HireQuest Reports Financial Results for Second Quarter 2026
Rhea-AI Summary
HireQuest (Nasdaq: HQI) reported second quarter 2026 revenue of $8.1 million, up 6.0% year-over-year; pro forma for the MRINetwork Assets Divestiture, revenue rose 16.6%. Franchise royalties were $7.6 million, up 4.1% (13.8% pro forma). SG&A fell 31.9% to $4.0 million, supporting a sharp profit increase.
Net income for Q2 2026 was $2.7 million, or $0.19 per diluted share, versus $1.1 million, or $0.08, a year earlier. Adjusted net income was $3.2 million and adjusted EBITDA $4.6 million, both up from 2025. System-wide sales were $117.8 million versus $125.9 million, but increased 6.9% pro forma. Year-to-date 2026 net income reached $4.3 million ($0.31 per diluted share). Cash was $1.6 million, total assets $93.4 million, and total liabilities $24.5 million, with approximately $41.0 million available under the line of credit. According to HireQuest, a quarterly dividend of $0.06 per share was paid on June 15, 2026.
Positive
- Total Q2 2026 revenue $8.1M, up 6.0% year-over-year; 16.6% pro forma growth
- Q2 2026 net income $2.7M vs. $1.1M in 2025; diluted EPS $0.19 vs. $0.08
- Q2 2026 adjusted EBITDA $4.6M vs. $3.3M in 2025; year-to-date $7.3M vs. $6.1M
- SG&A expenses down 31.9% in Q2 2026 to $4.0M; year-to-date down 25.7%
- System-wide sales pro forma up 6.9% in Q2 and 3.6% year-to-date 2026
- Quarterly cash dividend of $0.06 per share paid June 15, 2026; intent to continue
- Line of credit availability approximately $41.0M as of June 30, 2026
Negative
- Reported system-wide sales down to $117.8M in Q2 2026 from $125.9M in 2025
- Year-to-date 2026 total revenue $14.6M vs. $15.1M in 2025, a 3.2% decrease
- Cash balance declined to $1.6M at June 30, 2026 from $3.9M at December 31, 2025
- Total liabilities increased to $24.5M at June 30, 2026 from $19.9M at December 31, 2025
News Explained
HireQuest paid a
AI-generated analysis. How Rhea-AI works. Not financial advice.
Rick Hermanns, HireQuest's President and Chief Executive Officer, commented, "Our second quarter results were underscored by a stabilizing job market and recovering demand environment for temporary staffing services. We generated year-over-year revenue growth and significantly enhanced profitability compared with the second quarter of 2025.
"Looking ahead, we believe our franchisees are well positioned to capture demand as market conditions improve, and employers prioritize access to flexible, skilled labor. We remain confident in our long-term strategy and our ability to deliver consistently profitable results and enhanced value for our shareholders," Mr. Hermanns concluded.
Second Quarter 2026 Review
Franchise royalties in the second quarter of 2026 were
Total revenue in the second quarter of 2026 was
SG&A expenses in the second quarter of 2026 were
Depreciation and amortization in the second quarter of 2026 was approximately
Interest and other financing expense in the second quarter of 2026 was approximately
Net income in the second quarter of 2026 was
Adjusted net income for the second quarter of 2026 was
Adjusted EBITDA for the second quarter of 2026 was
System-wide sales for the second quarter of 2026 were
Year-To-Date 2026 Review
Franchise royalties for the six months ended June 30, 2026 were
Total revenue was
SG&A expenses in the first six months of 2026 were
Depreciation and amortization in the first six months of 2026 was approximately
Interest and other financing for the six months ended June 30, 2026 was approximately
Net income in the year-to-date period for 2026 was
Adjusted net income for the six-month period was
Adjusted EBITDA for the six months ended June 30, 2026 was
System-wide sales for the first six months of 2026 were
Balance Sheet and Capital Structure
Cash was
Working capital as of June 30, 2026, was
As of June 30, 2026, assuming continued covenant compliance, availability under the line of credit was approximately
On June 15, 2026, the Company paid a quarterly cash dividend of
Conference Call
HireQuest will hold a conference call to discuss its financial results.
