HQI

Image source: The Motley Fool. Monday, Aug. 10, 2026, at 4:30 p.m. ET President and Chief Executive Officer-Richard F. Hermanns Chief Financial Officer-C. David Hartley Operator: Good afternoon. And welcome to the HireQuest Inc. Second Quarter 26 Earnings Conference Call. At this time, all participants have been placed on mute for the presentation. It is now my pleasure to turn the floor over to your host, Jen Belladeau from INF Investor Relations. Jen, the floor is yours. Thank you. I would like to welcome everybody to the call today. Hosting the call are HireQuest CEO, Richard F. Hermanns, and CFO, C. David Hartley. I will now take a moment to read the safe harbor statement. This conference call contains forward-looking statements as defined within Section 27A of the Securities Act of 1.93 thousand as amended, and Section 21E of the Securities Exchange Act of 1.93 thousand as amended. These forward-looking statements and terms such as anticipate, expect, intend, may, will, should or other comparable terms involve and uncertainties because they relate to events and depend on circumstances that will occur in the future. Those statements include statements regarding the intent, belief, or current expectations of Hire Quest and members of its management, as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward looking statements are not guarantees of future performance and involve risks and uncertainties, including those described in HireQuest's periodic reports filed with the SEC. And that actual results may differ materially from those contemplated by such forward looking statements. Except as required by federal securities law, HireQuest undertakes no obligation to update or revise forward-looking statements to reflect changed conditions. Now I would like to turn the call over to the CEO of Hire Quest, Richard F. Hermanns. Please go ahead, Rick. Richard F. Hermanns: Good afternoon, and thank you for joining our call today. In the second quarter, we continued to see improving demand for temporary staffing services as the market stabilizes and employers begin to prioritize hiring again. Leading up to Q2, we saw what I described as tentative green shoots in demand over the last few quarters, but with no real traction to speak of until the second half of the first quarter of this year when we started to see consistent demand in favorable weekly year over year comparisons across the business. As you can see in our results, these comps were even more favorable in Q2 as we drove year over year revenue growth for the first time since the third quarter of 2020 4. And frankly, the latter part of the second quarter was better than the start. Dave will take a deeper dive into the financials, but moving down the P&L at a high level, the increased revenue in the quarter combined with disciplined expense management generated significantly improved GAAP profitability and earnings for our shareholders. We operate in an industry where a rising tide tends to lift all ships. With macro factors like interest rates and the political landscape weighing heavily upon employers' decisions to hire downsize, or even freeze their-- their efforts altogether. The latter is what we are seeing for the better part of the last 2 years. So far this year, there have been 3 primary factors enabling our growth. First, we are seeing the benefits from the immigration policies enacted at the beginning of 2020 5. Second, our franchisees have taken advantage of the uptick in the manufacturing labor market, especially our Snelling franchisees who grew their top line by almost 15%. And third, as I mentioned on last quarter's call, we are seeing a return on the investments we have made in our national accounts program. So while the industry is up as a whole, we continue to stand out from the pack thanks to our differentiated franchise staffing model which allows us to be nimble and flexible regardless of the market trends. I would like to highlight that we remain profitable throughout the duration of this market downturn. In fact, we have reported GAAP profitability in each quarter since the third quarter of 2020 4 when we recognized a 1-time noncash impairment charge of 1 of $6.4 million related to our acquisition of MRI Network, which flowed down to our bottom line. On a non-GAAP basis, we have never reported a loss. With that background, you can see how exciting a stabilizing market is for our business after 2+ years of uncertainty. We are well positioned with a proven model, increasing demand, and a strong balance sheet and no debt. there is work still to be done, and the market has a long way to go before it returns to previous levels. With that being said, we are encouraged by what we are seeing in both our business and in the broader staffing market And with our visibility today, believe that we are in a stronger place to deliver positive results through the balance of 2026. With that, I will turn over the call now to Dave to provide a closer look at our second quarter financial results. C. David Hartley: Thank you, Rick, and good afternoon, everyone. Appreciate you all joining us today. I will now provide a summary of our second quarter results. Total revenue in the second quarter of 2020 6 was $8.1 million compared with revenue of $7.6 million in the prior year. An increase of 6%. Which is especially impressive when you take into account that the second quarter of 2020 5 included $690 thousand in total revenue related to the MRI network assets we divested at the beginning of the year. So pro forma for the divestiture, total revenue was up 16.6% in the second quarter. As a quick refresher for all of you on the call, our total revenue is made up of 2 components. Franchise royalties, which is our primary source of revenue and service revenue, which is generated from certain services and interest charged to our franchisees. As well as other miscellaneous revenue. Royalties were $7.6 million compared to $7.3 million for the same quarter last year. Increase of 4.1%. Pro forma for the divestiture franchise royalties were up 13.8%. Underlying franchise royalties are system wide sales, which are not part of our revenue, but are a helpful contextual performance indicator. System wide sales reflect sales at all offices, including those classified as discontinued. System wide sales in the second quarter were $117.8 million compared with $125.9 million in the second quarter of 2020 5. Divested MRI network assets contributed roughly $17.7 million in Q2 25, which translates to pro forma growth in this quarter of 6.9%. Service revenue in the second quarter was $513 thousand compared with $354 thousand last year. Selling, general and administrative expenses in the second quarter were $4.0 million compared to $5.9 million in the second quarter of 2020 5. Included in SG&A expenses is workers' compensation expense. Which totaled $39 thousand for the second quarter of 2020 6. Compared with $127 thousand in Q2 25. For Q2 26, core SG&A which excludes the impact of workers' comp and any nonrecurring operating expenses, was $3.8 million compared to $4.7 million last year. Q2 of 2020 5 included approximately $633 thousand in SG&A expenses related to the divested MRI network assets. We provide a table in the press release issued earlier this afternoon with a detailed reconciliation of core SG&A to SG&A. Along with tables for non GAAP profitability metrics. Net income to adjusted net income and net income to adjusted EBITDA, which I will discuss shortly. Net income after tax was $2.7 million in the second quarter, or $0.19 per diluted share. Compared to net income of $1.1 million or $0.08 per diluted share last year. Adjusted net income for the second quarter was $3.2 million or $0.23 per diluted share compared to adjusted net income of $2.1 million or $0.15 per diluted share last year. And adjusted EBITDA was $4.6 million in the second quarter, compared to $3.3 million last year. Given the size of noncash operating expenses running through our P&L, we believe adjusted EBITDA and adjusted net income are both relevant metrics for us. Moving on now to the balance sheet. Our total assets as of June 30, 2026, were $93.4 