Harte Hanks, Inc. (HHS): Business Model Canvas [Dec-2025 Updated]

You're trying to map out the current financial reality of Harte Hanks, Inc. (HHS), and after two decades analyzing these shifts, I can tell you their late 2025 Business Model Canvas shows a company in a clear transformation phase, betting big on unifying Customer Experience (CX) across marketing, care, and logistics. Honestly, the structure is complex, blending proprietary data assets with a global workforce of over 2,500 associates, all while managing a recent revenue dip-TTM revenue as of September 30, 2025, was $166.84 million, following a 17.0% drop in Q3. Still, with a clean balance sheet showing $9.0 million in cash and zero debt as of Q1 2025, their nine building blocks detail exactly how they plan to execute operational efficiency via Project Elevate and secure those high-value, blue-chip relationships. Keep reading to see the precise mechanics of their value creation and cost base.

Harte Hanks, Inc. (HHS) - Canvas Business Model: Key Partnerships

You're looking at the structure of Harte Hanks, Inc. (HHS) partnerships as of late 2025. These alliances are crucial, especially given the Q1 2025 total revenue of $41.6 million and the trailing twelve-month (TTM) revenue standing at $166.84M. The strength of these external relationships directly impacts the execution of their customer experience strategy.

The most visible recent collaboration is with Samsung Electronics America. Harte Hanks, Inc. announced the opening of a new dedicated Customer Care center in Greenville, South Carolina, on October 21, 2025. This facility, which is 14,000-square-foot, is set to support more than 150 new jobs in the community, serving as a hub for Samsung Care. This move definitely underscores a commitment to U.S.-based talent and premium support delivery.

A major strategic data play involved securing the ADS Data Direct database. On June 2, 2025, Harte Hanks, Inc. obtained exclusive rights to license this Medical Ailment Database. This HIPAA-compliant asset provides access to 100% triple opt-in consumers who have self-identified conditions across more than 200 ailment categories. This positions Harte Hanks, Inc. strongly in healthcare marketing precision.

The technology ecosystem is built around specific platforms to enhance service delivery. While the overall Customer Care segment revenue grew by 4.5% in Q1 2025 to $13.0 million, these tech partners help drive that performance. Here's a quick look at the named technology and service collaborators:

The technology alliances mentioned, specifically with Actito and Gong, are leveraged to deliver modern CX and marketing solutions. Actito is the platform used for multichannel activation, helping to address personalized messages across the customer journey. Gong, on the other hand, focuses on transforming revenue organizations by analyzing customer interactions to boost efficiency.

For specialized CX delivery, Harte Hanks, Inc. relies on service and consulting partners. Beyond ApexCX, the list includes Magellan and Outsource Consultants. These relationships help Harte Hanks, Inc. scale specialized expertise without carrying the full overhead internally. It's about accessing niche skills when the internal team needs a boost, like when they are trying to improve on the $1.8 million Adjusted EBITDA reported for Q1 2025.

Regarding strategic cloud and AI development, the search results point to Project Elevate, an initiative launched in late 2023 with Kearney, focused on cost structure and rapid AI deployment. While AWS is a common cloud provider, the specific 2025 financial commitment or partnership details directly tied to AWS under Project Elevate aren't explicitly detailed in the latest reports. What we do know is that the company is focused on leveraging technology to improve profitability, aiming to deliver positive EBITDA each quarter in 2025, a goal they achieved in Q1 2025 with $1.0 million in EBITDA.

The overall partnership strategy supports the core business segments. For instance, the Samsung deal bolsters the Customer Care segment, which accounted for 31% of total revenue at $13.0 million in Q1 2025. The data licensing strengthens the Marketing Services area, which saw a revenue drop of 35.3% in the same quarter, suggesting this new data asset is key to a rebound. If onboarding takes 14+ days, churn risk rises, so these partnerships must be seamless.

Finance: draft 13-week cash view by Friday.

Harte Hanks, Inc. (HHS) - Canvas Business Model: Key Activities

You're looking at the core engine of Harte Hanks, Inc. (HHS) operations as of late 2025, focusing on the actual numbers driving their business activities.

