What were the key takeaways from HireQuest's earnings call?

What factors drove the changes in HireQuest's revenue and profit?

Did HireQuest beat or miss consensus estimates last quarter?

What is HireQuest's latest dividend and current dividend yield?

What is HireQuest's gross profit margin?

What guidance did HireQuest's management provide for the next earnings period?

What is the market's earnings forecast for HireQuest next quarter?

What is the revenue and EPS growth rate for HireQuest year over year?

- **Strategic Restructuring**: Divested MRI permanent placement division, retaining 35-40% of prior revenue through contract staffing. No financial impact from divested segment.
- **Revenue Decline**: Q4 2025 revenue $7 million (-13% YoY), driven by franchise royalty decline. Service revenue stable.
- **Cost Control**: 11.8% SG&A reduction, $1.9 million workers' comp savings. Net income $1.6 million (-27% YoY).
- **Market Trends**: 68% offices report stable hiring, 61% expect 2026 stability. Focus on AI-resistant skills and reshoring.
- **Share Buyback**: $20 million program to return capital, reflecting confidence in long-term strategy.

**【CEO Summary Section】**
- Announced strategic restructuring of MRI Network, divesting permanent placement division into a new entity with majority ownership transferred to franchisee-led group. HireQuest retains minority stake and full ownership of contract staffing segment.
- Launched $20 million share repurchase program to return capital to shareholders.
- 2026 hiring trends survey highlights market stabilization: 68% of offices report steady time-to-fill, 61% expect stability in 2026. Employers prioritizing flexibility, skills resilient to AI automation.
- Celebrated Snelling's 75th anniversary as a staffing industry leader.

**【CFO Financial Commentary】**
- Q4 2025 revenue: $7 million (13% YoY decline). Full year revenue: $30.6 million (11.5% YoY decline).
- Franchise royalties: $6.1 million (14.5% YoY decline). System-wide sales: $122.3 million (9.3% Q4 YoY decline).
- Service revenue stable at $392,000 (1.4% Q4 YoY decline).
- SG&A expenses reduced 11.8% YoY to $4.5 million, driven by $1.9 million decline in workers' comp expenses.
- Net income: $1.6 million (27% YoY decline). Adjusted EBITDA: $3.4 million (10.5% YoY decline).
- Balance sheet: $3.9 million cash, $33 million working capital, $40.3 million credit facility availability.

**【Q&A Key Highlights】**
- MRI restructuring impact: Executive search division contributed $65 million system-wide sales in 2025 but was breakeven. No material financial impact expected in 2026.
- Market trends: Balanced labor market with stable time-to-fill metrics, no 2026 boom/bust expectations.
- M&A activity: No active deals in pipeline; prioritizing high-quality, diversified acquisitions over chasing transactions.
- Franchise model resilience: Debt-free balance sheet and stable cash flow despite 2025 revenue decline.

HireQuest, Inc. (HQI) Q4 2025 Earnings Call Transcript

- **Profitability sustained**: $2.3 million net income despite 9.8% revenue decline, driven by franchise model resilience.
- **Segment growth**: Snelling system-wide sales up 6.1% YoY, MRI perm placement declines shrinking.
- **Strategic momentum**: Active M&A pipeline with accretive opportunities, supported by $42.5 million credit facility availability.
- **External tailwinds**: Immigration enforcement contributing to business wins, potential long-term demand boost from reshored manufacturing.

**【CEO Summary Section】**
- Despite a challenging market, the company reported net income of $2.3 million, maintaining profitability for the 11th consecutive quarter.
- The franchise model demonstrated resilience, with Snelling and HireQuest Direct showing sequential growth in system-wide sales (6.1% YoY) and franchise royalties ($8.1 million).
- MRI permanent placement business saw shrinking year-over-year declines, with franchisee retention stabilizing after several non-renewals.
- Management highlighted M&A opportunities, noting a favorable pipeline for accretive acquisitions in the current market environment.
- Immigration enforcement trends contributed to business wins, though demand growth was tempered by slower-than-expected self-deportation rates.

**【CFO Financial Commentary】**
- Total revenue was $8.5 million, down 9.8% YoY, driven by a 9.8% decline in franchise royalties to $8.1 million.
- Adjusted EBITDA rose to $4.7 million (55% margin) from $4.9 million (52% margin) YoY, reflecting improved cost control and workers' compensation savings.
- Balance sheet remained strong with $94.9 million in total assets and $31.5 million in working capital, supporting flexibility for growth initiatives.
- A regular quarterly dividend of $0.06 per share was maintained, signaling confidence in cash flow stability.