million compared to $88.2 million at December 31, 2025. Current assets included $1.6 million in cash, and $48.9 million of net accounts receivable. While current assets at 2025 year end included $3.9 million of cash and $39.3 million of net accounts receivable. Working capital was $35.1 million as of June 30, 2026, compared with $33.0 million at 2025 year end. As of June 30, 2026, we had $41.0 million in availability on our credit facility, assuming continued credit covenant compliance. We have paid a regular quarterly dividend since the third quarter of 2020. Most recently, we paid a $0.06 per common share dividend on June 15, 2026, to shareholders of record as of June 1. We expect to continue to pay a dividend each quarter subject to the Board's discretion. With that, I will turn the call back over to Rick for some closing comments. Richard F. Hermanns: Thank you, Dave. As always, I would like to thank our employees and franchisees for their hard work and commitment. And we look forward to speaking with you again when we report our third quarter results in November. With that, we can now open the line to questions. Thank you. Operator: Thank you. Ladies and gentlemen, the floor is now open for questions. If you wish, press *1 on your telephone keypad. We do ask if listening on speaker equipment that you pick up your handset while asking your question to provide optimal sound quality. Once again, please press *1 on your telephone keypad at this time if you wish to join the queue to ask a question. Please hold a moment while we poll for questions. And the first question today is coming from Mike Baker with D. A. Davidson. Mike, your line is live. Please go ahead. Mike Baker: Great. Thanks. Couple of questions. 1, willing to answer it, you said the quarter, the run rate was better toward the end of the quarter than the beginning. Any quantification of that? What are you running at let's say, in the last month of the second quarter? C. David Hartley: So we started the quarter running, year over year. We were running maybe 2% to 4% ahead of let's say, the year over year comparisons. By the end, we were running upwards to 12% to 13% in some weeks more than the prior year comparison. Mike Baker: And does that just how I could probably figure it out. But does that include or exclude MRI in the base last year? Richard F. Hermanns: Well, yeah. No. No. No. I am sorry. that is just comparing sort of our ongoing-- our-- our ongoing operations, really primarily HireQuest Direct and Snelling. The you know, until December, we will have that sort of the unfair favorable comparison because of the MRI royalties being included. Got it. Got it. Got it. So that is a pretty big ramp up I do not know. You said that we are seeing that in some weeks. I know you do not give any kind of guidance or anything like that, but would it be unfair to expect that kind of growth to continue into the-- for the rest of the year? Or are there other factors to consider when we think about our forward model? C. David Hartley: Yeah. I mean, look. Again, you are right. We do not provide guidance All I can say which would go along the lines of last quarter, is, of course, because we are already, what, 6 weeks you know, we are 6 weeks into this third quarter. And I would just say that we have held the growth from the second half of the second quarter. If that makes sense. Mike Baker: Yeah. No. It does. Okay. Well, that yeah. Pretty big turnaround there. Richard F. Hermanns: Besides really beating on the top line, at least relative to my model, you came in well ahead, in other words, lower on the expense line at $4.0 million if you include workers' comp or whatever, $3.8 million if excluding that. More than it is been in a while, Again, how do we think about expenses going forward? What have you done to lower expenses? And do you need to add back expenses as revenues start to ramp here? C. David Hartley: Well, 1 of the things, and it was not really in our prepared remarks, but in our prepared remarks, but the second quarter of last year had an enormous amount of legal fees related to related to TrueBlue. The attempted, you know, the attempted takeover of TrueBlue. And so, you know, that created part of the part of the favorability. But, really, we did not we I would love to say we had some silver bullets. We bought some AI or something. so it is nothing like that. it is really just we are finally getting some restoration of our of our operating you know, leverage that we lost over the last 3 years of a kind of a dead market And so we are just we are just regaining our economies of scale. I would also say is that you know, which has helped it as well is the there is probably some bleed over as well from the MRI divestiture even what we maybe saw as being part of MRI, you know, where we were able to make a few extra cuts as well. But, again, mostly, it is just scale that is really working for us right now. Mike Baker: Understood. I will turn it over to others. Thanks. Operator: Thank you. Your next question is coming from Kevin Steinke from Barrington Research. Kevin, your line is live. Please go ahead. Kevin Steinke: Great. Thank you. Also in your prepared comments, you mentioned that the visibility you have today gives you confidence in the outlook for the second half of 2026. Richard F. Hermanns: So just kind of wondering what sort of visibility indicators you are able to draw from the business. I mean, how far out those go? And just any more comments around the visibility? Sure. Kevin Steinke: Sure. And thanks, Kevin, for the question. there is 3 things I would say. Richard F. Hermanns: Number 1 is, again, we are obviously 6 weeks into a 13-week quarter. And business has been strong already. So it is not a big leap of faith to say things are looking great for Q3. The you know, that said, the other 2 things that are where we have our visibility is just our pipeline even from our national accounts department. We have got a number of really nice opportunities that are that are lying out there, and the pressure is definitely more you know, we have more opportunities out there that we are even waiting to hear back from prospective clients. Then you know, than ones that we are kinda hanging on by our fingernails with. So that is another part of it. And then the third thing is just looking the overall staffing market and you look at who is already reported and stuff like that. Is there is clearly you know, there is clearly a movement back toward temporary staffing. And that is great news for us. And so it is not just us you know, getting more wins from our national accounts department. Which we absolutely positively are. but it is also that there are just more opportunities out there. And so know, as far as how long that will extend out in the future, look, I am not arrogant enough to think that I can tell you what is gonna happen in Q4 or, you know, the first quarter of next year? Because, you know, if anything, the last 3.5 years is taught us is that we are still a product of our industry, and our industry is a product of immigration and the economy. Right. Kevin Steinke: No. that is that is helpful. And you mentioned there the national accounts. So that seems, you know, that is obviously something you are you have been investing in. Internally in not just kind of waiting for the uplift in the market to carry you. So again, can you kind of talk about the momentum there? I know I think you have added some people to go out and actually better penetrate these national accounts after you win them. And you mentioned the pipeline there is good. So I would just like to hear more about the benefits of your efforts on the national account side. Richard F. Hermanns: Absolutely. Absolutely. So and there is a few different parts to that. First thing is a lot of large projects are coming out of the ground right now. You know, just when you think of the scale of whether it is a data center or you know, re you know, reshoring of these large factories. And the thing is it requires sometimes a very sophisticated sales process. And, you know, that is part of why we decided that we needed to do more with our national accounts