GOOSE CREEK, SC / ACCESS Newswire / November 6, 2025 / HireQuest, Inc. (Nasdaq:HQI), a national franchisor of on-demand staffing and executive search services, today reported financial results for the third quarter ended September 30, 2025. Rick Hermanns, HireQuest's President and Chief Executive Officer, commented, "The U.S. staffing industry continued to contend with a muted hiring landscape in the third quarter, as employers maintained a wait and see approach to their hiring activities. ...

Core Viewpoint - HireQuest, Inc. will hold a conference call to discuss its Q3 financial results on November 6, 2025, at 4:30 p.m. Eastern Time [1] Company Summary - HireQuest, Inc. is a national franchisor specializing in direct dispatch, executive search, and commercial staffing services [1]

HireQuest, Inc. (HQI) shares ended the last trading session 5.4% higher at $8.77. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 16.8% loss over the past four weeks.The stock’s uptick reflected a rebound after several days of decline, likely driven by overall positive momentum in the broader market.This company is expected to post quarterly earnings of $0.14 per share in its upcoming report, which represents a yea ...

Core Insights - HireQuest, Inc. reported quarterly earnings of $0.15 per share, exceeding the Zacks Consensus Estimate of $0.11 per share, with a year-over-year comparison showing no change in earnings [1] - The company achieved a revenue of $7.64 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.57%, although this represents a decline from $8.68 million in the same quarter last year [2] - HireQuest's stock has underperformed, losing approximately 31% since the beginning of the year, while the S&P 500 has gained 7.9% [3] Earnings Performance - Over the last four quarters, HireQuest has surpassed consensus EPS estimates three times [2] - The company had a previous earnings surprise of -28.57% when it reported earnings of $0.10 per share against an expectation of $0.14 per share [1][2] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.11 on revenues of $7.59 million, and for the current fiscal year, it is $0.40 on revenues of $34.2 million [7] - The estimate revisions trend for HireQuest was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Staffing Firms industry, to which HireQuest belongs, is currently ranked in the bottom 21% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Core Insights - HireQuest reported adjusted earnings per share (EPS) of $0.15, exceeding analysts' expectations of $0.12 by 25.0% [1] - GAAP revenue was $7.6 million, slightly below the estimate of $7.66 million, with both revenue and system-wide sales declining by double digits year-over-year [1][5] Financial Performance - Non-GAAP adjusted EPS decreased by 16.7% from $0.18 in Q2 2024 [2] - GAAP revenue fell by 12.0% from $8.7 million in Q2 2024 [2] - Adjusted EBITDA dropped by 18.9% to $3.3 million compared to the prior year [2][6] - System-wide sales decreased by 13.9% to $125.9 million [2][6] - GAAP net income was $1.1 million, down from $2.0 million in Q2 2024 [6] Operational Highlights - SG&A expenses increased by 10.8% to $5.9 million, influenced by $929,000 in transaction costs related to acquisitions [2][7] - Franchise royalties were $7.3 million, down from $8.2 million in the prior-year period [5] - Service revenue dropped by 26% to $354,000, indicating broad-based industry demand weakness [5] Strategic Focus - The company is pursuing targeted acquisitions, optimizing its asset-light franchise structure, and strengthening capital allocation practices [4] - Management described the staffing industry as experiencing "protracted softness," partly due to sustained manufacturing-job losses [8] - The franchise model is highlighted for its ability to maintain profitability even under subdued demand [8] Future Outlook - Management did not provide explicit revenue or profit guidance for the next quarter or full year, focusing instead on cost control and acquisition opportunities [10] - Investors will monitor system-wide sales, acquisition integration, segment-level growth trends, and improvements in the job market [11]

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $7.6 million, a decrease of 12% compared to $8.7 million in Q2 2024 [10] - Franchise royalties decreased to $7.3 million from $8.2 million year-over-year [10] - Net income after tax was $1.1 million or $0.08 per diluted share, down from $2 million or $0.15 per diluted share in the previous year [12] - Adjusted net income was $2.1 million or $0.15 per diluted share, compared to $2.5 million or $0.18 per diluted share in Q2 2024 [13] - Adjusted EBITDA was $3.3 million with a margin of 43%, down from $4 million and 47% in the prior year [13] Business Line Data and Key Metrics Changes - System-wide sales for Q2 2025 were $125.9 million, down from $146.1 million in Q2 2024, but increased by 6% sequentially from $118.4 million in Q1 2025 [11] - Service revenue was $354,000, down from $479,000 in the same quarter last year [11] - Temporary staffing and day labor offerings performed better than MRI Network, although the Upper Midwest market remained weak [7] Market Data and Key Metrics Changes - The manufacturing industry continued to contract, losing 11,000 jobs in July, marking the lowest factory employment levels since July 2020 [6] - The overall hiring environment remains challenging, with employers delaying hiring decisions due to macroeconomic uncertainties [6] Company Strategy and Development Direction - The company is focused on acquisitions to expand market reach and geographic footprint, having completed over $77 million in acquisitions since the merger with Command Center [8] - The company maintains a strong balance sheet with only $4.3 million in debt, positioning itself for potential value-creating opportunities [9] - The company is optimistic about the enforcement of immigration regulations, which may create a more level playing field in the staffing industry [8] Management's Comments on Operating Environment and Future Outlook - Management noted that the hiring environment has been challenging for over two years, with a wait-and-see approach from employers [6] - There are signs of stabilization in demand, but the company has not yet exceeded last year's sales figures [36] - Management expressed cautious optimism about regaining clients in sectors like food processing, which typically employ a large number of non-E-Verify workers [39] Other Important Information - Current assets exceeded current liabilities by $28.6 million as of June 30, 2025, compared to $25.1 million at the end of 2024 [14] - The company has paid a regular quarterly dividend since 2020, with the most recent dividend of $0.06 per share paid on June 16, 2025 [15] Q&A Session Summary Question: Update on potential acquisition of TrueBlue - Management remains interested in pursuing a transaction with TrueBlue but has no new updates to report [23] Question: Market share and system-wide sales performance - Management acknowledged losing some market share due to significant MRI franchisees not renewing their agreements, impacting overall sales figures [25][30] Question: Overall market environment and demand trends - Management noted that while there are signs of stabilization, sales have not yet exceeded last year's figures, and the hiring environment remains challenging [36] Question: SG&A expense outlook - Management indicated that SG&A expenses were down sequentially, and there are no significant changes expected in the third quarter [41] Question: Workers' compensation expense outlook - Management aims to eliminate workers' compensation expenses, with improvements expected in the coming year [45]

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the company's unaudited consolidated financial statements and management's analysis of financial condition and results of operations [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents HireQuest, Inc.'s unaudited consolidated financial statements as of June 30, 2025, detailing financial position, operations, and cash flows [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets slightly increased to $94.3 million, total liabilities decreased to $28.3 million, and total stockholders' equity rose to $66.0 million Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$94,315** | **$94,013** | | Total Current Assets | $51,818 | $49,240 | | Franchise agreements, net | $18,885 | $19,737 | | **Total Liabilities** | **$28,293** | **$29,209** | | Line of credit | $4,333 | $6,829 | | Total Current Liabilities | $23,256 | $24,096 | | **Total Stockholders' Equity** | **$66,022** | **$64,804** | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) For Q2 2025, total revenue decreased to $7.6 million and net income fell to $1.1 million, with similar declines observed for the six-month period Q2 2025 vs Q2 2024 Performance (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $7,638 | $8,680 | -12.0% | | Income from Operations | $1,043 | $2,695 | -61.3% | | Net Income | $1,060 | $2,039 | -48.0% | | Diluted EPS | $0.08 | $0.15 | -46.7% | Six Months 2025 vs 2024 Performance (in thousands, except per share data) | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $15,111 | $17,099 | -11.6% | | Income from Operations | $2,525 | $4,797 | -47.4% | | Net Income | $2,423 | $3,658 | -33.8% | | Diluted EPS | $0.17 | $0.26 | -34.6% | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities significantly improved to $4.4 million for the six months ended June 30, 2025, contributing to a $0.5 million increase in cash position Six-Month Cash Flow Summary (in thousands) | Activity | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $4,411 | $(779) | | Net cash provided by investing activities | $313 | $445 | | Net cash used in financing activities | $(4,268) | $(394) | | **Net increase (decrease) in cash** | **$456** | **$(728)** | [Notes to Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, acquisitions, related-party