# EDGAR Filing Document

**Accession Number:** 0000045919
**File Stem:** 0001628280-26-018894
**Filing Date:** 2026-3
**Character Count:** 313856
**Document Hash:** 8937744ab4febe3559d26879a61e3fe3
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001628280-26-018894.hdr.sgml**: 20260317

**ACCESSION NUMBER**: 0001628280-26-018894

**CONFORMED SUBMISSION TYPE**: 10-K

**PUBLIC DOCUMENT COUNT**: 102

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260317

**DATE AS OF CHANGE**: 20260317

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** HARTE HANKS INC
- **CENTRAL INDEX KEY:** 0000045919
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-DIRECT MAIL ADVERTISING SERVICES [7331]
- **ORGANIZATION NAME:** 07 Trade & Services
- **EIN:** 741677284
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-07120
- **FILM NUMBER:** 26763536

**BUSINESS ADDRESS:**
- **STREET 1:** 1 EXECUTIVE DRIVE
- **STREET 2:** SUITE 303
- **CITY:** CHELMSFORD
- **STATE:** MA
- **ZIP:** 01824
- **BUSINESS PHONE:** 5124341100

**MAIL ADDRESS:**
- **STREET 1:** 1 EXECUTIVE DRIVE
- **STREET 2:** SUITE 303
- **CITY:** CHELMSFORD
- **STATE:** MA
- **ZIP:** 01824

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** HARTE HANKS COMMUNICATIONS INC
- **DATE OF NAME CHANGE:** 19920703

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** HARTE HANKS NEWSPAPERS INC
- **DATE OF NAME CHANGE:** 19771010

?xml version='1.0' encoding='ASCII'? hrth-20251231

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-K**

⌧ **ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

For the fiscal year ended December 31, 2025

**or**

□ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

Commission File Number: 001-07120

**HARTE HANKS, INC.**

*(Exact name of registrant as specified in its charter)*

---

| | | |
|:---|:---|:---|
| **Delaware** | **74-1677284** | **1 Executive Drive, Chelmsford, MA 01824** |
| (State or other jurisdiction of | (I.R.S. Employer | (Address of principal executive offices, |
| incorporation or organization) | Identification Number) | including zip code) |

---

Registrant's telephone number, including area code (512) 434-1100

Securities registered pursuant to Section 12(b) of the Act:

<u>Title of Each Class</u> <u>Trading Symbol(s)</u> <u>Name of each exchange on which registered</u> <br> Common Stock HHS NASDAQ

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes □ No ⌧

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes □ No ⌧

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ⌧ No □

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ⌧ No □

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or emerging growth company. See definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one): Large accelerated filer □ &nbsp;&nbsp;&nbsp;&nbsp;Accelerated filer □ Non-accelerated filer ⌧&nbsp;&nbsp;&nbsp;&nbsp;Smaller reporting company ⌧&nbsp;&nbsp;&nbsp;&nbsp;Emerging growth company □&nbsp;&nbsp;&nbsp;&nbsp;

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. □

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. □

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. □

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to § 240.10D-1(b). □

Indicate by check mark if the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes □ No ⌧

As of June 30, 2025, the last business day of the registrant's most recently completed second fiscal quarter, the aggregate market value of the voting and non-voting common equity held by non-affiliates was approximately $26,775,155 based on the closing price on the NASDAQ on such date. Solely for purposes of this disclosure, shares of common stock held by executive officers and directors of the registrant as of such date have been excluded because such persons may be deemed to be affiliates. This determination of executive officers and directors as affiliates is not necessarily a conclusive determination for any other purposes.

As of February 27, 2026, 7,414,794 shares of common stock, $1.00 par value per share of the registrant were issued and outstanding.

**Documents incorporated by reference:**

Portions of the Proxy Statement to be filed in relation to the Company's 2026 Annual Meeting of Stockholders are incorporated herein by reference into Part III of this Form 10-K.

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

Harte Hanks, Inc. and Subsidiaries

**Table of Contents**

Form 10-K Report

December 31, 2025

---

| | | |
|:---|:---|:---|
| | | **Page** |
| <u>[PART I](#i5f306ec409da4aae92a556d5de29c33f_13)</u> | <u>[PART I](#i5f306ec409da4aae92a556d5de29c33f_13)</u> | <u>[PART I](#i5f306ec409da4aae92a556d5de29c33f_13)</u> |
| <u>[Item 1.](#i5f306ec409da4aae92a556d5de29c33f_16)</u> | <u>[Business](#i5f306ec409da4aae92a556d5de29c33f_16)</u> | <u>[3](#i5f306ec409da4aae92a556d5de29c33f_16)</u> |
| <u>[Item 1A.](#i5f306ec409da4aae92a556d5de29c33f_19)</u> | <u>[Risk Factors](#i5f306ec409da4aae92a556d5de29c33f_19)</u> | <u>[10](#i5f306ec409da4aae92a556d5de29c33f_19)</u> |
| <u>[Item 1B.](#i5f306ec409da4aae92a556d5de29c33f_22)</u> | <u>[Unresolved Staff Comments](#i5f306ec409da4aae92a556d5de29c33f_22)</u> | <u>[19](#i5f306ec409da4aae92a556d5de29c33f_22)</u> |
| <u>[Item 1C](#i5f306ec409da4aae92a556d5de29c33f_25)</u> | <u>[Cybersecurity](#i5f306ec409da4aae92a556d5de29c33f_25)</u> | <u>[19](#i5f306ec409da4aae92a556d5de29c33f_25)</u> |
| <u>[Item 2.](#i5f306ec409da4aae92a556d5de29c33f_28)</u> | <u>[Properties](#i5f306ec409da4aae92a556d5de29c33f_28)</u> | <u>[20](#i5f306ec409da4aae92a556d5de29c33f_28)</u> |
| <u>[Item 3.](#i5f306ec409da4aae92a556d5de29c33f_31)</u> | <u>[Legal Proceedings](#i5f306ec409da4aae92a556d5de29c33f_31)</u> | <u>[21](#i5f306ec409da4aae92a556d5de29c33f_31)</u> |
| <u>[Item 4.](#i5f306ec409da4aae92a556d5de29c33f_34)</u> | <u>[Mine Safety Disclosures](#i5f306ec409da4aae92a556d5de29c33f_34)</u> | <u>[21](#i5f306ec409da4aae92a556d5de29c33f_34)</u> |
| <u>[PART II](#i5f306ec409da4aae92a556d5de29c33f_37)</u> | <u>[PART II](#i5f306ec409da4aae92a556d5de29c33f_37)</u> | <u>[PART II](#i5f306ec409da4aae92a556d5de29c33f_37)</u> |
| <u>[Item 5.](#i5f306ec409da4aae92a556d5de29c33f_40)</u> | <u>[Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](#i5f306ec409da4aae92a556d5de29c33f_40)</u> | <u>[21](#i5f306ec409da4aae92a556d5de29c33f_40)</u> |
| <u>[Item 6.](#i5f306ec409da4aae92a556d5de29c33f_43)</u> | <u>[Selected Financial Data](#i5f306ec409da4aae92a556d5de29c33f_43)</u> | <u>[22](#i5f306ec409da4aae92a556d5de29c33f_43)</u> |
| <u>[Item 7.](#i5f306ec409da4aae92a556d5de29c33f_46)</u> | <u>[Management's Discussion and Analysis of Financial Condition and Results of Operations](#i5f306ec409da4aae92a556d5de29c33f_46)</u> | <u>[22](#i5f306ec409da4aae92a556d5de29c33f_46)</u> |
| <u>[Item 7A.](#i5f306ec409da4aae92a556d5de29c33f_82)</u> | <u>[Quantitative and Qualitative Disclosures About Market Risk](#i5f306ec409da4aae92a556d5de29c33f_82)</u> | <u>[29](#i5f306ec409da4aae92a556d5de29c33f_82)</u> |
| <u>[Item 8.](#i5f306ec409da4aae92a556d5de29c33f_85)</u> | <u>[Financial Statements and Supplementary Data](#i5f306ec409da4aae92a556d5de29c33f_85)</u> | <u>[29](#i5f306ec409da4aae92a556d5de29c33f_85)</u> |
| <u>[Item 9.](#i5f306ec409da4aae92a556d5de29c33f_88)</u> | <u>[Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](#i5f306ec409da4aae92a556d5de29c33f_88)</u> | <u>[29](#i5f306ec409da4aae92a556d5de29c33f_88)</u> |
| <u>[Item 9A.](#i5f306ec409da4aae92a556d5de29c33f_91)</u> | <u>[Controls and Procedures](#i5f306ec409da4aae92a556d5de29c33f_91)</u> | <u>[29](#i5f306ec409da4aae92a556d5de29c33f_91)</u> |
| <u>[Item 9B.](#i5f306ec409da4aae92a556d5de29c33f_94)</u> | <u>[Other Information](#i5f306ec409da4aae92a556d5de29c33f_94)</u> | <u>[30](#i5f306ec409da4aae92a556d5de29c33f_94)</u> |
| <u>[Item 9C.](#i5f306ec409da4aae92a556d5de29c33f_97)</u> | <u>[Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](#i5f306ec409da4aae92a556d5de29c33f_97)</u> | <u>[30](#i5f306ec409da4aae92a556d5de29c33f_97)</u> |
| <u>[PART III](#i5f306ec409da4aae92a556d5de29c33f_100)</u> | <u>[PART III](#i5f306ec409da4aae92a556d5de29c33f_100)</u> | <u>[PART III](#i5f306ec409da4aae92a556d5de29c33f_100)</u> |
| <u>[Item 10.](#i5f306ec409da4aae92a556d5de29c33f_103)</u> | <u>[Directors, Executive Officers and Corporate Governance](#i5f306ec409da4aae92a556d5de29c33f_103)</u> | <u>[31](#i5f306ec409da4aae92a556d5de29c33f_103)</u> |
| <u>[Item 11.](#i5f306ec409da4aae92a556d5de29c33f_106)</u> | <u>[Executive Compensation](#i5f306ec409da4aae92a556d5de29c33f_106)</u> | <u>[31](#i5f306ec409da4aae92a556d5de29c33f_106)</u> |
| <u>[Item 12.](#i5f306ec409da4aae92a556d5de29c33f_109)</u> | <u>[Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](#i5f306ec409da4aae92a556d5de29c33f_109)</u> | <u>[31](#i5f306ec409da4aae92a556d5de29c33f_109)</u> |
| <u>[Item 13.](#i5f306ec409da4aae92a556d5de29c33f_112)</u> | <u>[Certain Relationships and Related Transactions, and Director Independence](#i5f306ec409da4aae92a556d5de29c33f_112)</u> | <u>[31](#i5f306ec409da4aae92a556d5de29c33f_112)</u> |
| <u>[Item 14.](#i5f306ec409da4aae92a556d5de29c33f_115)</u> | <u>[Principal Accountant Fees and Services](#i5f306ec409da4aae92a556d5de29c33f_115)</u> | <u>[31](#i5f306ec409da4aae92a556d5de29c33f_115)</u> |
| <u>[PART IV](#i5f306ec409da4aae92a556d5de29c33f_118)</u> | <u>[PART IV](#i5f306ec409da4aae92a556d5de29c33f_118)</u> | <u>[PART IV](#i5f306ec409da4aae92a556d5de29c33f_118)</u> |
| <u>[Item 15.](#i5f306ec409da4aae92a556d5de29c33f_121)</u> | <u>[Exhibits and Financial Statement Schedules](#i5f306ec409da4aae92a556d5de29c33f_121)</u> | <u>[31](#i5f306ec409da4aae92a556d5de29c33f_121)</u> |
| <u>[Item 16.](#i5f306ec409da4aae92a556d5de29c33f_537)</u> | <u>[10-K Summary](#i5f306ec409da4aae92a556d5de29c33f_537)</u> | <u>[33](#i5f306ec409da4aae92a556d5de29c33f_537)</u> |
|  | <u>[Consolidated Financial Statements](#i5f306ec409da4aae92a556d5de29c33f_130)</u> | <u>[35](#i5f306ec409da4aae92a556d5de29c33f_130)</u> |
| <u>[SIGNATURES](#i5f306ec409da4aae92a556d5de29c33f_127)</u> | <u>[SIGNATURES](#i5f306ec409da4aae92a556d5de29c33f_127)</u> |  |

---

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

**<u>CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS</u>**

This report, including the Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A"), contains "forward-looking statements" within the meaning of the federal securities laws. All such statements are qualified by this cautionary note, which is provided pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act. Forward-looking statements will also be included from time to time in our other public filings, press releases, our website, and oral and written presentations by management. Statements other than historical facts are forward-looking and may be identified by words such as "may," "will," "expects," "believes," "anticipates," "plans," "estimates," "seeks," "could," "intends," or words of similar meaning. Examples include statements regarding (1) our strategies and initiatives, including actions designed to respond to market conditions and improve our performance, (2) our financial outlook for revenues, earnings per share, operating income, expense related to equity-based compensation, capital resources and other financial items, if any, (3) expectations for our businesses and for the industries in which we operate, including the impact of economic conditions of the markets we serve on the marketing expenditures and activities of our clients and prospects, (4) competitive factors, (5) acquisition and development plans, (6) expectations regarding legal proceedings and other contingent liabilities, and (7) other statements regarding future events, conditions, or outcomes.

These forward-looking statements are based on current information, expectations, and estimates and involve risks, uncertainties, assumptions, and other factors that are difficult to predict and that could cause actual results to vary materially from what is expressed in or indicated by the forward-looking statements. In that event, our business, financial condition, results of operations, or liquidity could be materially adversely affected, and investors in our securities could lose part or all of their investments. Some of these risks, uncertainties, assumptions, and other factors can be found in our filings with the SEC, including the factors discussed below in this Item 1A, "Risk Factors" of this Annual Report, and any updates thereto in our Forms 10-Q and 8-K. The forward-looking statements included in this report and those included in our other public filings, press releases, our website, and oral and written presentations by management are made only as of the respective dates thereof, and we undertake no obligation to update publicly any forward-looking statement in this report or in other documents, our website, or oral statements for any reason, even if new information becomes available or other events occur in the future, except as required by law.

**PART I**

**ITEM 1.&nbsp;&nbsp;&nbsp;&nbsp;BUSINESS**

**<u>INTRODUCTION</u>**

Harte Hanks, Inc., together with its subsidiaries ("Harte Hanks," "Company," "we," "our," or "us") is a global Business Experience Outsourcing company. We operate at the intersection of data, marketing , sales, customer care, fulfillment, and logistics integrating front office revenue growth and customer experience operations with back office execution to deliver measurable business outcomes. With offices in North America, Asia-Pacific and Europe, we serve leading global brands enabling them to design, activate and optimize the full customer and product lifecycle.

We are the successor to a newspaper business started by Houston Harte and Bernard Hanks in Texas in the early 1920s. We were incorporated in Delaware on October 1, 1970. In 1972, Harte Hanks went public and was listed on the New York Stock Exchange ("NYSE"). We became a private company in a leveraged buyout in 1984, and in 1993 we again went public and listed our common stock on the NYSE. On July 13, 2020, we began trading on the OTCQX® Best Market (the "OTCQX"). On December 1, 2021, our stock was uplisted to be traded on the Nasdaq Global Market® ("Nasdaq"), where it continues to trade today.

All reports we file with the U.S. Securities and Exchange Commission ("SEC") under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), including our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments thereto are publicly available. These documents may be accessed free of charge on our website (http://www.hartehanks.com). These documents are provided as soon as practical after they are filed with the SEC and may also be found at the SEC. The SEC also maintains a website (http://www.sec.gov) that contains periodic reports, proxy and information statements and other information regarding issuers, including Harte Hanks, that file electronically with the SEC. Additionally, we have adopted a code of ethics that applies to our principal officers, including those serving in interim roles which is posted on our website. Our website also includes our corporate governance guidelines and the charters for each of our audit, compensation, and nominating and corporate governance committees. We will provide a printed copy of any of these documents to any requesting stockholder by following the instructions on our website. These website addresses are intended to be for inactive textual references only. None of the information on, or accessible through, these websites is part of this Form 10-K or is incorporated by reference herein.

