HireQuest (HQI) Q2 2026 earnings summary

Executive summary

• Q2 2026 marked the first year-over-year revenue growth since Q3 2024, driven by improved demand, favorable immigration policies, strong manufacturing labor market (notably Snelling franchisees), and returns from national accounts investments.

• Net income for Q2 2026 was $2.7 million ($0.19 per diluted share), up from $1.1 million ($0.08 per share) in Q2 2025, with a net margin of 33.2%.

• Adjusted net income was $3.2 million ($0.23 per share) vs. $2.1 million ($0.15 per share) last year; adjusted EBITDA was $4.6 million, up from $3.3 million.

• The company maintained GAAP profitability throughout the downturn and operates 251 franchisee-owned offices and 1 company-owned office as of June 30, 2026.

• Franchisees are positioned to capture demand as market conditions improve, with confidence in long-term strategy and shareholder value creation.

Financial highlights

• Q2 2026 total revenue was $8.1 million, up 6% year-over-year; pro forma for the MRINetwork divestiture, revenue grew 16.6%.

• Franchise royalties rose 4.1% to $7.6 million; pro forma growth was 13.8%.

• Service revenue increased to $513,000 in Q2 and $975,000 for the six months, primarily due to higher liability insurance revenue.

• Net income after tax for the six months was $4.3 million, up from $2.5 million in the prior year period.

• Adjusted EBITDA for the six months was $7.3 million, up from $6.1 million year-over-year.

Outlook and guidance

• Growth momentum from late Q2 continued into Q3, with weekly year-over-year comparisons reaching 12–13% by quarter-end.

• Management expects continued organic and acquisition-driven growth, with a focus on expanding franchisee business and strategic acquisitions.

• Strong visibility for the remainder of 2026, supported by a robust pipeline in national accounts and broader industry recovery.

• No formal guidance provided, but management expressed confidence in sustaining positive trends and plans to continue quarterly cash dividends, subject to board discretion.