transactions, debt, and impairment charges, including the acquisition of Ready Temporary Staffing and a goodwill impairment in Q3 2024 - As of June 30, 2025, the company had **413 franchisee-owned offices** and **1 company-owned office** across **43 states** and **13 countries**[20](index=20&type=chunk) - The company completed the acquisition of Ready Temporary Staffing, LLC (RTS) on December 30, 2024, for **$1.4 million**, which included **$0.56 million in goodwill**[19](index=19&type=chunk)[37](index=37&type=chunk)[39](index=39&type=chunk) - During Q3 2024, the company recognized a goodwill impairment charge of approximately **$4.8 million** and an intangible asset impairment of **$1.2 million**, both related to the MRI reporting unit due to industry and market conditions[78](index=78&type=chunk) - The effective tax rate for the six months ended June 30, 2025 was **8.2%**, significantly lower than **19.2%** for the same period in 2024, primarily due to the federal Work Opportunity Tax Credit (WOTC)[84](index=84&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the Q2 revenue decrease to a decline in system-wide sales across key brands, while maintaining sufficient liquidity despite increased operating expenses from transaction costs [Results of Operations](index=24&type=section&id=Results%20of%20Operations) Q2 2025 total revenue fell 12.0% year-over-year due to a 13.9% drop in system-wide sales, with operating expenses rising due to transaction costs partially offset by lower workers' compensation expense - Q2 2025 system-wide sales decreased by **13.9%** to **$125.9 million** from **$146.1 million** in Q2 2024. The decline was primarily driven by MRI (**$10.3 million**), HQ Direct (**$5.9 million**), and Snelling/HQ (**$3.4 million**)[112](index=112&type=chunk) - Six-month 2025 system-wide sales decreased by **12.8%** to **$244.3 million** from **$280.2 million** in the prior year period, with declines led by MRI (**$19.2 million**), HQ Direct (**$8.7 million**), and Snelling/HQ (**$6.4 million**)[131](index=131&type=chunk) Franchise Royalties by Brand - Q2 (in thousands) | Brand | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | HireQuest Direct | $3,471 | $3,851 | | Snelling and HireQuest | $2,029 | $2,288 | | Northbound, MRI, and SearchPath | $1,505 | $1,740 | | **Total** | **$7,284** | **$8,201** | - Workers' compensation expense for Q2 2025 was **$127 thousand**, a significant decrease of **$420 thousand** from **$547 thousand** in Q2 2024[117](index=117&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 $3.3 million for Q2 2025 and $6.1 million for the six-month period compared to the prior year Adjusted EBITDA Reconciliation (in thousands) | Line Item | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income | $1,060 | $2,039 | $2,423 | $3,658 | | Interest expense | $71 | $253 | $214 | $495 | | Provision for income taxes | $56 | $557 | $224 | $897 | | Depreciation and amortization | $734 | $697 | $1,469 | $1,395 | | Acquisition related charges, net | $929 | $0 | $846 | $11 | | **Adjusted EBITDA** | **$3,255** | **$4,040** | **$6,073** | **$7,398** | [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains sufficient liquidity through cash from operations and a $50 million revolving credit facility, with $2.7 million in cash and $35.9 million available on the credit line as of June 30, 2025 - At June 30, 2025, current assets of **$51.8 million** exceeded current liabilities of **$23.3 million**, resulting in a working capital of **$28.6 million**[8](index=8&type=chunk)[151](index=151&type=chunk) - The company has a **$50 million** revolving credit facility with Bank of America, with an outstanding balance of **$4.3 million** and availability of **$35.9 million** as of June 30, 2025[55](index=55&type=chunk)[161](index=161&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=37&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) As a "smaller reporting company," HireQuest, Inc. is not required to provide quantitative and qualitative disclosures about market risk - The company is a "smaller reporting company" as defined by Rule 12b-2 of the Exchange Act and is not required to provide quantitative and qualitative disclosures about market risk[170](index=170&type=chunk) [Item 4. Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls were not effective as of June 30, 2025, due to a material weakness in accounting resources, for which remediation efforts are underway - A material weakness in internal control over financial reporting was identified due to insufficient accounting resources to handle technical accounting issues and provide adequate review functions[172](index=172&type=chunk) - Remediation efforts include engaging third-party experts for acquisitions, hiring additional accounting staff, and transitioning responsibilities from the Chief Accounting Officer to other personnel[172](index=172&type=chunk) - Despite the material weakness, management concluded that the financial statements included in the report are fairly presented in all material respects[173](index=173&type=chunk) [PART II. OTHER INFORMATION](index=39&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section provides updates on legal proceedings and any material changes to previously disclosed risk factors [Item 1. Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal and administrative proceedings but does not anticipate any material uninsured losses from these matters - The company does not expect material uninsured losses from current legal proceedings and believes their outcomes will not have a material adverse effect on its business or financial condition[177](index=177&type=chunk) [Item 1A. Risk Factors](index=39&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes have occurred in the risk factors since the filing of the Annual Report on Form 10-K for the fiscal year ended December 31, 2024[178](index=178&type=chunk)

[HireQuest Q2 2025 Financial Performance Summary](index=1&type=section&id=HireQuest%20Reports%20Financial%20Results%20for%20Second%20Quarter%202025) [Management Commentary](index=1&type=section&id=Management%20Commentary) Despite a soft staffing market, HireQuest achieved solid Q2 2025 profitability by executing its franchise model, controlling expenses, and pursuing M&A - The company maintained **solid results and profitability** despite a persistent softness in the staffing market for over two years, with the manufacturing industry showing recent job losses[3](index=3&type=chunk) - Strategic focus remains on diligent execution of the business model, expense control, and pursuing M&A to expand its geographic and market footprint[3](index=3&type=chunk) - The company's unique franchise model is expected to deliver superior performance and provide operating leverage when market demand improves[3](index=3&type=chunk) [Second Quarter 2025 Financial Results](index=1&type=section&id=Second%20Quarter%202025%20Review) Q2 2025 total revenue decreased 12.0% to $7.6 million, with net income falling to $1.1 million due to lower royalties and higher SG&A Q2 2025 Key Financial Metrics (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $7.6 million | $8.7 million | -12.0% | | Franchise Royalties | $7.3 million | $8.2 million | -11.0% | | Net Income | $1.1 million | $2.0 million | -45.0% | | Diluted EPS | $0.08 | $0.15 | -46.7% | | Adjusted Net Income | $2.1 million | $2.5 million | -16.0% | | Adjusted EBITDA | $3.3 million | $4.0 million | -17.5% | | System-wide Sales | $125.9 million | $146.1 million | -13.9% | - SG&A expenses increased **10.8% to $5.9 million**, primarily driven by **$929,000 in transaction expenses**, partially offset by a significant decrease in net workers' compensation expense to **$127,000** from **$547,000** in the prior year[5](index=5&type=chunk) [Year-To-Date 2025 Financial Results](index=1&type=section&id=Year-To-Date%202025%20Review) YTD 2025 total revenue declined 11.6% to $15.1 million, with net income at $2.4 million, reflecting market softness and transaction expenses YTD 2025 Key Financial Metrics (vs. YTD 2024) | Metric | YTD 2025 | YTD 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $15.1 million | $17.1 million | -11.6% | | Franchise Royalties | $14.2 million | $16.0 million | -11.3% | | Net Income | $2.4 million | $3.7 million | -35.1% | | Diluted EPS | $0.17 | $0.26 | -34.6% | | Adjusted Net Income | $3.9 million | $4.5 million | -13.3% | | Adjusted EBITDA | $6.1 million | $7.4 million | -17.6% | | System-wide Sales | $244.3 million | $280.2 million | -12.8% | - SG&A expenses for the six-month period were **$11.1 million**, a slight increase from **$10.9 million** in the prior year, with the rise attributed to **$929,000 in transaction expenses**[11](index=11&type=chunk) - Workers' compensation expense saw a significant decrease of **$964,000** for the first six months of 2025 compared to the same period in 2024[11](index=11&type=chunk) [Balance Sheet and Capital Structure](index=2&type=section&id=Balance%20Sheet%20and%20Capital%20Structure) As of June 30, 2025, HireQuest maintained a stable financial position with $2.7 million cash, $94.3 million total assets, and $35.9 million available credit Balance Sheet Summary | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash | $2.7 million | $2.2 million | | Total Assets | $94.3 million | $94.0 million | | Total Liabilities | $28.3 million | $29.2 million | | Working Capital | $28.6 million | $25.1 million | - As of June 30, 2025, the company had approximately **$35.9 million** available under its line of credit, assuming continued covenant compliance[15](index=15&type=chunk) [Financial Statements](index=4&type=section&id=Financial%20Statements) [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets were $94.3 million, total liabilities $28.3 million, and stockholders' equity $66.0 million Assets Breakdown (in thousands) | Asset Category | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total current assets | $51,818 | $49,240 | | Franchise