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

**<u>OUR BUSINESS</u>**

Harte Hanks is a leading customer and brand experience company operating in six service categories - data, marketing, sales, customer care, fulfillment and logistics. In and across these service categories, we address today's biggest growth and customer experience challenges for B2B and B2C businesses across the world in the new era of intelligence and artificial intelligence ("AI"), by being a modern journey enabler. The challenges we solve include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Grappling with data, AI and technology in a cookie-restricted digital environment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Growing awareness, demand and sales for products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Storing, fulfilling and delivering samples, kits, materials and products direct to the door of consumers, influencers or businesses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Delivering better customer experience and support across multiple channels; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Delivering effectively with tighter budgets and talent shortages.

Our clients need help enabling their journey to growth, to transformation, to customer centricity, to product success and to AI powered approaches and solutions to marketing, sales, fulfillment and customer care. At the core of how we address this is a concentration on our clients' key audiences - prospects, customers, patients, members, partners, employees and influencers - and how we help align our clients' brands and products to these different audiences along journeys. This includes the **product journey,** e.g., product innovation, build, strategy, launch, sell, deliver, support and recall and the **customer journey,** e.g., how customers become aware of their needs, how they buy, making the purchase, using the product or service, advocacy and renewal. We are focused on helping our clients better understand, engage, acquire, deliver to, service, support and retain these audiences. We start by understanding and architecting the journey in focus, and then enable, deliver and manage some or all aspects along this journey. Our alignment of customers and products on behalf of brands along the entire lifecycle distinguishes us from most other agencies and competitors in our service categories.

We offer a uniquely diverse range of services and solutions in and across our service categories to businesses in the following industries:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• B2B Technology & Services including cloud, SaaS, hardware, software, semiconductors, health technology, fintech, electronics, distributors and telecommunications

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Healthcare, Pharmaceuticals & Health Insurance

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Consumer Products including health, well-being and beauty; consumer tech/electronics; domestic appliances

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Travel, Hospitality, Streaming & Entertainment

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• QSRs (Quick Service Restaurants)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Financial Services and Fintech

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Automotive

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Retail

We work in partnership with our clients to provide them with: data-driven analytics and actionable insights from research; robust customer-experience ("CX"), marketing or sales strategies; and the data, content & technology to enable delivery. We then combine these insights with seamless program execution, fulfillment, service and delivery on a project or ongoing service basis to meet our clients' goals. In essence we offer services along the customer & product lifecycle - from Data to Demand, to Deal, to Delivery, and everything in between.

Operationally, starting in 2024, our services are organized into three business units that span the end to end customer and product lifecycles:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Data, marketing, demand generation and managed marketing services

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Customer Care

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fulfillment & Logistics

**Data, Marketing, Demand Generation and Managed Marketing Services**

Harte Hanks helps our clients determine, detect and activate their audiences through traditional, digital, and emerging channels. We provide full service multi-channel marketing from strategy to campaign execution. This includes the support of our customers' sales teams in their continued pursuit of excellence, delivering specialized outsourcing, optimization, lead nurturing and messaging development services to global and national partners. We leverage data, insights, technology, and award-winning creative solutions to meet and exceed our clients' business objectives and optimize our clients' return on investment.

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

**Data, Marketing, Demand Generation and Managed Marketing Services** *(continued)*

Our key offerings include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Data & Analytics** – In-depth data and analytics including audience identification, profiling, segmentation and prioritization, predictive modeling and data strategy. We provide data hygiene and cleansing to ensure the best possible results. We access broad first-party and third-party data sources, search and social media, and research through syndicated, primary and secondary sources, and we leverage our proprietary DataView tool, a comprehensive, aggregate data mart for B2C (USA) and B2B (Global) that provides a 360-degree customer view, with over 1,500 attributes enabling accurate predictive marketing to our clients. We also offer a unique intent data solution called Audience Finder for detecting in-market prospects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Research & Intelligence** - Primary and secondary research to help our clients understand their customers, category, competitors and capabilities, either as a standalone deliverable or to inform the development of strategies for campaigns and programs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• Strategy** – Provide strategic guidance to help clients efficiently and effectively plan and execute omnichannel marketing, demand generation and customer experience programs that deliver business results. We leverage data and insights to enhance our clients' understanding of their consumers, competitors and category dynamics, then apply those insights to develop the strategies to fuel activities such as customer acquisition, engagement, purchase behavior, loyalty and advocacy. Our expertise spans the range of strategies including targeting, Go-To-Market, commercial, product launch, customer experience, campaign, content, ABM (Account Based Marketing) and demand strategy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• Creative & Content** - Full-service creative and content design, development and execution spanning traditional and digital channels, including creative concepts, messaging and content assets for print, broadcast, direct mail, website, app, display, social, mobile, search engine marketing, and voice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• Marketing Technology** – Website and app development, e-commerce development and enablement, database building and management, platform architecture creation, and marketing automation to serve as the foundation for digital and multi-channel marketing execution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Digital and Multi-channel Marketing Execution & Advertising -** Orchestration and execution of programs and campaigns across multiple channels, territories and audiences, using data, strategies, content and Marketing technology or MarTech provided either by Harte Hanks or by our clients. Setup and management of digital advertising programs and campaigns across the latest advertising channels (e.g., Google, Meta, LinkedIn, TikTok) and platforms (DSPs, ABM advertising, industry networks).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Demand Generation and ABM** - Providing intelligence-based B2B solutions that understand audiences and their behaviors, and then inspire and drive action to deliver results. These solutions help companies understand which accounts, sectors and persons to target, and then generate marketing qualified leads ("MQLs") and pipelines for their marketing and sales team, through combining data, strategy, content, MarTech and digital/multi-channel execution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Managed Marketing Services** - Also referred to as "Marketing as a Service". A flexible outsourcing marketing operations solution, that works as a highly integrated extension of a client's own marketing function by blending the best of agency and business outsourcing processes and capabilities. Marketing as a Service operationalizes, manages and delivers some or all of: data operations, marketing technology, analytics, demand generation, and staff augmentation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Inside Sales Outsourcing** - Combining best-in-class analytics, accomplished sales professionals and full-cycle experimentation we provide B2B enterprises, and Small to Midsized Businesses with a fully outsourced sales service, that can work alongside or in lieu of an internal sales function.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• Lead Generation** – Combining data, lead generation resources and technology, we provide turnkey lead generation and development that converts interested or good fit prospects into leads for sales to qualify, nurture and sell to.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Sales Play Development** - Designing sales plays and cadences to enable sales teams to find, plan, engage, nurture and convert prospects into sales opportunities.

**Customer Care**

Our customer care services are customized to meet the needs of our partners' customer, helping them attract new buyers and turn existing patrons into loyal brand advocates. We support our clients by addressing their end customers' urgent needs, navigating an increasingly-complex technology landscape, and integrating AI technology and automation — while maintaining a fierce devotion to reducing customer effort, for the benefit of both the business and the buyer. This approach to "effortless customer experience" not only drives better service results but is also designed to lower our clients' operational costs.

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

Our global, omnichannel delivery model is focused on providing our clients three key services:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Customer Service Outsourcing -** Our accomplished customer care associates interact and resolve consumer queries and complaints across hardware and software platforms, healthcare benefit plans, product recalls and/or a myriad of other customer service issues. We leverage technology to help reduce customer effort while providing a human touch to increase customer satisfaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Customer Care Technology and AI Transformation** – Our solution services teams configure various CRM solutions (e.g., Salesforce, Zendesk) and channel /AI technology including Amazon Connect to create meaningful customer interactions by connecting content between agent, AI-driven interfaces and web-based self-help tools and community forums.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Self-Service Technology** - We provide and maintain self-service solutions through Interactive Voice Response ("IVR"), Help Centers, online, and via apps and channel technology.

We also analyze a significant amount of aggregated data obtained from customer interactions on behalf of our clients. We leverage information gained from this analysis and end customer-driven feedback to drive efficiencies, provide insights on predictive behaviors that lead to lower customer churn and help our clients innovate their core product offerings and develop innovative product features.

**Fulfillment & Logistics Services**

Our fulfillment and logistics services are designed to meet the diverse and dynamic needs of businesses across industries, ensuring that products, promotional materials, and essential items are delivered efficiently, accurately, and on time. Harte Hanks fulfillment unlocks critical sales enablement, value-added product fulfillment, and eCommerce channels for our clients. Harte Hanks logistics supports the supply chain needs of our clients in everything from time-sensitive deliveries to full scale supply chain management. By leveraging our modern infrastructure, advanced technology, and industry expertise, we help our clients streamline their operations, enhance customer experience, and optimize cost efficiencies. We support enterprise-level supply chain management, execute precise time-sensitive deliveries, and enable eCommerce scalability.

**End to End Product, Print-On-Demand, and Mail Fulfillment Services**

Our extensive fulfillment capabilities include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Print-On-Demand & Literature Distribution** – We facilitate the seamless production and distribution of marketing materials, sales collateral, and product literature, ensuring businesses can effectively engage with customers, prospects, and partners.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Promotional & Branded Product Distribution** – We manage and distribute promotional products, trade show materials, and corporate gifts to enhance brand awareness and customer engagement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Custom Kitting & Event Fulfillment** – Our curated kitting solutions support corporate events, influencer marketing programs, employee appreciation campaigns, and conference giveaways, ensuring that clients can create impactful brand experiences.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Product Recall Management** – We assist in efficient product recalls, ensuring regulatory compliance, customer safety, and brand reputation protection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Temperature-Controlled & FDA-Registered Fulfillment Centers** – We have strategically located fulfillment centers across the United States, that provide temperature-controlled storage and are FDA-registered to handle sensitive products such as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Nutritional supplements, medical foods, and baby formulas

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Chocolates, coffee, tea, snack foods, nuts, and seeds

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Pet food, treats, and nutritional supplements

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Scalable Global Fulfillment** – Our fulfillment network spans the U.S., with capabilities in Europe and additional support from regional logistics partners that ensure efficient international product distribution.

Through our upgraded order management platform, we can now streamline order processing, facilitate seamless integration with various data sources and eCommerce platforms, and ensure real-time visibility into inventory and shipment status.

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

**Third-Party Logistics & Freight Optimization**

Harte Hanks logistics services help businesses achieve supply chain excellence by ensuring efficient transportation, freight optimization, and timely product delivery. Our logistics expertise enables businesses to reduce costs, improve delivery speed, and optimize their supply chain operations—whether managing individual shipments or full-scale supply chain management. Our comprehensive logistics solutions include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Nationwide & Regional Shipping** – We facilitate the shipping of millions of time-sensitive materials annually, leveraging our nationwide logistics network.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Certified Fleet & Expedited Shipping** – With access to a contracted fleet of over 15,000 trucks, we provide clients with scalable third-party logistics (3PL) services tailored to their needs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Allink®360: Proprietary Logistics Technology** – Our proprietary rate-shopping system, Allink 360, optimizes freight costs and delivery timelines, ensuring shipments arrive on time and within budget.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Flexible & Scalable Logistics Solutions** – We offer customized logistics solutions designed to accommodate businesses of all sizes, from startups to Fortune 500 enterprises.

**Client Relationships**

We are known for helping clients build deep customer relationships, create connected customer experiences, and optimize each and every customer touch point in order to deliver desired business outcomes. Realizing our clients' success is the only valid measure of our own success. We ensure all our efforts are aligned with our clients' business objectives and measured against defined performance metrics. It is this commitment to our clients and their businesses that allows us to build meaningful relationships with them. Our client engagements may consist of one or a few of our service offerings – with a goal toward continuously expanding our relationships. We provide cross-service client management along with continuous business reviews to ensure our clients receive value from our partnerships.

**Use of Subcontractors**

Certain segments of our business rely on subcontractors and other third parties to provide a portion of our overall services in certain engagements. Over the years we have established strong relationships with subcontractors that translate into high level service and favorable prices for our customers.

**Restructuring Activities**

Our management team continuously reviews and adjusts our cost structure and operating footprint to optimize our operations, and invest in improved technology. The program named "Project Elevate" involved the optimization and rationalization of our business resources as well as the partial reinvestment of savings into the Company's sales and marketing team, technology, and strategy. Reorganization cost reductions from Project Elevate during 2024 through 2025 are estimated to be $16.0 million. In connection with our cost-saving and restructuring initiatives, we incurred total restructuring charges of $1.8 million and $2.4 million in 2025 and 2024, respectively. This program has resulted in ongoing cost optimization and rationalization initiatives across the organization.

**Customers**

Our clients include large multinational enterprises, small and medium-sized businesses and government organizations. Our largest client in terms of revenue generated 10.5% of total revenues in 2025. Our largest 25 clients in terms of revenue generated 68.3% of total revenue in 2025. Our clients span a wide range of industries including but not limited to retail, travel, streaming, healthcare, financial services, and technology, which reduced the concentration risk of the Company in any one sector. We generally enter into long-term contracts with our clients ranging in duration from one to three years. Most of our contracts do not require our customers to purchase a minimum amount of services from us. In general, our contracts with our customers are terminable on short notice with little or no penalty payable on termination.

**Sales and Marketing**

Harte Hanks operates a modern sales and marketing growth engine to generate awareness, create demand and convert this demand into new business, as well as support existing client growth and retention. As a B2B services company we practice the marketing and sales methodology and tactics we offer to our clients, including ABM, demand generation, content marketing, inside sales and enterprise sales. We also leverage partnerships to extend our reach and broaden our solutions.

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

For marketing, we leverage a combination of corporate marketing resources, marketing services resources and a modern MarTech stack including CRM, content management, SEO/digital advertising tools to support targeting, account based marketing, demand creation and awareness.

For sales we rely on our enterprise and solution sellers, combined with an internal sales team, to sell our products and services to new clients and task our employees supporting existing clients to expand our client relationship through additional solutions and products. We have expanded our sales team coverage internationally to support our global client and prospect network. Our sales force sells a variety of solutions and services to address our clients' cross-selling targeted marketing needs. We also maintain solution-specific experts in our sales force and sales groups to sell our individual products and solutions, with expertise by target industries including B2B, Health and B2C.

We had 12 employees in our corporate sales and marketing function as of December 31, 2025.

**Competition**

Our competition comes from local, national, and international marketing, advertising, customer care, print fulfillment, smaller 3PL, logistics companies, and internal client resources, against whom we compete for individual projects, entire client relationships, and marketing expenditures. The principal competitive factors in our industry are the breadth, depth and quality of service offerings, technical and strategic expertise, the perceived value of the services provided, reputation, pricing, and brand recognition. We also compete against social, mobile, web-based, email, print, broadcast, and other forms of advertising for marketing and advertising dollars in general.

Furthermore, competition may begin to emerge as a result of the availability of in-house information technology solutions that can replicate some of our services. We expect our clients to continue to improve their information technology systems and offerings and, in some circumstances, move the services we provide in-house.

**Seasonality**

Some of our revenue streams tend to be higher in the fourth quarter than in other quarters during a given year. This increased revenue is a result of overall increased activity prior to the holiday season in the retail vertical, and due to the open enrollment period in the healthcare vertical.

**<u>GOVERNMENT REGULATION</u>**

As a company conducting varied business activities for clients across diverse industries around the world, we are subject to a variety of domestic and international legal and regulatory requirements that impact our business, including, for example, regulations governing consumer protection, and unfair business practices, contracts, e-commerce, intellectual property, labor, and employment (especially wage and hour laws), securities, tax, and other laws that are generally applicable to commercial activities. We do not anticipate making material capital expenditures to maintain compliance with government regulations.

