The company maintains an exceptional 88.1% gross margin, yet this is offset by a persistent revenue contraction trend that saw a 12.7% year-over-year decline in 2026Q1.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 |
|---|
| Sales/Revenue | 29.69M | 30.64M | 34.6M | 37.88M | 30.95M | 22.53M | 13.81M | 15.88M | 97.39M | 98.07M | 93.26M | 88.5M | 91.84M | 93.75M | 98.43M | 81.92M | 69.44M | 51.56M | 79.23M | 98.72M | 71.27M | 372.21K | 415.08K | 444.56K | 284.62K | 83.56K |
| Revenue Growth % | -11.77% | -11.44% | -8.67% | 22.39% | 37.39% | 63.15% | -13.02% | -83.7% | -0.7% | 5.16% | 5.38% | -3.64% | -2.04% | -4.76% | 20.15% | 17.98% | 34.67% | -34.93% | -19.74% | 38.52% | 19048.18% | -10.33% | -6.63% | 56.19% | 240.61% | - |
| Cost of Goods Sold | 1.56M | 3.01M | 0 | 0 | 0 | 0 | 0 | 0 | 72.45M | 72.64M | 69.58M | 64.73M | 66.32M | 69.5M | 73.54M | 63.28M | 52.29M | 38.58M | 59.67M | 72.17M | 51.05M | 159.83K | 0 | 0 | 15.34K | 0 |
| COGS % of Revenue | - | 9.82% | - | - | - | - | - | - | 74.39% | 74.07% | 74.61% | 73.15% | 72.21% | 74.14% | 74.71% | 77.24% | 75.31% | 74.82% | 75.3% | 73.11% | 71.63% | 42.94% | - | - | 5.39% | - |
| Gross Profit | 28.13M | 27.63M | 34.6M | 37.88M | 30.95M | 22.53M | 13.81M | 15.88M | 24.94M | 25.43M | 23.68M | 23.77M | 25.52M | 24.25M | 24.89M | 18.64M | 17.15M | 12.98M | 19.57M | 26.55M | 20.22M | 212.38K | 415.08K | 444.56K | 269.29K | 83.56K |
| Gross Margin % | 94.73% | 90.18% | 100% | 100% | 100% | 100% | 100% | 100% | 25.61% | 25.93% | 25.39% | 26.85% | 27.79% | 25.86% | 25.29% | 22.76% | 24.69% | 25.18% | 24.7% | 26.89% | 28.37% | 57.06% | 100% | 100% | 94.61% | 100% |
| Gross Profit Growth % | - | -20.13% | -8.67% | 22.39% | 37.39% | 63.15% | -13.02% | -36.34% | -1.93% | 7.4% | -0.36% | -6.87% | 5.25% | -2.6% | 33.53% | 8.72% | 32.09% | -33.66% | -26.3% | 31.32% | 9419.16% | -48.83% | -6.63% | 65.09% | 222.25% | - |
| Operating Expenses | 21.3M | 19.44M | 30.23M | 27.24M | 14.91M | 14.88M | 8.83M | 13.09M | 23.76M | 21.73M | 22.07M | 20.78M | 19.03M | 19.88M | 22.41M | 17.76M | 15.59M | 16.6M | 24.56M | 50.52M | 22.02M | 568.68K | 201.69K | 313.51K | 327.4K | 178.06K |
| OpEx % of Revenue | - | 63.43% | 87.38% | 71.91% | 48.18% | 66.04% | 63.94% | 82.46% | 24.39% | 22.16% | 23.67% | 23.48% | 20.72% | 21.2% | 22.77% | 21.67% | 22.45% | 32.19% | 30.99% | 51.17% | 30.9% | 152.79% | 48.59% | 70.52% | 115.03% | 213.09% |
| Selling, General & Admin | 19.58M | 19.44M | 21.41M | 24.45M | 12.87M | 13.33M | 7.1M | 7.59M | 23.43M | 21.35M | 21.77M | 20.6M | 18.49M | 19.53M | 22.04M | 17.31M | 12.92M | 14.75M | 20.21M | 25.98M | 18.67M | 0 | 0 | 0 | 0 | 0 |
| SG&A % of Revenue | - | 63.43% | 61.87% | 64.54% | 41.59% | 59.16% | 51.43% | 47.81% | 24.06% | 21.77% | 23.35% | 23.28% | 20.13% | 20.83% | 22.39% | 21.14% | 18.61% | 28.61% | 25.51% | 26.31% | 26.2% | - | - | - | - | - |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 1.72M | 0 | 8.82M | 2.79M | 2.04M | 1.55M | 1.73M | 5.5M | 323.85K | 386.41K | 298.3K | 171.51K | 540.75K | 351.24K | 370.77K | 441.09K | 2.67M | 1.85M | 4.34M | 24.54M | 3.35M | 568.68K | 201.69K | 313.51K | 327.4K | 178.06K |
