hrth-20250630

0000045919--12-31false2025Q2P1Yhttp://www.hartehanks.com/20250630#OperatingAndFinanceLeaseRightOfUseAssethttp://www.hartehanks.com/20250630#OperatingAndFinanceLeaseRightOfUseAssethttp://www.hartehanks.com/20250630#OperatingAndFinanceLeaseRightOfUseAssethttp://www.hartehanks.com/20250630#OperatingAndFinanceLeaseRightOfUseAssethttp://www.hartehanks.com/20250630#OperatingAndFinanceLeaseLiabilityCurrenthttp://www.hartehanks.com/20250630#OperatingAndFinanceLeaseLiabilityCurrenthttp://www.hartehanks.com/20250630#OperatingAndFinanceLeaseLiabilityCurrenthttp://www.hartehanks.com/20250630#OperatingAndFinanceLeaseLiabilityCurrenthttp://www.hartehanks.com/20250630#OperatingAndFinanceLeaseLiabilityNoncurrenthttp://www.hartehanks.com/20250630#OperatingAndFinanceLeaseLiabilityNoncurrenthttp://www.hartehanks.com/20250630#OperatingAndFinanceLeaseLiabilityNoncurrenthttp://www.hartehanks.com/20250630#OperatingAndFinanceLeaseLiabilityNoncurrenthttp://www.hartehanks.com/20250630#OperatingAndFinanceLeaseLiabilityCurrent http://www.hartehanks.com/20250630#OperatingAndFinanceLeaseLiabilityNoncurrenthttp://www.hartehanks.com/20250630#OperatingAndFinanceLeaseLiabilityCurrent http://www.hartehanks.com/20250630#OperatingAndFinanceLeaseLiabilityNoncurrent



(1) This amount is comprised of the below balances:

Pension Plan I termination payments and charges	$	—	31,879

Normal pension plan activities	(1,079)		$	68

Net Pension cost, net	$	(1,079)	$	31,947



(2) This amount is comprised of the below balances:

Cash and cash equivalents	$	4,757	$	10,974

Cash held in Escrow account included in other assets	—		500

Cash and cash equivalents at end of period	$	4,757	$	11,474

xbrli:sharesiso4217:USDiso4217:USDxbrli:shareshrth:segmentxbrli:purehrth:plan00000459192025-01-012025-06-3000000459192025-07-3100000459192025-06-3000000459192024-12-310000045919us-gaap:QualifiedPlanMember2025-06-300000045919us-gaap:QualifiedPlanMember2024-12-310000045919us-gaap:NonqualifiedPlanMember2025-06-300000045919us-gaap:NonqualifiedPlanMember2024-12-3100000459192025-04-012025-06-3000000459192024-04-012024-06-3000000459192024-01-012024-06-300000045919us-gaap:CommonStockMember2024-12-310000045919us-gaap:AdditionalPaidInCapitalMember2024-12-310000045919us-gaap:RetainedEarningsMember2024-12-310000045919us-gaap:TreasuryStockCommonMember2024-12-310000045919us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-12-310000045919us-gaap:AdditionalPaidInCapitalMember2025-01-012025-03-3100000459192025-01-012025-03-310000045919us-gaap:TreasuryStockCommonMember2025-01-012025-03-310000045919us-gaap:RetainedEarningsMember2025-01-012025-03-310000045919us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-01-012025-03-310000045919us-gaap:CommonStockMember2025-03-310000045919us-gaap:AdditionalPaidInCapitalMember2025-03-310000045919us-gaap:RetainedEarningsMember2025-03-310000045919us-gaap:TreasuryStockCommonMember2025-03-310000045919us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-03-3100000459192025-03-310000045919us-gaap:AdditionalPaidInCapitalMember2025-04-012025-06-300000045919us-gaap:TreasuryStockCommonMember2025-04-012025-06-300000045919us-gaap:RetainedEarningsMember2025-04-012025-06-300000045919us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-04-012025-06-300000045919us-gaap:CommonStockMember2025-06-300000045919us-gaap:AdditionalPaidInCapitalMember2025-06-300000045919us-gaap:RetainedEarningsMember2025-06-300000045919us-gaap:TreasuryStockCommonMember2025-06-300000045919us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-06-300000045919us-gaap:CommonStockMember2023-12-310000045919us-gaap:AdditionalPaidInCapitalMember2023-12-310000045919us-gaap:RetainedEarningsMember2023-12-310000045919us-gaap:TreasuryStockCommonMember2023-12-310000045919us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-3100000459192023-12-310000045919us-gaap:AdditionalPaidInCapitalMember2024-01-012024-03-3100000459192024-01-012024-03-310000045919us-gaap:TreasuryStockCommonMember2024-01-012024-03-310000045919us-gaap:RetainedEarningsMember2024-01-012024-03-310000045919us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-01-012024-03-310000045919us-gaap:CommonStockMember2024-03-310000045919us-gaap:AdditionalPaidInCapitalMember2024-03-310000045919us-gaap:RetainedEarningsMember2024-03-310000045919us-gaap:TreasuryStockCommonMember2024-03-310000045919us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-03-3100000459192024-03-310000045919us-gaap:AdditionalPaidInCapitalMember2024-04-012024-06-300000045919us-gaap:TreasuryStockCommonMember2024-04-012024-06-300000045919us-gaap:RetainedEarningsMember2024-04-012024-06-300000045919us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-04-012024-06-300000045919us-gaap:CommonStockMember2024-06-300000045919us-gaap:AdditionalPaidInCapitalMember2024-06-300000045919us-gaap:RetainedEarningsMember2024-06-300000045919us-gaap:TreasuryStockCommonMember2024-06-300000045919us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-06-3000000459192024-06-300000045919us-gaap:OperatingSegmentsMemberhrth:MarketingServicesMember2025-04-012025-06-300000045919us-gaap:OperatingSegmentsMemberhrth:MarketingServicesMember2024-04-012024-06-300000045919us-gaap:OperatingSegmentsMemberhrth:MarketingServicesMember2025-01-012025-06-300000045919us-gaap:OperatingSegmentsMemberhrth:MarketingServicesMember2024-01-012024-06-300000045919us-gaap:OperatingSegmentsMemberhrth:CustomerCareMember2025-04-012025-06-300000045919us-gaap:OperatingSegmentsMemberhrth:CustomerCareMember2024-04-012024-06-300000045919us-gaap:OperatingSegmentsMemberhrth:CustomerCareMember2025-01-012025-06-300000045919us-gaap:OperatingSegmentsMemberhrth:CustomerCareMember2024-01-012024-06-300000045919us-gaap:OperatingSegmentsMemberhrth:FulfillmentAndLogisticsServicesMember2025-04-012025-06-300000045919us-gaap:OperatingSegmentsMemberhrth:FulfillmentAndLogisticsServicesMember2024-04-012024-06-300000045919us-gaap:OperatingSegmentsMemberhrth:FulfillmentAndLogisticsServicesMember2025-01-012025-06-300000045919us-gaap:OperatingSegmentsMemberhrth:FulfillmentAndLogisticsServicesMember2024-01-012024-06-300000045919us-gaap:OperatingSegmentsMember2025-04-012025-06-300000045919us-gaap:OperatingSegmentsMember2024-04-012024-06-300000045919us-gaap:OperatingSegmentsMember2025-01-012025-06-300000045919us-gaap:OperatingSegmentsMember2024-01-012024-06-300000045919us-gaap:TransferredAtPointInTimeMember2025-04-012025-06-300000045919us-gaap:TransferredAtPointInTimeMember2025-01-012025-06-300000045919us-gaap:TransferredAtPointInTimeMember2024-04-012024-06-300000045919us-gaap:TransferredAtPointInTimeMember2024-01-012024-06-300000045919srt:MinimumMember2025-01-012025-06-300000045919srt:MaximumMember2025-01-012025-06-3000000459192023-05-020000045919us-gaap:RevolvingCreditFacilityMemberhrth:TexasCapitalBankMemberhrth:NewCreditFacilityMember2021-12-212021-12-210000045919us-gaap:RevolvingCreditFacilityMemberhrth:TexasCapitalBankMemberhrth:NewCreditFacilityMember2021-12-210000045919us-gaap:RevolvingCreditFacilityMemberhrth:TexasCapitalBankMemberhrth:NewCreditFacilityMember2023-12-292023-12-290000045919us-gaap:RevolvingCreditFacilityMemberhrth:TexasCapitalBankMemberhrth:NewCreditFacilityMember2025-06-242025-06-240000045919us-gaap:RevolvingCreditFacilityMemberhrth:TexasCapitalBankMemberhrth:NewCreditFacilityMember2025-06-240000045919us-gaap:LetterOfCreditMemberhrth:TexasCapitalBankMemberhrth:NewCreditFacilityMember2021-12-210000045919us-gaap:RevolvingCreditFacilityMemberhrth:TexasCapitalBankMember2021-12-212021-12-210000045919hrth:TexasCapitalBankMember2025-06-300000045919hrth:TexasCapitalBankMember2025-01-012025-06-300000045919hrth:NewCreditFacilityMember2024-12-310000045919hrth:NewCreditFacilityMember2025-06-3000000459192020-12-310000045919hrth:QualifiedPlanIIMemberus-gaap:QualifiedPlanMember2025-06-300000045919hrth:QualifiedPlanIIMember2025-01-012025-06-300000045919us-gaap:NonqualifiedPlanMember2025-01-012025-06-300000045919us-gaap:NonqualifiedPlanMember2024-01-012024-06-300000045919us-gaap:EmployeeStockOptionMember2025-04-012025-06-300000045919us-gaap:EmployeeStockOptionMember2024-04-012024-06-300000045919us-gaap:RestrictedStockMember2025-04-012025-06-300000045919us-gaap:RestrictedStockMember2024-04-012024-06-300000045919us-gaap:EmployeeStockOptionMember2025-01-012025-06-300000045919us-gaap:EmployeeStockOptionMember2024-01-012024-06-300000045919us-gaap:RestrictedStockMember2025-01-012025-06-300000045919us-gaap:RestrictedStockMember2024-01-012024-06-300000045919us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2024-12-310000045919us-gaap:AccumulatedTranslationAdjustmentMember2024-12-310000045919us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2025-01-012025-06-300000045919us-gaap:AccumulatedTranslationAdjustmentMember2025-01-012025-06-300000045919us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2025-06-300000045919us-gaap:AccumulatedTranslationAdjustmentMember2025-06-300000045919us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-12-310000045919us-gaap:AccumulatedTranslationAdjustmentMember2023-12-310000045919us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2024-01-012024-06-300000045919us-gaap:AccumulatedTranslationAdjustmentMember2024-01-012024-06-300000045919us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2024-06-300000045919us-gaap:AccumulatedTranslationAdjustmentMember2024-06-300000045919srt:ScenarioForecastMember2024-01-012025-12-3100000459192024-01-012024-12-310000045919hrth:ConsultingAndEmployeeExpenseMember2025-04-012025-06-300000045919hrth:ConsultingAndEmployeeExpenseMember2024-04-012024-06-300000045919hrth:ConsultingAndEmployeeExpenseMember2025-01-012025-06-300000045919hrth:ConsultingAndEmployeeExpenseMember2024-01-012024-06-300000045919us-gaap:EmployeeSeveranceMember2025-04-012025-06-300000045919us-gaap:EmployeeSeveranceMember2024-04-012024-06-300000045919us-gaap:EmployeeSeveranceMember2025-01-012025-06-300000045919us-gaap:EmployeeSeveranceMember2024-01-012024-06-300000045919us-gaap:FacilityClosingMember2025-04-012025-06-300000045919us-gaap:FacilityClosingMember2024-04-012024-06-300000045919us-gaap:FacilityClosingMember2025-01-012025-06-300000045919us-gaap:FacilityClosingMember2024-01-012024-06-300000045919hrth:ConsultingAndEmployeeExpenseMember2024-12-310000045919us-gaap:EmployeeSeveranceMember2024-12-310000045919hrth:FacilityAssetImpairmentAndOtherExpenseMember2024-12-310000045919hrth:FacilityAssetImpairmentAndOtherExpenseMember2025-01-012025-06-300000045919hrth:ConsultingAndEmployeeExpenseMember2025-06-300000045919us-gaap:EmployeeSeveranceMember2025-06-300000045919hrth:FacilityAssetImpairmentAndOtherExpenseMember2025-06-300000045919us-gaap:RelatedPartyMember2025-01-012025-06-300000045919us-gaap:IntersegmentEliminationMember2025-04-012025-06-300000045919us-gaap:CorporateNonSegmentMember2025-04-012025-06-300000045919us-gaap:IntersegmentEliminationMember2024-04-012024-06-300000045919us-gaap:CorporateNonSegmentMember2024-04-012024-06-300000045919us-gaap:IntersegmentEliminationMember2025-01-012025-06-300000045919us-gaap:CorporateNonSegmentMember2025-01-012025-06-300000045919us-gaap:IntersegmentEliminationMember2024-01-012024-06-300000045919us-gaap:CorporateNonSegmentMember2024-01-012024-06-30