Delivering end-to-end Customer Experience (CX) strategy and program execution is the umbrella under which all services fall. The company's total revenue for the trailing twelve months ending September 30, 2025, stood at $166.84 million. This activity is segmented across the business, with performance varying by service line.

Managing Customer Care contact center operations saw revenue of $13.0 million in the first quarter of 2025, which represented a 4.5% increase compared to the first quarter of 2024. The company is leveraging its Amazon Connect cloud-based platform to explore growth opportunities in this segment by providing more technical support as clients migrate to advanced contact center platforms. The Customer Care segment revenue decreased by 3.9% for the nine months ended September 30, 2025, compared to the prior year period.

Providing global Fulfillment & Logistics Services for physical goods generated $19.8 million in revenue for the first quarter of 2025, marking an 1.8% rise year-over-year for that quarter. For the nine months ended September 30, 2025, this segment reported a revenue decline of 6.8%.

Executing data-driven Marketing Services and demand generation campaigns faced headwinds. In the first quarter of 2025, this segment's revenue was $8.8 million, a significant drop of 35.3% from the first quarter of 2024, attributed to reduced project work and contract expirations. The decline continued, with the Marketing Services segment experiencing a revenue decrease of 33.4% for the three months ended September 30, 2025, and 32.6% for the nine months ended September 30, 2025.

Here's a quick look at the segment revenue performance for Q1 2025:

Operational efficiency improvements via Project Elevate is a central transformation program. The company expects this initiative to yield approximately $16.0 million in reorganization savings from 2024 to 2026. This focus on efficiency is reflected in the expense structure:

• Operating expenses decreased by 14.7% for the three months ended September 30, 2025.
• Operating expenses decreased by 11.3% for the nine months ended September 30, 2025.

The execution of Project Elevate involved specific financial charges. Restructuring charges related to this initiative were $0.5 million for the three months ended September 30, 2025, and $1.5 million for the nine months ended September 30, 2025. The company ended Q1 2025 with $9.0 million in cash and no outstanding debt, supporting this transformation. Overall, total revenue for the nine months ending September 30, 2025, was $119.7 million, a decrease of 13.3% from the prior year.

Harte Hanks, Inc. (HHS) - Canvas Business Model: Key Resources

The Key Resources for Harte Hanks, Inc. (HHS) are centered on its human capital, proprietary data assets, and a stable financial foundation supporting its operational infrastructure.

Human Capital

• Global workforce of over 2,500 dedicated associates.

Financial Stability and Liquidity (Q1 2025)

You're looking at a company that, as of the first quarter of 2025, carried a very clean balance sheet, which is a key resource for weathering market shifts.

• Cash balance as of March 31, 2025: $9.0 million.
• Outstanding Debt: $0 (no debt).
• Available revolving line of credit: $24.0 million.

Proprietary Data and Technology Assets

The data assets are where Harte Hanks, Inc. really anchors its value proposition, especially in healthcare marketing.

The Medical Ailment Database, sourced from the Healthier Me Today platform, is 100% triple opt-in, which is critical for compliance.

Physical and Technological Infrastructure

Harte Hanks, Inc. supports its service delivery through tangible assets tied to its operating segments.

• Infrastructure supports the Fulfillment & Logistics Services segment, which reported revenue of $19.8 million in Q1 2025.
• Infrastructure supports the Customer Care segment, which reported revenue of $13.0 million in Q1 2025.
• Proprietary platforms include the DataView data repository and the AudienceFinder data acquisition tool.

The company is actively reinvesting savings from Project Elevate into technology to enhance operational efficiency.

Harte Hanks, Inc. (HHS) - Canvas Business Model: Value Propositions

Harte Hanks, Inc. delivers a unified Customer Experience (CX) strategy by integrating data analytics and program execution across its core offerings. This structure is evident in the segment performance, where Customer Care revenue reached $13.0 million in the first quarter of 2025, marking a 4.5% increase versus the prior year quarter, while Fulfillment & Logistics Services brought in $19.8 million, up 1.8% year-over-year.

