$HQI

HireQuest, Inc.

CIK:0001140102|SEC Filings

Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenue	$ 8,099	$ 7,638	$ 14,622	$ 15,111
Selling, general and administrative expenses	3,994	5,861	8,263	11,117
Depreciation and amortization	762	734	1,540	1,469
Income from operations	3,343	1,043	4,819	2,525
Other miscellaneous income	5	28	22	159
Interest income	118	129	218	262
Gain on divestiture	0	0	248	0
Interest and other financing expense	(30)	(71)	(38)	(214)
Net income before income taxes	3,436	1,129	5,269	2,732
Provision for income taxes	684	56	948	224
Net income from continuing operations	2,752	1,073	4,321	2,508
Loss from discontinued operations, net of tax	(60)	(13)	(69)	(85)
Net income	$ 2,692	$ 1,060	$ 4,252	$ 2,423
Basic earnings (loss) per share
Continuing operations (in dollars per share)	$ 0.2	$ 0.08	$ 0.31	$ 0.18
Discontinued operations (in dollars per share)	0	0	0	(0.01)
Total (in dollars per share)	0.2	0.08	0.31	0.17
Diluted earnings (loss) per share
Continuing operations (in dollars per share)	0.2	0.08	0.31	0.18
Discontinued operations (in dollars per share)	(0.01)	0	0	(0.01)
Total (in dollars per share)	$ 0.19	$ 0.08	$ 0.31	$ 0.17
Weighted average shares outstanding
Basic (in shares)	13,786	13,938	13,829	13,932
Diluted (in shares)	13,810	13,990	13,845	14,001
Royalty [Member]
Revenue	$ 7,586	$ 7,284	$ 13,647	$ 14,245
Service [Member]
Revenue	$ 513	$ 354	$ 975	$ 866

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities
Net income	$ 4,252	$ 2,423
Loss from discontinued operations	69	85
Net income from continuing operations	(4,321)	(2,508)
Adjustments to reconcile net income to net cash provided by operations:
Depreciation and amortization	1,540	1,469
Non-cash interest	13	9
Provision for credit losses	230	150
Stock based compensation	360	479
Deferred taxes	342	289
Gain on divestiture	(248)	0
Gain on disposition of intangible assets	0	(103)
Changes in operating assets and liabilities:
Accounts receivable	(9,636)	(484)
Prepaid expenses, deposits, and other assets	132	(1,114)
Prepaid workers' compensation	36	(275)
Accounts payable	185	96
Risk management incentive program liability	541	695
Other current liabilities	(171)	(41)
Accrued payroll, benefits and payroll taxes	293	535
Due to franchisees	4,598	675
Workers' compensation claim payment deposit	(145)	(125)
Workers' compensation claims liability	(472)	(267)
Net cash provided by operating activities - continuing operations	1,919	4,496
Net cash used in operating activities - discontinued operations	(69)	(85)
Net cash provided by operating activities	1,850	4,411
Cash flows from investing activities
Purchase of property and equipment	(7)	(31)
Proceeds from payments on notes receivable	754	673
Cash issued for notes receivable	(399)	(304)
Capital contribution to unconsolidated affiliate	(192)	0
Purchase of deferred compensation plan investments	(145)	0
Net change in franchisee deposits	(39)	(25)
Net cash (used in) provided by investing activities	(28)	313
Cash flows from financing activities
Payments on term loan payable	0	(88)
Net payments to revolving line of credit	0	(2,496)
Repurchase of shares	(2,427)	0
Proceeds from the exercise of stock options	22	0
Net cash used in financing activities	(4,077)	(4,268)
Net (decrease) increase in cash	(2,255)	456
Cash, beginning of period	3,895	2,219
Cash, end of period	1,640	2,675
Supplemental disclosure of non-cash investing and financing activities
Notes receivable issued for the sale of intangible assets	0	950
Contribution of franchise agreements and net assets for investment in unconsolidated affiliate	195	0
Supplemental disclosure of cash flow information
Interest paid	25	202
Income taxes paid, net of refunds	384	512
Line of Credit [Member] \| Revolving Credit Facility [Member]
Cash flows from financing activities
Payment of dividends	$ (1,672)	$ (1,684)

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets
Cash	$ 1,640	$ 3,895
Accounts receivable, net of allowance of $350 thousand and $288 thousand, respectively	48,856	39,281
Notes receivable	1,001	1,073
Prepaid expenses, deposits, and other assets	3,026	3,249
Prepaid workers' compensation	812	848
Total current assets	55,335	48,346
Property and equipment, net	3,964	4,050
Workers’ compensation claims payment deposit	1,273	1,128
Franchise agreements, net	16,336	17,242
Other intangible assets, net	6,439	6,980
Goodwill	1,633	1,633
Investment in unconsolidated affiliate	635	0
Deferred tax asset	1,526	1,868
Other assets	410	279
Notes receivable, net of current portion and allowance of $736 thousand and $1.2 million, respectively	5,148	5,599
Intangible asset held for sale	672	1,102
Total assets	93,371	88,227
Current liabilities
Accounts payable	377	192
Other current liabilities	2,015	2,186
Accrued payroll, benefits, and payroll taxes	1,767	1,800
Due to franchisees	11,602	7,004
Risk management incentive program liability	1,778	1,237
Workers' compensation claims liability	2,689	2,929
Total current liabilities	20,228	15,348
Workers' compensation claims liability, net of current portion	2,000	2,232
Franchisee deposits	2,287	2,326
Total liabilities	24,515	19,906
Commitments and contingencies (Note 11)
Stockholders' equity
Preferred stock - $0.001 par value, 1,000,000 shares authorized; none issued	0	0
Common stock - $0.001 par value, 30,000,000 shares authorized; 13,890,418 and 14,079,692 shares issued, respectively	14	14
Additional paid-in capital	37,604	37,222
Treasury stock, at cost - 0 and 48,849 shares, respectively	0	(146)
Retained earnings	31,238	31,231
Total stockholders' equity	68,856	68,321
Total liabilities and stockholders' equity	$ 93,371	$ 88,227