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]