Harte Hanks, Inc.

What they do

Harte Hanks operates three reportable segments: Customer Care, Fulfillment & Logistics Services, and Revenue Solutions (formerly Marketing Services). The company integrates front office revenue growth and customer experience operations with back office execution, serving clients across B2B technology, retail, healthcare, and other industries. Services include strategic planning, data strategy, performance analytics, creative development, technology enablement, marketing automation, cross-channel customer care, and product/print/mail fulfillment.

Revenue drivers

• Fulfillment & Logistics Services — Largest segment, 44% of Q1 2026 segment revenue ($16.5M), provides product, print, and mail fulfillment and logistics, down 16.6% YoY.
• Customer Care — 35% of Q1 2026 segment revenue ($12.9M), provides cross-channel customer care services, down 1.1% YoY.
• Revenue Solutions — 21% of Q1 2026 segment revenue ($7.9M), includes marketing services and data-driven solutions, down 9.9% YoY.

Recent performance

For Q1 2026, total revenue was $37.3M, down 10.3% from $41.6M in Q1 2025. Operating loss widened to $768K from $40K loss in prior year. Net loss was $0.6M ($0.08 per share) versus $0.4M ($0.05 per share) in Q1 2025. EBITDA was $0.3M and adjusted EBITDA was $0.7M, down from $1.0M and $1.8M respectively. Revenue has declined annually from $206.3M in 2022 to $159.6M in 2025.

Strategy

Management is aligning the company around priority sectors where experience, trust, and measurable outcomes create client value. They are shifting toward higher-value services and technology-enabled delivery, while maintaining a strong balance sheet. The company aims to build momentum toward positive EBITDA throughout 2026. They are focused on winning strategic new business across key industries.

Risks

• Client concentration — Largest client generated 10.5% of 2025 revenue and represented 12.3% of accounts receivable; top 25 clients accounted for 68.3% of revenue.
• Short-notice cancellations — Most client engagements, especially contact center services, are cancellable on short notice with no minimum volume or revenue requirements.
• Revenue decline — Annual revenue has fallen from $206.3M in 2022 to $159.6M in 2025, with continued pressure from legacy offerings and market headwinds.
• Macroeconomic uncertainty — Inflation, interest rates, and armed conflicts create volatility and could impact client marketing budgets, which are largely discretionary.

Outlook

Management says the company is well-positioned to execute its growth strategy and build momentum toward positive EBITDA throughout 2026. They continue to adjust cost structure to reflect operations and outlook. The company ended Q1 2026 with $4.5M cash, no outstanding debt, and $24.3M credit line capacity.