Revenue drops 10% at Harte Hanks (NASDAQ: HHS) as Q1 2026 loss widens

Rhea-AI Filing Summary

Harte Hanks, Inc. reported softer results for the quarter ended March 31, 2026. Revenue was $37.3 million, down 10.3% from $41.6 million, driven mainly by a 16.6% decline in Fulfillment & Logistics and a 9.9% drop in Revenue Solutions, while Customer Care slipped 1.1%.

Operating expenses fell 8.6% to $38.0 million, but the company still posted an operating loss of $0.8 million versus a near breakeven loss a year earlier. Net loss widened to $0.6 million, or $(0.08) per share, compared with a $(0.05) loss.

Harte Hanks continued its "Project Elevate" restructuring, recording $0.2 million of charges in the quarter and $10.0 million cumulatively through March 31, 2026. Cash and restricted cash totaled $4.5 million, with no borrowings and $24.3 million available under its revolving credit facility, supporting liquidity despite modest cash use in operations.

Insights

Equity analyst

Revenue fell 10%, losses widened slightly, but liquidity remains solid.

Harte Hanks saw Q1 2026 revenue decline to $37.3M, with the largest pressure in Fulfillment & Logistics, where sales dropped 16.6%. Operating expenses fell, helped by lower production and restructuring costs, yet the company still posted an operating loss of $0.8M.

Net loss increased to $0.6M, or $(0.08) per share, reflecting weaker volumes and lower segment profitability, especially in Customer Care and Fulfillment. However, the balance sheet shows $4.5M in cash and no drawn debt, plus $24.3M of credit availability, which provides flexibility.

Management continues "Project Elevate," targeting $16.0M in total cost reductions through 2026, with $10.0M incurred to date. Future filings will clarify how much of the planned savings translate into improved segment margins and whether revenue trends stabilize across the three operating segments.

Key Figures

Revenue: $37.3M Operating loss: $0.8M Net loss: $0.6M +5 more

8 metrics

Revenue $37.3M Three months ended March 31, 2026; down 10.3% from $41.6M

Operating loss $0.8M Three months ended March 31, 2026 vs $0.04M loss in 2025

Net loss $0.6M Q1 2026 net loss of $628K or $(0.08) per share

Fulfillment & Logistics revenue $16.5M Q1 2026 segment revenue, down 16.6% from $19.8M

Cash and restricted cash $4.5M Balance at March 31, 2026

Credit facility availability $24.3M Undrawn capacity under asset-based revolver at March 31, 2026

Restructuring charges $0.2M Q1 2026 charges under Project Elevate; $10.0M total to date

Lease liabilities $22.0M Total operating and finance lease liabilities at March 31, 2026

Key Terms

EBITDA, asset-based revolving credit facility, Secured Overnight Financing Rate (SOFR), share repurchase program, +2 more

6 terms

EBITDA financial

"There are three principal financial measures reported to our President... operating income and operating income plus depreciation and amortization (“EBITDA”)"

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

asset-based revolving credit facility financial

"entered into a three-year, $25.0 million asset-based revolving credit facility (the "Credit Facility") with Texas Capital Bank"

A loan arrangement where a lender agrees to make funds available up to a set limit that a borrower can draw, repay, and draw again, with the amount available tied to the value of specific assets (like inventory, receivables, or equipment) pledged as collateral. It matters to investors because it provides flexible working capital while limiting risk exposure: the company can fund growth or cover shortfalls quickly, but borrowing capacity can shrink if asset values fall.

Secured Overnight Financing Rate (SOFR) financial

"The loans under the Credit Facility accrue interest at a variable rate equal to the Secured Overnight Financing Rate (SOFR) plus a margin of 2.25%"

A secured overnight financing rate (SOFR) is the interest rate on very short, one‑day loans that are backed by high‑quality collateral (like government bonds), so lenders face less risk. Investors care because SOFR is a widely used benchmark that sets the cost of borrowing and the pricing of loans, bonds and derivatives; think of it as a trusted yardstick for short‑term interest costs that influences returns and valuations across markets.

share repurchase program financial

"approved a share repurchase program to maximize shareholder value with authorization to repurchase $6.5 million of the Company’s Common Stock"

A share repurchase program is when a company buys back its own shares from the marketplace. This reduces the total number of shares available, which can increase the value of each remaining share and signal confidence in the company's prospects. For investors, it often suggests that the company believes its stock is undervalued or that it has extra cash to return to shareholders.

restructuring charges financial

"We incurred total restructuring charges of $10.0 million through March 31, 2026"

Restructuring charges are costs that a company pays when it changes how it operates, like closing factories or laying off employees. These expenses are often one-time and happen to help the company become more efficient in the long run. They matter because they can affect the company's profits and how investors see its future prospects.

defined benefit pension plan financial

"we provided a defined benefit pension plan for which most of our employees were eligible to participate"

A defined benefit pension plan is a retirement program that promises participants a specific monthly payment in retirement, usually based on salary and years worked, with the employer responsible for funding and making up any shortfall. Think of it as the company guaranteeing a steady paycheck in retirement while handling the investments and risks. Investors care because shortfalls become long-term liabilities that can require large cash contributions, affect profitability and borrowing costs, and add uncertainty to a company’s financial health.

Earnings Snapshot

Revenue: $37.3M

Q1 2026

Revenue $37.3M -10.3% YoY

Operating income -$0.8M Loss vs -$0.04M prior year; operating margin -2.1%

Net income -$0.6M Net loss up 60.2% vs -$0.4M

EPS (basic and diluted) -$0.08 59.0% lower than -$0.05 in Q1 2025

10-Q Quarterly Reports: What Changes Quarter to Quarter →

0000045919--12-31false2026Q1P1Y

(1) This amount is comprised of the below balances:
Cash and cash equivalents						$	4,533					$	8,706
Restricted cash						$	5					$	276
Cash and cash equivalents and restricted cash at end of period						$	4,538					$	8,982

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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 March 31, 2026

or

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

o

Accelerated filer

o

Non-accelerated filer

x

Smaller reporting company

x

Emerging growth company

o

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 April 30, 2026 was 7,419,470 shares.

