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HireQuest
(NASDAQ:HQI)
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Rating:77Outperform
Price Target:
$22.00
▲(26.07% Upside)
Action:Reiterated
Date:08/11/26
HQI’s score is driven primarily by strong financial quality (especially the debt-free balance sheet) and improving operating performance signaled in the latest earnings call. Technicals also support the outlook with an uptrend and moderate momentum. The main constraint is valuation (higher P/E) alongside some variability in revenue and cash-flow momentum, with incremental execution risk from the proposed acquisition.
Positive Factors
Debt-free balance sheet
A debt-free balance sheet materially lowers financial risk and avoids interest burdens that can restrict investment during weaker staffing cycles. Substantial, growing equity also provides a durable capital base, supporting resilience and strategic flexibility over the next several quarters.
Negative Factors
Uneven revenue trend
The multi-year revenue pattern shows that recent improvement follows two annual declines rather than a consistently compounding trajectory. Uneven demand makes forward planning less predictable and raises the risk that earnings growth will depend on an uncertain staffing-market recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free balance sheet
A debt-free balance sheet materially lowers financial risk and avoids interest burdens that can restrict investment during weaker staffing cycles. Substantial, growing equity also provides a durable capital base, supporting resilience and strategic flexibility over the next several quarters.
Read all positive factors
HireQuest (HQI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$272.30M
Dividend Yield1.28%
Average Volume (3M)25.92K
Price to Earnings (P/E)31.9
Beta (1Y)0.49
Revenue Growth-7.54%
EPS Growth237.08%
CountryUS
Employees88
SectorIndustrials
Sector Strength72
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)0.59
Shares Outstanding13,900,000
10 Day Avg. Volume39,348
30 Day Avg. Volume25,916
Financial Highlights & Ratios
PEG Ratio0.35
Price to Book (P/B)2.15
Price to Sales (P/S)4.80
P/FCF Ratio12.28
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$19.00Price Target Upside8.88% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.56
Revenue Forecast (FY)$28.36M
HireQuest Business Overview & Revenue Model
Company Description
HireQuest, Inc. provides staffing solutions in the United States. The company offers direct-dispatch, executive search, commercial staffing, unskilled and semi-skilled industrial, construction personnel, skilled and semi-skilled industrial personn...
How the Company Makes Money
HireQuest makes money primarily by providing contingent workers to client businesses and charging those clients a higher bill rate than the wages and related costs it pays to workers (i.e., earning a gross profit spread on staffing assignments). I...
HireQuest Earnings Call Summary
Earnings Call Date:Aug 10, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call conveyed a clear improvement in operational and financial performance: revenue growth (including strong pro forma gains), marked expansion in profitability and adjusted EBITDA, disciplined SG&A, stronger franchise-level results (notably Snelling), and encouraging late-quarter weekly comp momentum. Offsetting items include a weaker cash balance, raw system-wide sales impacted by divestiture comparability, remaining macro sensitivity, and some nonrecurring factors that aided expense reductions. On balance the positive developments—especially sizable net income and adjusted EBITDA increases, pro forma revenue strength, national accounts momentum, and preserved access to capital—outweigh the lowlights.Positive Updates
Revenue Growth and Pro Forma Strength
Total revenue of $8.1M in Q2 2026 vs $7.6M a year ago, +6% year-over-year; pro forma for the MRI divestiture revenue was up 16.6%.
Negative Updates
Raw System-Wide Sales Decline (Pre-Adjustments)
Reported system-wide sales were $117.8M vs $125.9M prior year (nominal decline of -6.4%); company notes this is impacted by last year's MRI contribution and after adjusting for divestiture shows pro forma growth of +6.9%.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth and Pro Forma Strength
Total revenue of $8.1M in Q2 2026 vs $7.6M a year ago, +6% year-over-year; pro forma for the MRI divestiture revenue was up 16.6%.
