HireQuest, Inc. (HQI) came out with quarterly earnings of $0.15 per share, beating the Zacks Consensus Estimate of $0.11 per share. This compares to earnings of $0.15 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +36.36%. A quarter ago, it was expected that this company would post earnings of $0.14 per share when it actually produced earnings of $0.1, delivering a surprise of -28.57%.Over the last four quarters, the company ...

HireQuest (HQI -0.56%), a national staffing franchisor and workforce solutions provider, reported second quarter results on August 7, 2025, for the period ending June 30. The most notable news from the release was that adjusted earnings per share (EPS) reached $0.15, beating the analysts’ consensus estimate of $0.12 by 25.0% (non-GAAP). However, GAAP revenue came in at $7.6 million, slightly below the estimate of $7.66 million. Both revenue (GAAP) and system-wide sales declined by double digits year-over-ye ...

HireQuest (HQI) Q2 2025 Earnings Call August 07, 2025 04:30 PM ET Speaker0Good afternoon, everyone, and thank you for participating in today's conference call to discuss HireQuest's financial results for the second quarter ended 06/30/2025. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. I would now like to turn the call over to John Nesbitt of IMS Investor Relations.Please go ahead ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-38513 HIREQUEST,INC. (Exact name of registrant as specified in its Charter) | Delaware | 91-2079472 | | --- | --- | | (State of incorporation or organization) ...

Exhibit 99.1 HireQuest Reports Financial Results for Second Quarter 2025 GOOSE CREEK, South Carolina – August 7, 2025 – HireQuest, Inc. (Nasdaq: HQI), a national franchisor of on-demand staffing and executive search services, today reported financial results for the second quarter ended June 30, 2025. Rick Hermanns, HireQuest's President and Chief Executive Officer, commented, "We continued to deliver solid results and profitability in the second quarter of 2025 despite the protracted softness in the staffi ...

HireQuest (HQI) FY 2025 Annual General Meeting June 18, 2025 02:00 PM ET Speaker0Good afternoon. Will the meeting please come to order? My name is Rick Herman's and I am the CEO and Chairman of the Board of HireQuest Inc. To the twenty twenty five Annual Meeting of the Stockholders. This meeting is being webcast live and the webcast will be posted on our website after the meeting.An agenda that outlines the order of business is available on the website under meeting information. The matters on which the sto ...

HireQuest (HQI) Q1 2025 Earnings Call May 08, 2025 04:30 PM ET Company Participants Jennifer Belodeau - Vice PresidentRick Hermanns - President and Chief Executive OfficerSteve Crane - CFOKevin Steinke - Managing Director Operator Good afternoon, everyone, and thank you for participating in today's conference call to discuss HireQuest's financial results for the First Quarter ended 03/31/2025. At this time, all participants are in a listen only mode. A question and answer session will follow the formal pres ...

HireQuest (HQI) Q1 2025 Earnings Call May 08, 2025 04:30 PM ET Speaker0 Good afternoon, everyone, and thank you for participating in today's conference call to discuss HireQuest's financial results for the First Quarter ended 03/31/2025. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. I would now like to turn the call over to Jennifer Belladeau of IMS Investor Relations. Please go a ...