Table of Contents

HARTE HANKS, INC. AND SUBSIDIARIES

TABLE OF CONTENTS

FORM 10-Q REPORT

For the Quarterly Period Ended March 31, 2026

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			19
Item 3. Quantitative and Qualitative Disclosures About Market Risk			24
Item 4. Controls and Procedures			24
PART II. OTHER INFORMATION			24
Item 1. Legal Proceedings			24
Item 1a. Risk Factors			24
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			25
Item 3. Defaults Upon Senior Securities			25
Item 4. Mine Safety Disclosures			25
Item 5. Other Information			25
Item 6. Exhibits			26

            

2

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						March 31, 2026						December 31, 2025
ASSETS						(unaudited)
Current assets
Cash and cash equivalents, and restricted cash						$	4,538					$	5,587
Accounts receivable (less allowance of $79 and $22 at March 31, 2026 and December 31, 2025, respectively)						26,116						27,841
Unbilled accounts receivable						8,052						6,728
Contract assets						133						321
Prepaid expenses						3,015						2,363
Prepaid income taxes and income tax receivable						1,864						1,431
Other current assets						2,063						2,046
Total current assets						45,781						46,317
Property, plant and equipment, net						7,791						8,386
Operating lease right-of-use assets						18,945						19,247
Financing lease right-of-use assets						562						607
Other assets
Intangible assets, net						322						370
Goodwill						295						295
Deferred tax assets, net						16,015						16,040
Other long-term assets						694						564
Total other assets						17,326						17,269
Total assets						$	90,405					$	91,826
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable						$	11,092					$	13,096
Accrued expense						6,102						5,915
Accrued payroll and related expenses						3,323						2,749
Deferred revenue and customer advances						2,572						813
Customer postage and program deposits						849						868
Other current liabilities						2,823						3,180
Current portion of lease liabilities						3,965						3,543
Total current liabilities						30,726						30,164
Pension liabilities - Qualified plans						3,708						4,106
Pension liabilities - Nonqualified plan						16,778						16,995
Lease liabilities, net of current portion						18,050						18,861
Other long-term liabilities						1,040						1,174
Total liabilities						70,302						71,300
Stockholders’ equity
Common stock, $1 par value, 25,000,000 shares authorized;12,221,484 shares issued, 7,419,470 and 7,414,794 shares outstanding at March 31, 2026 and December 31, 2025, respectively						12,221						12,221
Additional paid-in capital						108,216						109,558
Retained earnings						813,184						813,812
Less treasury stock, 4,802,014 and 4,806,690 shares at March 31, 2026 and December 31, 2025, respectively, at cost						(898,534)						(900,085)
Accumulated other comprehensive loss						(14,984)						(14,980)
Total stockholders’ equity						20,103						20,526
Total liabilities and stockholders’ equity						$	90,405					$	91,826
See Accompanying Notes to Condensed Consolidated Financial Statements

3

Table of Contents

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

			Three Months Ended March 31,
In thousands, except per share amounts			2026						2025
Revenue			$	37,264					$	41,561
Operating expenses
Labor			19,810						19,799
Production and distribution			11,339						14,057
Advertising, selling, general and administrative			5,641						5,844
Restructuring expenses			160						838
Depreciation and amortization expense			1,082						1,063
Total operating expenses			38,032						41,601
Operating loss			(768)						(40)
Other expenses, net
Interest expense, net			69						53
Other expense, net			161						514
Total other expense, net			230						567
Loss before income taxes			(998)						(607)
Income tax benefit			(370)						(215)
Net loss			(628)						(392)
Loss per common share
Basic and Diluted			$	(0.08)					$	(0.05)
Weighted average shares used to compute loss per share
Basic and Diluted			7,416						7,360
Comprehensive loss, net of tax:
Net loss			$	(628)					$	(392)
Adjustment to pension liability, net			74						165
Foreign currency translation adjustment			(78)						36
Total other comprehensive (loss) income, net of tax			$	(4)					$	201
Comprehensive loss			$	(632)					$	(191)

See Accompanying Notes to Condensed Consolidated Financial Statements

4

Table of Contents

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

						Three Months ended March 31, 2026
In thousands						Common Stock						Additional Paid-in Capital						Retained Earnings						Treasury Stock						Accumulated Other Comprehensive Loss						Total Stockholders’ Equity
Balance at December 31, 2025						$	12,221					$	109,558					$	813,812					$	(900,085)					$	(14,980)					$	20,526
Stock-based compensation						—						218						—						—						—						218
Vesting of RSUs						—						(1,560)						—						1,551						—						(9)
Net loss						—						—						(628)						—						—						(628)
Other comprehensive loss						—						—						—						—						(4)						(4)
Balance at March 31, 2026						$	12,221					$	108,216					$	813,184					$	(898,534)					$	(14,984)					$	20,103

						Three Months ended March 31, 2025
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

See Accompanying Notes to Condensed Consolidated Financial Statements

5

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

						Three Months Ended March 31,
In thousands						2026						2025
Cash Flows from Operating Activities
Net Loss						$	(628)					$	(392)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization expense						1,082						1,063
Stock-based compensation						218						(49)
Net pension (payment) cost						(516)						(491)
Deferred income taxes						(25)						(36)
Changes in assets and liabilities:
Accounts receivable and contract assets						589						(497)
Prepaid expenses, income tax receivable and other current assets						(1,207)						(460)
Accounts payable and accrued expenses						(1,781)						(175)
Deferred revenue and customer advances						1,759						893
Customer postage and program deposits						(19)						17
Other accrued expenses and liabilities						(47)						(691)
Net cash used in operating activities						(575)						(818)
Cash Flows from Investing Activities
Purchases of property, plant and equipment						(347)						(105)
Proceeds from sale of property, plant and equipment						—						2
Net cash used in investing activities						(347)						(103)
Cash Flows from Financing Activities
Payment of finance leases						(41)						(40)
Treasury stock activities						(9)						(28)
Net cash used in financing activities						(50)						(68)
Effect of exchange rate changes on cash, cash equivalents and restricted cash						(77)						37
Net decrease in cash and cash equivalents and restricted cash						(1,049)						(952)
Cash and cash equivalents and restricted cash at beginning of period						5,587						9,934
Cash and cash equivalents and restricted cash at end of period(1)						$	4,538					$	8,982
Supplemental disclosures
Cash paid for interest						$	53					$	56
Cash received for interest						$	(1)					$	(19)
Cash paid for income taxes, net						$	300					$	196
Non-cash investing and financing activities
Purchases of property, plant and equipment included in accounts payable						$	448					$	819
(1) This amount is comprised of the below balances:
Cash and cash equivalents						$	4,533					$	8,706
Restricted cash						$	5					$	276
Cash and cash equivalents and restricted cash at end of period						$	4,538					$	8,982

See Accompanying Notes to Condensed Consolidated Financial Statements

6

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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 wholly-owned 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: Revenue Solutions; 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, 2025 (the “2025 10-K”).

Consolidation

The accompanying unaudited interim condensed consolidated financial statements include the accounts of Harte Hanks, Inc. and its wholly-owned 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 as well as pension accounting. 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.

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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 or as 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 long-term 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

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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.

Note B - Recent Accounting Pronouncements

Recent Accounting Guidance Adopted

In July 2025, the Financial Accounting Standards Board (“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 adopted ASU 2025-05 effective January 1, 2026. The adoption did not have a material impact on the Company’s Consolidated condensed financial statements.

Recent Accounting Guidance Not Yet Adopted

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. This ASU will likely result in the required additional disclosures being included in our consolidated financial statements, once adopted. We are currently evaluating the provisions of this ASU.

In September 2025, the FASB issued ASU 2025-06 to target improvements to the Accounting for Internal-Use Software, which simplifies the capitalization guidance by removing all references to software development project stages and clarifies the criteria to begin capitalizing cost. The amendment is effective for annual and interim periods beginning after December 15, 2027, though early adoption is permitted. The Company is currently evaluating the impact of this amendment on its Consolidated Financial Statements.

