HireQuest, Inc. (HQI)
NASDAQ:HQI
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HireQuest
(NASDAQ:HQI)
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Rating:68Neutral
Price Target:
$12.00
▲(19.64% Upside)
Action:DowngradedDate:01/14/26
HQI scores strongest on financial quality—solid cash flow and low leverage—while the uptrend in price supports the outlook. The score is held back by deteriorating profitability and recent revenue declines, and valuation (P/E ~21.8) looks only fair given those fundamentals; earnings-call updates were mixed with margin improvement but continued year-over-year softness.
Positive Factors
Robust Free Cash Flow
Sustained FCF growth and near‑par conversion of net income to free cash flow improve financial flexibility. This durable cash generation supports reinvestment in franchise operations, consistent dividends, and buybacks while insulating the company from cyclical staffing demand shocks.
Negative Factors
Revenue Decline
Persistent negative top‑line growth erodes operational scale and reduces leverage over fixed costs in staffing. Continued revenue contraction over trailing periods risks margin pressure, limits reinvestment capacity, and weakens the franchise network’s ability to grow system‑wide sales.
Read all positive and negative factors
Positive Factors
Negative Factors
Robust Free Cash Flow
Sustained FCF growth and near‑par conversion of net income to free cash flow improve financial flexibility. This durable cash generation supports reinvestment in franchise operations, consistent dividends, and buybacks while insulating the company from cyclical staffing demand shocks.
Read all positive factors
HireQuest (HQI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$140.15M
Dividend Yield2.55%
Average Volume (3M)32.65K
Price to Earnings (P/E)14.6
Beta (1Y)0.53
Revenue Growth-12.65%
EPS Growth368.36%
CountryUS
Employees92
SectorIndustrials
Sector Strength72
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)0.24
Shares Outstanding14,100,000
10 Day Avg. Volume66,047
30 Day Avg. Volume32,650
Financial Highlights & Ratios
PEG Ratio-1.33
Price to Book (P/B)3.02
Price to Sales (P/S)5.66
P/FCF Ratio16.37
Enterprise Value/Market Cap1.01
Enterprise Value/Revenue4.46
Enterprise Value/Gross Profit4.46
Enterprise Value/Ebitda12.83
Forecast
1Y Price Target
$13.00Price Target Upside29.61% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.54
Revenue Forecast (FY)$30.36M
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 generates revenue primarily through its staffing services, which involve charging clients a markup on the hourly wages of temporary workers placed at their companies. This markup covers the costs of recruitment, payroll processing, and o...
HireQuest Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 30, 2026
Earnings Call Sentiment Neutral
HireQuest maintained profitability and showed strong sequential growth in system-wide sales, but faced revenue declines and challenges in specific segments. The company's franchise model and cost management helped offset some market difficulties.Positive Updates
Consistent Profitability
HireQuest reported net income of $2.3 million or $0.16 per share, maintaining profitability despite market uncertainties. The company's franchise model has enabled it to remain profitable across all economic cycles.
Negative Updates
Revenue Decline
Total revenue decreased by 9.8% to $8.5 million compared to $9.4 million in the prior year, reflecting challenges in the market.
Read all updates
Q3-2025 Updates
Positive
Negative
Consistent Profitability
HireQuest reported net income of $2.3 million or $0.16 per share, maintaining profitability despite market uncertainties. The company's franchise model has enabled it to remain profitable across all economic cycles.
Read all positive updates
Company Guidance
During the HireQuest, Inc. Third Quarter 2025 Earnings Conference Call, the company reported a net income of $2.3 million, or $0.16 per share, demonstrating continued profitability despite a 9.8% decrease in total revenue to $8.5 million compared to the prior year. The company highlighted an increase in system-wide sales by 6.1% sequentially over Q2 2025, reaching $133.6 million. Adjusted net income was $3.4 million, or $0.24 per diluted share, while adjusted EBITDA stood at $4.7 million, with a margin increase to 55% from 52% in the previous year. The balance sheet reported total assets of $94.9 million, with working capital at $31.5 million. The company also noted a $1.1 million net debt, reflecting a significant reduction from the prior year, and announced a $0.06 dividend per common share paid in September 2025.HireQuest Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
72
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 31.69M | 34.60M | 37.88M | 30.95M | 22.53M | 13.81M |
| Gross Profit | 31.69M | 34.60M | 37.88M | 30.95M | 22.53M | 13.81M |
| EBITDA | 11.01M | 7.86M | 11.96M | 16.28M | 9.20M | 6.71M |
| 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 | 13.89M | 11.97M | 10.52M | 15.40M | 15.41M | 9.12M |
| Operating Cash Flow | 14.10M | 12.04M | 10.62M | 16.88M | 17.38M | 10.88M |
| Investing Cash Flow | 166.00K | 44.00K | -7.08M | -23.57M | -29.45M | 36.37K |
| Financing Cash Flow | -14.79M | -11.21M | -5.24M | 8.49M | -347.00K | -1.44M |
HireQuest Technical Analysis
Negative
10.03
Price Trends
10.96
Negative
10.02
Positive
9.76
Positive
Market Momentum
-0.26
Positive
41.91
Neutral
27.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HQI, the sentiment is Negative. The current price of 10.03 is below the 20-day moving average (MA) of 10.72, below the 50-day MA of 10.96, and above the 200-day MA of 9.76, indicating a neutral trend. The MACD of -0.26 indicates Positive momentum. The RSI at 41.91 is Neutral, neither overbought nor oversold. The STOCH value of 27.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | $140.15M | 14.57 | 10.52% | 2.55% | -12.65% | 368.36% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | $116.92M | -5.14 | -12.89% | ― | -9.13% | -1032.39% | |
59 Neutral | $71.79M | -6.66 | -17.82% | 41.67% | -36.79% | -507.05% | |
56 Neutral | $69.96M | 134.64 | 0.69% | ― | 1.24% | 97.14% | |
48 Neutral | $27.36M | -35.64 | -51.65% | ― | -15.43% | -43.45% | |
44 Neutral | $99.51M | -2.93 | -16.17% | ― | -5.37% | 75.32% |
* Industrials Sector Average
HQI
HireQuest
9.94
-1.99
-16.65%
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3.31
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BGSF
6.41
3.75
140.98%
HireQuest Corporate Events
Business Operations and StrategyStock Buyback
HireQuest Announces $20 Million Share Repurchase Plan
Positive
Dec 17, 2025
On December 16, 2025, HireQuest‘s Board of Directors approved a $20 million share repurchase program aimed at enhancing shareholder value and reflecting confidence in the company’s long-term strategy. The buyback program, which will la...
Dividends
HireQuest Declares Quarterly Cash Dividend Announcement
Positive
Nov 7, 2025
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 o...
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.