HireQuest, Inc. reported a total revenue of approximately $6.5 million for the first quarter of 2026, a decrease of 12.7% compared to $7.5 million in the same period of 2025. The decline in revenue was primarily attributed to the divestiture of MRINetwork assets, which accounted for a loss of about $500,000 in revenue, and a decrease in royalties from retained franchisees, particularly from the Northbound, MRI, and SearchPath brands. Franchise royalties fell to $6.1 million, down 12.9% from $7.0 million year-over-year, while service revenue also decreased slightly to $462,000 from $512,000.

In terms of profitability, HireQuest reported a net income of $1.56 million for the quarter, an increase from $1.36 million in the prior year. This resulted in basic and diluted earnings per share of $0.11, up from $0.10 in the same quarter of 2025. The company’s income from operations remained relatively stable at $1.48 million, compared to $1.48 million in the previous year, despite a reduction in selling, general, and administrative expenses, which decreased to $4.27 million from $5.26 million.

Operationally, HireQuest had 257 franchisee-owned offices and one company-owned office across 39 states and one international location as of March 31, 2026. The company employed approximately 75,000 temporary employees annually, serving a diverse range of industries. The number of franchise offices decreased significantly due to the divestiture of 156 offices associated with the MRINetwork transaction. The company also reported a gain on divestiture of $248,000 during the quarter, reflecting the financial impact of the asset transfer.

Looking ahead, HireQuest's management is focused on both organic growth and strategic acquisitions to enhance its market position. The company aims to expand its client base and franchise offerings while providing training and support to franchisees. Despite the challenges posed by economic conditions, including inflation and geopolitical tensions, management believes that current cash reserves, along with future cash flows from operations and available credit, will be sufficient to meet working capital needs and support growth initiatives over the next 12 months.

About HireQuest, Inc.

HireQuest, Inc. is a nationwide franchisor specializing in temporary staffing and permanent recruitment services across light industrial, blue-collar, and professional sectors. Its business model relies on franchise offices providing direct-dispatch, staffing solutions, and executive placement, serving diverse industries and markets. Core strengths include local ownership, proprietary tools, and a scalable franchise system, offering flexible workforce solutions and total talent access.

This description was generated via AI from an annual report. Updated 8 months ago.

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