| Operating Income | 6.83M | 8.2M | 4.37M | 10.64M | 16.04M | 7.65M | 4.98M | 2.78M | 1.18M | 3.7M | 1.61M | 2.99M | 6.49M | 4.37M | 2.48M | 886.54K | 1.56M | -3.62M | -16.75M | -23.97M | -1.8M | -196.47K | 213.4K | 131.06K | -42.78K | -94.5K |
| Operating Margin % | 23% | 26.75% | 12.63% | 28.09% | 51.82% | 33.96% | 36.06% | 17.54% | 1.21% | 3.77% | 1.72% | 3.38% | 7.06% | 4.66% | 2.52% | 1.08% | 2.24% | -7.02% | -21.14% | -24.28% | -2.53% | -52.79% | 51.41% | 29.48% | -15.03% | -113.09% |
| Operating Income Growth % | - | 87.64% | -58.95% | -33.65% | 109.65% | 53.63% | 78.86% | 135.64% | -68.04% | 130.11% | -46.28% | -53.91% | 48.51% | 76.2% | 179.65% | -43% | 143% | 78.4% | 30.14% | -1229.21% | -817.96% | -192.07% | 62.82% | 406.38% | 54.74% | - |
| EBITDA | 9.88M | 11.2M | 7.16M | 13.43M | 18.08M | 9.2M | 5.11M | 3.18M | 1.27M | 4.08M | 1.9M | 3.16M | 7.03M | 4.72M | 2.85M | 1.32M | 2.13M | -2.83M | -15.88M | -22.45M | -1.46M | -138.37K | -201.69K | 131.06K | -42.78K | -72.96K |
| EBITDA Margin % | 33.28% | 36.57% | 20.69% | 35.46% | 58.41% | 40.84% | 36.99% | 20.06% | 1.31% | 4.16% | 2.04% | 3.57% | 7.65% | 5.03% | 2.9% | 1.61% | 3.06% | -5.49% | -20.04% | -22.74% | -2.04% | -37.17% | -48.59% | 29.48% | -15.03% | -87.31% |
| EBITDA Growth % | 50.3% | 56.55% | -46.72% | -25.69% | 96.48% | 80.11% | 60.44% | 149.92% | -68.79% | 114.36% | -39.76% | -55.01% | 48.92% | 65.6% | 116.24% | -37.99% | 175.07% | 82.17% | 29.26% | -1441.8% | -952.18% | 31.4% | -253.89% | 406.38% | 41.37% | - |
| D&A (Non-Cash Add-back) | 3.05M | 3.01M | 2.79M | 2.79M | 2.04M | 1.55M | 129.18K | 400.13K | 92.61K | 386.41K | 298.3K | 171.51K | 540.75K | 351.24K | 370.77K | 431.43K | 569.9K | 786.14K | 868.21K | 1.53M | 347.65K | 58.1K | 0 | 0 | 0 | 21.55K |
| EBIT | 7.15M | 8.2M | 5.07M | 9.17M | 14.24M | 7.65M | 6.58M | 7.89M | 1.18M | 3.7M | 1.1M | 2.64M | 5.68M | 3.58M | 3.32M | 696.47K | 1.56M | -3.19M | -4.99M | -5.67M | -1.8M | -162.97K | 213.4K | 131.06K | -42.78K | -94.5K |
| Net Interest Income | 307K | 204K | -367K | -1.12M | -121K | 256K | 661.98K | -559.59K | -2.12K | -11.62K | -25.02K | -82.17K | -248.73K | -503.63K | -804.04K | -754.76K | -1.01M | -2.31M | -848.89K | -2.01M | 87.89K | 26.27K | 0 | 0 | 20.18K | 0 |
| Interest Income | 479K | 511K | 556K | 263K | 247K | 413K | 711.65K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 87.89K | 28.49K | 0 | 0 | 61.97K | 0 |
| Interest Expense | 172K | 307K | 923K | 1.39M | 368K | 157K | 49.66K | 559.59K | 2.12K | 11.62K | 25.02K | 176.54K | 248.73K | 503.63K | 804.04K | 1.12M | 1.01M | 1.88M | 848.89K | 2.01M | 0 | 2.22K | 0 | 0 | 41.79K | 0 |
| Other Income/Expense | 108K | -1.49M | -222K | -2.86M | -2.17M | 4.83M | 1.12M | 191.49K | -2.12K | -11.62K | 477.04K | -82.17K | -1.06M | -1.29M | 38.22K | -944.83K | -2.1M | -469.28K | -11.78M | -2.06M | -615.62K | -3.65K | 0 | -131.06K | -41.79K | -21.55K |
| Pretax Income | 6.94M | 6.71M | 4.15M | 7.78M | 13.87M | 12.48M | 6.1M | 2.98M | 1.18M | 3.68M | 1.58M | 2.81M | 5.43M | 3.08M | 2.52M | -58.29K | -548.9K | -4.09M | -28.53M | -47.72M | -4.81M | 354.76K | 0 | 0 | -84.57K | -116.05K |
| Pretax Margin % | 23.37% | 21.9% | 11.98% | 20.54% | 44.81% | 55.38% | 44.18% | 18.74% | 1.21% | 3.76% | 1.7% | 3.18% | 5.91% | 3.28% | 2.56% | -0.07% | -0.79% | -7.93% | -36.01% | -48.34% | -6.75% | 95.31% | - | - | -29.71% | -138.87% |