[PART I. FINANCIAL INFORMATION](index=2&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section covers HireQuest, Inc.'s Q1 2025 financial statements, management's analysis, market risk, and internal controls [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) HireQuest, Inc.'s Q1 2025 financial statements show a slight asset decrease, lower revenue and net income, but improved operating cash flow [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets slightly decreased, liabilities fell, and stockholders' equity rose, with a reduced line of credit Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$93,737** | **$94,013** | | Cash | $2,087 | $2,219 | | Accounts receivable, net | $42,218 | $42,348 | | Goodwill | $1,633 | $1,633 | | **Total Liabilities** | **$28,173** | **$29,209** | | Line of credit | $5,456 | $6,829 | | Total current liabilities | $23,268 | $24,096 | | **Total Stockholders' Equity** | **$65,564** | **$64,804** | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) Q1 2025 total revenue and net income declined due to lower franchise royalties compared to the prior-year period Q1 2025 vs Q1 2024 Performance (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Franchise royalties | $6,960 | $7,831 | | **Total revenue** | **$7,472** | **$8,419** | | Income from operations | $1,483 | $2,102 | | **Net income** | **$1,363** | **$1,619** | | Diluted earnings per share | $0.10 | $0.12 | [Consolidated Statements of Changes in Stockholders' Equity](index=5&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity) Stockholders' equity increased in Q1 2025, driven by net income and stock-based compensation, partially offset by dividends - Key changes in stockholders' equity for Q1 2025 included net income of **$1.36 million** and dividend payments of **$842 thousand**[14](index=14&type=chunk) [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Q1 2025 saw improved operating cash flow, significant cash used in financing, resulting in a slight decrease in the overall cash balance Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $1,854 | $(967) | | Net cash provided by investing activities | $316 | $213 | | Net cash (used in) provided by financing activities | $(2,302) | $981 | | **Net (decrease) increase in cash** | **$(132)** | **$227** | [Notes to Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail accounting policies, recent acquisitions, and financial instruments, including the franchise model, RTS acquisition, and credit facility status - As of March 31, 2025, the company had **424** franchisee-owned offices and **1** company-owned office across **43** states, D.C., and **13** other countries[21](index=21&type=chunk) - On December 30, 2024, the company acquired Ready Temporary Staffing, LLC (RTS) for **$1.4 million** in cash[20](index=20&type=chunk)[37](index=37&type=chunk) - The company has a **$50 million** revolving credit facility with Bank of America, with approximately **$5.4 million** drawn and **$9.2 million** utilized for letters of credit as of March 31, 2025[56](index=56&type=chunk)[61](index=61&type=chunk) - The company paid a quarterly dividend of **$0.06 per share**, totaling **$842 thousand** in Q1 2025[68](index=68&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 revenue decline due to lower system-wide sales, reduced operating expenses, decreased Adjusted EBITDA, and strong liquidity [Results of Operations](index=24&type=section&id=Results%20of%20Operations) Q1 2025 total revenue decreased due to lower system-wide sales, while operating expenses fell, leading to reduced income from operations - Total revenue decreased **11.2%** year-over-year, driven by an **11.7%** (**$15.6 million**) decrease in system-wide sales, led by MRI, HQ Direct, and Snelling/HQ brands[117](index=117&type=chunk) Franchise Royalties by Brand (in thousands) | Brand | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | HireQuest Direct | $3,587 | $3,823 | | Snelling and HireQuest | $1,953 | $2,110 | | Northbound, MRI, and SearchPath | $1,158 | $1,649 | | **Total Franchise Royalties** | **$6,960** | **$7,831** | - Workers' compensation expense decreased significantly to **$28 thousand** in Q1 2025 from **$572 thousand** in Q1 2024[123](index=123&type=chunk) - The effective tax rate for continuing operations was **10.5%** in Q1 2025, compared to **16.7%** in Q1 2024, primarily due to the federal Work Opportunity Tax Credit (WOTC)[88](index=88&type=chunk)[132](index=132&type=chunk) [Use of Non-GAAP Financial Measure: Adjusted EBITDA](index=24&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measure%3A%20Adjusted%20EBITDA) Adjusted EBITDA, a non-GAAP measure, decreased to $2.8 million in Q1 2025, reflecting