HireQuest (NASDAQ: HQI) third-quarter total revenue rose 1.6% year over year as employers remain cautious about hiring, the national staffing franchisor reported Nov. 7 after market close.

The company posted a net loss of $2.2 million for the quarter, which included a one-time non-cash impairment charge of $6.0 million related to industry and market conditions affecting the overall financial performance of MRINetwork, which HireQuest acquired in December 2022. MRINetwork provides executive, managerial and professional recruitment services.

<LINK TO acquired: HireQuest to acquire MRINetwork assets>

CEO Rick Hermanns noted that HireQuest saw sequential revenue growth of 8.5% compared to the second quarter of 2024.

“Our temporary staffing brands collectively grew year over year this quarter for the first time since the beginning of 2023,” Hermanns said in a press release. “That said, employers remained cautious in their hiring decisions during the third quarter, influenced by the presidential election as well as an unpredictable economic landscape.”

Systemwide sales for the third quarter of 2024 decreased 1.7% to $148.6 million.

Revenue from franchise royalties edged up 0.9% year over year in the third quarter, and service revenue rose 16.1%.

“As we close out the fiscal year, we believe that we’re beginning to enter a period of favorable comparisons related to lower operational costs, a stabilizing staffing market, and reduced impact of workers’ compensation expense on our business,” Hermanns said. “We’re optimistic that the market for both temporary and permanent staffing solutions is entering a more favorable economic environment, and we are ready to capitalize on the opportunities that become available to us as demand for staffing services strengthens.”

HireQuest – Q3 2024

Share Price

Shares in HireQuest were down 1.23% to $13.70 as of 10:49 a.m. Eastern time Nov. 8. They were 20.28% above their 52-week low.