HireQuest Reports Financial Results for Third Quarter 2025
Rhea-AI Summary
HireQuest (Nasdaq:HQI) reported third-quarter 2025 results for the period ended September 30, 2025. Q3 total revenue was $8.5M, down 9.8% year-over-year; franchise royalties were $8.1M. The company recorded Q3 net income $2.3M ($0.16 per diluted share) versus a loss of $(2.2M) a year earlier; adjusted net income was $3.4M ($0.24 per diluted share). Adjusted EBITDA for Q3 was $4.7M. System-wide sales declined 10.1% in Q3 to $133.6M and 11.9% year-to-date to $377.9M. Cash was $1.1M and working capital was $31.5M as of September 30, 2025. The company paid a $0.06 quarterly cash dividend on September 15, 2025, and expects to hold a conference call on November 6, 2025 at 4:30 p.m. ET.
Positive
- Q3 net income of $2.3M versus $(2.2M) year-ago
- Q3 adjusted net income $3.4M; EPS $0.24 diluted
- Working capital increased to $31.5M from $25.1M
- Available credit capacity approximately $42.5M
- Maintained quarterly cash dividend of $0.06 per share
Negative
- Q3 total revenue down 9.8% to $8.5M
- System-wide sales down 10.1% in Q3 to $133.6M
- YTD total revenue down 11.0% to $23.6M
- Adjusted EBITDA declined YTD from $12.3M to $10.7M
- Cash balance fell to $1.1M from $2.2M at year-end
News Market Reaction
On the day this news was published, HQI declined 3.24%, reflecting a moderate negative market reaction. Argus tracked a trough of -17.0% from its starting point during tracking. Our momentum scanner triggered 2 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $5M from the company's valuation, bringing the market cap to $141M at that time.
Data tracked by StockTitan Argus on the day of publication.
GOOSE CREEK, SC / ACCESS Newswire / November 6, 2025 / HireQuest, Inc. (Nasdaq:HQI), a national franchisor of on-demand staffing and executive search services, today reported financial results for the third quarter ended September 30, 2025.
Rick Hermanns, HireQuest's President and Chief Executive Officer, commented, "The U.S. staffing industry continued to contend with a muted hiring landscape in the third quarter, as employers maintained a wait and see approach to their hiring activities. Nonetheless, we remain solidly profitable thanks to the strength of our franchise model and our disciplined expense management throughout the business.
"Despite continued macroeconomic uncertainty weighing on top-line performance in the third quarter, there were some bright spots across our franchisee network, particularly in temporary and day labor staffing. Even in executive search and permanent placement, which has experienced a sharper downturn over the past ten quarters, our current franchisees have started to see some improvement in recent months. Importantly, we have 25 years of experience successfully and profitably operating through all types of economic cycles and remain focused on supporting our franchisees and customers, continuing to expand our geographic footprint and leveraging our proven business model so that we are well positioned to drive improved profitability as the market improves," Mr. Hermanns concluded.
Third Quarter 2025 Review
Franchise royalties in the third quarter of 2025 were
Total revenue in the third quarter of 2025 was
SG&A expenses in the third quarter of 2025 were
Depreciation and amortization in the third quarter of 2025 was approximately
Interest and other financing expense in the third quarter of 2025 was approximately
Net income in the third quarter of 2025 was
Adjusted net income for the quarter was
Adjusted EBITDA for the third quarter of 2025 was
System-wide sales for the third quarter of 2025 decreased
Year-To-Date 2025 Review
Franchise royalties for the nine months ended September 30, 2025, were
Total revenue was
SG&A expenses in the first nine months of 2025 were
Interest and other financing expense for the nine months ended September 30, 2025, was approximately
Net income in the year-to-date period for 2025 was
Adjusted net income for the nine month period was
Adjusted EBITDA for the nine months ended September 30, 2025, was
System-wide sales for the first nine months of 2025 decreased
Balance Sheet and Capital Structure
Cash was
Working capital as of September 30, 2025, was
As of September 30, 2025, assuming continued covenant compliance, availability under the line of credit was approximately
On September 15, 2025, the Company paid a quarterly cash dividend of
Conference Call
HireQuest will hold a conference call to discuss its financial results.
