GOOSE CREEK, S.C., March 30, 2026 /PRNewswire/ -- HireQuest (Nasdaq: HQI), a national franchisor of on-demand staffing and executive search services, today reported financial results for the fourth quarter and full year ended December 31, 2025.
Rick Hermanns, HireQuest's President and Chief Executive Officer, commented, "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.
"During the fourth quarter, we made a strategic change to the ownership structure of MRINetwork to more effectively engage our global executive search brand, transitioning majority ownership of the executive search piece of the business to a leadership group comprised of current and former MRINetwork franchise owners," Mr. Hermanns continued. "With this change we've aligned the brand's executive search leadership with experienced franchise owner-operators who live its mission each day. HireQuest retains the contract staffing portion of MRINetwork which closely aligns with our other franchise brands. We will continue to provide shared services, scale advantages, and integrated staffing-and-recruiting solutions with the goal of enhancing value for the MRINetwork brand and its owners.
"In December, we announced that our Board of Directors approved a share repurchase program authorizing the Company to repurchase up to $20 million in common stock. We believe this is currently a good and efficient use of our capital and reflects our confidence in HireQuest's long-term strategy and our commitment to returning capital to our shareholders.
"Looking ahead, we're seeing a stabilizing job market in 2026 that won't be defined by a hiring boom or bust, but more by balance. Our customers are prioritizing flexibility, fit, and skilled work that simply can't be automated, and we're ideally positioned with our franchise staffing model to meet those demands," Mr. Hermanns concluded.
Fourth Quarter 2025 Review
Franchise royalties in the fourth quarter of 2025 were $6.6 million compared to $7.6 million in the prior-year period. Service revenue was $392,000 compared to $439,000 in the prior-year period.
Total revenue in the fourth quarter of 2025 was $7.0 million compared to $8.1 million in the prior year period, a decrease of 13.0%.
SG&A expenses in the fourth quarter of 2025 were $4.5 million compared to $5.1 million in the fourth quarter of 2024, a decrease of 12.3%. Workers' compensation expense was approximately $33,000 in the fourth quarter of 2025 compared to approximately $335,000 in the prior year period.
Depreciation and amortization in the fourth quarter of 2025 was approximately $787,000, compared to $697,000 in the fourth quarter of 2024.
Interest and other financing expense in the fourth quarter of 2025 was approximately $30,000 compared to $160,000 for the fourth quarter of 2024. Interest and other financing expense will fluctuate as the Company utilizes the line of credit for acquisitions or other short-term liquidity needs.
Net income in the fourth quarter of 2025 was $1.6 million or $0.11 per diluted share, compared to a net income of $2.2 million, or $0.16 per diluted share, in the fourth quarter of 2024. Included in net income in the fourth quarter of 2025 was an intangible asset charge of approximately $444,000, related to the planned divestiture of the permanent placement franchise business of MRINetwork.
Adjusted net income for the fourth quarter of 2025 was $2.7 million, or $0.19 per diluted share compared to adjusted net income of $2.6 million, or $0.19 per diluted share in the fourth quarter of 2024.
Adjusted EBITDA for the fourth quarter of 2025 was $3.4 million compared to $3.8 million in the fourth quarter of 2024.
System-wide sales for the fourth quarter of 2025 decreased 9.3% to $122.3 million compared to $134.8 million for the fourth quarter of 2024.
Full Year 2025 Review
Franchise royalties for the full year were $29.0 million compared to $32.7 million in full year 2024. Service revenue was $1.6 million compared to $1.9 million in full year 2024.
Total revenue was $30.6 million compared to $34.6 million in full year 2024, a decrease of 11.4%.
SG&A expenses for the full year were $20.7 million compared to $21.4 million for full year 2024. Workers' compensation expense was approximately $89,000 for the full year compared to approximately $2.0 million in full year 2024.
Interest and other financing expense for the full year was approximately $307,000, compared to $923,000 in full year 2024.
