D

HireQuest, Inc. — Earnings Quality Grade D

HQI · Industrials

Significant concerns

Revenue
$31M
2025
Net Income
$6M
2025
Gross Margin
Free Cash Flow
$12M
01

Screening Summary

9
Passed
2
Watch
2
Failed
M-Score

Management Signals

No recent CEO, CFO, board, or accounting leadership signals found in SEC 8-K filings.
02

Financial Trends

Revenue & Net Income ($B)

Margins (%)

03

18-Point Screening

01

Revenue Quality

A1DSO Change

DSO surged by 21 days (447 → 468)

Small-cap context: DSO swings on a small revenue base are more often quarterly customer-mix effects than red flags.

A2AR vs Revenue Growth

AR outpaced revenue for 2 consecutive years

A3Revenue vs CFFO

Revenue -11.4%, CFFO 0.1%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

No material inventory

B2CapEx vs Revenue

CapEx growth -89.0% vs revenue -11.4%. Normal

B3SG&A Ratio

Insufficient data

B4Gross Margin

Insufficient data

03

Cash Flow Quality

C1CFFO vs Net Income

CFFO/NI = 1.90. Profits backed by cash

C2Free Cash Flow

FCF $0.0B, FCF/NI = 1.89

C3Accruals Ratio

Accruals ratio = -6.5%. Low accruals

C4Cash vs Debt

Insufficient data

04

Balance Sheet Health

!
D1Goodwill + Intangibles

Goodwill+Intangibles $0.0B = 38% of equity

D2Leverage

Leverage manageable

!
D3Soft Asset Growth

Other assets grew 45.7% vs revenue -11.4%

D4Asset Impairment

No write-off data

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions positive

E2Goodwill Surge

Goodwill+Intangibles change -13% YoY. Normal

06

Manipulation Score

F1Beneish M-Score

Insufficient data

Portfolio monitoring

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05

Altman Z-Score

7.75
Safe Zone
0 Distress1.102.605.0+ Safe
0.374
Liquidity
0.354
Cumulative profit
0.0795
Operating efficiency
3.4322
Leverage

Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25