v3.26.1
Segment Reporting
 6 Months Ended
Jun. 30, 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 reportable 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 expenses 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 A, Overview and 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 June 30, 2026:
In thousandsRevenue SolutionsCustomer CareFulfillment & Logistics ServicesRestructuring ExpenseUnallocated CorporateTotal
Revenue$7,521 $12,853 $17,610 $— $— $37,984 
Segment labor expense4,127 9,321 3,965 — 2,485 19,898 
Other segment operating expense1,723 1,966 11,934 — 5,644 21,267 
Restructuring expense— — — 187 — 187 
Contribution margin (loss)$1,671 $1,566 $1,711 $(187)$(8,129)$(3,368)
Overhead allocation672 741 741 — (2,154)— 
EBITDA$999 $825 $970 $(187)$(5,975)$(3,368)
Depreciation and amortization144 186 520 — 272 1,122 
Operating income (loss)$855 $639 $450 $(187)$(6,247)$(4,490)

The following table presents financial information by segment for the three months ended June 30, 2025:
In thousandsRevenue SolutionsCustomer CareFulfillment & Logistics ServicesRestructuring ExpenseUnallocated CorporateTotal
Revenue$8,662 $11,845 $18,124 $— $— $38,631 
Segment labor expense4,459 7,511 4,732 — 2,743 19,445 
Other segment operating expense2,189 1,992 11,224 — 2,533 17,938 
Restructuring expense— — — 149 — 149 
Contribution margin (loss)$2,014 $2,342 $2,168 $(149)$(5,276)$1,099 
Overhead allocation652 737 739 — (2,128)— 
EBITDA$1,362 $1,605 $1,429 $(149)$(3,148)$1,099 
Depreciation and amortization218 50 519 — 278 1,065 
Operating income (loss)$1,144 $1,555 $910 $(149)$(3,426)$34 
The following table presents financial information by segment for the six months ended June 30, 2026:
In thousandsRevenue SolutionsCustomer CareFulfillment & Logistics ServicesRestructuring ExpenseUnallocated CorporateTotal
Revenue$15,437 $25,710 $34,101 $— $— $75,248 
Segment labor expense8,581 18,332 7,931 — 4,864 39,708 
Other segment operating expense3,531 4,152 22,458 — 8,106 38,247 
Restructuring expense— — — 347 — 347 
Contribution margin (loss)$3,325 $3,226 $3,712 $(347)$(12,970)$(3,054)
Overhead allocation1,347 1,512 1,541 — (4,400)— 
EBITDA$1,978 $1,714 $2,171 $(347)$(8,570)$(3,054)
Depreciation and amortization304 318 1,036 — 546 2,204 
Operating income (loss)$1,674 $1,396 $1,135 $(347)$(9,116)$(5,258)

The following table presents financial information by segment for the six months ended June 30, 2025:
In thousandsRevenue SolutionsCustomer CareFulfillment & Logistics ServicesRestructuring ExpenseUnallocated CorporateTotal
Revenue$17,443 $24,847 $37,902 $— $— $80,192 
Segment labor expense8,946 15,527 9,294 — 5,477 39,244 
Other segment operating expense4,700 4,092 23,868 — 5,179 37,839 
Restructuring expense— — — 987 — 987 
Contribution margin (loss)$3,797 $5,228 $4,740 $(987)$(10,656)$2,122 
Overhead allocation1,363 1,563 1,621 — (4,547)— 
EBITDA$2,434 $3,665 $3,119 $(987)$(6,109)$2,122 
Depreciation and amortization435 101 1,020 — 572 2,128 
Operating income (loss)$1,999 $3,564 $2,099 $(987)$(6,681)$(6)