department. The other thing is what we found in some instances was we had enough opportunities out there that were not being picked up. And so we have been more aggressive in working with our franchisees to make sure that the opportunities are taken upon. The other thing that is sort of new for us, newer anyway, is you know, so we unveiled a an app that basically are that we can recruit more effectively electronically as well rather than simply relying on our on our branches. And what that is allowed us to do is to take business in places where we do not necessarily have a branch. For example, we have a large account coming up in Northern, you know, in Upstate New York. And so that historically, we would have never have gone after. And now we can work with a couple of our franchisees that are not even in that market, and they are going to go and fill that. And that is gonna be it is a short term project. It might probably be, like, 6 weeks, but it is, you know, it is like a 100 people a day for 6 weeks. it is a nice sized account. And so we have had a number of those, and so that would be the other part. Where our national accounts have been like I said, sort of scoring some pretty good points. Kevin Steinke: Yes. that is great to hear. So you mentioned there the reshoring of some factories, and it is not the first time I have heard that. I have heard comments from others in the staffing industry about that. So I am just curious to hear your thoughts on you know, if that is really providing some real legs, a real tailwind, you know, for your industry and your business now. Richard F. Hermanns: I think the answer is yes. Do not get me wrong. The application of greater technologies is also stripping existing manufacturing jobs from our industry. But the reshoring is restoring what might have otherwise have been lost. If that makes any sense. And so reshoring is helping. I am not saying it is this massive tailwind that is just-- you know what I am saying? --that is just blowing us across the sea. that is not what is happening. But it is at least recovering what would have maybe otherwise have been lost. And, you know, and I alluded to it earlier, you know, the other thing is there has just been a contraction in the supply of labor which is just bringing back a number of clients who maybe for the last 3 to 5 years have not really used much from the staffing industry. And I think that is really making a difference as well. Kevin Steinke: Right. Okay. So in the end, the contraction and the supply, that is I guess, more related to the immigration point that you mentioned earlier. Correct? Richard F. Hermanns: Correct. Yes. Kevin Steinke: Okay. Well, great. I think, you know, lastly, you mentioned the uptick in manufacturing is kind of a key driver. Again, should we just tie that to the data centers and reshoring, or are there any other industry or geographic pockets where you are you are you are seeing that benefit from manufacturing activity. Richard F. Hermanns: So I would say that we have seen a fairly diverse growth. I mean, we are really doing extraordinarily well in Texas. I will say, if there is a spot we are doing really well, it is Texas. But it is still pretty general. Whereas, really, over the last 4 or 5 years, it was very much centered in certain spots. And I would not just put it on data centers. To be honest with you, data centers has not really helped us as much as just the reshoring, but also just the fact that a number of companies are just going back to using temporary staffing. And we just have more opportunities. Okay. Well, that is good because The other part is-- and I want just 1 final thing is I think that the last year, there was quite a bit of an unsettled environment as it related to tariffs. C. David Hartley: And I think that has also now become sort of baked into decisions, and that helped us as well. Kevin Steinke: Right. Right. Okay. Yeah. That makes sense. Well, I appreciate all the color, and congratulations on the strong results. I will turn it back over. Thanks. Operator: Thank you. This does conclude today's Q&A session. I would now like to pass the floor back to Rick Herman for closing remarks. Richard F. Hermanns: Thank you again, everybody, for joining us. For the presentation of our second quarter results. We certainly hope you will agree with us that it was a very promising quarter, and hopefully, 1 that is more of a harbinger of things to come in the near future. We are very grateful for the hard efforts of our employees and our franchisees. And we look forward to presenting our Q3 results in November. Thank you, and have a good day. Operator: Thank you. This does conclude today's conference call. You may disconnect your lines at this time, and have a wonderful day. Thank you once again For your participation. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends HireQuest. The Motley Fool has a disclosure policy. HireQuest (HQI) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

GOOSE CREEK, S.C., Aug. 13, 2026 /PRNewswire/ -- HireQuest, Inc. (Nasdaq: HQI), a national franchisor of on-demand staffing and executive search services, today announced that its Board of Directors has declared a quarterly dividend of $0.06 per share. The dividend is payable September 15, 2026, to shareholders of record at the close of business on September 1, 2026. About HireQuest HireQuest is a franchisor of staffing solutions with a footprint across the U.S. and international markets. Through its primary divisions - HireQuest Direct, HireQuest Health, Snelling, TradeCorp and DriverQuest - the company delivers temporary, direct-hire, and contract workforce solutions across a wide range of industries, including construction, light industrial, healthcare, finance, manufacturing, hospitality, logistics and more. From on-demand staffing to direct hire recruiting, HireQuest's divisions work together to provide workforce solutions that help businesses grow and create meaningful opportunities for the communities we serve. For more information, visit www.hirequest.com Important Cautions Regarding Forward-Looking Statements This release contains certain forward-looking statements which reflect management's expectations regarding future events and operating performance and speaks only as of the date hereof. All statements, other than statements of historical or current fact, are statements that could be deemed forward-looking statements, including, without limitation, statements relating to our declaration or payment of quarterly dividends. Forward-looking statements are based on the current beliefs, assumptions, and expectations of management and current market conditions. There can be no assurance that future dividends will be declared, and the payment of this quarterly dividend is expressly conditioned on the Board not revoking the dividend before the payment date. The declaration of future dividends is subject to approval of the Board of Directors each quarter after its review of the Company's financial performance and cash needs. Declaration or payment of future dividends is also subject to various risks and uncertainties, including: the Company's cash flow and cash needs; compliance with applicable law; restrictions on the payment of dividends under existing or future financing arrangements; changes in tax laws relating to corporate dividends; the deterioration in the Company's financial condition or results; and those risks, uncertainties, and other factors identified from time to time in the Company's filings with the Securities and Exchange Commission. These forward-looking statements involve a number of risks and uncertainties. Other factors that could cause actual results to differ materially from our expectations are detailed in the Company's filings with the Securities and Exchange Commission, such as its annual and quarterly reports and current reports on Form 8-K. The Company undertakes no obligations to update such forward-looking statements, except as may otherwise be required by law. Company Contact: HireQuest, Inc. David Hartley, Chief Financial Officer (800) 835-6755 Email: [email protected] Investor Relations Contact: IMS Investor Relations John Nesbett/Jennifer Belodeau (203) 972-9200 Email: [email protected] View original content to download multimedia:https://www.prnewswire.com/news-releases/hirequest-inc-declares-quarterly-dividend-302851316.html