Net income in full year 2025 was $6.3 million, or $0.45 per diluted share, compared to net income of $3.7 million, or $0.26 per diluted share, in full year 2024. Included in net income in full year 2025 and 2024 was a goodwill and intangible asset charge of $674,000 and $6.0 million, respectively, related to MRINetwork.
Adjusted net income in 2025 was $10.0 million, or $0.71 per diluted share, consistent with adjusted net income of $9.9 million, or $0.71 per diluted share in full year 2024.
Adjusted EBITDA for full year 2025 was $14.1 million compared to $16.2 million in full year 2024.
System-wide sales in full year 2025 decreased 11.3% to $500.2 million compared to $563.6 million in full year 2024.
Balance Sheet and Capital Structure
Cash was $3.9 million as of December 31, 2025, compared to $2.2 million as of December 31, 2024. Total assets were $88.2 million as of December 31, 2025, compared to $94.0 million as of December 31, 2024. Total liabilities were $19.9 million as of December 31, 2025, compared to $29.2 million as of December 31, 2024.
Working capital as of December 31, 2025, was $33.0 million compared to $25.1 million as of December 31, 2024.
As of December 31, 2025, assuming continued covenant compliance, availability under the line of credit was approximately $40.3 million based on eligible collateral, less letter of credit reserves, bank product reserves, and current advances.
On March 16, 2026, the Company paid a quarterly cash dividend of $0.06 per share of common stock to shareholders of record as of March 2, 2026. The Company intends to pay a $0.06 cash dividend on a quarterly basis, but the declaration of any dividend and the exact amount each quarter will be based on its business results and financial position and is subject to board of directors discretion.
Conference Call
HireQuest will hold a conference call to discuss its financial results.
Date: | Monday, March 30, 2026 |
Time: | 4:30 p.m. Eastern Time |
Toll-free dial-in number: | 888-506-0062 |
International dial-in number: | 973-528-0011 |
Entry code: | 600699 |
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization.
The conference call will be broadcast live and available for replay at https://www.webcaster5.com/Webcast/Page/2359/53661 and via the investor relations section of HireQuest's website at https://hirequest.com/.
A replay of the conference call will be available through Monday, April 13, 2026.
Toll-free replay number: | 877-481-4010 |
International replay number: | 919-882-2331 |
Replay passcode: | 53661 |
About HireQuest
HireQuest is a franchisor of staffing solutions with a presence across the U.S. and international markets. Through its primary divisions - HireQuest Direct, HireQuest Health, Snelling, and TradeCorp - the company provides temporary, direct-hire, and contract staffing solutions across industries, including construction, light industrial, healthcare, finance, manufacturing, cybersecurity, and engineering. From on-demand staffing to executive search, HireQuest's divisions operate as one team for our customers - delivering workforce solutions that drive growth and change lives. For more information, visit www.hirequest.com
Important Cautions Regarding Forward-Looking Statements
This news release includes, and the company's officers and other representatives may sometimes make or provide certain estimates and other forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act, and Section 21E of the Exchange Act, including, among others, statements with respect to future revenue, franchise sales, system-wide sales, net income and Adjusted EBITDA (a non-GAAP Financial Measure); operating results; dividends and shareholder returns; anticipated benefits and synergies of any proposed transaction and future opportunities, including statements regarding value, profitability or growth prospects; cost synergies of any merger or acquisition including those we have completed; intended office openings or closings; expectations of the effect on our financial condition of claims and litigation; strategies for customer retention and growth; strategies for risk management; and all other statements that are not purely historical and that may constitute statements of future expectations. Forward-looking statements can be identified by words such as: "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will," and similar references to future periods.
