HireQuest (HQI) Q3 2025 earnings summary

Executive summary

• Net income for Q3 2025 was $2.3 million ($0.16 per share), a rebound from a $2.2 million loss in Q3 2024, with profitability maintained despite a soft staffing market and macroeconomic uncertainties.

• Franchise model and disciplined expense management provided resilience and consistent profitability, outperforming many industry peers.

• Temporary and day labor staffing outperformed permanent placement and executive search, with Snelling franchisees achieving notable wins and executive search showing early signs of recovery.

• MRI Network saw franchisee non-renewals, impacting year-over-year comparisons, but declines have stabilized.

• The company operated 400 offices as of September 30, 2025, after opening 6 and closing 31 during the year.

Financial highlights

• Q3 2025 total revenue was $8.5 million, down 9.8% year-over-year; franchise royalties were $8.1 million, and service revenue was $387,000.

• System-wide sales for Q3 2025 were $133.6 million, down from $148.6 million year-over-year, but up 6.1% sequentially from Q2.

• Adjusted net income for Q3 2025 was $3.4 million ($0.24 per share), up from $2.8 million ($0.20 per share) last year; adjusted EBITDA was $4.7 million (vs. $4.9 million), with margin rising to 55% from 52%.

• For the first nine months of 2025, total revenue was $23.6 million, down 11.0% year-over-year; net income was $4.7 million ($0.34 per share) versus $1.5 million ($0.10 per share) in 2024.

• Operating expenses for Q3 2025 were $6.1 million, down from $12.1 million in Q3 2024, mainly due to a prior year impairment charge.

Outlook and guidance

• Management sees signs of stabilization in the staffing market, with optimism that the bottom has been reached.

• Early Q4 results show some weeks exceeding prior year performance, supporting a stable outlook.

• Management remains focused on supporting franchisees, expanding the geographic footprint, and leveraging the business model to drive profitability as market conditions improve.

• Quarterly cash dividends of $0.06 per share are intended to continue, subject to board discretion and financial results.

• The company is evaluating the impact of the "One Big Beautiful Bill Act" but does not expect a material effect.