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Segment Reporting
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
Harte Hanks is a leading global customer experience company. We have organized our operations into three reportable segments based on the types of products and services we provide: Marketing Services, Customer Care, and Fulfillment & Logistics Services.
Our Marketing Services segment leverages data, insight, and experience to support clients as they engage customers through digital, traditional, and emerging channels. We partner with clients to develop strategies and tactics to identify and prioritize customer audiences in B2C and B2B transactions. Our key service offerings include strategic business, brand, marketing and communications planning, data strategy, audience identification and prioritization, predictive modeling, creative development and execution across traditional and digital channels, website and app development, platform architecture, database build and management, marketing automation, and performance measurement, reporting and optimization.
Our Customer Care segment offers intelligently responsive contact center solutions, which use real-time data to effectively interact with each customer. Customer contacts are handled through phone, e-mail, social media, text messaging, chat and digital self-service support. We provide these services utilizing our advanced technology infrastructure, human resource management skills and industry experience.
Our Fulfillment & Logistics Services segment consists of mail and product fulfillment and logistics services. We offer a variety of product fulfillment solutions, including printing on demand, managing product recalls, and distributing literature and promotional products to support B2B trade, drive marketing campaigns, and improve customer experience. We are also a provider of third-party logistics and freight optimization in the United States.
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”). 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 June 30, 2025:
In thousandsMarketing ServicesCustomer 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 three months ended June 30, 2024:
In thousandsMarketing ServicesCustomer CareFulfillment & Logistics ServicesRestructuring ExpenseUnallocated CorporateTotal
Revenue$12,152 $12,384 $20,499 $— $— $45,035 
Segment labor expense6,776 8,058 4,765 — 3,083 22,682 
Other segment operating expense2,505 1,396 13,348 2,282 19,531 
Restructuring expense— — — 427 — 427 
Contribution margin (loss)$2,871 $2,930 $2,386 $(427)$(5,365)$2,395 
Overhead allocation1,060 612 827 — (2,499)— 
EBITDA$1,811 $2,318 $1,559 $(427)$(2,866)$2,395 
Depreciation and amortization361 54 243 — 364 1,022 
Operating income (loss)$1,450 $2,264 $1,316 $(427)$(3,230)$1,373 
The following table presents financial information by segment for the six months ended June 30, 2025:
In thousandsMarketing ServicesCustomer 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)
The following table presents financial information by segment for the six months ended June 30, 2024:
In thousandsMarketing ServicesCustomer CareFulfillment & Logistics ServicesRestructuring ExpenseUnallocated CorporateTotal
Revenue$25,735 $24,826 $39,922 $— $— $90,483 
Segment labor expense14,050 16,157 9,265 — 6,695 46,167 
Other segment operating expense5,720 2,704 25,891 — 4,905 39,220 
Restructuring expense— — — 1,280 — 1,280 
Contribution margin (loss)$5,965 $5,965 $4,766 $(1,280)$(11,600)$3,816 
Overhead allocation2,060 1,194 1,628 — (4,882)— 
EBITDA$3,905 $4,771 $3,138 $(1,280)$(6,718)$3,816 
Depreciation and amortization733 116 491 — 728 2,068 
Operating income (loss)$3,172 $4,655 $2,647 $(1,280)$(7,446)$1,748