While the company believes these statements are accurate, forward-looking statements are not historical facts and are inherently uncertain. They are based only on the company's current beliefs, expectations, and assumptions regarding the future of its business, future plans and strategies, projections, anticipated events and trends, the economy, and other future conditions. The company cannot assure you that these expectations will occur, and its actual results may be significantly different. Therefore, you should not place undue reliance on these forward-looking statements. Important factors that may cause actual results to differ materially from those contemplated in any forward-looking statements made by the company include the following: the level of demand and financial performance of the temporary staffing industry; the financial performance of the company's franchisees; our franchisees' and our customers' ability to navigate successfully the challenges posed by instability in the financial and capital markets and the overall economic environment including the impact of increases in the price of oil and gas and any potential recession; changes in customer demand; the relative success or failure of acquisitions and new franchised offerings; our success in reducing workers' compensation expenses; the extent to which the company is successful in gaining new long-term relationships with customers or retaining existing ones, and the level of service failures that could lead customers to use competitors' services; significant investigative or legal proceedings including, without limitation, those brought about by the existing regulatory environment or changes in the regulations governing the temporary staffing industry and those arising from the action or inaction of the company's franchisees and temporary employees; strategic actions, including acquisitions and dispositions and the company's success in integrating acquired businesses including, without limitation, successful integration following any of our various acquisitions; the possibility that any strategic target will not agree to consummate a transaction or that any such transaction is consummated on different terms than currently anticipated; the possibility that conditions to the completion of a proposed transaction, including the receipt of any required shareholder approvals and any required regulatory approvals, will not be met; the possibility that we may be unable to achieve expected synergies and operating efficiencies within an expected time frame or at all and to successfully integrate any acquired operations with ours; the possibility that such integration may be more difficult, time-consuming, or costly than expected, or that operating costs, customer loss and business disruption (including, without limitation, difficulties in maintaining relationships with employees, customers, or suppliers) may be greater than expected following a proposed transaction or the public announcement of a proposed transaction success or failure in determining how to allocate capital; disruptions to the company's technology network including computer systems and software; natural events such as severe weather, fires, floods, and earthquakes, or man-made or other disruptions of the company's operating systems; and the factors discussed in the "Risk Factors" section and elsewhere in the company's most recent Annual Report on Form 10-K and the quarterly reports on Form 10-Q filed thereafter.
Any forward-looking statement made by the company or its management in this news release is based only on information currently available to the company and speaks only as of the date on which it is made. The company and its management disclaim any obligation to update or revise any forward-looking statement, whether written or oral, that may be made from time to time, based on the occurrence of future events, the receipt of new information, or otherwise, except as required by law.
Non-U.S. GAAP Financial Measures
This document contains supplemental financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). Management uses these non-U.S. GAAP measures in its analysis of the Company's performance. These measures should not be considered a substitute for U.S. GAAP basis measures nor should they be viewed as a substitute for operating results determined in accordance with U.S. GAAP. Management believes the presentation of non-U.S. GAAP financial measures that exclude the impact of specified items provide useful supplemental information that is essential to a proper understanding of the Company's financial condition and results. Non-U.S. GAAP measures are not formally defined under U.S. GAAP, and other entities may use calculation methods that differ from those used by us. As a complement to U.S. GAAP financial measures, our management believes these non-U.S. GAAP financial measures assist investors in comparing the financial condition and results of operations of financial institutions due to the industry prevalence of such non-U.S. GAAP measures. See the tables below for a reconciliation of these non-U.S. GAAP measures to the most directly comparable U.S. GAAP financial measures.
