{"url_path":"/sec/hhs/8-k/2026-05-14/body","section_key":"body","section_title":"Body","topic":"sec","document":{"doc_type":"8-K","doc_date":"2026-05-14","source_url":"https://www.sec.gov/Archives/edgar/data/45919/0001628280-26-035139-index.html","accession_number":"0001628280-26-035139","cik":"0000045919","ticker":"HHS","issuer_name":"HARTE HANKS INC","edgar_url":"https://www.sec.gov/Archives/edgar/data/45919/0001628280-26-035139-index.html","primary_entity_key":"0000045919","primary_entity_name":"HARTE HANKS INC"},"word_count":2234,"has_tables":true,"body_markdown":"EX-99.1\n2\na20260514ex991earningsq1-26.htm\nEX-99.1\n\nDocument\n\nExhibit 99.1\n\nHarte Hanks Reports First Quarter 2026 Results\n\nAdvances Sector-Aligned Growth Strategy While Maintaining Strong Balance Sheet and Positive EBITDA\n\nChelmsford, Massachusetts – May 14, 2026 - Harte Hanks, Inc. (NASDAQ: HHS), a leading global customer experience company focused on bringing companies closer to customers for over 100 years, today announced financial results for the first quarter ended March 31, 2026. Despite revenue pressure in the first quarter, the Company continued to drive operational progress and secure strategic new business wins across key industries. Harte Hanks ended the quarter with a strong balance sheet positioning the Company to execute on its growth strategy, building momentum to deliver positive EBITDA throughout 2026.\n\n“During the first quarter, we continued aligning Harte Hanks around priority sectors where our experience, trust, and focus on measurable outcomes can create the greatest client value,” said David Fisher, President of Harte Hanks. “By combining our deep customer experience expertise with sector knowledge and technology-enabled delivery, we are building a more focused, scalable company positioned to help clients acquire, serve, and retain customers more effectively. While revenue remained pressured by legacy offerings and market headwinds, we advanced our shift toward higher-value services and ended the quarter with a strong balance sheet, positioning Harte Hanks to execute on its growth strategy and build momentum toward positive EBITDA throughout 2026.”\n\nFirst Quarter Highlights\n\n•The Company ended the quarter with a cash balance of $4.5 million at March 31, 2026.\n\n•Total revenues for Q1 2026 were $37.3 million, down 10.3% compared to $41.6 million in Q1 2025.\n\n•Operating loss was $768 thousand compared to a loss of $40 thousand in the same quarter in the prior year.\n\n•Net loss was $0.6 million, or $0.08 per basic and diluted share, compared to net loss of $0.4 million, or $0.05 per basic and diluted share, in the prior year quarter.\n\n•The first quarter of 2026 had EBITDA of $0.3 million compared to EBITDA of $1.0 million in the same period in the prior year. Adjusted EBITDA, which excludes stock-based compensation and restructuring charges, was $0.7 million for Q1 2026 and $1.8 million for the same quarter in 2025.\n\nSegment Highlights\n\n•Customer Care, $12.9 million in revenue, 35% of total – Segment revenue for the quarter decreased $0.1 million or 1.1% versus the prior year and EBITDA totaled $0.9 million for the quarter, a decline of 56.8% compared to the same period in the prior year.\n\n•Fulfillment & Logistics Services, $16.5 million in revenue, 44% of total – Segment revenue for the quarter decreased $3.3 million or 16.6% versus the prior year quarter and EBITDA totaled $1.2 million, a decline of 28.9%.\n\n•Revenue Solutions, $7.9 million in revenue, 21% of total – Segment revenue for the quarter decreased $0.9 million or 9.9% compared to the prior year quarter and EBITDA for the first quarter totaled $1.0 million vs. $1.1 million for the first quarter of 2025.\n\nBalance Sheet and Liquidity\n\nHarte Hanks ended the quarter with $4.5 million in cash and cash equivalents and $24.3 million of capacity on its credit line. The Company has no outstanding debt as of March 31, 2026. The Company’s financial position continues to be strong, and it is well-positioned to execute on its long-term growth strategies in 2026 and beyond.