In December 2025, the FASB issued ASU 2025-11 to improve the guidance in Topic 270, Interim Reporting, by improving the navigability of the required interim disclosures and clarifying when that guidance is applicable. The amendment is effective for interim periods with annual reporting periods beginning after December 15, 2027, though early adoption is permitted. The Company is currently evaluating the impact of this amendment on its 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.

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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 months ended March 31, 2026 and 2025 from our three business segments.    

						Three Months Ended March 31,
In thousands						2026						2025
Revenue Solutions						$	7,916					$	8,782
Customer Care						12,857						13,001
Fulfillment & Logistics						16,491						19,778
Total						$	37,264					$	41,561

During the three months ended March 31, 2026 and 2025, the Company recognized revenue of $0.7 million and $0.7 million, respectively from performance obligations satisfied at a point in time. The remaining revenue recognized in both 2026 and 2025 was recognized in an over time pattern. Our contracts with customers may consist of multiple performance obligations. If the contract contains a single performance obligation, the entire transaction price is 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:

Revenue Solutions

Our Revenue Solutions segment delivers strategic planning, data strategy, performance analytics, creative development and execution, technology enablement, marketing automation, and database management. 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.

Most revenue solutions 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 database, 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.

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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 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.

Performance obligations offered within this revenue stream may be satisfied either over time or at a point time. Over time performance obligations utilize either 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 March 31, 2026, we had no transaction prices allocated to unsatisfied or partially satisfied performance obligations requiring disclosure, upon application of the above exemptions.

Contract Balances

We record an unbilled receivable when revenue is recognized prior to invoicing when we have an unconditional right to consideration (only the passage of time is required before payment of that consideration is due) and a contract asset when the right to payment is conditional upon our future performance such as delivery of an additional good or service (e.g. customer contract requires customer’s final acceptance of custom database solution or delivery of a final marketing strategy delivery presentation before customer payment is required). If invoicing occurs prior to revenue recognition, the unearned revenue is presented on our Condensed Consolidated Balance Sheet as a contract liability, referred to as deferred revenue.

The following table summarizes our contract balances as of March 31, 2026 and December 31, 2025:

In thousands						March 31, 2026						December 31, 2025
Unbilled accounts receivable						$	8,052					$	6,728
Contract assets						133						321
Deferred revenue and customer advances						2,572						813

Revenue recognized during the three months ended March 31, 2026 from amounts included in deferred revenue as of December 31, 2025 was approximately $0.4 million. Revenue recognized during the three months ended March 31, 2025 from amounts included in deferred revenue as of December 31, 2024 was approximately $0.8 million.

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Costs to Obtain and Fulfill a Contract

We recognize an asset for the direct costs incurred to obtain and fulfill our contracts with customers to the extent that we expect to recover these costs and if the benefit is longer than one year. These costs are amortized to expense over the expected period of the benefit in a manner that is consistent with the transfer of the related goods or services to which the asset relates. We impair the asset when recoverability is not anticipated. We capitalized a portion of commission expense, implementation and other costs that represents the cost to obtain a contract. The remaining unamortized contract costs were $0.2 million and $0.3 million as of March 31, 2026 and December 31, 2025, respectively. They are included in other current assets and other assets on our balance sheet. For the periods presented, no impairment was recognized.

Note D - Leases

We have operating and finance leases for corporate and business offices, service facilities, call centers and certain equipment. Leases with an initial term of 12 months or less are generally not recorded on the balance sheet, unless the arrangement includes an option to purchase the underlying asset, or an option to renew the arrangement, that we are reasonably certain to exercise (short-term lease). Our leases have remaining lease terms of one to seven years, some of which may include options to extend the leases for up to an additional five years.

As of March 31, 2026, assets recorded under finance and operating leases were approximately $0.6 million and $18.9 million, respectively, and accumulated amortization associated with finance leases was $0.3 million. As of December 31, 2025, assets recorded under finance and operating leases were approximately $0.6 million and $19.2 million, respectively, and accumulated amortization associated with finance leases was $0.3 million. Operating lease right of use assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. The discount rate used to determine the commencement date present value of lease payment is the interest rate implicit in the lease, or when that is not readily determinable, we utilize our incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment. Certain adjustments to the right-of-use asset may be required for items such as initial direct costs paid or incentives received.

There was no impairment of leases during the three months ended March 31, 2026 and 2025.

The following table presents supplemental balance sheet information related to our financing and operating leases:

						As of March 31, 2026
In thousands						Operating Leases						Finance Leases						Total
Right-of-use Assets						$	18,945					$	562					$	19,507
Liabilities
Short-term lease liabilities						3,796						169						3,965
Long-term lease liabilities						17,618						432						18,050
Total Lease Liabilities						$	21,414					$	601					$	22,015

						As of December 31, 2025
In thousands						Operating Leases						Finance Leases						Total
Right-of-use Assets						$	19,247					$	607					$	19,854
Liabilities:
Short-term lease liabilities						3,376						167						3,543
Long-term lease liabilities						18,400						461						18,861
Total Lease Liabilities						$	21,776					$	628					$	22,404

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For the three months ended March 31, 2026 and 2025, the components of lease expense were as follows:

						Three Months Ended March 31,
In thousands						2026						2025
Operating lease cost						$	1,173					$	1,265
Finance lease cost:
Amortization of right-of-use assets						43						45
Interest on lease liabilities						12						15
Total Finance lease cost						55						60
Variable lease cost						330						407
Total lease cost, net						$	1,558					$	1,732

Other information related to leases was as follows:

						Three Months Ended March 31,
In thousands						2026						2025
Supplemental Cash Flows Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases						$	2,160					$	2,447
Operating cash flows from finance leases						11						14
Financing cash flows from finance leases						41						40
Weighted Average Remaining Lease term:
Operating leases						5.2						6.2
Finance leases						3.4						4.3
Weighted Average Discount Rate:
Operating leases						5.91%						5.75%
Finance leases						7.77%						7.77%

The maturities of the Company’s finance and operating lease liabilities as of March 31, 2026 are as follows:

In thousands						Operating Leases						Finance Leases
Year Ending December 31,
Remainder of 2026						$	3,641					$	155
2027						4,717						206
2028						4,537						206
2029						4,579						113
2030						4,484						—
2031 and beyond						3,116						—
Total future minimum lease payments						25,074						680
Less: imputed interest						3,660						79
Total lease liabilities						$	21,414					$	601

Note E - Share Repurchase Program

On May 2, 2023, the Board of Directors of Harte Hanks approved a share repurchase program to maximize shareholder value with authorization to repurchase $6.5 million of the Company’s Common Stock. As of December 31, 2025, the share repurchase program authorization availability was $4.1 million. In the three months ended March 31, 2026 and 2025, we didn't repurchase any shares of common stock.

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Note F — Credit Facility

On December 21, 2021, the Company entered into a three-year, $25.0 million asset-based revolving credit facility (the "Credit Facility") with Texas Capital Bank ("TCB"). The Company’s obligations under the Credit Facility are guaranteed on a joint and several basis by the Company’s material subsidiaries (the “Guarantors”). The Credit Facility is secured by substantially all of the assets of the Company and the Guarantors pursuant to a Pledge and Security Agreement, dated as of December 21, 2021, among the Company, TCB and the other Guarantors party thereto (the "Security Agreement"). On June 24, 2025, the Company entered into a second amendment to the Credit Facility (the “Second Amendment”) with TCB which extended the maturity date for the Credit Facility by a period of three years to June 30, 2028. The Second Amendment also includes an accordion feature that allows the Company to seek up to a $10.0 million increase in commitments under the credit line, subject to TCB approval.

