HireQuest Inc (HQI) Stock Forecast & Price Target

HireQuest Inc. has demonstrated a robust financial performance, highlighted by a 11.4% sequential increase in combined system-wide sales for HQ Direct and Snelling in Q3/25, outpacing the prior year's growth rate of 5.8%. Additionally, the company reported an adjusted EPS of $0.24 for Q3/25, which not only exceeded prior estimates but also represented a year-over-year increase from $0.20. The effective management of workers’ compensation costs through a successful insurance policy renegotiation further strengthens the company's financial outlook, supporting sustained profitability and growth in the franchise model.

HireQuest Inc. demonstrated a declining trend in its financial performance, with Q3/25 adjusted EBITDA down 5.6% year-over-year to $4.7 million, indicating ongoing financial challenges despite being better than estimates. Franchise royalty fees, which constitute 95% of total revenue, decreased by 9.8% year-over-year to $8.1 million in Q3/25, signifying a troubling reduction in revenue sources. Additionally, the significant drop of 24.4% year-over-year in system-wide sales within executive search and permanent placement during this period highlights a sustained negative demand environment that has persisted for the past 10 quarters.