We are also subject to, or affected by, numerous local, national, and international laws, regulations, and industry standards that regulate direct marketing activities, including those that address privacy, data security, and unsolicited marketing communications. The most significant aspect of these laws and regulations that may be applied to, or affect, our business or the businesses of our clients include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Federal Trade Commission's positions regarding the processing of personal information and consumer protection as expressed through its Protecting Consumer Privacy in an Era of Rapid Change, Data Brokers, Big Data and Cross-Device Tracking reports (each of which seek to address consumer privacy, data protection, and technological advancements related to the collection or use of personal information for marketing purposes).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Data protection laws in the United States ("U.S.") (which are generally state specific) and in the European Union ("EU"), including the General Data Protection Regulation ("EU Regulation 679/2016"), each of which imposes a number of obligations with respect to the processing of personal data, and with respect to EU Regulation 679/2016 also imposes prohibitions related to the transfer of personal information from the EU to other countries, including the United States, that do not provide data subjects with an "adequate" level of privacy or security, and applies to all of our products in the EU.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Financial Services Modernization Act of 1999, also known as the Gramm-Leach-Bliley Act ("GLB"), which, among other things, regulates the use for marketing purposes of non-public personal financial information of

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

consumers held by financial institutions. Although Harte Hanks is not considered a financial institution, many of our clients are subject to the GLB. The GLB also includes rules relating to the physical, administrative, and technological protection of non-public personal financial information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Health Insurance Portability and Accountability Act of 1996 ("HIPAA"), which regulates the use of protected health information for marketing purposes and requires reasonable safeguards designed to prevent intentional or unintentional use or disclosure of protected health information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Fair Credit Reporting Act ("FCRA"), which governs, among other things, the sharing of consumer report information, access to credit scores, and requirements for users of consumer report information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Fair and Accurate Credit Transactions Act of 2003 ("FACT Act"), which amended the FCRA and requires, among other things, consumer credit report notices for creditors that use consumer credit report information in connection with risk-based credit pricing actions and also prohibits a business that receives consumer information from an affiliate from using that information for marketing purposes unless the consumer is first provided a notice and an opportunity to request the business not to use the information for such marketing purposes, subject to certain exceptions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Federal and state laws governing the use of email for marketing purposes, including the U.S. Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003 ("CAN-SPAM"), Canada's Anti-Spam Legislation ("CASL") and similar e-Privacy laws in Europe (in support of Directive 2002/58/EC).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Federal and state laws governing the use of telephones for unsolicited marketing purposes, including the Federal Trade Commission's Telemarketing Sales Rule ("TSR"), the Federal Communications Commission's Telephone Consumer Protection Act ("TCPA"), various U.S. state do-not-call laws, Canada's National Do Not Call laws and rules ("Telecommunications Act") and similar e-Privacy laws in Europe (in support of Directive 2002/58/EC).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Federal and state laws governing the collection and use of personal data online and via mobile devices, including but not limited to the Federal Trade Commission Act and the Children's Online Privacy Protection Act, which seek to address consumer privacy and protection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Federal and state laws in the U.S., Canada, and Europe specific to data security and breach notification, which include required standards for data security and generally require timely notifications to affected persons in the event of data security breaches or other unauthorized access to certain types of protected personal data.

There are additional consumer protection, privacy, and data security regulations in locations where we or our clients do business. These laws regulate the collection, use, disclosure, and retention of personal data and may require consent from consumers and grant consumers other rights, such as the ability to access their personal data and to correct information in the possession of data controllers.

As a result of increasing public awareness and interest in individual privacy rights, data protection, information security, and other concerns regarding marketing communications, federal, state, and foreign governmental and industry organizations continue to consider new legislative and regulatory proposals that would impose additional restrictions on direct marketing services and products.

In addition, our business, in general, and the way we do business in particular, may be affected by the impact of these restrictions on our clients and their marketing activities. These additional regulations could increase compliance cost and requirements, as well as restrict or prevent the collection, management, aggregation, transfer, use, or dissemination of information or data that is currently legally available. Continued public interest in individual privacy rights and data security may result in the adoption of further voluntary industry guidelines that could impact our direct marketing activities and business practices.

**<u>INTELLECTUAL PROPERTY RIGHTS</u>**

Our intellectual property assets include trademarks and service marks that identify our Company and our services, know-how, software, and other technology that we develop for our internal use and for license to clients and data and intellectual property licensed from third parties, such as commercial software and data providers. We generally seek to protect our intellectual property through a combination of license agreements and trademark, service mark, copyright, and trade secret laws as well as through domain name registrations and enforcement procedures. We also enter into confidentiality agreements with many of our employees, vendors, and clients and seek to limit access to and distribution of intellectual property and other proprietary information. We pursue the protection of our trademarks and other intellectual property in the U.S. and internationally. Although we from time to time evaluate inventions for their possibility of being awarded a

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

patent, we do not own any patents, and patents are not core to our intellectual property strategy (other than as may be incidental to commercially available technology or software we license).

We have developed proprietary software including NexTOUCH and Allink<sup>®</sup>360, each of which are integral to our business. NexTOUCH is key to the success of our print and product fulfillment business while Allink<sup>®</sup>360 ensures customers' products are delivered on time and on-budget.

**<u>HUMAN CAPITAL RESOURCES</u>**

As of December 31, 2025, Harte Hanks employed 1,719 full-time employees and 350 part-time employees, of which approximately 1,380 are based outside of the U.S., primarily in the Philippines. A portion of our workforce is provided to us through staffing companies. None of our workforce is represented by labor unions. We consider our relations with our employees to be good.

We believe that our employees are the key to our success. Our human capital strategy focuses on:

***Training and Talent Development***: Harte Hanks is committed to the education of its employees and has committed to providing its employees with a variety of learning opportunities, including, but not limited to, technical skill development, soft skills development, workplace conduct guidance, and IT security training. Harte Hanks is proud of its diverse workforce and cross-cultural competency and, as of December 31, 2025, employed individuals in 7 different countries. As of December 31, 2025, 58% of Harte Hanks' workforce was female. Harte Hanks is committed to recruiting and employing qualified candidates regardless of their gender or cultural background.

***Employee Benefits***: Harte Hanks believes in the importance of offering its employees competitive salaries and wages, together with comprehensive insurance options. Harte Hanks recognizes the importance of comprehensive healthcare benefits, including medical, prescription drug, vision and dental, and employees and their family members are provided with tools and resources to assist in adopting and maintaining a healthy lifestyle. Harte Hanks pays the cost of basic life insurance, accidental death and dismemberment insurance, and short-term and long-term disability for its employees. Additionally, employees may purchase supplemental life and dependent life insurance. We also sponsored a 401(k) retirement plan in which we match a portion of employees' voluntary before-tax contributions. Under this plan, both employee and matching contributions vest immediately.

**ITEM 1A.&nbsp;&nbsp;&nbsp;&nbsp;RISK FACTORS**

*This section discusses the most significant factors that could affect our business, results of operations and financial condition, including the price of our common stock. You should carefully consider the following risks, which represent the material risk factors that affect the Company and are known to the Company at this time, as well as the other information contained in this Annual Report on Form 10-K in evaluating our company and our common stock. The risks described below are not the only ones we face. Additional risks not presently known to us or that we currently deem immaterial may also adversely affect our business, results of operations, or financial condition.*

We have grouped these risk factors into three categories:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Risks related to our business and how we operate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Risks related to cybersecurity and technology;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Risks related to our capital structure and common stock.

**<u>Risks Related to our Business and How we Operate</u>**

***Most of our client engagements are cancellable on short notice.***

The services we offer, in particular for contact center services, are generally terminable upon short notice by our clients, even if the term of the agreement (and the expected duration of services) is several or many years. Many of our customer agreements do not have minimum volume, revenue requirements or exclusivity arrangements, so clients may (and do) vary their actual orders from us over time based on their own business needs, their satisfaction with the quality and pricing of our services, and a variety of other competitive factors. In addition, the timing of particular jobs or types of jobs at particular times of year (such as mail programs supporting the holiday shopping season or contact center programs supporting a specific event) may cause significant fluctuations in the operating results of our operations in any given quarter.

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

***A large portion of our revenue is generated from a limited number of clients. The loss of a client or significant work from one or more of our clients has adversely affected our business and could in the future adversely affect our business.***

Our largest client (measured in revenue) generated 10.5% of total revenues in 2025 and represented 12.3% of total accounts receivable as of December 31, 2025. Approximately 68.3% of our revenue for 2025 was generated by our 25 largest clients. While we typically have multiple projects with our largest customers which would not all terminate at the same time, the loss of one or more of our larger clients or even a single project or contract with one of our largest clients could adversely affect our business, results of operations, and financial condition if the lost revenues are not replaced with profitable revenues from that client or other clients.

***Our industry is subject to intense competition and dynamic changes in business model, which in turn could cause our operations to suffer.***

The B2B services industry is highly competitive, highly fragmented, and subject to rapid change. We believe the principal competitive factors in this market are breadth, depth, and quality of service offerings, ability to tailor specific solutions to the needs of clients and their customers, the ability to attract, train, and retain qualified staff, cybersecurity infrastructure, compliance rigor, global delivery capabilities, pricing, and marketing and sales capabilities. We compete for business with a variety of companies, as well as in-house operations of existing and potential clients. If our clients place more focus on in-house marketing or utilize new or emerging technologies to internalize these operations, the size of the market for third-party service providers like us could decrease significantly. Similarly, if competitors offer their services at lower prices to gain market share or provide services that gain greater market acceptance than the services we offer or develop, the demand for our services may decline.

Specialized providers or new entrants can enter our markets by developing new systems or services that could impact our business. The opportunity for new entrants in our industry may expand as digital engagement and offerings increase in importance, and barriers to entry remain low. New competitors, new strategies by existing competitors or clients, and consolidation among clients or competitors could result in significant market share gains by our competitors, which could have an adverse effect on our revenue.

Some emerging technologies, such as AI, Robotic Process Automation, Machine Learning, Voice of the Customer, Interactive Voice Response, and Internet of Things, may cause an adverse shift in the way certain of our existing business operations are conducted, including by replacing human contacts with automated or self-service options, or by decreasing the size of the available market. We also expect our competitors to continue to improve their technology infrastructure, including with the use of AI and machine learning solutions, to interact with clients and prospects, automate their services, process and analyze large amounts of data and grow their customer base. Our ability to innovate our own technology infrastructure and appropriately grow our CX solutions offerings using these tools (and predicting the next generation of such tools) will affect our ability to compete. We may be unsuccessful at anticipating or responding to new developments on a timely and cost-effective basis, and our use of technology may differ from accepted practices in the marketplace. Certain of our solutions may require lengthy and complex implementations that can be subject to changing client preferences and continuing changes in technology, which can increase costs or adversely affect our business.

***Current and future competitors may have significantly greater financial and other resources than we do, and they may sell competing services at lower prices or at lower profit margins, resulting in pressures on our prices and margins.***

The size of our competitors varies widely across vertical markets and service lines. Some of our competitors have significantly greater financial, technical, marketing, and other resources than we do in one or all of our market segments. As a result, our competitors may be in a position to respond more quickly than we can to new or emerging technologies, methodologies, and changes in customer requirements, or may devote greater resources than we can to the development, promotion, sale, and support of innovative products and services. Moreover, new competitors or alliances among our competitors may emerge and potentially reduce our market share, revenue, or margins. Some of our competitors also may choose to sell products or services that compete with ours at lower prices by accepting lower margins and profits or may be able to sell products or services that compete with ours at lower prices given proprietary ownership of data, technical superiority, a broader or deeper product or experience set, greater capital resources or economies of scale. Price reductions or pricing pressure by our competitors could negatively impact our margins and results of operations and could also harm our ability to retain clients or obtain new customers on favorable terms. Competitive pricing pressures tend to increase in difficult or uncertain economic environments, due to the reduced marketing expenditures of many of our clients and

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

prospects, and in turn negatively impact the competitive business environment for marketing service providers such as our company.

***We must maintain technological competitiveness, continually improve our processes, and develop and introduce new services in a timely and cost-effective manner.***

We believe that our success depends on, among other things, maintaining technological competitiveness in our products, processing functionality, and software systems and services. Technology changes rapidly as makers of computer hardware, network systems, programming tools, computer and data architectures, operating systems, database technology, and mobile devices continually improve their offerings. Advances in information technology may result in changing client preferences for products and product delivery channels in our industry. The increasingly sophisticated requirements of our clients require us to continually improve our processes and provide new products and services in a timely and cost-effective manner (whether through development, license, or acquisition). We may be unable to successfully identify, develop, and bring new and enhanced services and products to market in a timely and cost-effective manner, such services and products may not be commercially successful, and services, products, and technologies developed by others may render our services and products noncompetitive or obsolete.

***Our success depends on our ability to consistently and effectively deliver our services to our clients***.

Our success depends on our ability to effectively and consistently staff and execute client engagements within the agreed upon time frame and budget. Depending on the needs of our clients, our engagements may require customization, integration, and coordination of a number of complex product and service offerings and execution across many facilities. Moreover, in some of our engagements, we rely on subcontractors and other third parties to provide some of the services to our clients, and we cannot guarantee that these third parties will effectively deliver their services, that we will be able to easily suspend work with contractors that are not performing adequately, or that we will have adequate recourse against these third parties in the event they fail to effectively deliver their services as we are generally responsible for the work of these sub-contractors. Other contingencies and events outside of our control may also impact our ability to provide our products and services, such as pandemics or other national or global health crisis or severe weather events that could disrupt our delivery networks. Our failure to effectively and timely staff, coordinate, and execute our client engagements may adversely impact existing client relationships, the amount or timing of payments from our clients and our reputation in the marketplace as well as our ability to secure additional business and our resulting financial performance. In addition, our contractual arrangements with our clients and other customers may not provide us with sufficient protection against claims for lost profits or other claims for damages.

***We may experience in the future, reduced demand for our products and services due to the financial condition and marketing budgets of our clients and other factors that may impact the industry verticals that we serve.***

Marketing budgets are largely discretionary in nature, and as a consequence are easier to reduce in the short-term than other expenses. Our customers have in the past, and may in the future, respond to their own financial constraints, whether caused by weak economic conditions, weak industry performance or client-specific circumstances, by reducing their marketing spend. Customers may also be slow to restore their marketing budgets to prior levels during an economic recovery and may respond similarly to adverse economic conditions in the future. Our revenues are dependent on national, regional, and international economies and business conditions. A long-lasting economic recession, regardless of the cause, or anemic recovery in the markets in which we operate could have material adverse effects on our business, financial position, or operating results. Similarly, industry or company-specific factors may negatively impact our clients and prospective clients, and in turn result in reduced demand for our products and services, client insolvencies, collection difficulties or bankruptcy preference actions related to payments received from our clients. We may also experience reduced demand as a result of consolidation of clients and prospective clients in the industry verticals that we serve.

***We must effectively manage our costs to be successful. If we do not achieve our cost management objectives, our financial results could be adversely affected.***

Our business plan and expectations for the future require that we effectively manage our cost structure, including our operating expenses and capital expenditure across our operations. The program named "Project Elevate" involved the optimization and rationalization of our business resources as well as the partial reinvestment of savings into the Company's sales and marketing team, technology, and strategy. However, we may not be able to recognize all identified potential savings and even if we are able to recognize the identified savings, such cost savings may be insufficient to achieve our cost management objectives. To the extent that we do not successfully manage our costs our financial results may be adversely affected.

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

***Consumer perceptions regarding the privacy and security of their data may prevent or impair our ability to offer our products and services.***

Various local, national, and international regulations, as well as industry standards, give consumers varying degrees of control as to how personal data is collected, used, and shared for marketing purposes. If, due to privacy, security, or other concerns, consumers exercise their ability to prevent or limit such data collection, use, or sharing, it may impair our ability to provide direct marketing services for those consumers and limit our clients' demand for our services. Additionally, privacy and security concerns may limit consumers' willingness to voluntarily provide data to our clients or marketing companies. Some of our services depend on voluntarily provided data. For instance, we believe that one of the most attractive offerings of our Revenue Solutions segment is the provision of data-analytics to our clients. However, the ability to provide such services is at least in part dependent on the ability to collect large volumes of voluntarily provided data. If there is a significant shift in consumer behavior or governmental regulations were to inhibit our ability to collect large amounts of this type of data, our ability to provide meaningful data analytics to our clients would likely be impaired.