The Credit Facility provides for loans up to the lesser of (a) $25.0 million, and (b) the amount available under a “borrowing base” calculated primarily by reference to the Company's cash and cash equivalents and accounts receivables. The Credit Facility allows the Company to use up to $3.0 million of its borrowing capacity to issue letters of credit.

The loans under the Credit Facility accrue interest at a variable rate equal to the Secured Overnight Financing Rate (SOFR) plus a margin of 2.25% per annum. The interest rate was 6.03% as of March 31, 2026. The outstanding amounts advanced under the Credit Facility are due and payable in full on June 30, 2028. As of March 31, 2026 and December 31, 2025, we had letters of credit outstanding in the amount of $0.7 million. No amounts were drawn against these letters of credit at March 31, 2026. These letters of credit exist to support insurance programs relating to worker’s compensation and general liability. Unused commitment balances accrue fees at a rate of 0.25%.

As of March 31, 2026 and December 31, 2025, we had the ability to borrow $24.3 million and $24.3 million, respectively, under the Credit Facility.

Note G — Stock-Based Compensation

We maintain stock incentive plans for the benefit of certain officers, directors, and employees. Our stock incentive plans provide for the ability to issue stock options, cash stock appreciation rights, performance stock units, phantom stock units and cash performance stock units. Our cash stock appreciation rights, phantom stock units and cash performance stock units settle solely in cash and are treated as the current liability, which are adjusted each reporting period based on changes in our stock price.

Compensation expense for stock-based awards is based on the fair values of the awards on the date of grant and is recognized on a straight-line basis over the vesting period of the entire award in the “Labor” line of the Condensed Consolidated Statements of Comprehensive Loss. We recognized $0.2 million expense and $49.0 thousand benefit from stock-based compensation calculations during the three months ended March 31, 2026 and 2025, respectively.

Note H — Employee Benefit Plans

Prior to January 1, 1999, we provided a defined benefit pension plan for which most of our employees were eligible to participate (the “Qualified Pension Plan”). In conjunction with significant enhancements to our 401(k) plan, we elected to freeze benefits under the Qualified Pension Plan as of December 31, 1998.

In 1994, we adopted a non-qualified, unfunded, supplemental pension plan (the “Restoration Pension Plan”) covering certain employees, which provides for incremental pension payments so that total pension payments equal those amounts that would have been payable from the principal pension plan were it not for limitations imposed by income tax regulation. The benefits under the Restoration Pension Plan were intended to provide benefits equivalent to our Qualified Pension Plan as if such plan had not been frozen. We elected to freeze benefits under the Restoration Pension Plan as of April 1, 2014.

At the end of 2020, the Board of Directors of the Company approved the division of the Qualified Pension Plan into two distinct plans, “Qualified Pension Plan I” and “Qualified Pension Plan II.” The assets and liabilities of the Qualified Pension Plan that were attributable to certain participants in Qualified Pension Plan II were spun off and transferred into Qualified Pension Plan II effective as of the end of December 31, 2021, in accordance with Internal Revenue Code section 414(I) and ERISA Section 4044.

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The overfunded or underfunded status of our defined benefit post-retirement plans is recorded as an asset or liability on our condensed consolidated balance sheets. The funded status is measured as the difference between the fair value of plan assets and the projected benefit obligation. Periodic changes in the funded status are recognized through other comprehensive income in the Condensed Consolidated Statements of Comprehensive Income (Loss). We currently measure the funded status of our defined benefit plans as of December 31, the date of our year-end Consolidated Balance Sheets.

Net pension cost for both plans included the following components:

						Three Months Ended March 31,
In thousands						2026						2025
Interest cost						$	739					$	702
Expected return on plan assets						(537)						(470)
Recognized actuarial loss						99						137
Net periodic benefit cost						$	301					$	369

Based on current estimates, we will be required to make a $1.7 million contribution to the qualified Pension Plan II in 2026. We made $0.4 million of such $1.7 million aggregate contribution in the three months ended March 31, 2026.

We are not required to make, and do not intend to make, any contributions to our Restoration Pension Plan in 2026 other than to the extent needed to cover benefit payments. We made benefit payments under this supplemental plan of $0.5 million in the three months ended March 31, 2026 and 2025.

Note I - Income Taxes

The income tax benefit was $0.4 million and $0.2 million for the three months ended March 31, 2026 and 2025, respectively. The provision for income taxes resulted in an effective income tax rate of 29.0% for the three months ended March 31, 2026 and 35.4% for the three months ended March 31, 2025. The effective income tax rate for the three months ended March 31, 2026 and 2025 differs from the federal statutory rate of 21%, primarily due to the U.S. state income taxes and the impact of income earned in foreign jurisdictions.

Harte Hanks, or one of our subsidiaries file income tax returns in the U.S. federal, U.S. state, and foreign jurisdictions. For U.S. state, federal and foreign returns, we are no longer subject to tax examinations for years prior to 2020. The Company has reviewed all of its tax positions in order to determine whether all, a portion, or none of any related tax benefit should be recognized and has not identified or recorded any ASC 740-10 reserve.

We have elected to classify any interest expense and penalties related to income taxes within income tax expense in our Condensed Consolidated Statements of Comprehensive Loss. We did not have a significant amount of interest or penalties accrued at March 31, 2026 or December 31, 2025.

Note J - Loss Per Share

Basic income (loss) per share (“EPS”) is calculated using income available to common stockholders, divided by the weighted average number of shares outstanding during the period. Diluted earnings per share is calculated using income available to common stockholders divided by the weighted average number of shares of common stock including both shares outstanding and shares potentially issuable in connection with restricted common stock awards and stock options under our stock incentive plans.

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Reconciliations of basic and diluted EPS were as follows:

						Three Months Ended March 31,
In thousands, except per share amounts						2026						2025
Numerator:
Net loss attributable to common stockholders						$	(628)					$	(392)
Denominator:
Basic and diluted EPS denominator: weighted-average common shares outstanding						7,416						7,360
Basic and diluted loss per Common Share						$	(0.08)					$	(0.05)

For the three months ended March 31, 2026 and 2025, respectively, the following shares have been excluded from the calculation of shares used in the diluted EPS calculation: 332,460 and 315,112 shares of anti-dilutive market price options; 159,075 and 42,084 of anti-dilutive unvested restricted shares.

