HireQuest, Inc. (HQI)
NASDAQ:HQI
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HireQuest
(NASDAQ:HQI)
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Rating:69Neutral
Price Target:
$14.00
▲(34.10% Upside)
Action:Downgraded
Date:06/22/26
The score is driven primarily by solid underlying financial strength (debt-free balance sheet and cash-backed profitability). Technicals add moderate support with a constructive longer-term trend, while valuation is a headwind due to a relatively high P/E versus recent top-line pressure. The latest earnings call was mixed-positive, citing improving demand trends and strategic optionality, but highlighted near-term revenue weakness and a notable cash decline.
Positive Factors
Balance sheet strength
A debt-free balance sheet with sizable equity provides durable financial flexibility in a cyclical staffing industry. It supports continued dividend payments, opportunistic M&A, and absorbs demand slumps without increasing leverage, lowering bankruptcy risk and preserving investment optionality.
Negative Factors
Revenue decline
Material top-line contraction erodes the royalty base and reduces leverage of fixed-cost infrastructure. Sustained revenue weakness limits organic franchise expansion, pressures long-term margin sustainability, and makes earnings more reliant on cost cuts and nonrecurring items to sustain profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
A debt-free balance sheet with sizable equity provides durable financial flexibility in a cyclical staffing industry. It supports continued dividend payments, opportunistic M&A, and absorbs demand slumps without increasing leverage, lowering bankruptcy risk and preserving investment optionality.
Read all positive factors
HireQuest (HQI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$175.14M
Dividend Yield2.55%
Average Volume (3M)32.65K
Price to Earnings (P/E)26.8
Beta (1Y)0.53
Revenue Growth-11.77%
EPS Growth90.48%
CountryUS
Employees92
SectorIndustrials
Sector Strength72
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)0.47
Shares Outstanding13,900,000
10 Day Avg. Volume66,047
30 Day Avg. Volume32,650
Financial Highlights & Ratios
PEG Ratio0.35
Price to Book (P/B)2.15
Price to Sales (P/S)4.80
P/FCF Ratio12.28
Enterprise Value/Market Cap1.03
Enterprise Value/Revenue6.08
Enterprise Value/Gross Profit6.42
Enterprise Value/Ebitda17.69
Forecast
1Y Price Target
$15.00Price Target Upside43.68% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.58
Revenue Forecast (FY)$28.09M
HireQuest Business Overview & Revenue Model
Company Description
HireQuest, Inc. is a temporary staffing solutions provider operating throughout the United States. The company supplies temporary personnel for a wide array of roles, including skilled and semi-skilled labor, industrial positions, clerical and adm...
How the Company Makes Money
HireQuest primarily makes money through (1) franchising and (2) staffing operations. Under its franchise model, it generates recurring revenue from franchisees via royalty and service fees that are typically tied to franchisee sales (specific fee ...
HireQuest Earnings Call Summary
Earnings Call Date:May 12, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call presented a largely positive tone: HireQuest reported continued profitability, disciplined expense control, a strong long-term growth track record, and adequate liquidity (undrawn credit facility). Management highlighted improving weekly demand trends into Q2 and a strategic $105M offer to expand the on-demand business. However, the quarter showed notable top-line pressure (total revenue down ~12.7% and reported system-wide sales down ~13.3%), a decline in cash balances, and modest EBITDA compression. Many revenue declines were partly attributable to the MRI Network divestiture and early-quarter weather/seasonality headwinds, and management emphasized improving momentum and strategic opportunities going forward.Positive Updates
Sustained Profitability and Earnings
Net income after tax of $1.6M in Q1 2026 ($0.11 per diluted share) vs $1.4M a year ago, a ~14.3% increase; adjusted net income of $1.8M ($0.13) was flat YoY, demonstrating continued profitability despite revenue headwinds.
Negative Updates
Quarterly Revenue Decline
Total revenue fell to $6.5M in Q1 2026 from $7.5M a year ago, a -12.7% decline; franchise royalties declined to $6.1M from $7.0M (≈ -12.9%) and service revenue declined to $462K from $512K (≈ -9.8%).
Read all updates
Q1-2026 Updates
Positive
Negative
Sustained Profitability and Earnings
Net income after tax of $1.6M in Q1 2026 ($0.11 per diluted share) vs $1.4M a year ago, a ~14.3% increase; adjusted net income of $1.8M ($0.13) was flat YoY, demonstrating continued profitability despite revenue headwinds.
