negative | +2.5% | One-time MRINetwork impairment drove net loss despite revenue and EBITDA growth. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings releases often trigger meaningful moves for HQI, with reactions sometimes diverging when results mix revenue declines with one-off items or profitability swings.
Over the past five earnings reports from Nov 2024 to Nov 2025, HireQuest has repeatedly reported revenue pressure and system-wide sales declines, but generally remained profitable and continued paying a $0.06 quarterly dividend. Market reactions have varied: strong gains followed the profitable Q3 2025 print (+15.53%), while mixed or weaker quarters, such as Q4 2024 and Q1–Q2 2025, saw negative moves. Today’s full-year 2025 results fit into this narrative of managing profitability against a softer demand backdrop.
Key Terms
adjusted net income financial
adjusted EBITDA financial
system-wide sales financial
working capital financial
line of credit financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Rick Hermanns, HireQuest's President and Chief Executive Officer, commented, "We remained solidly profitable in both the fourth quarter and full year of 2025 and are now debt free despite what has been three consecutive years of challenging economic environments for the staffing industry.
"During the fourth quarter, we made a strategic change to the ownership structure of MRINetwork to more effectively engage our global executive search brand, transitioning majority ownership of the executive search piece of the business to a leadership group comprised of current and former MRINetwork franchise owners," Mr. Hermanns continued. "With this change we've aligned the brand's executive search leadership with experienced franchise owner-operators who live its mission each day. HireQuest retains the contract staffing portion of MRINetwork which closely aligns with our other franchise brands. We will continue to provide shared services, scale advantages, and integrated staffing-and-recruiting solutions with the goal of enhancing value for the MRINetwork brand and its owners.
"In December, we announced that our Board of Directors approved a share repurchase program authorizing the Company to repurchase up to
"Looking ahead, we're seeing a stabilizing job market in 2026 that won't be defined by a hiring boom or bust, but more by balance. Our customers are prioritizing flexibility, fit, and skilled work that simply can't be automated, and we're ideally positioned with our franchise staffing model to meet those demands," Mr. Hermanns concluded.
Fourth Quarter 2025 Review
Franchise royalties in the fourth quarter of 2025 were
Total revenue in the fourth quarter of 2025 was
SG&A expenses in the fourth quarter of 2025 were
Depreciation and amortization in the fourth quarter of 2025 was approximately
Interest and other financing expense in the fourth quarter of 2025 was approximately
Net income in the fourth quarter of 2025 was
Adjusted net income for the fourth quarter of 2025 was
Adjusted EBITDA for the fourth quarter of 2025 was
System-wide sales for the fourth quarter of 2025 decreased
Full Year 2025 Review
Franchise royalties for the full year were
Total revenue was
SG&A expenses for the full year were
Interest and other financing expense for the full year was approximately
Net income in full year 2025 was
Adjusted net income in 2025 was
Adjusted EBITDA for full year 2025 was
System-wide sales in full year 2025 decreased
Balance Sheet and Capital Structure
Cash was
Working capital as of December 31, 2025, was
As of December 31, 2025, assuming continued covenant compliance, availability under the line of credit was approximately
On March 16, 2026, the Company paid a quarterly cash dividend of
Conference Call
HireQuest will hold a conference call to discuss its financial results.
Date: | Monday, March 30, 2026 |
Time: | 4:30 p.m. Eastern Time |
Toll-free dial-in number: | 888-506-0062 |
International dial-in number: | 973-528-0011 |
Entry code: | 600699 |
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization.
The conference call will be broadcast live and available for replay at https://www.webcaster5.com/Webcast/Page/2359/53661 and via the investor relations section of HireQuest's website at https://hirequest.com/.
A replay of the conference call will be available through Monday, April 13, 2026.
