HireQuest (NASDAQ:HQI) Posts Quarterly Earnings Results, Beats Expectations By $0.07 EPS

HireQuest (NASDAQ:HQI) released its quarterly earnings data 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 firm 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

HQI stock traded down $0.15 during mid-day trading on Monday, reaching $9.79. 16,465 shares of the company’s stock were exchanged, compared to its average volume of 22,854. HireQuest has a 12-month low of $7.38 and a 12-month high of $12.51. The stock’s 50 day moving average is $10.98 and its 200 day moving average is $9.85. The company 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. Stockholders of record on Monday, March 2nd were paid a dividend of $0.06 per share. This represents a $0.24 annualized dividend and a dividend yield of 2.5%. The ex-dividend date of this dividend was Monday, March 2nd. HireQuest’s dividend payout ratio is presently 48.00%.

Wall Street Analyst Weigh In

HQI has been the topic of several recent research reports. DA Davidson set a $15.00 price target on shares of HireQuest in a report on Tuesday, December 2nd. Barrington Research reiterated an “outperform” rating and set a $13.00 price objective on shares of HireQuest in a research note on Thursday, January 29th. Weiss Ratings raised HireQuest from a “sell (d+)” rating to a “hold (c-)” rating in a report on Monday, January 12th. Finally, Wall Street Zen upgraded HireQuest to a “hold” rating in a research note on Saturday, January 17th. One equities research analyst has rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. According to data from MarketBeat.com, HireQuest currently has an average rating of “Moderate Buy” and a consensus price target of $14.00.

Insider Activity at HireQuest

In other HireQuest news, CEO Richard Hermanns bought 9,704 shares of HireQuest stock in a transaction dated Tuesday, December 30th. The stock was acquired at an average cost of $10.28 per share, with a total value of $99,757.12. Following the purchase, the chief executive officer directly owned 2,951,283 shares in the company, valued at $30,339,189.24. This represents a 0.33% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through the SEC website. 43.50% of the stock is owned by company insiders.

Institutional Investors Weigh In On HireQuest

Several institutional investors and hedge funds have recently added to or reduced their stakes in HQI. Wells Fargo & Company MN lifted its holdings in HireQuest by 47.2% during the fourth quarter. Wells Fargo & Company MN now owns 6,333 shares of the company’s stock valued at $67,000 after purchasing an additional 2,031 shares in the last quarter. Renaissance Technologies LLC purchased a new stake in shares of HireQuest during the fourth quarter worth about $112,000. Deutsche Bank AG raised its position in shares of HireQuest by 158.0% during the 4th quarter. Deutsche Bank AG now owns 10,945 shares of the company’s stock worth $115,000 after purchasing an additional 6,702 shares during the last quarter. Russell Investments Group Ltd. lifted its stake in HireQuest by 67.8% in the 2nd quarter. Russell Investments Group Ltd. now owns 26,303 shares of the company’s stock valued at $263,000 after buying an additional 10,627 shares in the last quarter. Finally, State Street Corp lifted its stake in HireQuest by 1.9% in the 4th quarter. State Street Corp now owns 76,866 shares of the company’s stock valued at $808,000 after buying an additional 1,451 shares in the last quarter. Hedge funds and other institutional investors own 12.00% of the company’s stock.

HireQuest declared that its board has authorized a share repurchase program on Wednesday, December 17th that allows the company to repurchase $20.00 million in shares. This repurchase authorization allows the company to reacquire up to 18.4% of its shares through open market purchases. Shares repurchase programs are often a sign that the company’s management believes its stock is undervalued.

About HireQuest

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.