HireQuest (HQI) AI Stock Analysis

• Market Cap: $118.02M
• Dividend Yield: 2.48%
• Average Volume (3M): 12.04K
• Price to Earnings (P/E): 48.5
• Beta (1Y): 0.47
• Revenue Growth: -9.76%
• EPS Growth: -53.41%
• Country: US
• Employees: 92
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 0.24
• Shares Outstanding: 14,100,000
• 10 Day Avg. Volume: 12,210
• 30 Day Avg. Volume: 12,041
• PEG Ratio: -1.33
• Price to Book (P/B): 3.02
• Price to Sales (P/S): 5.66
• P/FCF Ratio: 16.37
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $13.00
• Price Target Upside: 34.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.56
• Revenue Forecast (FY): $30.53M

• Rating: 60 Neutral
• Price Target: $9.00 ▼(-6.93% Downside)

HireQuest's overall stock score reflects strong cash flow management and a stable balance sheet, which are offset by declining profitability and negative revenue growth. The technical indicators suggest a bearish trend, and the high P/E ratio indicates potential overvaluation. The earnings call provided mixed insights, with consistent profitability but challenges in revenue and specific segments.

Positive Factors

Cash Flow Management

Strong cash flow management indicates effective operational efficiency, providing the company with the flexibility to invest in growth opportunities and weather economic fluctuations.

Franchise Model

The franchise model provides a scalable and resilient business structure, allowing HireQuest to maintain profitability and adapt to varying market conditions.

Adjusted EBITDA Margin

Improved EBITDA margins reflect efficient expense management, enhancing the company's ability to generate profits and sustain operations over the long term.

Negative Factors

Revenue Decline

A decline in revenue suggests challenges in market demand or competitive positioning, potentially impacting future growth and profitability.

Declining System-Wide Sales

Year-over-year decline in system-wide sales indicates potential issues in market penetration and customer retention, affecting long-term revenue prospects.

Franchisee Nonrenewals

Nonrenewal of franchise agreements can weaken the business model, reducing network reach and potentially impacting revenue from franchise operations.

HireQuest Business Overview & Revenue Model

Company Description

HireQuest, Inc. provides temporary staffing solutions in the United States. The company provides temporary staffing services, including skilled and semi-skilled labor and industrial personnel, clerical and administrative personnel, and construction personnel. As of December 31, 2021, the company had a network of approximately 216 franchisee-owned offices in 36 states and the District of Columbia. In addition, the company specializes in commercial drivers. It serves customers primarily in the construction, industrial/manufacturing, warehousing, hospitality, recycling/waste management, disaster recovery, logistics, auctioneering, construction, landscaping, and retail industries. The company was formerly known as Command Center, Inc. and changed its name to HireQuest, Inc. in September 2019.HireQuest, Inc. was founded in 2002 and is headquartered in Goose Creek, South Carolina.

How the Company Makes Money

HireQuest generates revenue primarily through its franchise model, where it charges franchisees a percentage of their sales in exchange for brand support, training, and access to proprietary systems. Additionally, the company earns income from direct staffing services, placement fees, and ongoing royalties from franchise operations. Key revenue streams include temporary staffing placements, direct hire services, and managed services contracts. The company's partnerships with various businesses and organizations enhance its service offerings and contribute to its earnings by expanding its client base and increasing placement opportunities.

HireQuest Financial Statement Overview

Summary

HireQuest demonstrates strong cash flow management and a stable balance sheet with low leverage. However, declining profitability and negative revenue growth pose challenges. The company needs to focus on reversing the revenue decline and improving profit margins to enhance financial performance.

Income Statement

HireQuest's income statement shows a strong gross profit margin consistently above 97%, indicating efficient cost management. However, the net profit margin has declined over the years, from 52% in 2021 to 7.47% in the TTM period, reflecting reduced profitability. Revenue growth has been negative recently, with a -3.1% decline in the TTM period, suggesting challenges in maintaining sales momentum.

Balance Sheet

The balance sheet is stable with a low debt-to-equity ratio of 0.065 in the TTM period, indicating low leverage and financial risk. Return on equity has decreased from 25.36% in 2021 to 3.76% in the TTM period, showing reduced efficiency in generating profits from equity. The equity ratio remains healthy, suggesting a strong capital structure.

