📊 HHS Key Takeaways
Is HHS a Good Investment? Thesis Analysis
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.
Why Buy 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
HHS Investment Risks to Consider
- 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
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
HHS Financial Metrics
💡 AI Analyst Insight
HARTE HANKS INC presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
HHS Profitability Ratios
HHS vs Default Sector
How HARTE HANKS INC compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is HHS Overvalued or Undervalued?
Based on fundamental analysis, HARTE HANKS INC has mixed fundamental signals relative to the Default 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.
HHS Balance Sheet & Liquidity
HHS 5-Year Financial Trend & Growth Analysis
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 Growth Metrics (YoY)
HHS Quarterly 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.
HHS Capital Allocation
HHS SEC 10-K & 10-Q Filing 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 an AI rating of STRONG SELL with 88% 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.
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.
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 STRONG SELL rating with 88% 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: 15%), net margin of -0.5% (sector avg: 12%). 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 STRONG 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 Default stocks?
Vs Default sector averages: Net margin -0.5% (avg: 12%), ROE -4.0% (avg: 15%), current ratio 1.54 (avg: 1.8).