Note K — Comprehensive Income (Loss)

Comprehensive Income (loss) for a period encompasses net income (loss) and all other changes in equity other than from transactions with our stockholders. Changes in accumulated other comprehensive loss by component were as follows:

In thousands						Defined Benefit Pension Items						Foreign Currency Items						Total
Balance at December 31, 2025						$	(11,197)					$	(3,783)					$	(14,980)
Other comprehensive loss, net of tax, before reclassifications						—						(78)						(78)
Amounts reclassified from accumulated other comprehensive loss, net of tax, to other, net, on the condensed consolidated statements of comprehensive loss						74						—						74
Net current period other comprehensive income (loss), net of tax						74						(78)						(4)
Balance at March 31, 2026						$	(11,123)					$	(3,861)					$	(14,984)

In thousands						Defined Benefit Pension Items						Foreign Currency Items						Total
Balance at December 31, 2024						$	(10,183)					$	(3,414)					$	(13,597)
Other comprehensive income, net of tax, before reclassifications						—						36						36
Amounts reclassified from accumulated other comprehensive loss, net of tax, to other, net, on the condensed consolidated statements of comprehensive loss						165						—						165
Net current period other comprehensive income, net of tax						165						36						201
Balance at March 31, 2025						$	(10,018)					$	(3,378)					$	(13,396)

Reclassification amounts related to the defined pension plans are included in the computation of net periodic pension benefit cost (see Note H, Employee Benefit Plans).

Note L — Litigation and Contingencies

In the normal course of our business, we are obligated under some agreements to indemnify our clients as a result of third party claims that we infringe on the proprietary rights of third parties, or third party claims relating to other ad hoc contract obligations. The terms and duration of these commitments vary and, in some cases, may be indefinite, and some of these contractual commitments do not limit the maximum amount of future payments we could become obligated to make thereunder; accordingly, our actual aggregate maximum exposure related to these types of commitments is not reasonably estimable. Historically, we have not been obligated to make significant payments for obligations of this nature, and no liabilities have been recorded for these obligations in our consolidated financial statements.

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We are also subject to various claims and legal proceedings in the ordinary course of conducting our businesses and, from time to time, we may become involved in additional claims and lawsuits incidental to our businesses. We routinely assess the likelihood of adverse judgments or outcomes to these matters, as well as ranges of probable losses; to the extent losses are reasonably estimable. Accruals are recorded for these matters to the extent that management concludes a loss is probable and the financial impact, should an adverse outcome occur, is reasonable estimable.

In the opinion of management, appropriate and adequate accruals for legal matters have been made, and management believes that the probability of a material loss beyond the amounts accrued is remote. Nevertheless, we cannot predict the impact of future developments affecting our pending or future claims and lawsuits. We expense legal costs as incurred, and all recorded legal liabilities are adjusted as required as better information becomes available to us. The factors we consider when recording an accrual for contingencies include, among others: (i) the opinions and views of our general counsel and outside legal counsel; (ii) our previous experience with similar claims; and (iii) the decision of our management as to how we intend to respond to the complaints.

Note M — Restructuring Activities

During the second half of 2023, we engaged a consulting firm to help review and analyze the structure and operations of the Company. The program named "Project Elevate" involved the optimization and rationalization of our business resources as well as the partial reinvestment of savings into the Company's sales and marketing team, technology, and strategy. Reorganization cost reductions from Project Elevate during 2024 through 2026 are estimated to be $16.0 million. We incurred total restructuring charges of $10.0 million through March 31, 2026. For the three months ended March 31, 2026 and 2025, we recorded restructuring charges of $0.2 million and $0.8 million, respectively. This program has resulted in ongoing cost optimization and rationalization initiatives across the organization.

The following table summarizes the restructuring charges which are recorded in “Restructuring Expense” in the Condensed Consolidated Statement of Comprehensive Income (Loss).

						Three Months Ended March 31,
In thousands						2026						2025
Consulting and employee expense						$	68					$	47
Severance						92						692
Facility and other expenses						—						99
Total						$	160					$	838

The following table summarizes the changes in liabilities related to restructuring activities:

						Three months ended March 31, 2026
In thousands						Consulting and Employee						Severance												Total
Beginning balance:						$	—					$	328											$	328
Additions						68						92												160
Payments and adjustment						(68)						(143)												(211)
Ending balance:						$	—					$	277											$	277

Note N — Segment Reporting

Harte Hanks is a leading global customer experience company. Based on the types of products and services we provide, we have organized our operations into three business segments: Revenue Solutions, formerly known as Marketing Services, Customer Care, and Fulfillment and Logistics.

There are three principal financial measures reported to our President (the chief operating decision maker) for use in assessing segment performance and allocating resources. Those measures are revenue, operating income and operating income plus depreciation and amortization (“EBITDA”), which is a non-GAAP measure. Operating income for segment reporting, disclosed below, is revenues less operating costs and allocated corporate expenses. Segment operating expenses are generally directly attributed to our segments and include allocations of certain centrally incurred costs such as employee benefits, occupancy, information systems, accounting services, internal legal staff, and human resources administration. These costs are allocated based on actual usage or other appropriate methods. Unallocated corporate

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expenses are corporate overhead expenses not attributable to the operating groups. Interest income and expense are not allocated to the segments. The Company does not allocate assets to our reportable segments for internal reporting purposes, nor does our President evaluate operating segments using discrete asset information. The accounting policies of the segments are consistent with those described in Note B, Significant Accounting Policies.

SEC Regulation S-K 229.10(e)1(ii)(A) defines EBITDA as earnings before interest, taxes, depreciation and amortization. EBITDA is presented to provide additional information to investors about the Company’s operations on a basis consistent with the measures that the Company uses to manage its operations and evaluate its performance. Management also uses this measurement to evaluate working capital requirements. EBITDA should not be considered in isolation or as a substitute for operating income and net income prepared in accordance with U.S. GAAP or as a measure of the Company’s profitability.

The following table presents financial information by segment for the three months ended March 31, 2026:

In thousands						Revenue Solutions						Customer Care						Fulfillment & Logistics						Restructuring Expense						Unallocated Corporate						Total
Revenue						$	7,916					$	12,857					$	16,491					$	—					$	—					$	37,264
Segment labor expense						4,454						9,011						3,966						—						2,379						19,810
Other segment operating expense						1,808						2,186						10,524						—						2,462						16,980
Restructuring expense						—						—						—						160						—						160
Contribution margin (loss)						$	1,654					$	1,660					$	2,001					$	(160)					$	(4,841)					$	314
Overhead allocation						675						771						800						—						(2,246)						—
EBITDA						$	979					$	889					$	1,201					$	(160)					$	(2,595)					$	314
Depreciation and amortization						160						132						516						—						274						1,082
Operating income (loss)						$	819					$	757					$	685					$	(160)					$	(2,869)					$	(768)

The following table presents financial information by segment for the three months ended March 31, 2025:

In thousands						Revenue Solutions						Customer Care						Fulfillment & Logistics						Restructuring Expense						Unallocated Corporate						Total
Revenue						$	8,782					$	13,001					$	19,778					$	—					$	—					$	41,561
Segment labor expense						4,487						8,016						4,562						—						2,734						19,799
Other segment operating expense						2,511						2,100						12,644						—						2,646						19,901
Restructuring expense						—						—						—						838						—						838
Contribution margin (loss)						$	1,784					$	2,885					$	2,572					$	(838)					$	(5,380)					$	1,023
Overhead allocation						711						826						882						—						(2,419)						—
EBITDA						$	1,073					$	2,059					$	1,690					$	(838)					$	(2,961)					$	1,023
Depreciation and amortization						217						51						501						—						294						1,063
Operating income (loss)						$	856					$	2,008					$	1,189					$	(838)					$	(3,255)					$	(40)

