HireQuest Inc (HQI) Stock Forecast & Price Target

HireQuest Inc. is projected to achieve an adjusted EBITDA margin of 46.5% in 2026, an increase from 46.0% in 2025, demonstrating solid margins amid growing staffing industry revenues, anticipated to rise by 2% year-over-year. The company's Q3/25 results indicate robust growth, with combined system-wide sales for its HireQuest Direct and Snelling brands increasing by 11.4% sequentially from Q2/25, surpassing the 5.8% increase observed in Q3/24, which reflects strong operational performance. Additionally, an improved adjusted EPS of $0.24 for Q3/25, up from $0.20 a year prior, along with beneficial adjustments to the workers’ compensation insurance policy, underlines the company's commitment to profitability and prudent expense management.

HireQuest Inc. has experienced a downward trend in key financial metrics, with Q3/25 adjusted EBITDA declining 5.6% year-over-year to $4.7 million, despite outperforming estimates. A significant drop in franchise royalty fees, which make up 95% of the company's revenue, fell by 9.8% year-over-year to $8.1 million, coupled with a notable 24.4% year-over-year decrease in system-wide sales from executive search and permanent placement services. Projections for 2026 indicate further revenue declines of 10.6% year-over-year, largely driven by the sustained negative demand environment impacting the staffing industry, which has persisted over the last ten quarters.