Harte Hanks Q2 Revenue Down 14.2%, Company Extends Line of Credit with Texas Capital Bank.

Harte Hanks, a marketing services provider, reported a 14.2% decline in Q2 revenue to $45M, missing street estimates of $47.5M. The company also announced executive changes, including the appointment of Sharona Sankar-King as Chief Customer and Data Officer. Harte Hanks has been expanding its services, including acquiring an exclusive license to ADS Data Direct's medical ailment database and partnering with Outreach to provide sales solutions.

Harte Hanks (NASDAQ:HHS), a leading global customer experience company, reported its second-quarter 2025 financial results, reflecting mixed performance with operational discipline despite revenue challenges. The company reported total revenue of $38.6 million, a decline of 14.2% compared to Q2 2024. The net loss was $0.3 million ($0.05 per share), while EBITDA stood at $1.1 million. Revenue declines were observed across all divisions: Customer Care revenue fell 4.4% to $11.8 million, Fulfillment & Logistics Services dropped 11.6% to $18.1 million, and Marketing Services decreased 28.7% to $8.7 million. Despite these declines, Harte Hanks maintained a strong financial position with $4.8 million in cash, no debt, and $24.0 million available credit capacity [1].

The company attributed the revenue decline to pricing pressure, volume reductions, and timing fluctuations. Harte Hanks also announced executive changes, including the appointment of Sharona Sankar-King as Chief Customer and Data Officer. Additionally, the company has been expanding its services by acquiring an exclusive license to ADS Data Direct's medical ailment database and partnering with Outreach to provide sales solutions. The strategic focus on "Project Elevate" for operational efficiencies and cost control appears necessary given the revenue declines, with restructuring charges of $0.1 million tied to this initiative [1].

The company's cash position improved by late July, with a cash balance of $9.9 million, indicating that cost-cutting measures may be bearing fruit. Despite the challenging revenue environment, Harte Hanks maintained positive EBITDA and a healthy balance sheet, providing a strong foundation for future growth and innovation. The company continues to execute on its long-term value strategy, focusing on operational efficiencies, new customer acquisition, and cost controls to support sustainable profitability [1].

References:
[1] https://www.stocktitan.net/news/HHS/harte-hanks-reports-second-quarter-2025-2yswim7sw36p.html