**【Q&A Key Highlights】**
- Day labor business showed stabilization, with 5 weeks of Q4 outperforming prior-year comparisons, though overall demand remained soft.
- Snelling franchisees achieved competitive wins in light industrial and administrative sectors, indicating market share gains.
- MRI network challenges persisted, but active franchisee count stabilized, suggesting market bottoming.
- Management expressed optimism about Japan's $500 billion investment in U.S. manufacturing, potentially driving future demand for staffing services.

HireQuest, Inc. (HQI) Q3 2025 Earnings Call Transcript

- **Revenue decline**: Q2 revenue down 12% YoY to $7.6 million, driven by franchise royalty and system-wide sales declines.
- **Acquisition strategy**: $4.3 million debt and $35.9 million credit availability support pursuit of TrueBlue and other deals.
- **Cost control**: Workers' compensation savings of $1 million YTD, aiming for neutral impact in 2026.
- **Dividend continuity**: $0.06 per share dividend maintained, reflecting financial stability.
- **Market challenges**: Manufacturing and IT sector softness, with sequential sales growth but no year-over-year recovery.

**【CEO Summary Section】**
- The company faced a challenging hiring environment with employers delaying decisions due to macroeconomic uncertainty.
- Manufacturing and IT sectors were particularly soft, impacting MRINetwork's performance as several franchisees did not renew their agreements.
- Temporary staffing and day labor offerings showed relative strength, benefiting from stricter immigration enforcement.
- The company maintained a strong balance sheet with $4.3 million in debt and $35.9 million in credit availability, supporting its acquisition strategy.

**【CFO Financial Commentary】**
- Second-quarter revenue decreased 12% year-over-year to $7.6 million, driven by a 12% decline in franchise royalties to $7.3 million.
- System-wide sales fell 13% year-over-year to $125.9 million but increased 6% sequentially from the first quarter.
- Selling, general, and administrative expenses rose 11% to $5.9 million, primarily due to transaction costs.
- Net income after tax was $1.1 million ($0.08 per diluted share), down 45% year-over-year, while adjusted net income was $2.1 million ($0.15 per diluted share), down 16%.
- Adjusted EBITDA decreased 17% to $3.3 million, with a margin of 43% compared to 47% in the prior year.
- The company maintained its dividend policy, paying $0.06 per share, and emphasized financial flexibility for future acquisitions.

**【Q&A Highlights】**
- Management expressed interest in pursuing a transaction with TrueBlue and other acquisition opportunities, leveraging its strong financial position.
- Market share was impacted by non-renewing MRI franchisees, though individual franchisees performed in line with the market.
- Workers' compensation expenses improved, with $1 million in savings year-to-date, and the company aims for neutral impact in 2026.
- Sequential sales growth was noted, but results remained below prior-year levels, with a recent win in the food processing sector signaling potential recovery.

HireQuest, Inc. (HQI) Q2 2025 Earnings Call Transcript

- **Revenue decline amid macro challenges**: Q1 revenue down 11.2% YoY to $7.5M, driven by slower hiring and system-wide sales decline of 12.0%.
- **Cost management success**: SG&A reduced 6.5% YoY to $5.3M, with further cuts expected.
- **Immigration tailwind**: Enhanced enforcement creating demand for compliant staffing, with franchisees reporting new business from raided clients.
- **M&A pipeline strength**: Distressed sellers at attractive valuations, positioning for potential deals in 2025.
- **Financial stability**: Adjusted EBITDA of $2.8M (37% margin) and $34.8M credit facility provide liquidity for growth.

**【CEO Opening Remarks】**
- Q1 revenue decreased 11.2% YoY to $7.5M, driven by macroeconomic headwinds and slower hiring activity across the staffing industry.
- Franchise royalties remained resilient at $7M (down 10.3% YoY), supported by system-wide sales of $118.4M (down 12.0% YoY).
- Expense management initiatives reduced SG&A by 6.5% YoY to $5.3M, with further cost reductions expected.
- M&A pipeline remains strong, with a focus on geographic expansion and new market verticals through acquisitions.
- Enhanced immigration enforcement is creating demand for compliant staffing solutions, benefiting the company's E-Verify compliance.

**【CFO Financial Highlights】**
- GAAP net income of $1.4M ($0.10 EPS) vs. $1.6M ($0.12 EPS) last year, reflecting lower revenue and higher RIF costs.
- Adjusted EBITDA of $2.8M (37% margin) vs. $3.4M (40% margin) last year, impacted by revenue decline.
- Strong balance sheet with $93.7M in total assets and $34.8M available on credit facility.
- Dividend of $0.06 per share maintained, subject to board approval.

