HireQuest Inc (HQI) Stock Forecast & Price Target

HireQuest Inc. demonstrates a positive financial trajectory, evidenced by its Q3/25 adjusted earnings per share (EPS) of $0.24, which reflects a year-on-year increase from $0.20 and surpasses estimates and consensus expectations. The company’s franchise business model is strategically positioned to capture market share more effectively than traditional company-owned branches, creating strong incentives for revenue growth among franchisees. Additionally, with a continued decline in workers’ compensation costs following the renewal of its insurance policy, HireQuest has updated its revenue estimate for 2025 to $29.8 million, indicating robust performance even amid challenging year-over-year comparisons.

HireQuest Inc. has experienced a notable decline in its key revenue driver, with franchise royalty fees, which represent 95% of total revenue, dropping by -9.8% year-over-year to $8.1 million in Q3/25, reflecting ongoing challenges in the staffing industry. The company's Q3/25 adjusted EBITDA also fell by -5.6% year-over-year to $4.7 million, indicating potential struggles with operational efficiency despite exceeding some estimates. Additionally, system-wide sales in the executive search and permanent placement segment, which constitutes 22% of total sales, decreased significantly by -24.4% year-over-year in Q3/25, underscoring a continued adverse demand environment that has persisted for over ten consecutive quarters.