adjustments to net income for various items Adjusted EBITDA Reconciliation (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income | $1,363 | $1,619 | | Interest expense | $144 | $243 | | Provision for income taxes | $169 | $340 | | Depreciation and amortization | $734 | $698 | | EBITDA | $2,410 | $2,900 | | Non-cash compensation | $239 | $362 | | Acquisition related (gains) charges, net | $(103) | $11 | | **Adjusted EBITDA** | **$2,799** | **$3,358** | [Key Performance Indicator: System-Wide Sales](index=32&type=section&id=Key%20Performance%20Indicator%3A%20System-Wide%20Sales) System-wide sales decreased by 11.7% in Q1 2025, with significant declines in the Northbound, MRI, SearchPath, and HireQuest Health segments System-Wide Sales by Brand (in thousands) | Brand | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | HireQuest Direct | $51,572 | $54,333 | (5.1)% | | Snelling and HireQuest | $33,660 | $36,559 | (7.9)% | | Northbound, MRI, and SearchPath | $28,675 | $38,350 | (25.2)% | | HireQuest Health | $1,143 | $1,728 | (33.9)% | | **Total System-wide sales** | **$118,391** | **$134,035** | **(11.7)%** | [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with $27.3 million in working capital and $34.8 million available under its credit facility - At March 31, 2025, working capital (current assets minus current liabilities) was approximately **$27.3 million**[138](index=138&type=chunk) - Cash provided by continuing operations was **$1.9 million** in Q1 2025, compared to cash used of **$0.9 million** in Q1 2024[142](index=142&type=chunk) - As of March 31, 2025, availability under the Senior Credit Facility was approximately **$34.8 million**[149](index=149&type=chunk) [Number of Offices](index=33&type=section&id=Number%20of%20Offices) The total number of offices decreased by one in Q1 2025, with two new openings offset by three closures Office Count Reconciliation | Period | Count | | :--- | :--- | | Offices, December 31, 2024 | 425 | | Opened in 2025 | 2 | | Closed in 2025 | (3) | | **Offices, March 31, 2025** | **424** | [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=33&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) As a smaller reporting company, HireQuest is exempt from providing quantitative and qualitative market risk disclosures - As a "smaller reporting company" defined by Rule 12b-2 of the Exchange Act, HireQuest is not required to provide quantitative and qualitative disclosures about market risk[157](index=157&type=chunk) [Item 4. Controls and Procedures](index=33&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were ineffective due to a material weakness in accounting resources, with remediation efforts underway - Management concluded that disclosure controls and procedures were not effective as of March 31, 2025, due to a continuing material weakness[158](index=158&type=chunk) - The material weakness stems from insufficient accounting resources to handle technical accounting issues and provide adequate review; remediation efforts are underway[159](index=159&type=chunk) - Despite the material weakness, management concluded that the financial statements are fairly presented in all material respects[160](index=160&type=chunk) [PART II. OTHER INFORMATION](index=35&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section addresses legal proceedings, risk factors, equity sales, and other required disclosures [Item 1. Legal Proceedings](index=35&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings but does not anticipate any material uninsured losses from these matters - The company does not expect current legal proceedings to have a material adverse effect on its business, financial condition, or results of operations[164](index=164&type=chunk) [Item 1A. Risk Factors](index=35&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred in the company's risk factors since the filing of its 2023 Annual Report on Form 10-K - No material changes have occurred in the company's risk factors since the filing of its 2023 Form 10-K[165](index=165&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=35&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - None[166](index=166&type=chunk) [Item 5. Other Information](index=35&type=section&id=Item%205.%20Other%20Information) The company reported no other information for this item - None[167](index=167&type=chunk) [Item 6. Exhibits](index=35&type=section&id=Item%206.%20Exhibits) The report includes various exhibits, notably CEO and CFO certifications and Inline XBRL data files - Filed exhibits include CEO and CFO certifications (Exhibits **31.1**, **31.2**, **32.1**) and Inline XBRL documents (Exhibit **101** series)[168](index=168&type=chunk)

