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1. Company Snapshot

1.a. Company Description

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.

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1.b. Last Insights on HQI

HireQuest, Inc.'s recent performance was negatively impacted by a muted hiring landscape in the US staffing industry. Despite surpassing Q3 earnings and revenue estimates with quarterly earnings of $0.24 per share, the company faced a wait-and-see approach from employers. A quarterly dividend of $0.06 per share was declared, showcasing stability. US Bancorp DE reduced its position in the company by 11.6%. The earnings call highlighted a challenging environment, with a focus on navigating the current landscape.

1.c. Company Highlights

2. HireQuest's Q3 2025 Earnings: A Resilient Performance

HireQuest reported a net income of $2.3 million or $0.16 per share for Q3 2025, demonstrating the company's ability to remain profitable despite a challenging environment. Total revenue was $8.5 million, a decrease of 9.8% from the prior year, while franchise royalties were $8.1 million compared to $9 million last year. Adjusted EBITDA was $4.7 million, and the adjusted EBITDA margin rose to 55% from 52% last year. The actual EPS of $0.16 was higher than the estimated $0.14, indicating a better-than-expected performance.

Publication Date: Nov -26

📋 Highlights
  • Profitability Maintained:: Reported net income of $2.3M ($0.16/share), reversing last year’s $2.2M loss.
  • Revenue Decline:: Total revenue fell 9.8% to $8.5M YoY, with system-wide sales dropping 10% to $133.6M.
  • Adjusted EBITDA Margin Expansion:: Adjusted EBITDA rose to $4.7M (55% margin) vs. $4.9M (52% margin) in Q3 2024.
  • Dividend Continuity:: Paid $0.06/share dividend, with $42.5M credit facility availability post $2.2M draw.
  • Stable M&A Pipeline:: Active pursuit of accretive acquisitions, with CEO noting "plenty" of opportunities despite market challenges.

Revenue and Margin Analysis

The decline in total revenue was largely due to a decrease in system-wide sales, which fell to $133.6 million from $148.6 million last year. However, the company's adjusted EBITDA margin expansion to 55% highlights the effectiveness of its franchise model in maintaining profitability. As Rick Hermanns noted, "Our temp staffing and day labor offerings are outperforming permanent placement and executive search, which can be less predictable by nature."

Business Segment Performance

The day labor business, while still down overall, showed signs of approaching the bottom, with some optimism for future growth. The Snelling franchisees reported some good wins, particularly in certain markets. Meanwhile, the MRI franchisees experienced some departures in the first quarter, but stabilized by the end of Q3.

Valuation and Dividend Analysis

With a P/E Ratio of 17.32 and a Dividend Yield of 2.78%, HireQuest's valuation appears reasonable. The company's ability to maintain a regular quarterly dividend of $0.06 per common share is a positive indicator of its financial stability. The EV/EBITDA ratio of 11.41 suggests that the company's enterprise value is relatively in line with its earnings before interest, taxes, depreciation, and amortization.

Growth Prospects and M&A

HireQuest is actively exploring M&A opportunities, with a pipeline of potential deals that could be immediately accretive to the company's model. While the current market environment has been challenging, management remains optimistic about the company's growth prospects, with analysts estimating a revenue growth rate of 1.1% for next year. The company's strong franchise model and financial position, with $42.5 million in availability on its credit facility, position it well for future growth.

3. NewsRoom

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HireQuest Announces Ownership Structure Change of MRINetwork to a New Leadership Group of Franchise Owners

Dec -01

Source: prnewswire.com

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Bandera Partners LLC Reduces Stock Position in HireQuest, Inc. $HQI

Nov -25

Source: defenseworld.net

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Top Stocks From the Staffing Services Industry to Buy Now

Nov -19

Source: zacks.com

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HireQuest (HQI) Could Find a Support Soon, Here's Why You Should Buy the Stock Now

Nov -18

Source: zacks.com

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2026 U.S. Labor Market Outlook: HireQuest Predicts a Year of Reset, Reallocation and Stabilization

