Short answer
HireQuest, Inc. (HQI) filed its fiscal 2024 10-K annual report with the SEC on Mar 27, 2025. It reported revenue of $35M (−8.7% year over year) and net income of $4M.
- Top risk flagged: Regulatory risk Patient Protection and Affordable Care Act compliance and insurance availability uncertainty impacting worker health coverage costs
FY2024 key financial metrics · XBRL
- Revenue
- $35M
- −8.7% YoY
- Net income
- $4M
- −40.1% YoY
- Operating margin
- 12.6%
- −15.5 pp YoY
- EPS (diluted)
- $0.26
- −42.2% YoY
- ROE
- 5.7%
- −4.1 pp YoY
- Operating cash flow
- $12M
- +13.4% YoY
Source: XBRL data from the HireQuest, Inc. (HQI) FY2024 10-K on SEC EDGAR. USD.
HireQuest, Inc. FY2024 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core business model: Nationwide franchisor of temporary staffing and permanent placement services across light industrial, blue-collar, and executive recruitment segments
- New emphasis: Expansion into executive search and permanent placement with 2022 MRI Network acquisition adding 210 franchises and $50M temporary/contract billings
- Strategic shift: Increased focus on franchise expansion incentives and leveraging acquisitions to diversify geographically and by staffing segment
- Quantitative highlight: Revenue $34.6M in 2024 from royalties; system-wide sales $563.6M; approx. 425 franchisee offices in 44 states plus 13 countries
- Noteworthy fact: Closed 32 offices in 2024 but added 30 others, maintaining footprint; 35 “Worlds Franchisees” operated 69 offices indicating concentrated ownership subgroup
Management Discussion & Analysis
- Revenue $34.6M in 2024, down 8.7% YoY from $37.9M in 2023; system-wide sales declined 6.9% to $563.6M from $605.1M
- Operating margin 12.6% vs 28.1% YoY; income from operations fell to $4.4M from $10.6M including $6.0M goodwill/intangible impairment charge
- Best segment HireQuest Direct: sales $235.3M; worst MRI segment with system-wide sales down 18.6% ($31M decline)
- Net cash from operations $12.3M; dividends $3.4M; revolving credit net paydown of $7.3M; capital expenditures included $1.7M acquisitions
- Management cautious due to staffing industry softness, expects liquidity from cash, credit line ($33.6M availability), and operations adequate for next 12 months
Risk Factors
- Regulatory risk Patient Protection and Affordable Care Act compliance and insurance availability uncertainty impacting worker health coverage costs
- Geopolitical threat Russian invasion of Ukraine and Middle East conflicts pressure inflation and supply chains, affecting industrial/manufacturing and construction labor demand
- Operational vulnerability Workers’ compensation insurance collateral requirements increased with business growth, reliant on Bank of America letter of credit
- Competitive risk Industry shifts to new technology and contingent workforce attitudes require costly system upgrades with uncertain ROI and management distraction
- Financial risk $6M goodwill impairment charge in 2024 with potential for further non-cash charges from capital structure or market changes
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