tiprankstipranks
Harte-Hanks (HHS)
NASDAQ:HHS
Want to see HHS full AI Analyst Report?

Harte-Hanks (HHS) AI Stock Analysis

153 Followers

Top Page

HHS

Harte-Hanks

(NASDAQ:HHS)

Select Model
Select Model
Select Model
Neutral 51 (OpenAI - Gpt-5.6Sol)
Rating:51Neutral
Price Target:
$4.50
▲(92.31% Upside)
Action:Reiterated
Date:08/20/26
The score is held down primarily by weak financial performance (sharp revenue contraction, losses, elevated leverage, and negative free cash flow). Technicals are supportive but look overextended (overbought signals), which tempers the momentum benefit. The announced acquisition at $5.00 per share is a significant positive catalyst, partially offsetting fundamentals, while valuation is hard to assess due to negative earnings and no dividend data.
Positive Factors
Acquisition Agreement
The merger could resolve the limitations of operating as a small standalone public company, provide shareholder liquidity, and bring Harte Hanks under a larger corporate platform, although closing remains conditional.
Negative Factors
Sharp Revenue Contraction
A substantial and multi-year revenue decline signals weakening demand, client losses, or reduced program volumes. Lower scale makes it harder to absorb fixed costs and threatens the sustainability of the operating model.
Read all positive and negative factors
Positive Factors
Negative Factors
Acquisition Agreement
The merger could resolve the limitations of operating as a small standalone public company, provide shareholder liquidity, and bring Harte Hanks under a larger corporate platform, although closing remains conditional.
Read all positive factors

Harte-Hanks (HHS) vs. SPDR S&P 500 ETF (SPY)

Harte-Hanks Business Overview & Revenue Model

Company Description
Harte Hanks, Inc. is an established global firm specializing in customer experience solutions, operating both domestically and internationally. Its business is structured around three primary divisions: Marketing Services, Customer Care, and Fulfi...
How the Company Makes Money
Harte Hanks makes money primarily by selling outsourced marketing and customer experience services to business clients under service contracts. Its revenue model is largely fee-for-service: clients pay for contact center/customer care work (e.g., ...

Harte-Hanks Earnings Call Summary

Earnings Call Date:Nov 14, 2024
(Q3-2024)
|
% Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a mixed outlook for Harte Hanks. While there are positive developments in revenue growth, new client acquisitions, and cost-saving initiatives, these are offset by declines in certain segments, reduced operating income and EBITDA, and challenges with cash flow and pension costs. The company is focusing on long-term strategies and acknowledges short-term fluctuations.
Positive Updates
Revenue Growth
Harte Hanks reported a 1.1% year-over-year revenue increase in Q3 2024, marking an improvement from the negative 16.6% revenue decline in Q3 2023.
Negative Updates
Decline in Marketing Services and Fulfillment & Logistics
Marketing Services revenues fell to $9.1 million from $10.6 million, and Fulfillment & Logistics revenues decreased to $21.3 million from $22.5 million, due to customer budget reductions and lower logistics volume.
Read all updates
Q3-2024 Updates
Negative
Revenue Growth
Harte Hanks reported a 1.1% year-over-year revenue increase in Q3 2024, marking an improvement from the negative 16.6% revenue decline in Q3 2023.
Read all positive updates
Company Guidance
During the Harte Hanks Third Quarter 2024 Earnings Call, management provided detailed guidance on the company's performance and strategic direction. Kirk Davis, CEO, reported a modest 1.1% year-over-year revenue increase, contrasting the negative 16.6% decline from Q3 2023 when adjusted for acquired revenue. He acknowledged the expectation of a low to mid-single digit revenue decline in Q4, citing natural fluctuations in their growth trajectory. The focus remains on optimizing free cash flow, with significant investments in the newly established Customer Excellence and Growth division. David Garrison, CFO, highlighted the $47.6 million in revenues for Q3 2024, driven by growth in Customer Care and Sales Services, despite declines in other segments. The company aims for a $6 million EBITDA improvement, facilitated by Project Elevate's cost-saving measures, including personnel optimization and streamlined operations. Financially, the company ended the quarter with $5.9 million in cash and no debt, after a strategic $6.1 million contribution to terminate Pension Plan 1.

