HireQuest, Inc. (HQI) Market Cap
HireQuest, Inc. has a market capitalization of $147.2M.
Financials based on reported quarter end 2025-12-31
Price: $10.47
▲ 0.43 (4.28%)
Market Cap: 147.16M
NASDAQ · time unavailable
CEO: Richard F. Hermanns
Sector: Industrials
Industry: Staffing & Employment Services
IPO Date: 2003-10-07
Website: https://www.hirequest.com
HireQuest, Inc. (HQI) - Company Information
Market Cap: 147.16M · Sector: Industrials
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.
Analyst Sentiment
Based on 3 ratings
Analyst 1Y Forecast: $15.00
Average target (based on 1 sources)
Consensus Price Target
Low
$15
Median
$15
High
$15
Average
$15
Potential Upside: 43.3%
Price & Moving Averages
Related Companies in Industrials
Fundamentals Overview
📊 AI Financial Analysis
Powered by StockMarketInfo"Headlining the latest quarter (ended 2025-12-31), HQI reported revenue of ~$7.0M and net income of ~$1.6M, translating to net margin of ~22.8%. EPS was $0.11. On the balance sheet, the company had total assets of ~$88.2M and total equity of ~$68.3M, with net debt of approximately -$3.9M (net cash position), suggesting financial cushion. Cash flow data provided for the period shows Operating Cash Flow, Capex, Free Cash Flow, and dividends paid as $0, so the quality and sustainability of cash generation cannot be confirmed from this dataset. Dividends have been paid at $0.06 per quarter (most recently dated 2026-03-02), indicating shareholder returns via income, though the amount appears modest relative to price. From a valuation/sentiment perspective, the current price is $9.79 versus a consensus analyst target of $15 (about +53% implied). However, market performance has been weak: the stock is down ~-19.9% over the last 1 year (and -8.5% YTD), which weighs on total shareholder return momentum. Overall, profitability and balance-sheet positioning look solid, while the missing/zero cash-flow figures and recent price weakness temper the outlook."
Revenue Growth
Revenue of ~$7.0M is provided for the period, but no prior-period figures are included to assess growth rate or trend stability.
Profitability
Net income of ~$1.6M on ~$7.0M revenue implies ~22.8% net margin, supporting strong profitability and efficiency. EPS was $0.11.
Cash Flow Quality
Operating Cash Flow, Capex, Free Cash Flow, and dividends paid are shown as $0 in the dataset, limiting confidence in cash generation and cash-conversion quality.
Leverage & Balance Sheet
Net debt is approximately -$3.9M (net cash). Equity of ~$68.3M versus liabilities of ~$19.9M suggests solid balance-sheet resilience.
Shareholder Returns
Dividends are paid ($0.06 quarterly), but the 1-year price change is -19.9%, indicating negative total return momentum over the past year.
Analyst Sentiment & Valuation
Consensus target is $15 versus a $9.79 current price (notable implied upside). With limited valuation ratios provided, this mainly reflects analyst sentiment.
Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.
HQI’s Q4 2025 showed declining top-line momentum (revenue -13% YoY; franchise royalties -13%; system-wide sales -9.3%), consistent with a staffing industry still working through slower hiring demand. However, profitability held up on a per-share basis: adjusted net income EPS was flat in Q4 ($0.19) and full-year ($0.71) despite weaker sales, supported by a meaningful reduction in net workers’ compensation expense (full-year ~$89K vs ~ $2M in 2024). The key structural event is the MRI Network ownership reset effective 1/1/2026: HireQuest keeps contract staffing fully, while permanent placement is divested into a new leadership-owned entity where HireQuest holds minority ownership. Management implied the income-statement effect should be minimal because the perm placement unit was breakeven, with only ~35%-40% of 2025 MRI retained via contract staffing. Capital remains conservative: zero credit-facility draws at year-end and a $20M share repurchase authorization.
