HireQuest, Inc. (HQI) Q3 2025 Earnings Call Transcript
Net Income $2.3 million or $0.16 per share, compared to a net loss of $2.2 million or a loss of $0.16 per share last year. The improvement is attributed to controlling network compensation expenses.
Total Revenue $8.5 million, a decrease of 9.8% year-over-year from $9.4 million. The decline is due to reduced franchise royalties and service revenue.
Franchise Royalties $8.1 million, down from $9 million last year. This decline is part of the overall revenue decrease.
Service Revenue $387,000, down from $428,000 last year, contributing to the total revenue decline.
System-wide Sales $133.6 million, down from $148.6 million last year, reflecting a decrease in sales across all offices. However, sequentially, sales increased by 6.1% over Q2, compared to a 1.7% increase last year.
Selling, General and Administrative (SG&A) Expenses $5.1 million, down from $5.4 million last year. Core SG&A (excluding certain adjustments) remained flat at $4.6 million.
Workers' Compensation Recognized a benefit of just under $100,000, compared to a net expense of $500,000 last year, contributing to improved profitability.
Adjusted Net Income $3.4 million or $0.24 per diluted share, up from $2.8 million or $0.20 per diluted share last year. The improvement is largely due to controlled network compensation expenses.
Adjusted EBITDA $4.7 million, slightly down from $4.9 million last year. However, the adjusted EBITDA margin increased to 55% from 52% last year.
Total Assets $94.9 million as of September 30, 2025, compared to $94 million at December 31, 2024.
Working Capital $31.5 million as of September 30, 2025, compared to $25.1 million at the end of 2024, showing improved liquidity.
Net Debt $1.1 million, down $1 million from the end of Q2 and $11 million from September 30, 2024, indicating reduced leverage.
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HireQuest Approves $20 Million Share Repurchase Program
- Repurchase Program Launch: HireQuest's Board of Directors has approved a share repurchase program authorizing up to $20 million, set to commence soon and expire within 12 months, aimed at enhancing shareholder value and demonstrating confidence in the company's long-term strategy.
- Commitment to Capital Management: CEO Rick Hermanns stated that the share repurchase is the best and most efficient use of capital at this time, reflecting management's confidence in the company's future while providing capital returns to shareholders.
- Flexible Repurchase Methods: The program allows for share repurchases through various methods including open market purchases, privately negotiated transactions, and block purchases, with the timing and quantity of purchases dependent on market conditions and stock price, showcasing the company's operational flexibility.
- Future Growth Potential: Shares repurchased may be reissued for employee benefit plans and other corporate purposes, which not only helps boost employee morale but also potentially enhances the company's competitive position in the industry, fostering future business growth.

2026 U.S. Labor Market Outlook: HireQuest Predicts a Year of Reset, Reallocation and Stabilization
2026 Labor Market Outlook: The labor market is expected to stabilize in 2026, with a focus on skilled work and flexible contract roles, as employer and employee demands align more closely.
Key Trends Influencing Hiring: Factors such as AI and automation, reshoring, and economic shifts are shaping hiring practices, with a notable rise in demand for skilled roles in manufacturing, healthcare, and technology.
Worker Preferences: Workers are prioritizing local job opportunities and flexibility over relocation, with a significant number of staffing offices reporting stable or improved fill rates.
Sector-Specific Growth: Growth is anticipated in sectors requiring human skills, particularly in manufacturing, healthcare, and logistics, while administrative roles may see slower growth due to automation.






