Revenue Performance - Total revenue for Q3 2025 was $8.5 million, a decrease of 9.8% compared to $9.4 million in Q3 2024[6] - Year-to-date total revenue for 2025 was $23.6 million, a decrease of 11.0% from $26.5 million in the same period of 2024[11] - Total revenue reached $8.497 billion, up from $4.162 billion, marking a 104.5% increase year-over-year[33] Income and Earnings - Net income for Q3 2025 was $2.3 million, or $0.16 per diluted share, compared to a net loss of $(2.2) million, or $(0.16) per diluted share, in Q3 2024[8] - Year-to-date net income for 2025 was $4.7 million, or $0.34 per diluted share, compared to $1.5 million, or $0.10 per diluted share, in the same year-ago period[13] - Net income for Q3 2025 was $2,304,000, compared to a loss of $2,207,000 in Q3 2024, marking a significant turnaround[35] Adjusted Metrics - Adjusted net income for Q3 2025 was $3.4 million, or $0.24 per diluted share, compared to $2.8 million, or $0.20 per diluted share in Q3 2024[8] - Adjusted net income for the nine months ended September 30, 2025, was $7,281,000, slightly down from $7,290,000 in the same period of 2024[37] - Adjusted EBITDA for Q3 2025 was $4,651,000, compared to $4,926,000 in Q3 2024, indicating a decrease of 5.6%[35] Expenses - Franchise royalties in Q3 2025 were $8.1 million, down from $9.0 million in the prior-year period[5] - Selling, general and administrative expenses were $5.070 billion, an increase from $3.791 billion, reflecting a rise of 33.8%[33] - Core SG&A expenses for Q3 2025 were $4,574,000, a slight decrease from $4,604,000 in Q3 2024[39] - Workers' compensation expense for the nine months ended September 30, 2025, was approximately $56,000, compared to $1.6 million for the same period in 2024[12] - Interest expense decreased to $63,000 in Q3 2025 from $268,000 in Q3 2024, reflecting improved financial management[35] Cash and Assets - Cash as of September 30, 2025, was $1.1 million, down from $2.2 million as of December 31, 2024[15] - Goodwill and intangible asset impairment charges remained consistent at $330,000 for both Q3 2025 and Q3 2024[37] Future Outlook - The company intends to pay a quarterly cash dividend of $0.06 per share, subject to business results and board discretion[17] - The company is focusing on market expansion and new product development to drive future growth[34] - The adjusted EBITDA reconciliation indicates a strong operational performance, supporting the positive outlook for the upcoming quarters[34] Share Metrics - The weighted average shares outstanding for basic shares was 13.959 million, compared to 13.834 million in the previous year[33] - The weighted average diluted shares outstanding increased to 13,976,000 in Q3 2025 from 13,924,000 in Q3 2024[37] Tax and Other Provisions - The provision for income taxes for Q3 2025 was $137,000, compared to a benefit of $(725,000) in Q3 2024[35] - Net workers' compensation expense showed a significant improvement, with a benefit of $(99,000) in Q3 2025 compared to an expense of $499,000 in Q3 2024[39] Operational Performance - System-wide sales for Q3 2025 decreased by 10.1% to $133.6 million compared to $148.6 million in Q3 2024[9] - The company reported a net income (loss) from operations of $2.445 billion, compared to a loss of $2.695 billion in the previous year[33] - The company experienced a net income (loss) before income taxes of $2.548 billion, compared to a loss of $2.890 billion last year[33] - Basic earnings (loss) per share from continuing operations was $0.17, compared to a loss of $0.16 in the prior year[33] - Diluted earnings (loss) per share from continuing operations was also $0.17, compared to a loss of $0.16 previously[33] - Acquisition-related charges for the nine months ended September 30, 2025, totaled $1,130,000, significantly higher than $111,000 in the same period of 2024[37]

Core Viewpoint - HireQuest, Inc. reported financial results for Q3 2025, highlighting challenges in the U.S. staffing industry due to a muted hiring landscape as employers adopt a cautious approach to hiring activities [1] Company Summary - HireQuest, Inc. is a national franchisor specializing in on-demand staffing and executive search services [1] - The company’s President and CEO, Rick Hermanns, noted the ongoing challenges faced by the staffing industry in the current economic environment [1] Industry Summary - The U.S. staffing industry is experiencing a subdued hiring environment, with employers taking a "wait and see" approach regarding their hiring decisions [1]

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]

Company Overview - HireQuest, Inc. (HQI) shares increased by 5.4% to $8.77 in the last trading session, following a period of decline and reflecting positive momentum in the broader market [1] - The stock has experienced a 16.8% loss over the past four weeks, indicating volatility [1] Earnings Expectations - HireQuest is expected to report quarterly earnings of $0.14 per share, representing a year-over-year decline of 30% [2] - Revenue expectations for the upcoming report are $7.63 million, down 19% from the same quarter last year [2] Stock Performance and Estimates - The consensus EPS estimate for HireQuest has remained unchanged over the last 30 days, suggesting a lack of upward momentum in earnings revisions [3] - The stock currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook [3] Industry Comparison - HireQuest is part of the Zacks Staffing Firms industry, where Kforce (KFRC) also holds a Zacks Rank of 3 (Hold) [3][4] - Kforce's consensus EPS estimate is $0.57, reflecting a 24% decrease from the previous year [4]

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].