HireQuest, Inc. (HQI) Q2 2025 Earnings Call Transcript
Total Revenue $7.6 million for Q2 2025, a decrease of 12% year-over-year from $8.7 million in Q2 2024. The decline was attributed to a challenging hiring environment and several franchisees not renewing their agreements.
Franchise Royalties $7.3 million for Q2 2025, down from $8.2 million in Q2 2024. This decrease was due to reduced system-wide sales and franchisee non-renewals.
System-wide Sales $125.9 million for Q2 2025, a decrease from $146.1 million in Q2 2024. The decline reflects overall softness in the market, particularly in manufacturing and IT sectors.
Service Revenue $354,000 for Q2 2025, down from $479,000 in Q2 2024. The reduction was due to lower service demand.
Selling, General and Administrative Expenses $5.9 million for Q2 2025, up from $5.3 million in Q2 2024. The increase was driven by $929,000 in transaction expenses, partially offset by a $400,000 decrease in workers' compensation expenses.
Net Income After Tax $1.1 million for Q2 2025, or $0.08 per diluted share, compared to $2 million or $0.15 per diluted share in Q2 2024. The decline was due to lower revenue and higher expenses.
Adjusted Net Income $2.1 million for Q2 2025, or $0.15 per diluted share, compared to $2.5 million or $0.18 per diluted share in Q2 2024. The decrease was due to lower revenue and higher transaction expenses.
Adjusted EBITDA $3.3 million for Q2 2025, down from $4 million in Q2 2024. The adjusted EBITDA margin was 43%, compared to 47% in Q2 2024, reflecting lower revenue and higher expenses.
Total Assets $94.3 million as of June 30, 2025, slightly up from $94 million as of December 31, 2024. The increase was due to higher cash and accounts receivable.
Current Assets $45.5 million as of June 30, 2025, up from $44.5 million as of December 31, 2024. The increase was driven by higher cash and accounts receivable.
Current Liabilities $16.9 million as of June 30, 2025, down from $19.4 million as of December 31, 2024. The decrease reflects improved working capital management.
Debt $4.3 million as of June 30, 2025, down from $16 million at the end of Q2 2024. The reduction was due to effective debt management.
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HireQuest Approves $20 Million Share Repurchase Program
- Repurchase Program Launch: HireQuest's Board of Directors has approved a share repurchase program authorizing up to $20 million, set to commence soon and expire within 12 months, aimed at enhancing shareholder value and demonstrating confidence in the company's long-term strategy.
- Commitment to Capital Management: CEO Rick Hermanns stated that the share repurchase is the best and most efficient use of capital at this time, reflecting management's confidence in the company's future while providing capital returns to shareholders.
- Flexible Repurchase Methods: The program allows for share repurchases through various methods including open market purchases, privately negotiated transactions, and block purchases, with the timing and quantity of purchases dependent on market conditions and stock price, showcasing the company's operational flexibility.
- Future Growth Potential: Shares repurchased may be reissued for employee benefit plans and other corporate purposes, which not only helps boost employee morale but also potentially enhances the company's competitive position in the industry, fostering future business growth.
2026 U.S. Labor Market Outlook: HireQuest Predicts a Year of Reset, Reallocation and Stabilization
2026 Labor Market Outlook: The labor market is expected to stabilize in 2026, with a focus on skilled work and flexible contract roles, as employer and employee demands align more closely.
Key Trends Influencing Hiring: Factors such as AI and automation, reshoring, and economic shifts are shaping hiring practices, with a notable rise in demand for skilled roles in manufacturing, healthcare, and technology.
Worker Preferences: Workers are prioritizing local job opportunities and flexibility over relocation, with a significant number of staffing offices reporting stable or improved fill rates.
Sector-Specific Growth: Growth is anticipated in sectors requiring human skills, particularly in manufacturing, healthcare, and logistics, while administrative roles may see slower growth due to automation.
HireQuest (HQI) Receives Upgrade to Buy: Key Information You Need to Know
Zacks Rank Upgrade: HireQuest, Inc. has been upgraded to a Zacks Rank #2 (Buy) due to a significant increase in earnings estimates, indicating a positive outlook for the company's stock price.
Earnings Estimate Revisions: The Zacks rating system, which focuses on earnings estimate revisions, shows a strong correlation between these revisions and near-term stock movements, suggesting that HireQuest's stock may rise as analysts have raised their earnings estimates by 60% over the past three months.
Investment Strategy: The Zacks Rank system classifies stocks based on earnings estimates, with only the top 20% receiving a "Strong Buy" or "Buy" rating, positioning HireQuest favorably for potential market-beating returns.
Future Earnings Projection: Analysts project that HireQuest will earn $0.64 per share for the fiscal year ending December 2025, reflecting stability in earnings expectations despite the recent upgrades.
Transcript of HireQuest (HQI) Earnings Call for Q3 2025
- Author's Perspective: The views and opinions presented are solely those of the author.
- No Official Endorsement: The content does not necessarily reflect the views of Nasdaq, Inc.