| Income Tax | 195K | 100K | 221K | 1.34M | 1.9M | 635K | 741.04K | 3.48M | 205.07K | 2.01M | 822.03K | 1.1M | -3.69M | 137.13K | 958.15K | -912.2K | 3.12M | 2.35M | 12.63M | 2.06M | 615.62K | 496.78K | -123.87K | -41.13K | 0 | -100 |
| Effective Tax Rate % | 2.81% | 1.49% | 5.33% | 17.29% | 13.66% | 5.09% | 12.15% | 116.99% | 17.39% | 54.43% | 51.98% | 39.12% | -68% | 4.46% | 38.06% | 1564.87% | -567.62% | -57.42% | -44.27% | -4.32% | -12.79% | 140.03% | - | - | 0% | 0.09% |
| Net Income | 6.53M | 6.33M | 3.67M | 6.13M | 12.46M | 11.85M | 5.36M | -289.98K | 974.29K | 1.68M | 759.33K | 1.71M | 9.13M | 2.94M | 1.56M | 853.9K | -1.56M | -5.96M | -17.62M | -26.04M | -2.42M | -200.12K | 123.87K | 41.13K | -84.57K | -115.95K |
| Net Margin % | 21.98% | 20.66% | 10.61% | 16.2% | 40.25% | 52.6% | 38.81% | -1.83% | 1% | 1.71% | 0.81% | 1.94% | 9.94% | 3.14% | 1.58% | 1.04% | -2.25% | -11.57% | -22.24% | -26.37% | -3.39% | -53.77% | 29.84% | 9.25% | -29.71% | -138.75% |
| Net Income Growth % | 91.07% | 72.39% | -40.15% | -50.75% | 5.13% | 121.11% | 1948.21% | -129.76% | -41.98% | 121.16% | -55.68% | -81.23% | 210.31% | 88.6% | 82.61% | 154.72% | 73.83% | 66.16% | 32.32% | -976.27% | -1108.84% | -261.56% | 201.19% | 148.63% | 27.07% | - |
| Net Income (Continuing) | 6.74M | 6.61M | 3.92M | 6.43M | 11.97M | 11.84M | 5.36M | -505.47K | 974.29K | 1.68M | 556.55K | 1.56M | 9.13M | 2.94M | 1.56M | 853.9K | -1.56M | -5.96M | -17.62M | -26.04M | -2.42M | -200.12K | 123.87K | 41.13K | -84.57K | -115.95K |
| Discontinued Operations | -216K | -279K | -253K | -300K | 483K | 9K | 0 | 215.49K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.47 | 0.45 | 0.26 | 0.44 | 0.91 | 0.87 | 0.39 | -0.03 | 0.20 | 0.33 | 0.11 | 0.29 | 1.67 | 0.59 | 0.31 | 0.12 | -0.41 | -1.95 | -5.86 | -12.48 | -1.59 | -0.25 | -0.48 | 0.14 | -0.32 | -0.70 |
| EPS Growth % | 88.2% | 73.08% | -40.91% | -51.65% | 4.6% | 123.08% | 1660% | -112.5% | -39.39% | 200% | -62.07% | -82.63% | 183.05% | 90.32% | 158.33% | 129.27% | 78.97% | 66.72% | 53.04% | -684.91% | -536% | 47.92% | -442.86% | 143.75% | 54.29% | - |
| EPS (Basic) | - | 0.45 | 0.27 | 0.45 | 0.91 | 0.88 | 0.40 | -0.03 | 0.20 | 0.33 | 0.11 | 0.29 | 1.67 | 0.59 | 0.31 | 0.24 | -0.41 | -1.95 | -5.86 | -12.48 | -1.59 | -0.25 | -0.48 | 0.14 | -0.32 | -0.70 |
| Diluted Shares Outstanding | 13.9M | 14.02M | 13.92M | 13.8M | 13.72M | 13.61M | 13.65M | 11.59M | 4.86M | 5.11M | 5.26M | 5.36M | 5.47M | 4.98M | 4.97M | 5.11M | 3.79M | 3.07M | 3M | 2.09M | 1.52M | 796.98K | 292.98K | 305.12K | 266.67K | 166.67K |
| Basic Shares Outstanding | 13.87M | 14.01M | 13.84M | 13.73M | 13.65M | 13.49M | 13.54M | 11.59M | 4.85M | 5.04M | 5.2M | 5.36M | 5.47M | 4.98M | 4.97M | 4.74M | 3.79M | 3.07M | 3M | 2.09M | 1.52M | 796.98K | 292.98K | 305.12K | 266.67K | 166.67K |
| Dividend Payout Ratio | - | 53.27% | 91.48% | 54.44% | 26.58% | 26.51% | 25.33% | - | 720.16% | 69.86% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
System-wide sales contraction
