Harte-Hanks (HHS)
NASDAQ:HHS
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Harte-Hanks
(NASDAQ:HHS)
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Rating:40Underperform
Price Target:
$2.50
▼(-14.68% Downside)
Action:Downgraded
Date:05/22/26
The score is primarily weighed down by weak financial performance—multi-year revenue decline, thin/negative profitability, elevated leverage, and negative operating/free cash flow. Technicals add a modest headwind with the price below key moving averages and weak momentum. Valuation does not provide support due to a negative P/E and no dividend yield provided.
Positive Factors
Service-led Business Model
Harte Hanks' core model of recurring managed services plus project work and data/analytics creates inherently sticky client relationships. Over months this supports predictable service revenue streams and cross-sell opportunities that can stabilize revenue if client retention and contract mix are managed.
Negative Factors
Multi-year Revenue Decline
Sustained top-line contraction undermines scale benefits and raises the bar for margin recovery. Continued revenue erosion over multiple years constrains pricing power and client acquisition economics, making a durable margin turnaround and cash-flow normalization more difficult over the next several months.
Read all positive and negative factors
Positive Factors
Negative Factors
Service-led Business Model
Harte Hanks' core model of recurring managed services plus project work and data/analytics creates inherently sticky client relationships. Over months this supports predictable service revenue streams and cross-sell opportunities that can stabilize revenue if client retention and contract mix are managed.
Read all positive factors
Harte-Hanks (HHS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$19.44M
Dividend YieldN/A
Average Volume (3M)202.65K
Price to Earnings (P/E)―
Beta (1Y)0.73
Revenue Growth-14.38%
EPS Growth96.63%
CountryUS
Employees1,715
SectorIndustrials
Sector Strength72
IndustryAdvertising Agencies
Share Statistics
EPS (TTM)-0.14
Shares Outstanding7,419,470
10 Day Avg. Volume10,927
30 Day Avg. Volume202,649
Financial Highlights & Ratios
PEG Ratio0.28
Price to Book (P/B)1.08
Price to Sales (P/S)0.14
P/FCF Ratio-4.95
Enterprise Value/Market Cap1.90
Enterprise Value/Revenue0.24
Enterprise Value/Gross Profit0.85
Enterprise Value/Ebitda7.03
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Harte-Hanks Business Overview & Revenue Model
Company Description
Harte Hanks, Inc. operates as a customer experience company in the United States and internationally. It operates through three segments: Marketing Services, Customer Care, and Fulfillment & Logistics Services. The company provides strategic guida...
How the Company Makes Money
Harte Hanks makes money primarily by selling marketing and customer engagement services to business customers under service contracts and project-based engagements. Revenue is generated from fees for executing marketing programs and campaigns (inc...
Harte-Hanks Earnings Call Summary
Earnings Call Date:Nov 14, 2024
(Q3-2024)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a mixed outlook for Harte Hanks. While there are positive developments in revenue growth, new client acquisitions, and cost-saving initiatives, these are offset by declines in certain segments, reduced operating income and EBITDA, and challenges with cash flow and pension costs. The company is focusing on long-term strategies and acknowledges short-term fluctuations.Positive Updates
Revenue Growth
Harte Hanks reported a 1.1% year-over-year revenue increase in Q3 2024, marking an improvement from the negative 16.6% revenue decline in Q3 2023.
Negative Updates
Decline in Marketing Services and Fulfillment & Logistics
Marketing Services revenues fell to $9.1 million from $10.6 million, and Fulfillment & Logistics revenues decreased to $21.3 million from $22.5 million, due to customer budget reductions and lower logistics volume.
Read all updates
Q3-2024 Updates
Positive
Negative
Revenue Growth
Harte Hanks reported a 1.1% year-over-year revenue increase in Q3 2024, marking an improvement from the negative 16.6% revenue decline in Q3 2023.
