HireQuest, Inc. ( (HQI) ) has released its Q4 earnings. Here is a breakdown of the information HireQuest, Inc. presented to its investors.
HireQuest, Inc. is a national franchisor specializing in direct dispatch, executive search, and commercial staffing services across various industries including construction, healthcare, and finance. The company operates through divisions such as HireQuest Direct and MRINetwork, providing temporary, direct-hire, and contract staffing solutions.
In its latest earnings report for the fourth quarter and full year 2024, HireQuest, Inc. announced a decrease in franchise royalties and total revenue compared to the previous year. Despite these declines, the company achieved profitability, reflecting the resilience of its franchise model and successful cost reduction initiatives.
Key financial metrics for the fourth quarter revealed a 14% drop in franchise royalties to $7.6 million and a 17.2% decrease in total revenue to $8.1 million. However, net income saw a significant increase to $2.2 million from $15,000 in the prior year period. For the full year, franchise royalties and total revenue decreased by 8.8% and 8.7% respectively, while adjusted net income remained stable at $9.9 million.
The company focused on reducing SG&A expenses, which fell by 22.7% in the fourth quarter and 12.4% for the full year. Additionally, HireQuest’s M&A strategy and cost reduction efforts, particularly in workers’ compensation expenses, were highlighted as key priorities for 2024.
Looking ahead, HireQuest’s management remains cautiously optimistic, focusing on leveraging its flexible staffing model and client relationships to navigate the unpredictable economic environment and position the business for future growth.