HireQuest Reports Financial Results for Second Quarter 2025
HireQuest (Nasdaq:HQI), a national franchisor of staffing services, reported its Q2 2025 financial results. The company recorded total revenue of $7.6 million, down 12.0% from $8.7 million in Q2 2024. Net income decreased to $1.1 million ($0.08 per diluted share) from $2.0 million ($0.15 per diluted share) year-over-year.
System-wide sales declined 13.9% to $125.9 million. The company maintained its quarterly dividend of $0.06 per share. Despite market softness, HireQuest demonstrated resilience through its franchise model, with $3.3 million in Adjusted EBITDA and available credit line of $35.9 million for potential acquisitions.
HireQuest (Nasdaq:HQI), franchisor nazionale di servizi di staffing, ha comunicato i risultati finanziari del secondo trimestre 2025. L'azienda ha registrato un fatturato totale di 7,6 milioni di dollari, in calo del 12,0% rispetto agli 8,7 milioni di dollari del secondo trimestre 2024. Il utile netto è diminuito a 1,1 milioni di dollari (0,08 dollari per azione diluita) rispetto a 2,0 milioni (0,15 dollari per azione diluita) dell'anno precedente.
Le vendite a livello di sistema sono diminuite del 13,9%, attestandosi a 125,9 milioni di dollari. L'azienda ha mantenuto il dividendo trimestrale di 0,06 dollari per azione. Nonostante la debolezza del mercato, HireQuest ha dimostrato resilienza grazie al suo modello di franchising, con un EBITDA rettificato di 3,3 milioni di dollari e una linea di credito disponibile di 35,9 milioni di dollari per potenziali acquisizioni.
HireQuest (Nasdaq:HQI), franquiciador nacional de servicios de personal, informó sus resultados financieros del segundo trimestre de 2025. La compañía registró un ingreso total de 7,6 millones de dólares, una disminución del 12,0% respecto a los 8,7 millones de dólares del segundo trimestre de 2024. El ingreso neto se redujo a 1,1 millones de dólares (0,08 dólares por acción diluida) desde 2,0 millones (0,15 dólares por acción diluida) interanual.
Las ventas a nivel de sistema cayeron un 13,9% hasta 125,9 millones de dólares. La empresa mantuvo su dividendo trimestral de 0,06 dólares por acción. A pesar de la debilidad del mercado, HireQuest mostró resiliencia a través de su modelo de franquicia, con un EBITDA ajustado de 3,3 millones de dólares y una línea de crédito disponible de 35,9 millones de dólares para posibles adquisiciones.
HireQuest (나스�: HQI)� 전국적인 인력 서비� 프랜차이저로서 2025� 2분기 재무 결과� 발표했습니다. 회사� � 매출 760� 달러� 기록했으�, 이는 2024� 2분기� 870� 달러 대� 12.0% 감소� 수치입니�. 순이익은 110� 달러 (희석 주당 0.08달러)� 전년 동기 200� 달러 (희석 주당 0.15달러)에서 감소했습니다.
시스� 전체 매출은 13.9% 감소하여 1� 2590� 달러� 기록했습니다. 회사� 분기 배당금으� 주당 0.06달러� 유지했습니다. 시장 상황� 부진함에도 불구하고, HireQuest� 프랜차이� 모델� 통해 조정 EBITDA 330� 달러와 잠재� 인수� 위한 3590� 달러� 가� 신용 한도� 확보하며 견고함을 보여주었습니�.
HireQuest (Nasdaq : HQI), franchiseur national de services de recrutement, a publié ses résultats financiers du deuxième trimestre 2025. La société a enregistré un chiffre d'affaires total de 7,6 millions de dollars, en baisse de 12,0 % par rapport à 8,7 millions de dollars au deuxième trimestre 2024. Le résultat net a diminué à 1,1 million de dollars (0,08 dollar par action diluée) contre 2,0 millions de dollars (0,15 dollar par action diluée) d'une année sur l'autre.
Les ventes au niveau du système ont chuté de 13,9 % pour atteindre 125,9 millions de dollars. La société a maintenu son dividende trimestriel de 0,06 dollar par action. Malgré la faiblesse du marché, HireQuest a fait preuve de résilience grâce à son modèle de franchise, avec un EBITDA ajusté de 3,3 millions de dollars et une ligne de crédit disponible de 35,9 millions de dollars pour d’éventuelles acquisitions.