Growth Catalysts
- Franchise staffing model benefit from perceived 2026 labor-market stabilization (time-to-fill steadied; fewer extremes)
- Shift in Snelling/agency and other franchise demand toward skilled work less susceptible to AI automation (per management survey)
Business Development
- MRI Network ownership restructure: divest permanent placement into a new entity with majority ownership transitioning to a newly formed leadership group of current/former franchise owners (HireQuest retains minority ownership); contract staffing remains fully owned by HireQuest
- No acquisitions in the pipeline at time of call (one hopeful mid-Q4 deal fell through due to buyer 'cold feet')
Financial Highlights
- Q4 2025 total revenue $7.0M vs $8.1M prior year (-13%)
- Full-year 2025 total revenue $30.6M vs $34.6M (-11.5%)
- Q4 2025 franchise royalties $6.6M vs $7.6M (-13.2%); full-year franchise royalties $29.0M vs $32.7M (-11.3%)
- System-wide sales Q4 2025 $122.3M vs $134.8M (-9.3%); full-year $500.2M vs $563.6M (-11.3%)
- Q4 2025 SG&A $4.5M vs $5.1M (improvement); full-year SG&A $20.7M vs $21.4M
- Net workers' compensation expense: full-year $89K vs about $2.0M in 2024 (implied ~$1.9M reduction)
- Q4 2025 net income $1.6M or $0.11/diluted vs $2.2M or $0.16/diluted; adjusted net income Q4 $2.7M or $0.19/diluted vs $2.6M or $0.19/diluted (flat EPS)
- Full-year net income $6.3M or $0.45/diluted vs $3.7M or $0.26/diluted; adjusted net income $10.0M or $0.71/diluted vs $9.9M or $0.71/diluted (flat EPS)
- Adjusted EBITDA: Q4 $3.4M vs $3.8M; full-year $14.1M vs $16.2M
- MRI perm placement accounting impact: management indicated ~35%-40% of 2025 MRI retained via contract staffing; perm placement portion was breakeven so 'effect will literally be nothing' on income statement
Capital Funding
- Board-approved share repurchase authorization up to $20M (approved in December; announced by CEO)
- Credit facility debt reduced to $0 drawn at 12/31/2025 vs $6.8M drawn at 12/31/2024
- Cash at 12/31/2025: $3.9M vs $2.2M at 12/31/2024
- Working capital increased to ~$33.0M at 12/31/2025 vs $25.1M at 12/31/2024
- Availability under credit facility: $40.3M (assuming continued covenant compliance)
Strategy & Ops
- MRI ownership reset effective 1/1/2026: permanent placement moved to new entity with majority owned by leadership group of current/former franchise owners; HireQuest minority stake retained; contract staffing remains fully consolidated/owned by HireQuest
- Capital allocation: continued quarterly dividend; most recent $0.06/share paid 3/16/2025 (record 3/2/2025); expects to continue each quarter subject to board discretion
- 2026 survey of 400+ offices: time-to-fill stability with some increases (35% saw increases); recruiters expect time-to-fill stable (61%) with some expecting improvement (15%)
Market Outlook
- Management expectation: 2026 not a hiring boom/bust year; market stability after three years of steady decline
- Survey-based signals cited for 2026: 61% recruiters expect time-to-fill stable in 2026; 15% expect improvement
- Company expects to report Q1 results in May (exact date not provided)
Risks & Headwinds
- Macro environment remains challenging for staffing industry (management characterized environment as 'challenging' though stabilizing)
- MRI growth headwind: hiring for executive search and permanent placement slowed since 2022 acquisition, limiting ability to scale MRI (management cited this directly)
- No acquisition momentum currently: 'dry spell' in finding decent deals; avoiding deals with client concentration due to higher risk of falling apart post-acquisition
- Adjusted EBITDA decline despite adjusted net income stability (Q4 and full-year adjusted EBITDA down vs prior year), indicating margin/expense pressure or noncash items
Sentiment: MIXED
Note: This summary was synthesized by AI from the HQI Q4 2025 earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.