As indicated by the most recent quarterly data, HireQuest has experienced a sustained period of negative revenue growth, with the latest quarter showing a 12.7% year-over-year decline, suggesting that the underlying franchise network is struggling to maintain volume in the current macroeconomic environment.
The consistent negative growth trajectory across the last several quarters implies that the company's franchise-based model is not immune to broader labor market softening. Investors should monitor whether this trend reflects a structural decline in demand for temporary staffing or merely a cyclical adjustment within the company's specific geographic footprint.
Based on reported financial statements, HireQuest maintains an exceptional gross margin profile, frequently reaching 100% in recent periods, which highlights the asset-light nature of its royalty-driven business model compared to traditional staffing peers that bear direct labor costs.
While these margins are structurally superior to industry competitors, they appear to be under pressure from the inability to scale operating expenses efficiently against a shrinking revenue base. The divergence between high gross margins and fluctuating operating margins suggests that the company's profitability is highly sensitive to the volume of system-wide sales.
According to the income statement analysis, operating income has shown extreme volatility, swinging from a loss of $2.7 million in 2024Q3 to a profit of $1.5 million in 2026Q1, indicating that the company lacks the fixed-cost flexibility to protect margins during revenue downturns.
The inability to consistently scale operating income alongside gross profit suggests that SG&A expenses remain relatively rigid despite the contraction in top-line revenue. This lack of operating leverage warrants further investigation into the company's ability to manage corporate overhead during periods of sustained system-wide sales decline.
Based on the provided figures, the company's reliance on franchise royalties creates a potential vulnerability, as evidenced by the 11.44% TTM revenue decline, which suggests that the business may be more exposed to franchisee health and labor demand volatility than the headline margins imply.
Short-term observers may focus on the risk that the company's modest cash position of $3.89 million limits its ability to support struggling franchisees or pursue necessary acquisitions. If the current revenue contraction persists, the company may face a difficult choice between cutting support costs and risking further franchise attrition.
Quick answers to the most common questions about buying HQI stock.
For fiscal year 2025, HireQuest, Inc. (HQI) reported total revenue of $30.6M. This represents a 36566.9% increase compared to $0.1M in 2001.
HireQuest, Inc. (HQI) is profitable, generating $6.3M in net income for the fiscal year ending 2025 with a net profit margin of 20.7%.
HireQuest, Inc. (HQI) reported an operating income of $8.2M, resulting in an operating profit margin of 26.7%. This margin reflects the operational efficiency of the business before interest and taxes.
HireQuest, Inc. (HQI) generated $27.6M in gross profit for the year, representing a gross profit margin of 90.2%. This demonstrates the company's core pricing power and production efficiency.