***If our facilities are damaged, or if we are unable to access and use our facilities, our business and results of operations will be adversely affected.***

Many of our operations rely on the ability of our employees to work at specially equipped facilities to perform services for our clients. Although we have some excess capacity and redundancy, we do not have sufficient excess capacity or redundancy (in equipment, facilities, or personnel) to maintain our standard service and operational levels for an extended period of time if we are unable to use one of our major facilities. Outsourcing these processes to facilities not owned by us is not a viable option. Should we lose access to a facility for any reason, such as a result of pandemics, terrorist incident or natural disaster, our service levels are likely to decline or be suspended and clients would go without service or secure replacement services from a competitor. As a consequence of such an event, we would suffer a reduction in revenues and harm to (and loss of) client relationships.

***If our new leaders are unsuccessful, or if we continue to lose key management and are unable to attract and retain the talent required for our business, our operating results could suffer.***

Many of the members of our current leadership team have limited tenure in their current roles. If our new leaders fail in their new and additional roles and responsibilities (and more generally if we are unable to attract additional leaders with the necessary skills to manage our business) our business and its operating results may suffer. Further, our prospects depend in large part upon our ability to attract, train, and retain experienced technical, client services, sales, consulting, marketing, and management personnel. While the demand for personnel is also dependent on employment levels, competitive factors, and general economic conditions, our recent business performance may diminish our attractiveness as an employer. The loss or prolonged absence of the services of these individuals could have a material adverse effect on our business, financial position, or operating results*.***

***Interest rate increases could affect our results of operations, cash flows and financial position.***

Interest rate fluctuations in Europe and the United States may affect the amount of interest we earn on cash equivalents. Our Credit Facility bears interest based upon the Secured Overnight Financing Rate. Our results of operations, cash flows, and financial position could be materially or adversely affected by significant changes to interest rates. We also have exposure to interest rate fluctuations in the United States, specifically money market, the value of our pension obligations and overnight time deposit rates, as these affect our earnings on excess cash. Even with the offsetting increase in earnings on excess cash in the event of an interest rate increase, we cannot be assured that future interest rate increases will not have a material adverse impact on our business, financial position, or operating results. Increased interest rates have put upward pressure on pricing and purchasing power.

***Inflation could adversely affect our financial condition and results of operations.***

Inflation could have a negative impact on our financial condition and results of operations. Significant increases in inflation, particularly in wages and, to a lesser extent, goods and services, can affect our business and profitability. Rising labor costs may compress our margins as we face challenges in maintaining profitability. Additionally, as we rely on third-party providers for some of our offerings, we have already experienced margin compression due to higher service charges.

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

The widespread increase in the cost of goods and services due to inflation has negatively impacted, and may continue to affect the discretionary spending of our customers. This, in turn, may adversely impact our results of operations. We cannot predict the extent or duration of these negative effects on our business.

***We are subject to risks associated with operations outside the United States***

Harte Hanks conducts business outside of the United States. During 2025, approximately 9.5% of our revenues were derived from operations outside the United States, primarily in Europe and Asia. We may expand our international operations in the future as part of our growth strategy. Accordingly, our future operating results could be negatively affected by a variety of factors, some of which are beyond our control, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in local, national, and international legal requirements or policies resulting in burdensome government controls, tariffs, restrictions, embargoes, or export license requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• higher rates of inflation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the potential for nationalization of enterprises;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• less favorable labor laws that may increase employment costs and decrease workforce flexibility;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• potentially adverse tax treatment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• less favorable foreign intellectual property laws that would make it more difficult to protect our intellectual property from misappropriation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• more onerous or differing data privacy and security requirements or other marketing regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• longer payment cycles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• social, economic, and political instability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• regional armed conflicts, as well as any additional economic sanctions adopted in response to such actions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the differing costs and difficulties of managing international operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• modifications to international trade policy or the imposition of increased or new tariffs, quotas or trade barriers on key commodities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• geopolitical risk and adverse market conditions caused by changes in national or regional economic or political conditions (which may impact relative interest rates and the availability, cost, and terms of mortgage funds).

In addition, exchange rate fluctuations may have an impact on our future costs or on future cash flows from foreign investments. We have not entered into any foreign currency forward exchange contracts or other derivative instruments to hedge the effects of adverse fluctuations in foreign currency exchange rates. The various risks that are inherent in doing business in the United States are also generally applicable to doing business anywhere else and may be exacerbated by the difficulty of doing business in numerous sovereign jurisdictions due to differences in culture, laws, and regulations.

**<u>Risks Related to Cybersecurity and Technology</u>**

***Privacy, information security and other regulatory requirements may prevent or impair our ability to offer our products and services.***

We are subject to and affected by numerous laws, regulations, and industry standards that regulate direct marketing activities, including those that address privacy, data protection, processing personal information, information security, and marketing communications.

As a result of increasing awareness and interest in privacy rights, data protection, the fair use of personal information, consumer protection, information security, and similar matters, national and local governments and industry organizations regularly consider and adopt new laws, rules, regulations, and guidelines that impact, restrict, and regulate our business products and services. Whether already in place or scheduled to become effective in the future, comprehensive data protection, privacy, and marketing laws apply across the jurisdictions in which we operate as well as in the locations where any such personal information originates, including Europe, the Philippines, and most states throughout the United States. These regulations apply when processing personal data for business and marketing purposes and broadly impact all marketing activities, including legitimate activities associated with profiling consumer behaviors, drawing inferences from personal information, making automated decisions about individuals using personal information, transferring personal information between parties and jurisdictions, communicating with existing and prospective customers, and to other similar activities. Additionally, we are subject to operational obligations when processing and storing personal information, including, but not limited to, adopting and upholding a governance framework to protect this information, registering with relevant regulators, implementing secure infrastructure and data security standards and strategies, data breach detection and response solutions, conducting audits to identify security risks as well as carrying out additional procedures to demonstrate accountability and compliance with national and local privacy and data protection regulations. Other relevant compliance

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

considerations in support of these mandates include establishing solutions in support of broad privacy and data protection rights, including those designed to offer notice to individuals, capture prior consent, grant access to personal information, offer choices regarding the decision to share one's personal information and how such information can be used, as well as related controls to honor choices expressed related to if and how personal information can be processed or licensed for marketing purposes.

We anticipate new regulations will continue to be proposed and adopted in the future in the jurisdictions in which we operate and/or generate revenue. We also expect any new regulations will reflect the growing trends common to current privacy, data protection and marketing laws requiring companies to bear the burden of proving compliance efforts through demonstrable records, and may subject companies to significant fines and penalties should they violate any substantive or technical requirement. We may implement additional safeguards, controls and measures in response to these changes and trends; and may be required to change or limit our service offerings.

Our business may also be affected by the impact of rules and regulations on our clients' business and marketing activities. In addition, as we acquire new capabilities and deploy new technologies to execute our strategy, we may be exposed to additional regulations. Current and future restrictions and regulations could increase compliance costs, and restrict or prevent the collection, management, aggregation, transfer, use or dissemination of personal information or change the requirements so as to require other changes to our business or our clients' businesses, practices and tolerance for risk. Additional restrictions and regulations may limit or prohibit current practices regarding marketing communications and information quality solutions. For example, multiple states have implemented opt out legislation for telephone marketing, requiring the creation of statewide do-not call registries. Such legislation could impact our business and the businesses of our clients and of their customers. In addition, continued public interest in privacy rights, data protection and access, and information security may result in the adoption of additional industry guidelines that could impact our direct marketing activities and business practices.

We cannot predict the scope of any new laws, rules, regulations, or industry guidelines or how courts or agencies may interpret existing rules, regulations or guidelines. Additionally, enforcement priorities by governmental authorities will change over time, which may impact our business. Understanding the laws, rules, regulations, and guidelines applicable to specific client multichannel engagements and across many jurisdictions poses a significant challenge, as such laws, rules, regulations, and guidelines are often inconsistent or conflicting, and are sometimes at odds with client objectives. Our failure to properly comply with these regulatory requirements and client needs may materially and adversely affect our business. General compliance with privacy, data protection, and information security obligations is costly and time-consuming, and we may encounter difficulties, delays, or significant expenses in connection with our compliance, or because of our clients' need to comply. We may be exposed to significant penalties, liabilities, reputational harm, and loss of business in the event that we fail to comply. We could suffer a material adverse impact on our business due to the enactment or enforcement of legislation or industry regulations affecting us and/or our clients, the issuance of judicial or governmental interpretations, changed enforcement priorities of governmental agencies, or a change in behavior arising from public concern over privacy, data protection, and information security issues.

***Uncertainty around, and disruption from, new and emerging technologies, including the adoption and utilization of AI, may result in risks and challenges that could impact our business.***

We utilize new and emerging technologies, including AI, in our solutions and services. As with many innovations, AI presents risks and challenges that could significantly disrupt our business model. If we do not execute on AI effectively, this could result in loss of revenue and reduced margins.

Our success depends, in part, on our ability to continue to acquire, develop, and implement solutions that meet the evolving needs of our clients. The rapid evolution of AI will require us to expend resources to develop, test, and implement solutions that utilize AI effectively, which may lead us to incur significant expense to maintain a competitive advantage within the industry. We will also be required to attract, motivate, and retain top professionals with the skills necessary to execute our strategy relating to AI, machine learning and other emerging technologies. If we do not employ new technologies, including AI, as quickly or efficiently as our competitors, or if our competitors develop more cost-effective or client-preferred technologies, it could have a material adverse effect on our ability to win and retain business from clients, which would adversely affect our business.

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

The regulatory landscape surrounding AI and generative AI technologies is also evolving, and the ways in which these technologies will be regulated by governmental authorities, self-regulatory institutions, or other regulatory authorities remain uncertain. Such regulations may result in significant operational costs or constrain our ability to develop, deploy, or maintain these technologies.

***Significant system disruptions, loss of data center capacity or interruption of telecommunication links could adversely affect our business and results of operations.***

Our business is heavily dependent on data centers and telecommunications infrastructures, which are essential to both our call center services and our database services (which require that we efficiently and effectively create, access, manipulate and maintain large and complex databases). In addition to the third-party data centers we use, we also operate several of our own operations centers to support both our own and our clients' needs. Our ability to protect our operations against damage or interruption from fire, flood, tornadoes, power loss, telecommunications or equipment failure, or other disasters and events beyond our control is critical to our continued success. Likewise, as we increase our use of third-party data centers, it is critical that these vendors adequately protect their data centers from the same risks we do. Our services are dependent on regional and international networking and telecommunication providers. We believe we have taken reasonable precautions to protect our data centers and telecommunication infrastructure from events that could interrupt our operations. Any damage to the data centers we use or any failure of our telecommunications links could materially adversely affect our ability to continue to provide services to our clients, which could result in loss of revenues, profitability and client confidence, and may adversely impact our ability to attract new clients and force us to expend significant company resources to repair the damage.

***We have experienced cybersecurity incidents in the past, and if we do not prevent security breaches and other interruptions to our infrastructure, we may be exposed to lawsuits, lose customers, suffer harm to our reputation, and incur additional costs.***

The services we offer involve the transmission of large amounts of sensitive and proprietary information over public communications networks, as well as the processing and storage of confidential customer information. Unauthorized access, remnant data exposure, computer viruses, denial of service attacks, accidents, employee error or malfeasance, "social engineering" and "phishing" attacks, intentional misconduct by computer "hackers" and other disruptions can occur, and infrastructure gaps, hardware and software vulnerabilities, inadequate or missing security controls, and exposed or unprotected customer data can exist that (i) interfere with the delivery of services to our customers, (ii) impede our customers' ability to do business, or (iii) compromise the security of our or our customers' systems and data, which exposes confidential information to unauthorized third parties. We are a target of cybersecurity incidents of varying degrees on a regular basis. Over time, the techniques used to conduct these cyber-attacks, as well as the sources and targets of these attacks, have become increasingly sophisticated and, in some cases, have been but, are often not recognized until such attacks are launched or have been in place for some time. In addition, there has been an increase in cyber-attacks conducted or sponsored by capable and well-funded "nation state" operators. The Company expects that the sophistication and techniques of cyber-threats will continue to evolve with the rapid development and increased adoption of AI and machine-learning technologies.

***Our reputation and business results may be adversely impacted if we, or subcontractors upon whom we rely, do not effectively protect sensitive personal information of our clients and our clients' customers.***

Current privacy and data security laws and industry standards impact the manner in which we capture, handle, analyze, and disseminate customer and prospect data as part of our client engagements. In many instances, our client contracts also mandate privacy and security practices. If we fail to effectively protect and control information, especially sensitive personal information (such as health information, social security numbers, or credit card numbers) of our clients and their customers or prospects in accordance with these requirements, we may incur significant expense, suffer reputational harm, loss of business, and, in certain cases, be subjected to regulatory or governmental sanctions or litigation. These risks may be increased due to our reliance on subcontractors and other third parties in providing a portion of our overall services in certain engagements. We cannot guarantee that these third parties will effectively protect and handle sensitive personal information or other confidential information, or that we will have adequate recourse against these third parties in the event such third parties fail to adequately protect and handle such sensitive or confidential information.

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

***We could fail to adequately protect our intellectual property rights and may face claims for intellectual property infringement.***

Our ability to compete effectively depends in part on the protection of our technology, products, services, and brands through intellectual property right protections, including copyrights, database rights, trade secrets, trademarks, as well as through domain name registrations, and enforcement procedures. The extent to which such rights can be protected and enforced varies by jurisdiction, and capabilities we procure through acquisitions may have less protection than would be desirable for the use or scale we intend or need. Litigation involving patents and other intellectual property rights has become far more common and expensive in recent years, and we face the risk of additional litigation relating to our use or future use of intellectual property rights of third parties.

Despite our efforts to protect our intellectual property, unauthorized parties may attempt to copy or otherwise obtain and use our proprietary information and technology. Monitoring unauthorized use of our intellectual property is difficult, and unauthorized use of our intellectual property may occur. We cannot be certain that trademark registrations will be issued, nor can we be certain that any issued trademark registrations will give us adequate protection from competing products. For example, others may develop competing technologies or databases on their own. Moreover, there is no assurance that our confidentiality agreements with our employees or third parties will be sufficient to protect our intellectual property and proprietary information.

Third-party infringement claims and any related litigation against us could subject us to liability for damages, significantly increase our costs, restrict us from using and providing our technologies, products or services or operating our business generally, or require changes to be made to our technologies, products, and services. We may also be subject to such infringement claims against us by third parties and may incur substantial costs and devote significant management resources in responding to such claims. We have been, and continue to be, obligated under some agreements to indemnify our clients as a result of claims that we infringe on the proprietary rights of third parties. These costs and distractions could cause our business to suffer. In addition, if any party asserts an infringement claim, we may need to obtain licenses to disputed intellectual property. We cannot provide assurance, however, that we will be able to obtain these licenses on commercially reasonable terms or that we will be able to obtain any licenses at all. The failure to obtain necessary licenses or other rights may have an adverse effect on our ability to provide our products and services.

***Breaches of security, or the perception that e-commerce is not secure, could severely harm our business and reputation.***

Business-to-business and business-to-consumer electronic commerce requires the secure transmission of confidential information over public networks. Some of our products and services are accessed through, or are otherwise dependent on the internet. Security breaches in connection with the delivery of our products and services, or well-publicized security breaches that may affect us or our industry (such as database intrusion) could be severely detrimental to our business, operating results, and financial condition. We cannot be certain that advances in criminal capabilities, cryptography, or other fields will not compromise or breach the technology protecting the information systems that deliver our products, services, and proprietary database information.

***Data suppliers could withdraw data that we rely on for our products and services.***

We purchase or license much of the data we use for ourselves and for our clients. Our ability to provide our customers with data is somewhat dependent on the ability to obtain this data. There could be a material adverse impact on our business if owners of the data we use were to curtail access to the data or materially restrict the authorized use of their data. Data providers could withdraw their data for a number of reasons, including but not limited to, if there is a competitive reason to do so, if there is pressure from the consumer community, or if additional regulations are adopted restricting the use of the data. We also rely upon data from other external sources to maintain our proprietary and non-proprietary databases, including data received from customers and various government and public records. If a substantial number of data providers or other key data sources were to withdraw or restrict their data, if we were to lose access to data due to government regulation or if the collection of data becomes uneconomical, our ability to provide products and services to our clients could be materially and adversely affected, which could result in decreased revenues, net income and earnings per share.

