Revenue Performance - Revenue for the three months ended September 30, 2025, decreased by $8.1 million, or 17.0%, to $39.5 million compared to the same period in 2024, attributed to reductions across all three segments [110]. - For the nine months ended September 30, 2025, revenue decreased by $18.4 million, or 13.3%, to $119.7 million compared to the same period in 2024, due to decreased revenue in all segments [116]. - Marketing Services segment revenue decreased by $4.4 million, or 33.4%, to $8.826 million for the three months ended September 30, 2025, compared to $13.255 million in the prior year [127]. - Customer Care segment revenue decreased by $1.5 million, or 11.6%, to $11.553 million for the three months ended September 30, 2025, primarily due to timing fluctuations [130]. - Fulfillment & Logistics Services segment revenue decreased by $2.2 million, or 10.2%, to $19.141 million for the three months ended September 30, 2025, due to lower volume from existing customers [133]. Operating Income and Expenses - Operating income for the three months ended September 30, 2025, was $509,000, down 73.2% from $1.9 million in the same quarter of 2024 [109]. - Operating expenses for the three months ended September 30, 2025, were $39.0 million, a decrease of $6.7 million, or 14.7%, from $45.7 million in the prior year [111]. - Operating income for the Marketing Services segment decreased by $0.9 million, or 36.9%, to $1.535 million for the three months ended September 30, 2025 [128]. - Customer Care segment operating income decreased by $1.4 million, or 57.9%, to $1.037 million for the three months ended September 30, 2025 [131]. - Fulfillment & Logistics Services segment operating income increased by $0.6 million, or 57.4%, to $1.690 million for the three months ended September 30, 2025 [133]. - Operating expenses for the nine months ended September 30, 2025, were $119.2 million, a decrease of $15.3 million, or 11.3%, from $134.5 million in the prior year [117]. - Labor expenses for the nine months ended September 30, 2025, decreased by $10.7 million, or 15.2%, to $59.6 million due to adjustments in workforce aligned with revenue reductions [118]. Cash and Financing - Cash and cash equivalents were $6.5 million as of September 30, 2025, down from $9.9 million at December 31, 2024 [135]. - Net cash used in operating activities was $2.5 million for the nine months ended September 30, 2025, compared to $7.0 million for the same period in 2024 [137]. - The Company had the ability to borrow up to $24.0 million under its Credit Facility as of September 30, 2025 [146]. - The Credit Facility interest rate was 6.49% as of September 30, 2025, with a maturity date extended to June 30, 2028 [143]. Tax and Restructuring - The effective tax rate for the nine months ended September 30, 2025, was (329.8)%, a decrease of 352.6% compared to the same period in 2024, primarily due to income earned in foreign jurisdictions [122]. - Restructuring charges related to the business transformation for the three and nine months ended September 30, 2025, were $0.5 million and $1.5 million, respectively [107]. - The company expects reorganization savings from "Project Elevate" to be approximately $16.0 million from 2024 to 2026 [106]. - The company initiated "Project Elevate" to optimize operations and reinvest savings into sales, marketing, and technology [106].

David Garrison, Chief Financial Officer, added, "Our extended credit facility and cost discipline efforts provide flexibility to navigate program turnover from a position of strength. We expect Q4 to reflect the benefit of new business and client expansions now progressing through implementation. We remain focused on driving long-term margin improvement and prudent capital allocation to enhance shareholder value." Exhibit 99.1 Harte Hanks Reports Third Quarter 2025 Results Highlights Strong Pipeline Repleni ...