Cash Flow

Cash flow analysis reveals a positive trend with a 17.21% growth in free cash flow in the TTM period, indicating improved cash generation. The operating cash flow to net income ratio is 0.74, showing a solid conversion of income into cash. The free cash flow to net income ratio is high at 0.99, reflecting effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	31.69M	34.60M	37.88M	30.95M	22.76M	13.81M
Gross Profit	23.19M	34.60M	37.88M	30.95M	22.59M	13.81M
EBITDA	10.77M	7.86M	11.96M	16.28M	9.20M	6.28M
Net Income	6.95M	3.67M	6.13M	12.46M	11.85M	5.36M
Balance Sheet
Total Assets	94.94M	94.01M	103.83M	103.28M	77.35M	49.10M
Cash, Cash Equivalents and Short-Term Investments	1.10M	2.22M	1.34M	3.05M	1.26M	13.67M
Total Debt	2.20M	6.92M	14.77M	16.54M	3.24M	0.00
Total Liabilities	27.11M	29.21M	41.09M	45.03M	30.62M	12.73M
Stockholders Equity	67.83M	64.80M	62.73M	58.25M	46.73M	36.36M
Cash Flow
Free Cash Flow	12.94M	11.97M	10.52M	15.40M	15.41M	9.12M
Operating Cash Flow	13.07M	12.04M	10.62M	16.88M	17.38M	10.88M
Investing Cash Flow	-200.00K	44.00K	-7.08M	-23.57M	-29.45M	36.37K
Financing Cash Flow	-11.81M	-11.21M	-5.24M	8.49M	-347.17K	-1.44M

HireQuest Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.67
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HQI, the sentiment is Positive. The current price of 9.67 is above the 20-day moving average (MA) of 8.56, above the 50-day MA of 9.20, and below the 200-day MA of 10.58, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 62.76 is Neutral, neither overbought nor oversold. The STOCH value of 67.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HQI.

HireQuest Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HQI	60 Neutral	$118.02M	48.52	4.06%	2.48%	-9.76%	-53.41%
MHH	52 Neutral	$81.31M	101.73	1.01%	―	5.16%	―
TBI	49 Neutral	$164.37M	-5.79	-8.91%	―	-5.37%	75.32%
BGSF	49 Neutral	$36.53M	―	-9.13%	56.50%	-24.36%	-393.95%
JOB	47 Neutral	$20.38M	-0.56	-53.10%	―	-15.53%	-67.84%
DHX	45 Neutral	$90.74M	-9.17	-8.83%	―	-8.31%	-445.30%

HireQuest Corporate Events

HireQuest Declares Quarterly Cash Dividend Announcement

On November 7, 2025, HireQuest, Inc. announced that its Board of Directors declared a quarterly cash dividend of $0.06 per share, to be paid on December 15, 2025, with a record date of December 1, 2025. This decision reflects the company’s ongoing commitment to returning value to shareholders, although future dividends remain subject to the Board’s approval and various financial conditions.

The most recent analyst rating on (HQI) stock is a Hold with a $8.50 price target. To see the full list of analyst forecasts on HireQuest stock, see the HQI Stock Forecast page.

HireQuest, Inc. Reports Resilient Q3 2025 Financial Performance

HireQuest, Inc. is a national franchisor specializing in on-demand staffing and executive search services, operating across various industries such as construction, healthcare, and finance. The company recently released its financial results for the third quarter of 2025, highlighting its continued profitability despite a challenging hiring environment in the U.S. staffing industry. Key financial metrics from the third quarter reveal a decrease in total revenue by 9.8% to $8.5 million compared to the previous year, with franchise royalties and service revenue also experiencing declines. However, the company managed to achieve a net income of $2.3 million, a significant turnaround from a net loss in the same quarter last year. Adjusted net income rose to $3.4 million, indicating improved profitability. Despite a decline in system-wide sales by 10.1%, HireQuest’s strategic focus on disciplined expense management and leveraging its franchise model has contributed to its financial resilience. Looking ahead, HireQuest remains committed to supporting its franchisees and expanding its geographic footprint, positioning itself to capitalize on potential market improvements in the future.

HireQuest Earnings Call Reveals Mixed Results

The recent earnings call for HireQuest, Inc. painted a mixed picture for the company. While there were some positive developments, such as a sequential increase in system-wide sales and strong financial flexibility, these were overshadowed by significant declines in revenue, franchise royalties, and net income. The company also faces ongoing challenges in the market environment and the loss of franchise agreements, which have impacted its overall performance.

HireQuest Announces Quarterly Cash Dividend Declaration

On August 12, 2025, HireQuest, Inc. announced a quarterly cash dividend of $0.06 per share, payable on September 15, 2025, to shareholders recorded by September 1, 2025. This decision reflects the company’s ongoing financial strategy and commitment to returning value to shareholders, although future dividends will depend on the company’s financial performance and other factors, as assessed by the Board of Directors each quarter.

The most recent analyst rating on (HQI) stock is a Buy with a $17.00 price target. To see the full list of analyst forecasts on HireQuest stock, see the HQI Stock Forecast page.

HireQuest, Inc. Reports Q2 2025 Financial Results

HireQuest, Inc. is a national franchisor specializing in on-demand staffing and executive search services, operating across various industries including construction, healthcare, and finance. The company recently released its financial results for the second quarter of 2025, highlighting its ability to maintain profitability despite ongoing challenges in the staffing market.