This article first appeared on GuruFocus. Total Revenue: $8.1 million in Q2 2026, up 6% from $7.6 million in Q2 2025; pro forma for the MRI divestiture, total revenue increased 16.6%. Franchise Royalties: $7.6 million, up 4.1% year-over-year; pro forma for the divestiture, royalties increased 13.8%. System-wide Sales: $117.8 million in Q2 2026, compared with $125.9 million in Q2 2025; pro forma growth of 6.9%. Service Revenue: $513,000, up from $354,000 in the prior-year quarter. SG&A Expenses: $4.0 million, down from $5.9 million in Q2 2025; core SG&A was $3.8 million, compared to $4.7 million last year. Net Income: $2.7 million, or $0.19 per diluted share, compared to $1.1 million, or $0.08 per diluted share, in Q2 2025. Adjusted Net Income: $3.2 million, or $0.23 per diluted share, versus $2.1 million, or $0.15 per diluted share, last year. Adjusted EBITDA: $4.6 million, compared to $3.3 million in the prior-year quarter. Balance Sheet: Total assets of $93.4 million as of June 30, 2026; working capital of $35.1 million; $41 million in credit facility availability. Dividend: Paid a $0.06 per common share dividend on June 15, 2026. Warning! GuruFocus has detected 7 Warning Sign with HQI. Is HQI fairly valued? Test your thesis with our free DCF calculator. Release Date: August 10, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. HireQuest Inc (NASDAQ:HQI) reported a 6% year-over-year increase in total revenue for Q2 2026, marking the first growth since Q3 2024, with pro forma growth of 16.6% excluding divested MRI assets. The company saw a significant improvement in profitability, with net income rising to $2.7 million ($0.19 per diluted share) from $1.1 million ($0.08) in the prior year, and adjusted EBITDA up to $4.6 million from $3.3 million. Franchise royalties grew 4.1% year-over-year, and pro forma for the divestiture, they increased 13.8%, driven by strong performance in manufacturing and national accounts. The company benefited from favorable immigration policies enacted in early 2025, which helped expand the labor supply and boost demand for temporary staffing services. HireQuest Inc (NASDAQ:HQI) maintained a strong balance sheet with no debt, $41 million in credit availability, and continued paying its regular quarterly dividend, demonstrating financial stability. System-wide sales declined 6.4% year-over-year to $117.8 million, and even pro forma for the MRI divestiture, growth was only 6.9%, indicating a slower recovery in overall sales. The company faces ongoing unfavorable year-over-year comparisons due to the MRI network divestiture, which will continue to impact reported results until December. The market recovery is still in early stages, with management noting that the industry has a long way to go before returning to previous levels, and there is uncertainty about Q4 and beyond. SG&A expenses, while lower, were partly reduced by one-time factors such as legal fees from the TrueBlue takeover attempt, which may not be sustainable as a cost-saving measure. The company's growth is heavily dependent on macro factors like immigration policies and economic conditions, which could reverse and negatively impact demand for staffing services. Q: Can you quantify the improvement in revenue growth you saw as the second quarter progressed, and has that momentum continued into the third quarter?A: Rick Hermanns (CEO) stated that the company began the quarter with year-over-year growth of 2% to 4%, but by the end of the quarter, weekly comparisons were running upwards of 12% to 13%. He confirmed that this growth rate has been maintained through the first six weeks of the third quarter, providing confidence in the near-term outlook. Q: What factors are driving the significant improvement in profitability and lower SG&A expenses?A: Rick Hermanns (CEO) attributed the expense favorability to a few factors, including a reduction in legal fees related to the TrueBlue takeover attempt in the prior year and the restoration of operating leverage as revenue scales. He noted that the company is regaining economies of scale after a difficult three-year market period and has also made some additional cost cuts following the MRI divestiture. Q: What gives you the visibility and confidence to suggest a positive outlook for the second half of 2026?A: Rick Hermanns (CEO) cited three key indicators: strong business performance in the first six weeks of Q3, a robust pipeline of opportunities from the national accounts department, and a broader industry-wide movement back towards temporary staffing. He cautioned, however, that predicting beyond the current quarter remains difficult given the industry's sensitivity to immigration and economic factors. Q: Can you provide more detail on the momentum and benefits of your national accounts program?A: Rick Hermanns (CEO) explained that the program is winning larger, more sophisticated projects, such as those related to data centers and factory reshoring. He highlighted a new electronic recruiting app that allows the company to take on business in markets without a physical branch, citing a large project in upstate New York requiring 100 people per day for six weeks as an example of the program's success. Q: Is the reshoring of manufacturing providing a real tailwind for your business?A: Rick Hermanns (CEO) confirmed that reshoring is a genuine benefit, helping to recover jobs that might otherwise be lost to technological advancements. While not a massive tailwind, it is stabilizing the manufacturing sector. He also noted that a contraction in the labor supply, partly due to immigration policies, is bringing clients back to the staffing industry. Q: Are there any specific geographic or industry pockets where you are seeing the most strength in manufacturing?A: Rick Hermanns (CEO) stated that growth is fairly diverse, but Texas is performing "extraordinarily well." He clarified that the strength is not solely tied to data centers but is more broadly related to reshoring and a general return to temporary staffing. He also mentioned that the uncertainty around tariffs has subsided, which has helped decision-making. Q: Does the strong growth rate you mentioned exclude the impact of the MRI divestiture?A: Rick Hermanns (CEO) clarified that the weekly year-over-year growth rates of 12% to 13% are based on ongoing operations (HireQuest Direct and selling) and exclude the impact of MRI royalties, which will remain an unfavorable comparison until December. Q: How should we think about the expense base going forward as revenue ramps up?A: Rick Hermanns (CEO) indicated that the lower expense levels are primarily due to regaining economies of scale rather than one-time cuts. He suggested that the company is seeing the benefits of operating leverage as revenue grows, implying that the current expense structure is sustainable as the business scales. