HireQuest Inc (HQI) Stock Forecast & Price Target

HireQuest Inc. benefits from a favorable trend in workers' compensation costs, attributed to the recent renegotiation and renewal of its insurance policy, which positions the company well for enhanced margins. The success of its franchise business model fosters competitive revenue growth, as franchisees are more incentivized to achieve market share gains compared to a company-owned branch model. In the third quarter of 2025, the company reported a notable 11.4% sequential increase in system-wide sales for its primary brands, underscored by an adjusted EPS of $0.24, surpassing both prior estimates and consensus expectations, which further supports a positive financial outlook.

HireQuest Inc. has experienced a notable decline in adjusted EBITDA, which fell by 5.6% year-over-year to $4.7 million in Q3/25, despite exceeding both the company's estimate and consensus expectations. The company’s primary revenue source, franchise royalty fees, decreased by 9.8% year-over-year to $8.1 million in the same quarter, reflecting a broader downturn in system-wide sales, particularly in executive search and permanent placement, which saw a substantial 24.4% decline. This continued weakening in revenue and persistent challenging demand dynamics in the staffing industry over the last 10 quarters contribute to a negative outlook for the company's stock.