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

**<u>Risks Related to our Capital Structure and Common Stock</u>**

***The covenants in the Credit Facility limit the Company***'***s operating and financial flexibility.*** 

The Credit Facility and the terms under which we borrow money under any future credit facilities or other agreements could have significant consequences for our business. The Credit Facility includes covenants currently restricting or potentially restricting the Company's and its subsidiaries' ability to create, incur, assume or become liable for indebtedness; make certain investments; pay dividends or repurchase the Company's stock; create, incur or assume liens, consummate mergers or acquisitions, liquidate, dissolve, suspend or cease operations, or modify accounting or tax reporting methods (other than as required by the generally accepted accounting principles in the United States of America).

Covenant and ratio requirements may limit the manner in which we can conduct our business, and we may be unable to engage in favorable business activities or finance future operations and capital needs. Specifically, the amount and terms of the Company's indebtedness could:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• limit our flexibility in planning for, or reacting to, changes in our business and the industries in which we operate, including limiting our ability to invest in our strategic initiatives, and consequently, place us at a competitive disadvantage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reduce the availability of our cash flows that would otherwise be available to fund working capital, capital expenditures, acquisitions, and other general corporate purposes; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• result in higher interest expense in the event of increases in interest rates, as discussed below under the Risk Factor "Interest rate increases could affect our results of operations, cash flows, and financial position."

In addition, a failure to comply with these restrictions or to maintain the financial measures and ratios contained in the Credit Facility or future debt instruments could lead to an event of default that could result in an acceleration of debt repayment obligations, and refinancing existing letters of credit.

***Risks related to our pension benefit plans may adversely impact our results of operations and cash flows.***

Pension benefits represent significant financial obligations. As of December 31, 2025, we had approximately $23.0 million of unfunded pension liabilities. Because of the uncertainties involved in estimating the timing and amount of future payments and asset returns, significant estimates are required to calculate pension expense and liabilities related to our plans. We utilize the services of independent actuaries, whose models are used to facilitate these calculations. Several key assumptions are used in the actuarial models to calculate pension expense and liability amounts recorded in the consolidated financial statements. In particular, significant changes in actual investment returns on pension assets, discount rates, or legislative or regulatory changes could impact future results of operations and required pension contributions. Differences between actual pension expenses and liability amounts from these estimated expense and liabilities may adversely impact our results of operations and cash flows.

***Our operations are located on leasehold property, and our inability to renew our leases on commercially acceptable terms or at all may adversely affect our results of operations.***

Our sites operate on leasehold property. Our leases are subject to renewal and we may be unable to renew such leases on commercially acceptable terms or at all. Our inability to renew our leases, or a renewal of our leases with a rental rate higher than the prevailing rate under the applicable lease prior to expiration, may cause an increase in operating costs, or may cause additional costs due to relocation.

***We are a "smaller reporting company," and the reduced disclosure requirements applicable to smaller reporting companies may make our common stock less attractive to investors.***

We are a "smaller reporting company" as defined in the Exchange Act. We may continue to be a smaller reporting company if either (i) the market value of our stock held by non-affiliates is less than $250.0 million or (ii) our annual revenue is less than $100.0 million during the most recently completed fiscal year and the market value of our stock held by non-affiliates is less than $700.0 million. We have elected to take advantage of certain of the scaled disclosures available to smaller reporting companies and may continue to rely on such exemptions. Specifically, as a smaller reporting company we may choose to present only the two most recent fiscal years of audited financial statements in our Annual Reports on Form 10-K.

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

***Fluctuations in our revenue and operating results and other factors may impact the volatility of our stock price.***

The price at which our common stock has traded in recent years has fluctuated greatly and has declined significantly. Our common stock price may continue to be volatile due to several factors including the following (some of which are beyond our control):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• variations in our operating results from period to period and variations between our actual operating results and the expectations of securities analysts, investors, and the financial community;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the development and sustainability of an active trading market for our common stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• unanticipated developments with client engagements or client demand, such as variations in the size, budget, or progress of engagements, variability in the market demand for our services, client consolidations, and the unanticipated termination of several major client engagements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• announcements of developments affecting our businesses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• competition and the operating results of our competitors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the overall strength of the economies of the markets we serve and general market volatility; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• other factors discussed elsewhere in this Item 1A, "Risk Factors."

Because of these and other factors, investors in our common stock may not be able to resell their shares at or above their original purchase price.

***Our certificate of incorporation and bylaws contain anti-takeover protections that may discourage or prevent strategic transactions, including a takeover of our company, even if such a transaction would be beneficial to our stockholders.***

Provisions contained in our certificate of incorporation and bylaws, in conjunction with the provisions of the Delaware General Corporation Law, could delay or prevent a third party from entering a strategic transaction with us, even if such a transaction would benefit our stockholders. For example, our certificate of incorporation and bylaws do not allow written consents by stockholders and have strict advance notice and disclosure requirements for nominees and stockholder proposals.

**ITEM 1B.&nbsp;&nbsp;&nbsp;&nbsp;UNRESOLVED STAFF COMMENTS**

None.

**ITEM 1C.&nbsp;&nbsp;&nbsp;&nbsp;CYBERSECURITY**

We rely on our technology infrastructure and information systems to interact with our clients, our employees, to sell our services, to utilize our data, to support and grow our client base, and to bill, collect, and make payments. Our technology infrastructure and information systems also support and form the foundation for our accounting and finance systems and form an integral part of our disclosure and accounting control environment. Our internally developed system and processes, as well as those systems and processes provided by third-party vendors that we contract with, may be susceptible to damage or interruption from cybersecurity threats, which include any unauthorized access to our information systems, and which may result in adverse effects on the confidentiality, integrity, or availability of such systems or the related information. Potential cybersecurity threats include terrorist or hacker attacks, the introduction of malicious computer viruses, ransomware, falsification of banking and other information, insider risk, or other security breaches. Such attacks have become more and more sophisticated over time, especially as threat actors have become increasingly well-funded by, or themselves include governmental actors or other actors with significant means. We expect that the sophistication of cyber-threats will continue to evolve as threat actors increasingly use AI and automation to conduct cyberattacks at scale.

We have implemented robust processes to assess, identify, and manage cybersecurity risks, including potentially material risks, related to our internal information systems and our products. Our Board of Directors, our internal Risk Steering Committee, in conjunction with our Chief Security Officer ("CSO"), have direct oversight of our management of cybersecurity risks.

Our CSO and the Risk Steering Committee ("RSC") oversee our enterprise risk management process. Under the direction and supervision of our CSO, we conduct an annual comprehensive enterprise risk assessment, which includes details of our management of enterprise-wide risk topics, such as those related to cybersecurity risks. The Board of Directors receives the full results of the annual enterprise risk assessment, including an evaluation of cybersecurity risks presented, a detailed description of the actions we have taken to mitigate these risks, and an analysis of cybersecurity threats and incidents

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

across the industry. The CSO and RSC review the results of the enterprise risk assessment in detail with management on a regular basis and reports its findings, as needed, to the Board of Directors.

Our CSO, reporting to our President, and in conjunction with our IT Department, has principal responsibility for assessing and managing cybersecurity risks and threats, implementing the systems necessary to address such risks and threats and preparing updates for the Board of Directors. Our CSO has 3 decades of information technology and cybersecurity experience with the last 8 years leading the cybersecurity activities at Harte Hanks, as well as participating in numerous cyber readiness exercises with U.S. Government agencies, and has specialized training in cybersecurity risk management, cloud security and holds a CISSP certification offered by ISC2 and CRISC certification from ISACA. Our CSO is also responsible for the operation of our cybersecurity program, and management of our cybersecurity incident response team.

As mentioned above, in response to the increasing threats presented by cyber incidents, in 2020 we established the RSC, which meets regularly. This committee is comprised of our Chief Security Officer, our President, our Head of Human Resources, each Director of Operations of each of our business units, and our Chief Financial Officer, as well as other key leaders. The RSC (in conjunction with the CSO), oversees activities related to monitoring, prevention, detection, mitigation and remediation of cybersecurity risks. The RSC, along with our CSO, develops and implements cybersecurity risk mitigation strategies and activities throughout the year, including the management of comprehensive incident response plans, oversees the cybersecurity risks posed by third-party vendors, and receives regular updates on cybersecurity-related matters.

We have adopted the National Institute of Standards and Technology ("NIST") Cybersecurity and AI Risk Management Frameworks to continually evaluate and enhance our cybersecurity procedures. Activities include mandatory yearly online training for all employees, technical security controls, enhanced data protection, the maintenance of backup and protective systems, policy review and implementation, the evaluation and retention of cybersecurity insurance, periodic assessments of third-party service providers to assess cyber preparedness of key vendors, and running simulated cybersecurity drills, including vulnerability scanning, penetration testing and disaster recovery exercises, throughout the organization. These cybersecurity drills are performed both in-house and by third-party service providers. We use automated tools that monitor, detect, and prevent cybersecurity risks and have a security operations center that operates 24 hours a day to alert us to any potential cybersecurity threats and have enabled automated threat response as a countermeasure to increasingly short windows between new vulnerabilities and attack. As noted above, our RSC also has effected comprehensive incident response plans that outline the appropriate communication flow and response for certain categories of potential cybersecurity incidents. The RSC escalates events, including the President and Board of Directors, as relevant, according to pre-defined criteria.

**ITEM 2.&nbsp;&nbsp;&nbsp;&nbsp;PROPERTIES**

Our headquarters is located in Chelmsford, MA. We lease office and fulfillment facilities around the world, primarily in the United States, Europe and Asia.

As of December 31, 2025, we operated the following types of facilities in the following locations:

---

| | | |
|:---|:---|:---|
| **<u>Domestic Offices</u>** | **<u>International Offices</u>** | **<u>Operational Warehouses</u>** |
| Chelmsford, Massachusetts | Hasselt, Belgium | East Bridgewater, Massachusetts |
| Greenville, South Carolina | Iasi, Romania | Hasselt, Belgium |
| Plano, Texas | Manila, Philippines | Kansas City, Kansas |
| St. Petersburg, Florida | Uxbridge, United Kingdom | |
| | Valencia, Spain | |

---

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

As of December 31, 2025, our operational facilities were for the following use and square footage by segment:

---

| | | | |
|:---|:---|:---|:---|
| Description of Use | United States | International | Total |
| Office space | 28850 | 38963 | 67813 |
| Fulfillment facilities | 623948 | 4402 | 628350 |
| Total | 652798 | 43365 | 696163 |

---

---

| | |
|:---|:---|
| Segment | Leased Sq Ft |
| Customer Care | 49615 |
| Fulfillment & Logistics | 628350 |
| Revenue Solutions | 11947 |
|  | 689912 |
| Corporate office | 6251 |
| Total | 696163 |

---

We believe our facilities to be suitable and adequate for our business and operations as currently administered.

**ITEM 3.&nbsp;&nbsp;&nbsp;&nbsp;LEGAL PROCEEDINGS**

In the ordinary course of its business, the Company is involved in various legal proceedings involving a variety of matters. The Company does not believe there are any pending legal proceedings that will have a material impact on the Company's financial position or results of operations.

**ITEM 4.&nbsp;&nbsp;&nbsp;&nbsp;MINE SAFETY DISCLOSURES**

Not applicable.

**PART II**

**ITEM 5.&nbsp;&nbsp;&nbsp;&nbsp;MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES**

**Market**

Our common stock is listed for trading on the NASDAQ under the symbol "HHS". As of January 31, 2026, there were approximately 593 common stockholders of record.

**Dividend Policy**

The Company currently does not pay any dividends and any future dividend payment is at the discretion of the Board of Directors.

**Issuer Purchases of Equity Securities**

The following table contains information about our purchases of equity securities during the fourth quarter of 2025:

---

| | | | |
|:---|:---|:---|:---|
| **Period** | **Total number of shares purchased** | **Average price paid per share** | **Maximum dollar amount that may yet be purchased under the program**<sup>(1)</sup> **(in thousands)** |
| October 1 - 31, 2025 |  | $– — | $4131 |
| November 1 - 30, 2025 |  | $– — | $4131 |
| December 1 - 31, 2025 |  | $– — | $4131 |
| Total |  | $– — |  |

---

<sup>(1)</sup> On May 2, 2023, the Board of Directors of the Company approved a share repurchase program to maximize shareholder value with authorization to repurchase $6.5 million of the Company's Common Stock. No repurchases

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

were made during the quarter ended December 31, 2025. After giving effect to the repurchases made under the plan through December 31, 2025, the Company has remaining authority of $4.1 million to repurchase shares under the program, which has no expiration date.

**ITEM 6.&nbsp;&nbsp;&nbsp;&nbsp;RESERVED**

Not applicable.

**ITEM 7.&nbsp;&nbsp;&nbsp;&nbsp;MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

**Cautionary Note About Forward-Looking Statements**

This report, including this Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A"), contains "forward-looking statements" within the meaning of the federal securities laws. All such statements are qualified by the cautionary note included under "Forward-Looking Statements" above, which is provided pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Actual results may vary materially from what is expressed in or indicated by the forward-looking statements, for the reasons described in this MD&A, in the Risk Factors in Item 1A above or elsewhere in this Annual Report on Form 10-K.

**<u>Overview</u>**

The following MD&A section is intended to help the reader understand the results of operations and the financial condition of Harte Hanks. This section is provided as a supplement to, and should be read in conjunction with, our Consolidated Financial Statements and the accompanying notes included herein.

Harte Hanks, Inc. is a leading global customer experience company operating in three business segments: Revenue Solutions formerly referred to as Marking Services, Customer Care, and Fulfillment & Logistics Services. Our mission is to partner with clients to provide them with robust customer-experience, or CX strategy, data-driven analytics, and actionable insights combined with seamless program execution to better understand, attract, and engage their customers. Our services include strategic planning, data strategy, performance analytics, creative development, and execution; technology enablement; marketing automation; B2B and B2C e-commerce; cross-channel customer care; and product, print, and mail fulfillment.

We are affected by the general, national, and international economic and business conditions in the markets where we and our customers operate. Marketing budgets are largely discretionary in nature and, as a consequence, are easier for our clients to reduce in the short-term than other expenses. Our revenues are also affected by the economic fundamentals of each industry that we serve, the expansion of alternative channels, various market factors, including the demand for services by our clients, the financial condition of and budgets available to our clients, and regulatory factors, among other factors. Due to the recent increases in inflation and interest rates throughout the globe, as well as the ongoing armed conflicts in multiple regions, there is continued uncertainty and volatility in the global economy. We remain committed to executing our multichannel strategy while also continuing to adjust our cost structure to appropriately reflect our operations and outlook.

Management is closely monitoring inflation and wage pressure in the market, and the potential impact on our business. While inflation has not had a material impact on our business, it is possible a material increase in inflation could have an impact on our clients, and in turn, on our business.

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

**<u>Results of Operations</u>**

Operating results from operations were as follows:

---

| | | | |
|:---|:---|:---|:---|
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Year Ended December 31,** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Year Ended December 31,** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Year Ended December 31,** |
| *In thousands, except per share amounts* | **2025** | **% Change** | **2024** |
| Operating revenue | $159570 | -13.9% | $185242 |
| Operating expenses | 159184 | -13.1% | 183149 |
| Operating income | $386 | -81.6% | $2093 |
| Operating margin | 0.2% | -78.6% | 1.1% |
| Other expenses, net | 1394 | -96.5% | 40027 |
| Income tax benefit | (197) | -97.4% | (7637) |
| Net loss | $(811) | -97.3% | $(30297) |
| Diluted EPS from operations | $(0.11) | -97.4% | $(4.15) |

---

Year Ended December 31, 2025 vs. Year Ended December 31, 2024

***<u>Consolidated Results</u>***

*Revenues*

Revenues of $159.6 million for the year ended December 31, 2025 decreased $25.6 million, or 13.9%, when compared to $185.2 million for the year ended December 31, 2024. Revenue in the Revenue Solutions segment declined $15.2 million, or 30.2%, to $35.1 million; our Fulfillment & Logistics Services declined $7.6 million, or 9.3%, to $74.4 million; revenue in our Customer Care segment declined $2.9 million, or 5.4%, to $50.1 million. Please see segment results below for additional information on the changes in revenue year over year.

