Harte Hanks(HHS) - 2025 Q2 - Quarterly Results

Financial Performance - Total revenues for Q2 2025 were $38.6 million, down 14.2% compared to $45.0 million in Q2 2024[5] - Operating income was $34.0 thousand compared to $1.4 million in the prior year quarter[5] - Net loss was $0.3 million, or $0.05 per basic and diluted share, compared to a net loss of $27.8 million, or $3.84 per share, in the prior year quarter[5] - EBITDA for Q2 2025 was $1.1 million compared to $2.4 million in the same period in the prior year[5] - Adjusted EBITDA for the three months ended June 30, 2025, was $1,468,000, down from $3,561,000 in the same period of 2024, indicating a decrease of approximately 58.7%[17] - Contribution margin for the total operations was $1,099,000 for Q2 2025, down from $2,395,000 in Q2 2024, a decrease of about 54.2%[18] - Adjusted operating margin for the three months ended June 30, 2025, was 1.0%, down from 5.6% in the same period of 2024[17] Segment Performance - Customer Care segment generated $11.8 million in revenue, accounting for 31% of total revenue, with a decline of 4.4% year-over-year[5] - Fulfillment & Logistics Services segment revenue was $18.1 million, representing 47% of total revenue, down 11.6% compared to the prior year[5] - Marketing Services segment revenue was $8.7 million, down 28.7% year-over-year, with EBITDA totaling $1.4 million[5] - Revenue for the Fulfillment & Marketing Services segment decreased from $12,152,000 in Q2 2024 to $8,662,000 in Q2 2025, a decline of about 28.5%[18] Cash and Assets - Harte Hanks ended Q2 2025 with $4.8 million in cash and cash equivalents and $24.0 million of capacity on its credit line[4] - The cash balance increased to $9.9 million by July 31, 2025, reflecting a $0.9 million increase since March 31, 2025[4] - Cash and cash equivalents decreased from $9,934,000 in December 2024 to $4,757,000 in June 2025, a decline of approximately 52.1%[16] - Total assets decreased from $101,782,000 in December 2024 to $95,015,000 in June 2025, a decline of approximately 6.8%[16] - Total current liabilities decreased from $35,137,000 in December 2024 to $31,219,000 in June 2025, a reduction of approximately 11.2%[16] - Total stockholders' equity increased from $21,689,000 in December 2024 to $22,240,000 in June 2025, an increase of approximately 2.5%[16] Restructuring and Charges - The company recorded $0.1 million in restructuring charges in Q2 2025 related to the execution of Project Elevate[5] - Net loss for the three months ended June 30, 2025, was $335,000, compared to a net loss of $27,834,000 for the same period in 2024, representing a significant improvement[17] - Operating income for the three months ended June 30, 2025, was $34,000, compared to $1,373,000 in the same period of 2024, reflecting a significant decrease[17]