#USA #financial results #Staffing Services #HireQuest #Goose Creek

HireQuest Reports Financial Results for 2025 Q4 and Year-End

HireQuest, traded on Nasdaq under the symbol HQI, has disclosed its financial performance for the fourth quarter and its full year ending December 31, 2025. This report comes at a time when the staffing industry has faced considerable challenges, yet HireQuest shows promising results.

Key Highlights

Rick Hermanns, President and CEO of HireQuest, emphasized the company’s solid profitability throughout 2025, noting that it ended the year without any debt. This is a notable achievement, particularly given the challenging economic climate experienced by the staffing sector over the past three years.

A significant development during the fourth quarter was a strategic realignment regarding the ownership of MRINetwork, a pivotal segment of the business concerned with executive search. Majority ownership of MRINetwork’s executive search component has been transitioned to a group of experienced franchise owners. This change is expected to enhance alignment with the brand's mission and operational effectiveness while allowing HireQuest to maintain its focus on contract staffing, synergizing its offerings across franchise brands for improved value.

Furthermore, in December, the company's Board of Directors authorized a share repurchase program, permitting the buyback of up to $20 million in common stock, reflecting confidence in its operational strategy and commitment to shareholder returns.

Financial Overview

Fourth Quarter Performance:

• - Franchise royalties for Q4 2025 amounted to $6.6 million, a decrease from $7.6 million in the same quarter of 2024.
• - Total revenue for Q4 was $7.0 million, down from $8.1 million a year earlier, which is a 13% decline.
• - Selling, general, and administrative (SGA) expenses decreased to $4.5 million, a reduction from $5.1 million in Q4 2024.
• - The company recorded a net income of $1.6 million or $0.11 per diluted share, compared to $2.2 million or $0.16 per diluted share in Q4 2024.

Notably, the adjusted net income for Q4 was reported as $2.7 million, consistent with per-share earnings of $0.19, reflecting stability in per-share performance amid different revenue figures.

Full Year Performance:

• - In 2025, franchise royalties totaled $29.0 million, a drop from $32.7 million in 2024, while service revenue fell to $1.6 million from $1.9 million.
• - The total revenue for the year stood at $30.6 million, reflecting an 11.4% decrease compared to $34.6 million in 2024.
• - However, the net income for the year rose to $6.3 million, up from $3.7 million, with per-share earnings improving from $0.26 to $0.45.
• - Adjusted EBITDA stood at $14.1 million, down from $16.2 million in 2024.

The fiscal outlook has shown improvements in various areas, influenced by a substantial shift in the market landscape, particularly in response to client needs for flexibility and a skilled workforce that technology cannot replicate.

Looking Ahead

As HireQuest moves into 2026, it anticipates a stabilized job market characterized by a balance in hiring rather than significant peaks or troughs in demand. The company is strategically positioned to fulfill evolving client requirements for flexible and skilled labor. The franchise staffing model will enable HireQuest to capitalize on these market demands effectively.

In conclusion, while the financial results for 2025 exhibit both challenges and areas of improvement, HireQuest remains steadfast in its growth trajectory, demonstrating resilience and strategic adaptability in a fluctuating economic environment.

For further information, investors are encouraged to participate in HireQuest's upcoming conference call to discuss these financial results in more detail on March 30, 2026.