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Harte-Hanks, Inc. (HHS)
:HHS
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Harte-Hanks
(NASDAQ:HHS)
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Rating:39Underperform
Price Target:
$2.50
▼(-28.57% Downside)
Harte-Hanks' overall stock score is primarily impacted by its weak financial performance, characterized by declining revenues, high leverage, and negative profitability. The technical analysis further supports a bearish outlook, with the stock trading below key moving averages and indicators suggesting oversold conditions. Valuation metrics are also concerning, with a negative P/E ratio and no dividend yield, indicating significant risks and limited attractiveness for investors.
Harte-Hanks (HHS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$20.54M
Dividend YieldN/A
Average Volume (3M)200.99K
Price to Earnings (P/E)―
Beta (1Y)0.26
Revenue Growth-6.49%
EPS Growth89.87%
CountryUS
Employees1,715
SectorIndustrials
Sector Strength72
IndustryAdvertising Agencies
Share Statistics
EPS (TTM)N/A
Shares Outstanding7,414,794
10 Day Avg. Volume49,058
30 Day Avg. Volume200,994
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)1.73
Price to Sales (P/S)0.20
P/FCF Ratio-5.58
Enterprise Value/Market Cap0.00
Enterprise Value/Revenue0.00
Enterprise Value/Gross Profit0.00
Enterprise Value/Ebitda0.00
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 DescriptionHarte-Hanks (HHS) is a marketing services company that specializes in data-driven marketing solutions and customer engagement strategies. The company operates primarily in the marketing and communications sector, providing a range of services including direct mail, digital marketing, data management, and customer analytics. Harte-Hanks focuses on helping businesses enhance customer interactions and improve their marketing effectiveness through targeted campaigns and insightful data analysis.
How the Company Makes MoneyHarte-Hanks generates revenue through multiple streams, including direct marketing services, digital marketing solutions, and data analytics offerings. The company typically charges clients for its services based on project fees, subscription models for data access, and performance-based pricing linked to campaign outcomes. Significant partnerships with technology providers and integration with various marketing platforms enhance its service offerings and attract a diverse client base. Additionally, the company leverages its extensive customer data to provide insights and targeted marketing strategies, creating value for clients and driving recurring revenue.
Harte-Hanks Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q3-2024)
| % Change Since: |
Next Earnings Date:Mar 12, 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.Q3-2024 Updates
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.
New Client Acquisitions
The company secured new clients across various segments, including a dynamic design marketplace, a top financial services client, a global luxury automotive industry client, and a global resale marketplace for luxury goods.
Customer Care and Sales Services Growth
Revenues in the Customer Care segment increased to $13.1 million from $11.8 million in the prior year. Sales Services revenue grew from $2.2 million to $4.2 million, driven by increased volume from a large client.
Project Elevate Cost Savings
Project Elevate resulted in $6 million of in-year EBITDA improvement, with cost savings from personnel optimization, streamlining contracts, and improved warehouse operations.
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.
Operating Income and EBITDA Decline
Operating income in Q3 2024 was $1.9 million compared to $2.9 million in Q3 2023. Adjusted EBITDA was $4.1 million, slightly down from $4.2 million in Q3 2023.
Cash Position and Pension Plan Costs
Cash and cash equivalents decreased to $5.9 million from $13.3 million a year ago, impacted by a $6.1 million contribution to terminate Pension Plan 1 and additional costs for final onboarding pension expenses.
Expected Revenue Decline in Q4
The company anticipates a low to mid-single digit revenue decline in Q4 2024 as part of natural fluctuations during the path to sustainable growth.