\n\nExhibit 99.1\n\nAbout Harte Hanks:\n\nHarte Hanks (NASDAQ: HHS) is a leading global customer experience company whose mission is to partner with clients to provide them with CX strategy, data-driven analytics and actionable insights combined with seamless program execution to better understand, attract and engage their customers.\n\nUsing its unparalleled resources and award-winning talent in the areas of Customer Care, Fulfillment and Logistics, and Revenue Solutions, Harte Hanks has a proven track record of driving results for some of the world’s premier brands, including GlaxoSmithKline, Unilever, Samsung, Pfizer, HBO Max, Volvo, Ford, FedEx, Abbott and IBM among others. Headquartered in Chelmsford, Massachusetts, Harte Hanks has over 2,100 employees in offices across the Americas, Europe, and Asia Pacific.\n\nFor more information, visit hartehanks.com\n\nAs used herein, “Harte Hanks” or “the Company” refers to Harte Hanks, Inc. and/or its applicable operating subsidiaries, as the context may require. Harte Hanks’ logo and name are trademarks of Harte Hanks, Inc.\n\nCautionary Note Regarding Forward-Looking Statements:\n\nOur press release and related earnings conference call contain “forward-looking statements” within the meaning of U.S. federal securities laws. All such statements are qualified by this cautionary note, provided pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements other than historical facts are forward-looking and may be identified by words such as “may,” “will,” “expects,” “believes,” “anticipates,” “plans,” “estimates,” “seeks,” “could,” “intends,” or words of similar meaning. These forward-looking statements are based on current information, expectations and estimates and involve risks, uncertainties, assumptions and other factors that are difficult to predict and that could cause actual results to vary materially from what is expressed in or indicated by the forward-looking statements. In that event, our business, financial condition, results of operations or liquidity could be materially adversely affected and investors in our securities could lose part or all of their investments. These risks, uncertainties, assumptions and other factors include: (a) local, national and international economic and business conditions, including (i) market conditions that may adversely impact marketing expenditures, and (ii) the impact of economic environments and competitive pressures on the financial condition, marketing expenditures and activities of our clients and prospects; (iii) the demand for our products and services by clients and prospective clients, including (iv) the willingness of existing clients to maintain or increase their spending on products and services that are or remain profitable for us, and (vi) our ability to predict changes in client needs and preferences; (b) economic and other business factors that impact the industry verticals we serve, including competition, inflation and consolidation of current and prospective clients, vendors and partners in these verticals; (c) our ability to manage and timely adjust our facilities, capacity, workforce and cost structure to effectively serve our clients; (d) our ability to improve our processes and to provide new products and services in a timely and cost-effective manner though development, license, partnership or acquisition; (e) our ability to protect our facilities against security breaches and other interruptions and to protect sensitive personal information of our clients and their customers; (f) our ability to respond to increasing concern, regulation and legal action over consumer privacy issues, including changing requirements for collection, processing and use of information; (g) the impact of privacy and other regulations, including restrictions on unsolicited marketing communications and other consumer protection laws; (h) fluctuations in fuel prices, paper prices, postal rates and postal delivery schedules; (i) the number of shares, if any, that we may repurchase in connection with our repurchase program; (j) unanticipated developments regarding litigation or other contingent liabilities; (k) our ability to complete reorganizations, including cost-saving initiatives; and (l) other factors discussed from time to time in our filings with the Securities and Exchange Commission, including under “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025 which was filed on March 17, 2026. The forward-looking statements in this press release and our related earnings conference call are made only as of the date hereof, and we undertake no obligation to update publicly any forward-looking statement, even if new information becomes available or other events occur in the future.