You receive a single-provider experience because Harte Hanks, Inc. manages marketing, care, and logistics under one roof. This is reflected in the Trailing Twelve Month (TTM) revenue as of September 30, 2025, which stood at $167M. The company actively drives measurable results; for instance, the net loss in the second quarter of 2025 was $0.3 million, a substantial improvement from the $27.8 million net loss reported in the second quarter of the previous year. This operational efficiency is a direct result of management's focus, as operating expenses for the three months ended September 30, 2025, decreased by 14.7% year-over-year.

The value proposition is built on decades of experience serving blue-chip companies globally, evidenced by securing a significant new partnership with Samsung Electronics America in the third quarter of 2025. Harte Hanks, Inc. focuses on bespoke strategies, not just templated work, which is necessary when looking at the varied performance across its service lines. The company is executing Project Elevate, a transformation program expected to yield $16 million in savings from 2024 to 2026.

The composition of revenue by segment in Q1 2025 shows the breadth of the integrated offering:

The company's commitment to a full-lifecycle approach means you see services touching different parts of the customer journey:

• Securing an exclusive agreement for proprietary health data in Q1 2025.
• Delivering sales enablement support for a major enterprise IT company in Q1 2025.
• Achieving an EBITDA of $1.1 million in Q2 2025.
• Maintaining a cash balance of $9.0 million at the end of Q1 2025.

The third quarter 2025 revenue was reported at $39.5 million, with management anticipating positive EBITDA for the full year 2025. This focus on core operational improvement helps ensure the delivery of tailored solutions that drive client outcomes.

Harte Hanks, Inc. (HHS) - Canvas Business Model: Customer Relationships

You're looking at how Harte Hanks, Inc. maintains its connections with the businesses that rely on its customer experience services as of late 2025. The company's focus remains on its blue-chip client base, which includes names like Bank of America, GlaxoSmithKline, Unilever, Pfizer, HBOMax, Volvo, Ford, FedEx, Blue Cross/Blue Shield, Sony, Midea, and IBM. This relationship-driven approach is supported by over 2,500 dedicated associates spread across the Americas, Europe, and Asia Pacific.

Strategic, long-term partnerships are central, with management explicitly stating a focus on improving deal conversions to drive revenue growth and enhance customer retention, which is crucial in the current environment. This is happening while the company navigates revenue transitions, as evidenced by the Year-to-Date 2025 revenue of $119.7 million, down from $138.1 million for the same period in 2024.

The consultative approach for CX strategy is heavily tied to the execution segments. For instance, the Fulfillment & Logistics Services segment, which often involves high-touch support for complex national programs, represented 49% of total revenue in the third quarter of 2025. This segment saw a revenue decline of 10.2% for the three months ended September 30, 2025, compared to the prior year period. The company has also recently highlighted a new partnership with Samsung.

The organizational structure supports these relationships through alignment. Management has been executing a strategic realignment, including reorganizing the sales structure to align directly with business segments, aiming to offset revenue decline through cost improvements. This is a key action following challenges like the Marketing Services segment revenue dropping 33.4% year-over-year in Q3 2025 due to customer turnover and reduced client spending. The company achieved positive EBITDA of approximately $1.7 million in Q3 2025.

Here's a quick look at how the segments, which directly reflect customer engagement types, performed in Q3 2025 compared to Q3 2024:

The commitment to high-touch support and strategy is also reflected in the Q1 2025 results, where the Customer Care segment actually saw a 4.5% revenue increase, and Fulfillment & Logistics experienced a 1.8% rise, showing pockets of strong client engagement despite overall revenue pressures. The company ended the third quarter with zero debt outstanding and $6.5 million in cash and cash equivalents.

The core relationship activities can be summarized by the service focus areas:

• Dedicated management for blue-chip enterprise clients.
• Focus on securing strategic wins in healthcare and technology sectors.
• Execution across multichannel, data-driven solutions.
• Commitment to improving sales efficiency and customer retention.
• Continued execution of the transformation program, Project Elevate.

Finance: draft 13-week cash view by Friday.

Harte Hanks, Inc. (HHS) - Canvas Business Model: Channels

You're looking at how Harte Hanks, Inc. (HHS) gets its value propositions to the customer, and the numbers show a heavy reliance on physical execution alongside digital strategy.

