HireQuest (NASDAQ:HQI) Announces Quarterly Earnings Results

Key Points

• HireQuest beat on EPS with $0.19 per share versus a $0.12 consensus, but top-line pressure persists as Q4 revenue fell 13% to $7.0 million and full-year revenue declined to $30.6 million (system‑wide sales down ~11% to $500.2M).
• Management restructured MRI Network, divesting the permanent‑placement business to a leadership‑owned entity while retaining a minority stake and full ownership of MRI's contract staffing to reduce exposure to the weak permanent‑placement market.
• The board authorized a $20 million share repurchase program and the company pays a quarterly dividend ($0.06; 2.5% yield), and despite revenue declines remains profitable (FY net income $6.3M) and finished 2025 debt‑free with roughly $33M in working capital.

HireQuest (NASDAQ:HQI - Get Free Report) posted its earnings results on Monday. The company reported $0.19 earnings per share for the quarter, topping analysts' consensus estimates of $0.12 by $0.07, FiscalAI reports. HireQuest had a net margin of 21.92% and a return on equity of 14.48%. The company had revenue of $7.03 million for the quarter, compared to analyst estimates of $7.41 million.

Here are the key takeaways from HireQuest's conference call:

• HireQuest restructured MRI Network, divesting the permanent-placement business to a new leadership-owned entity while retaining a minority stake and full ownership of MRI's contract staffing, which management says reduces exposure to the slow permanent-placement market and aligns leadership with franchise operators.
• The board approved a share repurchase program authorizing up to $20 million of common-stock buybacks, signaling capital return to shareholders and confidence in the company's strategy.
• Top-line pressure continued as Q4 revenue fell 13% to $7.0 million and full-year revenue declined to $30.6 million, with system-wide sales down about 11% year-over-year to $500.2 million.
• Despite revenue declines, HireQuest remained profitable (full-year net income $6.3 million), adjusted net income was flat year-over-year, workers' compensation expense dropped roughly $1.9 million, and the company finished 2025 debt-free with improved working capital (~$33 million).
• Management said the acquisition pipeline is thin—one near-term deal fell through and they remain selective—so inorganic growth may be limited in the near term.

HireQuest Price Performance

HireQuest stock traded down $0.15 during mid-day trading on Monday, hitting $9.79. The company's stock had a trading volume of 16,465 shares, compared to its average volume of 22,854. The business has a 50 day moving average price of $10.98 and a 200-day moving average price of $9.85. HireQuest has a 12 month low of $7.38 and a 12 month high of $12.51. The stock has a market cap of $138.04 million, a price-to-earnings ratio of 19.58 and a beta of 1.03.

HireQuest Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, March 16th. Investors of record on Monday, March 2nd were given a $0.06 dividend. The ex-dividend date was Monday, March 2nd. This represents a $0.24 dividend on an annualized basis and a yield of 2.5%. HireQuest's payout ratio is presently 48.00%.

HireQuest declared that its Board of Directors has approved a share repurchase program on Wednesday, December 17th that allows the company to repurchase $20.00 million in outstanding shares. This repurchase authorization allows the company to reacquire up to 18.4% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company's leadership believes its shares are undervalued.

Analysts Set New Price Targets

Several analysts have commented on the stock. Barrington Research reissued an "outperform" rating and set a $13.00 price objective on shares of HireQuest in a report on Thursday, January 29th. Weiss Ratings upgraded HireQuest from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Monday, January 12th. Wall Street Zen raised HireQuest to a "hold" rating in a report on Saturday, January 17th. Finally, DA Davidson set a $15.00 price objective on HireQuest in a research note on Tuesday, December 2nd. One research analyst has rated the stock with a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $14.00.

Insider Transactions at HireQuest

In other news, CEO Richard Hermanns purchased 9,704 shares of the business's stock in a transaction on Tuesday, December 30th. The shares were acquired at an average price of $10.28 per share, with a total value of $99,757.12. Following the acquisition, the chief executive officer directly owned 2,951,283 shares in the company, valued at approximately $30,339,189.24. The trade was a 0.33% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. 43.50% of the stock is currently owned by insiders.

Institutional Trading of HireQuest

Several institutional investors and hedge funds have recently bought and sold shares of the stock. State Street Corp increased its holdings in shares of HireQuest by 1.9% during the fourth quarter. State Street Corp now owns 76,866 shares of the company's stock valued at $808,000 after acquiring an additional 1,451 shares in the last quarter. Wells Fargo & Company MN boosted its stake in HireQuest by 47.2% in the 4th quarter. Wells Fargo & Company MN now owns 6,333 shares of the company's stock worth $67,000 after purchasing an additional 2,031 shares in the last quarter. Geode Capital Management LLC grew its position in HireQuest by 4.3% during the 2nd quarter. Geode Capital Management LLC now owns 139,141 shares of the company's stock valued at $1,393,000 after purchasing an additional 5,685 shares during the last quarter. Deutsche Bank AG grew its position in HireQuest by 158.0% during the 4th quarter. Deutsche Bank AG now owns 10,945 shares of the company's stock valued at $115,000 after purchasing an additional 6,702 shares during the last quarter. Finally, Russell Investments Group Ltd. increased its stake in HireQuest by 67.8% during the 2nd quarter. Russell Investments Group Ltd. now owns 26,303 shares of the company's stock valued at $263,000 after purchasing an additional 10,627 shares in the last quarter. 12.00% of the stock is currently owned by hedge funds and other institutional investors.

HireQuest Company Profile

HireQuest, Inc is a publicly traded holding company that provides equipment rental and workforce solutions across North America through two primary operating subsidiaries. Its Coast Equipment Rentals division offers a broad range of support equipment—such as pumps, trench safety systems, power and HVAC units, air compressors, light towers and generators—to the construction, industrial, municipal and environmental markets. Coast Equipment Rentals operates more than 135 branch locations in 36 U.S.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.