HireQuest(US:HQI)2025-11-06 21:06Revenue 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]