agreements, net | $18,885 | $19,737 | | Other intangible assets, net | $7,901 | $8,442 | | **Total assets** | **$94,315** | **$94,013** | Liabilities and Equity Breakdown (in thousands) | Liability & Equity Category | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total current liabilities | $23,256 | $24,096 | | **Total liabilities** | **$28,293** | **$29,209** | | **Total stockholders' equity** | **$66,022** | **$64,804** | | **Total liabilities and stockholders' equity** | **$94,315** | **$94,013** | [Consolidated Statement of Income](index=5&type=section&id=Consolidated%20Statement%20of%20Income) Q2 2025 total revenue was $7.6 million with $1.1 million net income, while YTD revenue reached $15.1 million with $2.4 million net income Income Statement Highlights - Three Months Ended June 30 (in thousands) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Total revenue | $7,638 | $8,680 | | Income from operations | $1,043 | $2,695 | | Net income | $1,060 | $2,039 | | Diluted EPS | $0.08 | $0.15 | Income Statement Highlights - Six Months Ended June 30 (in thousands) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Total revenue | $15,111 | $17,099 | | Income from operations | $2,525 | $4,797 | | Net income | $2,423 | $3,658 | | Diluted EPS | $0.17 | $0.26 | [Non-U.S. GAAP Reconciliations](index=6&type=section&id=Non-U.S.%20GAAP%20Reconciliations) The company provides non-GAAP reconciliations for Adjusted EBITDA and Adjusted Net Income to clarify core operational performance [Reconciliation of Net Income to Adjusted EBITDA](index=6&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20EBITDA) Adjusted EBITDA for Q2 2025 was $3.3 million, a decrease from Q2 2024, with significant adjustments for acquisition-related charges Adjusted EBITDA Reconciliation (in thousands) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income | $1,060 | $2,039 | $2,423 | $3,658 | | Adjustments | $2,195 | $1,001 | $3,650 | $3,740 | | **Adjusted EBITDA** | **$3,255** | **$4,040** | **$6,073** | **$7,398** | [Reconciliation of Net Income to Adjusted Net Income](index=7&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20Net%20Income) Adjusted net income for Q2 2025 was $2.1 million ($0.15 diluted EPS), reflecting adjustments for amortization and acquisition costs Adjusted Net Income Reconciliation (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income | $1,060 | $2,039 | $2,423 | $3,658 | | **Adjusted net income** | **$2,146** | **$2,476** | **$3,924** | **$4,502** | | **Adjusted net income per diluted share** | **$0.15** | **$0.18** | **$0.28** | **$0.32** | [Shareholder Information](index=2&type=section&id=Shareholder%20Information) [Dividend Information](index=2&type=section&id=Dividend%20Information) HireQuest paid a $0.06 per share quarterly cash dividend in June 2025 and intends to maintain this dividend going forward - On June 16, 2025, the company paid a quarterly cash dividend of **$0.06 per share** of common stock[16](index=16&type=chunk) - The company intends to continue paying a **$0.06 cash dividend** on a quarterly basis, subject to business results, financial position, and board of director discretion[16](index=16&type=chunk) [Conference Call Details](index=2&type=section&id=Conference%20Call) A conference call was held on August 7, 2025, to discuss Q2 financial results, with a replay available until August 21, 2025 - A conference call was held on Thursday, August 7, 2025, at 4:30 p.m. Eastern Time to discuss the financial results[17](index=17&type=chunk)[18](index=18&type=chunk) - A replay of the conference call is available through Thursday, August 21, 2025, with specific access details provided[20](index=20&type=chunk)[21](index=21&type=chunk) [About the Company and Disclosures](index=2&type=section&id=About%20the%20Company%20and%20Disclosures) [About HireQuest](index=2&type=section&id=About%20HireQuest) HireQuest is a franchisor offering diverse staffing solutions across the U.S. and internationally through multiple divisions - HireQuest is a franchisor of staffing solutions providing temporary, direct-hire, and contract staffing[22](index=22&type=chunk) - The company operates through several primary divisions: HireQuest Direct, HireQuest Health, MRINetwork, Snelling, and TradeCorp, serving industries such as construction, healthcare, finance, and manufacturing[22](index=22&type=chunk) [Forward-Looking Statements](index=2&type=section&id=Important%20Cautions%20Regarding%20Forward-Looking%20Statements) This section warns that forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially - The news release contains forward-looking statements within the meaning of the safe harbor provisions of U.S. securities laws[23](index=23&type=chunk)[24](index=24&type=chunk) - These statements are not historical facts and are inherently uncertain, subject to risks such as industry demand, economic uncertainty, and success in integrating acquisitions[25](index=25&type=chunk) [Non-U.S. GAAP Financial Measures](index=3&type=section&id=Non-U.S.%20GAAP%20Financial%20Measures) Non-GAAP financial measures are used to supplement U.S. GAAP results, providing useful insights into the company's performance - The report contains supplemental non-U.S. GAAP financial measures that management uses to analyze company performance[27](index=27&type=chunk) - Management believes these non-GAAP measures provide useful information for understanding the company's financial condition and are a complement to U.S. GAAP measures[27](index=27&type=chunk)