\n\nSupplemental Non-GAAP Financial Measures:\n\nThe Company reports its financial results in accordance with generally accepted accounting principles (“GAAP”). However, the Company may use certain non-GAAP measures of financial performance in order to provide investors with a better understanding of operating results and underlying trends to assess the Company’s performance and liquidity in this press release and our related earnings conference call. We have presented herein a reconciliation of these measures to the most directly comparable GAAP financial measure.\n\nExhibit 99.1\n\nThe Company presents the non-GAAP financial measure “Adjusted Operating Income” as a useful measure to both management and investors in their analysis of the Company’s financial results because it facilitates a period-to-period comparison of Operating Income excluding stock-based compensation, severance, and restructuring. The most directly comparable measure for this non-GAAP financial measure is Operating Income (Loss).\n\nThe Company presents the non-GAAP financial measure “EBITDA” as a supplemental measure of operating performance in order to provide an improved understanding of underlying performance trends. The Company defines “EBITDA” as Net Income (Loss) adjusted to exclude income tax expense, other expense (income), net, and depreciation and amortization expense. The Company defines “Adjusted EBITDA” as EBITDA adjusted to exclude stock-based compensation, severance, and restructuring. The most directly comparable measure for EBITDA and Adjusted EBITDA is Net Income (Loss). We believe EBITDA and Adjusted EBITDA are an important performance metric because it facilitates the analysis of our results, exclusive of certain non-cash items, including items which do not directly correlate to our business operations; however, we urge investors to review the reconciliation of non-GAAP EBITDA to the comparable GAAP Net Income (Loss), which is included in this press release, and not to rely on any single financial measure to evaluate the Company’s financial performance.\n\nThe use of non-GAAP measures does not serve as a substitute and should not be construed as a substitute for GAAP performance but should provide supplemental information concerning our performance that our investors and we find useful. The Company evaluates its operating performance based on several measures, including these non-GAAP financial measures. The Company believes that the presentation of these non-GAAP financial measures in this press release and earnings conference call presentations are useful supplemental financial measures of operating performance for investors because they facilitate investors’ ability to evaluate the operational strength of the Company’s business. However, there are limitations to the use of these non-GAAP measures, including that they may not be calculated the same by other companies in our industry limiting their use as a tool to compare results. Any supplemental non-GAAP financial measures referred to herein are not calculated in accordance with GAAP and they should not be considered in isolation or as substitutes for the most comparable GAAP financial measures.\n\nInvestor Relations Contact:\n\nDavid Garrison\n\nInvestor.Relations@hartehanks.com\n\nExhibit 99.1\n\nHarte Hanks, Inc.\n\nConsolidated Statements of Operations (Unaudited)\n\nThree Months Ended March 31,\n\nIn thousands, except per share amounts20262025\n\nRevenue$37,264 $41,561 \n\nOperating expenses\n\nLabor19,810 19,799 \n\nProduction and distribution11,339 14,057 \n\nAdvertising, selling, general and administrative5,641 5,844 \n\nRestructuring expenses160 838 \n\nDepreciation and amortization expense1,082 1,063 \n\nTotal operating expenses38,032 41,601 \n\nOperating loss(768)(40)\n\nOther expenses, net\n\nInterest expense, net69 53 \n\nOther expense, net161 514 \n\nTotal other expense, net230 567 \n\nLoss before income taxes(998)(607)\n\nIncome tax benefit(370)(215)\n\nNet loss(628)(392)\n\nLoss per common share\n\nBasic and Diluted$(0.08)$(0.05)\n\nWeighted average shares used to compute loss per share\n\nBasic and Diluted7,4167,360\n\nComprehensive loss, net of tax:\n\nNet loss$(628)$(392)\n\nAdjustment to pension liability, net74 165 \n\nForeign currency translation adjustment(78)36 \n\nTotal other comprehensive (loss) income, net of tax(4)201 \n\nComprehensive loss$(632)$(191)\n\nExhibit 99.1\n\nHarte Hanks, Inc.