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Cautionary Note Regarding Forward-Looking Statements

This report, including the Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”), contains “forward-looking statements” within the meaning of the federal securities laws. All such statements are qualified by this cautionary note, which is provided pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act. Forward-looking statements will also be included from time to time in our other public filings, press releases, our website, and oral and written presentations by management. 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. Examples include statements regarding (1) our strategies and initiatives, including actions designed to respond to market conditions and improve our performance, (2) our financial outlook for revenues, earnings (loss) per share, operating income (loss), expense related to equity-based compensation, capital resources and other financial items, if any, (3) expectations for our businesses and for the industries in which we operate, including the impact of economic conditions of the markets we serve on the marketing expenditures and activities of our clients and prospects, (4) competitive factors, (5) acquisition and development plans, (6) expectations regarding legal proceedings and other contingent liabilities, and (7) other statements regarding future events, conditions, or outcomes.

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. A discussion of some of these risks, uncertainties, assumptions, and other factors can be found in our filings with the SEC, including the factors discussed under “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 (the “2025 10-K”), “Part II - Item 1A. Risk Factors” in this Quarterly Report, and in our other reports filed or furnished with the SEC. The forward-looking statements included in this report and those included in our other public filings, press releases, our website, and oral and written presentations by management are made only as of the respective dates thereof, and we undertake no obligation to update publicly any forward-looking statement in this report or in other documents, our website, or oral statements for any reason, even if new information becomes available or other events occur in the future, except as required by law.

Overview

The following MD&A section is intended to help the reader understand the results of operations and financial condition of Harte Hanks, including any material changes in the Company’s financial condition and results of operations since December 31, 2025, and as compared with the three months ended March 31, 2025. This section is provided as a supplement to, and should be read in conjunction with, our Condensed Consolidated Financial Statements and the accompanying notes included herein as well as our 2025 10-K. Our 2025 10-K contains a discussion of other matters not included herein, such as disclosures regarding critical accounting policies and estimates, and contractual obligations. See Note A, Overview and Significant Accounting Policies, in the Notes to Condensed Consolidated Financial Statements for further information.

Harte Hanks, Inc. is a leading global customer experience company operating in three reportable segments: Revenue Solutions formerly referred to as Marketing Services, Customer Care, and Fulfillment & Logistics Services. Our mission is to partner with clients to provide them with a robust customer-experience, or CX, strategy, data-driven analytics and actionable insights combined with seamless program execution to better understand, attract, and engage their customers. Our services include strategic planning, data strategy, performance analytics, creative development and execution; technology enablement; marketing automation; B2B and B2C e-commerce; cross-channel customer care; and product, print, and mail fulfillment.

We are affected by the general, national, and international economic and business conditions in the markets where we and our customers operate. Marketing budgets are largely discretionary in nature and, as a consequence, are easier for our clients to reduce in the short-term than other expenses. Our revenues are also affected by the economic fundamentals of each industry that we serve, the expansion of alternative channels, various market factors, including the demand for services by our clients, the financial condition of and budgets available to our clients, and regulatory factors, among other factors. Due to the recent increases in inflation and interest rates throughout the globe, as well as the ongoing armed conflicts in multiple regions, there is continued uncertainty and volatility in the global economy. We remain committed to executing our multichannel strategy while also continuing to adjust our cost structure to appropriately reflect our operations and outlook.

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Management closely monitors inflation and wage pressure in the market, and the potential impact on our business. While inflation has not had a material impact on our business, it is possible a material increase in inflation could have an impact on our clients, and in turn, on our business.

Results of Operations

Operating results were as follows:

						Three Months Ended March 31,
In thousands, except per share amounts						2026						% Change						2025
Revenue						$	37,264					-10.3%						$	41,561
Operating expenses						38,032						-8.6%						41,601
Operating loss						$	(768)					1820.0%						$	(40)
Operating margin						(2.1		%)				2041.4%						(0.1		%)
Other expenses, net						230						-59.4%						567
Income tax benefit						(370)						72.1%						(215)
Net loss						$	(628)					60.2%						$	(392)
Basic and Diluted						$	(0.08)					59.0%						$	(0.05)

Consolidated Results

Three months ended March 31, 2026 vs. Three months ended March 31, 2025

Revenues

Revenues of $37.3 million decreased $4.3 million, or 10.3%, in the three months ended March 31, 2026, compared to the three months ended March 31, 2025. Revenue in our Fulfillment & Logistics Services segment decreased $3.3 million, or 16.6%, to $16.5 million. Revenue in our Revenue Solutions segment decreased $0.9 million, or 9.9%, to $7.9 million, and revenue in our Customer Care segment decreased $0.1 million, or 1.1%, to $12.9 million.

Operating Expenses

Operating expenses were $38.0 million in the three months ended March 31, 2026, a decrease of $3.6 million, or 8.6%, compared to $41.6 million in the three months ended March 31, 2025.

Production and Distribution expenses decreased $2.7 million, or 19.3%, in the three months ended March 31, 2026, primarily due to lower shipping costs due to lower logistics revenue as well as lower brokered or pass through costs associated with lower broker revenue.

Labor expense was flat in the three months ended March 31, 2026 as compared to the three months ended March 31, 2025. The higher health insurance cost was offset by reduction in salary and wages as operations were optimized to account for lower revenue.

Advertising, Selling, General and Administrative expenses decreased $0.2 million, or 3.5%, in the three months ended March 31, 2026, primarily due to lower professional fees.

Restructuring expense was $0.2 million in the three months ended March 31, 2026, which is $0.6 million lower compared to the prior year quarter of $0.8 million due to lower severance expense.

The largest components of our operating expenses are labor, transportation expenses and outsourced costs. Each of these costs is, at least in part, variable and tends to fluctuate in line with revenues and the demand for our services. Transportation rates have increased over the last few years due to demand and supply fluctuations within the transportation industry. Future changes in transportation expenses will continue to impact our total production costs and total operating expenses, and in turn our margins. Postage costs for mailings are borne by our clients and are not directly reflected in our revenues or expenses.

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Other expenses, net

Other expenses, net, for the three months ended March 31, 2026 was $0.2 million compared to $0.6 million in the prior year quarter. The $0.4 million decrease in other expense, net was mainly associated with changes in foreign currency gain and loss account.

Income Taxes

The income tax benefit of $0.4 million in the first quarter of 2026 represents an increase in income tax benefit of $0.2 million when compared to the first quarter of 2025. Our effective tax rate was 29.0% for the first quarter of 2026, a decrease of 6.4% from the effective tax rate of 35.4% for the first quarter of 2025. The effective tax rate differs from the federal statutory rate of 21.0%, primarily due to the U.S. state income taxes and income earned in foreign jurisdictions.