HireQuest (Nasdaq:HQI), ein nationaler Franchisegeber für Personaldienstleistungen, meldete seine Finanzergebnisse für das zweite Quartal 2025. Das Unternehmen verzeichnete einen Gesamtumsatz von 7,6 Millionen US-Dollar, was einem Rückgang von 12,0 % gegenüber 8,7 Millionen US-Dollar im zweiten Quartal 2024 entspricht. Der Nettogewinn sank auf 1,1 Millionen US-Dollar (0,08 US-Dollar je verwässerter Aktie) von 2,0 Millionen US-Dollar (0,15 US-Dollar je verwässerter Aktie) im Jahresvergleich.
Der systemweite Umsatz ging um 13,9 % auf 125,9 Millionen US-Dollar zurück. Das Unternehmen behielt seine vierteljährliche Dividende von 0,06 US-Dollar je Aktie bei. Trotz eines schwachen Marktes zeigte HireQuest durch sein Franchisemodell Widerstandskraft mit einem bereinigten EBITDA von 3,3 Millionen US-Dollar und einer verfügbaren Kreditlinie von 35,9 Millionen US-Dollar für potenzielle Übernahmen.
- None.
- Revenue declined 12.0% to $7.6 million year-over-year
- Net income decreased 45% to $1.1 million from $2.0 million year-over-year
- System-wide sales dropped 13.9% to $125.9 million
- SG&A expenses increased 10.8% to $5.9 million
Insights
HireQuest reported Q2 2025 revenue decline of 12% amid continued staffing market weakness, yet maintained profitability through cost controls.
HireQuest's Q2 results reveal the persistent challenges in the staffing industry, with the company reporting $7.6 million in total revenue, down
The company's bottom line shows net income of $1.1 million (
System-wide sales, a key indicator of franchise network performance, declined
On the positive side, HireQuest demonstrated effective cost management in certain areas. Workers' compensation expense decreased significantly to
The balance sheet remains relatively stable with
HireQuest's franchise model appears to be providing some resilience during this industry downturn, allowing for continued profitability and the maintenance of its
GOOSE CREEK, SC / / August 7, 2025 / HireQuest, Inc. (Nasdaq:HQI), a national franchisor of on-demand staffing and executive search services, today reported financial results for the second quarter ended June 30, 2025.
Rick Hermanns, HireQuest's President and Chief Executive Officer, commented, "We continued to deliver solid results and profitability in the second quarter of 2025 despite the protracted softness in the staffing market which has persisted now for over two years. The recent Bureau of Labor Statistics jobs report reflects continued overall softness, with the manufacturing industry shedding 11,000 jobs in July. That said, we are focused on controlling what we can control by diligently executing our proven business model, controlling expenses, and pursuing M&A opportunities to further expand our geographic footprint and market reach. Our unique franchise model has delivered superior performance in our sector and positions us well to benefit from operating leverage when demand returns."
Second Quarter 2025 Review
Franchise royalties in the second quarter of 2025 were
Total revenue in the second quarter of 2025 was
SG&A expenses in the second quarter of 2025 were
Depreciation and amortization in the second quarter of 2025 was approximately
Interest and other financing expense in the second quarter of 2025 was approximately
Net income in the second quarter of 2025 was
Adjusted net income for the quarter was
Adjusted EBITDA for the second quarter of 2025 was
System-wide sales for the second quarter of 2025 decreased
Year-To-Date 2025 Review
Franchise royalties for the six months ended June 30, 2025, were
Total revenue was
SG&A expenses in the first six months of 2024 were
Interest and other financing expense for the six months ended June 30, 2025, was approximately
Net income in the year-to-date period for 2025 was
Adjusted net income for the six month period was
Adjusted EBITDA for the six months ended June 30, 2025, was
Systemwide sales for the first six months of 2025 decreased
Balance Sheet and Capital Structure
Cash was
Working capital as of June 30, 2025, was
As of June 30, 2025, assuming continued covenant compliance, availability under the line of credit was approximately
On June 16, 2025, the Company paid a quarterly cash dividend of
Conference Call
HireQuest will hold a conference call to discuss its financial results.
