Harte Hanks Q2 revenue down 11% YoY, maintains positive EBITDA, debt-free balance sheet.

• Harte Hanks reports Q2 2025 financial results • Positive EBITDA despite top-line headwinds • Debt-free balance sheet and healthy cash position • Focused on multi-year transformation strategy • Project Elevate drives operational efficiencies • New customer acquisition and client expansion efforts • Maintaining strong cost control measures

Harte Hanks (NASDAQ:HHS) reported its second-quarter 2025 financial results, revealing a mixed performance with declining revenue across all segments but maintaining positive EBITDA and a strong balance sheet. The company posted a net loss of $0.3 million ($0.05 per share) and EBITDA of $1.1 million, despite a 14.2% revenue decline to $38.6 million compared to Q2 2024.

Segment performance showed declines across Customer Care, Fulfillment & Logistics Services, and Marketing Services. 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 challenges, Harte Hanks maintained a positive EBITDA of $1.1 million and a debt-free balance sheet with $4.8 million in cash and zero debt.

Harte Hanks attributes some of the revenue declines to timing fluctuations and project repositioning. The company is focused on its multi-year transformation strategy, which includes driving operational efficiencies through Project Elevate, accelerating new customer acquisition, expanding relationships with existing clients, and maintaining strong cost controls.

The company's untapped $24 million credit facility provides financial flexibility, but the fundamental challenge remains reversing the revenue decline while maintaining profitability. Harte Hanks continues to execute on its long-term value strategy, demonstrating operational discipline and a strong financial foundation.

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