HireQuest Q4 revenue falls

Overview

• U.S. staffing franchisor's Q4 revenue fell 13% yr/yr

• Adjusted EBITDA for Q4 was $3.4 million

• Company announced $20 mln share repurchase program in December

Outlook

• Company sees a stabilizing job market in 2026, expecting neither a hiring boom nor bust

• Customers are prioritizing flexibility, fit, and skilled work that cannot be automated

• Company intends to pay a $0.06 cash dividend quarterly, subject to board discretion and business results

Result Drivers

• STAFFING INDUSTRY CHALLENGES - Co said continued challenging economic environment for staffing industry weighed on results, per CEO Rick Hermanns

• MRINETWORK RESTRUCTURING - Strategic change in MRINetwork ownership structure impacted Q4, with HireQuest retaining contract staffing and divesting executive search business

• LOWER EXPENSES - SG&A and workers compensation expenses declined from prior year, supporting profitability

Company press release: ID:nPn9YWMYXa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the employment services peer group is "buy."

• Wall Street's median 12-month price target for Hirequest Inc is $14.00, about 40.8% above its March 27 closing price of $9.94

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 17 three months ago

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