HireQuest, Inc. (NASDAQ: HQI) announced that its Board of Directors has authorized a $20 million share‑repurchase program, to be executed under a 10b5‑1 plan through open‑market purchases, private negotiations, block trades, or other permissible methods. The program will expire twelve months after it begins, giving the company flexibility to return capital to shareholders while preserving liquidity for future opportunities.
The program represents roughly 18.5% of HireQuest’s approximately $108 million market capitalization and comes as the company’s stock trades near its 52‑week low of $7.42, after a 45% decline over the past year. The sizable buyback signals management’s confidence that the shares are undervalued and that the company can generate sufficient cash flow to fund the program without compromising operational needs.
HireQuest’s most recent quarterly results, for the third quarter of 2025, showed net income of $2.3 million and earnings per share of $0.16, beating consensus estimates of $0.14 by $0.02 or 14.3%. Revenue for the quarter was $8.5 million, a 9.8% year‑over‑year decline. The earnings beat was driven by disciplined cost management and efficient operations that offset the revenue decline, allowing the company to maintain profitability despite a weaker top line.
CEO Rick Hermanns said the share‑repurchase program is “the best and most efficient use of our capital at this time” and that it reflects the board’s confidence in HireQuest’s long‑term strategy. He added that the program will help reinforce shareholder value while keeping the company well‑positioned for future opportunities.
Investors responded positively to the announcement, citing the combination of a substantial buyback and an earnings beat as evidence of strong management execution and confidence in the company’s valuation. The market reaction was driven primarily by the buyback’s implication that the stock is undervalued and by the earnings beat, which underscored the company’s ability to generate cash even amid revenue pressure.
The share‑repurchase program, coupled with the earnings beat, positions HireQuest to potentially improve earnings per share and enhance shareholder returns. By reducing the share count, the program can lift EPS and signal confidence in the company’s future cash‑flow generation, while the retained liquidity provides a buffer for strategic investments or opportunistic acquisitions.
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