Industry Overview - The Staffing Firms industry is expected to gradually recover to pre-pandemic levels, enabling companies to pay regular dividends [1] - The industry encompasses a wide range of human resources and workforce solutions, including recruitment, payroll administration, and organizational planning [2] Market Trends - There is stable demand in the mature business services industry, with revenues and cash flows anticipated to recover to pre-pandemic levels [3] - The adoption of remote work and hybrid models has significantly increased, prompting staffing agencies to focus on flexible staffing solutions [4] - Technological advancements are being implemented to enhance operational efficiency, with AI-driven tools and platforms becoming more prevalent [5] Industry Performance - The Zacks Staffing Firms industry currently holds a Zacks Industry Rank of 227, placing it in the bottom 7% of 244 Zacks industries, indicating sluggish near-term prospects [6] - Over the past year, the industry has underperformed the S&P 500, declining 39.2% compared to the S&P 500's growth of 18.9% [8] Valuation Metrics - The industry is currently trading at an EV-to-EBITDA ratio of 5.76X, significantly lower than the S&P 500's 18.98X and the sector's 10.7X [9] Company Highlights Resources Connection (RGP) - RGP has seen favorable international growth, particularly in Europe, India, Japan, and the Philippines, with steady revenues and improved gross margins [14] - The company holds $90 million in cash with zero current debt, indicating a strong balance sheet [16] - RGP's current ratio is 2.64, suggesting strong short-term debt coverage capability [16] - The Zacks Consensus Estimate for RGP's 2025 earnings per share has been revised up by 14.3% [17] Kforce (KFRC) - Kforce reported a top line of $332.6 million and 63 cents in EPS, exceeding expectations [18] - The company maintains a strong balance sheet with zero current debt and a current ratio of 1.88 [20] - KFRC's shares have gained 21.1% over the past three months [21] HireQuest (HQI) - HQI's system-wide sales grew 6.1% year-over-year, with a net income of $2.3 million in the third quarter of 2025 [21][22] - The company's current ratio is 2.4, indicating a strong liquidity position [23] - HQI's shares have gained 29.6% over the past three months [23]

Core Viewpoint - HireQuest, Inc. has announced a share repurchase program authorizing the repurchase of up to $20 million of its outstanding shares, reflecting confidence in its long-term strategy and commitment to capital management [1][2]. Company Overview - HireQuest is a global franchisor providing on-demand staffing and executive search services, employing thousands across various industries through its divisions, including HireQuest Direct and MRINetwork [3]. Share Repurchase Program Details - The Repurchase Program will commence as soon as reasonably possible and will last for twelve months [1]. - The company may repurchase shares through various methods, including open market purchases and privately negotiated transactions, depending on market conditions and legal requirements [2]. - The program can be modified, suspended, or terminated at any time without prior notice [2].

Core Insights - HireQuest has announced a new ownership structure for MRINetwork, transitioning majority ownership to a leadership group of current and former franchise owners while retaining partial ownership to support the brand [1][3][6] - The new leadership, led by Shana Applebaum, aims to focus on growth, strengthen client partnerships, and unify the global network into a high-performing organization [2][3] Company Overview - MRINetwork has been a leader in the search and recruitment industry since 1965, providing a full range of talent advisory solutions through a global network of offices [5] - HireQuest operates as a global franchisor of on-demand staffing and executive search services, employing thousands across various industries [7] Leadership and Strategy - The new leadership group consists of experienced franchise owner-operators who will guide the network's strategy and operational best practices [6] - Shana Applebaum, appointed as Managing Director, emphasizes enhancing collaboration and positioning MRINetwork for long-term success [3][5] Transaction Details - The transaction is expected to close in the coming weeks, with the new leadership group collaborating with HireQuest to launch an enhanced service model and strategic initiatives starting in Q1 2026 [4][6] Market Context - Despite challenges in the executive search market, there are signs of renewed activity, with major firms experiencing positive revenue impacts due to demographic trends and high executive turnover [6]

Core Viewpoint - Shares of HireQuest, Inc. (HQI) have recently experienced a decline of 7.9% over the past week, but the formation of a hammer chart pattern suggests potential support and a possible trend reversal in the future [1][2]. Technical Analysis - The hammer chart pattern indicates a minor difference between opening and closing prices, with a long lower wick, suggesting that the stock may have found support after a downtrend [4][5]. - This pattern typically signals that bears may have lost control, indicating a potential trend reversal if buying interest emerges [5]. Fundamental Analysis - There has been a positive trend in earnings estimate revisions for HQI, with a 23.1% increase in the consensus EPS estimate for the current year over the last 30 days, indicating that analysts expect better earnings than previously predicted [7][8]. - HQI currently holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which historically outperforms the market [9][10].