Toll-free replay number: | 877-481-4010 |
International replay number: | 919-882-2331 |
Replay passcode: | 53661 |
About HireQuest
HireQuest is a franchisor of staffing solutions with a presence across the
Important Cautions Regarding Forward-Looking Statements
This news release includes, and the company's officers and other representatives may sometimes make or provide certain estimates and other forward-looking statements within the meaning of the safe harbor provisions of the
While the company believes these statements are accurate, forward-looking statements are not historical facts and are inherently uncertain. They are based only on the company's current beliefs, expectations, and assumptions regarding the future of its business, future plans and strategies, projections, anticipated events and trends, the economy, and other future conditions. The company cannot assure you that these expectations will occur, and its actual results may be significantly different. Therefore, you should not place undue reliance on these forward-looking statements. Important factors that may cause actual results to differ materially from those contemplated in any forward-looking statements made by the company include the following: the level of demand and financial performance of the temporary staffing industry; the financial performance of the company's franchisees; our franchisees' and our customers' ability to navigate successfully the challenges posed by instability in the financial and capital markets and the overall economic environment including the impact of increases in the price of oil and gas and any potential recession; changes in customer demand; the relative success or failure of acquisitions and new franchised offerings; our success in reducing workers' compensation expenses; the extent to which the company is successful in gaining new long-term relationships with customers or retaining existing ones, and the level of service failures that could lead customers to use competitors' services; significant investigative or legal proceedings including, without limitation, those brought about by the existing regulatory environment or changes in the regulations governing the temporary staffing industry and those arising from the action or inaction of the company's franchisees and temporary employees; strategic actions, including acquisitions and dispositions and the company's success in integrating acquired businesses including, without limitation, successful integration following any of our various acquisitions; the possibility that any strategic target will not agree to consummate a transaction or that any such transaction is consummated on different terms than currently anticipated; the possibility that conditions to the completion of a proposed transaction, including the receipt of any required shareholder approvals and any required regulatory approvals, will not be met; the possibility that we may be unable to achieve expected synergies and operating efficiencies within an expected time frame or at all and to successfully integrate any acquired operations with ours; the possibility that such integration may be more difficult, time-consuming, or costly than expected, or that operating costs, customer loss and business disruption (including, without limitation, difficulties in maintaining relationships with employees, customers, or suppliers) may be greater than expected following a proposed transaction or the public announcement of a proposed transaction success or failure in determining how to allocate capital; disruptions to the company's technology network including computer systems and software; natural events such as severe weather, fires, floods, and earthquakes, or man-made or other disruptions of the company's operating systems; and the factors discussed in the "Risk Factors" section and elsewhere in the company's most recent Annual Report on Form 10-K and the quarterly reports on Form 10-Q filed thereafter.
Any forward-looking statement made by the company or its management in this news release is based only on information currently available to the company and speaks only as of the date on which it is made. The company and its management disclaim any obligation to update or revise any forward-looking statement, whether written or oral, that may be made from time to time, based on the occurrence of future events, the receipt of new information, or otherwise, except as required by law.
Non-
This document contains supplemental financial information determined by methods other than in accordance with accounting principles generally accepted in
Company Contact:
HireQuest
David Hartley, Chief Financial Officer
(800) 835-6755
Email: cdhartley@hirequest.com
Investor Relations Contact:
IMS Investor Relations
John Nesbett/Jennifer Belodeau
(203) 972-9200
Email: hirequest@imsinvestorrelations.com
- Tables Follow -
HireQuest Consolidated Balance Sheets | ||||
(in thousands except share and par value data) | December 31, 2025 | December 31, 2024 | ||
ASSETS | ||||
Current assets | ||||
Cash | $ 3,895 | $ 2,219 | ||
Accounts receivable, net of allowance of | 39,281 | 42,348 | ||
Notes receivable | 1,073 | 1,166 | ||
Prepaid expenses, deposits, and other assets | 3,249 | 2,413 | ||
Prepaid workers' compensation | 848 | 1,094 | ||
Total current assets | 48,346 | 49,240 | ||
Property and equipment, net | 4,050 | 4,149 | ||
Workers' compensation claim payment deposit | 1,128 | 1,127 | ||
Franchise agreements, net | 17,242 | 19,737 | ||
Other intangible assets, net | 6,980 | 8,442 | ||
Goodwill | 1,633 | 1,633 | ||
