HireQuest Q1 Revenue Misses Estimates, Falls 13% Due to Asset Divestiture
HQI sits 54% above its 52-week low of $7.38.
Summary
HireQuest reported a 13% year-over-year decline in Q1 revenue to $6.5 million, missing analyst consensus of $6.75 million. Adjusted EBITDA also fell short, coming in at $2.7 million against an expected $2.9 million. The company attributed the revenue decrease primarily to the divestiture of MRINetwork assets, which also contributed to a gain on divestiture and lower SG&A expenses, resulting in unchanged adjusted net income per share. This earnings report follows the company's recent declaration of a $0.06 quarterly dividend and initiation of a $10 million share buyback program on May 8, 2026. Despite the explanation for the revenue decline, the misses on key financial metrics against analyst expectations are material for a company of this size and could lead to negative investor sentiment. Traders will be watching for further details on the performance of the core staffing business and the impact of the divestiture on future growth.
At the time of this announcement, HQI was trading at $11.39 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $159.5M. The 52-week trading range was $7.38 to $12.48. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.