HireQuest Q1 Revenue Falls 12.7% to $6.5M, Net Income Rises to $1.6M
HireQuest’s Q1 revenue fell 12.7% to $6.5M from $7.5M year-over-year, driven by declines in franchise royalties ($6.1M vs $7.0M) and service revenue ($462k vs $512k). Net income rose to $1.6M ($0.11 per share) and adjusted EBITDA held at $2.7M while SG&A dropped 18.8%.
1. Q1 Financial Highlights
Franchise royalties in Q1 were $6.1M compared with $7.0M, service revenue fell to $462k from $512k, driving total revenue down 12.7% to $6.5M year-over-year. Net income increased to $1.6M, or $0.11 per diluted share.
2. Expenses and Profitability
SG&A expenses declined 18.8% to $4.3M, while workers’ compensation rose to $39k from $28k. Interest expense dropped to $8k vs $144k, supporting adjusted EBITDA of $2.7M and adjusted net income of $1.8M, or $0.13 per diluted share.
3. Divestiture Impact
The first quarter of 2025 included $500k in royalties and $74k in service revenue from MRINetwork assets divested on January 1, 2026, and about $16M in system-wide sales. System-wide sales in Q1 2026 were $102.6M, down 13.4% from $118.4M a year earlier.
4. Balance Sheet and Dividend
Cash totaled $1.0M as of March 31, with $91.1M in assets and $23.8M in liabilities, resulting in $32.5M of working capital. The company remains debt-free with approximately $40.3M available under its line of credit and paid a $0.06 per share quarterly dividend.