HireQuest (NASDAQ:HQI) Posts Earnings Results, Beats Estimates By $0.10 EPS

HireQuest (NASDAQ:HQI) issued its quarterly earnings results on Monday. The company reported $0.23 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.13 by $0.10, FiscalAI reports. The business had revenue of $8.10 million for the quarter, compared to the consensus estimate of $7.10 million. HireQuest had a net margin of 21.98% and a return on equity of 14.90%.

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

• Revenue and profitability improved: Q2 revenue rose 6% year over year to $8.1 million, or 16.6% on a pro forma basis excluding divested MRINetwork assets. Net income increased to $2.7 million, while adjusted EBITDA grew to $4.6 million from $3.3 million.
• Management said demand strengthened through the quarter, with ongoing operations running 12%–13% above prior-year levels in some late-Q2 weeks. The company said this growth has held through the first six weeks of Q3, although it does not provide formal guidance.
• Growth is being supported by manufacturing activity, labor-supply changes tied to immigration policy, and renewed investment in national accounts. HireQuest highlighted strong Snelling performance, opportunities from reshoring projects, and a recruiting app that enables it to pursue accounts outside its branch footprint.
• Operating leverage is returning as revenue scales, with core SG&A declining to $3.8 million from $4.7 million a year earlier. Management also emphasized its debt-free balance sheet, $41 million of credit-facility availability, and expectation of continuing its quarterly dividend.
• Executives remain cautious about the longer-term outlook, noting that staffing demand is still below prior levels and remains dependent on the broader economy, immigration trends, interest rates, and political conditions. They said visibility is favorable for the balance of 2026 but declined to forecast Q4 or 2027.

HireQuest Stock Performance

Shares of HQI stock opened at $13.57 on Tuesday. The firm’s 50 day moving average price is $12.90 and its two-hundred day moving average price is $11.77. HireQuest has a 52-week low of $7.38 and a 52-week high of $14.53. The stock has a market cap of $188.62 million, a PE ratio of 29.50 and a beta of 1.11.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in HQI. Geode Capital Management LLC raised its stake in HireQuest by 4.3% during the 2nd quarter. Geode Capital Management LLC now owns 139,141 shares of the company’s stock worth $1,393,000 after buying an additional 5,685 shares during the period. Russell Investments Group Ltd. lifted its position 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 acquiring an additional 10,627 shares in the last quarter. Vanguard Group Inc. lifted its position in HireQuest by 4.4% in the 3rd quarter. Vanguard Group Inc. now owns 293,013 shares of the company’s stock valued at $2,819,000 after acquiring an additional 12,246 shares in the last quarter. Deutsche Bank AG boosted its stake in HireQuest by 158.0% in 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 period. Finally, Renaissance Technologies LLC acquired a new position in HireQuest in the 4th quarter worth $112,000. 12.00% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on HQI. Weiss Ratings raised shares of HireQuest from a “hold (c-)” rating to a “hold (c)” rating in a research note on Monday, July 13th. Barrington Research increased their price target on shares of HireQuest from $13.00 to $15.00 and gave the company an “outperform” rating in a research note on Monday, May 18th. Finally, DA Davidson reissued a “buy” rating and issued a $15.00 price target on shares of HireQuest in a report on Wednesday, May 13th. Two analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $15.00.

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.