HireQuest Q2 adjusted EBITDA USD 4.6 million

HireQuest Inc. (Nasdaq: HQI) reported adjusted EBITDA of $4.6 million for the second quarter of 2026, reflecting a notable improvement in its financial performance compared to recent periods. This figure marks a positive trend for the staffing franchisor, which has faced industry-wide challenges in the past year. The increase in adjusted EBITDA is attributed to improved cost management and operational efficiency, despite ongoing market softness in the staffing sector.

For the second quarter of 2026, total revenue was $7.6 million, a 12.0% decline from $8.7 million in the same period of 2025. Franchise royalties also decreased to $7.3 million from $8.2 million year-over-year. However, the company managed to reduce SG&A expenses by controlling transaction costs and lowering workers' compensation expenses, which dropped to $127,000 from $547,000 in the prior year period. Interest and other financing expenses also declined significantly to $71,000 from $253,000 in Q2 2025.

Despite the revenue decline, HireQuest maintained its quarterly dividend of $0.06 per share, demonstrating confidence in its cash flow generation and long-term stability. The company also reported $35.9 million in credit line availability, providing flexibility for potential acquisitions and strategic growth initiatives.

Rick Hermanns, HireQuest’s President and CEO, emphasized the company’s focus on executing its proven business model and controlling expenses during the challenging market environment. He noted that the franchise model has provided resilience and positioned the company well for future growth when demand returns.

The adjusted EBITDA of $4.6 million for Q2 2026 highlights HireQuest’s ability to maintain profitability and operational leverage despite industry headwinds. The company’s balance sheet remains stable, with $2.7 million in cash and $28.6 million in working capital as of June 30, 2026.