HireQuest, Inc. (HQI)
NASDAQ:HQI
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HireQuest
(NASDAQ:HQI)
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Rating:74Outperform
Price Target:
$13.50
▲(29.31% Upside)
Action:UpgradedDate:05/09/26
HQI scores well primarily due to strong financial quality (debt-free balance sheet and solid cash generation). Technicals are supportive but show overbought signals that add near-term risk. Valuation is only moderate at ~23x earnings with a ~2% yield, while earnings-call takeaways are mixed—improving profitability and capital returns versus ongoing top-line declines and restructuring-related headwinds.
Positive Factors
Debt-free Balance Sheet
A debt-free balance sheet with roughly $68M equity and low leverage provides durable financial flexibility. It lowers interest and covenant risk, supports steady dividends and repurchases, and gives the company capacity to absorb cyclical staffing demand shocks over the next several quarters.
Negative Factors
Sustained Revenue Decline
Consecutive annual revenue declines shrink the royalty and fee base that underpins franchise cash flows. A contracting top line reduces scale economics, pressures margins and adjusted EBITDA, and limits internal growth funding, creating a persistent headwind to recovery in near term.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free Balance Sheet
A debt-free balance sheet with roughly $68M equity and low leverage provides durable financial flexibility. It lowers interest and covenant risk, supports steady dividends and repurchases, and gives the company capacity to absorb cyclical staffing demand shocks over the next several quarters.
Read all positive factors
HireQuest (HQI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$167.16M
Dividend Yield2.55%
Average Volume (3M)32.65K
Price to Earnings (P/E)23.0
Beta (1Y)0.53
Revenue Growth-11.44%
EPS Growth71.03%
CountryUS
Employees92
SectorIndustrials
Sector Strength72
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)0.46
Shares Outstanding14,000,000
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 Ratio12.24
Enterprise Value/Market Cap0.98
Enterprise Value/Revenue5.33
Enterprise Value/Gross Profit5.91
Enterprise Value/Ebitda16.29
Forecast
1Y Price Target
$13.00Price Target Upside24.52% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.53
Revenue Forecast (FY)$29.76M
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 constructio...
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:Mar 30, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Neutral
The call presents a mixed picture. Top-line metrics show meaningful declines (total revenue, franchise royalties, system-wide sales, and adjusted EBITDA), and the MRI permanent-placement divestiture will reduce future reported royalties and system-wide sales. Offsetting these headwinds, management delivered maintained profitability (notably higher full-year GAAP net income and stable adjusted net income), meaningful cost control (SG&A and workers' compensation reductions), improved liquidity and working capital, a $20M share repurchase authorization, and a continued dividend. Management's tone is cautiously optimistic about market stabilization going into 2026 but acknowledges continued selectivity on acquisitions.Positive Updates
Maintained Profitability and Improved Full-Year Net Income
Full-year net income rose to $6.3M in 2025 from $3.7M in 2024, an increase of ~70.3% (EPS $0.45 vs $0.26), demonstrating resilience despite a weaker top line.
Negative Updates
Revenue Decline — Q4 and Full Year
Total revenue declined to $7.0M in Q4 2025 from $8.1M in Q4 2024 (-13.0%) and to $30.6M for full-year 2025 from $34.6M in 2024 (-11.6%), reflecting top-line pressure across the business.
Read all updates
Q4-2025 Updates
Positive
Negative
Maintained Profitability and Improved Full-Year Net Income
Full-year net income rose to $6.3M in 2025 from $3.7M in 2024, an increase of ~70.3% (EPS $0.45 vs $0.26), demonstrating resilience despite a weaker top line.