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
Harte-Hanks faces financial challenges with declining revenues and profitability issues. The company has high leverage and negative returns on equity, indicating financial instability. While there is improvement in free cash flow, the negative operating cash flow highlights cash management concerns. Overall, the financial health of Harte-Hanks is weak, with significant risks due to declining performance and high debt levels.Income Statement
Harte-Hanks has experienced declining revenue with a negative revenue growth rate of -3.53% in the TTM period. The gross profit margin is relatively healthy at 55.29%, but the net profit margin is negative at -1.73%, indicating profitability challenges. The EBIT and EBITDA margins are modest at 2.13% and 4.67%, respectively, suggesting limited operational efficiency.45
Neutral
Balance Sheet
The company has a high debt-to-equity ratio of 1.02, indicating significant leverage. The return on equity is negative at -13.98%, reflecting poor profitability relative to shareholder equity. The equity ratio is not explicitly calculated, but the negative ROE and high leverage suggest financial instability.40
Negative
Cash Flow
Harte-Hanks shows a significant improvement in free cash flow growth at 103.19% in the TTM period, but the operating cash flow is negative, indicating cash flow challenges. The operating cash flow to net income ratio is negative, and the free cash flow to net income ratio is 1.12, suggesting reliance on non-operational cash flows.35
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 174.95M | 185.24M | 191.49M | 206.28M | 194.60M | 176.90M |
| Gross Profit | 96.74M | 91.47M | 30.56M | 140.58M | 144.33M | 127.61M |
| EBITDA | 8.17M | 12.05M | 9.89M | 22.48M | 15.20M | -13.53M |
| Net Income | -3.02M | -30.30M | -1.57M | 36.78M | 14.97M | -1.69M |
Balance Sheet | ||||||
| Total Assets | 95.02M | 101.78M | 122.76M | 119.98M | 107.86M | 119.50M |
| Cash, Cash Equivalents and Short-Term Investments | 4.76M | 9.93M | 18.36M | 10.36M | 11.91M | 29.41M |
| Total Debt | 22.73M | 24.60M | 28.51M | 22.32M | 30.77M | 55.06M |
| Total Liabilities | 72.78M | 80.09M | 102.90M | 101.18M | 122.85M | 162.90M |
| Stockholders Equity | 22.24M | 21.69M | 19.86M | 18.81M | -14.99M | -43.40M |
Cash Flow | ||||||
| Free Cash Flow | -8.93M | -6.73M | 7.67M | 22.99M | -4.81M | -10.54M |
| Operating Cash Flow | -7.99M | -2.99M | 10.48M | 28.79M | -1.76M | -7.84M |
| Investing Cash Flow | -2.87M | -3.74M | -2.31M | -11.49M | -2.90M | -775.00K |
| Financing Cash Flow | 4.94M | -419.00K | -3.22M | -15.82M | -13.41M | 7.31M |
Harte-Hanks Technical Analysis
Negative
3.50
Price Trends
3.52
Negative
3.57
Negative
4.19
Negative
Market Momentum
-0.22
Positive
31.11
Neutral
32.32
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 3.5 is above the 20-day moving average (MA) of 3.31, below the 50-day MA of 3.52, and below the 200-day MA of 4.19, indicating a bearish trend. The MACD of -0.22 indicates Positive momentum. The RSI at 31.11 is Neutral, neither overbought nor oversold. The STOCH value of 32.32 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $816.46M | 9.97 | 12.96% | 6.60% | -0.94% | 47.48% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | $35.07M | -14.80 | -7.18% | ― | 38.49% | -558.25% | |
44 Neutral | $56.99M | -1.47 | -115.36% | ― | -12.84% | 63.95% | |
42 Neutral | $76.43M | -16.17 | -13.93% | ― | -2.64% | 6.48% | |
39 Underperform | $20.54M | ― | -14.09% | ― | -6.49% | 89.87% |
* Industrials Sector Average
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Harte-Hanks
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Harte-Hanks Corporate Events
Harte Hanks Reports Q2 2025 Financial Results
Aug 8, 2025
Harte Hanks, Inc. is a global customer experience company that partners with clients to provide CX strategy, data-driven analytics, and actionable insights, specializing in Customer Care, Fulfillment & Logistics, and Marketing Services. In its second quarter of 2025, Harte Hanks reported a decline in total revenues to $38.6 million, a 14.2% decrease from the previous year, but maintained a debt-free balance sheet and a strong cash position. The company recorded a net loss of $0.3 million, a significant improvement from the $27.8 million loss in the same quarter last year, and achieved an EBITDA of $1.1 million. Despite revenue declines across all segments, Harte Hanks remains focused on its long-term strategy, including operational efficiencies through Project Elevate and expanding client relationships. Looking forward, Harte Hanks aims to leverage its strong financial foundation to invest in growth and innovation, supporting sustainable profitability in the future.
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.