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved year-over-year revenue growth for the first time since Q3 2024, signaling a transition from tentative 'green shoots' to consistent demand traction. Performance was bolstered by 2025 immigration policy changes and a significant uptick in the manufacturing labor market, particularly within the Snelling franchise brand. Strategic investments in the national accounts program are beginning to deliver returns, helping the company outperform broader industry trends. The franchise model's inherent flexibility allowed the company to remain GAAP profitable throughout a two-year market downturn and uncertainty. Management attributes the recent demand surge to a 'rising tide' effect as macro factors like interest rates and political landscapes begin to stabilize. Operational leverage improved as the company regained economies of scale that were previously lost during the multi-year market stagnation. Management expressed confidence in the balance of 2026, noting that growth momentum from the late second quarter has held through the first six weeks of Q3. The national accounts pipeline remains robust with several large-scale project opportunities, particularly in data centers and reshored manufacturing facilities. Future performance remains contingent on broader economic factors and the continued impact of immigration policies on labor supply. The company plans to leverage its new electronic recruitment app to capture business in geographic markets where it lacks physical branch infrastructure. Regular quarterly dividends are expected to continue, supported by a strong debt-free balance sheet and increasing cash flow. Divested MRI Network assets at the beginning of the year, which impacted year-over-year comparisons; pro forma revenue growth was 16.6% excluding these assets. Significant reduction in SG&A expenses was partially driven by the absence of high legal fees related to the prior year's attempted takeover of TrueBlue. Workers' compensation expense decreased to $39 thousand in Q2 2026 from $127 thousand in the prior year period. The company maintains a strong liquidity position with $41.0 million in availability on its credit facility and zero debt. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management quantified that year-over-year growth started the quarter at 2% to 4% but accelerated to 12% to 13% in some weeks by the end of the period. Confirmed that the elevated growth rates seen in the latter half of Q2 have been maintained through the first six weeks of Q3. The decrease in expenses was primarily due to the absence of one-time legal fees from the previous year and the restoration of operating leverage as scale returned. Management noted that the MRI divestiture allowed for additional minor cost-cutting measures. Reshoring is acting as a stabilizer, recovering manufacturing jobs that might otherwise have been lost to technological displacement. Noted that a contraction in labor supply is driving clients back to the staffing industry after several years of reduced usage. Texas was highlighted as a specific area of extraordinary performance, though growth is becoming more diverse across various regions. Management suggested that a more settled environment regarding tariffs has helped clients move forward with hiring decisions.

HireQuest, Inc. (HQI) came out with quarterly earnings of $0.23 per share, beating the Zacks Consensus Estimate of $0.13 per share. This compares to earnings of $0.15 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +76.92%. A quarter ago, it was expected that this company would post earnings of $0.11 per share when it actually produced earnings of $0.13, delivering a surprise of +18.18%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. HireQuest, which belongs to the Zacks Staffing Firms industry, posted revenues of $8.1 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 18.06%. This compares to year-ago revenues of $7.64 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. HireQuest shares have added about 26.4% since the beginning of the year versus the S&P 500's gain of 13.3%. While HireQuest has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for HireQuest was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.16 on $7.62 million in revenues for the coming quarter and $0.52 on $27.93 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Staffing Firms is currently in the top 29% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. RCM Technologies, Inc. (RCMT), another stock in the same industry, has yet to report results for the quarter ended June 2026. This company is expected to post quarterly earnings of $0.54 per share in its upcoming report, which represents a year-over-year change of -21.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. RCM Technologies, Inc.'s revenues are expected to be $80.67 million, up 3.2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report HireQuest, Inc. (HQI) : Free Stock Analysis Report RCM Technologies, Inc. (RCMT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

GOOSE CREEK, S.C., Aug. 10, 2026 /PRNewswire/ -- HireQuest (Nasdaq: HQI), a national franchisor of on-demand staffing and direct-hire recruiting services, today reported financial results for the second quarter ended June 30, 2026. Rick Hermanns, HireQuest's President and Chief Executive Officer, commented, "Our second quarter results were underscored by a stabilizing job market and recovering demand environment for temporary staffing services. We generated year-over-year revenue growth and significantly enhanced profitability compared with the second quarter of 2025. "Looking ahead, we believe our franchisees are well positioned to capture demand as market conditions improve, and employers prioritize access to flexible, skilled labor. We remain confident in our long-term strategy and our ability to deliver consistently profitable results and enhanced value for our shareholders," Mr. Hermanns concluded. Second Quarter 2026 Review Franchise royalties in the second quarter of 2026 were $7.6 million compared to $7.3 million in the prior-year period, an increase of 4.1%. Service revenue was $513,000 compared to $354,000 in the prior-year period. The second quarter of 2025 included approximately $620,000 in franchise royalties and $70,000 in service revenue related to the divestiture of certain assets and liabilities associated with the permanent placement franchisee base of HQ MRI Corporation on January 1, 2026 (the "MRINetwork Assets Divestiture"). Pro forma for the MRINetwork Assets Divestiture, franchise royalties increased 13.8% in the second quarter of 2026. Total revenue in the second quarter of 2026 was $8.1 million compared to $7.6 million in the prior year period, an increase of 6.0%. Pro forma for the MRINetwork Assets Divestiture, total revenue increased 16.6% in the second quarter of 2026. SG&A expenses in the second quarter of 2026 were $4.0 million compared to $5.9 million in the second quarter of 2025, a decrease of 31.9%. Workers' compensation expense was approximately $39,000 in the second quarter of 2026 compared to approximately $127,000 in the prior-year period. The second quarter of 2025 included approximately $633,000 in SG&A expenses related to the MRINetwork Assets Divestiture. Depreciation and amortization in the second quarter of 2026 was approximately $762,000, compared to $734,000 in the second quarter of 2025. Interest and other financing expense in the second quarter of 2026 was approximately $30,000 compared to $71,000 for the second quarter of 2025. Interest and other financing expense will fluctuate as the Company utilizes the line of credit for acquisitions or other short-term liquidity needs. Net income in the second quarter of 2026 was $2.7 million or $0.19 per diluted share, compared to a net income of $1.1 million, or $0.08 per diluted share, in the second quarter of 2025. Adjusted net income for the second quarter of 2026 was $3.2 million, or $0.23 per diluted share compared to adjusted net income of $2.1 million, or $0.15 per diluted share, in the second quarter of 2025. Adjusted EBITDA for the second quarter of 2026 was $4.6 million compared to $3.3 million in the second quarter of 2025. System-wide sales for the second quarter of 2026 were $117.8 million compared to $125.9 million for the second quarter of 2025. The decrease was primarily related to $17.7 million in system-wide sales related to the MRINetwork Assets Divestiture. Pro forma for the MRINetwork Assets Divestiture, system-wide sales increased 6.9% in the second quarter of 2026. Year-To-Date 2026 Review Franchise royalties for the six months ended June 30, 2026 were $13.6 million compared to $14.2 million for the same period in 2025, a decrease of 4.2%. Service revenue was $975,000 compared to $866,000 in the prior-year period. The six months ended June 30, 2026 included $1.1 million in franchise royalties and $144,000 in service revenue related to the MRINetwork Assets Divestiture. Pro forma for the MRINetwork Assets Divestiture, franchise royalties increased 4.0% for the period. Total revenue was $14.6 million compared to $15.1 million in the same year-ago period, a decrease of 3.2%. Pro forma for the MRINetwork Assets