HHS 10-Q

Harte Hanks Inc (HHS)

10-Q 2026-08-14 For: 2026-06-30

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Added on August 14, 2026

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(1) This amount is comprised of the below balances:

Cash and cash equivalents	$	5,185	4,680

Restricted cash	3		$	77

0	$	5,188	$	4,757


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)


Title of Each Class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	HHS	NASDAQ


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			20
Item 3. Quantitative and Qualitative Disclosures About Market Risk			26
Item 4. Controls and Procedures			26
PART II. OTHER INFORMATION			27
Item 1. Legal Proceedings			27
Item 1a. Risk Factors			27
Risks Related to the Proposed Acquisition with Star Equity			27
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			28
Item 3. Defaults Upon Senior Securities			28
Item 4. Mine Safety Disclosures			29
Item 5. Other Information			29
Item 6. Exhibits			29


In thousands, except shares and per share amounts	June 30, 2026		December 31, 2025
ASSETS	(unaudited)
Current assets
Cash and cash equivalents and restricted cash	$	5,188	$	5,587
Accounts receivable (less allowance for doubtful accounts of $169 and $22 at June 30, 2026 and December 31, 2025, respectively)	27,431		27,841
Unbilled accounts receivable and contract assets	7,971		7,049

Prepaid expenses	1,537		2,363
Prepaid income taxes and income tax receivable	1,431		1,431
Other current assets	1,798		2,046
Total current assets	45,356		46,317
Property, plant and equipment, net	6,866		8,386
Operating and Financing lease right-of-use assets	18,597		19,854

Other assets
Intangible assets, net	273		370
Goodwill	295		295
Deferred tax assets, net	15,982		16,040
Other long-term assets	690		564
Total other assets	17,240		17,269
Total assets	$	88,059	$	91,826
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	13,238	$	13,096
Accrued expenses	6,561		5,915
Accrued payroll and related expenses	3,165		2,749
Short-term debt	3,000		—
Deferred revenue and customer advances	2,552		813
Customer postage and program deposits	693		868
Other current liabilities	1,659		3,180
Current portion of lease liabilities	4,003		3,543
Total current liabilities	34,871		30,164
Pension liabilities - Qualified plans	3,390		4,106
Pension liabilities - Nonqualified plan	16,525		16,995
Long-term lease liabilities, net of current portion	17,035		18,861
Other long-term liabilities	888		1,174
Total liabilities	72,709		71,300
Stockholders’ equity
Common stock, $1 par value, 25,000,000 shares authorized; 12,221,484 shares issued, 7,454,240 and 7,414,794 shares outstanding at June 30, 2026 and December 31, 2025, respectively	12,221		12,221
Additional paid-in capital	99,393		109,558
Retained earnings	808,181		813,812
Less treasury stock, 4,767,244 shares at cost at June 30, 2026 and 4,806,690 shares at cost at December 31, 2025	(889,526)		(900,085)
Accumulated other comprehensive loss	(14,919)		(14,980)
Total stockholders’ equity	15,350		20,526
Total liabilities and stockholders’ equity	$	88,059	$	91,826
See Accompanying Notes to Condensed Consolidated Financial Statements


x			QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


o			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	Three months ended June 30,				Six months ended June 30,
In thousands, except per share amounts	2026		2025		2026		2025
Revenue	$	37,984	$	38,631	$	75,248	$	80,192
Operating expenses
Labor	19,898		19,445		39,708		39,244
Production and distribution	12,482		12,400		23,821		26,457
Advertising, selling, general and administrative	8,785		5,538		14,426		11,382
Restructuring expenses	187		149		347		987
Depreciation and amortization expense	1,122		1,065		2,204		2,128
Total operating expenses	42,474		38,597		80,506		80,198
Operating (loss) income	(4,490)		34		(5,258)		(6)

Other expenses, net
Interest expense, net	90		61		159		114
Other expenses, net	303		386		464		900
Total other expenses, net	393		447		623		1,014
Loss before income taxes	(4,883)		(413)		(5,881)		(1,020)
Income tax provision (benefit)	120		(78)		(250)		(293)
Net loss	(5,003)		(335)		(5,631)		(727)

Loss per common share
Basic and diluted	$	(0.67)	$	(0.05)	$	(0.76)	$	(0.10)


Weighted average shares used to compute loss per share
Basic and diluted	7,431		7,382		7,423		7,371


Comprehensive loss, net of tax:
Net loss	$	(5,003)	$	(335)	$	(5,631)	$	(727)

Adjustment to pension liability, net	307		44		380		209
Foreign currency translation adjustment	(242)		73		(319)		109
Total other comprehensive income, net of tax	$	65	$	117	$	61	$	318

Comprehensive loss	$	(4,938)	$	(218)	$	(5,570)	$	(409)


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
Stock-based compensation	—		221		—		—		—		221
Vesting of RSUs	—		(9,044)		—		9,008		—		(36)

Net loss	—		—		(5,003)		—		—		(5,003)
Other comprehensive income	—		—		—		—		65		65
Balance at June 30, 2026	$	12,221	$	99,393	$	808,181	$	(889,526)	$	(14,919)	$	15,350


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.


