HireQuest (NASDAQ:HQI) Posts Quarterly Earnings Results, Beats Expectations By $0.10 EPS

HireQuest (NASDAQ:HQI) announced its earnings results on Monday. The company reported $0.23 earnings per share for the quarter, topping the consensus estimate of $0.13 by $0.10, FiscalAI reports. HireQuest had a net margin of 21.98% and a return on equity of 14.90%.

Here are the key takeaways from HireQuest’s conference call:

• Revenue and profitability improved: Q2 revenue rose 6% year over year to $8.1 million, or 16.6% on a pro forma basis excluding divested MRINetwork assets. Net income increased to $2.7 million, while adjusted EBITDA grew to $4.6 million from $3.3 million.
• Management said demand strengthened through the quarter, with ongoing operations running 12%–13% above prior-year levels in some late-Q2 weeks. The company said this growth has held through the first six weeks of Q3, although it does not provide formal guidance.
• Growth is being supported by manufacturing activity, labor-supply changes tied to immigration policy, and renewed investment in national accounts. HireQuest highlighted strong Snelling performance, opportunities from reshoring projects, and a recruiting app that enables it to pursue accounts outside its branch footprint.
• Operating leverage is returning as revenue scales, with core SG&A declining to $3.8 million from $4.7 million a year earlier. Management also emphasized its debt-free balance sheet, $41 million of credit-facility availability, and expectation of continuing its quarterly dividend.
• Executives remain cautious about the longer-term outlook, noting that staffing demand is still below prior levels and remains dependent on the broader economy, immigration trends, interest rates, and political conditions. They said visibility is favorable for the balance of 2026 but declined to forecast Q4 or 2027.

HireQuest Stock Performance

NASDAQ:HQI traded up $0.29 during mid-day trading on Monday, reaching $13.57. The stock had a trading volume of 11,115 shares, compared to its average volume of 19,599. HireQuest has a twelve month low of $7.38 and a twelve month high of $14.53. The business has a 50 day simple moving average of $12.89 and a 200 day simple moving average of $11.76. The firm has a market capitalization of $188.62 million, a price-to-earnings ratio of 29.50 and a beta of 1.11.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Wells Fargo & Company MN raised its position in HireQuest by 47.2% in the fourth quarter. Wells Fargo & Company MN now owns 6,333 shares of the company’s stock worth $67,000 after acquiring an additional 2,031 shares in the last quarter. Renaissance Technologies LLC purchased a new stake in shares of HireQuest during the 4th quarter worth $112,000. Deutsche Bank AG boosted its position in shares of HireQuest by 158.0% during the 4th quarter. Deutsche Bank AG now owns 10,945 shares of the company’s stock worth $115,000 after purchasing an additional 6,702 shares in the last quarter. Russell Investments Group Ltd. grew its stake in shares of HireQuest by 67.8% during the 2nd quarter. Russell Investments Group Ltd. now owns 26,303 shares of the company’s stock worth $263,000 after purchasing an additional 10,627 shares during the period. Finally, State Street Corp increased its holdings in shares of HireQuest by 1.9% in the 4th quarter. State Street Corp now owns 76,866 shares of the company’s stock valued at $808,000 after purchasing an additional 1,451 shares in the last quarter. Institutional investors and hedge funds own 12.00% of the company’s stock.

Analysts Set New Price Targets

HQI has been the topic of several analyst reports. DA Davidson reiterated a “buy” rating and issued a $15.00 target price on shares of HireQuest in a research note on Wednesday, May 13th. Weiss Ratings upgraded HireQuest from a “hold (c-)” rating to a “hold (c)” rating in a research note on Monday, July 13th. Finally, Barrington Research increased their price target on HireQuest from $13.00 to $15.00 and gave the stock an “outperform” rating in a report on Monday, May 18th. Two analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $15.00.

About HireQuest

HireQuest, Inc is a publicly traded holding company that provides equipment rental and workforce solutions across North America through two primary operating subsidiaries. Its Coast Equipment Rentals division offers a broad range of support equipment—such as pumps, trench safety systems, power and HVAC units, air compressors, light towers and generators—to the construction, industrial, municipal and environmental markets. Coast Equipment Rentals operates more than 135 branch locations in 36 U.S.