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


x			QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2025


o			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-07120

HARTE HANKS, INC.

(Exact name of registrant as specified in its charter)


Delaware	1 Executive Drive, Chelmsford, MA 01824	74-1677284
(State or other jurisdiction of	(Address of principal executive offices,	(I.R.S. Employer
incorporation or organization)	including zip code)	Identification Number)

(512) 434-1100

(Registrant’s telephone number including area code)

None

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:


Title of Each Class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	HHS	NASDAQ

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark if the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes o No x

The number of shares outstanding of the issuer’s common stock as of July 31, 2025 was 7,414,794 shares.

Table of Contents

HARTE HANKS, INC. AND SUBSIDIARIES

TABLE OF CONTENTS

FORM 10-Q REPORT

For the Quarterly Period Ended June 30, 2025


PART 1. FINANCIAL INFORMATION			3
Item 1. Condensed Consolidated Financial Statements			3
Condensed Consolidated Balance Sheets			3
Condensed Consolidated Statements of Comprehensive Loss (Unaudited)			4
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited)			5
Condensed Consolidated Statements of Cash Flows (Unaudited)			6
Notes to Condensed Consolidated Financial Statements (Unaudited)			7
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			20
Item 3. Quantitative and Qualitative Disclosures About Market Risk			26
Item 4. Controls and Procedures			26
PART II. OTHER INFORMATION			27
Item 1. Legal Proceedings			27
Item 1a. Risk Factors			27
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			27
Item 3. Defaults Upon Senior Securities			27
Item 4. Mine Safety Disclosures			27
Item 5. Other Information			27
Item 6. Exhibits			28

Table of Contents

PART 1. FINANCIAL INFORMATION

Item 1. Condensed Consolidated Financial Statements

Harte Hanks, Inc. and Subsidiaries Condensed Consolidated Balance Sheets


In thousands, except shares and per share amounts	June 30, 2025		December 31, 2024
ASSETS	(unaudited)
Current assets
Cash and cash equivalents	$	4,757	$	9,934
Accounts receivable (less allowance for doubtful accounts of $95 and $50 at June 30, 2025 and December 31, 2024, respectively)	34,418		31,648
Contract assets and unbilled accounts receivable	6,214		8,215
Prepaid expenses	2,719		1,511
Prepaid income taxes and income tax receivable	938		938
Other current assets	951		1,368
Total current assets	49,997		53,614
Property, plant and equipment (less accumulated depreciation of $39,840 and $37,635, respectively)	7,953		8,956
Right-of-use assets	20,665		22,460
Other assets
Intangible assets, net	466		563
Goodwill	295		295
Deferred tax assets, net	15,126		15,177
Other long-term assets	513		717
Total other assets	16,400		16,752
Total assets	$	95,015	$	101,782
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable and accrued expenses	$	18,610	$	21,832
Accrued payroll and related expenses	3,726		3,210
Deferred revenue and customer advances	1,811		1,589
Customer postage and program deposits	1,441		1,625
Other current liabilities	1,910		3,145
Current portion of lease liabilities	3,721		3,736
Total current liabilities	31,219		35,137
Pension liabilities - Qualified plans	4,590		5,445
Pension liabilities - Nonqualified plan	16,682		17,103
Long-term lease liabilities, net of current portion	19,004		20,860
Other long-term liabilities	1,280		1,548
Total liabilities	72,775		80,093
Stockholders’ equity
Common stock, $1 par value, 25,000,000 shares authorized; 12,221,484 shares issued, 7,406,421 and 7,357,450 shares outstanding at June 30, 2025 and December 31, 2024, respectively	12,221		12,221
Additional paid-in capital	111,844		124,194
Retained earnings	813,896		814,623
Less treasury stock, 4,815,063 shares at cost at June 30, 2025 and 4,864,034 shares at cost at December 31, 2024	(902,442)		(915,752)
Accumulated other comprehensive loss	(13,279)		(13,597)
Total stockholders’ equity	22,240		21,689
Total liabilities and stockholders’ equity	$	95,015	$	101,782
See Accompanying Notes to Condensed Consolidated Financial Statements

Table of Contents

Harte Hanks, Inc. and Subsidiaries Condensed Consolidated Statements of Comprehensive Loss (Unaudited)


	Three months ended June 30,				Six months ended June 30,
In thousands, except per share amounts	2025		2024		2025		2024
Revenue	$	38,631	$	45,035	$	80,192	$	90,483
Operating expenses
Labor	19,445		22,682		39,244		46,167
Production and distribution	12,400		13,679		26,457		27,429
Advertising, selling, general and administrative	5,538		5,852		11,382		11,791
Restructuring expenses	149		427		987		1,280
Depreciation and amortization expense	1,065		1,022		2,128		2,068
Total operating expenses	38,597		43,662		80,198		88,735
Operating income (loss)	34		1,373		(6)		1,748

Other expenses, net
Interest expense, net	61		39		114		50
Pension plan termination charges	—		38,217		—		38,217
Other expenses (income), net	386		(45)		900		561
Total other expenses, net	447		38,211		1,014		38,828
Loss before income taxes	(413)		(36,838)		(1,020)		(37,080)
Income tax benefit	(78)		(9,004)		(293)		(9,075)
Net loss	(335)		(27,834)		(727)		(28,005)