In thousands	June 30, 2026	December 31, 2025
Unbilled accounts receivable	7,823	6,728
Contract assets	148	321
Deferred revenue and customer advances	2,552	813


In thousands	As of June 30, 2026						As of December 31, 2025
	Operating Leases		Finance Leases		Total		Operating Leases		Finance Leases		Total
Right-of-use Assets	$	18,078	$	519	$	18,597	$	19,247	$	607	$	19,854

Liabilities
Current portion of lease liabilities	3,831		172		4,003		3,376		167		3,543
Long-term lease liabilities	16,646		389		17,035		18,400		461		18,861
Total Lease Liabilities	$	20,477	$	561	$	21,038	$	21,776	$	628	$	22,404


In thousands	Six Months Ended June 30, 2026			Six Months Ended June 30, 2025
Supplemental Cash Flows Information

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2,457		$	2,645
Operating cash flows from finance leases	21			27
Financing cash flows from finance leases	82			79

Weighted Average Remaining Lease term in years
Operating leases	5.0			5.9
Finance leases	3.1			4.1

Weighted Average Discount Rate
Operating leases	5.93		%	5.76		%
Finance leases	7.75		%	7.77		%


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	—		(319)		(319)
Amounts reclassified from accumulated other comprehensive loss, net of tax, to other, net, on the condensed consolidated statements of comprehensive loss	380		—		380
Net current period other comprehensive income (loss), net of tax	380		(319)		61
Balance at June 30, 2026	$	(10,817)	$	(4,102)	$	(14,919)


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	—		109		109
Amounts reclassified from accumulated other comprehensive income, net of tax, to other, net, on the condensed consolidated statements of comprehensive loss	209		—		209
Net current period other comprehensive income, net of tax	209		109		318
Balance at June 30, 2025	$	(9,974)	$	(3,305)	$	(13,279)


In thousands	Operating Leases		Finance Leases
Year Ending December 31,
Remainder of 2026	$	2,411	$	103
2027	4,714		206
2028	4,537		206
2029	4,579		114
2030	4,485		—
2031 and beyond	3,116		—
Total future minimum lease payments	23,842		629
Less: imputed interest	3,365		68
Total lease liabilities	$	20,477	$	561


	Six months ended June 30, 2026
In thousands	Consulting and Employee Expense		Severance		Total
Beginning balance:	$	—	$	328	$	328
Additions	113		234		347
Payments and adjustment	(113)		(355)		(468)
Ending balance:	$	—	$	207	$	207


In thousands	Revenue Solutions		Customer Care		Fulfillment & Logistics Services		Restructuring Expense		Unallocated Corporate		Total

Revenue	$	7,521	$	12,853	$	17,610	$	—	$	—	$	37,984
Segment labor expense	4,127		9,321		3,965		—		2,485		19,898
Other segment operating expense	1,723		1,966		11,934		—		5,644		21,267
Restructuring expense	—		—		—		187		—		187
Contribution margin (loss)	$	1,671	$	1,566	$	1,711	$	(187)	$	(8,129)	$	(3,368)
Overhead allocation	672		741		741		—		(2,154)		—

EBITDA	$	999	$	825	$	970	$	(187)	$	(5,975)	$	(3,368)
Depreciation and amortization	144		186		520		—		272		1,122
Operating income (loss)	$	855	$	639	$	450	$	(187)	$	(6,247)	$	(4,490)


In thousands	Revenue Solutions		Customer Care		Fulfillment & Logistics Services		Restructuring Expense		Unallocated Corporate		Total

Revenue	$	8,662	$	11,845	$	18,124	$	—	$	—	$	38,631
Segment labor expense	4,459		7,511		4,732		—		2,743		19,445
Other segment operating expense	2,189		1,992		11,224		—		2,533		17,938
Restructuring expense	—		—		—		149		—		149
Contribution margin (loss)	$	2,014	$	2,342	$	2,168	$	(149)	$	(5,276)	$	1,099
Overhead allocation	652		737		739		—		(2,128)		—