Segment Results

The following is a discussion and analysis of the results of our reportable segments for the three months ended March 31, 2026 and 2025. There are three principal financial measures reported to our President (the chief operating decision maker) for use in assessing segment performance and allocating resources. Those measures are revenue, operating income and operating income plus depreciation and amortization (“EBITDA”). For additional information, see Note N, Segment Reporting, in the Notes to Condensed Consolidated Financial Statements.

Revenue Solutions:

						Three Months Ended March 31,
In thousands						2026						% Change						2025
Revenue						$	7,916					(9.9)		%				$	8,782
EBITDA						979						(8.8)		%				1,073
Operating income						819						(4.3)		%				856
Operating income % of revenue						10.3		%										9.7		%

Revenue Solutions (formerly known as Marketing Services) segment revenue decreased $0.9 million, or 9.9%, from the prior year quarter due to the loss of customers and reduced demand from existing customers. Operating income for the three months ended March 31, 2026 decreased $37.0 thousand or 4.3% from the prior year quarter due to the reduced revenue.

Customer Care:

						Three Months Ended March 31,
In thousands						2026						% Change						2025
Revenue						$	12,857					(1.1)		%				$	13,001
EBITDA						889						(56.8)		%				2,059
Operating income						757						(62.3)		%				2,008
Operating income % of revenue						5.9		%										15.4		%

Customer Care segment revenue decreased $0.1 million, or 1.1%, primarily due to decreased volume from existing customers, which was partially offset by increased volume from new customers. Operating Income was $0.8 million for the three months ended March 31, 2026, compared to operating income of $2.0 million for the three months ended March 31, 2025. The $1.3 million decrease was primarily due to the higher labor expense derived from increased headcount in beginning of 2026 as compared to the prior year quarter.

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Fulfillment & Logistics Services:

						Three Months Ended March 31,
In thousands						2026						% Change						2025
Revenue						$	16,491					(16.6)		%				$	19,778
EBITDA						1,201						(28.9)		%				1,690
Operating income						685						(42.4)		%				1,189
Operating income % of revenue						4.2		%										6.0		%

Fulfillment & Logistics Services segment revenue decreased by $3.3 million, primarily due to the reduction of an existing customer. Operating income decreased by $0.5 million, as a result of the lower revenue in the three months ended March 31, 2026 as compared to the prior year quarter.

Liquidity and Capital Resources

Sources and Uses of Cash

Our cash and cash equivalent balances were $4.5 million and $5.6 million at March 31, 2026 and December 31, 2025, respectively. As of March 31, 2026, we had the ability to borrow an additional $24.3 million under our Credit Facility.

Our principal sources of liquidity are cash on hand, cash provided by operating activities, and borrowings available under our Credit Facility. Our cash is primarily used for general corporate purposes, working capital requirements, and capital expenditures. At this time, we believe that we will be able to continue to meet our liquidity requirements and fund our fixed obligations such as finance and operating leases and unfunded pension plan benefit payments and other needs for our operations in the short term and beyond. Although the Company believes that it will be able to meet its cash needs for the short and medium term, if unforeseen circumstances arise the Company may need to seek alternative sources of liquidity.

Operating Activities

Net cash used in operating activities for the three months ended March 31, 2026 was $0.6 million, compared to net cash used in operating activities of $0.8 million for the three months ended March 31, 2025. The $0.2 million year-over-year increase in cash used in operating activities was primarily due to the $0.2 million higher net loss, which was partially offset by $1.1 million change in accounts receivable and contract assets balances.

Investing Activities

Net cash used in investing activities was $0.3 million for the three months ended March 31, 2026, compared to $0.1 million used in the same period in 2025. The increase was primarily due to more cash used to purchase property, plant and equipment in the three months ended March 31, 2026.

Financing Activities

Net cash used in financing activities was $0.1 million for the three months ended March 31, 2026, which is comparable to $0.1 million of net cash used in the three months ended March 31, 2025.

Foreign Holdings of Cash

Consolidated foreign holdings of cash as of March 31, 2026 and December 31, 2025 were $1.8 million and $2.2 million, respectively.

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Credit Facility

On December 21, 2021, the Company entered into a three-year, $25.0 million asset-based revolving credit facility (the "Credit Facility") with Texas Capital Bank ("TCB"). The Company’s obligations under the Credit Facility are guaranteed on a joint and several basis by the Company’s material subsidiaries (the “Guarantors”). The Credit Facility is secured by substantially all of the assets of the Company and the Guarantors pursuant to a Pledge and Security Agreement, dated as of December 21, 2021, among the Company, TCB and the other Guarantors party thereto (the "Security Agreement"). On June 24, 2025, the Company entered into a second amendment to the Credit Facility (the “Second Amendment”) with TCB which extended the maturity date for the Credit Facility by a period of three years to June 30, 2028. The Second Amendment also includes an accordion feature that allows the Company to seek up to a $10.0 million increase in commitments under the credit line, subject to TCB approval.

The Credit Facility provides for loans up to the lesser of (a) $25.0 million, and (b) the amount available under a "borrowing base" calculated primarily by reference to the Company's cash and cash equivalents and accounts receivables. The Credit Facility allows the Company to use up to $3.0 million of its borrowing capacity to issue letters of credit.

The loans under the Credit Facility accrue interest at a variable rate equal to the Secured Overnight Financing Rate (SOFR) plus a margin of 2.25% per annum. The latest rate was 6.03% as of March 31, 2026. The outstanding amounts advanced under the Credit Facility are due and payable in full on June 30, 2028.

The Company may repay and reborrow all or any portion of the loans advanced under the Credit Facility at any time, without premium or penalty. The Credit Facility is subject to mandatory prepayments (i) from the net proceeds of asset dispositions not otherwise permitted under the Credit Facility; (ii) if the unpaid principal balance under the Credit Facility plus the aggregate face amount of all outstanding letters of credit exceeds the borrowing base; (iii) in an amount equal to 50% of the net proceeds of issuances of capital stock (subject to customary exceptions); or (iv) in an amount equal to the net proceeds from any issuance of debt not otherwise permitted under the Credit Facility.

The Credit Facility contains certain covenants restricting the Company's and its subsidiaries' ability to create, incur, assume or become liable for indebtedness; make certain investments; pay dividends or repurchase the Company's stock; create, incur or assume liens; consummate mergers or acquisitions; liquidate, dissolve, suspend or cease operations; or modify accounting or tax reporting methods (other than as required by accounting principles generally accepted in the United States of America (“GAAP”)).

As of March 31, 2026 and December 31, 2025, we had no borrowings outstanding under the Credit Facility. At each of March 31, 2026 and December 31, 2025, we had letters of credit outstanding in the amount of $0.7 million and $0.7 million, respectively. No amounts were drawn against these letters of credit at March 31, 2026 and December 31, 2025. These letters of credit exist to support insurance programs relating to workers’ compensation and general liability as well as lease obligations. We had no other off-balance sheet financing activities at March 31, 2026 and December 31, 2025.

As of March 31, 2026, we had the ability to borrow $24.3 million under the Credit Facility.

Dividends

We did not pay any dividends in the three months ended March 31, 2026 and 2025. Any future dividend declaration can be made only upon, and subject to, approval of our Board of Directors, and will depend on our results of operations, financial condition, cash requirements, future business prospects, contractual and indenture restrictions and other factors deemed relevant by our Board of Directors.