Read all positive updates
Company Guidance
Management guided that 2026 should be a stabilizing, more balanced hiring market rather than a boom, citing a survey of 400+ offices where 68% said time-to-fill steadied in 2025 and 35% saw increases, with 61% of recruiters expecting time-to-fill to remain stable in 2026 and 15% expecting improvement, plus a late‑2025 uptick in hiring urgency; they expect AI/automation, reshoring/tariff relief and economic/political shifts to be key forces. They also outlined the MRI restructuring (the permanent‑placement piece, which generated roughly $65M of system‑wide sales and just under $2M of royalties in 2025, was moved to a new entity as of Jan 1 while HireQuest keeps full ownership of the contract staffing piece—about 35–40% of prior MRI activity—and a minority stake in the perm business). On capital allocation, the Board approved a $20M share‑repurchase authorization, the company expects to continue quarterly dividends (most recently $0.06 per common share paid Mar 16, 2025), and ended the year with $0 drawn on its credit facility, about $40.3M of availability and roughly $33M of working capital.HireQuest Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
84
Very Positive
Cash Flow
78
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 30.64M | 34.60M | 37.88M | 30.95M | 22.53M |
| Gross Profit | 27.63M | 34.60M | 37.88M | 30.95M | 22.53M |
| EBITDA | 10.02M | 7.86M | 11.96M | 16.28M | 9.20M |
| Net Income | 6.33M | 3.67M | 6.13M | 12.46M | 11.85M |
Balance Sheet | |||||
| Total Assets | 88.23M | 94.01M | 103.83M | 103.28M | 77.35M |
| Cash, Cash Equivalents and Short-Term Investments | 3.90M | 2.22M | 1.34M | 3.05M | 1.26M |
| Total Debt | 0.00 | 6.92M | 14.77M | 16.54M | 3.24M |
| Total Liabilities | 19.91M | 29.21M | 41.09M | 45.03M | 30.62M |
| Stockholders Equity | 68.32M | 64.80M | 62.73M | 58.25M | 46.73M |
Cash Flow | |||||
| Free Cash Flow | 12.02M | 11.97M | 10.52M | 15.40M | 15.41M |
| Operating Cash Flow | 12.08M | 12.04M | 10.62M | 16.88M | 17.38M |
| Investing Cash Flow | 296.00K | 44.00K | -7.08M | -23.57M | -29.45M |
| Financing Cash Flow | -10.67M | -11.21M | -5.24M | 8.49M | -347.00K |
HireQuest Technical Analysis
Positive
10.44
Price Trends
10.71
Negative
10.23
Positive
9.79
Positive
Market Momentum
-0.08
Negative
50.23
Neutral
20.82
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 10.44 is above the 20-day moving average (MA) of 10.25, below the 50-day MA of 10.71, and above the 200-day MA of 9.79, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 50.23 is Neutral, neither overbought nor oversold. The STOCH value of 20.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HQI.
HireQuest Risk Analysis
HireQuest disclosed 43 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $167.16M | 22.96 | 9.46% | 2.55% | -11.44% | 71.03% | |
65 Neutral | $151.63M | 18.99 | -2.30% | ― | -9.39% | 72.47% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
55 Neutral | $84.32M | 21.01 | 0.69% | ― | -3.81% | -82.11% | |
54 Neutral | $170.57M | -1.44 | -16.17% | ― | 7.14% | 61.21% | |
48 Neutral | $28.40M | -35.64 | -51.65% | ― | -16.88% | -46.35% | |
47 Neutral | $59.14M | ― | -17.82% | 41.67% | -65.05% | -154.86% |
* Industrials Sector Average
HQI
HireQuest
11.94
2.00
20.07%
DHX
DHI Group
3.51
1.71
95.00%
JOB
GEE Group
0.26
0.07
35.08%
MHH
Mastech Holdings
7.10
-2.20
-23.66%
TBI
Trueblue
5.61
0.96
20.65%
BGSF
BGSF
5.26
2.31
78.18%
HireQuest Corporate Events
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...
Business Operations and StrategyExecutive/Board Changes
HireQuest Updates Executive Employment Agreements and Incentive Plans
Positive
Mar 6, 2026
On March 2, 2026, HireQuest, Inc. entered into new employment agreements with Chief Executive Officer Richard Hermanns, Chief Financial Officer C. David R. Hartley, and Chief Legal Officer, Vice President, and Corporate Secretary John McAnnar, eff...
Dividends
HireQuest Board Declares Conditional Quarterly Cash Dividend
Positive
Feb 17, 2026
HireQuest, Inc., a national franchisor of on-demand staffing and executive search services, operates through brands such as HireQuest Direct, HireQuest Health, MRINetwork, Snelling, and TradeCorp across U.S. and international markets. It provides ...
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.