Harte Hanks(HHS) - 2025 Q3 - Quarterly Results

Financial Performance - Revenue for Q3 2025 was $39.5 million, down from $47.6 million in Q3 2024, reflecting timing and program transitions [4] - Net loss for Q3 2025 was $2.3 million ($0.31 per diluted share), compared to net income of $0.1 million ($0.02 per diluted share) in Q3 2024 [4] - Operating income for Q3 2025 was $509,000, down from $1.90 million in Q3 2024, reflecting a decline of 73% [19] - The company reported a comprehensive loss of $2.49 million for Q3 2025, compared to a comprehensive income of $236,000 in Q3 2024 [19] Operating Expenses - Operating expenses decreased by 14.7% year-over-year to $39.0 million, compared to $45.7 million in Q3 2024 [4] - Adjusted operating margin for Q3 2025 was 3.0%, down from 6.5% in Q3 2024 [21] - The company incurred restructuring expenses of $538,000 in Q3 2025, compared to $836,000 in Q3 2024 [21] EBITDA - Adjusted EBITDA for Q3 2025 was $2.4 million, down from $4.1 million in Q3 2024 [4] - Adjusted EBITDA for Q3 2025 was $2.42 million, a decrease of 42% from $4.14 million in Q3 2024 [21] - The company expects positive EBITDA for full-year 2025, supported by ongoing cost reductions and operational efficiencies [6] Cash and Assets - The company ended Q3 2025 with $6.5 million in cash and cash equivalents and no outstanding debt [8] - Cash and cash equivalents decreased to $6.51 million as of September 30, 2025, from $9.93 million at the end of 2024 [20] - Total assets decreased to $92.71 million as of September 30, 2025, down from $101.78 million at the end of 2024 [20] - Total liabilities decreased to $72.83 million as of September 30, 2025, compared to $80.09 million at the end of 2024 [20] Revenue by Segment - Customer Care segment revenues were $11.6 million, an 11.6% decline from $13.1 million in Q3 2024 [12] - Marketing Services segment revenues were $8.8 million, reflecting a 33.4% decline from $13.3 million in Q3 2024 [12] - Fulfillment & Logistics Services segment revenues were $19.1 million, a 10.2% decrease from $21.3 million in Q3 2024 [12] Future Outlook - The partnership with Samsung Electronics America is expected to contribute to sequential improvement in Q4 and beyond [3]