Date: | Thursday, November 6, 2025 |
Time: | 4:30 p.m. Eastern Time |
Toll-free dial-in number: | 888-506-0062 |
International dial-in number: | 973-528-0011 |
Entry code: | 893459 |
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/2359/53081 and via the investor relations section of HireQuest's website at https://hirequest.com/.
A replay of the conference call will be available through Thursday, November 20, 2025.
Toll-free replay number: | 877-481-4010 |
International replay number: | 919-882-2331 |
Replay passcode: | 53081 |
About HireQuest
HireQuest is a franchisor of staffing solutions with a presence across the U.S. and international markets. Through its primary divisions - HireQuest Direct, HireQuest Health, MRINetwork, Snelling, and TradeCorp - the company provides temporary, direct-hire, and contract staffing solutions across industries, including construction, light industrial, healthcare, finance, manufacturing, cybersecurity, and engineering. From on-demand staffing to executive search, HireQuest's divisions operate as one team for our customers - delivering workforce solutions that drive growth and change lives. For more information, visit www.hirequest.com
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 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 economic conditions, future revenue or sales and the growth thereof; operating results; anticipated benefits of acquisitions, or the status of integration of those entities; the declaration, or not, of future dividends; and other similar statements. 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 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; changes in customer demand; economic uncertainty caused by macroeconomic trends including potential inflation or a recessionary environment; uncertainty in the supply chain or economy caused by Russia's invasion of Ukraine, the war between Israel and Palestine, or other global conflict; 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; 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-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, Inc.
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, Inc.
Consolidated Balance Sheets
(unaudited)
(in thousands, except par value data) | September 30, 2025 | December 31, 2024 | ||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash | $ | 1,102 | $ | 2,219 | ||||
Accounts receivable, net of allowance of | 46,937 | 42,348 | ||||||
Notes receivable | 1,364 | 1,166 | ||||||
Prepaid expenses, deposits, and other assets | 3,190 | 2,413 | ||||||
Prepaid workers' compensation | 1,279 | 1,094 | ||||||
Total current assets | 53,872 | 49,240 | ||||||
Property and equipment, net | 4,078 | 4,149 | ||||||
Workers' compensation claims payment deposit | 1,253 | 1,127 | ||||||
Franchise agreements, net | 18,442 | 19,737 | ||||||
Other intangible assets, net | 7,400 | 8,442 | ||||||
Goodwill | 1,633 | 1,633 | ||||||
Deferred tax asset | 1,948 | 2,073 | ||||||
Other assets | 37 | 57 | ||||||
Notes receivable, net of current portion and allowance of | 5,488 | 6,664 | ||||||
Intangible asset held for sale - discontinued operations | 791 | 891 | ||||||
Total assets | $ | 94,942 | $ | 94,013 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 399 | $ | 174 | ||||
Line of credit | 2,203 | 6,829 | ||||||
Term loan payable | - | 88 | ||||||
Other current liabilities | 2,067 | 2,018 | ||||||
Accrued payroll, benefits, and payroll taxes | 1,861 | 2,557 | ||||||
Due to franchisees | 11,644 | 7,579 | ||||||
Risk management incentive program liability | 1,027 | 1,252 | ||||||
Workers' compensation claims liability | 3,212 | 3,599 | ||||||
Total current liabilities | 22,413 | 24,096 | ||||||
Workers' compensation claims liability, net of current portion | 2,302 | 2,707 | ||||||
Franchisee deposits | 2,400 | 2,406 | ||||||
Total liabilities | 27,115 | 29,209 | ||||||
Stockholders' equity | ||||||||
Preferred stock - | - | - | ||||||
Common stock - | 14 | 14 | ||||||
Additional paid-in capital | 37,110 | 36,286 | ||||||
Treasury stock, at cost - 49 shares | (146 | ) | (146 | ) | ||||
Retained earnings | 30,849 | 28,650 | ||||||
Total stockholders' equity | 67,827 | 64,804 | ||||||
Total liabilities and stockholders' equity | $ | 94,942 | $ | 94,013 | ||||
HireQuest, Inc.
