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HQI

HireQuest, Inc.

HQI

HireQuest, Inc. • NASDAQ
$8.69 ▲ 0.46% (+0.04)
Market Cap $122.77 M
52w High $15.75
52w Low $7.61
Dividend Yield 0.24%
P/E 16.71
Volume 61.49K
Outstanding Shares 14.13M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $8.497M ▲ $6.052M ▼ $2.304M ▲ 27.115% ▲ $0.17 ▲ $3.363M ▲
Q2-2025 $7.638M ▲ $6.595M ▲ $1.06M ▼ 13.878% ▼ $0.076 ▼ $1.934M ▼
Q1-2025 $7.472M ▼ $5.989M ▲ $1.363M ▼ 18.241% ▼ $0.098 ▼ $2.482M ▼
Q4-2024 $8.083M ▼ $5.817M ▼ $2.221M ▲ 27.477% ▲ $0.16 ▲ $3.228M ▲
Q3-2024 $9.416M $12.111M $-2.207M -23.439% $-0.16 $-1.925M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $1.102M ▼ $94.942M ▲ $27.115M ▼ $67.827M ▲
Q2-2025 $2.675M ▲ $94.315M ▲ $28.293M ▲ $66.022M ▲
Q1-2025 $2.087M ▼ $93.737M ▼ $28.173M ▼ $65.564M ▲
Q4-2024 $2.219M ▲ $94.013M ▼ $29.209M ▼ $64.804M ▲
Q3-2024 $1.621M $102.66M $39.745M $62.915M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $2.548M ▲ $0 ▼ $0 ▲ $0 ▲ $0 ▼ $0 ▼
Q2-2025 $1.129M ▼ $2.557M ▲ $-3K ▼ $-1.966M ▲ $588K ▲ $2.548M ▲
Q1-2025 $1.435M ▼ $1.854M ▼ $316K ▲ $-2.302M ▲ $-132K ▼ $1.832M ▼
Q4-2024 $2.322M ▲ $8.657M ▲ $-513K ▼ $-7.546M ▼ $598K ▼ $8.486M ▲
Q3-2024 $-2.207M $4.161M $112K $-3.266M $1.007M $4.058M

Revenue by Products

Product Q4-2024Q1-2025Q2-2025Q3-2025
Royalty
Royalty
 $20.00M ▲$10.00M ▼$10.00M ▲$10.00M ▲
Service
Service
 $0 ▲$0 ▲$0 ▲$0 ▲

Five-Year Company Overview

Income Statement

Income Statement HireQuest’s income statement shows a business that grew nicely for several years but has recently hit a softer patch. Revenue has expanded meaningfully over time, reflecting successful acquisition activity and franchise growth, but the most recent year shows a step back rather than continued acceleration. Profitability has been positive for several years, yet operating profit and net income have both compressed, with the latest period looking close to breakeven. That suggests higher costs, integration expenses, or a weaker demand environment pressuring margins. Earnings per share followed a similar path: strong improvement earlier in the period, then a noticeable decline more recently. Overall, the income statement tells a story of a scalable, asset-light model that can generate decent profits, but also one that is sensitive to labor-market conditions and integration costs from its growth strategy.

Balance Sheet

Balance Sheet The balance sheet reflects a relatively lean, franchise-driven business. Total assets have grown over time, largely in line with the company’s expansion and acquisitions, though they appear to have leveled off or dipped slightly in the latest year. Equity has steadily built up over several years, which is a positive sign of retained profitability and a stronger capital base, but it has also flattened recently, echoing weaker earnings. Debt is present but not extreme, rising as the company has grown, which is typical for a roll-up and acquisition-focused strategy. Cash levels are modest, indicating the company does not sit on a large cash cushion and likely relies on ongoing cash generation and credit facilities to fund operations and deals. Overall, the balance sheet is not overly stretched, but there is less room for error if conditions worsen or acquisitions do not perform as planned.

Cash Flow

Cash Flow Cash flow is a relative bright spot. Operating cash flow has been consistently positive over the last several years and closely tracks free cash flow, because the business requires very little in the way of capital spending. That fits with its franchisor model, where franchisees bear most of the heavy investment. Free cash flow grew as the company scaled, then eased somewhat in the most recent year, consistent with the softer earnings picture. Still, the ability to convert a high share of earnings into cash, with minimal ongoing capital needs, gives the company flexibility to service debt, pay dividends, or fund acquisitions. The main watchpoint is that if margins remain pressured, the cash flow advantage could narrow, given the small cash buffer on the balance sheet.

Competitive Edge

Competitive Edge HireQuest’s competitive position is built much more on structure and execution than on sheer size. Its 100% franchise model stands out in the staffing industry, where many competitors operate company-owned branches. This creates strong local ownership incentives: franchisees are directly invested in the performance of their offices, which can translate into better customer service and faster response times. The company also benefits from a national accounts program that secures large, multi-location clients and feeds business to franchisees, helping smaller operators compete with bigger national players. On the other hand, HireQuest operates in a very competitive, cyclical industry with larger rivals that have more resources and brand recognition. The franchise system can be an advantage in scaling quickly with less capital, but it also requires ongoing support and alignment across many independent owners, which can be challenging in downturns or during rapid changes in labor demand.

Innovation and R&D

Innovation and R&D HireQuest is not a classic research-heavy company, but it has been innovative in how it runs and supports its franchise network. Its main “R&D” is in systems, processes, and technology that make life easier for franchisees: proprietary software that handles key back-office tasks, integrated payroll and billing, and tools for recruiting and customer management. The company also leans into operational innovation like daily pay for workers, rapid fill capabilities for orders, and a 24/7 recruiting approach, all of which can be meaningful differentiators in blue-collar and light industrial staffing. Regular internal “tech talks” and attention to emerging recruiting technologies, including more data-driven and AI-enabled tools, show a willingness to modernize rather than stand still. The innovation risk is that these efforts are more incremental than revolutionary, so HireQuest must keep improving its platform to stay ahead of both traditional staffing competitors and technology-enabled upstarts.

Summary

Overall, HireQuest looks like an asset-light, franchise-driven staffing company that has used acquisitions and a differentiated model to grow, while recently running into a period of earnings pressure. The income statement shows a clear pattern of growth followed by a step down in profitability, and the balance sheet, while not overly levered, offers only a modest financial cushion given low cash levels. Steady, high-quality free cash flow is a key strength and underpins the strategy of acquiring and converting staffing firms into franchises with limited capital outlay. Competitively, the company’s fully franchised structure, strong local ownership, multi-brand portfolio, and national accounts program give it a defensible niche, though the broader staffing market remains crowded and cyclical. Its innovation is centered on better systems, software, and worker-friendly features rather than headline-grabbing technology. Key uncertainties include the pace and success of future acquisitions, the ability to restore and sustain higher margins, and how well the company navigates labor-market swings and growing technological competition in staffing and recruiting.

NEWS

November 18, 2025 · 9:03 AM UTC

2026 U.S. Labor Market Outlook: HireQuest Predicts a Year of Reset, Reallocation and Stabilization

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November 7, 2025 · 4:05 PM UTC

HireQuest, Inc. Declares Quarterly Dividend

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November 6, 2025 · 4:05 PM UTC

HireQuest Reports Financial Results for Third Quarter 2025

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October 23, 2025 · 8:30 AM UTC

HireQuest, Inc. to Hold Third Quarter 2025 Financial Results Conference Call on Thursday, November 6, 2025

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