HireQuest reported Q4 2025 revenue of $7.0 million, down 13% year over year and below forecasts, while diluted EPS came in at $0.11 and adjusted EPS at $0.19, beating expectations. The stock recently traded near $10.21 with modest recent gains in a mixed market reaction after-hours movement.
About HireQuest
HireQuest Inc. (NASDAQ HQI) is a franchisor of staffing solutions that operates across the United States and select international markets from its headquarters in Goose Creek, South Carolina. Founded in 2002, the company connects employers with temporary, contract, and direct-hire workers across industries including construction, light industrial, healthcare, manufacturing, finance, cybersecurity, engineering, and more.
Its primary brands include HireQuest Direct, HireQuest Health, Snelling, TradeCorp, and MRINetwork, which together provide on-demand staffing and executive search services. HireQuest recently reported a market capitalization of about $144 million, a P/E ratio near 20 times, and a dividend yield of roughly 2.35%, reflecting a modest income profile for shareholders. As of its latest filings, the company generated operating cash flow of about $14 million, underscoring solid cash conversion from a franchise-fee driven model.
Top Financial Highlights
- Q4 2025 total revenue was $7.0 million, down 13.0 percent from $8.1 million in Q4 2024.
- Full year 2025 total revenue was $30.6 million, a decline of 11.4 percent from $34.6 million in 2024.
- Q4 2025 franchise royalties were $6.6 million versus $7.6 million a year earlier, reflecting softer system-wide sales.
- Q4 2025 service revenue came in at $392,000 compared with $439,000 in Q4 2024.
- Q4 2025 net income was $1.6 million or $0.11 per diluted share, down from $2.2 million or $0.16 per diluted share in Q4 2024.
- Q4 2025 adjusted net income was $2.7 million or $0.19 per diluted share, slightly above $2.6 million or $0.19 in Q4 2024.
- Full year 2025 net income rose to $6.3 million or $0.45 per diluted share from $3.7 million or $0.26 in 2024, helped by lower impairment charges.
- Full year 2025 adjusted net income was $10.0 million or $0.71 per diluted share, essentially flat versus $9.9 million or $0.71 in 2024.
- Q4 2025 adjusted EBITDA was $3.4 million versus $3.8 million in Q4 2024, showing some margin pressure.
- Full year 2025 adjusted EBITDA was $14.1 million, down from $16.2 million in 2024.
- Q4 2025 system-wide sales were $122.3 million, a 9.3 percent decline from $134.8 million in Q4 2024.
- Full year 2025 system-wide sales fell 11.3 percent to $500.2 million from $563.6 million in 2024.
- Cash on hand at December 31, 2025 was $3.9 million, up from $2.2 million at year-end 2024, while total liabilities fell to $19.9 million.
- Working capital improved to $33.0 million at December 31, 2025 from $25.1 million a year earlier, supported by debt reduction.
- The board authorized a $20 million share repurchase program and the company paid a quarterly dividend of $0.06 per share in March 2026 with an intent to continue quarterly payouts.
Beat or Miss?
| Metric | Reported | Difference / Analysis |
| Revenue Q4 2025 | $7.0 million | Missed forecast of about $7.51 million by roughly 6.8%, reflecting softer demand across the network. |
| Diluted EPS Q4 2025 (GAAP) | $0.11 | Below adjusted level but still positive in a tougher revenue environment, helped by lower SG&A and workers compensation costs. |
| Adjusted EPS Q4 2025 | $0.19 | Beat consensus forecast of $0.12, a surprise of more than 58% on stronger underlying profitability. |
| System-wide sales Q4 2025 | $122.3 million | Down 9.3% year over year as macro headwinds weighed on staffing volumes. |
| Full year revenue 2025 | $30.6 million | Down 11.4% from 2024 as royalty streams tracked lower sales, though profitability improved on reduced impairments. |
What Leadership Is Saying?
“We remained solidly profitable in both the fourth quarter and full year of 2025 and are now debt free despite what has been three consecutive years of challenging economic environments for the staffing industry.”
“Looking ahead, we are seeing a stabilizing job market in 2026 that will be defined more by balance than by a hiring boom or bust, and we believe our franchise staffing model positions us well to meet customers’ needs while maintaining disciplined costs and healthy margins.”
Historical Performance
HireQuest year over year metrics
| Category | Q4 2025 | Q4 2024 | Change (%) |
| Revenue | $7.0 million | $8.1 million | -13 |
| Net income | $1.6 million | $2.2 million | about -27.8 |
| Selling, general and administrative expenses | $4.5 million | $5.1 million | about -12.3 |
Full year comparison
| Category | FY 2025 | FY 2024 | Change (%) |
| Revenue | $30.6 million | $34.6 million | -11.4 |
| Net income | $6.3 million | $3.7 million | about +70.6 |
| SG&A expenses | $20.7 million | $21.4 million | about -3.3 |
How the Market Reacted?
HireQuest’s Q4 2025 report mixed a clear revenue shortfall with stronger than expected earnings per share, which led to a restrained market response rather than a sharp rally or selloff. Recent trading around $10.21 per share and a market cap near $144 million suggest investors remain cautious but recognize the company’s deleveraged balance sheet and resilient cash flow.
Commentary about a stabilizing labor market, a new $20 million buyback authorization, and a consistent $0.06 quarterly dividend point to a moderately bullish long-term stance from management despite near-term revenue headwinds.
