Harte Hanks 2025 Q3 Earnings Sharp Net Loss Amid Revenue Decline

The company reported results that significantly underperformed expectations, marked by a steep revenue contraction and a substantial net loss. Management provided cautious guidance, signaling ongoing challenges in reversing the downturn.

Revenue

Harte Hanks’ total revenue fell 17.0% year-over-year to $39.52 million in Q3 2025. The decline spanned all business segments: Marketing Services generated $8.83 million, Customer Care contributed $11.55 million, and Fulfillment & Logistics Services accounted for $19.14 million. Restructuring expenses and unallocated corporate costs were both reported at $0. The broad-based revenue drop reflects persistent headwinds across its core operations.

Earnings/Net Income

The company swung to a loss of $0.31 per share in Q3 2025, a dramatic 1650.0% negative change from a $0.02 profit in the prior-year period. Net income plummeted to a $2.29 million loss, representing a 1709.9% deterioration from $142,000 in 2024 Q3. This stark shift underscores the severity of operational challenges and cost pressures.

Price Action

Harte Hanks’ stock price posted mixed performance in the immediate aftermath. Shares rose 3.55% on the latest trading day and 5.42% over the preceding week, but the month-to-date decline of 18.21% highlights ongoing investor skepticism.

Post-Earnings Price Action Review

The strategy of purchasing Harte Hanks (HHS) shares after a quarterly revenue drop and holding for 30 days showed poor performance over the past three years. The average return during this period was -3.5%, with a maximum return of -1.2% and a minimum return of -6.9%. This indicates that the strategy did not yield positive returns and was not an effective approach.

CEO Commentary

CEO David Fisher emphasized progress in the Customer Care segment, citing the new Greenville, South Carolina facility and the Samsung partnership as pivotal to pipeline replenishment. “This engagement exemplifies the higher-value partnerships we’re targeting,” he noted. CFO David Garrison highlighted cost discipline and flexibility in navigating program turnover, stating the company expects Q4 to reflect benefits from new business wins and operational efficiencies.

Guidance

Management reaffirmed full-year 2025 positive EBITDA expectations, driven by cost reductions and operational efficiencies. The company anticipates sequential improvement in Q4 as the pipeline converts, with a focus on leveraging the Amazon Connect platform to drive Customer Care growth.

Additional News

Harte Hanks announced a strategic partnership with Samsung Electronics America, serviced through its new Greenville facility, marking a key milestone in its growth strategy. The company also reiterated its commitment to Project Elevate, a transformation program aimed at reallocating savings into sales and technology. Additionally, the firm’s debt-free balance sheet and $24.0 million credit line capacity were highlighted as strengths for future investments and shareholder value initiatives.