Harte-Hanks Financial Statement Overview

Summary
Financial quality is weak-to-below average. The income statement shows a sharp TTM revenue decline (~41.7%) with operating and net losses (net margin ~-3.7%). Leverage is elevated relative to the current earnings profile (debt-to-equity ~1.57) with negative ROE (~-30%). Cash flow is pressured and volatile, with slightly positive TTM operating cash flow but negative free cash flow, increasing liquidity/execution risk until sales and profitability stabilize.
Income Statement
24
Negative
Balance Sheet
43
Neutral
Cash Flow
32
Negative
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue154.63M159.57M185.24M191.49M206.28M194.60M
Gross Profit35.13M109.67M128.60M131.92M140.58M144.33M
EBITDA-1.03M3.46M12.05M13.28M22.48M19.72M
Net Income-5.71M-811.00K-30.30M-1.57M36.78M14.97M
Balance Sheet
Total Assets88.06M91.83M101.78M131.07M119.98M107.86M
Cash, Cash Equivalents and Short-Term Investments5.18M5.59M9.93M18.36M10.36M11.91M
Total Debt24.04M22.40M24.60M28.51M22.32M30.77M
Total Liabilities72.71M71.30M80.09M111.22M101.18M122.85M
Stockholders Equity15.35M20.53M21.69M19.86M18.81M-14.99M
Cash Flow
Free Cash Flow-1.43M-4.49M-6.73M7.67M22.99M-4.81M
Operating Cash Flow1.30M-1.74M-2.99M10.48M28.79M-1.76M
Investing Cash Flow-2.73M-2.76M-3.74M-2.31M-11.49M-2.90M
Financing Cash Flow2.68M514.00K-419.00K-3.22M-15.82M-13.41M

Harte-Hanks Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.34
Price Trends
50DMA
2.64
Positive
100DMA
2.66
Positive
200DMA
2.80
Positive
Market Momentum
MACD
0.46
Negative
RSI
72.82
Negative
STOCH
76.40
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HHS, the sentiment is Positive. The current price of 2.34 is below the 20-day moving average (MA) of 3.08, below the 50-day MA of 2.64, and below the 200-day MA of 2.80, indicating a bullish trend. The MACD of 0.46 indicates Negative momentum. The RSI at 72.82 is Negative, neither overbought nor oversold. The STOCH value of 76.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HHS.

Harte-Hanks Risk Analysis

Harte-Hanks disclosed 30 risk factors in its most recent earnings report. Harte-Hanks reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Harte-Hanks Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
$1.10B10.4514.63%4.49%0.30%71.14%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
62
Neutral
$80.03M-14.48-16.19%-7.47%-16.48%
56
Neutral
$126.43M-5.04-151.70%-12.05%43.57%
52
Neutral
$32.81M795.450.18%10.26%
51
Neutral
$30.56M-5.57-30.13%-11.62%-87.59%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HHS
Harte-Hanks
4.26
0.65
18.01%
DLX
Deluxe
23.62
5.19
28.18%
MCHX
Marchex
1.83
-0.13
-6.41%
FLNT
Fluent
3.88
1.62
71.68%
BAOS
Baosheng Media Group Holdings
0.44
-2.33
-84.12%
SWAG
Stran & Company
1.75
0.08
5.11%

Harte-Hanks Corporate Events

Delistings and Listing ChangesM&A Transactions
Harte Hanks to Be Acquired by Star Equity Holdings
Positive
Aug 19, 2026
On August 14, 2026, Harte Hanks agreed to be acquired by Star Equity Holdings in a definitive merger valuing the company at $5.00 per share, or about $38.4 million in equity value. Shareholders unanimously backed the deal, which offers either cash...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 20, 2026