HARTE HANKS INC

Segment Highlights

•Customer Care, $11.8 million in revenue, 31% of total – Segment revenue for the quarter decreased $0.5 million or 4.4% versus the prior year and EBITDA totaled $1.6 million for the quarter, a decline of 30.8% compared to the same period in the prior year. The year-over-year change reflects timing fluctuations in specific programs; however, this segment remains a strong contributor to profitability and is supported by growth both in new and existing strategic client partnerships.

•Fulfillment & Logistics Services, $18.1 million in revenue, 47% of total– Segment revenue for the quarter decreased $2.4 million or 11.6% versus the prior year quarter and EBITDA totaled $1.4 million, decline of 8.3%. The contribution margin was affected by elevated production costs and softer revenues stemming from the repositioning of smaller customer projects, as well as delays and non-materialization of others. However, the segment remains resilient, supported by ongoing operational efficiencies, disciplined pricing strategies, and a healthy pipeline of new and existing customer opportunities

•Marketing Services, $8.7 million in revenue, 22% of total – Segment revenue for the quarter decreased $3.5 million or 28.7% compared to the prior year quarter. EBITDA for the second quarter totaled $1.4 million compared to $1.8 million for the second quarter of 2024. This segment experienced customer attrition and cautious client spending; however, strategic account realignment and new business pipeline development are underway to return the segment to growth.