Harte Hanks, Inc (HHS) AI Stock Analysis
HHS AI stock analysis summary
AI ResearchHarte Hanks, Inc (HHS) provides customer experience solutions across marketing, customer care, and fulfillment services. The company has faced top-line contractions, with revenue falling 13.9% in FY2025 to $159.6M and trailing twelve-month revenue at $154.6M. Profitability remains constrained, with a trailing net profit margin of -3.7% and total debt standing at $24.0M as of June 30, 2026.
- Market cap
- $32.0M
- Revenue (TTM)
- $154.6M
- P/E
- — fwd 14.3x
- 1Y return
- 19.8% S&P 500 16.8%
- Avg. target
- $17.50 307.9% vs last close
Bull case
- HHS shares have gained 42.5% year-to-date and 19.8% over the past year, trading 41.7% above their 200-day moving average.
- Valuation multiples remain discounted relative to peers, including an EV to EBITDA of 4.5x versus the US-listed Industrials median of 13.9x.
- Analyst expectations imply significant upside, with a mean price target of $17.50 compared to the last close of $4.29.
Bear case
- Revenue has contracted over multiple years, declining 13.9% in FY2025 and posting a 5-year CAGR of -2.0%.
- Cash flow generation remains negative, with free cash flow of -$4.5M and operating cash flow of -$1.7M in FY2025.
- Profitability has deteriorated, highlighted by a trailing twelve-month operating margin of -12.2% and ROE of -30.4%.
What Harte Hanks does
Harte Hanks, Inc. operates as a customer experience company with domestic and global operations, serving industries such as B2B, consumer brands, financial services, retail, and healthcare. The company is organized into three core segments: Marketing Services, Customer Care, and Fulfillment & Logistics Services. Marketing Services delivers strategic omni-channel campaigns using audience profiling, predictive modeling, and data strategy. Customer Care manages multi-platform client interactions using CRM tools and AI-driven interfaces. Fulfillment & Logistics Services provides print-on-demand, product fulfillment, product recall management, promotional distribution, and event logistics optimization.
Growth and profitability
Harte Hanks generated $154.6M in revenue over the trailing twelve months, down from $206.3M in FY2022. Revenue declined 7.2% in FY2023, 3.3% in FY2024, and 13.9% in FY2025 to $159.6M. Operating margin dropped from 7.3% in FY2022 to 1.4% in FY2025, while the trailing twelve-month operating margin stands at -12.2%. Net income has remained negative for three consecutive years, finishing FY2025 at -$811,000. In the latest quarter ended June 30, 2026, quarterly revenue fell 1.7% year-over-year and quarterly earnings declined 90.3%.
Balance sheet and cash flow
As of June 30, 2026, Harte Hanks held $5.2M in cash and short-term investments against $24.0M in total debt, resulting in net debt of $18.9M. The company reported a current ratio of 1.30 and a debt-to-equity ratio of 1.57 on $15.3M in shareholders' equity. Cash generation has been limited, with free cash flow of -$4.5M and operating cash flow of -$1.7M in FY2025. During FY2025, capital expenditures were $2.8M, while share buybacks totaled $65,000.
Valuation and performance
Harte Hanks trades at an EV to EBITDA ratio of 4.5x, well below the 13.9x median of its US-listed Industrials peers. Its forward P/E multiple is 14.3x compared to the peer median of 17.2x, while its price-to-sales multiple is 0.2x versus the peer median of 1.5x. Over the past year, HHS returned 19.8%, outperforming the S&P 500 benchmark gain of 16.8%. Over a five-year period, however, HHS declined 38.3% compared to an 83.0% gain for the benchmark.
What analysts expect
Wall Street analysts track Harte Hanks with a mean price target of $17.50, representing a 307.9% premium over the October 16, 2026 closing price of $4.29. The company recorded 0 EPS beats over the last 4 quarters. The next earnings date is scheduled for November 9, 2026.
Key risks and what to watch
- Net debt of $18.9M and a debt-to-equity ratio of 1.57 limit financial flexibility given cash reserves of only $5.2M.
- The company missed EPS estimates in all 4 of the last four quarters, reflecting consistent forecasting challenges.
- Quarterly earnings fell 90.3% year-over-year in the period ended June 30, 2026, extending operational losses.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this HHS AI stock analysis
This page is an AI-written research summary of Harte Hanks, Inc (HHS). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: HHS income statement, HHS balance sheet, HHS key metrics, HHS chart. See the HHS stock overview for the latest quote and news.
HHS AI stock analysis FAQ
Does Harte Hanks pay a dividend?
Harte Hanks does not currently pay a dividend to shareholders.
What is Harte Hanks' current debt position?
As of June 30, 2026, Harte Hanks held $24.0M in total debt and $5.2M in cash and short-term investments, resulting in net debt of $18.9M.
How did Harte Hanks perform in FY2025?
In FY2025, revenue fell 13.9% to $159.6M, operating margin was 1.4%, and net income totaled -$811,000, or -$0.11 per share.
Who owns Harte Hanks stock?
Insiders own 47.1% of the company's shares, while institutional investors hold 22.6%, and short interest represents 0.5% of the float.