EBITDA	$	1,362	$	1,605	$	1,429	$	(149)	$	(3,148)	$	1,099
Depreciation and amortization	218		50		519		—		278		1,065
Operating income (loss)	$	1,144	$	1,555	$	910	$	(149)	$	(3,426)	$	34


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
April 1, 2026 to April 30, 2026	—	$	—	—	$	4,131
May 1, 2026 to May 31, 2026	—	$	—	—	4,131
June 1, 2026 to June 30, 2026	—	$	—	—	4,131
	—			—	$	4,131


Exhibit No.						Description of Exhibit
*10.1						Form of Indemnification Agreement for Directors and Officers.
*10.2						Agreement and plan of merger between Star Holdings Equity and Harte Hanks, Inc. dated August 14, 2026.
*10.3						Amendment to employment agreement between the Company and David Fisher dated August 1 4 , 2026.
*10.4						Amendment to employment agreement between the Company and David Garrison dated August 1 4 , 2026.
*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)


						HARTE HANKS, INC.

August 14, 2026						/s/ David Fisher
Date						David Fisher
						President


August 14, 2026						/s/ David Garrison
Date						David Garrison
						Chief Financial Officer


Term			Section Reference
Advisor			3.3(b)
Agreement			Preamble
Alternative Acquisition Agreement			5.3(b)
Alternative Debt Financing			6.19
Alternative Debt Financing Agreements			6.18(b)(i)
Announcement			6.11
Award Company Share			2.7(a)(ii)
Bylaws			3.1
Capitalization Date			3.7(a)
Cash Consideration			2.7(a)(ii)(A)
Cash Electing Company Share			2.7(a)(ii)(A)
Certificate of Merger			2.2
Certificates			2.10(c)
Charter			2.5(a)
Chosen Courts			9.10(a)
Closing			2.3
Closing Date			2.3
Closing Year			6.8(c)
Collective Bargaining Agreement			3.19(a)


Company			Preamble
Company 401(k) Plan			6.8(f)
Company Board Recommendation			3.3(a)
Company Board Recommendation Change			5.3(d)(i)
Company Disclosure Letter			Article III
Company Liability Limitation			8.3(g)(iii)
Company Related Parties			8.3(f)(iii)
Company SEC Reports			3.9
Company Securities			3.7(c)
Company Stockholder Meeting			6.3(a)
Company Termination Fee			8.3(b)(i)
Confidentiality Agreement			9.4
Consent			3.6
DGCL			Recitals
DTC			2.10(d)
Effective Time			2.2
Electing Company Shares			2.7(a)(ii)(B)
Election Date			2.8(c)
Electronic Delivery			9.13
Employee Plans			3.18(a)
Exchange Fund			2.10(b)
FCPA			3.25(b)
Form of Election			2.8(a)
Form S-4			6.2(a)
Go-Shop Period			5.3(a)
Indemnified Persons			6.7(a)
Intervening Event			5.3(e)(i)
IP Contracts			3.16(f)
Lease			3.14(b)
Leased Real Property			3.14(b)
Maximum Cash Amount			2.7(a)(iv)
Merger			Recitals
Merger Consideration			2.7(a)(ii)(B)
Merger Sub			Preamble
New Plan			6.8(d)
No-Shop Period Start Date			5.3(a)
Non-U.S. Plan			3.18(f)
Notice Period			5.3(e)(ii)(3)
Old Plan			6.8(d)
Other Required Company Filing			6.2(b)
Other Required Filing			6.2(h)
Other Required Parent Filings			6.2(h)
Owned Company Shares			2.7(a)(iii)


Parent			Preamble
Parent 401(k) Plan			6.8(f)
Parent Liability Limitation			8.3(f)(i)
Parent Preferred Stock			2.7(a)(ii)(B)
Parent Recent SEC Reports			Article IV
Parent Related Parties			8.3(f)(i)
Parent Termination Fee			8.3(c)
Party			Preamble
Payment Agent			2.10(a)
Permits			3.20(a)
Preferred Stock Consideration			2.7(a)(ii)(B)
Preferred Stock Electing Company Share			2.7(a)(ii)(B)
Proxy Statement			6.2(a)
Recent SEC Reports			Article III
Representatives			5.3(a)
Requisite Stockholder Approval			3.4
Surviving Corporation			2.1
Tax Returns			3.17(a)
Termination Date			8.1(c)
Trade Control Laws			3.25(a)(i)
Voting and Support Agreements			Recitals
Uncertificated Shares			2.10(c)