*Operating Expenses*

Operating expenses of $159.2 million for the year ended December 31, 2025 decreased $24.0 million, or 13.1%, when compared to $183.1 million for the year ended December 31, 2024.

Labor costs decreased by $12.9 million, or 13.8%, when compared to the year ended December 31, 2024, primarily due to the reduction in salary and wages as operations were optimized to account for lower revenue. Termination of senior management staff also resulted in lower stock based compensation.

Production and Distribution expenses decreased $6.7 million, or 11.9%, when compared to the year ended December 31, 2024, primarily driven by lower transportation costs in proportion with our lower revenues in our logistics business.

Advertising, Selling, and General and Administrative expenses decreased $0.6 million or 2.5%, when compared to the year ended December 31, 2024 primarily due to the lower sales expenses from lower revenue as well as lower professional expenses, which was partially offset by increased technology expenses.

Restructuring expenses decreased $0.6 million to $1.8 million for the year ended December 31, 2025. The restructuring expenses included $0.2 million of consulting expenses, $1.3 million of severance charges, and $0.3 million of facility related and other expenses.

2024 operating expenses also included impairment charges of $1.6 million and $1.5 million for goodwill and intangible assets. There were no impairment charges incurred for goodwill and intangible assets in 2025.

Depreciation expense increased $0.1 million, or 2.0%, when compared to the year ended December 31, 2024.

The largest components of our operating expenses are labor, transportation expenses and outsourced costs. Each of these costs is, at least in part, variable and tends to fluctuate in line with revenues and the demand for our services. Transportation rates have decreased over the last year due to changes in demand and supply within the transportation industry. Future changes in transportation expenses will continue to impact our total production costs and total operating

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

expenses and in turn our margins. Postage costs of mailings are borne by our clients and are not directly reflected in our revenues or expenses.

*Other Expenses, net*

The total other expenses, net were $1.4 million for the year ended December 31, 2025, when compared to other expense, net of $40.0 million for the year ended December 31, 2024. This $38.6 million decrease in other expenses was mainly due to $37.5 million of pension termination charges booked in the year ended December 31, 2024.

*Income Tax Benefit*

Our 2025 income tax benefit was $0.2 million for the year ended December 31, 2025, when compared to tax benefit of $7.6 million for the year ended December 31, 2024. The decrease in tax benefit of $7.4 million was primarily related to the one time pension termination charge booked in the year ended December 31, 2024.

***<u>Segment Results</u>***

The following is a discussion and analysis of the results of our reporting segments for the years ended December 31, 2025 and 2024. There are three principal financial measures reported to our President (the chief operating decision maker) for use in assessing segment performance and allocating resources. Those measures are revenues, operating income and operating income plus depreciation and amortization ("EBITDA"). EBITDA is considered a non-GAAP financial measure. A reconciliation of EBITDA to operating income is included below.

**Revenue Solutions:**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| **In thousands** | **2025** | **2025** | **% Change** | **2024** | **2024** |
| Operating revenues | $| 35128 | -30.2% | $| 50332 |
| EBITDA | 5584 | 5584 | 7.8% | 5182 | 5182 |
| Depreciation and amortization expense | 797 | 797 | -45.4% | 1459 | 1459 |
| Operating income | 4787 | 4787 | 28.6% | 3723 | 3723 |
| Operating income % of revenue | 13.6% | 13.6% | 84.2% | 7.4% | 7.4% |

---

Revenue Solutions segment revenue declined $15.2 million, or 30.2%, due to customer turnover and additional client spending reductions. This segment is our most economically sensitive segment with regard to changes in our clients' marketing strategies. Operating income for the year ended December 31, 2025 increased $1.1 million improving operating income by 28.6% mainly due to the 2024 impairment of goodwill and intangible assets.

**Customer Care:**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| **In thousands** | **2025** | **2025** | **% Change** | **2024** |
| Operating revenues | $| 50067 | -5.4% | $52918 |
| EBITDA | 6245 | 6245 | -38.3% | 10128 |
| Depreciation and amortization expense | 266 | 266 | 28.5% | 207 |
| Operating income | 5979 | 5979 | -39.7% | 9921 |
| Operating income % of revenue | 11.9% | 11.9% | -36.3% | 18.7% |

---

Customer Care segment revenue declined $2.9 million, or 5.4% when compared to the prior year, which was impacted by fluctuations based on the geographic regions customers select for staff support. Existing customers who shift current programs to our lower cost off-shore markets can reduce revenues as the per agent cost is lower. We are leveraging our Amazon Connect cloud-based platform to test and pilot new AI tools, and are exploring how we can augment growth by providing more technical support as clients migrate to more capable contact center platforms. Operating income for the year ended December 31, 2025 decreased by $3.9 million to $6.0 million, or 39.7%, primarily due to higher technology costs, tighter margins in a competitive marketplace and reduced revenue.

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

**Fulfillment & Logistics:**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| **In thousands** | **2025** | **2025** | **% Change** | **2024** | **2024** |
| Operating revenues | $| 74375 | -9.3% | $| 81992 |
| EBITDA | 6551 | 6551 | 13.7% | 5761 | 5761 |
| Depreciation and amortization expense | 2214 | 2214 | 76.3% | 1256 | 1256 |
| Operating income | 4337 | 4337 | -3.7% | 4505 | 4505 |
| Operating income % of revenue | 5.8% | 5.8% | 6.1% | 5.5% | 5.5% |

---

Fulfillment & Logistics segment revenue declined $7.6 million, or 9.3%, primarily due to lost customers and the lower revenue from existing customers not being offset by growth in new programs and customers. For the year ended December 31, 2025, operating income was $4.3 million, a decrease of $0.2 million or 3.7%. The decrease in operating income was primarily the result of lower revenue. Operating income as a percent of revenue improved with the continued focus on operational optimization.

**<u>Liquidity and Capital Resources</u>**

*Sources and Uses of Cash*

Our cash and cash equivalent balances were $5.6 million and $9.9 million as of December 31, 2025, and 2024, respectively. As of December 31, 2025 and 2024, we had the ability to borrow approximately $24.3 million and $24.0 million under our Credit Facility, respectively.

Our principal sources of liquidity are cash on hand, cash provided by operating activities, and borrowings available under our Credit Facility. Our cash is primarily used for general corporate purposes, working capital requirements, and capital expenditure. At this time, we believe that we will be able to continue to meet our liquidity requirements and fund our fixed obligations such as finance and operating leases and unfunded pension plan benefit payments and other needs for our operations in the short term and beyond. Although the Company believes that it will be able to meet its cash needs for the short and medium term, if unforeseen circumstances arise, the company may need to seek alternative sources of liquidity.

*Operating Activities*

Net cash used in operating activities was $1.7 million for the year ended December 31, 2025, when compared to cash used in operating activities of $3.0 million for the year ended December 31, 2024. The $1.3 million year-over-year decrease in cash used in operating activities was primarily due to changes in assets and liabilities.

*Investing Activities*

Net cash used in investing activities was $2.8 million for the year ended December 31, 2025, compared to cash used in investing activities of $3.7 million for the year ended December 31, 2024. The $0.9 million decrease was mainly driven by $0.9 million lower property, plant and equipment purchase in the year ended December 31, 2025, as compared to the year ended December 31, 2024.

*Financing Activities*

Net cash provided by financing activities was $0.5 million for the year ended December 31, 2025, compared to $0.4 million net cash used in financing activities for the year ended December 31, 2024. The $0.9 million increase in cash provided by financing activities was primarily related to the $1.1 million of cash we received for the recovery of short-swing profit from one shareholder in the year ended December 31, 2025, which was partially offset by $0.3 million of tax liability associated with this short-swing profit.

*Foreign Holdings of Cash*

Consolidated foreign holdings of cash as of December 31, 2025, and 2024 were $2.2 million and $1.5 million, respectively. The Company will repatriate foreign cash holdings when and if it is financially efficient to do so.

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

*Long Term Debt*

On December 21, 2021, the Company entered into a three-year, $25.0 million asset-based revolving credit facility (the "Credit Facility") with Texas Capital Bank ("TCB"). The Company's obligations under the Credit Facility are guaranteed on a joint and several basis by the Company's material subsidiaries (the "Guarantors"). The Credit Facility is secured by substantially all the assets of the Company and the Guarantors pursuant to a Pledge and Security Agreement, dated as of December 21, 2021, among the Company, TCB and the Guarantors party thereto (the "Security Agreement"). On December 29, 2023, the Company extended the maturity date for the Credit Facility by a period of six months to June 30, 2025. The extension was executed with substantially similar terms and conditions as the original Credit Facility. On June 24, 2025, the Company entered into a second amendment to the Credit Facility (the "Second Amendment") with TCB which extended the maturity date for the Credit Facility by a period of three years to June 30, 2028. The Second Amendment also includes an accordion feature that allows the Company to seek up to a $10.0 million increase in commitments under the credit line, subject to TCB approval.

The Credit Facility provides for loans up to the lesser of (a) $25.0 million or (b) the amount available under a "borrowing base" calculated primarily by reference to the Company's cash and cash equivalents and accounts receivables. The Credit Facility allows the Company to use up to $3.0 million of its borrowing capacity to issue letters of credit.

The loans under the Credit Facility accrue interest at a varying rate equal to the Secured Overnight Financing Rate ("SOFR") plus a margin of 2.25% per annum. The outstanding amounts advanced under the Credit Facility are due and payable in full on June 30, 2028.

The Company may repay and reborrow all or any portion of the loans advanced under the Credit Facility at any time, without premium or penalty. The Credit Facility is subject to mandatory prepayments (i) from the net proceeds of asset dispositions not otherwise permitted under the Credit Facility; (ii) if the unpaid principal balance under the Credit Facility plus the aggregate face amount of all outstanding letters of credit exceeds the borrowing base; (iii) in an amount equal to 50% of the net proceeds of issuances of capital stock (subject to customary exceptions); or (iv) in an amount equal to the net proceeds from any issuance of debt not otherwise permitted under the Credit Facility.

The Credit Facility contains certain covenants restricting the Company's and its subsidiaries' ability to create, incur, assume or become liable for indebtedness; make certain investments; pay dividends or repurchase the Company's stock; create, incur or assume liens, consummate mergers or acquisitions, liquidate, dissolve, suspend or cease operations, or modify accounting or tax reporting methods (other than as required by accounting principles generally accepted in the United States of America ("GAAP")).

As of December 31, 2025 and 2024, we had no borrowings outstanding under the Credit Facility. At each of December 31, 2025 and 2024, we had letters of credit outstanding in the amount of $0.7 million and $1.0 million, respectively. No amounts were drawn against these letters of credit at December 31, 2025 and 2024. These letters of credit exist to support insurance programs relating to workers' compensation, medical insurance, and reducing the cash security deposit on leased property. We had no other off-balance sheet financing activities at December 31, 2025 and 2024. After the letters of credit on December 31, 2025 and 2024, we had the ability to borrow up to $24.3 million and $24.0 million, respectively, under the Credit Facility.

*Dividends*

We did not pay any dividends in either 2025 or 2024. Any future dividend declaration can be made only upon, and subject to, approval of our Board of Directors, and will depend on our results of operations, financial condition, cash requirements, future business prospects, contractual and indenture restrictions and other factors deemed relevant by our Board of Directors.

*Share Repurchase*

On May 2, 2023, the Board of Directors of Harte Hanks approved a share repurchase program to maximize shareholder value with authorization to repurchase $6.5 million of the Company's Common Stock. During 2023, 391,785 shares of common stock were repurchased for a total combined purchase price of $2.4 million. In 2025 and 2024, no shares of common stock were repurchased.

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

*Outlook*

We consider such factors as total cash and cash equivalents and restricted cash, current assets, current liabilities, total debt, revenues, operating income, cash flows from operations, investing activities, and financing activities when assessing our liquidity. Our management of cash is designed to optimize returns on cash balances and to ensure that it is readily available to meet our operating, investing, and financing requirements as they arise. We believe that there are no conditions or events, considered in the aggregate, that raise substantial doubt about our ability to continue as a going concern for the twelve months following the issuance of the Consolidated Financial Statements.

**<u>Critical Accounting Estimates</u>**

Our Consolidated Financial Statements are prepared in accordance with GAAP, which requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, costs and expenses, and related disclosures. On an ongoing basis, we evaluate our estimates and assumptions based on historical experience and on various other assumptions that we believe are reasonable under the circumstances. Our actual results could differ from these estimates under different assumptions or conditions. The areas that we believe involve the most significant management estimates and assumptions are detailed below. On an ongoing basis, management reviews its estimates and assumptions based on currently available information.

Management believes that the following are critical accounting estimates:

**Revenue Recognition**

We recognize revenue upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to be entitled to receive in exchange for those products or services based on the relevant contract.

Revenue recognition requires management to apply judgment in identifying performance obligations and determining the timing and amount of revenue recognized under customer contracts. Certain client programs provide for adjustments to billings based upon whether we achieve certain performance criteria which requires us to estimate variable consideration.

**Income Taxes**

We are subject to income taxes in the United States and numerous other jurisdictions. Significant judgment is required in determining our provision for income taxes and income tax assets and liabilities, including evaluating uncertainties in the application of accounting principles and complex tax laws.

We record a provision for income taxes for the anticipated tax consequences of the reported results of operations using the asset and liability method. Under this method, we recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities, as well as for operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using the tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled. We record a valuation allowance to reduce our deferred tax assets to the net amount that we believe is more likely than not to be realized. A material valuation allowance is recorded for foreign and specific state jurisdictions.

We recognize tax benefits from uncertain tax positions only if we believe that it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. Although we believe that we have adequately reserved for our uncertain tax positions, we can provide no assurance that the final tax outcome of these matters will not be materially different. We adjust these reserves when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made and could have a material impact on our financial condition and operating results. The provision for income taxes includes the effects of any reserves that we believe are appropriate, as well as the related net interest and penalties.

**Goodwill and other Intangibles**

Goodwill is reviewed for impairment at least annually during the fourth quarter, or more frequently if events occur indicating the potential for impairment. During the goodwill impairment review, the Company may assess qualitative

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

factors to determine whether it is more likely than not that the fair value of its reporting unit is less than its carrying amount, including goodwill. The qualitative factors include, but are not limited to, macroeconomic conditions, industry and market considerations, and the overall financial performance of the Company. If, after assessing the totality of these qualitative factors, the Company determines that it is not more likely than not that the fair value of its reporting unit is less than its carrying amount, then no additional assessment is deemed necessary. Otherwise, the Company performs a quantitative goodwill impairment test in which the fair value of the reporting unit is compared to its carrying amount. Fair value is determined through various valuation techniques and assumptions such as cash flow models, discount rates, market multiples and control premiums.. The Company may also elect to bypass the qualitative assessment in a period and elect to proceed to perform the quantitative goodwill impairment test. We booked an impairment charge of $1.6 million for goodwill in the year ended December 31, 2024 , leaving a balance of $0.3 million. There was no goodwill impairment in the year ended December 31, 2025.

Finite-lived intangibles are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require an intangible asset to be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by that intangible asset to its carrying amount. If the carrying amount of the intangible asset is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques, including discounted cash flow models, quoted market values, and third-party independent appraisals, as considered necessary. The factors that drive the estimate of useful life are often uncertain and are reviewed on a periodic basis or when events occur that warrant review. Recoverability is measured by comparing the assets' book value to future net undiscounted cash flows that the assets are expected to generate to determine if a write-down to the recoverable amount is appropriate. If such assets are written down, an impairment will be recognized as the amount by which the book value of the asset group exceeds the recoverable amount. During the year ended December 31, 2024, a significant amount of revenue from its original customers was lost. As a result, we booked an impairment loss of $1.5 million to our intangible assets. The net carrying balance of intangible assets as of December 31, 2025 and December 31, 2024 was $0.4 million and $0.6 million, respectively. There was no impairment of our intangible assets during the year ended December 31, 2025.