Divestiture, total revenue increased 5.6% for the period. SG&A expenses in the first six months of 2026 were $8.3 million compared to $11.1 million for the same period of 2025, a decrease of 25.7%. Workers' compensation expense was approximately $78,000 in the for the first six months ended June 30, 2026 compared to approximately $155,000 in the prior-year period. The six months ended June 30, 2026 included $1.3 million in SG&A expenses related to the MRINetwork Assets Divestiture. Depreciation and amortization in the first six months of 2026 was approximately $1.5 million, consistent with $1.5 million in the first six months of 2025. Interest and other financing for the six months ended June 30, 2026 was approximately $38,000 compared to $214,000 in the prior year period. Interest and other financing expense will fluctuate as the Company utilizes the line of credit for acquisitions or other short-term liquidity needs. Net income in the year-to-date period for 2026 was $4.3 million or $0.31 per diluted share, compared to a net income of $2.4 million, or $0.17 per diluted share, in the same year-ago period. Adjusted net income for the six-month period was $5.1 million, or $0.37 per diluted share compared to adjusted net income of $3.9 million, or $0.28 per diluted share, in the first six months of 2025. Adjusted EBITDA for the six months ended June 30, 2026 was $7.3 million compared to $6.1 million in the same prior-year period. System-wide sales for the first six months of 2026 were $220.4 million compared to $244.3 million in the same period of 2025. The decrease was primarily related to $33.7 million in system-wide sales related to the MRINetwork Assets Divestiture. Pro forma for the MRINetwork Assets Divestiture, system-wide sales increased 3.6% for the period. Balance Sheet and Capital Structure Cash was $1.6 million as of June 30, 2026, compared to $3.9 million as of December 31, 2025. Total assets were $93.4 million as of June 30, 2026, compared to $88.2 million as of December 31, 2025. Total liabilities were $24.5 million as of June 30, 2026, compared to $19.9 million as of December 31, 2025. Working capital as of June 30, 2026, was $35.1 million compared to $33.0 million as of December 31, 2025. As of June 30, 2026, assuming continued covenant compliance, availability under the line of credit was approximately $41.0 million based on eligible collateral, less letter of credit reserves, bank product reserves, and current advances. On June 15, 2026, the Company paid a quarterly cash dividend of $0.06 per share of common stock to shareholders of record as of June 1, 2026. The Company intends to pay a $0.06 cash dividend on a quarterly basis, but the declaration of any dividend and the exact amount each quarter will be based on its business results and financial position and is subject to board of directors' discretion. Conference Call HireQuest will hold a conference call to discuss its financial results. Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. The conference call will be broadcast live and available for replay at https://www.webcaster5.com/Webcast/Page/2359/54263 and via the investor relations section of HireQuest's website at https://hirequest.com/. A replay of the conference call will be available through Monday, August 24, 2026. About HireQuest HireQuest is a franchisor of staffing solutions with a footprint across the U.S. and international markets. Through its primary divisions - HireQuest Direct, HireQuest Health, Snelling, TradeCorp and DriverQuest - the company delivers temporary, direct-hire, and contract workforce solutions across a wide range of industries, including construction, light industrial, healthcare, finance, manufacturing, hospitality, logistics and more. From on-demand staffing to direct hire recruiting, HireQuest's divisions work together to provide workforce solutions that help businesses grow and create meaningful opportunities for the communities we serve. For more information, visit www.hirequest.com Important Cautions Regarding Forward-Looking Statements This news release includes and our directors and officers may make certain estimates and other forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act, and Section 21E of the Exchange Act, including, among others, statements with respect to future revenue, franchise sales, system-wide sales, net income and Adjusted EBITDA (a non-GAAP Financial Measure); operating results; dividends and shareholder returns; anticipated benefits and synergies of any proposed transaction and future opportunities, including statements regarding value, profitability or growth prospects, cost synergies of any merger or acquisitions including those we have completed in 2023 and 2024; intended office openings or closings; expectations of the effect on our financial condition of claims and litigation; strategies for customer retention and growth; strategies for risk management; and all other statements that are not purely historical and that may constitute statements of future expectations. Forward-looking statements can be identified by words such as: "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will," and similar references to future periods. While we believe these statements are accurate, forward-looking statements are not historical facts and are inherently uncertain. They are based only on our current beliefs, expectations, and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy, and other future conditions. We cannot assure you that these expectations will materialize, and our actual results may be significantly different. Therefore, you should not place undue reliance on these forward-looking statements. Important factors that may cause actual results to differ materially from those contemplated in any forward-looking statements made by us include the following: the level of demand in and financial performance of the temporary staffing and permanent placement industry; the financial performance of our franchisees; our franchisees' and our customers' ability to navigate successfully the challenges posed by instability in the financial and capital markets and the overall economic environment including the impact of increases in the price of oil and gas and any potential recession; changes in customer demand; the extent to which we are successful in gaining new long-term relationships with customers or retaining existing ones, and the level of service failures that could lead customers to use competitors' services; workers' compensation expenses that fluctuate from period to period based on the mix of classifications, the level of payroll, recent claims resolution, and cumulative experience; significant investigative or legal proceedings including, without limitation, those brought about by the existing regulatory environment or changes in the regulations governing the temporary staffing and permanent placement industry and those arising from the action or inaction of our franchisees and temporary employees; strategic actions, including acquisitions and dispositions and our success in integrating acquired businesses including, without limitation, successful integration following the acquisitions of Ready Temporary Staffing, TEC Staffing Services, MRI Network, Snelling Staffing, LINK, Recruit Media, Dental Power, Temporary Alternatives, Inc., and subsequent or smaller acquisitions; the possibility that any strategic target will not agree to consummate a transaction or that any such transaction is consummated on different terms than currently anticipated; the possibility that conditions to the completion of a proposed transaction, including the receipt of any required shareholder approvals and any required regulatory approvals, will not be met; the possibility that we may be unable to achieve expected synergies and operating efficiencies within an expected time frame or at all and to successfully integrate any acquired operations with ours; the possibility that such integration may be more difficult, time-consuming, or costly than expected, or that operating costs, customer loss and business disruption (including, without limitation, difficulties in maintaining relationships