Loss per common share
Basic and diluted	$	(0.05)	$	(3.84)	$	(0.10)	$	(3.86)


Weighted average shares used to compute loss per share
Basic and diluted	7,382		7,257		7,371		7,246


Comprehensive loss, net of tax:
Net loss	$	(335)	$	(27,834)	$	(727)	$	(28,005)

Adjustment to pension liability, net	44		29,179		209		29,524
Foreign currency translation adjustment	73		(1,403)		109		(1,937)
Total other comprehensive income, net of tax	$	117	$	27,776	$	318	$	27,587

Comprehensive loss	$	(218)	$	(58)	$	(409)	$	(418)

See Accompanying Notes to Condensed Consolidated Financial Statements

Table of Contents

Harte Hanks, Inc. and Subsidiaries Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited)


In thousands	Common Stock		Additional Paid-in Capital		Retained Earnings		Treasury Stock		Accumulated Other Comprehensive Loss		Total Stockholders’ Equity
Balance at December 31, 2024	$	12,221	$	124,194	$	814,623	$	(915,752)	$	(13,597)	$	21,689
Stock-based compensation	—		(49)		—		—		—		(49)
Vesting of RSUs	—		(2,353)		—		2,325		—		(28)
Net loss	—		—		(392)		—		—		(392)
Other comprehensive income	—		—		—		—		201		201
Balance at March 31, 2025	$	12,221	$	121,792	$	814,231	$	(913,427)	$	(13,396)	$	21,421
Stock-based compensation	—		220		—		—		—		220
Vesting of RSUs	—		(11,006)		—		10,985		—		(21)
Recovery of short swing profits, net of tax	—		838		—		—		—		838
Net loss	—		—		(335)		—		—		(335)
Other comprehensive income	—		—		—		—		117		117
Balance at June 30, 2025	$	12,221	$	111,844	$	813,896	$	(902,442)	$	(13,279)	$	22,240


In thousands	Common Stock		Additional Paid-in Capital		Retained Earnings		Treasury Stock		Accumulated Other Comprehensive Loss		Total Stockholders’ Equity
Balance at December 31, 2023	$	12,221	$	157,889	$	844,920	$	(951,083)	$	(44,090)	$	19,857
Stock-based compensation	—		552		—		—		—		552
Vesting of RSUs	—		(5,264)		—		5,177		—		(87)
Net loss	—		—		(171)		—		—		(171)
Other comprehensive loss	—		—		—		—		(189)		(189)
Balance at March 31, 2024	$	12,221	$	153,177	$	844,749	$	(945,906)	$	(44,279)	$	19,962
Stock-based compensation	—		734		—		—		—		734
Vesting of RSUs	—		(8,208)		—		8,178		—		(30)

Net loss	—		—		(27,834)		—		—		(27,834)
Other comprehensive income	—		—		—		—		27,776		27,776
Balance at June 30, 2024	$	12,221	$	145,703	$	816,915	$	(937,728)	$	(16,503)	$	20,608

See Accompanying Notes to Condensed Consolidated Financial Statements

Table of Contents

Harte Hanks, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited)


	Six Months Ended June 30,
In thousands	2025			2024
Cash Flows from Operating Activities
Net loss	(727)			$	(28,005)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization expense	2,128			2,068
Stock-based compensation	171			1,286
Net pension (payment) cost	(1,079)		(1)	31,947
Deferred income taxes	(51)			(10,219)
Changes in assets and liabilities:
Accounts receivable and contract assets	(769)			3,565
Prepaid expenses, income tax receivable and other current assets	(536)			(237)
Accounts payable and accrued expenses	(3,623)			(2,969)
Deferred revenue and customer advances	222			289
Customer postage and program deposits	(184)			(497)
Other accrued expenses and liabilities	(1,220)			(1,312)
Net cash used in operating activities	(5,668)			(4,084)

Cash Flows from Investing Activities
Purchases of property, plant and equipment	(328)			(1,208)
Proceeds from sale of property, plant and equipment	—			1
Net cash used in investing activities	(328)			(1,207)

Cash Flows from Financing Activities


Payment of finance leases	(79)			(45)
Recovery of short-swing profit from stockholders	838			—
Treasury stock activities	(49)			(117)
Net cash provided by (used in) financing activities	710			(162)

Effect of exchange rate changes on cash, cash equivalents and restricted cash	109			(1,937)