Financial Data and Key Metrics Changes - The company reported the approval of the compensation of the named executive officers at $20.24, which indicates a focus on aligning executive pay with performance metrics [12][21]. Business Line Data and Key Metrics Changes - No specific data on individual business lines was provided during the meeting [20]. Market Data and Key Metrics Changes - No specific market data or key metrics changes were discussed in the meeting [20]. Company Strategy and Development Direction and Industry Competition - The company is focused on maintaining strong governance through the election of directors and the appointment of independent auditors, which reflects a commitment to transparency and accountability [6][9][21]. Management's Comments on Operating Environment and Future Outlook - Management did not provide specific comments on the operating environment or future outlook during the meeting [20]. Other Important Information - The meeting included the election of six directors, the ratification of the independent auditor, and advisory votes on executive compensation, indicating a structured approach to corporate governance [2][5][21]. Q&A Session Summary Question: Were there any questions from stockholders? - There were no questions submitted by stockholders during the Q&A session [20].

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $7.5 million, a decrease of 11.2% from $8.4 million in Q1 2024 [12] - Net income after tax was $1.4 million or $0.10 per diluted share, compared to $1.6 million or $0.12 per diluted share in Q1 2024 [14] - Adjusted EBITDA was $2.8 million, down from $3.4 million in the prior year, with an adjusted EBITDA margin of 37% compared to 40% in Q1 2024 [14] Business Line Data and Key Metrics Changes - Franchise royalties for Q1 2025 were $7 million, down from $7.8 million in the same quarter last year [12] - Service revenue was $512,000 for Q1 2025, compared to $588,000 in the year-ago period [12] Market Data and Key Metrics Changes - System-wide sales for Q1 2025 were $118.4 million, down from $134 million in Q1 2024 [13] - Current liabilities were 46% of current assets as of March 31, 2025, compared to 49% at the end of 2024 [16] Company Strategy and Development Direction - The company is focused on expense management and cost reduction initiatives, with consistent reductions in SG&A expenses year over year [6][7] - M&A is a key part of the company's strategy, with a strong pipeline of potential deals to expand into new geographic regions and market verticals [7][10] - The company is positioned to benefit from increased demand due to stricter immigration laws, which may lead to new business opportunities [8][24] Management's Comments on Operating Environment and Future Outlook - The staffing industry is facing macroeconomic headwinds, causing employers to slow or suspend hiring decisions [6] - Despite the challenging environment, the company continues to achieve solid margins and profitability [6] - Management remains optimistic about the future, citing the potential for acquisitions and the strength of the franchise model to maintain profitability [36] Other Important Information - The company has paid a regular quarterly dividend since Q3 2020, with the most recent dividend of $0.06 per share paid on March 17, 2025 [16] - A planned transition in the CFO role will occur with David Hartley succeeding Steve Crane effective May 31, 2025 [10] Q&A Session Summary Question: Recent trends in business and impact of tariffs - Management noted no dramatic shift in business trends since the start of Q2, with ongoing macroeconomic challenges still affecting hiring [21] Question: Impact of stricter immigration policies on new business - Management confirmed that stricter immigration policies are opening new business opportunities, with clients returning due to compliance needs [23][24] Question: Trends in SG&A expenses and cost management - Management explained that some anomalies in the first quarter masked the true trend in SG&A expenses, with ongoing efforts to manage costs effectively [25][27] Question: M&A pipeline and near-term opportunities - Management expressed confidence in the M&A pipeline, noting that ongoing weak demand is leading to more realistic pricing from potential acquisition targets [28][29] Question: Transition of CFO role and corporate development - Management indicated plans to add a deal sourcer to support corporate development, but not at the VP level [30][32]