with employees, customers, or suppliers) may be greater than expected following a proposed transaction or the public announcement of a proposed transaction; disruptions to our technology network including computer systems and software whether resulting from a cyber-attack or otherwise; natural events such as pandemics, severe weather, fires, floods, and earthquakes, or man-made or other disruptions of our operating systems or the economy including by war or political turmoil; and the factors discussed in the "Risk Factors" section and elsewhere in our Annual Report on Form 10-K filed with the SEC. Any forward-looking statement made by us in this news release is based only on information currently available to us and speaks only as of the date on which it is made. The Company disclaims any obligation to update or revise any forward-looking statement, whether written or oral, that may be made from time to time, based on the occurrence of future events, the receipt of new information, or otherwise, except as required by law. Non-U.S. GAAP Financial Measures This document contains supplemental financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). Management uses these non-U.S. GAAP measures in its analysis of the Company's performance. These measures should not be considered a substitute for U.S. GAAP basis measures nor should they be viewed as a substitute for operating results determined in accordance with U.S. GAAP. Management believes the presentation of non-U.S. GAAP financial measures that exclude the impact of specified items provide useful supplemental information that is essential to a proper understanding of the Company's financial condition and results. Non-U.S. GAAP measures are not formally defined under U.S. GAAP, and other entities may use calculation methods that differ from those used by us. As a complement to U.S. GAAP financial measures, our management believes these non-U.S. GAAP financial measures assist investors in comparing the financial condition and results of operations of financial institutions due to the industry prevalence of such non-U.S. GAAP measures. See the tables below for a reconciliation of these non-U.S. GAAP measures to the most directly comparable U.S. GAAP financial measures. Company Contact: HireQuestDavid Hartley, Chief Financial Officer(800) 835-6755Email: [email protected] Investor Relations Contact:IMS Investor RelationsJohn Nesbett/Jennifer Belodeau(203) 972-9200Email: [email protected] View original content to download multimedia:https://www.prnewswire.com/news-releases/hirequest-reports-financial-results-for-second-quarter-2026-302847469.html

Interested in HireQuest, Inc.? Here are five stocks we like better. Second-quarter revenue rose 6% to $8.1 million, or 16.6% on a pro forma basis excluding divested MRINetwork assets. System-wide sales increased 6.9% pro forma, indicating improving underlying demand for temporary staffing. Profitability improved sharply: net income more than doubled to $2.7 million, adjusted EBITDA increased to $4.6 million from $3.3 million, and lower SG&A and workers’ compensation costs provided significant operating leverage. Management said demand strengthened through the quarter and remained at that higher growth rate during the first six weeks of Q3, supported by manufacturing, reshoring, immigration-related demand and national accounts. HireQuest ended June with no debt, $1.6 million in cash and $41 million of credit-facility availability, while maintaining its $0.06 quarterly dividend. HireQuest (NASDAQ:HQI) reported second-quarter revenue growth and sharply higher profitability as management said demand for temporary staffing services improved during the period, particularly in the latter half of the quarter. Chief Executive Officer Rick Hermanns said the company began seeing more consistent demand and favorable weekly year-over-year comparisons in the second half of the first quarter, with those trends strengthening in the second quarter. He characterized the market as stabilizing after more than two years of uncertainty, while noting that activity remains below prior levels. → MarketBeat Week in Review – 08/03 - 08/07 “The latter part of the second quarter was better than the start,” Hermanns said. In response to an analyst question, he said the company started the quarter with year-over-year growth of roughly 2% to 4% in its ongoing operations and ended it with growth of approximately 12% to 13% in some weeks. Total second-quarter revenue was $8.1 million, up 6% from $7.6 million a year earlier. Chief Financial Officer David Hartley said the prior-year period included $690,000 of revenue from MRINetwork assets that HireQuest divested at the beginning of 2026. On a pro forma basis excluding those divested assets, revenue increased 16.6%. → Quantum Earnings Week: Winners and Losers Are Finally Emerging Franchise royalties, the company’s primary revenue source, rose 4.1% to $7.6 million. On a pro forma basis, franchise royalties increased 13.8%, Hartley said. System-wide sales, which include sales at all offices and are not recognized as HireQuest revenue, were $117.8 million, compared with $125.9 million in the second quarter of 2025. However, the divested MRINetwork assets accounted for about $17.7 million of system-wide sales in the prior-year quarter. Excluding those assets, system-wide sales grew 6.9% on a pro forma basis. → Take-Two’s Q1 Results Leave GTA 6 Bulls Stuck in the Fog of War Service revenue increased to $513,000 from $354,000 in the prior-year period. Net income after tax more than doubled to $2.7 million, or $0.19 per diluted share, from $1.1 million, or $0.08 per diluted share, a year earlier. Adjusted net income, a non-GAAP measure, was $3.2 million, or $0.23 per diluted share, compared with $2.1 million, or $0.15 per diluted share, in the prior-year quarter. Adjusted EBITDA rose to $4.6 million from $3.3 million. Selling, general and administrative expense declined to $4 million from $5.9 million. Workers’ compensation expense fell to $39,000 from $127,000. Core SG&A, excluding workers’ compensation and non-recurring operating expenses, was $3.8 million, down from $4.7 million. Hartley said the prior-year quarter included approximately $633,000 of SG&A expense tied to the MRINetwork assets that have since been divested. Hermanns attributed the company’s growth to three factors: immigration policies enacted at the beginning of 2025, increased manufacturing labor demand, and returns from investments in its national accounts program. He said Snelling franchisees increased their top-line sales by nearly 15% during the quarter. Management also cited a return of operating leverage as revenue increased. Hermanns said the lower expense base reflected economies of scale after a prolonged weak staffing market, as well as some additional cost reductions following the MRINetwork divestiture. He also noted that elevated legal fees in the second quarter of 2025 contributed to the favorable year-over-year expense comparison. On the national accounts effort, Hermanns said HireQuest has pursued larger projects associated with data centers and factory reshoring, which can require a more sophisticated sales process. The company has also worked more closely with franchisees to ensure prospective opportunities are pursued, he said. HireQuest has introduced an app intended to support electronic recruiting in markets where it may not have a local branch. Hermanns cited an upcoming short-term project in upstate New York expected to require about 100 workers per day for roughly six weeks, with franchisees outside that market helping to fill the positions. While data centers have not been as meaningful a driver as reshoring, Hermanns said employers generally are returning to temporary staffing. He said the company has seen particularly strong performance in Texas, while growth has become more geographically diverse than in recent years. He also said tariff-related uncertainty that affected employer decisions last year has become more “baked into” business decisions. Hermanns said HireQuest had maintained the growth rate seen in the latter half of the second quarter through the first