HireQuest Inc. Reports Mixed Financial Results for Q1 2025

In a recent financial update, HireQuest, Inc., a leading temporary staffing service provider based in Goose Creek, United States, disclosed its financial performance for the first quarter of 2025. The company, which operates across the nation offering skilled, semi-skilled, and general labor, industrial, clerical, and construction personnel services, reported a mixed bag of results that reflect both challenges and resilience in the current economic climate.

For the quarter ended March 31, 2025, HireQuest experienced a notable decrease in franchise royalties and total revenue, both declining by 11.2% to $7.0 million and $7.5 million, respectively, compared to the same period in the previous year. This downturn in revenue streams is indicative of the broader challenges faced by the staffing industry, particularly in the wake of economic pressures affecting the manufacturing sector.

Despite the revenue decline, HireQuest managed to reduce its selling, general, and administrative (“SG&A”) expenses by 6.5%, bringing them down to $5.3 million from $5.6 million in the prior year. This cost management effort contributed to an income from operations of $1.5 million, albeit a decrease from the $2.1 million reported in the first quarter of 2024. The company’s net income stood at $1.4 million, or $0.10 per diluted share, reflecting a slight miss against the non-GAAP EPS expectations of $0.13, as reported by Seeking Alpha.

The financial results come at a time when the staffing industry is navigating through an economic downturn, particularly within the manufacturing sector. However, HireQuest’s performance, alongside peers such as KFY and KELYA, suggests a potential for steady service demand driven by the increasing adoption of remote work and technology. This trend underscores a forward-looking perspective for HireQuest and similar companies, positioning them to capitalize on evolving work environments and technological advancements.

As of May 5, 2025, HireQuest’s stock closed at $10.36, with a market capitalization of $142.3 million. The company’s price-to-earnings ratio stands at 36.07, reflecting investor sentiment and expectations for future growth. Despite the recent financial results, HireQuest’s strategic positioning within the professional services sector and its adaptability to market demands may offer a pathway to recovery and growth in the coming quarters.

In summary, while HireQuest Inc. faced challenges in the first quarter of 2025, its efforts in cost management and strategic positioning within the evolving staffing industry landscape highlight potential areas for resilience and growth. Investors and industry observers will be keenly watching how the company navigates the current economic environment and leverages technological advancements to meet the changing demands of the workforce.