Core Insights - Harte Hanks reported a net loss of $2.3 million for Q3 2025, compared to a net income of $0.1 million in Q3 2024, reflecting challenges in revenue generation and program transitions [4][6][13] - The company is optimistic about future growth, particularly in its Customer Care segment, bolstered by a new partnership with Samsung Electronics America [3][7][8] Financial Performance - Revenue for Q3 2025 was $39.5 million, down from $47.6 million in Q3 2024, attributed to timing and transitions in legacy customer contracts [4][6] - Operating expenses decreased by 14.7% year-over-year to $39.0 million, down from $45.7 million in Q3 2024, due to strategic cost improvements [4][6] - EBITDA for Q3 2025 was approximately $1.7 million, with Adjusted EBITDA at $2.4 million, compared to $2.9 million and $4.1 million in Q3 2024, respectively [4][6][13] Segment Performance - Customer Care segment revenues were $11.6 million, an 11.6% decline from $13.1 million in Q3 2024, with segment EBITDA at approximately $1.1 million [13] - Marketing Services segment revenues were $8.8 million, reflecting a 33.4% decline from $13.3 million in Q3 2024, with segment EBITDA at approximately $1.8 million [13] - Fulfillment & Logistics Services segment revenues were $19.1 million, a 10.2% decrease from $21.3 million in Q3 2024, but segment EBITDA improved to $2.3 million from $1.3 million in the prior year [13] Outlook and Strategy - The company expects positive EBITDA for the full year 2025, driven by ongoing cost reductions and operational efficiencies [6][8] - Management is focused on replenishing the business development pipeline with new client opportunities and expansions, anticipating improvements in Q4 2025 [6][8] - The partnership with Samsung is seen as a significant milestone, indicating a shift towards higher-value, technology-enabled service delivery [3][7] Balance Sheet and Liquidity - As of September 30, 2025, Harte Hanks had $6.5 million in cash and cash equivalents, with no outstanding debt and up to $24 million available under its credit facility [8][21] - The company amended its credit facility to extend maturity to June 30, 2028, enhancing its financial flexibility [4][8]

Core Insights - Harte Hanks has opened a new Customer Care center in Greenville, South Carolina, in collaboration with Samsung Electronics America [1] - This initiative is expected to create over 150 new jobs in the Greenville community [1] Company Overview - Harte Hanks is a leading global customer experience company with over 100 years of experience in connecting companies with their customers [1] - Samsung Electronics America is recognized for its advancements in mobile technologies, consumer electronics, home appliances, enterprise solutions, and innovative network systems [1] Economic Impact - The establishment of the Customer Care center will contribute positively to the local economy by providing employment opportunities [1]

Revenue Performance - Revenue for the three months ended June 30, 2025, decreased by $6.4 million, or 14.2%, to $38.6 million compared to the same period in 2024[108] - Revenue for the six months ended June 30, 2025, decreased by $10.3 million, or 11.4%, to $80.2 million compared to the same period in 2024[114] - The Marketing Services segment revenue decreased by $3.5 million, or 28.7%, for the three months ended June 30, 2025, due to customer turnover and reduced client spending[122] - Customer Care segment revenue for the three months ended June 30, 2025, decreased by $0.5 million, or 4.4%, compared to the same period in 2024, primarily due to timing fluctuations with specific programs[125] - Fulfillment & Logistics Services segment revenue decreased by $2.4 million, or 11.6%, for the three months ended June 30, 2025, primarily due to lower volume from existing customers[128] Operating Expenses - Operating expenses for the three months ended June 30, 2025, were $38.6 million, a decrease of $5.1 million, or 11.6%, from $43.7 million in the prior year[109] - Operating expenses for the six months ended June 30, 2025, were $80.2 million, a decrease of $8.5 million, or 9.6%, from $88.7 million in the prior year[115] - Labor expenses decreased by $6.9 million, or 15.0%, in the six months ended June 30, 2025, primarily due to adjustments in workforce in response to lower revenue[116] Net Loss and Income - The net loss for the three months ended June 30, 2025, was $335,000, compared to a net loss of $27.8 million in the same period of 2024[107] - Operating income for the Customer Care segment was $1.6 million for the three months ended June 30, 2025, down from $2.3 million in the same period in 2024, reflecting a decrease of $0.7 million due to higher technology costs[125] - Operating income for the Fulfillment & Logistics Services segment decreased by $0.4 million, or 30.9%, for the three months ended June 30, 2025, primarily due to lower revenue[128] Cash Flow and Liquidity - Cash and cash equivalents were $4.8 million as of June 30, 2025, down from $9.9 million at December 31, 2024[130] - Net cash used in operating activities for the six months ended June 30, 2025, was $5.7 million, an increase of $1.6 million compared to $4.1 million for the same period in 2024[132] - Net cash used in investing activities decreased to $0.3 million for the six months ended June 30, 2025, from $1.2 million in the same period in 2024[133] - The Company had the ability to borrow $24.0 million under its Credit Facility as of June 30, 2025, with no outstanding borrowings at that date[141] - The Credit Facility interest rate was 6.67% as of June 30, 2025, with a maturity extended to June 30, 2028[138] Restructuring and Savings - Project Elevate is expected to generate approximately $16.0 million in reorganization savings from 2024 to 2026[104] - Restructuring charges related to the business transformation effort were $0.1 million for the three months ended June 30, 2025, and $1.0 million for the six months ended June 30, 2025[105] Dividends - The Company did not pay any dividends in the three months ended June 30, 2025, and 2024[142] Tax Rate - The effective tax rate for the six months ended June 30, 2025, was 28.7%, an increase of 4.2% from the same period in 2024[119]

