Harte-Hanks (HHS) AI Stock Analysis

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Harte-Hanks

(NASDAQ:HHS)

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Rating:48Neutral

Price Target:$4.00▼(-0.25% Downside)

Action:reiterated

Date:11/14/26

The overall score is heavily constrained by the company's dire financial performance, marked by revenue decline, margin collapse, and negative cash flows. The primary positive driver is the pending acquisition by Star Equity Holdings, which offers a premium and a path to liquidity, offsetting the weak standalone fundamentals. Technical trends are mixed and provide a neutral-to-slightly-positive backdrop, while the negative P/E ratio underscores the lack of earnings power.

Positive Factors

Definitive merger pathThe reaffirmed merger gives Harte-Hanks a defined strategic path beyond operating as a small standalone public company. If completed, the transaction could provide liquidity, reduce standalone constraints, and give shareholders either cash or preferred-stock consideration, although closing conditions remain.

Negative Factors

Weak revenue and earningsFalling revenue and persistent losses indicate that Harte-Hanks is not currently converting its service platform into dependable earnings. Continued weakness could limit reinvestment, weaken client and employee confidence, and make recovery dependent on improving demand and operating economics.

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

Market Cap: $29.89M
Dividend Yield: ―
Average Volume (3M): 100.74K
Price to Earnings (P/E): -6.1
Beta (1Y): 0.84
Revenue Growth: -7.35%
EPS Growth: 10.08%
Country: US
Employees: 1,719
Sector: Industrials
Sector Strength: 63
Industry: Specialty Business Services

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 Fulfillm...

How the Company Makes Money

Harte Hanks primarily makes money by providing marketing and customer experience services to business clients under service contracts and project-based engagements. Key revenue streams generally include: (1) Marketing services fees for planning, crea...

Harte-Hanks Earnings Call Summary

Earnings Call Date:Nov 14, 2024(Q3-2024)|% Change Since:-43.12%|Next Earnings Date:Mar 18, 2027

Earnings Call SentimentNeutral

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.

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 health is critically weak. Revenue is declining sharply, gross margins have collapsed, and the company is unprofitable with a net loss. The balance sheet is highly leveraged with thin equity, and operating and free cash flows are deeply negative, indicating a severe cash burn and liquidity risk.

Income Statement

28Negative

Balance Sheet

35Negative

Cash Flow

15Very Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	154.58M	159.57M	185.24M	191.49M	206.28M	194.60M
Gross Profit	55.98M	109.67M	128.60M	131.92M	140.58M	144.33M
EBITDA	-3.60M	3.46M	12.05M	13.28M	22.48M	19.72M
Net Income	-4.94M	-811.00K	-30.30M	-1.57M	36.78M	14.97M
Balance Sheet
Total Assets	88.15M	91.83M	101.78M	131.07M	119.98M	107.86M
Cash, Cash Equivalents and Short-Term Investments	2.37M	5.59M	9.93M	18.36M	10.36M	11.91M
Total Debt	26.34M	22.40M	24.60M	28.51M	22.32M	30.77M
Total Liabilities	74.03M	71.30M	80.09M	111.22M	101.18M	122.85M
Stockholders Equity	14.12M	20.53M	21.69M	19.86M	18.81M	-14.99M
Cash Flow
Free Cash Flow	-9.67M	-4.49M	-6.73M	7.67M	22.99M	-4.81M
Operating Cash Flow	-7.99M	-1.74M	-2.99M	10.48M	28.79M	-1.76M
Investing Cash Flow	-1.68M	-2.76M	-3.74M	-2.31M	-11.49M	-2.90M
Financing Cash Flow	6.09M	514.00K	-419.00K	-3.22M	-15.82M	-13.41M

Harte-Hanks Technical Analysis

Technical Analysis SentimentPositive

Last Price4.01

Price Trends

50DMA4.27Negative

100DMA3.56Positive

200DMA3.12Positive

Market Momentum

MACD-0.06Negative

RSI46.68Neutral

STOCH64.17Neutral

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 4.01 is above the 20-day moving average (MA) of 3.98, below the 50-day MA of 4.27, and above the 200-day MA of 3.12, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 46.68 is Neutral, neither overbought nor oversold. The STOCH value of 64.17 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

3 New Risks

1.We will be subject to business uncertainties while the merger is pending, which could adversely affect our business.Q2, 2026

2.Even if the merger is completed, the integration of Harte Hanks by Star Equity may not be as successful as anticipated.Q2, 2026

3.We expect to incur significant transaction fees and costs in connection with the merger.Q2, 2026

Harte-Hanks Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

HHS against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DLX	75Outperform	$1.23B	15.39	11.39%	4.48%	0.38%	-4.98%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SWAG	63Neutral	$21.89M	16.50	4.27%	―	6.48%	―
MCHX	56Neutral	$62.52M	-19.37	-12.37%	―	4.19%	34.57%
HHS	48Neutral	$29.89M	-6.12	-28.18%	―	-7.35%	10.08%
FLNT	48Neutral	$98.94M	-5.22	-168.24%	―	-1.69%	47.96%

* Industrials Sector Average

Performance Comparison

HHS and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
HHS	Harte-Hanks, Inc.	4.01	1.24	44.77%
DLX	Deluxe Corp.	26.78	8.42	45.88%
MCHX	Marchex	1.41	-0.04	-2.76%
FLNT	Fluent Inc	3.12	1.25	66.84%
BAOS	Baosheng Media Group Holdings Ltd	0.16	-2.44	-93.92%
SWAG	Stran & Company, Inc	1.18	-1.15	-49.36%

Harte-Hanks Corporate Events

Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance

Harte Hanks Reaffirms Merger Path With Star Equity

Neutral

Sep 15, 2026

On September 15, 2026, Harte Hanks announced that the Go-Shop Period under its August 14, 2026 merger agreement with Star Equity Holdings had expired, following active solicitation of 93 potential bidders and the receipt of acquisition proposals. The...

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 or...

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: Nov 14, 2026

Harte-Hanks AI Stock Analysis