**Pension Accounting**

The Company sponsors defined benefit pension plans, the obligations and related expense of which are determined using actuarial valuations. Management engages a third-party actuary to calculate the projected benefit obligation and pension expense based on standard actuarial assumptions, including the discount rate, mortality assumptions, and expected return on plan assets.

**<u>Legal and Other Contingencies</u>**

The Company is subject to various legal proceeding and claims that arise in the ordinary course of business, the outcomes of which are inherently uncertain. The Company records a liability when it is probable that a loss has been incurred and the amount is reasonably estimable, the determination of which requires significant judgment. Resolution of legal matters in a manner inconsistent with management's expectations could have a material impact on the Company's financial condition and operating results.

**<u>Recent Accounting Pronouncements</u>**

In December 2023, the FASB issued ASU 2023-09, *Improvements to Income Tax Disclosures* ("ASU 2023-09"). ASU 2023-09 amends ASC 740, *Income Taxes* to expand income tax disclosures and requires that the Company disclose (i) the income tax rate reconciliation using both percentages and reporting currency amounts; (ii) specific categories within the income tax rate reconciliation; (iii) additional information for reconciling items that meet a quantitative threshold; (iv) the composition of state and local income taxes by jurisdiction; and (v) the amount of income taxes paid disaggregated by jurisdiction. The Company adopted ASU 2023-09 for the year ended December 31, 2025 on a prospective basis. See *Note I. Income Taxes* for additional information.

In November 2024, the FASB issued ASU 2024-03, *Disaggregation of Income Statement Expenses* (Subtopic 220-40). The ASU requires the disaggregated disclosure of specific expense categories, including purchases of inventory, employee compensation, depreciation, and amortization, within relevant income statement captions. This ASU also requires disclosure of the total amount of selling expenses along with the definition of selling expenses. The ASU is effective for annual periods beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15,

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

2027. Adoption of this ASU can either be applied prospectively to consolidated financial statements issued for reporting periods after the effective date of this ASU or retrospectively to any or all prior periods presented in the consolidated financial statements. Early adoption is also permitted. This ASU will likely result in the required additional disclosures being included in our consolidated financial statements, once adopted. We are currently evaluating the provisions of this ASU.

In July 2025, the FASB issued ASU 2025-05, which amends ASC 326-20 to provide a practical expedient (for all entities) relating to the estimation of expected credit losses for current accounts receivable and current contract assets that arise from transactions accounted for under ASC 606. ASU 2025-05 is effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods, with early adoption permitted. The Company is currently evaluating the impact that this ASU will have on our consolidated financial statements.

In September 2025, the FASB issued ASU 2025-06 to target improvements to the Accounting for Internal-Use Software, which simplifies the capitalization guidance by removing all references to software development project stages and clarifies the criteria to begin capitalizing cost. The amendment is effective for annual and interim periods beginning after December 15, 2027, though early adoption is permitted. The Company is currently evaluating the impact of this ASU on its Consolidated Financial Statements.

No other new accounting pronouncements recently adopted or issued had or are expected to have a material impact on the consolidated financial statements.

**ITEM 7A.&nbsp;&nbsp;&nbsp;&nbsp;QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.**

The Company is a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and is not required to provide the information required under this item.

**ITEM 8.&nbsp;&nbsp;&nbsp;&nbsp;FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA**

The Financial Statements required to be presented under Item 8 are presented in the Consolidated Financial Statements and the notes thereto beginning at <u>[page](#if137fda3db834e9f882f2ccac1e87f05_388)</u> <u>[35](#i5f306ec409da4aae92a556d5de29c33f_130)</u> of this Form 10-K (Financial Statements).

**ITEM 9.&nbsp;&nbsp;&nbsp;&nbsp;CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE**

None.

**ITEM 9A.&nbsp;&nbsp;&nbsp;&nbsp;CONTROLS AND PROCEDURES**

***Evaluation of Disclosure Controls and Procedures***

We maintain disclosure controls and procedures as defined in Rule 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the "Exchange Act") that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to management, including our President and Chief Financial Officer ("CFO") as appropriate to allow timely decisions regarding required disclosure.

Our management, including our President and CFO, evaluated the effectiveness of our disclosure controls and procedures pursuant to Rules 13a-15(e) and 15d-15(e) under the Exchange Act as of December 31, 2025. Based upon such evaluation, our President and CFO concluded that the design and operation of these disclosure controls and procedures were effective, at the "reasonable assurance" level, to ensure information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC rules and forms.

***Management's Report on Internal Control Over Financial Reporting***

Management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)). Our internal control over financial reporting is a process designed by, or

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

under the supervision of our President and CFO to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the Company's financial statements for external purposes in accordance with GAAP.

Management evaluated, under the supervision of our President and CFO, the design and effectiveness of the Company's internal control over financial reporting based on the framework in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organization of the Treadway Commission ("COSO"). Based on this assessment, management concluded that internal control over financial reporting was effective.

**Changes in Internal Control over Financial Reporting**

There were no changes in our internal controls over financial reporting during our most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. We have not experienced any material impact to our internal controls over financial reporting even though most of our employees have worked remotely. We are continually monitoring and assessing the impact of this remote working arrangement on our internal controls to minimize the impact on their design and operating effectiveness.

**ITEM 9B.&nbsp;&nbsp;&nbsp;&nbsp;OTHER INFORMATION**

During the three months ended December 31, 2025, no director or officer (as defined in Rule 16a-1(f) of the Exchange Act) of the Company adopted, modified or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement," as each term is defined in Item 408(a) of Regulation S-K.

**ITEM 9C.&nbsp;&nbsp;&nbsp;&nbsp;DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS**

Not applicable

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

**PART III**

**ITEM 10.&nbsp;&nbsp;&nbsp;&nbsp;DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE**

Information required by this item is incorporated herein by reference as a definitive proxy statement to be filed with the SEC within 120 days of the fiscal year ended December 31, 2025.

We have adopted the "Harte Hanks Business Conduct Policy: Insider Trading Restrictions" that governs the purchase, sales, and/or other dispositions of our securities by our directors, officers, and employees designed to promote compliance with insider trading laws, rules, and regulations, and any listing standards applicable to us. A copy of our Insider Trading Policy, as currently in effect is filed as Exhibit 19.1 to this Annual Report on Form 10-K.

**ITEM 11.&nbsp;&nbsp;&nbsp;&nbsp;EXECUTIVE COMPENSATION**

Information required by this item will be included in an amendment hereto or a definitive proxy statement to be filed with the SEC within 120 days of the fiscal year ended December 31, 2025.

**ITEM 12.&nbsp;&nbsp;&nbsp;&nbsp;SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS**

Information required by this item will be included in an amendment hereto or a definitive proxy statement to be filed with the SEC within 120 days of the fiscal year ended December 31, 2025.

**ITEM 13.&nbsp;&nbsp;&nbsp;&nbsp;CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE**

Information required by this item will be included in an amendment hereto or a definitive proxy statement to be filed with the SEC within 120 days of the fiscal year ended December 31, 2025.

**ITEM 14.&nbsp;&nbsp;&nbsp;&nbsp;PRINCIPAL ACCOUNTANT FEES AND SERVICES**

Information required by this item will be included in an amendment hereto or a definitive proxy statement to be filed with the SEC within 120 days of the fiscal year ended December 31, 2025.

**PART IV**

---

| | |
|:---|:---|
| **ITEM 15.** | **EXHIBITS AND FINANCIAL STATEMENT SCHEDULES** |
| **15(a)(1)** | Financial Statements |
|  | The financial statements filed as part of this report and referenced in Item 8 are presented in the Consolidated Financial Statements and the notes thereto beginning at <u>[page](#if137fda3db834e9f882f2ccac1e87f05_388)</u> <u>[35](#i5f306ec409da4aae92a556d5de29c33f_130)</u> of this Form 10-K (Financial Statements). |
| **15(a)(2)** | Financial Statement Schedules |
|  | All schedules for which provision is made in the applicable rules and regulations of the SEC have been omitted as the schedules are not required under the related instructions, are not applicable, or the information required thereby is set forth in the Consolidated Financial Statements or notes thereto. |
| **15(a)(3)** | Exhibits |
|  | The Exhibit Index following the Notes to Consolidated Financial Statements in this Form 10-K lists the exhibits that are filed or furnished, as applicable, as part of this Form 10-K. |

---

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

**INDEX TO EXHIBITS**

We are incorporating certain exhibits listed below by reference to other Harte Hanks filings with the Securities and Exchange Commission, which we have identified in parentheses after each applicable exhibit.