Exhibit 99.1 Harte Hanks Reports Second Quarter 2025 Results Company Continues to Execute on Long-Term Value Strategy Chelmsford, Massachusetts – August 7, 2025 - Harte Hanks, Inc. (NASDAQ: HHS), a leading global customer experience company focused on bringing companies closer to customers for over 100 years, today announced financial results for the second quarter ended June 30, 2025. Despite top-line headwinds, Harte Hanks delivered another quarter of positive EBITDA, maintained a debt-free balance sheet, ...

Revenue Performance - Revenue for the three months ended March 31, 2025, was $41.6 million, a decrease of $3.9 million, or 8.6%, compared to $45.4 million in the same period of 2024[102]. - Marketing Services segment revenue decreased by $4.8 million, or 35.3%, to $8.8 million, primarily due to customer loss and reduced demand[103]. - Customer Care segment revenue increased by $0.6 million, or 4.5%, to $13.0 million, driven by increased volume from new customers[112]. - Fulfillment & Logistics Services segment revenue increased by $0.4 million, or 1.8%, to $19.8 million, attributed to higher volume from existing customers[113]. Operating Expenses - Operating expenses for the three months ended March 31, 2025, were $41.6 million, a decrease of $3.5 million, or 7.7%, compared to $45.1 million in the same period of 2024[104]. - Labor expenses decreased by $3.7 million, or 15.7%, primarily due to workforce reductions in the Marketing Services segment[104]. - Restructuring charges for the three months ended March 31, 2025, were $0.8 million, comparable to $0.9 million in the prior year quarter[106]. Cash Flow and Financing - Net cash used in operating activities for the three months ended March 31, 2025, was $0.8 million, a significant decrease from $5.7 million in the same period of 2024[116]. - As of March 31, 2025, the company had cash and cash equivalents of $9.0 million and the ability to borrow an additional $24.0 million under its Credit Facility[114]. - The Company entered into a three-year, $25.0 million asset-based revolving credit facility, extended to June 30, 2025[120]. - The Credit Facility allows for loans up to $25.0 million or the amount available under a borrowing base, with $3.0 million available for letters of credit[121]. - The interest rate on the Credit Facility is variable, currently at 6.67% as of March 31, 2025[122]. - As of March 31, 2025, the Company had no borrowings under the Credit Facility but had letters of credit outstanding totaling $1.0 million[125]. - The Company has the ability to borrow $24.0 million under the Credit Facility as of March 31, 2025[126]. Shareholder Returns and Concerns - No dividends were paid during the three months ended March 31, 2025 and 2024[127]. - A share repurchase program was approved for $6.5 million, but no stock was repurchased during the three months ended March 31, 2025 and 2024[128]. - The Company believes there are no conditions that raise substantial doubt about its ability to continue as a going concern for the next twelve months[129]. - The Company has not engaged in any off-balance sheet financing activities as of March 31, 2025[125]. - The Credit Facility contains covenants that restrict the Company's ability to incur additional debt and engage in certain corporate actions[124].

