Harte Hanks(HHS) - 2025 Q4 - Annual Results

Financial Performance - Fourth quarter revenues were $39.9 million, down 15.4% from $47.1 million in Q4 2024[6] - Net income for Q4 2025 was $2.2 million, or $0.30 per share, compared to a net loss of $2.4 million, or $0.33 per share, in the prior year[8] - Full year revenues in 2025 were $159.6 million, down 13.9% from $185.2 million in 2024[9] - Operating income for 2025 was $0.4 million, an 81.6% decrease from $2.1 million in 2024[9] - Positive EBITDA of $1.0 million in Q4 2025 compared to negative EBITDA of $0.3 million in Q4 2024[7] - Adjusted EBITDA for the year ended December 31, 2025 was $6,898,000, down from $13,987,000 in 2024, representing a decrease of about 50.7%[23] - Revenue for the year ended December 31, 2025 was $159,570,000, a decline of approximately 13.8% from $185,242,000 in 2024[24] - The adjusted operating margin for Q4 2025 was 0.2%, down from 4.6% in Q4 2024[23] - Contribution margin for the year ended December 31, 2025 was $4,858,000, compared to $9,646,000 in 2024, indicating a decrease of about 49.7%[24] Segment Performance - Customer Care segment revenue was $13.7 million, accounting for 34% of total revenue, down 9% year-over-year[7] - Fulfillment & Logistics Services segment revenue was $17.3 million, representing 44% of total revenue, down 17% year-over-year[7] - Revenue Solutions segment revenue was $8.9 million, a decrease of 22% compared to the prior year quarter[7] Cash and Assets - The company ended 2025 with a cash balance of $5.6 million, down from $9.9 million at the end of 2024, with zero debt[10] - Total assets decreased from $101,782,000 in 2024 to $91,826,000 in 2025, a decline of approximately 9.3%[22] - Cash and cash equivalents decreased from $9,934,000 in 2024 to $5,587,000 in 2025, a decline of approximately 43.5%[22] - The company’s pension liabilities for qualified plans decreased from $5,445,000 in 2024 to $4,106,000 in 2025, a reduction of about 24.6%[22] Liabilities and Expenses - Total current liabilities decreased from $26,734,000 in 2024 to $24,249,000 in 2025, a reduction of approximately 9.2%[22] - The company reported restructuring expenses of $1,782,000 for the year ended December 31, 2025, compared to $2,402,000 in 2024[24] Future Outlook - The company aims to deepen customer relationships to drive profitable growth and long-term value for shareholders in 2026[3]