HireQuest, Inc.

Good afternoon, everyone, and thank you for participating in today's conference call to discuss HireQuest's financial results for the second quarter ended June 30th, 2025. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the call over to John Nesbitt of IMS Investor Relations. Please go ahead.

Thank you, and good afternoon. I'd like to welcome everyone to the call. Hosting the call today are HireQuest Chief Executive Officer Rick Hermans and Chief Financial Officer David Hartley. I'd like to take a moment to read the Safe Harbor Statement. This conference call contains forward-looking statements as defined within Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended. These forward-looking statements in terms such as anticipate, expect, intend, may, will, should, and other comparable terms involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. These statements include statements regarding the intent, belief, and current expectations of higher request and members of its management, as well as the assumptions in which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, including those described in higher request periodic reports filed with the SEC, and that actual results may differ materially from those contemplated by such forward-looking statements. Except as required by federal securities law, HireQuest undertakes no obligation to update or revise forward-looking statements to reflect change conditions. I would now like to turn the call over to CEO of HireQuest, Rick Hermans. Please go ahead, Rick.

Good afternoon, and thank you for joining our call today. Our second quarter performance unfolded much as we had expected, as we continued to face a challenging hiring environment that has persisted now for over two years. As we've mentioned on previous calls, employers of all types are taking a wait-and-see approach and delaying certain hiring decisions in what has been an uncertain macroeconomic climate for the first half of 2025. Moreover, the recent Bureau of Labor Statistics job report reflects continued overall softness. The manufacturing industry continued to contract for the fifth straight month, shedding an additional 11,000 jobs in July, driving down factory employment levels to their lowest point since July of 2020. That said, our proven franchise model provides us with a solid operational foundation that enables us to deliver superior operating results for our industry with strong margins and consistent profitability even when the industry landscape is difficult. The market for permanent placement and executive search solutions continues to be slow, particularly in the manufacturing and IT sectors. This, combined with several franchisees not renewing their franchise agreements over the last couple of quarters, impacted the results of MRI network. We remain focused on controlling what we can to position MRI to benefit when demand levels for permanent placement and executive search return. Temporary staffing and day labor offerings have performed better relative to MRI, but even so, the upper Midwest has been weak. As we mentioned on our first quarter call, we are encouraged by newly heightened approach to the enforcement of immigration regulations. Relaxed immigration policies throughout the previous administration had a negative impact on our temporary and day labor offerings as employers chose to use undocumented workers to reduce labor costs. As an E-Verify employer, HireQuest welcomes the enhanced enforcement efforts around hiring documented workers, efforts which we believe create a level playing field in a very competitive space. Acquisitions have historically played an important role in our growth strategy as we look forward as we look to further expand our market reach and geographic footprint. We've had a great deal of experience and success executing an effective M&A strategy while maintaining a strong balance sheet and managing dilution. It's been six years since our merger with Command Center, and over that time, we've completed over $77 million of acquisitions. By the end of the second quarter, with only $4.3 million of debt on the balance sheet, We believe that we are well positioned with the financial flexibility and resources to pursue value-creating opportunities as we identify them. While the first half of 2025 has brought its share of challenges, we have built a strong and flexible business model that has consistently delivered strong margin performance and profitability. HireQuest is well positioned in the markets we serve with a portfolio of recognized staffing and executive search brands, that have allowed us to establish a solid foundation for growth when demand returns in earnest. With that, I will turn the call over now to David to provide a closer look at our second quarter financial results.