Company Contact:
HireQuest
David Hartley, Chief Financial Officer
(800) 835-6755
Email: [email protected]
Investor Relations Contact:
IMS Investor Relations
John Nesbett/Jennifer Belodeau
(203) 972-9200
Email: [email protected]
- Tables Follow -
HireQuest Consolidated Balance Sheets | ||||
(in thousands except share and par value data) | December 31, 2025 | December 31, 2024 | ||
ASSETS | ||||
Current assets | ||||
Cash | $ 3,895 | $ 2,219 | ||
Accounts receivable, net of allowance of $288 thousand and $275 thousand, respectively | 39,281 | 42,348 | ||
Notes receivable | 1,073 | 1,166 | ||
Prepaid expenses, deposits, and other assets | 3,249 | 2,413 | ||
Prepaid workers' compensation | 848 | 1,094 | ||
Total current assets | 48,346 | 49,240 | ||
Property and equipment, net | 4,050 | 4,149 | ||
Workers' compensation claim payment deposit | 1,128 | 1,127 | ||
Franchise agreements, net | 17,242 | 19,737 | ||
Other intangible assets, net | 6,980 | 8,442 | ||
Goodwill | 1,633 | 1,633 | ||
Deferred tax asset | 1,868 | 2,073 | ||
Other assets | 279 | 57 | ||
Notes receivable, net of current portion and allowance of $1.2 million and $773 thousand, | 5,599 | 6,664 | ||
Intangible assets held for sale | 1,102 | 891 | ||
Total assets | $ 88,227 | $ 94,013 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Current liabilities | ||||
Accounts payable | $ 192 | $ 174 | ||
Line of credit | - | 6,829 | ||
Term loans payable | - | 88 | ||
Other current liabilities | 2,186 | 2,018 | ||
Accrued wages, benefits and payroll taxes | 1,800 | 2,557 | ||
Due to franchisees | 7,004 | 7,579 | ||
Risk management incentive program liability | 1,237 | 1,252 | ||
Workers' compensation claims liability | 2,929 | 3,599 | ||
Total current liabilities | 15,348 | 24,096 | ||
Workers' compensation claims liability, net of current portion | 2,232 | 2,707 | ||
Franchisee deposits | 2,326 | 2,406 | ||
Total liabilities | 19,906 | 29,209 | ||
Commitments and contingencies (Note 12) | ||||
Stockholders' equity | ||||
Preferred stock - $0.001 par value, 1,000,000 shares authorized; none issued | - | - | ||
Common stock - $0.001 par value, 30,000,000 shares authorized; 14,079,692 and | 14 | 14 | ||
Additional paid-in capital | 37,222 | 36,286 | ||
Treasury stock, at cost - 48,849 shares and 43,849 shares, respectively | (146) | (146) | ||
Retained earnings | 31,231 | 28,650 | ||
Total stockholders' equity | 68,321 | 64,804 | ||
Total liabilities and stockholders' equity | $ 88,227 | $ 94,013 | ||
HireQuest Consolidated Statement of Income | |||||||
Three months ended (unaudited) | Twelve months ended | ||||||
(in thousands, except per share data) | December 31, 2025 | December 31, 2024 | December 31, 2025 | December 31, 2024 | |||
Franchise royalties | $ 6,640 | $ 7,644 | $ 28,995 | $ 32,673 | |||
Service revenue | 392 | 439 | 1,645 | 1,925 | |||
Total revenue | 7,032 | 8,083 | 30,640 | 34,598 | |||
Selling, general and administrative expenses | 4,489 | 5,120 | 20,676 | 21,406 | |||
Goodwill and intangible asset impairment charge | 444 | - | 674 | 6,035 | |||
Depreciation and amortization | 787 | 697 | 3,008 | 2,789 | |||
Income from operations | 1,312 | 2,266 | 6,282 | 4,368 | |||
Other miscellaneous income | 28 | 133 | 223 | 145 | |||
Interest income | 118 | 132 | 511 | 556 | |||
Interest and other financing expense | (30) | (160) | (307) | (923) | |||
Net income before income taxes | 1,428 | 2,371 | 6,709 | 4,146 | |||