Nov -18

Source: prnewswire.com

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HireQuest (HQI) Upgraded to Buy: Here's What You Should Know

Nov -14

Source: zacks.com

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HireQuest, Inc. Declares Quarterly Dividend

Nov -07

Source: accessnewswire.com

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HireQuest, Inc. (HQI) Q3 2025 Earnings Call Transcript

Nov -07

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.75%)

6. Segments

HireQuest Direct

Expected Growth: 12.3%

Growing demand for flexible workforce solutions, increasing adoption of digital staffing platforms, and rising need for skilled workers drive the growth of HireQuest Direct's workforce management platform.

HireQuest, Snelling, DriverQuest, HireQuest Health, and Northbound

Expected Growth: 7.5%

Growing demand for staffing services, increasing need for flexible workforce, and expansion into new markets drive growth. HireQuest's diversified brand portfolio, including general labor, office and industrial, driving jobs, healthcare staffing, and logistics and transportation, positions the company for sustained growth.

Management Recruiters International

Expected Growth: 7.4%

Growing demand for staffing services, increasing adoption of recruitment process outsourcing, and expansion into new industries drive MRI's growth, with a forecast CAGR of 7.4% from 2023 to 2028.

Service Revenue

Expected Growth: 12.3%

Growing demand for temporary and permanent staffing services, driven by labor market fluctuations and increasing need for workforce flexibility, is expected to drive Service Revenue growth for HireQuest, Inc.

7. Detailed Products

HireGenius

A staffing and recruitment platform that connects employers with qualified candidates

HireFlex

A flexible staffing solution that provides temporary, temporary-to-permanent, and permanent placement services

HirePro

A professional staffing service that specializes in placing skilled professionals in industries such as IT, finance, and healthcare

HireGenie

A workforce management platform that provides real-time visibility and control over contingent labor

HireEdge

A recruitment process outsourcing (RPO) solution that provides customized recruitment services

8. HireQuest, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for HireQuest, Inc. is medium due to the presence of alternative staffing solutions, but the company's specialized services and strong client relationships mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is low for HireQuest, Inc. due to the company's diversified client base and lack of concentration, making it difficult for customers to negotiate prices.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium for HireQuest, Inc. due to the presence of multiple suppliers, but the company's large scale of operations gives it some negotiating power.

Threat Of New Entrants

The threat of new entrants is high for HireQuest, Inc. due to the relatively low barriers to entry in the staffing industry, but the company's established brand and strong client relationships provide some protection.

Intensity Of Rivalry

The intensity of rivalry is high for HireQuest, Inc. due to the competitive nature of the staffing industry, with many established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 19.05%
Debt Cost 9.17%
Equity Weight 80.95%
Equity Cost 9.17%
WACC 9.17%
Leverage 23.54%

11. Quality Control: HireQuest, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Upwork

A-Score: 5.7/10

Value: 4.8

Growth: 8.6

Quality: 8.2

Yield: 0.0

Momentum: 9.5

Volatility: 3.3

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HireQuest

A-Score: 4.2/10

Value: 3.9

Growth: 4.4

Quality: 7.2

Yield: 4.0

Momentum: 1.0

Volatility: 4.7

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A-Score: 3.5/10

Value: 9.8

Growth: 2.7

Quality: 3.0

Yield: 0.0

Momentum: 2.0

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Hudson Global

A-Score: 3.2/10

Value: 9.4

Growth: 0.9

Quality: 4.4

Yield: 0.0

Momentum: 0.0

Volatility: 4.7

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ZipRecruiter

A-Score: 3.0/10

Value: 6.0

Growth: 3.6

Quality: 6.2

Yield: 0.0

Momentum: 0.0

Volatility: 2.3

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Mastech Digital

A-Score: 2.9/10

Value: 4.8

Growth: 2.9

Quality: 5.2

Yield: 0.0

Momentum: 1.5

Volatility: 3.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

8.23$

Current Price

8.23$

Potential

-0.00%

Expected Cash-Flows