Net decrease in cash and cash equivalents and restricted cash	(5,177)			(7,390)
Cash and cash equivalents and restricted cash at beginning of period	9,934			18,864
Cash and cash equivalents and restricted cash at end of period	$	4,757	(2)	$	11,474

Supplemental disclosures
Cash paid for (received) interest	$	82		$	(45)
Cash paid for income taxes, net	$	1,186		$	888
Non-cash investing and financing activities
Purchases of property, plant and equipment included in accounts payable	$	647		$	1,254

(1) This amount is comprised of the below balances:
Pension Plan I termination payments and charges	$	—		31,879
Normal pension plan activities	(1,079)			$	68
Net Pension cost, net	$	(1,079)		$	31,947
(2) This amount is comprised of the below balances:
Cash and cash equivalents	$	4,757		$	10,974
Cash held in Escrow account included in other assets	—			500
Cash and cash equivalents at end of period	$	4,757		$	11,474

See Accompanying Notes to Condensed Consolidated Financial Statements

Table of Contents

Harte Hanks, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

Note A - Overview and Significant Accounting Policies

Background

Harte Hanks, Inc. together with its subsidiaries (“Harte Hanks,” “Company,” “we,” “our,” or “us”) is a leading global customer experience company. With offices in North America, Asia-Pacific and Europe, Harte Hanks works with some of the world’s most respected brands.

Segment Reporting

The Company operates three reportable segments: Marketing Services; Customer Care; and Fulfillment & Logistics Services. Our President is considered to be our chief operating decision maker (CODM). Our President reviews our operating results on an aggregate basis for purposes of allocating resources and evaluating financial performance by using the three financial measures: revenue, operating income and operating income plus depreciation and amortization (EBITDA).

Accounting Principles

Our unaudited interim condensed consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). In the opinion of management, the unaudited interim condensed consolidated financial statements reflect all adjustments of a normal recurring nature that are necessary for a fair presentation of the results for the interim periods presented. Interim results are not necessarily indicative of results for a full year. The information included in this Form 10-Q should be read in conjunction with information included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 (the “2024 10-K”).

Consolidation

The accompanying unaudited interim condensed consolidated financial statements include the accounts of Harte Hanks, Inc. and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. As used in this report, the terms “Harte Hanks,” “the Company,” “we,” “us,” or “our” may refer to Harte Hanks, Inc., one or more of its consolidated subsidiaries, or all of them taken as a whole, as the context may require.

Interim Financial Information

The condensed consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions to Form 10-Q and Rule 8-01 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included.

Use of Estimates

Preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. Actual results could differ materially from those estimates due to uncertainties. Such estimates include, but are not limited to, estimates related to revenue recognition; income taxes; goodwill and intangible assets impairment. On an ongoing basis, management reviews its estimates and assumptions based on currently available information. Changes in facts and circumstances could result in revised estimates and assumptions.

Operating Expense Presentation in Condensed Consolidated Statements of Comprehensive Loss

The “Labor” line in the Condensed Consolidated Statements of Comprehensive Loss includes all employee payroll and benefits costs, including stock-based compensation and temporary labor costs. The “Production and distribution” and “Advertising, selling, general and administrative” lines do not include any labor, depreciation, or amortization expense. Certain labor costs are included in restructuring expense, please see Note M - Restructuring Activities for details.

Table of Contents

Revenue Recognition

We recognize revenue upon the transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to be entitled to receive in exchange for those products or services based on the relevant contract. We apply the following five-step revenue recognition model:

•Identification of the contract, or contracts, with a customer

•Identification of the performance obligations in the contract

•Determination of the transaction price

•Allocation of the transaction price to the performance obligations in the contract

•Recognition of revenue when (or as) we satisfy the performance obligation

Certain client programs provide for adjustments to billings based upon whether we achieve certain performance criteria. In these circumstances, revenue is recognized when the foregoing conditions are met. We record revenue net of any taxes collected from customers and subsequently remitted to governmental authorities. Any payments received in advance of the performance of services or delivery of the product are recorded as deferred revenue until such time as the services are performed or the product is delivered. Costs incurred for search engine marketing solutions payable to the engine host and postage costs of mailings are billed to our clients and are not directly reflected in our revenue.

Revenue from agency and digital services, direct mail, logistics, fulfillment and contact center is recognized when the work is performed. Fees for these services are determined by the terms set forth in each contract. These fees are typically a set fixed price or rate by transaction occurrence, service provided, time spent, or product delivered.

For arrangements requiring design and build of a database, revenue is not recognized until client acceptance occurs. Up-front fees billed during the setup phase for these arrangements are deferred and direct build costs are capitalized. Pricing for these types of arrangements is typically based on a fixed price determined in the contract. Revenue from other database marketing solutions is recognized ratably over the contractual service period. Pricing for these services is typically based on a fixed price per month or per contract.