HireQuest (HQI) Q2 EPS Beats by 25%
Earnings Performance: HireQuest reported non-GAAP earnings per share of $0.15, exceeding estimates by 25%, despite GAAP revenue falling slightly short at $7.6 million, reflecting a year-over-year decline in both revenue and system-wide sales due to ongoing industry demand softness.
Strategic Focus and Outlook: The company is concentrating on acquisitions, optimizing its franchise model, and managing costs while maintaining a steady quarterly dividend of $0.06 per share; however, management noted uncertainty in future revenue and profit guidance amid persistent challenges in the staffing market.
TrueBlue Adopts Limited Duration Shareholder Rights Agreement
TrueBlue Adopts Shareholder Rights Agreement: TrueBlue's Board of Directors has adopted a limited duration shareholder rights agreement to protect shareholder interests in response to an unsolicited acquisition proposal from HireQuest, Inc. at $7.50 per share.
Rights Agreement Details: The agreement allows TrueBlue to issue preferred share purchase rights to shareholders, which become exercisable if any entity acquires 15% or more of the company's shares without Board approval, providing existing shareholders with purchasing advantages and protecting against unwanted takeovers.
HireQuest Approves $20 Million Share Repurchase Program
- Repurchase Program Launch: HireQuest's Board of Directors has approved a share repurchase program authorizing up to $20 million, set to commence soon and expire within 12 months, aimed at enhancing shareholder value and demonstrating confidence in the company's long-term strategy.
- Commitment to Capital Management: CEO Rick Hermanns stated that the share repurchase is the best and most efficient use of capital at this time, reflecting management's confidence in the company's future while providing capital returns to shareholders.
- Flexible Repurchase Methods: The program allows for share repurchases through various methods including open market purchases, privately negotiated transactions, and block purchases, with the timing and quantity of purchases dependent on market conditions and stock price, showcasing the company's operational flexibility.
- Future Growth Potential: Shares repurchased may be reissued for employee benefit plans and other corporate purposes, which not only helps boost employee morale but also potentially enhances the company's competitive position in the industry, fostering future business growth.
2026 U.S. Labor Market Outlook: HireQuest Predicts a Year of Reset, Reallocation and Stabilization
2026 Labor Market Outlook: The labor market is expected to stabilize in 2026, with a focus on skilled work and flexible contract roles, as employer and employee demands align more closely.
Key Trends Influencing Hiring: Factors such as AI and automation, reshoring, and economic shifts are shaping hiring practices, with a notable rise in demand for skilled roles in manufacturing, healthcare, and technology.
Worker Preferences: Workers are prioritizing local job opportunities and flexibility over relocation, with a significant number of staffing offices reporting stable or improved fill rates.
Sector-Specific Growth: Growth is anticipated in sectors requiring human skills, particularly in manufacturing, healthcare, and logistics, while administrative roles may see slower growth due to automation.
HireQuest (HQI) Receives Upgrade to Buy: Key Information You Need to Know
Zacks Rank Upgrade: HireQuest, Inc. has been upgraded to a Zacks Rank #2 (Buy) due to a significant increase in earnings estimates, indicating a positive outlook for the company's stock price.
Earnings Estimate Revisions: The Zacks rating system, which focuses on earnings estimate revisions, shows a strong correlation between these revisions and near-term stock movements, suggesting that HireQuest's stock may rise as analysts have raised their earnings estimates by 60% over the past three months.
Investment Strategy: The Zacks Rank system classifies stocks based on earnings estimates, with only the top 20% receiving a "Strong Buy" or "Buy" rating, positioning HireQuest favorably for potential market-beating returns.
Future Earnings Projection: Analysts project that HireQuest will earn $0.64 per share for the fiscal year ending December 2025, reflecting stability in earnings expectations despite the recent upgrades.
Transcript of HireQuest (HQI) Earnings Call for Q3 2025
- Author's Perspective: The views and opinions presented are solely those of the author.
- No Official Endorsement: The content does not necessarily reflect the views of Nasdaq, Inc.
HireQuest (HQI) Q2 EPS Beats by 25%
Earnings Performance: HireQuest reported non-GAAP earnings per share of $0.15, exceeding estimates by 25%, despite GAAP revenue falling slightly short at $7.6 million, reflecting a year-over-year decline in both revenue and system-wide sales due to ongoing industry demand softness.
Strategic Focus and Outlook: The company is concentrating on acquisitions, optimizing its franchise model, and managing costs while maintaining a steady quarterly dividend of $0.06 per share; however, management noted uncertainty in future revenue and profit guidance amid persistent challenges in the staffing market.
TrueBlue Adopts Limited Duration Shareholder Rights Agreement
TrueBlue Adopts Shareholder Rights Agreement: TrueBlue's Board of Directors has adopted a limited duration shareholder rights agreement to protect shareholder interests in response to an unsolicited acquisition proposal from HireQuest, Inc. at $7.50 per share.
Rights Agreement Details: The agreement allows TrueBlue to issue preferred share purchase rights to shareholders, which become exercisable if any entity acquires 15% or more of the company's shares without Board approval, providing existing shareholders with purchasing advantages and protecting against unwanted takeovers.