Date: | Thursday, August 7, 2025 | |
Time: | 4:30 p.m. Eastern Time | |
Toll-free dial-in number: | 877-545-0320 | |
International dial-in number: | 973-528-0002 | |
Entry code: | 335250 |
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 and via the investor relations section of HireQuest's website at .
A replay of the conference call will be available through Thursday, August 21, 2025.
Toll-free replay number: | 877-481-4010 | |
International replay number: | 919-882-2331 | |
Replay passcode: | 52769 |
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 .
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: [email protected]
Investor Relations Contact:
IMS Investor Relations
John Nesbett/Jennifer Belodeau
(203) 972-9200
Email: [email protected]
- Tables Follow -
HireQuest, Inc.
Consolidated Balance Sheets
(unaudited)
(in thousands, except par value data) | June 30, 2025 | December 31, 2024 | ||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash | $ | 2,675 | $ | 2,219 | ||||
Accounts receivable, net of allowance | 42,785 | 42,348 | ||||||
Notes receivable | 1,459 | 1,166 | ||||||
Prepaid expenses, deposits, and other assets | 3,530 | 2,413 | ||||||
Prepaid workers' compensation | 1,369 | 1,094 | ||||||
Total current assets | 51,818 | 49,240 | ||||||
Property and equipment, net | 4,105 | 4,149 | ||||||
Workers' compensation claim payment deposit | 1,252 | 1,127 | ||||||
Franchise agreements, net | 18,885 | 19,737 | ||||||
Other intangible assets, net | 7,901 | 8,442 | ||||||
Goodwill | 1,633 | 1,633 | ||||||
Deferred tax asset | 1,784 | 2,073 | ||||||
Other assets | 43 | 57 | ||||||
Notes receivable, net of current portion and allowance | 6,003 | 6,664 | ||||||
Intangible assets held for sale - discontinued operations | 891 | 891 | ||||||
Total assets | $ | 94,315 | $ | 94,013 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 271 | $ | 174 | ||||
Line of credit | 4,333 | 6,829 | ||||||
Term loans payable | - | 88 | ||||||
Other current liabilities | 1,977 | 2,018 | ||||||
Accrued payroll, benefits, and payroll taxes | 3,092 | 2,557 | ||||||
Due to franchisees | 8,253 | 7,579 | ||||||
Risk management incentive program liability | 1,947 | 1,252 | ||||||
Workers' compensation claims liability | 3,383 | 3,599 | ||||||
Total current liabilities | 23,256 | 24,096 | ||||||
Workers' compensation claims liability, net of current portion | 2,656 | 2,707 | ||||||
Franchisee deposits | 2,381 | 2,406 | ||||||
Total liabilities | 28,293 | 29,209 | ||||||
Stockholders' equity | ||||||||
Preferred stock - | - | - | ||||||
Common stock - | 14 | 14 | ||||||
Additional paid-in capital | 36,765 | 36,286 | ||||||
Treasury stock, at cost - 49 shares | (146 | ) | (146 | ) | ||||
Retained earnings | 29,389 | 28,650 | ||||||
Total stockholders' equity | 66,022 | 64,804 | ||||||
Total liabilities and stockholders' equity | $ | 94,315 | $ | 94,013 |
HireQuest, Inc.
