The Motley Fool Team, The Motley Fool
3 min read
On its third quarter of 2026 earnings call, held on Nov. 12, 2026, HireQuest (NASDAQ:HQI) announced a 4% increase in third-quarter revenue to $8.8 million as demand for temporary staffing began recovering. The franchised staffing company operates an asset-light model that keeps corporate overhead low while generating stable royalty streams from independent operators. Three things management said stand out.
1. Sales Accelerate Into the High Teens Through Early November
Systemwide sales, which capture total sales generated across all franchise offices including discontinued locations, accelerated through the third quarter and into the fourth quarter as hiring demand rebounded across blue-collar commercial accounts.
Weekly systemwide sales have been up double digits year-over-year for the last couple of months, but we’ve seen that strength continue to build with systemwide sales in the high teens year-over-year through early November.
— Rick Hermanns, Chief Executive Officer
2. Core Operations Grew Double Digits After Stripping Out Asset Sales
Reported top-line figures were affected by prior asset sales. On a pro forma basis–adjusting historical results to reflect the divestiture of its MRI Network business–total revenue expanded significantly year over year.
The third quarter of 2025 included $540,000 of total revenue related to the MRI Network assets divestiture, so on a pro forma basis, total revenue increased 11.1% year-over-year.
— David Hartley, Chief Financial Officer
3. Mobile Technology Expands Geographic Reach Without New Branches
HireQuest deployed a new worker application that allows franchisees to recruit and staff large projects hundreds of miles outside their physical branch network, expanding market coverage without increasing real estate costs.
We developed a — basically a new app for our employees. And as a result, we’re able to take on projects that are — we can recruit far more effectively outside of our branch network.
— Rick Hermanns, Chief Executive Officer
Looking Ahead
Commercial staffing demand is picking up in key blue-collar verticals like logistics and factory automation, creating operational momentum across the franchise network. Management is leveraging national accounts and employee recruitment apps to capture market share while watching acquisition targets.
And now there’s a more positive outlook in the industry, which means now people are more willing to sell, and yet it’s still at reasonable numbers.
— Rick Hermanns, Chief Executive Officer
