Harte Hanks, Inc. reported a significant decline in financial performance for the third quarter and first nine months of 2025, as detailed in its latest 10-Q filing. For the three months ended September 30, 2025, the company generated revenue of $39.5 million, a decrease of 17.0% from $47.6 million in the same period of 2024. The nine-month revenue also fell by 13.3%, totaling $119.7 million compared to $138.1 million in the prior year. The company recorded a net loss of $2.3 million for the third quarter, compared to a net income of $142,000 in the same quarter of 2024, and a net loss of $3.0 million for the nine months ended September 30, 2025, compared to a loss of $27.9 million in the previous year.
The decline in revenue was attributed to reduced customer spending and the conclusion of several client programs, impacting all three of Harte Hanks' segments: Marketing Services, Customer Care, and Fulfillment & Logistics Services. The Marketing Services segment saw the most significant drop, with revenue decreasing by 33.4% in the third quarter and 32.6% year-to-date. Operating expenses also decreased, totaling $39.0 million for the third quarter, down 14.7% from the previous year, primarily due to lower labor costs and cost control measures.
In terms of strategic developments, Harte Hanks has initiated "Project Elevate," a transformation program aimed at optimizing business resources and reinvesting savings into sales and marketing efforts. The company recorded restructuring charges of $0.5 million for the third quarter and $1.5 million for the nine months ended September 30, 2025, as part of this initiative. Additionally, the company has merged its Sales Services business into the Marketing Services segment to enhance its strategic posture.
Operationally, Harte Hanks reported a decrease in customer engagement metrics, with a notable reduction in customer counts and program activity. The company’s employee headcount has been adjusted in line with revenue declines, contributing to a labor expense reduction of 15.7% in the third quarter. The company ended the quarter with cash and cash equivalents of $6.5 million, down from $9.9 million at the end of 2024, and has access to a $25 million credit facility, of which $24 million remains available for borrowing.
Looking ahead, Harte Hanks remains focused on managing its cost structure and optimizing operations in response to ongoing economic challenges, including inflation and fluctuating client budgets. The company believes it can meet its liquidity needs in the short term and is committed to executing its multichannel strategy while navigating the current market conditions.
About HARTE HANKS INC
Harte Hanks is a global customer experience company providing data, marketing, sales, customer care, fulfillment, and logistics services. It helps clients optimize customer journeys, leverage AI and data analytics, and deliver personalized multichannel campaigns. Serving diverse industries worldwide, the company focuses on demand generation, brand engagement, and supply chain solutions, supporting both B2B and B2C clients with a competitive edge in technology-driven customer insights and operational efficiency.
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