Date: | Monday, August 10, 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: | 669011 |
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/2359/54263 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, August 24, 2026.
Toll-free replay number: | 877-481-4010 |
International replay number: | 919-882-2331 |
Replay passcode: | 54263 |
About HireQuest
HireQuest is a franchisor of staffing solutions with a footprint across the U.S. and international markets. Through its primary divisions - HireQuest Direct, HireQuest Health, Snelling, TradeCorp and DriverQuest - the company delivers temporary, direct-hire, and contract workforce solutions across a wide range of industries, including construction, light industrial, healthcare, finance, manufacturing, hospitality, logistics and more. From on-demand staffing to direct hire recruiting, HireQuest's divisions work together to provide workforce solutions that help businesses grow and create meaningful opportunities for the communities we serve. For more information, visit www.hirequest.com
Important Cautions Regarding Forward-Looking Statements
This news release includes and our directors and officers may make certain estimates and other forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act, and Section 21E of the Exchange Act, including, among others, statements with respect to future revenue, franchise sales, system-wide sales, net income and Adjusted EBITDA (a non-GAAP Financial Measure); operating results; dividends and shareholder returns; anticipated benefits and synergies of any proposed transaction and future opportunities, including statements regarding value, profitability or growth prospects, cost synergies of any merger or acquisitions including those we have completed in 2023 and 2024; intended office openings or closings; expectations of the effect on our financial condition of claims and litigation; strategies for customer retention and growth; strategies for risk management; and all other statements that are not purely historical and that may constitute statements of future expectations. Forward-looking statements can be identified by words such as: "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will," and similar references to future periods.
While we believe these statements are accurate, forward-looking statements are not historical facts and are inherently uncertain. They are based only on our current beliefs, expectations, and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy, and other future conditions. We cannot assure you that these expectations will materialize, and our 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 us include the following: the level of demand in and financial performance of the temporary staffing and permanent placement industry; the financial performance of our 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 extent to which we are 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; workers' compensation expenses that fluctuate from period to period based on the mix of classifications, the level of payroll, recent claims resolution, and cumulative experience; 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 and permanent placement industry and those arising from the action or inaction of our franchisees and temporary employees; strategic actions, including acquisitions and dispositions and our success in integrating acquired businesses including, without limitation, successful integration following the acquisitions of Ready Temporary Staffing, TEC Staffing Services, MRI Network, Snelling Staffing, LINK, Recruit Media, Dental Power, Temporary Alternatives, Inc., and subsequent or smaller 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; disruptions to our technology network including computer systems and software whether resulting from a cyber-attack or otherwise; natural events such as pandemics, severe weather, fires, floods, and earthquakes, or man-made or other disruptions of our operating systems or the economy including by war or political turmoil; and the factors discussed in the "Risk Factors" section and elsewhere in our Annual Report on Form 10-K filed with the SEC.
Any forward-looking statement made by us in this news release is based only on information currently available to us and speaks only as of the date on which it is made. The Company disclaims 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-U.S. GAAP Financial Measures
This document contains supplemental financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). Management uses these non-U.S. GAAP measures in its analysis of the Company's performance. These measures should not be considered a substitute for U.S. GAAP basis measures nor should they be viewed as a substitute for operating results determined in accordance with U.S. GAAP. Management believes the presentation of non-U.S. GAAP financial measures that exclude the impact of specified items provide useful supplemental information that is essential to a proper understanding of the Company's financial condition and results. Non-U.S. GAAP measures are not formally defined under U.S. GAAP, and other entities may use calculation methods that differ from those used by us. As a complement to U.S. GAAP financial measures, our management believes these non-U.S. GAAP financial measures assist investors in comparing the financial condition and results of operations of financial institutions due to the industry prevalence of such non-U.S. GAAP measures. See the tables below for a reconciliation of these non-U.S. GAAP measures to the most directly comparable U.S. GAAP financial measures.