Provision (benefit) for income taxes | (262) | 49 | 100 | 221 | |||
Net income from continuing operations | 1,690 | 2,322 | 6,609 | 3,925 | |||
Loss from discontinued operations, net of tax | (87) | (102) | (279) | (253) | |||
Net income | $ 1,603 | $ 2,220 | $ 6,330 | $ 3,672 | |||
Basic earnings per share | |||||||
Continuing operations | $ 0.12 | $ 0.17 | $ 0.47 | $ 0.29 | |||
Discontinued operations | (0.01) | (0.01) | (0.02) | (0.02) | |||
Total | $ 0.11 | $ 0.16 | $ 0.45 | $ 0.27 | |||
Diluted earnings per share | |||||||
Continuing operations | $ 0.12 | $ 0.17 | $ 0.47 | $ 0.28 | |||
Discontinued operations | (0.01) | (0.01) | (0.02) | (0.02) | |||
Total | $ 0.11 | $ 0.16 | $ 0.45 | $ 0.26 | |||
Weighted average shares outstanding | |||||||
Basic | 14,005 | 13,900 | 13,957 | 13,838 | |||
Diluted | 14,021 | 13,987 | 13,979 | 13,920 | |||
HireQuest Non-U.S. GAAP - Reconciliation of Net Income to Adjusted EBITDA | |||||||
Three months ended (unaudited) | Twelve months ended | ||||||
(in thousands) | December 31, 2025 | December 31, 2024 | December 31, 2025 | December 31, 2024 | |||
Net income | $ 1,603 | $ 2,220 | $ 6,330 | $ 3,672 | |||
Interest and other financing expense | 30 | 160 | 307 | 983 | |||
Provision (benefit) for income taxes | (262) | 49 | 100 | 221 | |||
Depreciation and amortization | 787 | 697 | 3,008 | 2,789 | |||
EBITDA | 2,158 | 3,126 | 9,745 | 7,665 | |||
WOTC related costs | 192 | 157 | 692 | 483 | |||
Non-cash compensation | 112 | 510 | 936 | 1,759 | |||
Goodwill and intangible asset impairment | 562 | - | 892 | 6,035 | |||
Acquisition related charges, net | 110 | (138) | 1,240 | (27) | |||
Impairment of notes receivable | 229 | 150 | 582 | 275 | |||
Adjusted EBITDA | $ 3,363 | $ 3,805 | $ 14,087 | $ 16,190 | |||
HireQuest Non-U.S. GAAP - Reconciliation of Net Income to Adjusted Net Income (unaudited) | |||||||
Three months ended | Twelve months ended | ||||||
(in thousands, except per share data) | December 31, 2025 | December 31, 2024 | December 31, 2025 | December 31, 2024 | |||
Net income | $ 1,603 | $ 2,220 | $ 6,330 | $ 3,672 | |||
Amortization of acquired intangibles | 591 | 541 | 2,229 | 2,160 | |||
Goodwill and intangible asset impairment charge | 562 | - | 892 | 6,035 | |||
Acquisition related charges, net | 110 | (138) | 1,240 | (27) | |||
Impairment of notes receivable | 229 | 150 | 582 | 275 | |||
Tax effect of adjustments (1) | (388) | (144) | (1,285) | (2,195) | |||
Adjusted net income | $ 2,707 | $ 2,629 | $ 9,988 | $ 9,920 | |||
Adjusted net income per diluted share | $ 0.19 | $ 0.19 | $ 0.71 | $ 0.71 | |||
Weighted average diluted shares outstanding | 14,021 | 13,987 | 13,979 | 13,920 | |||
(1) the tax effect includes the application of our estimated combined statutory rate of 26% to all taxable/deductible adjustments. | |||||||
HireQuest Non-U.S. GAAP - Supplemental SG&A Breakdown (unaudited) | |||||||
Three months ended | Twelve months ended | ||||||
(in thousands) | December 31, 2025 | December 31, 2024 | December 31, 2025 | December 31, 2024 | |||
Core SG&A | $ 4,061 | $ 4,691 | $ 18,504 | $ 18,816 | |||
Net workers' compensation expense (benefit) | 33 | 335 | 89 | 1,953 | |||
MRINetwork advertising fund expenses | 56 | 82 | 261 | 389 | |||
Acquisition related charges, net | 110 | (138) | 1,240 | (27) | |||
Impairment of notes receivable | 229 | 150 | 582 | 275 | |||
SG&A | $ 4,489 | $ 5,120 | $ 20,676 | $ 21,406 | |||
SOURCE HireQuest