Read all positive updates
Company Guidance
Management did not give formal numeric guidance but said they expect to benefit from an improving staffing market in 2026, citing increasingly favorable weekly year‑over‑year comparisons late in Q1 and in the first five weeks of Q2 and “momentum” that should produce growth absent a black swan; they reiterated a strategy of disciplined M&A plus organic franchise growth and confirmed financial flexibility (Q1 total revenue $6.5M, down 12.7% YoY; franchise royalties $6.1M; service revenue $462k; system‑wide sales $102.6M vs. $118.4M in Q1’25 with ~$16M related to the divestiture; SG&A $4.3M, core SG&A $4.2M; workers’ comp $39k; net income $1.6M or $0.11 diluted; adjusted net income $1.8M or $0.13; adjusted EBITDA $2.7M; total assets $91.1M; cash $1.0M; net AR $44.7M; working capital $32.5M; $0 drawn on the credit facility with ~$40.3M available) and confirmed a $0.06 per‑share quarterly dividend paid March 16 (to continue subject to board discretion); they also announced a $105M all‑cash offer for TrueBlue’s on‑demand PeopleReady segment.HireQuest Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
84
Very Positive
Cash Flow
69
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 29.69M | 30.64M | 34.60M | 37.88M | 30.95M | 22.53M |
| Gross Profit | 28.13M | 27.63M | 34.60M | 37.88M | 30.95M | 22.53M |
| EBITDA | 10.20M | 11.20M | 7.86M | 11.96M | 16.28M | 9.20M |
| Net Income | 6.53M | 6.33M | 3.67M | 6.13M | 12.46M | 11.85M |
Balance Sheet | ||||||
| Total Assets | 91.13M | 88.23M | 94.01M | 103.83M | 103.28M | 77.35M |
| Cash, Cash Equivalents and Short-Term Investments | 1.01M | 3.90M | 2.22M | 1.34M | 3.05M | 1.26M |
| Total Debt | 0.00 | 0.00 | 6.92M | 14.77M | 16.54M | 3.24M |
| Total Liabilities | 23.80M | 19.91M | 29.21M | 41.09M | 45.03M | 30.62M |
| Stockholders Equity | 67.33M | 68.32M | 64.80M | 62.73M | 58.25M | 46.73M |
Cash Flow | ||||||
| Free Cash Flow | 10.41M | 11.99M | 11.97M | 10.52M | 15.40M | 15.41M |
| Operating Cash Flow | 10.44M | 12.05M | 12.04M | 10.62M | 16.88M | 17.38M |
| Investing Cash Flow | -455.00K | 296.00K | 44.00K | -7.08M | -23.57M | -29.45M |
| Financing Cash Flow | -11.06M | -10.67M | -11.21M | -5.24M | 8.49M | -347.00K |
HireQuest Technical Analysis
Neutral
10.44
Price Trends
11.93
Positive
11.35
Positive
10.29
Positive
Market Momentum
0.32
Positive
49.09
Neutral
32.50
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HQI, the sentiment is Neutral. The current price of 10.44 is below the 20-day moving average (MA) of 12.94, below the 50-day MA of 11.93, and above the 200-day MA of 10.29, indicating a neutral trend. The MACD of 0.32 indicates Positive momentum. The RSI at 49.09 is Neutral, neither overbought nor oversold. The STOCH value of 32.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HQI.
HireQuest Risk Analysis
HireQuest disclosed 42 risk factors in its most recent earnings report. HireQuest reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
HireQuest Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $175.14M | 26.78 | 9.69% | 2.55% | -11.77% | 90.48% | |
65 Neutral | $164.15M | -70.67 | -2.30% | ― | -9.39% | 72.47% | |
65 Neutral | $91.07M | 38.83 | 2.60% | ― | -8.13% | 7.78% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
53 Neutral | $203.71M | -3.78 | -18.74% | ― | 7.14% | 61.21% | |
48 Neutral | $23.07M | -21.53 | -51.65% | ― | -18.78% | 98.07% | |
47 Neutral | $57.88M | -4.77 | -17.82% | 41.67% | -65.05% | -154.86% |
* Industrials Sector Average
HQI
HireQuest
12.60
2.71
27.40%
DHX
DHI Group
3.80
1.11
41.26%
JOB
GEE Group
0.21
<0.01
5.00%
MHH
Mastech Holdings
7.59
0.94
14.14%
TBI
Trueblue
6.70
-0.16
-2.33%
BGSF
BGSF
5.40
1.29
31.45%
HireQuest Corporate Events
Executive/Board ChangesShareholder Meetings
HireQuest Shareholders Reaffirm Board and Governance at Meeting
Positive
Jun 22, 2026
HireQuest, Inc. held its 2026 Annual Meeting of Stockholders on June 18, 2026, where shareholders elected six directors to serve until the next annual meeting and confirmed strong support for the existing board. Investors also ratified Forvis Maza...
Business Operations and StrategyM&A Transactions
HireQuest Proposes $105 Million Acquisition of TrueBlue Assets
Positive
May 12, 2026
On May 12, 2026, HireQuest announced it had submitted a $105 million all-cash proposal to TrueBlue’s board to acquire selected assets from the on-demand portion of TrueBlue’s People-Ready segment. The move follows multiple rebuffed tak...
Business Operations and StrategyDividendsFinancial Disclosures
HireQuest Declares Quarterly Dividend and Updates Investor Presentation
Positive
May 8, 2026
On May 8, 2026, HireQuest, Inc. announced that its board declared a quarterly cash dividend of $0.06 per share, payable June 15, 2026, to shareholders of record as of June 1, 2026. The payout underlines the company’s ongoing capital-return a...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.