The earnings call highlighted HireQuest's strong financial position and ability to pursue acquisitions, as well as cost savings in workers' compensation. However, these positives were overshadowed by declining revenues, franchise royalties, and net income, along with challenges in the franchise network. The overall sentiment of the call is negative due to significant revenue declines and franchisee non-renewals.

Company Guidance -

Q3 2025

During the second quarter of 2025, HireQuest experienced a decrease in revenue to $7.6 million, down 12% from $8.7 million in the same quarter of the previous year. Franchise royalties, the primary source of revenue, fell to $7.3 million from $8.2 million, while service revenue declined to $354,000 from $479,000. System-wide sales also dropped to $125.9 million from $146.1 million in Q2 2024, though they improved 6% sequentially. Net income after tax was $1.1 million, or $0.08 per diluted share, compared to $2 million, or $0.15 per share, a year earlier. Adjusted EBITDA decreased to $3.3 million from $4 million, with the adjusted EBITDA margin narrowing to 43% from 47%. The company maintained a strong balance sheet with $4.3 million in debt and $35.9 million in available credit, emphasizing its readiness for acquisitions despite challenges in the hiring environment and franchisee retention issues.

Financial Flexibility and Low Debt

By the end of the second quarter, HireQuest had only $4.3 million of debt on the balance sheet, with $35.9 million in credit facility availability, indicating strong financial flexibility.

Cost Savings in Workers' Compensation

HireQuest achieved cost savings of approximately $1 million in workers' compensation expenses through the first 6 months of 2025 compared to the same period in 2024.

Dry Powder for Acquisitions

With strong balance sheet management, HireQuest has significant capacity to pursue acquisitions, having completed over $77 million of acquisitions over the past six years.

HireQuest (HQI) Earnings, Revenues Date & History

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HQI Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Nov 06, 2025	2025 (Q3)	0.14 / -	0.2	―	―	―
Aug 07, 2025	2025 (Q2)	0.12 / 0.15	0.15	0.00% (0.00)	―
May 08, 2025	2025 (Q1)	0.14 / 0.10	0.12	-16.67% (-0.02)	―
Mar 27, 2025	2024 (Q4)	0.18 / 0.19	0.03	533.33% (+0.16)	―
Nov 07, 2024	2024 (Q3)	0.16 / 0.20	0.12	66.67% (+0.08)	―
Aug 08, 2024	2024 (Q2)	0.13 / 0.15	0.15	0.00% (0.00)	―
May 09, 2024	2024 (Q1)	0.10 / 0.12	0.19	-36.84% (-0.07)	―
Mar 21, 2024	2023 (Q4)	-0.06 / 0.03	0.2	-85.00% (-0.17)	―
Nov 08, 2023	2023 (Q3)	0.17 / 0.12	0.3	-60.00% (-0.18)	―
Aug 10, 2023	2023 (Q2)	0.28 / 0.15	0.36	-58.33% (-0.21)	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

HQI Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Aug 07, 2025	$9.75	$9.65	-1.03%
May 08, 2025	$10.15	$9.88	-2.66%
Mar 27, 2025	$13.36	$12.15	-9.06%
Nov 07, 2024	$13.68	$14.02	+2.49%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.