Direct sales force focused on securing strategic, multi-segment client wins.

The sales channel is geared toward landing larger, multi-segment accounts, which is critical given the recent revenue pressures. For instance, in the first quarter of 2025, Harte Hanks, Inc. secured strategic new business wins across key industries like healthcare, technology, and automotive services. This direct effort is aimed at replenishing the pipeline, as management noted a focus on improving deal conversions going forward. The company is actively working to convert its business development pipeline in Customer Care and Fulfillment, expecting initial progress in the fourth quarter of 2025.

Global physical footprint for Fulfillment & Logistics Services.

The physical channel is substantial, underpinning a major part of the business. Harte Hanks, Inc. has over 40 years of experience in this area. The scale of operations is significant:

• Handles 4.1 million packages annually through its global 3PL fulfillment center.
• Processes more than 4 billion mail packets each year.
• The national logistics division moves 1.3 billion pounds of freight each year via road, rail, skies, and seas.

This physical channel represented 49% of Total Revenue in the third quarter of 2025. That quarter's segment revenue was $19.1 million, despite a year-over-year decrease from Q3 2024.

Digital platforms and technology integrations for MarTech delivery.

Delivery of Marketing Services and Customer Care relies on technology integration. Harte Hanks, Inc. offers services spanning marketing technology and creative services. For the Customer Care segment, the company is leveraging its Amazon Connect cloud-based platform to explore growth opportunities as clients migrate to advanced contact center platforms. The Marketing Services segment, which accounted for 22% of Total Revenue in Q3 2025, is benefiting from strategic account realignments to initiate growth in 2026, suggesting digital channel optimization is a key focus.

Here's a quick look at how the revenue streams are channeled by segment as of Q3 2025:

Partner referral networks for market and service expansion.

While specific financial metrics for partner-driven revenue aren't public, the company's focus on securing new client engagements and expanding its lead generation activities implies a reliance on a network effect, including partnerships, to drive future growth. The company recently announced a new partnership with Samsung to open a dedicated Customer Care Center in Greenville, SC, which serves as a channel for service expansion.

Corporate website and investor relations for public communication.

Public communication channels are critical for maintaining liquidity and operational flexibility. As of the third quarter of 2025, Harte Hanks, Inc. held $6.5 million in cash and cash equivalents, with zero debt outstanding. Furthermore, the company has up to $24 million available under its credit facility, which was amended in June 2025 to extend maturity to June 30, 2028. The corporate website, www.hartehanks.com, is the primary hub for releasing information like the Q3 2025 results.

The year-to-date revenue through September 30, 2025, totaled $119.7 million.

Harte Hanks, Inc. (HHS) - Canvas Business Model: Customer Segments

You're looking at the core client base for Harte Hanks, Inc. (HHS) as of late 2025, which centers on established, large-scale organizations globally that need integrated customer experience management.

Harte Hanks, Inc. partners with leading brands worldwide. The company secured strategic new business wins in the first quarter of 2025 across several key areas, showing where their complex solution demand is strongest.

The focus verticals driving these engagements include:

• Healthcare
• Technology
• Automotive Services
• Financial

The company highlighted a significant new partnership with Samsung Electronics America in the third quarter of 2025, underscoring its ability to secure major accounts.

Customers requiring complex, multi-channel Customer Care solutions and those needing national fulfillment and logistics support form the backbone of the operating segments. Here's a look at the revenue contribution from these solution areas based on the first quarter of 2025 results:

The Fulfillment & Logistics Services segment generated $19.8 million in revenue in Q1 2025, while the Customer Care segment brought in $13.0 million for the same period. The Marketing Services segment revenue was $8.8 million in Q1 2025.

While the core remains large enterprises, the company is focused on strengthening its sales pipeline and improving deal conversions to drive future growth. This focus is key to expanding its footprint, which, by extension, includes efforts to capture more business across the spectrum, though specific SMB revenue figures aren't detailed in the latest filings.

The company maintained a strong balance sheet as of Q1 2025, holding $9.0 million in cash and reporting no outstanding debt, which supports executing long-term growth strategies.