Fair Value of Financial Instruments

Financial Accounting Standards Board ("FASB") Accounting Standard Codification ("ASC") 820, Fair Value Measurements and Disclosures, (“ASC 820”) defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 also establishes a fair value hierarchy that prioritizes the inputs used in valuation methodologies into three levels:


Level 1			Quoted prices in active markets for identical assets or liabilities.
Level 2			Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3			Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Because of their maturities and/or variable interest rates, certain financial instruments have fair values approximating their carrying values. These instruments include cash and cash equivalents and restricted cash, accounts receivable, trade payables, and debt. The fair value of the assets in our funded pension plan is discussed in Note H, Employee Benefit Plans.

Leases

We determine if an arrangement is a lease at its inception. Operating and finance leases are included in the lease right-of-use (“ROU”) assets and in the current portion and long-term portion of lease liabilities on our condensed consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date of each lease based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit interest rate, we use our incremental borrowing rate based on the information available at the commencement date of each lease to determine the present value of lease payments. The operating lease ROU assets also include any lease payments made and exclude lease incentives. Our lease terms may include options to extend or terminate the lease, which are included in the lease ROU assets when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components, which are generally accounted for separately. For certain real estate leases, we account for the lease and non-lease components as a single lease component.

Table of Contents

Note B - Recent Accounting Pronouncements

Recent Accounting Guidance Not Yet Adopted

In December 2023, the FASB issued Accounting Standards Update (“ASU”) 2023-09, which requires enhanced income tax disclosures, including disaggregation of information in the rate reconciliation table and disaggregated information related to income taxes paid. The amendments in ASU 2023-09 are effective for the Company beginning with the upcoming fiscal year ending December 31, 2025. The Company is currently evaluating the impact that this update will have on its disclosures in the consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses (Subtopic 220-40). The ASU requires entities to disclose the disaggregated information for specific expense categories, including purchases of inventory, employee compensation, depreciation, and amortization, within the relevant income statement captions. This ASU also requires disclosure of the total amount of selling expenses along with the definition of what constitutes selling expenses. The ASU is effective for annual periods beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Adoption of this ASU can either be applied prospectively to consolidated financial statements issued for reporting periods after the effective date of this ASU or retrospectively to any or all prior periods presented in the consolidated financial statements. Early adoption is also permitted. Upon adoption, this ASU will likely require additional disclosures to be included in our consolidated financial statements. We are currently evaluating the provisions of this ASU.

In July 2025, the FASB issued ASU 2025-05, which amends ASC 326-20 to provide a practical expedient (for all entities) relating to the estimation of expected credit losses for current accounts receivable and current contract assets that arise from transactions accounted for under ASC 606. ASU 2025-05 is effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods, with early adoption permitted. The Company is currently evaluating the impact that this ASU will have on our consolidated financial statements.

No other new accounting pronouncements recently adopted or issued had or are expected to have a material impact on the condensed consolidated financial statements.

Note C - Revenue from Contracts with Customers

Our contracts with customers state the terms of sale, including the description, quantity, and price of the product sold or service provided. Payment terms can vary by contract, but the period between invoicing and when payment is due is not significant. The Company's contracts with its customers generally do not include rights of return or a significant financing component.

We present sales taxes assessed on revenue-producing transactions on a net basis.

Disaggregation of Revenue

We disaggregate revenue by three key revenue streams which are aligned with our reportable segments. The nature of the services offered by each key revenue stream is different. The following table summarizes revenue from contracts with customers for the three and six months ended June 30, 2025 and 2024 by our three reportable segments:


	Three months ended June 30,				Six months ended June 30,
In thousands	2025		2024		2025		2024
Marketing Services	$	8,662	$	12,152	$	17,443	$	25,735
Customer Care	11,845		12,384		24,847		24,826
Fulfillment & Logistics Services	18,124		20,499		37,902		39,922
Total Revenues	$	38,631	$	45,035	$	80,192	$	90,483

During the three and six months ended June 30, 2025 and 2024, the Company recognized revenue of $1.0 million and $1.7 million, and $4.9 million and $9.9 million, respectively, from performance obligations satisfied at a point in time. The remaining revenue recognized in both 2025 and 2024 was recognized over time. Our contracts with customers may consist of multiple performance obligations. If the contract contains a single performance obligation, the entire transaction price is

