Harte Hanks (HHS) investor relations material

Executive summary

• Revenue for Q1 2026 was $37.3 million, down 10.3% year-over-year, with declines across all segments.

• Operating loss increased to $0.8 million from $0.04 million in Q1 2025, driven by lower revenues and reduced restructuring charges.

• Net loss widened to $0.6 million, or $0.08 per share, compared to $0.4 million, or $0.05 per share, in the prior year.

• Advanced sector-aligned growth strategy, focusing on higher-value services and technology-enabled delivery.

• Maintained a strong balance sheet with no outstanding debt and $4.5 million in cash at quarter-end.

Financial highlights

• Revenue decreased by $4.3 million year-over-year, primarily due to a $3.3 million drop in Fulfillment & Logistics Services.

• EBITDA for Q1 2026 was $0.3 million, down from $1.0 million in Q1 2025; Adjusted EBITDA was $0.7 million, down from $1.8 million.

• Operating expenses fell 8.6% to $38.0 million, mainly from lower production/distribution and restructuring costs.

• Cash and cash equivalents were $4.5 million at March 31, 2026, with $24.3 million available under the credit facility.

• No outstanding debt as of March 31, 2026.

Outlook and guidance

• Management believes liquidity is sufficient for the next twelve months, with no substantial doubt about going concern.

• Positioned to deliver positive EBITDA throughout 2026, leveraging a strong balance sheet and sector focus.

• No dividends were paid or planned; share repurchase authorization of $4.1 million remains available.