Consolidated Statement of Income
(unaudited)
Three months ended | Nine months ended | |||||||||||||||
(in thousands, except per share data) | September 30, 2025 | September 30, 2024 | September 30, 2025 | September 30, 2024 | ||||||||||||
Franchise royalties | $ | 8,110 | $ | 8,988 | $ | 22,355 | $ | 25,029 | ||||||||
Service revenue | 387 | 428 | 1,253 | 1,486 | ||||||||||||
Total revenue | 8,497 | 9,416 | 23,608 | 26,515 | ||||||||||||
Selling, general and administrative expenses | 5,070 | 5,379 | 16,187 | 16,286 | ||||||||||||
Goodwill and intangible asset impairment charge | 230 | 6,035 | 230 | 6,035 | ||||||||||||
Depreciation and amortization | 752 | 697 | 2,221 | 2,092 | ||||||||||||
Income (loss) from operations | 2,445 | (2,695 | ) | 4,970 | 2,102 | |||||||||||
Other miscellaneous income (expense) | 35 | (65 | ) | 195 | 12 | |||||||||||
Interest income | 131 | 138 | 393 | 424 | ||||||||||||
Interest and other financing expense | (63 | ) | (268 | ) | (277 | ) | (763 | ) | ||||||||
Net income (loss) before income taxes | 2,548 | (2,890 | ) | 5,281 | 1,775 | |||||||||||
Provision for (benefit from) income taxes | 137 | (725 | ) | 362 | 172 | |||||||||||
Net income (loss) from continuing operations | 2,411 | (2,165 | ) | 4,919 | 1,603 | |||||||||||
Loss from discontinued operations, net of tax | (107 | ) | (42 | ) | (192 | ) | (152 | ) | ||||||||
Net income (loss) | $ | 2,304 | $ | (2,207 | ) | $ | 4,727 | $ | 1,451 | |||||||
Basic earnings (loss) per share | ||||||||||||||||
Continuing operations | $ | 0.17 | $ | (0.16 | ) | $ | 0.35 | $ | 0.12 | |||||||
Discontinued operations | - | - | (0.01 | ) | (0.01 | ) | ||||||||||
Total | $ | 0.17 | $ | (0.16 | ) | $ | 0.34 | $ | 0.11 | |||||||
Diluted earnings (loss) per share | ||||||||||||||||
Continuing operations | $ | 0.17 | $ | (0.16 | ) | $ | 0.35 | $ | 0.11 | |||||||
Discontinued operations | (0.01 | ) | - | (0.01 | ) | (0.01 | ) | |||||||||
Total | $ | 0.16 | $ | (0.16 | ) | $ | 0.34 | $ | 0.10 | |||||||
Weighted average shares outstanding | ||||||||||||||||
Basic | 13,959 | 13,834 | 13,941 | 13,817 | ||||||||||||
Diluted | 13,976 | 13,834 | 13,962 | 13,907 | ||||||||||||
HireQuest, Inc.
