HARTE HANKS INC

Segment Highlights

•Customer Care (approx. 29% of Total Revenue): Third quarter segment revenues were $11.6 million, representing a modest sequential decline of 2.5% from the prior quarter, and an 11.6% decline from $13.1 million in Q3 2024. Segment EBITDA was approximately $1.1 million in Q3 2025 compared to $2.5 million in the same period of the prior year. The segment remains profitable and well positioned with expanding opportunities from strategic clients and new programs in development. Subject to customary seasonality, we expect steady revenue in Q4 2025 and sequential improvement throughout 2026

•Marketing Services (22% of Total Revenue): Third quarter segment revenues were $8.8 million, reflecting a sequential increase of 1.9% from the prior quarter, and a 33.4% decline from $13.3 million in Q3 2024. Segment EBITDA was approximately $1.8 million in Q3 2025 compared to $2.8 million in the same period of the prior year. Although year-over-year results were affected by industry-wide marketing budget discipline, the segment remains profitable and is benefiting from strategic account realignments to initiate growth in 2026.

•Fulfillment & Logistics Services (49% of Total Revenue): Third quarter segment revenues were $19.1 million, reflecting a sequential increase of 5.6% from the prior quarter, and a 10.2% decrease from $21.3 million in Q3 2024. Segment EBITDA was $2.3 million in Q3 2025 compared to $1.3 million in the same period of the prior year. While revenues were lower than Q3 2024 due to completion of certain customer projects, the segment remains resilient, supported by ongoing operational efficiencies, disciplined pricing strategies, and a pipeline of new and expanding customer opportunities.