HireQuest (HQI) Q4 2025 earnings summary

Executive summary

• Remained profitable in a challenging macro environment for staffing, ending 2025 debt free and observing early signs of labor market recovery after three years of decline.

• Divested majority ownership of MRINetwork's permanent placement/executive search business to a new entity led by franchise owners, retaining minority ownership and full control of the contract staffing segment.

• Announced a $20 million share repurchase program and continued quarterly dividends, reflecting confidence in long-term strategy and commitment to capital return.

• Observed a stabilizing job market in early 2026, with demand for flexible, skilled staffing solutions.

Financial highlights

• Q4 2025 revenue was $7 million, down 13% from $8.1 million in Q4 2024; full-year revenue was $30.6 million, down 11.4% from $34.6 million in 2024.

• Franchise royalties for Q4 were $6.6 million (vs. $7.6 million prior year); full-year royalties were $29 million (vs. $32.7 million in 2024).

• System-wide sales for Q4 were $122.3 million, down 9.3% year-over-year; full-year system-wide sales were $500.2 million, down 11.3%.

• Net income for Q4 was $1.6 million ($0.11/diluted share) vs. $2.2 million ($0.16/diluted share) prior year; full-year net income was $6.3 million ($0.45/diluted share) vs. $3.7 million ($0.26/diluted share) in 2024.

• Adjusted net income for Q4 was $2.7 million ($0.19/diluted share), flat year-over-year; full-year adjusted net income was $10 million ($0.71/diluted share), also flat.

• Adjusted EBITDA for Q4 was $3.4 million (vs. $3.8 million prior year); full-year adjusted EBITDA was $14.1 million (vs. $16.2 million in 2024).

Outlook and guidance

• Expecting a more balanced labor market in 2026, with stability in hiring and no anticipated boom or bust, but steady demand for flexible, skilled labor.

• Trends such as AI, automation, reshoring, and economic shifts expected to shape 2026; company believes it is well-positioned to benefit.

• Plans to continue quarterly dividends, subject to board discretion and financial performance.