First-quarter revenue at staffing franchisor HireQuest (NASDAQ: HQI) fell 14.6% year over year to $8.4 million as the market remained difficult. The company foresees increased demand for temp staffing in the second and third quarters.

“Our results in the first quarter were in line with our expectations, and we delivered a solid performance given the economic headwinds that continue to affect the US staffing market while maintaining our investment levels in IT,” President and CEO Rick Hermanns said in a press release.

For now, the company is working to control what it can, which includes working to moderate SG&A expenses.

“The environment for staffing solutions is currently a difficult one, with many employers choosing to delay hiring changes and searches as they evaluate the economic landscape,” Hermanns said.

“We believe that we remain well positioned with our diverse group of solutions as employers become more comfortable adding headcount to their operations,” he continued. “We expect that demand for temporary staffing will increase in the second and third quarters related to normal seasonal factors, and we remain confident in our ability to continue driving profitable results for our shareholders with our proven and growing model of over 400 franchise-owned offices across the United States.”

Share price

Shares in HireQuest were down 5.53% to $12.21 as of 11:53 a.m. Eastern time today. They were 7.04% above their 52-week low.