Read all positive updates
Company Guidance
During the Harte Hanks Third Quarter 2024 Earnings Call, management provided detailed guidance on the company's performance and strategic direction. Kirk Davis, CEO, reported a modest 1.1% year-over-year revenue increase, contrasting the negative 16.6% decline from Q3 2023 when adjusted for acquired revenue. He acknowledged the expectation of a low to mid-single digit revenue decline in Q4, citing natural fluctuations in their growth trajectory. The focus remains on optimizing free cash flow, with significant investments in the newly established Customer Excellence and Growth division. David Garrison, CFO, highlighted the $47.6 million in revenues for Q3 2024, driven by growth in Customer Care and Sales Services, despite declines in other segments. The company aims for a $6 million EBITDA improvement, facilitated by Project Elevate's cost-saving measures, including personnel optimization and streamlined operations. Financially, the company ended the quarter with $5.9 million in cash and no debt, after a strategic $6.1 million contribution to terminate Pension Plan 1.Harte-Hanks Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
45
Neutral
Cash Flow
32
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 155.27M | 159.57M | 185.24M | 191.49M | 206.28M | 194.60M |
| Gross Profit | 43.28M | 109.67M | 128.60M | 131.92M | 140.58M | 144.33M |
| EBITDA | 5.25M | 6.64M | 12.05M | 13.28M | 22.48M | 19.72M |
| Net Income | -1.05M | -811.00K | -30.30M | -1.57M | 36.78M | 14.97M |
Balance Sheet | ||||||
| Total Assets | 90.41M | 91.83M | 101.78M | 131.07M | 119.98M | 107.86M |
| Cash, Cash Equivalents and Short-Term Investments | 4.54M | 5.59M | 9.93M | 18.36M | 10.36M | 11.91M |
| Total Debt | 22.02M | 22.40M | 24.60M | 28.51M | 22.32M | 30.77M |
| Total Liabilities | 70.30M | 71.30M | 80.09M | 111.22M | 101.18M | 122.85M |
| Stockholders Equity | 20.10M | 20.53M | 21.69M | 19.86M | 18.81M | -14.99M |
Cash Flow | ||||||
| Free Cash Flow | -3.70M | -4.49M | -6.73M | 7.67M | 22.99M | -4.81M |
| Operating Cash Flow | -704.00K | -1.74M | -2.99M | 10.48M | 28.79M | -1.76M |
| Investing Cash Flow | -3.00M | -2.76M | -3.74M | -2.31M | -11.49M | -2.90M |
| Financing Cash Flow | 632.00K | 514.00K | -419.00K | -3.22M | -15.82M | -13.41M |
Harte-Hanks Technical Analysis
Negative
2.93
Price Trends
2.66
Negative
2.79
Negative
3.11
Negative
Market Momentum
-0.02
Positive
41.51
Neutral
25.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HHS, the sentiment is Negative. The current price of 2.93 is above the 20-day moving average (MA) of 2.76, above the 50-day MA of 2.66, and below the 200-day MA of 3.11, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 41.51 is Neutral, neither overbought nor oversold. The STOCH value of 25.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HHS.
Harte-Hanks Risk Analysis
Harte-Hanks disclosed 27 risk factors in its most recent earnings report. Harte-Hanks reported the most risks in the "Ability to Sell" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Harte-Hanks Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $36.79M | 10.33 | 1.26% | ― | 28.34% | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $1.09B | 8.90 | 15.49% | 5.41% | 0.55% | 82.53% | |
56 Neutral | $74.43M | -9.87 | -16.69% | ― | -6.92% | 10.29% | |
45 Neutral | $77.52M | -4.62 | -134.35% | ― | -18.64% | 51.79% | |
40 Underperform | $19.44M | -6.70 | -26.62% | ― | -14.38% | 96.63% |
* Industrials Sector Average
HHS
Harte-Hanks
2.62
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-44.84%
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Harte-Hanks Corporate Events
Executive/Board ChangesShareholder Meetings
Harte Hanks Shareholders Endorse Board, Pay and Auditor
Positive
May 22, 2026
Harte Hanks, Inc. held its 2026 Annual Meeting of Stockholders on May 21, 2026, where shareholders elected four board nominees, Genni Combes, John H. Griffin Jr., Bradley Radoff and Elizabeth Ross, to serve until the next annual meeting or until s...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.