HQI · HireQuest, Inc.

HireQuest’s Q1 2026 results reflect a deliberate portfolio simplification following the January 1, 2026 divestiture of MRINetwork assets, which accounted for approximately $500,000 in franchise royalties and $74,000 in service revenue in Q1 2025 — and $16.0 million in system-wide sales. Total revenue declined 12.7% year-over-year to $6.5 million, yet net income increased 14.3% to $1.6 million ($0.11 diluted EPS), supported by a 18.8% reduction in SG&A expenses — partly attributable to $700,000 in prior-year costs tied to the MRINetwork divestiture. Adjusted metrics remained stable: Adjusted net income held flat at $1.8 million ($0.13 diluted EPS), and Adjusted EBITDA dipped modestly to $2.7 million from $2.8 million, indicating underlying operational resilience. Management emphasized the strength of its debt-free balance sheet and disciplined capital allocation, evidenced by the continued $0.06 quarterly dividend and $1.0 million cash position as of March 31, 2026 — down from $3.9 million at year-end, likely reflecting seasonal working capital dynamics and dividend payment timing. The press release highlights confidence in the franchise model’s scalability amid a stabilizing job market, with no forward guidance provided beyond the stated intent to maintain quarterly dividends at the board’s discretion. Notably, the filing explicitly excludes Exhibit 99.1 from Section 18 liability, reinforcing its furnished (not filed) status under SEC rules.