Table of Contents

allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price (“SSP”) basis unless the transaction price is variable and meets the criteria to be allocated entirely to a performance obligation or to a distinct good or service that forms part of a single performance obligation. For most performance obligations, we determine SSP based on the price at which the performance obligation is sold separately. Although uncommon, if the SSP is not observable through past transactions, we estimate the SSP taking into account available information such as market conditions and internally approved pricing guidelines related to the performance obligations. Further discussion of other performance obligations in each of our major revenue streams follows:

Marketing Services

Our Marketing Services segment delivers strategic planning, data strategy, performance analytics, creative development and execution, technology enablement, marketing automation, and database management. We create relevancy by leveraging data, insight, and our extensive experience in leading clients as they engage their customers through digital, traditional, and emerging channels. The customer can choose other services to supplement and support their own in-house sales team. These services may range from leveraging data for lead generation, and outsourcing the design and testing of sales play, to full hiring and managing of a dedicated internal sales team. With these services, we help clients build deep customer relationships, create connected customer experiences, and optimize each and every customer touch point in order to deliver desired business outcomes.

Most marketing services performance obligations are satisfied over time and often offered on a per project basis. We have concluded that the best approach to measure the progress toward completion of the project-based performance obligations is the input method, which is based on either the costs or labor hours incurred to date depending upon whether costs or labor hours more accurately depict the transfer of value to the customer.

Our database solutions are built around centralized marketing databases with services rendered to build custom databases, database hosting services, customer or target marketing lists and data processing services.

These performance obligations, including services rendered to build a custom database, database hosting services, customer or target marketing lists and data processing services, may be satisfied over time or at a point in time. We provide software as a service (“SaaS”) solutions to host data for customers and have concluded that these solutions are stand-ready obligations to be recognized over time on a monthly basis. Our promise to provide certain data related services meets the over-time recognition criteria because our services do not create an asset with an alternative use, and we have an enforceable right to payment. For performance obligations recognized over time, we choose either the input (i.e., labor hour) or output method (i.e., number of customer records) to measure the progress toward completion depending on the nature of the services provided. Some of our other data-related services do not meet the over-time criteria and are therefore, recognized at a point-in-time, typically upon the delivery of a specific deliverable.

Our contracts may include outsourced print production work for our clients. These contracts may include a promise to purchase postage on behalf of our clients. In such cases, we have determined we are an agent, rather than principal and therefore recognize net consideration as revenue.

Customer Care

We deliver customer care services in the United States, Asia, and Europe to provide advanced solutions such as voice, SMS/chat, email, integrated voice response, web self-service, social cloud monitoring, and analytics.

Performance obligations are stand-ready obligations and are satisfied over time. With regard to account management and SaaS, we use a time-elapsed output method to recognize revenue. For performance obligations where we charge customers a transaction-based fee, we use the output method based on transaction quantities. In most cases, our contracts provide us the right to invoice for services provided, therefore, we generally use the “as invoiced” practical expedient to recognize revenue associated with these performance obligations unless significant discounts are offered in a contract and prices for services do not represent their SSPs.

Fulfillment & Logistics Services

Our services, delivered internally and with our partners, include printing, lettershop, advanced mail optimization (including commingling services), logistics and transportation optimization, monitoring and tracking, to support traditional and

Table of Contents

specialized mailings. Our print and fulfillment centers in Massachusetts and Kansas provide custom kitting services, print on demand, product recalls, trade marketing fulfillment, ecommerce product fulfillment, sampling programs, and freight optimization, thereby allowing our customers to distribute literature and other marketing materials.

Most performance obligations offered within this revenue stream are satisfied over time and utilize the input or output method, depending on the nature of the service, to measure progress toward satisfying the performance obligation. For performance obligations where we charge customers a transaction-based fee, we utilize the output method based on the quantities fulfilled. Services provided through our fulfillment centers are typically priced at a per transaction basis and our contracts provide us the right to invoice for services provided and reflects the value to the customer of the services transferred to date. In most cases, we use the “as invoiced” practical expedient to recognize revenue associated with these performance obligations unless significant discounts are offered in a contract and prices for services do not represent their standalone selling prices. Our direct mail business contracts may have included a promise to purchase postage on behalf of our clients; in such cases, we have determined we are an agent, rather than principal and therefore recognize net consideration as revenue.

Transaction Price Allocated to Future Performance Obligations

We have elected to apply certain optional exemptions that limit the disclosure requirements over remaining performance obligations at period end to exclude the performance obligations that have an original expected duration of one year or less, transactions using the “as invoiced” practical expedient, or when a performance obligation is a series and we have allocated the variable consideration directly to the services performed. As of June 30, 2025, we had no transaction prices allocated to unsatisfied or partially satisfied performance obligations.

SEC Form 10-Q filed by Harte Hanks Inc.