Non-U.S. GAAP - Reconciliation of Net Income to Adjusted EBITDA
(unaudited)
Three months ended | Nine months ended | |||||||||||||||
(in thousands) | September 30, 2025 | September 30, 2024 | September 30, 2025 | September 30, 2024 | ||||||||||||
Net income (loss) | $ | 2,304 | $ | (2,207 | ) | $ | 4,727 | $ | 1,451 | |||||||
Interest expense | 63 | 268 | 277 | 763 | ||||||||||||
Provision for (benefit from) income taxes | 137 | (725 | ) | 362 | 172 | |||||||||||
Depreciation and amortization | 752 | 697 | 2,221 | 2,092 | ||||||||||||
EBITDA | 3,256 | (1,967 | ) | 7,587 | 4,478 | |||||||||||
WOTC related costs | 186 | 134 | 500 | 326 | ||||||||||||
Non-cash compensation | 345 | 549 | 824 | 1,249 | ||||||||||||
Goodwill and intangible asset impairment charge | 330 | 6,035 | 330 | 6,035 | ||||||||||||
Acquisition related charges, net | 284 | 100 | 1,130 | 111 | ||||||||||||
Write down of note receivable | 250 | 75 | 353 | 125 | ||||||||||||
Adjusted EBITDA | $ | 4,651 | $ | 4,926 | $ | 10,724 | $ | 12,324 | ||||||||
HireQuest, Inc.
Non-U.S. GAAP - Reconciliation of Net Income to Adjusted Net Income
(unaudited)
Three months ended | Nine months ended | |||||||||||||||
(in thousands, except per share data) | September 30, 2025 | September 30, 2024 | September 30, 2025 | September 30, 2024 | ||||||||||||
Net income (loss) | $ | 2,304 | $ | (2,207 | ) | $ | 4,727 | $ | 1,451 | |||||||
Amortization of acquired intangibles | 558 | 6,035 | 1,638 | 1,619 | ||||||||||||
Goodwill and intangible asset impairment charge | 330 | 6,035 | 330 | 6,035 | ||||||||||||
Acquisition related charges, net | 284 | 100 | 1,130 | 111 | ||||||||||||
Write down of notes receivable | 250 | 75 | 353 | 125 | ||||||||||||
Tax effect of adjustments (1) | (370 | ) | (1,755 | ) | (897 | ) | (2,051 | ) | ||||||||
Adjusted net income | $ | 3,356 | $ | 2,787 | $ | 7,281 | $ | 7,290 | ||||||||
Adjusted net income per diluted share | $ | 0.24 | $ | 0.20 | $ | 0.52 | $ | 0.52 | ||||||||
Weighted average diluted shares outstanding | 13,976 | 13,924 | 13,962 | 13,907 | ||||||||||||
(1) the tax effect includes the application of our estimated combined statutory rate of
HireQuest, Inc.
Non-U.S. GAAP - Supplemental SG&A Breakdown
(unaudited)
Three months ended | Nine months ended | |||||||||||||||
(in thousands) | September 30, 2025 | September 30, 2024 | September 30, 2025 | September 30, 2024 | ||||||||||||
Core SG&A | $ | 4,574 | $ | 4,604 | $ | 14,443 | $ | 14,125 | ||||||||
Net workers' compensation expense (benefit) | (99 | ) | 499 | 56 | 1,618 | |||||||||||
MRINetwork advertising fund expenses | 61 | 101 | 205 | 307 | ||||||||||||
Acquisition related charges, net | 284 | 100 | 1,130 | 111 | ||||||||||||
Write down of notes receivable | 250 | 75 | 353 | 125 | ||||||||||||
SG&A | $ | 5,070 | $ | 5,379 | $ | 16,187 | $ | 16,286 | ||||||||
SOURCE: HireQuest Inc.
View the original press release on ACCESS Newswire
FAQ
What were HireQuest (HQI) third-quarter 2025 revenues and net income?
How did HireQuest system-wide sales perform in Q3 2025 for HQI?
What is HireQuest's (HQI) adjusted EBITDA and adjusted net income for Q3 2025?
Did HireQuest (HQI) pay a dividend in 3Q 2025 and what is the dividend policy?
How strong is HireQuest's (HQI) liquidity and credit availability as of September 30, 2025?
When is HireQuest's (HQI) conference call to discuss Q3 2025 results?
