v3.26.1
Segment Reporting
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
Harte Hanks is a leading global customer experience company. Based on the types of products and services we provide, we have organized our operations into three business segments: Revenue Solutions, formerly known as Marketing Services, Customer Care, and Fulfillment and Logistics.
There are three principal financial measures reported to our President (the chief operating decision maker) for use in assessing segment performance and allocating resources. Those measures are revenue, operating income and operating income plus depreciation and amortization (“EBITDA”), which is a non-GAAP measure. Operating income for segment reporting, disclosed below, is revenues less operating costs and allocated corporate expenses. Segment operating expenses are generally directly attributed to our segments and include allocations of certain centrally incurred costs such as employee benefits, occupancy, information systems, accounting services, internal legal staff, and human resources administration. These costs are allocated based on actual usage or other appropriate methods. Unallocated corporate
expenses are corporate overhead expenses not attributable to the operating groups. Interest income and expense are not allocated to the segments. The Company does not allocate assets to our reportable segments for internal reporting purposes, nor does our President evaluate operating segments using discrete asset information. The accounting policies of the segments are consistent with those described in Note B, Significant Accounting Policies.
SEC Regulation S-K 229.10(e)1(ii)(A) defines EBITDA as earnings before interest, taxes, depreciation and amortization. EBITDA is presented to provide additional information to investors about the Company’s operations on a basis consistent with the measures that the Company uses to manage its operations and evaluate its performance. Management also uses this measurement to evaluate working capital requirements. EBITDA should not be considered in isolation or as a substitute for operating income and net income prepared in accordance with U.S. GAAP or as a measure of the Company’s profitability.
The following table presents financial information by segment for the three months ended March 31, 2026:
In thousandsRevenue SolutionsCustomer CareFulfillment & LogisticsRestructuring ExpenseUnallocated CorporateTotal
Revenue$7,916 $12,857 $16,491 $— $— $37,264 
Segment labor expense4,454 9,011 3,966 — 2,379 19,810 
Other segment operating expense1,808 2,186 10,524 — 2,462 16,980 
Restructuring expense— — — 160 — 160 
Contribution margin (loss)$1,654 $1,660 $2,001 $(160)$(4,841)$314 
Overhead allocation675 771 800 — (2,246)— 
EBITDA$979 $889 $1,201 $(160)$(2,595)$314 
Depreciation and amortization160 132 516 — 274 1,082 
Operating income (loss)$819 $757 $685 $(160)$(2,869)$(768)

The following table presents financial information by segment for the three months ended March 31, 2025:
In thousandsRevenue SolutionsCustomer CareFulfillment & LogisticsRestructuring ExpenseUnallocated CorporateTotal
Revenue$8,782 $13,001 $19,778 $— $— $41,561 
Segment labor expense4,487 8,016 4,562 — 2,734 19,799 
Other segment operating expense2,511 2,100 12,644 — 2,646 19,901 
Restructuring expense— — — 838 — 838 
Contribution margin (loss)$1,784 $2,885 $2,572 $(838)$(5,380)$1,023 
Overhead allocation711 826 882 — (2,419)— 
EBITDA$1,073 $2,059 $1,690 $(838)$(2,961)$1,023 
Depreciation and amortization217 51 501 — 294 1,063 
Operating income (loss)$856 $2,008 $1,189 $(838)$(3,255)$(40)