Consolidated Statement of Income
(unaudited)
Three months ended | Six months ended | |||||||||||||||
(in thousands, except per share data) | June 30, 2025 | June 30, 2024 | June 30, 2025 | June 30, 2024 | ||||||||||||
Franchise royalties | $ | 7,284 | $ | 8,201 | $ | 14,245 | $ | 16,041 | ||||||||
Service revenue | 354 | 479 | 866 | 1,058 | ||||||||||||
Total revenue | 7,638 | 8,680 | 15,111 | 17,099 | ||||||||||||
Selling, general and administrative expenses | 5,861 | 5,288 | 11,117 | 10,907 | ||||||||||||
Depreciation and amortization | 734 | 697 | 1,469 | 1,395 | ||||||||||||
Income from operations | 1,043 | 2,695 | 2,525 | 4,797 | ||||||||||||
Other miscellaneous income | 28 | 39 | 159 | 76 | ||||||||||||
Interest income | 129 | 151 | 262 | 287 | ||||||||||||
Interest and other financing expense | (71 | ) | (253 | ) | (214 | ) | (495 | ) | ||||||||
Net income before income taxes | 1,129 | 2,632 | 2,732 | 4,665 | ||||||||||||
Provision for income taxes | 56 | 557 | 224 | 897 | ||||||||||||
Net income from continuing operations | 1,073 | 2,075 | 2,508 | 3,768 | ||||||||||||
Loss from discontinued operations, net of tax | (13 | ) | (36 | ) | (85 | ) | (110 | ) | ||||||||
Net income | $ | 1,060 | $ | 2,039 | $ | 2,423 | $ | 3,658 | ||||||||
Basic earnings (loss) per share | ||||||||||||||||
Continuing operations | $ | 0.08 | $ | 0.15 | $ | 0.18 | $ | 0.27 | ||||||||
Discontinued operations | - | - | (0.01 | ) | (0.01 | ) | ||||||||||
Total | $ | 0.08 | $ | 0.15 | $ | 0.17 | $ | 0.26 | ||||||||
Diluted earnings (loss) per share | ||||||||||||||||
Continuing operations | $ | 0.08 | $ | 0.15 | $ | 0.18 | $ | 0.27 | ||||||||
Discontinued operations | - | - | (0.01 | ) | (0.01 | ) | ||||||||||
Total | $ | 0.08 | $ | 0.15 | $ | 0.17 | $ | 0.26 | ||||||||
Weighted average shares outstanding | ||||||||||||||||
Basic | 13,938 | 13,818 | 13,932 | 13,809 | ||||||||||||
Diluted | 13,990 | 13,886 | 14,001 | 13,889 |
HireQuest, Inc.
Non-U.S. GAAP - Reconciliation of Net Income to Adjusted EBITDA
(unaudited)
Three months ended | Six months ended | |||||||||||||||
(in thousands) | June 30, 2025 | June 30, 2024 | June 30, 2025 | June 30, 2024 | ||||||||||||
Net income | $ | 1,060 | $ | 2,039 | $ | 2,423 | $ | 3,658 | ||||||||
Interest expense | 71 | 253 | 214 | 495 | ||||||||||||
Provision for income taxes | 56 | 557 | 224 | 897 | ||||||||||||
Depreciation and amortization | 734 | 697 | 1,469 | 1,395 | ||||||||||||
EBITDA | 1,921 | 3,546 | 4,330 | 6,445 | ||||||||||||
WOTC related costs | 165 | 106 | 315 | 192 | ||||||||||||
Non-cash compensation | 240 | 338 | 479 | 700 | ||||||||||||
Acquisition related charges, net | 929 | - | 846 | 11 | ||||||||||||
Write down of notes receivable | - | 50 | 103 | 50 | ||||||||||||
Adjusted EBITDA | $ | 3,255 | $ | 4,040 | $ | 6,073 | $ | 7,398 |
HireQuest, Inc.
Non-U.S. GAAP - Reconciliation of Net Income to Adjusted Net Income
(unaudited)
Three months ended | Six months ended | |||||||||||||||
(in thousands) | June 30, 2025 | June 30, 2024 | June 30, 2025 | June 30, 2024 | ||||||||||||
Net income | $ | 1,060 | $ | 2,039 | $ | 2,423 | $ | 3,658 | ||||||||
Amortization of acquired intangible assets | 539 | 540 | 1,080 | 1,080 | ||||||||||||
Acquisition related (gains) charges, net | 929 | - | 846 | 11 | ||||||||||||
Write down of note receivable | - | 50 | 103 | 50 | ||||||||||||
Tax effect of adjustments (1) | (382 | ) | (153 | ) | (528 | ) | (297 | ) | ||||||||
Adjusted net income | $ | 2,146 | $ | 2,476 | $ | 3,924 | $ | 4,502 | ||||||||
Adjusted net income per diluted share | $ | 0.15 | $ | 0.18 | $ | 0.28 | $ | 0.32 | ||||||||
Weighted average diluted shares outstanding | 13,990 | 13,886 | 14,001 | 13,889 | ||||||||||||
(1) the tax effect includes the application of our estimated, combined statutory rate of
SOURCE: HireQuest Inc
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