six weeks of the third quarter. He did not provide formal guidance and said the company’s future remains influenced by broader economic conditions and immigration trends. Still, he said the company has a growing national accounts pipeline and sees improving conditions across the staffing industry. “With our visibility today, we believe that we’re in a stronger place to deliver positive results through the balance of 2026,” Hermanns said. As of June 30, HireQuest had total assets of $93.4 million, compared with $88.2 million at year-end 2025. It reported $1.6 million in cash, $48.9 million in net accounts receivable and working capital of $35.1 million. The company had $41 million of availability under its credit facility, assuming continued covenant compliance, and said it had no debt. HireQuest paid a quarterly dividend of $0.06 per common share on June 15 to shareholders of record as of June 1. Hartley said the company expects to continue paying a quarterly dividend, subject to board discretion. HireQuest, Inc is a publicly traded holding company that provides equipment rental and workforce solutions across North America through two primary operating subsidiaries. Its Coast Equipment Rentals division offers a broad range of support equipment—such as pumps, trench safety systems, power and HVAC units, air compressors, light towers and generators—to the construction, industrial, municipal and environmental markets. Coast Equipment Rentals operates more than 135 branch locations in 36 U.S. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "HireQuest Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Kelly Services (KELYA) came out with quarterly earnings of $0.37 per share, beating the Zacks Consensus Estimate of $0.24 per share. This compares to earnings of $0.54 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +54.17%. A quarter ago, it was expected that this staffing company would post earnings of $0.07 per share when it actually produced earnings of $0.03, delivering a surprise of -57.14%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Kelly Services, which belongs to the Zacks Staffing Firms industry, posted revenues of $1.04 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.87%. This compares to year-ago revenues of $1.1 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Kelly Services shares have added about 73% since the beginning of the year versus the S&P 500's gain of 12.8%. While Kelly Services has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Kelly Services was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.10 on $929.33 million in revenues for the coming quarter and $1.01 on $4.06 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Staffing Firms is currently in the top 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. HireQuest, Inc. (HQI), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 10. This company is expected to post quarterly earnings of $0.13 per share in its upcoming report, which represents a year-over-year change of -13.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. HireQuest, Inc.'s revenues are expected to be $6.86 million, down 10.2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Kelly Services, Inc. (KELYA) : Free Stock Analysis Report HireQuest, Inc. (HQI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider HireQuest, Inc. (HQI). This company, which is in the Zacks Staffing Firms industry, shows potential for another earnings beat. This company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 38.26%. For the most recent quarter, HireQuest was expected to post earnings of $0.11 per share, but it reported $0.13 per share instead, representing a surprise of 18.18%. For the previous quarter, the consensus estimate was $0.12 per share, while it actually produced $0.19 per share, a surprise of 58.33%. With this earnings history in mind, recent estimates have been moving higher for HireQuest. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank. Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. HireQuest currently has an Earnings ESP of +7.69%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on August 10, 2026. With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss. Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate. Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report HireQuest, Inc. (HQI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

GOOSE CREEK, S.C., July 27, 2026 /PRNewswire/ -- HireQuest (Nasdaq: HQI), a national franchisor of on-demand staffing and direct-hire recruiting services, today announced that it will hold a conference call on Monday, August 10, 2026, at 4:30 p.m. Eastern Time to discuss its financial results for the second quarter ended June 30, 2026. Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. The conference call will be broadcast live and available for replay at https://www.webcaster5.com/Webcast/Page/2359/54263 and via the investor relations section of HireQuest's website at https://hirequest.com/. A replay of the conference call will be available through Monday, August 24, 2026. About HireQuest HireQuest is a franchisor of staffing solutions with a footprint across the U.S. and international markets. Through its primary divisions - HireQuest Direct, HireQuest Health, Snelling, TradeCorp and DriverQuest - the company delivers temporary, direct-hire, and contract workforce solutions across a wide range of industries, including construction, light industrial, healthcare, finance, manufacturing, hospitality, logistics and more. From on-demand staffing to direct hire recruiting, HireQuest's divisions work together to provide workforce solutions that help businesses grow and create meaningful opportunities for the communities we serve. For more information, visit www.hirequest.com Important Cautions Regarding Forward-Looking Statements This release contains certain forward-looking statements which reflect management's expectations regarding future events and operating performance and speaks only as of the date hereof. All statements, other than statements of historical or current fact, are statements that could be deemed forward-looking statements, including, without limitation, statements relating to our declaration or payment of quarterly dividends. Forward-looking statements are based on the current beliefs, assumptions, and expectations of management and current market conditions. There can be no assurance that future dividends will be declared, and the payment of this quarterly dividend is expressly conditioned on the Board not revoking the dividend before the payment date. The declaration of future dividends is subject to approval of the Board of Directors each quarter after its review of the Company's financial performance and cash needs. Declaration or payment of future dividends is also subject to various risks and uncertainties, including: the Company's cash flow and cash needs; compliance with applicable law; restrictions on the payment of dividends under existing or future financing arrangements; changes in tax laws relating to corporate dividends; the deterioration in the Company's financial condition or results; and those risks, uncertainties, and other factors identified from time to time in the Company's filings with the Securities and Exchange Commission. These forward-looking statements involve a number of risks and uncertainties. Other factors that could cause actual results to differ materially from our expectations are detailed in the Company's filings with the Securities and Exchange Commission, such as its annual and quarterly reports and current reports on Form 8-K. The Company undertakes no obligations to update such forward-looking statements, except as may otherwise be required by law. Company Contact:HireQuestDavid Hartley, Chief Financial Officer(800) 835-6755Email: [email protected] Investor Relations Contact:IMS Investor RelationsJohn Nesbett/Jennifer Belodeau(203) 972-9200Email: [email protected] View original content to download multimedia:https://www.prnewswire.com/news-releases/hirequest-to-hold-second-quarter-2026-financial-results-conference-call-on-monday-august-10-2026-302834398.html