HireQuest 2025 Q3 Earnings Profitable Turnaround with 204.4% Net Income Surge

HireQuest (HQI) reported Q3 2025 earnings on Nov 7, 2025, marking a significant turnaround in profitability despite a 9.8% revenue decline. The company exceeded Zacks’ EPS estimates by 71.43% and delivered a 204.4% net income improvement from a year-ago loss.

Revenue

HireQuest’s total revenue fell to $8.50 million in Q3 2025, down from $9.42 million in the prior-year period. Franchise royalties, the company’s primary revenue stream, decreased by 9.8% to $8.1 million, while service revenue declined to $387,000. System-wide sales, though not directly contributing to revenue, dropped 10.1% to $133.6 million, reflecting weaker demand across its staffing segments.

Earnings/Net Income

The company returned to profitability with EPS of $0.17, reversing a $0.16 loss in Q3 2024—a 206.3% positive swing. Net income surged to $2.30 million, a 204.4% turnaround from a $2.21 million loss. Adjusted net income reached $3.4 million ($0.24 EPS), outpacing the previous year’s $2.8 million. The earnings beat underscores improved operational efficiency and disciplined cost management.

Price Action

HireQuest’s stock dropped 3.30% on the day of the earnings release but rebounded with a 13.36% weekly gain and an 8.65% month-to-date rise. The mixed post-earnings reaction reflects investor optimism about the company’s profitability despite revenue challenges.

CEO Commentary

CEO Rick Hermanns highlighted the franchise model’s resilience, noting profitability in soft markets. He emphasized cautious optimism, acknowledging risks like tax law changes and financial volatility. The Board reiterated that future dividends depend on quarterly reviews, cash flow, and compliance.

Guidance

The company provided no explicit revenue or EPS targets but stressed that dividends remain contingent on cash flow, regulatory compliance, and market conditions. The declared $0.06 per share dividend for Q4 2025 aligns with its conservative approach.

Post-Earnings Price Action Review

Despite the stock’s 3.30% decline on the day of the earnings report, broader market dynamics drove a 13.36% gain during the subsequent trading week and an 8.65% rise month-to-date. The price action suggests investor confidence in HireQuest’s turnaround, though concerns about revenue weakness and macroeconomic pressures linger. Analysts note the stock’s 38.9% year-to-date underperformance against the S&P 500’s 15.6% gain.

Additional News

HireQuest is actively pursuing M&A opportunities in the next 3–6 months, targeting strategic acquisitions to bolster growth. The company also declared a $0.06 per share dividend for Q4 2025, reflecting its focus on shareholder returns. Management highlighted a $42.5 million credit facility availability, providing flexibility for potential deals.