Read all positive updates
Company Guidance
Management gave no formal numeric guidance but said growing visibility and early Q3 momentum support expectations for “positive results through the balance of 2026.” They pointed to Q2 revenue of $8.1M (up 6% YoY; +16.6% pro forma for the MRI divestiture), franchise royalties $7.6M (+4.1% YoY; +13.8% pro forma), system‑wide sales $117.8M (pro forma +6.9%), service revenue $513k, net income $2.7M ($0.19/sh), adjusted net income $3.2M ($0.23/sh), adjusted EBITDA $4.6M, and SG&A of $4.0M (core SG&A $3.8M); weekly YoY comps improved from roughly 2–4% at the start of Q2 to as much as 12–13% late in the quarter, and management said that growth has been maintained into Q3 (six weeks in). Balance‑sheet and liquidity metrics cited included total assets $93.4M, cash $1.6M, net A/R $48.9M, working capital $35.1M, $41.0M available on the credit facility, and a $0.06 quarterly dividend paid June 15 (to continue at the Board’s discretion).HireQuest Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
92
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 30.15M | 30.64M | 34.60M | 37.88M | 30.95M | 22.53M |
| Gross Profit | 29.39M | 30.64M | 34.60M | 37.88M | 30.95M | 22.53M |
| EBITDA | 12.34M | 10.02M | 7.86M | 11.96M | 16.28M | 9.20M |
| Net Income | 8.16M | 6.33M | 3.67M | 6.13M | 12.46M | 11.85M |
Balance Sheet | ||||||
| Total Assets | 93.37M | 88.23M | 94.01M | 103.83M | 103.28M | 77.35M |
| Cash, Cash Equivalents and Short-Term Investments | 1.64M | 3.90M | 2.22M | 1.34M | 3.05M | 1.26M |
| Total Debt | 0.00 | 0.00 | 6.92M | 14.77M | 16.54M | 3.24M |
| Total Liabilities | 24.52M | 19.91M | 29.21M | 41.09M | 45.03M | 30.62M |
| Stockholders Equity | 68.86M | 68.32M | 64.80M | 62.73M | 58.25M | 46.73M |
Cash Flow | ||||||
| Free Cash Flow | 9.45M | 11.99M | 11.97M | 10.52M | 15.40M | 15.41M |
| Operating Cash Flow | 9.48M | 12.05M | 12.04M | 10.62M | 16.88M | 17.38M |
| Investing Cash Flow | -45.00K | 296.00K | 44.00K | -7.08M | -23.57M | -29.45M |
| Financing Cash Flow | -10.47M | -10.67M | -11.21M | -5.24M | 8.49M | -347.00K |
HireQuest Technical Analysis
Positive
17.45
Price Trends
16.26
Positive
14.45
Positive
12.53
Positive
Market Momentum
0.94
Negative
60.09
Neutral
61.27
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HQI, the sentiment is Positive. The current price of 17.45 is below the 20-day moving average (MA) of 17.61, above the 50-day MA of 16.26, and above the 200-day MA of 12.53, indicating a bullish trend. The MACD of 0.94 indicates Negative momentum. The RSI at 60.09 is Neutral, neither overbought nor oversold. The STOCH value of 61.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HQI.
HireQuest Risk Analysis
HireQuest disclosed 42 risk factors in its most recent earnings report. HireQuest reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
HireQuest Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $272.30M | 31.88 | 11.98% | 1.28% | -7.54% | 237.08% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $207.13M | 146.20 | 1.28% | ― | -7.34% | ― | |
62 Neutral | $87.33M | 40.40 | 2.31% | 3.18% | -11.76% | 136.95% | |
57 Neutral | $24.17M | -265.13 | -0.17% | ― | -18.54% | 99.76% | |
57 Neutral | $288.61M | -4.85 | -20.78% | ― | 10.17% | -65.10% | |
51 Neutral | $53.19M | -6.39 | -19.17% | 43.01% | -58.57% | 11.65% |
* Industrials Sector Average
HQI
HireQuest
18.81
9.65
105.35%
DHX
DHI Group
4.81
2.30
91.63%
JOB
GEE Group
0.21
<0.01
0.95%
MHH
Mastech Holdings
7.15
-0.26
-3.57%
TBI
Trueblue
9.18
3.23
54.29%
BGSF
BGSF
4.92
0.80
19.42%
HireQuest Corporate Events
Business Operations and StrategyDividends
HireQuest Declares Quarterly Cash Dividend, Maintains Cautious Outlook
Neutral
Aug 13, 2026
On August 13, 2026, HireQuest, Inc., a national franchisor of on-demand staffing and executive search services, declared a quarterly cash dividend of $0.06 per share of common stock. The dividend is scheduled to be paid on September 15, 2026, to s...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.