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Segment Reporting
 9 Months Ended
Sep. 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 September 30, 2025:
In thousandsMarketing ServicesCustomer CareFulfillment & Logistics ServicesRestructuring ExpenseUnallocated CorporateTotal
Revenue$8,826 $11,553 $19,141 $— $— $39,520 
Segment labor expense4,524 7,722 5,360 — 2,776 20,382 
Other segment operating expense1,912 1,988 10,682 — 2,291 16,873 
Restructuring expense— — — 538 — 538 
Contribution margin (loss)$2,390 $1,843 $3,099 $(538)$(5,067)$1,727 
Overhead allocation633 747 754 — (2,134)— 
EBITDA$1,757 $1,096 $2,345 $(538)$(2,933)$1,727 
Depreciation and amortization222 59 655 — 282 1,218 
Operating income (loss)$1,535 $1,037 $1,690 $(538)$(3,215)$509 
The following table presents financial information by segment for the three months ended September 30, 2024:
In thousandsMarketing ServicesCustomer CareFulfillment & Logistics ServicesRestructuring ExpenseUnallocated CorporateTotal
Revenue$13,255 $13,068 $21,307 $— $— $47,630 
Segment labor expense6,730 8,390 5,647 — 3,409 24,176 
Other segment operating expense2,746 1,605 13,545 — 1,785 19,681 
Restructuring expense— — — 836 — 836 
Contribution margin (loss)$3,779 $3,073 $2,115 $(836)$(5,194)$2,937 
Overhead allocation981 567 775 — (2,323)— 
EBITDA$2,798 $2,506 $1,340 $(836)$(2,871)$2,937 
Depreciation and amortization365 44 266 — 364 1,039 
Operating income (loss)$2,433 $2,462 $1,074 $(836)$(3,235)$1,898 
The following table presents financial information by segment for the nine months ended September 30, 2025:
In thousandsMarketing ServicesCustomer CareFulfillment & Logistics ServicesRestructuring ExpenseUnallocated CorporateTotal
Revenue$26,269 $36,400 $57,043 $— $— $119,712 
Segment labor expense13,470 23,249 14,654 — 8,253 59,626 
Other segment operating expense6,612 6,080 34,550 — 7,470 54,712 
Restructuring expense— — — 1,525 — 1,525 
Contribution margin (loss)$6,187 $7,071 $7,839 $(1,525)$(15,723)$3,849 
Overhead allocation1,996 2,310 2,375 — (6,681)— 
EBITDA$4,191 $4,761 $5,464 $(1,525)$(9,042)$3,849 
Depreciation and amortization657 160 1,675 — 854 3,346 
Operating income (loss)$3,534 $4,601 $3,789 $(1,525)$(9,896)$503 
The following table presents financial information by segment for the nine months ended September 30, 2024:
In thousandsMarketing ServicesCustomer CareFulfillment & Logistics ServicesRestructuring ExpenseUnallocated CorporateTotal
Revenue$38,990 $37,894 $61,229 $— $— $138,113 
Segment labor expense20,780 24,547 14,912 — 10,104 70,343 
Other segment operating expense8,466 4,309 39,436 — 6,690 58,901 
Restructuring expense— — — 2,116 — 2,116 
Contribution margin (loss)$9,744 $9,038 $6,881 $(2,116)$(16,794)$6,753 
Overhead allocation3,041 1,761 2,403 — (7,205)— 
EBITDA$6,703 $7,277 $4,478 $(2,116)$(9,589)$6,753 
Depreciation and amortization1,098 160 757 — 1,092 3,107 
Operating income (loss)$5,605 $7,117 $3,721 $(2,116)$(10,681)$3,646