Core Insights - The article highlights a projected labor market in 2026 characterized by increased demand for skilled labor, flexible contract roles, and a stronger alignment between employer and employee expectations [1] Group 1: Labor Market Trends - The data indicates a renewed demand for skilled work, suggesting a shift in the labor market dynamics [1] - There is an anticipated rise in flexible contract roles, reflecting changing preferences among workers [1] - The alignment between employer and employee demands is expected to strengthen, indicating a potential shift in negotiation power [1]

Core Viewpoint - HireQuest, Inc. (HQI) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of changing earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Rising earnings estimates for HireQuest indicate an improvement in the company's underlying business, likely leading to an increase in stock price [5][10]. Zacks Rating System - The Zacks Rank stock-rating system categorizes stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7]. - The system maintains a balanced distribution of "buy" and "sell" ratings, ensuring that only the top 20% of stocks receive a "Strong Buy" or "Buy" rating [9][10]. Earnings Estimate Revisions for HireQuest - For the fiscal year ending December 2025, HireQuest is expected to earn $0.64 per share, with no year-over-year change [8]. - Over the past three months, the Zacks Consensus Estimate for HireQuest has increased by 60%, reflecting positive sentiment among analysts [8].

Core Insights - New Age Metals Inc. has engaged Axiom Exploration Group Ltd. to conduct a helicopter-borne Xcite™ Time Domain Electromagnetic (TDEM) survey over its Sentinel Antimony Property, with a LiDAR survey planned for Spring 2026 [1][3]. Group 1: Project Details - The Sentinel Property is located approximately 5 kilometers southwest of the Beaver Brook Antimony Mine, which is Canada's only primary antimony producer, known for its high-grade stibnite-quartz mineralization [2][3]. - This marks the first modern airborne geophysical program over the Sentinel Property, featuring a high-resolution TDEM survey with 100-meter line spacing [3][4]. - The Beaver Brook Mine has a historical resource of 2.2 million tonnes grading 3.99% Sb at a 1.5% cut-off grade [3]. Group 2: Survey Objectives and Methodology - The XCITE survey will cover approximately 460 line-kilometers and aims to identify conductive horizons that may correspond to graphitic sedimentary units associated with antimony-bearing structures [4][5]. - The data collected will be used to generate 3D conductivity models, aiding in the identification of potential fault-hosted conductors and graphitic horizons similar to those at Beaver Brook [5][8]. Group 3: Future Steps - After the airborne survey, Axiom will provide conductivity depth imaging products and magnetic maps to guide further ground follow-up [8]. - The company plans to integrate geophysical results with soil geochemistry and lithostructural mapping to prioritize future drill targets [8].

Core Insights - HireQuest, Inc. (HQI) reported quarterly earnings of $0.24 per share, exceeding the Zacks Consensus Estimate of $0.14 per share, and showing an increase from $0.20 per share a year ago, resulting in an earnings surprise of +71.43% [1] - The company generated revenues of $8.5 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 11.42%, although this represents a decline from year-ago revenues of $9.42 million [2] - HireQuest has outperformed consensus EPS estimates three times over the last four quarters and has topped consensus revenue estimates two times in the same period [2] Earnings Outlook - The sustainability of the stock's price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.10 on revenues of $7.03 million, and for the current fiscal year, it is $0.52 on revenues of $29.77 million [7] Industry Context - The Staffing Firms industry, to which HireQuest belongs, is currently ranked in the bottom 19% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact HireQuest's stock performance [5][6]

Financial Data and Key Metrics Changes - The company reported a net income of $2.3 million, or $0.16 per share, compared to a net loss of $2.2 million, or a loss of $0.16 per share in the same quarter last year [4][11] - Total revenue decreased by 9.8% to $8.5 million from $9.4 million in the prior year [9] - Adjusted net income increased to $3.4 million, or $0.24 per diluted share, compared to $2.8 million, or $0.20 per diluted share last year [12] - Adjusted EBITDA was $4.7 million, down from $4.9 million last year, but the adjusted EBITDA margin rose to 55% from 52% [12] Business Line Data and Key Metrics Changes - Franchise royalties were $8.1 million compared to $9 million for the same quarter last year, while service revenue was $387,000 compared to $428,000 last year [9] - System-wide sales in the third quarter were $133.6 million, down from $148.6 million last year, but showed a sequential increase of 6.1% over Q2 [10] - The Snelling division performed well, indicating a slight increase in demand for longer-term staffing in light industrial and administrative fields [6] Market Data and Key Metrics Changes - The overall staffing market has shown mixed signals throughout 2025, influenced by macroeconomic factors such as tariffs and immigration policies [5] - Demand for temporary and day labor staffing is outperforming permanent placement and executive search services [5] Company Strategy and Development Direction - M&A remains a key part of the company's growth strategy, with several opportunities being explored that could be immediately accretive [8] - The company is focused on maintaining profitability and flexibility in a challenging market environment, which has been demonstrated over the past 11 quarters [33] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the stabilization of the day labor business, noting that while there are still challenges, there are signs of improvement [19][20] - The company is skeptical about the impact of immigration enforcement on demand, despite some business wins attributed to it [27][29] Other Important Information - The company has maintained a regular quarterly dividend since Q3 2020, with the most recent dividend being $0.06 per common share [15] - Total assets as of September 30, 2025, were $94.9 million, with working capital increasing to $31.5 million [13][14] Q&A Session Summary Question: Improvement in day labor business - Management indicated that the day labor market is stabilizing, with some regions showing reasonable demand, although overall performance is still below desired levels [19][20] Question: Competitive wins for Snelling franchisees - The large wins for Snelling franchisees were attributed to exceptional performance rather than overall market improvement, with a stable environment noted [21][22] Question: Non-renewals of MRI franchisee agreements - Management confirmed that there were significant non-renewals in previous quarters, but active MRI franchisees showed signs of stabilization by the end of the quarter [23][24] Question: M&A opportunities in the current market - The pipeline for M&A opportunities remains stable, with expectations for increased activity in the coming months as companies prepare for year-end results [25][26] Question: Impact of tighter immigration enforcement - Management acknowledged some business wins due to immigration enforcement but expressed skepticism about the overall demand increase, noting that the effects may take time to materialize [27][29]