\n\nCondensed Consolidated Balance Sheets (Unaudited)\n\nIn thousandsMarch 31, 2026December 31, 2025\n\nASSETS\n\nCurrent assets\n\nCash and cash equivalents, and restricted cash$4,538 $5,587 \n\nAccounts receivable, net26,116 27,841 \n\nUnbilled accounts receivable8,052 6,728 \n\nContract assets133 321 \n\nPrepaid expenses3,015 2,363 \n\nPrepaid income taxes and income tax receivable1,864 1,431 \n\nOther current assets2,063 2,046 \n\nTotal current assets45,781 46,317 \n\nNet property, plant and equipment7,791 8,386 \n\nOperating lease right-of-use assets18,945 19,247 \n\nFinancing lease right-of-use assets562 607 \n\nOther assets17,326 17,269 \n\nTotal assets$90,405 $91,826 \n\nLIABILITIES AND STOCKHOLDERS’ EQUITY\n\nCurrent liabilities\n\nAccounts payable $11,092 $13,096 \n\nAccrued expense6,102 5,915 \n\nAccrued payroll and related expenses3,323 2,749 \n\nDeferred revenue and customer advances2,572 813 \n\nCustomer postage and program deposits849 868 \n\nOther current liabilities2,823 3,180 \n\nCurrent portion of lease liabilities3,965 3,543 \n\nTotal current liabilities30,726 30,164 \n\nPension liabilities - Qualified plans3,708 4,106 \n\nPension liabilities - Nonqualified plan16,778 16,995 \n\nLease liabilities, net of current portion18,050 18,861 \n\nOther long-term liabilities1,040 1,174 \n\nTotal liabilities70,302 71,300 \n\nStockholders’ equity\n\nCommon stock12,221 12,221 \n\nAdditional paid-in capital108,216 109,558 \n\nRetained earnings813,184 813,812 \n\nLess treasury stock(898,534)(900,085)\n\nAccumulated other comprehensive loss(14,984)(14,980)\n\nTotal stockholders’ equity$20,103 $20,526 \n\nTotal liabilities and stockholders’ equity$90,405 $91,826 \n\nExhibit 99.1\n\nHarte Hanks, Inc.\n\nReconciliations of Non-GAAP Financial Measures (Unaudited)\n\nThree Months Ended March 31,\n\nIn thousands20262025\n\nNet loss$(628)$(392)\n\nIncome tax benefit(370)(215)\n\nOther expense, net230 567 \n\nDepreciation and amortization expense1,082 1,063 \n\nEBITDA$314 $1,023 \n\nStock-based compensation218 (49)\n\nRestructuring expense160 838 \n\nAdjusted EBITDA$692 $1,812 \n\nOperating loss$(768)$(40)\n\nStock-based compensation218 (49)\n\nRestructuring expense160 838 \n\nAdjusted operating (loss) income$(390)$749 \n\nAdjusted operating margin (a)\n(1.0%)1.8%\n\n(a)Adjusted Operating Margin equals Adjusted Operating Income divided by Revenues.\n\nHarte Hanks, Inc.\n\nStatement of Operations by Segments (Unaudited)\n\nIn thousands\n\nThree months ended March 31, 2026Revenue SolutionsCustomer CareFulfillment & LogisticsRestructuring ExpenseUnallocated CorporateTotal\n\nRevenue$7,916 $12,857 $16,491 $— $— $37,264 \n\nSegment labor expense4,454 9,011 3,966 — 2,379 19,810 \n\nOther segment operating expense1,808 2,186 10,524 — 2,462 16,980 \n\nRestructuring expense— — — 160 — 160 \n\nContribution margin (loss)$1,654 $1,660 $2,001 $(160)$(4,841)$314 \n\nOverhead allocation675 771 800 — (2,246)— \n\nEBITDA$979 $889 $1,201 $(160)$(2,595)$314 \n\nDepreciation and amortization160 132 516 — 274 1,082 \n\nOperating income (loss)$819 $757 $685 $(160)$(2,869)$(768)\n\nThree months ended March 31, 2025Revenue SolutionsCustomer CareFulfillment & LogisticsRestructuring ExpenseUnallocated CorporateTotal\n\nRevenue$8,782 $13,001 $19,778 $— $— $41,561 \n\nSegment labor expense4,487 8,016 4,562 — 2,734 19,799 \n\nOther segment operating expense2,511 2,100 12,644 — 2,646 19,901 \n\nRestructuring expense— — — 838 — 838 \n\nContribution margin (loss)$1,784 $2,885 $2,572 $(838)$(5,380)$1,023 \n\nOverhead allocation711 826 882 — (2,419)— \n\nEBITDA$1,073 $2,059 $1,690 $(838)$(2,961)$1,023 \n\nDepreciation and amortization217 51 501 — 294 1,063 \n\nOperating income (loss)$856 $2,008 $1,189 $(838)$(3,255)$(40)"}