Harte Hanks (HHS) investor relations material

Executive summary

• Q3 2025 revenue was $39.5 million, down 17% year-over-year, due to customer turnover, program conclusions, and timing in legacy contracts.

• Net loss for Q3 2025 was $2.3 million ($0.31 per diluted share), compared to net income of $0.1 million ($0.02 per share) in Q3 2024; nine-month net loss was $3.0 million versus a $27.9 million loss in the prior year, which included a large pension termination charge.

• Operating expenses decreased 14.7% year-over-year to $39.0 million, reflecting cost controls and restructuring.

• Project Elevate transformation program continued, with $0.5 million in restructuring charges in Q3 and $1.5 million year-to-date, targeting $16 million in cost savings by 2026.

• New partnership with Samsung and a new Greenville, SC facility signal pipeline replenishment and future growth.

Financial highlights

• Q3 2025 revenue: $39.5 million (down 17% year-over-year); nine months: $119.7 million (down 13.3%).

• Q3 2025 net loss: $2.3 million; nine months: $3.0 million net loss.

• Q3 2025 basic and diluted EPS: $(0.31); nine months: $(0.41).

• Cash and cash equivalents at September 30, 2025: $6.5 million; available credit facility: $24.0 million.

• Positive working capital of $15.7 million supports operations.

Outlook and guidance

• Management expects Q4 2025 to benefit from new business and client expansions, with sequential improvement anticipated.

• Full-year 2025 is expected to deliver positive EBITDA, supported by cost reductions and operational efficiencies.

• Pipeline conversion in Customer Care and Fulfillment is expected to drive results in Q4 and 2026.

• Management expects further cost reductions from Project Elevate and continued focus on optimizing operations and technology investments.

• No conditions or events raise substantial doubt about the company's ability to continue as a going concern for the next twelve months.