Staffing franchisor HireQuest Inc. (NASDAQ: HQI) reported second-quarter revenue rose 12.4% year over year to $9.0 million. The Goose Creek, South Carolina-based company also reported franchise royalties increased 20.5% to $8.7 million.

Systemwide sales for the second quarter — total sales generated by franchisees — increased to $157.0 million from $120.0 million for the same period in 2022. The increase is primarily related to the December 2022 acquisition of MRI Network, which brought an additional franchise offering for executive search services with more than 200 franchise offices in the US and internationally.

“We are encouraged by our performance this quarter in light of the current economic environment; these results reinforce our confidence in the HireQuest business model, which includes over 400 franchisee-owned offices,” President and CEO Rick Hermanns said in a press release.

The company noted selling, general and administrative expenses increased 74.5% from the prior-year period to $5.6 million, primarily related to expenses from the MRI acquisition and workers’ compensation.

“This was a large acquisition, and we incurred certain expenses related to the purchase that we expect will come down over the balance of the year as we drive synergies,” Hermanns said. “We are increasingly well positioned with a diverse mix of staffing options and a strong presence across key geographic regions, and we look forward to continuing to build our position as a leading provider of temporary workforce hiring and professional recruiting solutions.”

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Share price

Shares in HireQuest were down 14.49% to $20.89 as of 11:49 a.m. Eastern time; they were 67.13% above their 52-week low, according to FT.com.