Share Repurchase

On May 2, 2023, the Board of Directors of Harte Hanks approved a share repurchase program to maximize shareholder value with authorization to repurchase $6.5 million of the Company’s Common Stock. As of December 31, 2025, the share repurchase program authorization availability was $4.1 million. We didn't repurchase any stock during the three months ended March 31, 2026 and no shares of common stock were repurchased in 2025.

Outlook

We consider such factors as total cash and cash equivalents and restricted cash, current assets, current liabilities, total debt, revenues, operating income, cash flows from operations, investing activities, and financing activities when assessing our liquidity. Our management of cash is designed to optimize returns on cash balances and to ensure that it is readily

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available to meet our operating, investing, and financing requirements as they arise. We believe that there are no conditions or events, considered in the aggregate, that raise substantial doubt about our ability to continue as a going concern for the twelve months following the issuance of the Consolidated Financial Statements.

Critical and Recent Accounting Policies

Critical accounting estimates are defined as those that, in our judgment, are most important to the portrayal of our Company’s financial condition and results of operations and which require complex or subjective judgments or estimates. Actual results could differ materially from those estimates under different assumptions and conditions. Refer to the 2025 10-K for a discussion of our critical accounting estimates.

Our Significant Accounting policies are described in Note A, Overview and Significant Accounting Policies, in the Notes to Condensed Consolidated Financial Statements.

See Recent Accounting Pronouncements under Note B of the Notes to Condensed Consolidated Financial Statements for a discussion of certain accounting standards that have been recently issued.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Not applicable.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures as defined in Rule 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to management, including our President and Chief Financial Officer (“CFO”), as appropriate to allow timely decisions regarding required disclosure.

Our management, including our President and CFO, evaluated the effectiveness of our disclosure controls and procedures pursuant to Rules 13a-15(e) and 15d-15(e) under the Exchange Act as of March 31, 2026, the end of the period covered by this Quarterly Report on Form 10-Q. Based upon such evaluation, our President and CFO concluded that the design and operation of these disclosure controls and procedures were effective, at the “reasonable assurance” level, to ensure information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC rules and forms.

Changes in Internal Control over Financial Reporting

There were no changes in our internal controls over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during our most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

Information regarding legal proceedings is set forth in Note L, Litigation and Contingencies, in the Notes to Condensed Consolidated Financial Statements in Item 1 of Part I of this Quarterly Report on Form 10-Q, which information is incorporated herein by reference.

Item 1a. Risk Factors

In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part I, “Item 1A. Risk Factors” in our 2025 10-K, which could materially affect our business, financial condition, or future results. The risks described in our 2025 10-K are not the only risks we face. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition, and operating results.

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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

We did not sell any unregistered equity securities during the quarter ended March 31, 2026.

The following table provides information with respect to purchases by the Company of shares of our Common Stock during the quarter ended March 31, 2026:

Period						Total Number of Shares (or units) Purchased						Average Price per Share (or unit)						Total number of Shares Purchased as Part of a Publicly Announced Plan or Program						Approximate dollar value of shares that may yet be purchased under the program(1)
																								in thousands
January 1, 2026 to January 31, 2026						—						$	—					—						$	4,131
February 1, 2026 to February 28, 2026						—						$	—					—						4,131
March 1, 2026 to March 31, 2026						—						$	—					—						4,131
						—												—						$	4,131

(1)On May 2, 2023, the Board of Directors of the Company approved a share repurchase program to maximize shareholder value with authorization to repurchase $6.5 million of the Company’s Common Stock. No repurchases were made during the quarter ended March 31, 2026. After giving effect to the repurchases made under the plan through March 31, 2026, the Company has remaining authority of $4.1 million to repurchase shares under the program, which has no expiration date.

Item 3. Defaults Upon Senior Securities

Not applicable.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

During the three months ended March 31, 2026, no director or officer (as defined in Rule 16a-1(f) of the Exchange Act) of the Company adopted, modified or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement," as each term is defined in Item 408 of Regulation S-K.

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Item 6. Exhibits

Exhibit No.						Description of Exhibit
*31.1						Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
*31.2						Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
*32.1						Furnished Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
*32.2						Furnished Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
*101.INS						Inline XBRL Instance Document - the instance document does not appear in the Interactive Data Files because its XBRL tags are embedded within the Inline XBRL Document.
*101.SCH						Inline XBRL Taxonomy Extension Schema Document
*101.CAL						Inline XBRL Taxonomy Extension Calculation Linkbase Document
*101.LAB						Inline XBRL Taxonomy Extension Labels Linkbase Document
*101.PRE						Inline XBRL Taxonomy Extension Presentation Linkbase Document
*101.DEF						Inline XBRL Definition Linkbase Document
*104						Cover Page Interactive Data File (embedded within the Inline XBRL and contained in Exhibit 101)

__________________________________

*Filed or furnished herewith, as applicable.

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

						HARTE HANKS, INC.
May 15, 2026						/s/ David Fisher
Date						David Fisher
						President
May 15, 2026						/s/ David Garrison
Date						David Garrison
						Chief Financial Officer

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FAQ

How did Harte Hanks (HHS) perform financially in Q1 2026?

Harte Hanks posted lower revenue and a modest net loss in Q1 2026. Revenue fell to $37.3 million from $41.6 million, while net loss widened to $0.6 million, or $(0.08) per share, reflecting weaker segment performance despite some cost reductions.

Which Harte Hanks (HHS) segments drove the Q1 2026 revenue decline?

The largest pressure came from Fulfillment & Logistics and Revenue Solutions. Fulfillment & Logistics revenue dropped 16.6% to $16.5 million, mainly from a reduced customer, while Revenue Solutions declined 9.9% to $7.9 million. Customer Care slipped 1.1% to $12.9 million.

What was Harte Hanks’ (HHS) profitability and margins in Q1 2026?

Harte Hanks reported an operating loss and negative margins. Operating loss was $0.8 million compared with a $0.04 million loss a year earlier, yielding an operating margin of about -2.1%. Net loss increased to $0.6 million, reflecting lower revenue and mixed segment performance.

How strong is Harte Hanks’ (HHS) liquidity and debt position after Q1 2026?

Harte Hanks ended Q1 2026 with modest cash but no drawn debt. Cash and restricted cash totaled $4.5 million. The company had no borrowings under its $25 million asset-based credit facility and could still borrow approximately $24.3 million if needed.

What is Project Elevate and how much has Harte Hanks (HHS) spent?

Project Elevate is Harte Hanks’ restructuring and cost-optimization program. Management estimates total reorganization cost reductions of $16.0 million from 2024 through 2026. The company has incurred $10.0 million of restructuring charges through March 31, 2026, including $0.2 million in Q1 2026.

Did Harte Hanks (HHS) repurchase stock or pay dividends in Q1 2026?

Harte Hanks neither repurchased shares nor paid dividends in Q1 2026. The company still has $4.1 million remaining under its $6.5 million share repurchase authorization, which has no expiration date, but chose not to use it during the quarter.