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
HireQuest | ||||||||
(in thousands, except share and par value data) | June 30, 2026 | December 31, | ||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash | $ | 1,640 | $ | 3,895 | ||||
Accounts receivable, net of allowance of | 48,856 | 39,281 | ||||||
Notes receivable | 1,001 | 1,073 | ||||||
Prepaid expenses, deposits, and other assets | 3,026 | 3,249 | ||||||
Prepaid workers' compensation | 812 | 848 | ||||||
Total current assets | 55,335 | 48,346 | ||||||
Property and equipment, net | 3,964 | 4,050 | ||||||
Workers' compensation claims payment deposit | 1,273 | 1,128 | ||||||
Franchise agreements, net | 16,336 | 17,242 | ||||||
Other intangible assets, net | 6,439 | 6,980 | ||||||
Goodwill | 1,633 | 1,633 | ||||||
Investment in unconsolidated affiliate | 635 | - | ||||||
Deferred tax asset | 1,526 | 1,868 | ||||||
Other assets | 410 | 279 | ||||||
Notes receivable, net of current portion and allowance of | 5,148 | 5,599 | ||||||
Intangible asset held for sale | 672 | 1,102 | ||||||
Total assets | $ | 93,371 | $ | 88,227 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 377 | $ | 192 | ||||
Other current liabilities | 2,015 | 2,186 | ||||||
Accrued payroll, benefits, and payroll taxes | 1,767 | 1,800 | ||||||
Due to franchisees | 11,602 | 7,004 | ||||||
Risk management incentive program liability | 1,778 | 1,237 | ||||||
Workers' compensation claims liability | 2,689 | 2,929 | ||||||
Total current liabilities | 20,228 | 15,348 | ||||||
Workers' compensation claims liability, net of current portion | 2,000 | 2,232 | ||||||
Franchisee deposits | 2,287 | 2,326 | ||||||
Total liabilities | 24,515 | 19,906 | ||||||
Commitments and contingencies (Note 11) | ||||||||
Stockholders' equity | ||||||||
Preferred stock - | - | - | ||||||
Common stock - | 14 | 14 | ||||||
Additional paid-in capital | 37,604 | 37,222 | ||||||
Treasury stock, at cost - 0 and 48,849 shares, respectively | - | (146) | ||||||
Retained earnings | 31,238 | 31,231 | ||||||
Total stockholders' equity | 68,856 | 68,321 | ||||||
Total liabilities and stockholders' equity | $ | 93,371 | $ | 88,227 | ||||
HireQuest | ||||||||||||||||
(in thousands, except per share data) | June 30, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 | ||||||||||||
Franchise royalties | $ | 7,586 | $ | 7,284 | $ | 13,647 | $ | 14,245 | ||||||||
Service revenue | 513 | 354 | 975 | 866 | ||||||||||||
Total revenue | 8,099 | 7,638 | 14,622 | 15,111 | ||||||||||||
Selling, general and administrative expenses | 3,994 | 5,861 | 8,263 | 11,117 | ||||||||||||
Depreciation and amortization | 762 | 734 | 1,540 | 1,469 | ||||||||||||
Income from operations | 3,343 | 1,043 | 4,819 | 2,525 | ||||||||||||
Other miscellaneous income | 5 | 28 | 22 | 159 | ||||||||||||
Interest income | 118 | 129 | 218 | 262 | ||||||||||||
Gain on divestiture | - | - | 248 | - | ||||||||||||
Interest and other financing expense | (30) | (71) | (38) | (214) | ||||||||||||
Net income before income taxes | 3,436 | 1,129 | 5,269 | 2,732 | ||||||||||||
Provision for income taxes | 684 | 56 | 948 | 224 | ||||||||||||
Net income from continuing operations | 2,752 | 1,073 | 4,321 | 2,508 | ||||||||||||
Loss from discontinued operations, net of tax | (60) | (13) | (69) | (85) | ||||||||||||
Net income | $ | 2,692 | $ | 1,060 | $ | 4,252 | $ | 2,423 | ||||||||
