HireQuest, Inc. reported a total revenue of approximately $7.5 million for the first quarter of 2025, reflecting an 11.2% decrease from $8.4 million in the same period of 2024. The decline was primarily attributed to a significant drop in system-wide sales, which fell from $134 million to $118.4 million, driven by reduced performance in several business segments, including a $8.9 million decrease in sales from the MRI Network. The company's net income for the quarter was $1.363 million, down from $1.619 million year-over-year, resulting in basic and diluted earnings per share of $0.10, compared to $0.12 in the prior year.
In terms of operational metrics, HireQuest's franchise royalties also decreased by 11.2%, from $7.831 million to $6.960 million. The company maintained a net effective royalty rate of 5.9% for both periods. The total number of franchisee-owned offices remained stable at 424, with one company-owned office, while the company employed approximately 65,000 individuals annually across various sectors, including construction and healthcare. The company’s cash position at the end of the quarter was $2.087 million, down from $2.219 million at the end of 2024.
Strategically, HireQuest completed the acquisition of Ready Temporary Staffing, LLC for $1.4 million in December 2024, which expanded its presence in Colorado. The company also entered into an agreement to acquire TEC, The Employment Company, for approximately $9.8 million, which is expected to enhance its operations in Arkansas. These acquisitions are part of HireQuest's strategy to grow through both organic means and strategic acquisitions, aiming to increase its franchise base and market share.
The company reported a decrease in selling, general, and administrative expenses, which totaled $5.255 million for the quarter, down from $5.619 million in the previous year. This reduction was primarily due to lower workers' compensation expenses, which decreased significantly from $572,000 to $28,000. However, the overall operating expenses as a percentage of system-wide sales increased slightly to 5.1% from 4.7%. Looking ahead, HireQuest anticipates that its current cash balance, along with future cash generated from operations and available credit, will be sufficient to meet its working capital needs and support ongoing operations for the next 12 months.
About HireQuest, Inc.
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