HireQuest, Inc. Common Stock (DE) 2026 Q2 Earnings Call
Review the key takeaways and the transcript of this earnings call.
- HireQuest, Inc. reported second quarter 2026 total revenue of $8.1 million, a 6% increase from $7.6 million in the prior year, or 16.6% pro forma excluding $690,000 revenue from divested MRI network assets in Q2 2025.
- Franchise royalties increased 4.1% to $7.6 million, or 13.8% pro forma for the divestiture, with system-wide sales at $117.8 million, a 6.9% pro forma growth compared to Q2 2025.
- Service revenue rose to $513,000 from $354,000 last year.
- Selling, general, and administrative expenses decreased to $4 million from $5.9 million in Q2 2025, with core S,G&A at $3.8 million excluding workers compensation and non-recurring expenses, down from $4.7 million.
- Net income after tax was $2.7 million or $0.19 per diluted share, compared to $1.1 million or $0.08 per diluted share last year.
- Adjusted net income was $3.2 million or $0.23 per diluted share, up from $2.1 million or $0.15 per diluted share.
- Adjusted EBITDA increased to $4.6 million from $3.3 million in the prior year.
- Total assets were $93.4 million as of June 30, 2026, up from $88.2 million at year-end 2025, with working capital of $35.1 million and $1.6 million in cash.
- HireQuest maintains no debt and has paid a regular quarterly dividend since Q3 2020, most recently $0.06 per share on June 15, 2026.
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Transcript
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Good afternoon, and welcome to the HireQuest, Inc. second quarter 2026 earnings conference call. At this time, all participants have been placed on a listen-only mode, and we will open the floor for your questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Jen Bellido from Institutional Marketing Services. Jen, the floor is yours.
Thank you. I'd like to welcome everybody to the call today. Hosting the call are HireQuest CEO, Rick Hermanns, and CFO, David Hartley. I'll now take a moment to read the Safe Harbor statement. This conference call contains forward-looking statements as defined within Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements in terms such as anticipate, expect, intend, may, will, should, or other comparable terms, involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. Those statements include statements regarding the intent, belief, or current expectations of HireQuest and members of its management, as well as the assumptions on which such statements are based.
Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, including those described in HireQuest's periodic reports filed with the SEC, and that actual results may differ materially from those contemplated by such forward-looking statements. Except as required by federal securities law, HireQuest undertakes no obligation to update or revise forward-looking statements to reflect changed conditions. Now I'd like to turn the call over to the CEO of HireQuest, Rick Hermanns.
Please go ahead, Rick. Good afternoon, and thank you for joining our call today.
In the second quarter, we continued to see improving demand for temporary staffing services as the market stabilizes and employers begin to prioritize hiring again. Leading up to Q2, we saw what I described as tentative green shoots in demand over the last few quarters, but with no real traction to speak of until the second half of the first quarter of this year, when we started to see consistent demand and favorable weekly year-over-year comparisons across the business. As you can see in our results, these comps were even more favorable in Q2, as we drove year-over-year revenue growth for the first time since the third quarter of 2024. Frankly, the latter part of the second quarter was better than the start.
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