HireQuest, Inc. ( (HQI) ) has released its Q3 earnings. Here is a breakdown of the information HireQuest, Inc. presented to its investors.
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HireQuest, Inc. is a national franchisor specializing in direct dispatch, executive search, and commercial staffing services, offering employment solutions through a network of over 400 franchisee-owned offices across various industries in the United States.
In its latest earnings report for the third quarter of 2024, HireQuest, Inc. reported a modest increase in revenue and franchise royalties, despite facing a net loss due to a significant non-cash impairment charge. The company highlighted growth in its temporary staffing brands and an improvement in adjusted net income compared to the previous year.
Key financial metrics from the third quarter revealed a 1.6% increase in total revenue to $9.4 million and a 0.9% growth in franchise royalties to $9.0 million. However, the quarter was marked by a loss from operations of $2.7 million due to a $6.0 million non-cash impairment charge. Despite this, adjusted EBITDA improved to $4.9 million from $3.7 million in the same period last year, and adjusted net income increased by 29% year-over-year.
For the year-to-date, the company reported a decline in total revenue and franchise royalties compared to 2023, with net income dropping significantly to $1.5 million from $6.1 million. Nonetheless, the adjusted EBITDA remained stable at $12.3 million, indicating resilience in operational efficiency.
Looking ahead, HireQuest, Inc. remains optimistic about a stabilizing staffing market and expects to benefit from lower operational costs and reduced workers’ compensation expenses. The company is poised to leverage emerging opportunities as demand for staffing services strengthens in a more favorable economic environment.