[Financial Highlights](index=1&type=section&id=First%20Quarter%202025%20Summary) HireQuest reported a decline in key financial metrics for Q1 2025 compared to the prior year, with system-wide sales, total revenue, and net income all decreasing. The company attributes this to macroeconomic headwinds affecting the staffing industry, but notes it maintained solid margins and profitability | Financial Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | System-wide Sales | $118.4 million | $134.0 million | -11.7% | | Total Revenue | $7.5 million | $8.4 million | -11.2% | | Net Income | $1.4 million | $1.6 million | -12.5% | | Diluted EPS | $0.10 | $0.12 | -16.7% | | Adjusted Net Income | $1.8 million | $2.0 million | -10.0% | | Adjusted EBITDA | $2.8 million | $3.4 million | -17.6% | - The company's first-quarter results reflect the broader staffing industry's challenges, which continue to be impacted by macroeconomic headwinds[5](index=5&type=chunk) [Management Commentary & Strategy](index=1&type=section&id=Management%20Commentary%20%26%20Strategy) The CEO highlighted the company's resilience due to its franchise model and expense management, despite industry-wide headwinds. Acquisitions remain a key growth strategy, with a strong M&A pipeline. A change in CFO was also announced, with David Hartley succeeding the retiring Steve Crane - Despite macroeconomic challenges, the company achieved **solid margins and profitability**, attributed to the strength of its franchise model and a focus on expense management[5](index=5&type=chunk) - Acquisitions are a key component of the long-term growth plan to expand the company's geographic footprint and market verticals. The M&A pipeline is reported to be strong[5](index=5&type=chunk) - David Hartley has been appointed as the new Chief Financial Officer, succeeding Steve Crane, who is retiring[6](index=6&type=chunk) [Detailed Financial Performance](index=1&type=section&id=First%20Quarter%202025%20Financial%20Results) In Q1 2025, total revenue decreased by 11.2% to $7.5 million, primarily due to a drop in franchise royalties. The company successfully reduced SG&A expenses by 6.5% and saw a significant decrease in net workers' compensation expense. Consequently, income from operations was $1.5 million, down from $2.1 million in the prior-year period | Revenue & Expenses (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Franchise Royalties | $7,000 | $7,800 | | Service Revenue | $512 | $588 | | **Total Revenue** | **$7,500** | **$8,400** | | SG&A Expenses | $5,300 | $5,600 | | Net Workers' Compensation Expense | $28 | $572 | | Depreciation and Amortization | $734 | $698 | | Profitability (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Income from Operations | $1,500 | $2,100 | | Net Income | $1,400 | $1,600 | [Balance Sheet and Capital Structure](index=1&type=section&id=Balance%20Sheet%20and%20Capital%20Structure) As of March 31, 2025, HireQuest maintained a stable balance sheet with total assets of $93.7 million and total liabilities of $28.2 million. The company had $2.1 million in cash and approximately $34.8 million available under its line of credit. A quarterly cash dividend of $0.06 per share was paid in March 2025, with the intention to continue this quarterly payment, subject to board approval | Balance Sheet Item (in millions) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash | $2.1 | $2.2 | | Total Assets | $93.7 | $94.0 | | Total Liabilities | $28.2 | $29.2 | - Working capital increased to **$27.4 million** as of March 31, 2025, from **$25.1 million** at the end of 2024[12](index=12&type=chunk) - The company has approximately **$34.8 million** available under its line of credit, assuming continued covenant compliance[12](index=12&type=chunk) - A quarterly cash dividend of **$0.06 per share** was paid on March 17, 2025. The company intends to continue this quarterly dividend, subject to board discretion[13](index=13&type=chunk) [Non-GAAP Financial Measures](index=3&type=section&id=Non-U.S.%20GAAP%20Financial%20Measures) The company reported non-GAAP adjusted EBITDA of $2.8 million and adjusted net income of $1.8 million for Q1 2025, both showing a decrease from the prior year. These figures adjust for items like amortization of acquired intangible assets, acquisition-related charges, and non-cash compensation to provide what management believes is a clearer view of core operational performance | Non-GAAP Metric (in millions) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Adjusted EBITDA | $2.8 | $3.4 | | Adjusted Net Income | $1.8 | $2.0 | - Management uses non-GAAP measures, which exclude certain items, to supplement U.S. GAAP results and provide a better understanding of the company's financial condition and performance[24](index=24&type=chunk) [Financial Statements](index=4&type=section&id=Financial%20Statements) This section contains the detailed, unaudited consolidated financial statements for the period ended March 31, 2025, including the Balance Sheets, Statement of Income, and reconciliations of GAAP to non-GAAP measures such as Adjusted EBITDA and Adjusted Net Income [Consolidated Balance Sheets](index=4&type=section&id=HireQuest%2C%20Inc.%20Consolidated%20Balance%20Sheets) | Key Balance Sheet Items (in thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total current assets | $50,640 | $49,240 | | Total assets | $93,737 | $94,013 | | Total current liabilities | $23,268 | $24,096 | | Total liabilities | $28,173 | $29,209 | | Total stockholders' equity | $65,564 | $64,804 | [Consolidated Statement of Income](index=5&type=section&id=HireQuest%2C%20Inc.%20Consolidated%20Statement%20of%20Income) | Income Statement (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total revenue | $7,472 | $8,419 | | Income from operations | $1,483 | $2,102 | | Net income | $1,363 | $1,619 | | Diluted earnings per share | $0.10 | $0.12 | [Reconciliation of Net Income to Adjusted EBITDA](index=6&type=section&id=HireQuest%2C%20Inc.%20Non-U.S.%20GAAP%20-%20Reconciliation%20of%20Net%20Income%20to%20Adjusted%20EBITDA) | Reconciliation to Adjusted EBITDA (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income | $1,363 | $1,619 | | Adjustments (Interest, Taxes, D&A, etc.) | $1,436 | $1,739 | | **Adjusted EBITDA** | **$2,799** | **$3,358** | [Reconciliation of Net Income to Adjusted Net Income](index=7&type=section&id=HireQuest%2C%20Inc.%20Non-U.S.%20GAAP%20-%20Reconciliation%20of%20Net%20Income%20to%20Adjusted%20Net%20Income) | Reconciliation to Adjusted Net Income (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income | $1,363 | $1,619 | | Adjustments (Amortization, acquisition charges, etc.) | $400 | $408 | | **Adjusted net income** | **$1,763** | **$2,027** | [Conference Call Information](index=2&type=section&id=Conference%20Call) HireQuest will host a conference call on May 8, 2025, at 4:30 p.m. Eastern Time to discuss the Q1 2025 financial results. Dial-in numbers and a webcast link are provided for participation, with a replay available until May 22, 2025 - The conference call to discuss financial results is scheduled for Thursday, May 8, 2025, at **4:30 p.m. Eastern Time**[15](index=15&type=chunk) - A live broadcast and replay of the call will be available via webcast[16](index=16&type=chunk) - A telephone replay of the conference call will be available through Thursday, May 22, 2025[17](index=17&type=chunk)[18](index=18&type=chunk)