Deferred tax asset | 1,868 | 2,073 | ||
Other assets | 279 | 57 | ||
Notes receivable, net of current portion and allowance of | 5,599 | 6,664 | ||
Intangible assets held for sale | 1,102 | 891 | ||
Total assets | $ 88,227 | $ 94,013 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Current liabilities | ||||
Accounts payable | $ 192 | $ 174 | ||
Line of credit | - | 6,829 | ||
Term loans payable | - | 88 | ||
Other current liabilities | 2,186 | 2,018 | ||
Accrued wages, benefits and payroll taxes | 1,800 | 2,557 | ||
Due to franchisees | 7,004 | 7,579 | ||
Risk management incentive program liability | 1,237 | 1,252 | ||
Workers' compensation claims liability | 2,929 | 3,599 | ||
Total current liabilities | 15,348 | 24,096 | ||
Workers' compensation claims liability, net of current portion | 2,232 | 2,707 | ||
Franchisee deposits | 2,326 | 2,406 | ||
Total liabilities | 19,906 | 29,209 | ||
Commitments and contingencies (Note 12) | ||||
Stockholders' equity | ||||
Preferred stock - | - | - | ||
Common stock - | 14 | 14 | ||
Additional paid-in capital | 37,222 | 36,286 | ||
Treasury stock, at cost - 48,849 shares and 43,849 shares, respectively | (146) | (146) | ||
Retained earnings | 31,231 | 28,650 | ||
Total stockholders' equity | 68,321 | 64,804 | ||
Total liabilities and stockholders' equity | $ 88,227 | $ 94,013 | ||
HireQuest Consolidated Statement of Income | |||||||
Three months ended (unaudited) | Twelve months ended | ||||||
(in thousands, except per share data) | December 31, 2025 | December 31, 2024 | December 31, 2025 | December 31, 2024 | |||
Franchise royalties | $ 6,640 | $ 7,644 | $ 28,995 | $ 32,673 | |||
Service revenue | 392 | 439 | 1,645 | 1,925 | |||
Total revenue | 7,032 | 8,083 | 30,640 | 34,598 | |||
Selling, general and administrative expenses | 4,489 | 5,120 | 20,676 | 21,406 | |||
Goodwill and intangible asset impairment charge | 444 | - | 674 | 6,035 | |||
Depreciation and amortization | 787 | 697 | 3,008 | 2,789 | |||
Income from operations | 1,312 | 2,266 | 6,282 | 4,368 | |||
Other miscellaneous income | 28 | 133 | 223 | 145 | |||
Interest income | 118 | 132 | 511 | 556 | |||
Interest and other financing expense | (30) | (160) | (307) | (923) | |||
Net income before income taxes | 1,428 | 2,371 | 6,709 | 4,146 | |||
Provision (benefit) for income taxes | (262) | 49 | 100 | 221 | |||
Net income from continuing operations | 1,690 | 2,322 | 6,609 | 3,925 | |||
Loss from discontinued operations, net of tax | (87) | (102) | (279) | (253) | |||
Net income | $ 1,603 | $ 2,220 | $ 6,330 | $ 3,672 | |||
Basic earnings per share | |||||||
Continuing operations | $ 0.12 | $ 0.17 | $ 0.47 | $ 0.29 | |||
Discontinued operations | (0.01) | (0.01) | (0.02) | (0.02) | |||
Total | $ 0.11 | $ 0.16 | $ 0.45 | $ 0.27 | |||
Diluted earnings per share | |||||||
Continuing operations | $ 0.12 | $ 0.17 | $ 0.47 | $ 0.28 | |||
Discontinued operations | (0.01) | (0.01) | (0.02) | (0.02) | |||
Total | $ 0.11 | $ 0.16 | $ 0.45 | $ 0.26 | |||
Weighted average shares outstanding | |||||||
Basic | 14,005 | 13,900 | 13,957 | 13,838 | |||
Diluted | 14,021 | 13,987 | 13,979 | 13,920 | |||
HireQuest Non- | |||||||
Three months ended (unaudited) | Twelve months ended | ||||||
(in thousands) | December 31, 2025 | December 31, 2024 | December 31, 2025 | December 31, 2024 | |||
Net income | $ 1,603 | $ 2,220 | $ 6,330 | $ 3,672 | |||
Interest and other financing expense | 30 | 160 | 307 | 983 | |||
Provision (benefit) for income taxes | (262) | 49 | 100 | 221 | |||
Depreciation and amortization | 787 | 697 | 3,008 | 2,789 | |||
EBITDA | 2,158 | 3,126 | 9,745 | 7,665 | |||
WOTC related costs | 192 | 157 | 692 | 483 | |||
Non-cash compensation | 112 | 510 | 936 | 1,759 | |||
Goodwill and intangible asset impairment | 562 | - | 892 | 6,035 | |||
Acquisition related charges, net | 110 | (138) | 1,240 | (27) | |||
Impairment of notes receivable | 229 | 150 | 582 | 275 | |||
Adjusted EBITDA | $ 3,363 | $ 3,805 | $ 14,087 | $ 16,190 | |||
HireQuest Non- (unaudited) | |||||||
Three months ended | Twelve months ended | ||||||
(in thousands, except per share data) | December 31, 2025 | December 31, 2024 | December 31, 2025 | December 31, 2024 | |||
Net income | $ 1,603 | $ 2,220 | $ 6,330 | $ 3,672 | |||
Amortization of acquired intangibles | 591 | 541 | 2,229 | 2,160 | |||
Goodwill and intangible asset impairment charge | 562 | - | 892 | 6,035 | |||
Acquisition related charges, net | 110 | (138) | 1,240 | (27) | |||
Impairment of notes receivable | 229 | 150 | 582 | 275 | |||
Tax effect of adjustments (1) | (388) | (144) | (1,285) | (2,195) | |||
Adjusted net income | $ 2,707 | $ 2,629 | $ 9,988 | $ 9,920 | |||
Adjusted net income per diluted share | $ 0.19 | $ 0.19 | $ 0.71 | $ 0.71 | |||
Weighted average diluted shares outstanding | 14,021 | 13,987 | 13,979 | 13,920 | |||
(1) the tax effect includes the application of our estimated combined statutory rate of | |||||||
HireQuest Non- (unaudited) | |||||||
Three months ended | Twelve months ended | ||||||
(in thousands) | December 31, 2025 | December 31, 2024 | December 31, 2025 | December 31, 2024 | |||
Core SG&A | $ 4,061 | $ 4,691 | $ 18,504 | $ 18,816 | |||
Net workers' compensation expense (benefit) | 33 | 335 | 89 | 1,953 | |||
MRINetwork advertising fund expenses | 56 | 82 | 261 | 389 | |||
Acquisition related charges, net | 110 | (138) | 1,240 | (27) | |||
Impairment of notes receivable | 229 | 150 | 582 | 275 | |||
SG&A | $ 4,489 | $ 5,120 | $ 20,676 | $ 21,406 | |||
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SOURCE HireQuest