HireQuest Inc (HQI) Stock Forecast & Price Target

HireQuest Inc. has demonstrated a positive financial trajectory, as evidenced by the renegotiation and renewal of its workers’ compensation insurance policy, contributing to a favorable reduction in costs. The company's franchise business model has proven effective in facilitating market share expansion, as it encourages franchisees to focus on revenue growth more actively than company-owned branches. Additionally, the reported Q3/25 adjusted EPS rose to $0.24, surpassing both previous estimates and consensus forecasts, coupled with a notable 11.4% sequential increase in combined system-wide sales for HQ Direct and Snelling, reflecting robust operational performance.

HireQuest Inc. has reported a continued decline in its core revenue streams, with franchise royalty fees, which constitute 95% of total revenue, decreasing by -9.8% year-over-year to $8.1 million in Q3/25, reflecting ongoing challenges in the staffing industry. The company's adjusted EBITDA dropped by -5.6% year-over-year, indicating pressure on profitability despite exceeding estimates. Furthermore, the significant weakness in system-wide sales within the executive search and permanent placement segments, which fell by -24.4% year-over-year, underscores persistent adverse market conditions affecting HireQuest's performance over an extended period.