Basic earnings (loss) per share | ||||||||||||||||
Continuing operations | $ | 0.20 | $ | 0.08 | $ | 0.31 | $ | 0.18 | ||||||||
Discontinued operations | - | - | - | (0.01) | ||||||||||||
Total | $ | 0.20 | $ | 0.08 | $ | 0.31 | $ | 0.17 | ||||||||
Diluted earnings (loss) per share | ||||||||||||||||
Continuing operations | $ | 0.20 | $ | 0.08 | $ | 0.31 | $ | 0.18 | ||||||||
Discontinued operations | (0.01) | - | - | (0.01) | ||||||||||||
Total | $ | 0.19 | $ | 0.08 | $ | 0.31 | $ | 0.17 | ||||||||
Weighted average shares outstanding | ||||||||||||||||
Basic | 13,786 | 13,938 | 13,829 | 13,932 | ||||||||||||
Diluted | 13,810 | 13,990 | 13,845 | 14,001 | ||||||||||||
HireQuest | ||||||||||||||||
Three months ended | Six months ended | |||||||||||||||
(in thousands) | June 30, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 | ||||||||||||
Net income | $ | 2,692 | $ | 1,060 | $ | 4,252 | $ | 2,423 | ||||||||
Interest expense | 30 | 71 | 38 | 214 | ||||||||||||
Provision for income taxes | 684 | 56 | 948 | 224 | ||||||||||||
Depreciation and amortization | 762 | 734 | 1,540 | 1,469 | ||||||||||||
EBITDA | 4,168 | 1,921 | 6,778 | 4,330 | ||||||||||||
WOTC related costs | 69 | 165 | 173 | 315 | ||||||||||||
Non-cash compensation | 212 | 240 | 360 | 479 | ||||||||||||
Gain on divestiture | - | - | (248) | - | ||||||||||||
Acquisition related charges, net | - | 929 | - | 846 | ||||||||||||
Write down of notes receivable | 164 | - | 215 | 103 | ||||||||||||
Adjusted EBITDA | $ | 4,613 | $ | 3,255 | $ | 7,278 | $ | 6,073 | ||||||||
HireQuest | |||||||
Three months ended | Six months ended | ||||||
(in thousands, except per share data) | June 30, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 | |||
Net income | $ 2,692 | $ 1,060 | $ 4,252 | $ 2,423 | |||
Amortization of acquired intangibles | 567 | 539 | 1,134 | 1,080 | |||
Gain on divestiture | - | - | (248) | - | |||
Acquisition related charges, net | - | 929 | - | 846 | |||
Write down of notes receivable | 164 | - | 215 | 103 | |||
Tax effect of adjustments (1) | (190) | (382) | (286) | (528) | |||
Adjusted net income | $ 3,233 | $ 2,146 | $ 5,067 | $ 3,924 | |||
Adjusted net income per diluted share | $ 0.23 | $ 0.15 | $ 0.37 | $ 0.28 | |||
Weighted average diluted shares outstanding | 13,810 | 13,990 | 13,845 | 14,001 | |||
(1) the tax effect includes the application of our estimated combined statutory rate of | |||||||
HireQuest | ||||||||
Three months ended | Six months ended | |||||||
(in thousands) | June 30, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 | ||||
Core SG&A | $ 3,791 | $ 4,735 | $ 7,970 | $ 9,766 | ||||
Net workers' compensation expense (benefit) | 39 | 127 | 78 | 155 | ||||
MRINetwork advertising fund expenses | - | 70 | - | 144 | ||||
Acquisition related charges (1) | - | 929 | - | 949 | ||||
Impairment of notes receivable | 164 | - | 215 | 103 | ||||
SG&A | $ 3,994 | $ 5,861 | $ 8,263 | $ 11,117 | ||||
(1) Acquisition related charges, for purposes of calculating Core SG&A, only includes expenses categorized as SG&A and does not include gains or losses associated with the sale of franchise businesses which are categorized as other miscellaneous income. | ||||||||
View original content to download multimedia:https://www.prnewswire.com/news-releases/hirequest-reports-financial-results-for-second-quarter-2026-302847469.html
SOURCE HireQuest