What is HireQuest's gross profit margin?

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

Did HireQuest beat or miss consensus estimates last quarter?

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

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

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

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

What does HireQuest do and what are its main business segments?

- **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

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

HQI

HQI fundamentals

You can ask Aime