Harte Hanks, Inc. (HHS) - Canvas Business Model: Cost Structure

You're looking at the core expenses driving Harte Hanks, Inc. (HHS) operations as of late 2025. The biggest lever here is definitely personnel, which is typical for a service-heavy business like this.

The high cost of services is directly tied to labor, given the scale of the workforce. As of September 2025, employee counts were reported around $\mathbf{3,980}$ total employees, with other estimates suggesting approximately $\mathbf{4.3K}$ employees across $\mathbf{6}$ continents. This large, globally spread team represents a substantial fixed and variable labor cost base.

Operating expenses show management is actively controlling spend, though revenue headwinds persist. For the three months ended September 30, 2025, operating expenses were $\mathbf{\$39.0}$ million, a decrease of $\mathbf{14.7\%}$ compared to Q3 2024's $\mathbf{\$45.7}$ million. For the nine months ended September 30, 2025, total operating expenses were $\mathbf{\$119.2}$ million, down $\mathbf{11.3\%}$ from $\mathbf{\$134.5}$ million in the prior year period.

Technology and platform licensing is a growing area of expenditure, reflecting the shift to data-driven services. For instance, in June 2025, Harte Hanks, Inc. obtained exclusive rights to license the ADS Data Direct's Medical Ailment Database. Furthermore, technology costs were cited as a reason for an EBITDA decline in the Customer Care segment during Q1 2025. The company also continues to leverage cloud-based platforms like Amazon Connect.

Transformation efforts under Project Elevate are generating specific, measurable charges. Restructuring charges related to Project Elevate totaled $\mathbf{\$1.5}$ million for the nine months ended September 30, 2025. For the third quarter alone (three months ended September 30, 2025), these charges were $\mathbf{\$0.5}$ million.

The need to support a global client base means costs are incurred maintaining physical infrastructure across multiple locations. The geographic presence spans the United States and Other countries, with personnel spread across North America, Asia, and Europe.

Here is a summary of the key financial metrics impacting the Cost Structure for the nine months ended September 30, 2025:

The company is actively managing these costs, aiming for future savings exceeding new costs attributable to revenue growth.

You should review the Q4 capital expenditure plan to see if any major infrastructure upgrades are scheduled that could temporarily spike the physical infrastructure cost line.

Finance: draft 13-week cash view by Friday

Harte Hanks, Inc. (HHS) - Canvas Business Model: Revenue Streams

You're looking at the hard numbers for Harte Hanks, Inc. (HHS) revenue streams as of late 2025. Here's the breakdown, straight from the latest filings.

The total revenue for the trailing twelve months (TTM) ending September 30, 2025, was reported at $166.84 million. This follows a challenging period, as the third quarter of 2025 revenue came in at $39.5 million, representing a year-over-year decline of 17.0%.

Harte Hanks, Inc. organizes its revenue generation across three primary operational segments. You can see the specific contribution of each segment based on the Q3 2025 results in the table below. Honestly, the segment performance shows some real divergence in the near term.

The nine months ended September 30, 2025, cumulative revenue was $119.71 million, down 13.32% from the prior year period. The segment performance over those nine months tells a slightly different story regarding the rate of decline:

• Fees from Marketing Services (consulting, creative, digital campaigns) revenue for the nine months was $26.3 million, a decrease of 32.6% year-over-year.
• Revenue from Customer Care services (contact center operations) for the nine months was $36.4 million, a decrease of 3.9% year-over-year.
• Revenue from Fulfillment & Logistics Services (warehousing, shipping) for the nine months was $57.0 million, a decrease of 6.8% year-over-year.

To give you a bit more context on the quarterly dynamics, here are the Q1 2025 figures, which show where some of the current trends originated:

• Q1 2025 total revenue was $41.6 million, an 8.6% decline from Q1 2024.
• In Q1 2025, Customer Care segment revenue increased by 4.5% from the previous year.
• In Q1 2025, Fulfillment & Logistics Services segment revenue increased by 1.8%.
• The Marketing Services segment in Q1 2025 saw a revenue decline of 35.3%.

The company is actively working to replenish its pipeline, evidenced by a significant new partnership with Samsung Electronics America, which is expected to bolster the Customer Care segment going into Q4 2025 and beyond.