**【Q&A Key Takeaways】**
- April trends show no material impact from recent tariffs, with hiring activity remaining subdued.
- Immigration enforcement is driving franchisee wins, with clients returning due to ICE raids.
- M&A pipeline includes distressed sellers at attractive valuations, with potential for near-term deals.
- CFO transition to David Hartley will maintain continuity, with no immediate plans to add corporate development roles.


HireQuest (HQI)-8 May 25-2025 Q1 Earnings call transcript

- **Revenue decline but profitable**: Q4 2024 net income $2.2 million vs. breakeven prior year, despite 17.2% revenue drop. 
- **Workers' comp improvement**: 46% YoY expense reduction to $2 million, with further declines expected in 2025. 
- **Active M&A strategy**: Completed Q4 2024 acquisition to strengthen local market, with multiple deals in pipeline. 
- **MRI network restructuring**: Combined staffing/recruiting functions to cut costs amid 18.6% segment decline. 
- **Demand challenges**: Q4 holiday timing reduced sales, and Q1 2025 demand remains soft with no clear recovery path. 


**【CEO Summary Section】**
- Q4 2024 total revenue: $8.1 million (17.2% YoY decline), full year: $34.6 million (8.7% YoY decline). Q4 net income: $2.2 million ($0.16 EPS), full year: $3.7 million ($0.26 EPS). 
- MRI network permanent placement/executive search segment down 18.6% YoY due to economic uncertainty and employer hiring slowdowns. 
- Workers' compensation expense decreased 46% to $2 million in 2024 (from $3.7 million in 2023), with further reductions expected in 2025. 
- Active on M&A front, completed small acquisition in Q4 2024 that enhanced local market presence. 
- Holiday timing (Christmas/New Year's on Wednesdays) reduced temporary staffing/day labor demand by ~2 days' worth of sales. 

**【CFO Financial Commentary】**
- Franchise royalties: $7.6 million (Q4) / $32.7 million (FY) vs. $8.9 million / $35.8 million prior year. 
- System-wide sales: $134.8 million (Q4) / $563.6 million (FY) vs. $143.5 million / $605.1 million prior year. 
- SG&A expenses: $5.1 million (Q4, 22.7% YoY decline) / $21.4 million (FY, 12.4% YoY decline). 
- Adjusted EBITDA: $3.8 million (Q4, 47% margin) / $16.1 million (FY, 47% margin). 
- Cash balance: $2.2 million (Q4 2024) vs. $1.3 million prior year. 

**【Q&A Highlights】**
- Demand environment: Softening in December 2024 continued into Q1 2025, with no significant improvement. Construction sector stabilized but manufacturing/logistics remains weak. 
- MRI network restructuring: Combined training departments across staffing/recruiting divisions to reduce overhead. 
- Acquisition pipeline: Multiple opportunities in process, with valuations becoming more reasonable after 9+ quarters of industry weakness. 
- Workers' comp outlook: 2025 claims expected to close, with improved accident trends and higher policy rates driving 2025 expense reduction. 
- SG&A flexibility: Could cut IT/marketing spending if needed, but prioritizing long-term strategic investments. 


Actual									0.09	0.15	0.1	0.27	0.2	0.23	0.16	0.04	0.36	0.3	0.2	0.19	0.15	0.12	0.03	0.12	0.15	0.2	0.19	0.1	0.15	0.24
Forecast										0.06	0.08	0.11	0.12	0.16	0.165	0.15	0.245	0.325	0.28	0.275	0.28	0.165	-0.06	0.1	0.125	0.16	0.185	0.135	0.12	0.155	0.13
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	+150.00%	+25.00%	+145.45%	+66.67%	+43.75%	-3.03%	-73.33%	+46.94%	-7.69%	-28.57%	-30.91%	-46.43%	-27.27%	+150.00%	+20.00%	+20.00%	+25.00%	+2.70%	-25.93%	+25.00%	+54.84%	0.00%

HQI

HQI fundamentals

HQI Q4 2025 Earnings Preview

Earnings Call

You can ask Aime

HQI

HQI fundamentals

HQI Q4 2025 Earnings Preview

Earnings Call

HQI Earnings Call Summary for Q4/20254:30 PM on Mar 30, 2026

HQI Earnings Call Summary for Q3/20254:30 PM on Nov 6, 2025

HQI Earnings Call Summary for Q2/20254:30 PM on Aug 7, 2025

HQI Earnings Call Summary for Q1/20254:30 PM on May 8, 2025

HQI Earnings Call Summary for Q4/20244:30 PM on Mar 27, 2025

You can ask Aime