HireQuest (NASDAQ:HQI) Posts Earnings Results, Misses Estimates By $0.02 EPS

HireQuest (NASDAQ:HQI) released its quarterly earnings data on Thursday. The company reported $0.22 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.24 by ($0.02), FiscalAI reports. The company had revenue of $8.81 million for the quarter, compared to the consensus estimate of $8.70 million. HireQuest had a return on equity of 16.35% and a net margin of 27.06%.

Here are the key takeaways from HireQuest’s conference call:

• Underlying growth strengthened: Third-quarter revenue rose 4% year over year to $8.8 million, or 11.1% excluding the prior-year MRINetwork divestiture; pro forma system-wide sales increased 11.4%. Management said system-wide sales were up in the high teens year over year through early November.
• Management cited improving staffing demand, growth across HireQuest Direct and Snelling, and contributions from warehouse automation projects and food-service business. It also pointed to expanded national-account support and recruiting technology as factors helping win and fill more work.
• Reported profitability declined: Net income fell to $1.7 million from $2.3 million, including a $1.3 million non-cash write-down of notes receivable after the company repossessed a franchise location; adjusted net income also declined, while adjusted EBITDA was flat at $4.5 million. Management plans to rebuild and resell the operation, but its recovery is not assured.
• HireQuest reported $40.5 million of availability on its credit facility, with approximately $500,000 drawn, and continued its quarterly dividend and share repurchases. It repurchased about 226,000 shares for $2.4 million during the first nine months of 2026.

HireQuest Price Performance

Shares of NASDAQ:HQI traded up $0.28 during midday trading on Thursday, hitting $18.53. 25,902 shares of the company’s stock were exchanged, compared to its average volume of 22,404. The stock has a 50 day moving average price of $17.44 and a 200-day moving average price of $13.60. The company has a market cap of $257.57 million, a PE ratio of 32.51 and a beta of 1.26. HireQuest has a 12 month low of $7.38 and a 12 month high of $20.84.

Wall Street Analyst Weigh In

A number of analysts recently commented on HQI shares. Wall Street Zen lowered HireQuest from a “strong-buy” rating to a “buy” rating in a research report on Sunday, November 1st. Weiss Ratings upgraded HireQuest from a “hold (c)” rating to a “hold (c+)” rating in a report on Thursday, October 8th. DA Davidson raised their price objective on HireQuest from $15.00 to $19.00 and gave the company a “buy” rating in a research note on Tuesday, August 11th. Finally, Barrington Research set a $19.00 price objective on HireQuest in a research note on Wednesday, August 12th. Two investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company’s stock. Based on data from MarketBeat, HireQuest presently has an average rating of “Moderate Buy” and a consensus price target of $19.00.

About HireQuest

HireQuest, Inc. is a staffing company that provides temporary staffing and direct-hire services through a network of franchised offices. Its services connect employers with workers for roles in areas such as construction, light industrial, skilled trades, hospitality, and office support. The company operates under several brands, including HireQuest, HireQuest Direct, Snelling, TradeCorp, and MRINetwork. Its franchise model gives local operators access to the company’s staffing services and brand platforms.