Financial Performance - Total revenues for Q1 2025 were $41.6 million, down 8.6% compared to $45.4 million in Q1 2024[6] - Operating loss was $0.04 million compared to operating income of $0.4 million in the same quarter in the prior year[8] - Net loss was $0.4 million, or $0.05 per basic and diluted share, compared to net loss of $0.2 million, or $0.02 per basic and diluted share, in the prior year quarter[6] - EBITDA for Q1 2025 was $1.0 million compared to $1.4 million in the same period in the prior year[6] - Adjusted EBITDA for Q1 2025 was $1,812,000, down 35.8% from $2,826,000 in Q1 2024[22] - Operating income for Q1 2025 was a loss of $40,000, compared to a profit of $375,000 in Q1 2024[22] - The company reported a net loss of $392,000 for Q1 2025, compared to a net loss of $171,000 in Q1 2024[22] - Adjusted operating margin for Q1 2025 was 1.8%, down from 3.9% in Q1 2024[22] Revenue Breakdown - Customer Care segment revenue was $13.0 million, accounting for 31% of total revenue, with a 4.5% increase year-over-year[6] - Fulfillment & Logistics Services segment revenue was $19.8 million, representing 48% of total revenue, with a 1.8% increase year-over-year[6] - Marketing Services segment revenue decreased by $4.8 million or 35.3% compared to the prior year quarter[6] - Revenue for the Marketing Services segment decreased to $8,782,000, a decline of 35.5% compared to $13,583,000 in the same period last year[23] - Contribution margin for the Fulfillment & Logistics segment was $2,572,000, down from $2,380,000 in the previous year[23] Assets and Liabilities - Total assets decreased to $100,585,000 from $101,782,000, a decline of approximately 1.2% year-over-year[21] - Total current liabilities increased to $36,089,000 from $35,137,000, an increase of approximately 2.7% year-over-year[21] - Cash and cash equivalents decreased to $8,982,000 from $9,934,000, a decline of approximately 9.6% year-over-year[21] - Total stockholders' equity decreased to $21,421,000 from $21,689,000, a decline of approximately 1.2% year-over-year[21] Business Development - Harte Hanks secured several new client engagements across key verticals, including healthcare and technology, indicating new business momentum[3] - The company is committed to expanding lead generation activities and focusing on strategic wins that align with its core capabilities[3]

Revenue Performance - Fourth quarter revenue for 2024 was $47.1 million, a decrease of 4.8% compared to $49.5 million in Q4 2023[4] - Full-year revenue for 2024 was $185.2 million, down 3.3% from $191.5 million in 2023[12] - Total revenues for the year ended December 31, 2024, were $185,242,000, a decrease of 3.7% compared to $191,492,000 in 2023[27] - For the three months ended December 31, 2024, total revenues were $47,129,000, a decrease from $49,491,000 in the same period of 2023, reflecting a decline of 4.8%[28] Net Loss and Earnings - Fourth quarter net loss was $2.4 million, or $0.33 per share, compared to a net loss of $2.0 million, or $0.27 per share, in the prior year[11] - Full-year net loss for 2024 was $30.3 million, or $4.15 per share, compared to a net loss of $1.6 million, or $0.21 per share, in 2023[12] - Net loss for Q4 2024 was $2,434,000, compared to a net loss of $1,977,000 in Q4 2023, representing a 23.1% increase in loss year-over-year[26] Cash and Assets - The company ended 2024 with $9.9 million in cash, down from $18.4 million at the end of 2023, and zero debt[8] - Cash and cash equivalents decreased to $9,934,000 in 2024 from $18,364,000 in 2023, a decline of 45.9%[25] - Total assets decreased to $101,782,000 in 2024 from $122,757,000 in 2023, reflecting a reduction of 17.0%[25] - Total liabilities decreased to $80,093,000 in 2024 from $102,900,000 in 2023, a decline of 22.1%[25] EBITDA and Operating Income - Adjusted EBITDA for Q4 2024 was $3.5 million, compared to $5.2 million in Q4 2023[8] - Adjusted EBITDA for Q4 2024 was $3,509,000, down from $5,209,000 in Q4 2023, indicating a decline of 32.6%[26] - EBITDA for the year ended December 31, 2024, was $6,478,000, compared to $7,596,000 in 2023, indicating a decrease of 14.7%[27] - Operating income for the year ended December 31, 2024, was $2,093,000, down from $3,359,000 in 2023, representing a decline of 37.7%[27] Segment Performance - Customer Care segment revenue was $15.0 million, accounting for 32% of total revenue, with an 18.0% decrease in EBITDA year-over-year[8] - Fulfillment & Logistics Services segment revenue was $20.8 million, representing 44% of total revenue, with a 31.4% decrease in EBITDA[8] - Marketing Services segment revenue was $11.3 million, down 12.1% year-over-year, with EBITDA impacted by a $3.2 million impairment[8] Impairments and Charges - The company reported a goodwill impairment charge of $1,631,000 in Q4 2024, with no such charge in Q4 2023[24] - Impairment charges for goodwill and intangible assets were $3,168,000 for both the year ended December 31, 2024, and 2023[27] Restructuring and Expenses - The company incurred restructuring expenses of $2,402,000 for the year ended December 31, 2024, compared to $5,687,000 in 2023, indicating a reduction of 57.8%[27] - The company reported an unallocated expense of $21,818,000 for the year ended December 31, 2024, compared to $20,347,000 in 2023, indicating an increase of 7.2%[27] Strategic Initiatives - The company is focused on Project Elevate to optimize cost structure and streamline operations, with plans to continue these initiatives into 2025[5]

