📊 HHS Key Takeaways
Is Harte Hanks Inc. (HHS) a Good Investment?
Harte Hanks is a profoundly distressed company with flat revenue (0% YoY), negative profitability (-0.5% net margin), and severe negative free cash flow (-$4.5M annually), indicating unsustainable operations in a structurally declining direct mail advertising industry. With negative operating cash flow, negative ROE/ROA, and dwindling cash reserves depleting at current burn rates, the company faces existential viability challenges absent significant strategic turnaround.
Debt-free and marginally profitable at the operating line, but revenue is flat and margins are razor-thin. Persistent negative operating and free cash flow, weak interest coverage, and a small equity base indicate fragile financial health in a structurally challenged direct-mail market. Without clear, sustained margin expansion and cash generation, fundamentals skew negative.
Why Buy Harte Hanks Inc. Stock? HHS Key Strengths
- Zero long-term debt provides balance sheet flexibility
- Adequate short-term liquidity with 1.54x current ratio
- Minimal interest coverage burden with no debt obligations
- Debt-free balance sheet with adequate near-term liquidity
- Operating income slightly positive; EPS improved materially YoY
- Asset-light working capital (high quick ratio) provides flexibility
HHS Stock Risks: Harte Hanks Inc. Investment Risks
- Negative free cash flow of -$4.5M annually burning through $5.6M cash reserves
- Structural industry decline in direct mail advertising with flat revenue trajectory
- Negative profitability across all margins (operating -0.5%, net -0.5%) with negative returns on equity (-4%) and assets (-0.9%)
- Negative operating cash flow indicates core business operations are not self-sustaining
- Zero insider activity in 90 days suggests lack of management confidence
- Negative operating and free cash flow
- Very thin margins and weak interest coverage (~1.9x)
- Flat revenue in a challenged industry heightens execution risk
Key Metrics to Watch
- Operating cash flow trajectory (currently -$1.7M)
- Free cash flow sustainability and cash depletion rate
- Revenue growth inflection (currently 0% YoY)
- Operating margin expansion potential
- Cash balance deterioration and runway to depletion
- Operating cash flow and free cash flow (TTM)
- Operating margin (%) and revenue growth YoY
Harte Hanks Inc. (HHS) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Harte Hanks Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
HHS Profit Margin, ROE & Profitability Analysis
HHS vs Services Sector: How Harte Hanks Inc. Compares
How Harte Hanks Inc. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Harte Hanks Inc. Stock Overvalued? HHS Valuation Analysis 2026
Based on fundamental analysis, Harte Hanks Inc. has mixed fundamental signals relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Harte Hanks Inc. Balance Sheet: HHS Debt, Cash & Liquidity
HHS Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Harte Hanks Inc.'s revenue has remained relatively flat over the 5-year period, with a 5% decline. The most recent EPS of $-4.15 indicates the company is currently unprofitable.
HHS Revenue Growth, EPS Growth & YoY Performance
HHS Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $39.5M | $142.0K | $0.02 |
| Q2 2025 | $38.6M | -$171.0K | $-0.05 |
| Q1 2025 | $41.6M | -$171.0K | $-0.02 |
| Q3 2024 | $47.1M | $142.0K | $0.02 |
| Q2 2024 | $45.0M | -$171.0K | $-0.03 |
| Q1 2024 | $45.4M | -$171.0K | $-0.02 |
| Q3 2023 | $47.1M | $407.0K | $0.05 |
| Q2 2023 | $47.8M | -$211.0K | $-0.03 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Harte Hanks Inc. Dividends, Buybacks & Capital Allocation
HHS SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Harte Hanks Inc. (CIK: 0000045919)
📋 Recent SEC Filings
❓ Frequently Asked Questions about HHS
What is the AI rating for HHS?
Harte Hanks Inc. (HHS) has a Combined AI Rating of SELL from Claude (STRONG SELL) and ChatGPT (SELL) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are HHS's key strengths?
Claude: Zero long-term debt provides balance sheet flexibility. Adequate short-term liquidity with 1.54x current ratio. ChatGPT: Debt-free balance sheet with adequate near-term liquidity. Operating income slightly positive; EPS improved materially YoY.
What are the risks of investing in HHS?
Claude: Negative free cash flow of -$4.5M annually burning through $5.6M cash reserves. Structural industry decline in direct mail advertising with flat revenue trajectory. ChatGPT: Negative operating and free cash flow. Very thin margins and weak interest coverage (~1.9x).
What is HHS's revenue and growth?
Harte Hanks Inc. reported revenue of $159.6M.
Does HHS pay dividends?
Harte Hanks Inc. does not currently pay dividends.
Where can I find HHS SEC filings?
Official SEC filings for Harte Hanks Inc. (CIK: 0000045919) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is HHS's EPS?
Harte Hanks Inc. has a diluted EPS of $-0.11.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is HHS a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Harte Hanks Inc. has a SELL rating with 76% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is HHS stock overvalued or undervalued?
Valuation metrics for HHS: ROE of -4.0% (sector avg: 16%), net margin of -0.5% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy HHS stock in 2026?
Our dual AI analysis gives Harte Hanks Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is HHS's free cash flow?
Harte Hanks Inc.'s operating cash flow is $-1.7M, with capital expenditures of $2.8M. FCF margin is -2.8%.
How does HHS compare to other Services stocks?
Vs Services sector averages: Net margin -0.5% (avg: 10%), ROE -4.0% (avg: 16%), current ratio 1.54 (avg: 1.5).