Revenue Performance - For the three months ended September 30, 2025, total revenue was $8,497,000, a decrease of 9.7% from $9,416,000 for the same period in 2024[107]. - Total revenue for the three months ended September 30, 2025 was approximately $8.5 million, a decrease of approximately 9.8% from $9.4 million for the same period in 2024[113]. - Total revenue for the nine months ended September 30, 2025 was approximately $23.6 million, a decrease of approximately 11.0% from $26.5 million for the same period in 2024[132]. Franchise Royalties - Franchise royalties accounted for 95.4% of total revenue in Q3 2025, totaling $8,110,000, compared to 95.5% and $8,988,000 in Q3 2024[107]. - Franchise royalties for the three months ended September 30, 2025 were approximately $8.1 million, a decrease of approximately 9.8% from $9.0 million for the same period in 2024[114]. - Franchise royalties for the nine months ended September 30, 2025 were approximately $22.4 million, a decrease of approximately 10.7% from $25.0 million for the same period in 2024[133]. Net Income and EBITDA - Net income for the three months ended September 30, 2025, was $2,304,000, compared to a net loss of $2,207,000 in the same period of 2024[107]. - Adjusted EBITDA for Q3 2025 was $4,651,000, representing 54.7% of total revenue, compared to $4,926,000 or 52.3% in Q3 2024[107]. - Adjusted EBITDA for the three months ended September 30, 2025 was $4.7 million, compared to $4.9 million for the same period in 2024[111]. Operating Expenses - Selling, general, and administrative expenses for Q3 2025 were $5,070,000, representing 59.7% of total revenue, compared to 57.1% in Q3 2024[107]. - Total operating expenses for the three months ended September 30, 2025 were approximately $6.1 million, a significant decrease from $12.1 million for the same period in 2024[118]. - Total operating expenses for the nine months ended September 30, 2025 were approximately $18.6 million, a decrease of $5.8 million from $24.4 million in the same period of 2024[136]. Impairment Charges - The company reported a goodwill and intangible asset impairment charge of $230,000 for Q3 2025, significantly lower than $6,035,000 in Q3 2024[107]. - The company recorded a goodwill and intangible asset impairment charge of $330 thousand for the three months ended September 30, 2025, compared to $6.0 million for the same period in 2024[111]. Employment and Operations - The company employed approximately 65,000 temporary employees annually across various industries, including construction, healthcare, and logistics[103]. - The company operates 399 franchisee-owned offices and 1 company-owned office in 43 states and 13 countries as of September 30, 2025[103]. - The total number of offices decreased from 425 at the end of 2024 to 400 by September 30, 2025, reflecting a net closure of 25 offices[171]. Strategic Initiatives - Management is pursuing both organic growth and acquisition strategies, focusing on expanding existing client business and identifying strategic acquisitions[104]. - The company anticipates future growth opportunities through national and global account opportunities for franchisees and new franchise offerings[104]. Financial Metrics - Interest and other financing expense decreased from $268 thousand for the three months ended September 30, 2024 to $63 thousand for the same period in 2025[126]. - Cash provided by continuing operations was approximately $5.5 million for the nine months ended September 30, 2025, compared to $3.5 million in the same period of 2024[155]. - Income tax expense was approximately $362 thousand for the nine months ended September 30, 2025, with an effective tax rate of 6.9%[145]. Market Conditions - The ongoing geopolitical conflicts and economic sanctions have led to rising energy prices and inflationary pressures, potentially impacting demand for labor services[165]. - The company does not expect the recent changes in federal tax law to have a material impact on its financial position or results of operations[163]. - The company is currently evaluating the potential effects of U.S. government policy shifts on its operations and market conditions[164].