Revenue Concentration - Harte Hanks generated 72.1% of total revenue from its largest 25 clients in 2024, with the largest client accounting for 9.4%[34] - Approximately 72.1% of total revenue for 2024 was generated by the 25 largest clients[56] - The largest client generated 9.4% of total revenues in 2024 and represented 11.9% of total accounts receivable as of December 31, 2024[56] Operational Initiatives - The company expects restructuring cost reductions from "Project Elevate" to total $16.0 million from 2024 to 2026, with restructuring charges of $2.4 million and $5.7 million incurred in 2024 and 2023, respectively[33] - The company initiated "Project Elevate" to optimize operations and is expected to achieve reorganization savings of $16 million from 2024 to 2026[124] - In 2023, the company initiated Project Elevate to transform its operational cost structure and improve agility across business segments[65] Service Offerings - Harte Hanks operates in six service categories: data, marketing, sales, customer care, fulfillment, and logistics, addressing growth and customer experience challenges for B2B and B2C businesses[20] - Harte Hanks supports enterprise-level supply chain management and eCommerce scalability through its logistics services[27] - The company leverages a fleet of over 15,000 trucks for scalable third-party logistics services[34] - Harte Hanks' fulfillment network spans the U.S. and includes capabilities in Europe for efficient international product distribution[29] Technology and Innovation - The company plans to enhance its customer care services by integrating AI technology to reduce customer effort and operational costs[25] - Harte Hanks' proprietary DataView tool provides a 360-degree customer view with over 1,500 attributes for accurate predictive marketing[25] - The company has developed proprietary software, including NexTOUCH and Allink 360, which are integral to its business operations[49] Workforce and Employment - As of December 31, 2024, Harte Hanks employed 1,715 full-time employees and 288 part-time employees, with 1,141 employees based outside of the U.S.[49] - 58% of Harte Hanks' workforce was female as of December 31, 2024[51] - The company focuses on training and talent development, offering various learning opportunities to its employees[50] Financial Performance - Operating revenue for the year ended December 31, 2024, was $185.2 million, a decrease of $6.3 million, or 3.3%, compared to $191.5 million in 2023[125] - Operating expenses decreased by $5.0 million, or 2.6%, to $183.1 million for the year ended December 31, 2024, compared to $188.1 million in 2023[127] - The net loss for the year ended December 31, 2024, was $30.3 million, an increase of 1829.7% compared to a net loss of $1.6 million in 2023[125] - The diluted EPS from operations for 2024 was $(4.15), reflecting an increase of 1834.2% compared to $(0.21) in 2023[125] Market Challenges - The B2B services industry is highly competitive, with significant market share potentially lost to in-house operations or new entrants[57] - The company faces significant competition from rivals with greater financial and technical resources, which may lead to pricing pressures and reduced profit margins[60] - The company is experiencing margin compression due to rising labor costs and higher service charges from third-party providers, which may adversely affect profitability[70] - Inflation and supply chain disruptions have negatively affected the discretionary spending of customers, potentially impacting the company's results of operations[71] Regulatory and Compliance Risks - The company anticipates ongoing proposals and adoptions of new regulations affecting privacy, data protection, and marketing laws, which may impose significant compliance costs and potential fines for violations[81] - Compliance with privacy and data protection laws is costly and time-consuming, with potential penalties for non-compliance that could materially impact business operations[83] - The evolving regulatory landscape surrounding AI technologies may lead to increased operational costs and constraints on development and deployment[86] Financial Position and Liabilities - As of December 31, 2024, the company reported approximately $24.4 million in unfunded pension liabilities, indicating potential future financial obligations[98] - The company had the ability to borrow approximately $24.0 million under its Credit Facility as of December 31, 2024[151] - Total other expenses increased by $34.7 million to $40.0 million, primarily due to $37.5 million in pension termination charges[133] Audit and Financial Reporting - The audit opinion confirmed that the financial statements present fairly the company's financial position and results of operations for the year ended December 31, 2024[203] - The financial statements were prepared in accordance with generally accepted accounting principles in the United States[203] - The company has implemented a clawback policy to address potential financial misstatements[97] - The company is currently evaluating the impact of recent accounting pronouncements, including ASU 2023-09 and ASU 2024-03, on its financial disclosures[168][169]