Harte Hanks Reports $37.3 Million Revenue in Q1 2026, Down 10.3% Year-Over-Year

Harte Hanks, Inc. reported a revenue of $37.3 million for the first quarter of 2026, reflecting a decrease of 10.3% compared to $41.6 million in the same period of 2025. The decline in revenue was primarily driven by a significant drop in the Fulfillment & Logistics Services segment, which saw a 16.6% decrease to $16.5 million. The Revenue Solutions segment also experienced a 9.9% decline, while the Customer Care segment's revenue fell slightly by 1.1%. The company's operating expenses decreased by 8.6% to $38.0 million, resulting in an operating loss of $768,000, compared to a loss of $40,000 in the prior year.

The company's financial position showed a slight decline in total assets, which decreased to $90.4 million as of March 31, 2026, from $91.8 million at the end of 2025. Current assets also fell to $45.8 million, down from $46.3 million, with cash and cash equivalents decreasing to $4.5 million. Total liabilities were reported at $70.3 million, a slight decrease from $71.3 million. Stockholders' equity also declined to $20.1 million from $20.5 million, primarily due to the net loss of $628,000 for the quarter.

In terms of operational developments, Harte Hanks has been implementing a restructuring initiative named "Project Elevate," aimed at optimizing business resources and reinvesting savings into sales and marketing. The company incurred restructuring expenses of $160,000 in the first quarter of 2026, down from $838,000 in the same period last year. The restructuring is expected to yield cost reductions of approximately $16 million over the next few years. The company has also maintained its share repurchase program, with $4.1 million remaining available for future repurchases.

Looking ahead, Harte Hanks remains cautious about the economic environment, particularly in light of rising inflation and interest rates, which could impact client marketing budgets. The company is focused on adjusting its cost structure to align with current market conditions while continuing to execute its multichannel strategy. Management believes that it can meet its liquidity requirements through available cash, operating cash flows, and a $24.3 million borrowing capacity under its credit facility, which remains untapped as of the end of the first quarter.