📊 HQI Key Takeaways
Is HireQuest, Inc. (HQI) a Good Investment?
While HireQuest presents strong balance sheet metrics and low leverage, critical red flags undermine confidence in reported fundamentals. The impossible 123.4% gross margin indicates serious data quality issues, and the severe disconnect between $1.6M net income and $250K operating cash flow (only 15% conversion) suggests major earnings quality concerns or hidden working capital strain. The combination of weak cash generation, low cash reserves relative to liabilities, and modest 5.7% revenue growth does not justify the risk profile.
HireQuest's asset-light franchisor model delivers high margins and strong free cash flow, supported by low leverage and ample liquidity. While top-line growth is modest, operating discipline and leverage lifted profitability materially, providing capacity to invest and weather cycles. Sustaining current margins as labor markets normalize will determine durability of recent EPS gains.
Why Buy HireQuest, Inc. Stock? HQI Key Strengths
- Fortress balance sheet with 0.05x debt-to-equity ratio and 2.69x current ratio
- Strong interest coverage of 184.5x demonstrates minimal financial distress risk
- EPS growth of 73.1% YoY shows per-share improvement despite modest revenue growth
- Asset-light model with 20%+ operating and net margins
- Excellent cash generation (FCF margin ~39%) with minimal capex
- Pristine balance sheet (0.05x D/E, 3.15x current ratio, 20.5x interest coverage)
HQI Stock Risks: HireQuest, Inc. Investment Risks
- Gross margin of 123.4% is mathematically impossible, indicating severe data integrity or accounting anomalies
- Operating cash flow of only $250K versus $1.6M net income represents catastrophic 85% earnings leakage, signaling either non-cash accounting or severe working capital deterioration
- Cash position of $1.0M is dangerously low relative to $23.8M total liabilities and provides minimal operational cushion
- Revenue growth of only 5.7% YoY is weak for staffing services sector
- Disconnect between stated 23.9% net margin and actual ROE of 2.3% / ROA of 1.7% raises fundamental questions about asset efficiency
- Cyclical exposure to staffing demand and macro slowdowns
- Earnings jump may reflect one-time items or working capital tailwinds, risking reversion
- Modest revenue growth (+5.7% YoY) limits scale benefits if momentum fades
Key Metrics to Watch
- Operating cash flow trend and sustainability of cash conversion
- Gross margin normalization and verification of COGS accounting
- Working capital movements and cash balance trajectory
- Organic royalty/fee revenue growth and franchise count
- FCF-to-net-income conversion and working capital (DSO)
HireQuest, Inc. (HQI) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 3.8% FCF margin may limit capital allocation flexibility. Strong liquidity with a 2.69x current ratio provides a solid financial cushion.
HQI Profit Margin, ROE & Profitability Analysis
HQI vs Services Sector: How HireQuest, Inc. Compares
How HireQuest, Inc. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is HireQuest, Inc. Stock Overvalued? HQI Valuation Analysis 2026
Based on fundamental analysis, HireQuest, Inc. has mixed fundamental signals relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
HireQuest, Inc. Balance Sheet: HQI Debt, Cash & Liquidity
HQI Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: HireQuest, Inc.'s revenue has grown significantly by 52% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.26 reflects profitable operations.
HQI Revenue Growth, EPS Growth & YoY Performance
HQI Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $6.1M | $1.4M | $0.10 |
| Q3 2025 | $8.1M | $1.5M | $0.10 |
| Q2 2025 | $7.3M | $1.1M | $0.08 |
| Q1 2025 | $7.0M | $1.4M | $0.10 |
| Q3 2024 | $8.9M | $1.5M | $0.10 |
| Q2 2024 | $8.2M | $2.0M | $0.15 |
| Q1 2024 | $7.8M | $1.6M | $0.12 |
| Q3 2023 | $7.4M | $1.5M | $0.11 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
HireQuest, Inc. Dividends, Buybacks & Capital Allocation
HQI SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for HireQuest, Inc. (CIK: 0001140102)
📋 Recent SEC Filings
❓ Frequently Asked Questions about HQI
What is the AI rating for HQI?
HireQuest, Inc. (HQI) has a Combined AI Rating of HOLD from Claude (SELL) and ChatGPT (BUY) with 71% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are HQI's key strengths?
Claude: Fortress balance sheet with 0.05x debt-to-equity ratio and 2.69x current ratio. Strong interest coverage of 184.5x demonstrates minimal financial distress risk. ChatGPT: Asset-light model with 20%+ operating and net margins. Excellent cash generation (FCF margin ~39%) with minimal capex.
What are the risks of investing in HQI?
Claude: Gross margin of 123.4% is mathematically impossible, indicating severe data integrity or accounting anomalies. Operating cash flow of only $250K versus $1.6M net income represents catastrophic 85% earnings leakage, signaling either non-cash accounting or severe working capital deterioration. ChatGPT: Cyclical exposure to staffing demand and macro slowdowns. Earnings jump may reflect one-time items or working capital tailwinds, risking reversion.
What is HQI's revenue and growth?
HireQuest, Inc. reported revenue of $6.5M.
Does HQI pay dividends?
HireQuest, Inc. pays dividends, with $0.8M distributed to shareholders in the trailing twelve months.
Where can I find HQI SEC filings?
Official SEC filings for HireQuest, Inc. (CIK: 0001140102) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is HQI's EPS?
HireQuest, Inc. has a diluted EPS of $0.11.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is HQI a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, HireQuest, Inc. has a HOLD rating with 71% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is HQI stock overvalued or undervalued?
Valuation metrics for HQI: ROE of 2.3% (sector avg: 16%), net margin of 23.9% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy HQI stock in 2026?
Our dual AI analysis gives HireQuest, Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is HQI's free cash flow?
HireQuest, Inc.'s operating cash flow is $250.0K, with capital expenditures of N/A. FCF margin is 3.8%.
How does HQI compare to other Services stocks?
Vs Services sector averages: Net margin 23.9% (avg: 10%), ROE 2.3% (avg: 16%), current ratio 2.69 (avg: 1.5).