The strong beat and operational inflection validate the stabilizing demand narrative. With no debt, growing cash flow, and a $41M credit line, HQI has ample firepower for tuck-in acquisitions. Monitor the upcoming conference call for commentary on franchisee demand trends and any M&A pipeline updates.
Price Chart
Executive Summary
HireQuest reported Q2 2026 results that significantly exceeded consensus estimates, with adjusted EPS of $0.23 beating the $0.13 estimate by 76.9% and revenue of $8.1M beating the $7.1M estimate. The beat was driven by a 6.0% YoY revenue increase (16.6% pro forma for the MRINetwork divestiture), a 31.9% reduction in SG&A, and a 138.8% surge in net income to $2.7M. The strong operational leverage and stabilizing demand environment mark a clear inflection from the prior quarter's revenue decline, making this a bullish signal for the stock.
Key Financial Metrics
Key Facts
- Total revenue of $8.1M, up 6.0% YoY (16.6% pro forma for MRINetwork divestiture), beating $7.1M consensus.
- Adjusted EPS of $0.23, up 53.3% YoY, beating $0.13 consensus by 76.9%.
- GAAP net income of $2.7M ($0.19 diluted), up 154% YoY from $1.1M ($0.08 diluted).
- Adjusted EBITDA of $4.6M, up 41.7% YoY from $3.3M.
- SG&A expenses fell 31.9% YoY to $4.0M, driving operating leverage.
- System-wide sales pro forma for divestiture increased 6.9% YoY.
- Cash dividend of $0.06 per share maintained; $41.0M available under line of credit.
- No debt on balance sheet; working capital of $35.1M.
Financial Impact
EPS beat consensus by $0.10 (76.9% surprise); revenue beat by $1.0M (14.1% surprise). Net income more than doubled YoY.
Risk Factors
- System-wide sales still declined 6.4% on a reported basis due to the MRINetwork divestiture, masking underlying growth.
- Cash balance declined to $1.6M from $3.9M at year-end 2025, though working capital improved.
- Dependence on franchisee performance and general economic conditions in the staffing industry.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001437749-26-026772 |
| Document: hqi20260810_8k.htm | 0001437749-26-026772 |
| Document: 0001437749-26-026772-index-headers.html | 0001437749-26-026772 |
| Document: 0001437749-26-026772-index.html | 0001437749-26-026772 |
| Document: 0001437749-26-026772.txt | 0001437749-26-026772 |
| 8-K Data (Synthetic) | 0001437749-26-026772 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 10, 2026 11w ago | 8-K | $17.19 $15.94 | ▼ −7.27% | ▼ −6.21% | $17.18 (−0.06%) |
Aug 10, 2026 11w ago | Press Release | $17.19 $15.94 | ▼ −7.27% | ▼ −6.21% | $17.18 (−0.06%) |
May 12, 2026 23w ago | 8-K | $12.47 $14.18 | ▲ +13.71% | ▲ +14.33% | $17.18 (+37.77%) |
May 8, 2026 24w ago | 8-K | $11.66 $12.56 | ▲ +7.72% | ▲ +8.02% | $17.18 (+47.34%) |
Mar 30, 2026 30w ago | 8-K | $9.98 $11.47 | ▲ +14.93% | ▲ +5.51% | $17.18 (+72.14%) |
US Market Status
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