HireQuest, Inc. (HQI) Earnings History

HireQuest, Inc. - Q3 FY2025 Earnings

Filed at: Nov 6, 2025, 3:06 PM EST|Read from source

EXECUTIVE SUMMARY

HireQuest reported a challenging third quarter with declining revenues due to a muted hiring landscape. Despite top-line pressures, the company maintained profitability through disciplined expense management and a strong franchise model, with some bright spots in temporary staffing.

POSITIVE HIGHLIGHTS

  • •

    Net income turned positive to $2.3 million from a net loss of $(2.2 million) in the prior year period.

    positive
  • •

    Diluted EPS improved to $0.16 from a loss of $(0.16) in the prior year period.

    positive
  • •

    Adjusted net income increased to $3.4 million ($0.24 per diluted share) from $2.8 million ($0.20 per diluted share) in the prior year period.

    positive
  • •

    SG&A expenses decreased by 5.7% year-over-year.

    positive
  • •

    Workers' compensation benefit of $99,000 compared to expense of $499,000 in the prior year, a significant swing.

    positive

CONCERNS & RISKS

  • •

    Total revenue decreased by 9.8% to $8.5 million compared to $9.4 million in the prior year period.

    negative
  • •

    Franchise royalties, a key revenue driver, decreased by 9.8% to $8.1 million.

    negative
  • •

    System-wide sales decreased 10.1% to $133.6 million compared to $148.6 million in the prior year period.

    negative
  • •

    Adjusted EBITDA decreased to $4.7 million from $4.9 million in the prior year period.

    attention

FINANCIAL METRICS

Revenue
Quarterly
$8.50M
-9.8%
Prior year: $9.42M
Annual (YTD)
$23.61M
N/A
Prior year: $26.52M
Net Income
Quarterly
$2.30M
N/A
Prior year: $-2.21M
Annual (YTD)
$4.73M
N/A
Prior year: $1.45M
EPS (Diluted)
Quarterly
$0.16
N/A
Prior year: $-0.16
Annual (YTD)
$0.34
N/A
Prior year: $0.10
Operating Income
Quarterly
$2.44M
N/A
Prior year: $-2.69M
Annual (YTD)
$4.97M
N/A
Prior year: $2.10M
EPS (Basic)
Quarterly
$0.17
N/A
Prior year: $-0.16
Annual (YTD)
$0.34
N/A
Prior year: $0.11

MARGIN ANALYSIS

Operating Margin
Current Quarter
28.8%
Prior Year
-28.6%
YoY Change
+5739 bps
Net Margin
Current Quarter
27.1%
Prior Year
-23.4%
YoY Change
+5055 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

SPECIAL ITEMS & ADJUSTMENTS

Q3 2025
Goodwill and intangible asset impairment charge
Included in Adjusted EBITDA reconciliation
+$0.33M
Q3 2024
Goodwill and intangible asset impairment charge
Included in Adjusted EBITDA reconciliation
+$6.035M
Q3 2025
Acquisition related charges, net
Included in Adjusted EBITDA and Adjusted Net Income reconciliations
+$0.284M
Q3 2024
Acquisition related charges, net
Included in Adjusted EBITDA and Adjusted Net Income reconciliations
+$0.1M
Q3 2025
Write down of note receivable
Included in Adjusted EBITDA and Adjusted Net Income reconciliations
+$0.25M
Q3 2024
Write down of note receivable
Included in Adjusted EBITDA and Adjusted Net Income reconciliations
+$0.075M
Total Impact
+$7.074M

Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.

MANAGEMENT COMMENTARY

The U.S. staffing industry continued to contend with a muted hiring landscape.

— HireQuest, Inc., Q3 FY2025 2025 Earnings Call

Employers maintained a wait and see approach to their hiring activities.

— HireQuest, Inc., Q3 FY2025 2025 Earnings Call

The company remains solidly profitable thanks to the strength of its franchise model and disciplined expense management.

— HireQuest, Inc., Q3 FY2025 2025 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.

OPERATIONAL METRICS

System Wide Sales
133.6M
-10.1% YoY
Prior year: 148.6M
dollars

Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.