---

| | |
|:---|:---|
| **Exhibit<br>No.** | **Description of Exhibit** |
| <u>[3.1](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex31amendedandres.htm)</u> | <u>[Amended and Restated Certificate of Incorporation as amended through May 5, 1998 (incorporated by reference to Exhibit 3.1 to the Company's](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex31amendedandres.htm)[Annual Report on For](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex31amendedandres.htm)[m 10-K for the year ended December 31, 2023](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex31amendedandres.htm)[, File No. 001-7120)](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex31amendedandres.htm)[.](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex31amendedandres.htm)</u> |
| <u>[3.2](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex32certificateof.htm)</u> | <u>[Certificate of Amendment of Incorporation dated](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex32certificateof.htm)[as of](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex32certificateof.htm)[January 31, 2018 (incorporated by reference to Exhibit 3.2 to the Company's](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex32certificateof.htm)[Annual Report on](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex32certificateof.htm)[Form 10-K](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex32certificateof.htm)[for the year ended Decemb](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex32certificateof.htm)[er 31, 2023, File](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex32certificateof.htm)[No. 001-7120](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex32certificateof.htm)[)](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex32certificateof.htm)[.](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex32certificateof.htm)</u> |
| <u>[3.](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex34fifthamendeda.htm)[3](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex34fifthamendeda.htm)</u> | <u>[Fifth Amended and Restated Bylaws (incorporated by reference to Exhibit 3.4 to the Company's](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex34fifthamendeda.htm)[Annual](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex34fifthamendeda.htm)[Report on](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex34fifthamendeda.htm)[Form 10-K](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex34fifthamendeda.htm)[for the year ended December 31, 2023, File](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex34fifthamendeda.htm)[No. 001-7120](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex34fifthamendeda.htm)[).](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex34fifthamendeda.htm)</u> |
| <u>[10.01](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex1001loanagreeme.htm)</u> | <u>[Loan Agreement, dated](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex1001loanagreeme.htm)[as of](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex1001loanagreeme.htm)[December 21, 2021, among Harte Hanks, Inc. the subsidiary guarantors party thereto and Texas Capital Bank](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex1001loanagreeme.htm)[(incorporated by reference to Exhibit 10.01 to the Company's](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex1001loanagreeme.htm)[Annual Report on](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex1001loanagreeme.htm)[Form 10-K](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex1001loanagreeme.htm)</u> <u>[for the year ended December 31, 2023, File No. 001-7120).](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex34fifthamendeda.htm)</u> |
| <u>[10.02](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex102securityagre.htm)</u> | <u>[Security Agreement, dated](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex102securityagre.htm)[as of](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex102securityagre.htm)[December 21, 2021, between Harte Hanks, Inc. and Texas Capital Bank](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex102securityagre.htm)[(incorporated by reference to Exhibit 10.02 to the Company's](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex102securityagre.htm)[Annual Report on](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex102securityagre.htm)[Form 10-K,](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex102securityagre.htm)[for the year ended December 31, 2023, File No. 001-7120).](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex34fifthamendeda.htm)</u> |
| <u>[10.03](http://www.sec.gov/Archives/edgar/data/45919/000119312508142830/dex101.htm)</u> | <u>[Harte Hanks, Inc. Restoration Pension Plan](http://www.sec.gov/Archives/edgar/data/45919/000119312508142830/dex101.htm)[,](http://www.sec.gov/Archives/edgar/data/45919/000119312508142830/dex101.htm)[a](http://www.sec.gov/Archives/edgar/data/45919/000119312508142830/dex101.htm)[s Amended and Restated](http://www.sec.gov/Archives/edgar/data/45919/000119312508142830/dex101.htm)[, dated as of](http://www.sec.gov/Archives/edgar/data/45919/000119312508142830/dex101.htm)[January 1, 2008) (](http://www.sec.gov/Archives/edgar/data/45919/000119312508142830/dex101.htm)</u><u>incorporated by reference to</u><u>[Exhibit 10.1 to the Company's](http://www.sec.gov/Archives/edgar/data/45919/000119312508142830/dex101.htm)[Current Report on](http://www.sec.gov/Archives/edgar/data/45919/000119312508142830/dex101.htm)[Form 8-K, filed](http://www.sec.gov/Archives/edgar/data/45919/000119312508142830/dex101.htm)[on June 27, 2008](http://www.sec.gov/Archives/edgar/data/45919/000119312508142830/dex101.htm)[, File No. 001-7120](http://www.sec.gov/Archives/edgar/data/45919/000119312508142830/dex101.htm)[).](http://www.sec.gov/Archives/edgar/data/45919/000119312508142830/dex101.htm)</u> |
| <u>[10.04](http://www.sec.gov/Archives/edgar/data/45919/000110465916150320/a16-19809_1ex10d1.htm)</u> | <u>[First Amendment to the Harte Hanks, Inc. Amended & Restated Restoration Pension Plan, dated](http://www.sec.gov/Archives/edgar/data/45919/000110465916150320/a16-19809_1ex10d1.htm)[as of](http://www.sec.gov/Archives/edgar/data/45919/000110465916150320/a16-19809_1ex10d1.htm)[October 11, 2016 (](http://www.sec.gov/Archives/edgar/data/45919/000110465916150320/a16-19809_1ex10d1.htm)</u><u>incorporated by reference to</u><u>[Exhibit 10.1 to the Company's](http://www.sec.gov/Archives/edgar/data/45919/000110465916150320/a16-19809_1ex10d1.htm)[Current](http://www.sec.gov/Archives/edgar/data/45919/000110465916150320/a16-19809_1ex10d1.htm)[Report on](http://www.sec.gov/Archives/edgar/data/45919/000110465916150320/a16-19809_1ex10d1.htm)[Form 8-K, filed](http://www.sec.gov/Archives/edgar/data/45919/000110465916150320/a16-19809_1ex10d1.htm)[on October 14, 2016](http://www.sec.gov/Archives/edgar/data/45919/000110465916150320/a16-19809_1ex10d1.htm)[, F](http://www.sec.gov/Archives/edgar/data/45919/000110465916150320/a16-19809_1ex10d1.htm)[il](http://www.sec.gov/Archives/edgar/data/45919/000110465916150320/a16-19809_1ex10d1.htm)[e No](http://www.sec.gov/Archives/edgar/data/45919/000110465916150320/a16-19809_1ex10d1.htm)[. 001-7120](http://www.sec.gov/Archives/edgar/data/45919/000110465916150320/a16-19809_1ex10d1.htm)[).](http://www.sec.gov/Archives/edgar/data/45919/000110465916150320/a16-19809_1ex10d1.htm)</u> |
| <u>[10.0](https://www.sec.gov/Archives/edgar/data/45919/000004591918000053/exhibit41oip2018final.htm)[5](https://www.sec.gov/Archives/edgar/data/45919/000004591918000053/exhibit41oip2018final.htm)</u> | <u>[Amended and Restated Harte Hanks 2013 Omnibus Incentive Plan](https://www.sec.gov/Archives/edgar/data/45919/000004591918000053/exhibit41oip2018final.htm)[,](https://www.sec.gov/Archives/edgar/data/45919/000004591918000053/exhibit41oip2018final.htm)[dated as of](https://www.sec.gov/Archives/edgar/data/45919/000004591918000053/exhibit41oip2018final.htm)[September 13, 2018](https://www.sec.gov/Archives/edgar/data/45919/000004591918000053/exhibit41oip2018final.htm)</u><u>[(](https://www.sec.gov/Archives/edgar/data/45919/000004591918000053/exhibit41oip2018final.htm)incorporated by reference toExhibit 4.1 to the Company's Registration Statement on [F](https://www.sec.gov/Archives/edgar/data/45919/000004591918000053/exhibit41oip2018final.htm)</u><u>[orm S-8, filed](https://www.sec.gov/Archives/edgar/data/45919/000004591918000053/exhibit41oip2018final.htm)[on September 13, 2018](https://www.sec.gov/Archives/edgar/data/45919/000004591918000053/exhibit41oip2018final.htm)[, F](https://www.sec.gov/Archives/edgar/data/45919/000004591918000053/exhibit41oip2018final.htm)[ile](https://www.sec.gov/Archives/edgar/data/45919/000004591918000053/exhibit41oip2018final.htm)[NO. 333-274226](https://www.sec.gov/Archives/edgar/data/45919/000004591918000053/exhibit41oip2018final.htm)[).](https://www.sec.gov/Archives/edgar/data/45919/000004591918000053/exhibit41oip2018final.htm)</u> |
| <u>[10.0](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex1007hartehanksi.htm)[6](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex1007hartehanksi.htm)</u> | <u>[Harte Hanks, Inc. 2020 Equity Incentive Plan, dated](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex1007hartehanksi.htm)[as of](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex1007hartehanksi.htm)[August 3, 2020 (incorporated by reference to Exhibit 10.07 to the Company's](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex1007hartehanksi.htm)[Annual](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex1007hartehanksi.htm)[Report on](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex1007hartehanksi.htm)[Form 10-K](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex1007hartehanksi.htm)[for the year](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex1007hartehanksi.htm)[ended December 31,](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex1007hartehanksi.htm)[2023, File](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex1007hartehanksi.htm)[No. 001-7120)](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex1007hartehanksi.htm)[.](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex1007hartehanksi.htm)</u> |
| <u>[10.0](https://www.sec.gov/Archives/edgar/data/45919/000119312523169677/d515780dex101.htm)[7](https://www.sec.gov/Archives/edgar/data/45919/000119312523169677/d515780dex101.htm)</u> | <u>[Employment Agreement between the Company and Kirk Davis,](https://www.sec.gov/Archives/edgar/data/45919/000119312523169677/d515780dex101.htm)[dated](https://www.sec.gov/Archives/edgar/data/45919/000119312523169677/d515780dex101.htm)[as of June 19, 2023 (](https://www.sec.gov/Archives/edgar/data/45919/000119312523169677/d515780dex101.htm)[incorporated by reference to](https://www.sec.gov/Archives/edgar/data/45919/000143774921015419/ex_259087.htm)[Exhibit 10.1 to the Company's](https://www.sec.gov/Archives/edgar/data/45919/000119312523169677/d515780dex101.htm)[Current Report on](https://www.sec.gov/Archives/edgar/data/45919/000119312523169677/d515780dex101.htm)[Form 8-K, filed](https://www.sec.gov/Archives/edgar/data/45919/000119312523169677/d515780dex101.htm)[on June 20, 2023](https://www.sec.gov/Archives/edgar/data/45919/000119312523169677/d515780dex101.htm)[, File N](https://www.sec.gov/Archives/edgar/data/45919/000119312523169677/d515780dex101.htm)[o. 001-7120](https://www.sec.gov/Archives/edgar/data/45919/000119312523169677/d515780dex101.htm)[).](https://www.sec.gov/Archives/edgar/data/45919/000119312523169677/d515780dex101.htm)</u> |
| <u>[10.08](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex1010separationa.htm)</u> | <u>[Separation Agreement between the Company and Brian Linscott](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex1010separationa.htm)[, dated](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex1010separationa.htm)[as of June 21, 2023 (incorporated by reference to Exhibit 10.10 to the Company's](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex1010separationa.htm)[Annual Report on Form](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex1010separationa.htm)[1](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex1010separationa.htm)[0-K](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex1010separationa.htm)[for the year ended December 31, 2](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex1010separationa.htm)[023, File No. 001-7120)](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex1010separationa.htm)[.](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex1010separationa.htm)</u> |
| <u>[10.09](https://www.sec.gov/Archives/edgar/data/45919/000143774923024687/ex_564145.htm)</u> | <u>[Hart Hanks Inc. 2023 Inducement Equity Incentive Plan (](https://www.sec.gov/Archives/edgar/data/45919/000143774923024687/ex_564145.htm)[incorporated by reference to](https://www.sec.gov/Archives/edgar/data/45919/000143774921015419/ex_259087.htm)[Exhibit 99.01 to the Company's](https://www.sec.gov/Archives/edgar/data/45919/000143774923024687/ex_564145.htm)[Registration Statement on](https://www.sec.gov/Archives/edgar/data/45919/000143774923024687/ex_564145.htm)[Form S-8](https://www.sec.gov/Archives/edgar/data/45919/000143774923024687/ex_564145.htm)[, filed](https://www.sec.gov/Archives/edgar/data/45919/000143774923024687/ex_564145.htm)[on August 25, 2023](https://www.sec.gov/Archives/edgar/data/45919/000143774923024687/ex_564145.htm)[, F](https://www.sec.gov/Archives/edgar/data/45919/000143774923024687/ex_564145.htm)[ile](https://www.sec.gov/Archives/edgar/data/45919/000143774923024687/ex_564145.htm)[No.](https://www.sec.gov/Archives/edgar/data/45919/000143774923024687/ex_564145.htm)[333-274226).](https://www.sec.gov/Archives/edgar/data/45919/000143774923024687/ex_564145.htm)</u> |
| <u>[10.1](https://www.sec.gov/Archives/edgar/data/45919/000119312523257047/d761755dex101.htm)[0](https://www.sec.gov/Archives/edgar/data/45919/000119312523257047/d761755dex101.htm)</u> | <u>[Separation Agreement between the Company and Lauri Kearnes](https://www.sec.gov/Archives/edgar/data/45919/000119312523257047/d761755dex101.htm)[, dated as](https://www.sec.gov/Archives/edgar/data/45919/000119312523257047/d761755dex101.htm)[of October 15, 2023 (incorporated by reference to Exhibit 10.1 to the Company's](https://www.sec.gov/Archives/edgar/data/45919/000119312523257047/d761755dex101.htm)[Current](https://www.sec.gov/Archives/edgar/data/45919/000119312523257047/d761755dex101.htm)[Report on F](https://www.sec.gov/Archives/edgar/data/45919/000119312523257047/d761755dex101.htm)[orm 8-K, filed](https://www.sec.gov/Archives/edgar/data/45919/000119312523257047/d761755dex101.htm)[on October 17, 2023](https://www.sec.gov/Archives/edgar/data/45919/000119312523257047/d761755dex101.htm)[, F](https://www.sec.gov/Archives/edgar/data/45919/000119312523257047/d761755dex101.htm)[il](https://www.sec.gov/Archives/edgar/data/45919/000119312523257047/d761755dex101.htm)[e No. 001-7120](https://www.sec.gov/Archives/edgar/data/45919/000119312523257047/d761755dex101.htm)[).](https://www.sec.gov/Archives/edgar/data/45919/000119312523257047/d761755dex101.htm)</u> |
| <u>[10.1](https://www.sec.gov/Archives/edgar/data/45919/000004591924000003/a20231229ex101debtamendment.htm)[1](https://www.sec.gov/Archives/edgar/data/45919/000004591924000003/a20231229ex101debtamendment.htm)</u> | <u>[First Amendment to Loan Agreement,](https://www.sec.gov/Archives/edgar/data/45919/000004591924000003/a20231229ex101debtamendment.htm)[dated as of](https://www.sec.gov/Archives/edgar/data/45919/000004591924000003/a20231229ex101debtamendment.htm)[December 29, 2023, among Harte Hanks Inc. the](https://www.sec.gov/Archives/edgar/data/45919/000004591924000003/a20231229ex101debtamendment.htm)[other loan](https://www.sec.gov/Archives/edgar/data/45919/000004591924000003/a20231229ex101debtamendment.htm)[part](https://www.sec.gov/Archives/edgar/data/45919/000004591924000003/a20231229ex101debtamendment.htm)[ies](https://www.sec.gov/Archives/edgar/data/45919/000004591924000003/a20231229ex101debtamendment.htm)[thereto and](https://www.sec.gov/Archives/edgar/data/45919/000004591924000003/a20231229ex101debtamendment.htm)[Texas Capital Bank (](https://www.sec.gov/Archives/edgar/data/45919/000004591924000003/a20231229ex101debtamendment.htm)[incorporated by reference to](https://www.sec.gov/Archives/edgar/data/45919/000143774921015419/ex_259087.htm)[Exhibit 10.1 to the Company's](https://www.sec.gov/Archives/edgar/data/45919/000004591924000003/a20231229ex101debtamendment.htm)[Current Report on](https://www.sec.gov/Archives/edgar/data/45919/000004591924000003/a20231229ex101debtamendment.htm)[Form 8-K, filed](https://www.sec.gov/Archives/edgar/data/45919/000004591924000003/a20231229ex101debtamendment.htm)[o](https://www.sec.gov/Archives/edgar/data/45919/000004591924000003/a20231229ex101debtamendment.htm)[n January 5, 2024](https://www.sec.gov/Archives/edgar/data/45919/000004591924000003/a20231229ex101debtamendment.htm)[, File No. 001-7120](https://www.sec.gov/Archives/edgar/data/45919/000004591924000003/a20231229ex101debtamendment.htm)[).](https://www.sec.gov/Archives/edgar/data/45919/000004591924000003/a20231229ex101debtamendment.htm)</u> |
| <u>[10.1](https://www.sec.gov/Archives/edgar/data/45919/000004591924000007/exhibit101-cfoagreement.htm)[2](https://www.sec.gov/Archives/edgar/data/45919/000004591924000007/exhibit101-cfoagreement.htm)</u> | <u>[Employment Agreement between the Company and David Garrison,](https://www.sec.gov/Archives/edgar/data/45919/000004591924000007/exhibit101-cfoagreement.htm)[dated](https://www.sec.gov/Archives/edgar/data/45919/000004591924000007/exhibit101-cfoagreement.htm)[as of January 29, 2024 (incorporated by reference to Exhibit 10.1 to the Company's](https://www.sec.gov/Archives/edgar/data/45919/000004591924000007/exhibit101-cfoagreement.htm)[Current Report on](https://www.sec.gov/Archives/edgar/data/45919/000004591924000007/exhibit101-cfoagreement.htm)[Form 8-K, filed](https://www.sec.gov/Archives/edgar/data/45919/000004591924000007/exhibit101-cfoagreement.htm)[on January 29, 2024](https://www.sec.gov/Archives/edgar/data/45919/000004591924000007/exhibit101-cfoagreement.htm)[, File No. 001-7120](https://www.sec.gov/Archives/edgar/data/45919/000004591924000007/exhibit101-cfoagreement.htm)[).](https://www.sec.gov/Archives/edgar/data/45919/000004591924000007/exhibit101-cfoagreement.htm)</u> |
| <u>[10.1](https://www.sec.gov/Archives/edgar/data/45919/000004591925000002/exhibit101.htm)[3](https://www.sec.gov/Archives/edgar/data/45919/000004591925000002/exhibit101.htm)</u> | <u>[Employment Agreement between the Company and David Fisher,](https://www.sec.gov/Archives/edgar/data/45919/000004591925000002/exhibit101.htm)[dated](https://www.sec.gov/Archives/edgar/data/45919/000004591925000002/exhibit101.htm)[as of January 27, 2025 (](https://www.sec.gov/Archives/edgar/data/45919/000004591925000002/exhibit101.htm)[incorporated by reference to](https://www.sec.gov/Archives/edgar/data/45919/000143774921015419/ex_259087.htm)[Exhibit 10.1 to the Company's](https://www.sec.gov/Archives/edgar/data/45919/000004591925000002/exhibit101.htm)[Current Report on](https://www.sec.gov/Archives/edgar/data/45919/000004591925000002/exhibit101.htm)[Form 8-K, filed](https://www.sec.gov/Archives/edgar/data/45919/000004591925000002/exhibit101.htm)[on January 28, 2025](https://www.sec.gov/Archives/edgar/data/45919/000004591925000002/exhibit101.htm)[, File No. 001-](https://www.sec.gov/Archives/edgar/data/45919/000004591925000002/exhibit101.htm)[7120](https://www.sec.gov/Archives/edgar/data/45919/000004591925000002/exhibit101.htm)[).](https://www.sec.gov/Archives/edgar/data/45919/000004591925000002/exhibit101.htm)</u> |
| \*Filed or furnished herewith, as applicable | \*Filed or furnished herewith, as applicable |

---

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

---

| | |
|:---|:---|
| **INDEX TO EXHIBITS** *(continued)* | **INDEX TO EXHIBITS** *(continued)* |
| **Exhibit<br>No.** | **Description of Exhibit** |
| <u>[10.14](https://www.sec.gov/Archives/edgar/data/45919/000004591925000023/a20250514ex1001shareholder.htm)</u> | <u>[Cooperation Agreement, dated as of May 14, 2025, by and between Harte Hanks, Inc. and Gary S. Rosenbach and Susan Rosenbach](https://www.sec.gov/Archives/edgar/data/45919/000004591925000023/a20250514ex1001shareholder.htm)[(incorporated by reference to Exhibit 10.1 to the Company's](https://www.sec.gov/Archives/edgar/data/45919/000004591925000023/a20250514ex1001shareholder.htm)[Current Report on](https://www.sec.gov/Archives/edgar/data/45919/000004591925000023/a20250514ex1001shareholder.htm)[Form 8-K, filed](https://www.sec.gov/Archives/edgar/data/45919/000004591925000023/a20250514ex1001shareholder.htm)[on](https://www.sec.gov/Archives/edgar/data/45919/000004591925000023/a20250514ex1001shareholder.htm)[May 14, 2025](https://www.sec.gov/Archives/edgar/data/45919/000004591925000023/a20250514ex1001shareholder.htm)[, File No. 001-7120](https://www.sec.gov/Archives/edgar/data/45919/000004591925000023/a20250514ex1001shareholder.htm)[).](https://www.sec.gov/Archives/edgar/data/45919/000004591925000023/a20250514ex1001shareholder.htm)</u> |
| <u>[1](https://www.sec.gov/Archives/edgar/data/45919/000162828025033520/a20250624ex102offerlettert.htm)[0.15](https://www.sec.gov/Archives/edgar/data/45919/000162828025033520/a20250624ex102offerlettert.htm)</u> | <u>[Employment Agreement between the Company and David Fisher](https://www.sec.gov/Archives/edgar/data/45919/000162828025033520/a20250624ex102offerlettert.htm)[,](https://www.sec.gov/Archives/edgar/data/45919/000162828025033520/a20250624ex102offerlettert.htm)[dated](https://www.sec.gov/Archives/edgar/data/45919/000162828025033520/a20250624ex102offerlettert.htm)[as of June 24, 2025 (incorporated by reference to Exhibit 10.2 to the Company's](https://www.sec.gov/Archives/edgar/data/45919/000162828025033520/a20250624ex102offerlettert.htm)[Current Report on](https://www.sec.gov/Archives/edgar/data/45919/000162828025033520/a20250624ex102offerlettert.htm)[Form 8-K, filed](https://www.sec.gov/Archives/edgar/data/45919/000162828025033520/a20250624ex102offerlettert.htm)[on June 30, 2025](https://www.sec.gov/Archives/edgar/data/45919/000162828025033520/a20250624ex102offerlettert.htm)[, File No. 001-7120](https://www.sec.gov/Archives/edgar/data/45919/000162828025033520/a20250624ex102offerlettert.htm)[)](https://www.sec.gov/Archives/edgar/data/45919/000162828025033520/a20250624ex102offerlettert.htm)</u>. |
| <u>[10.16](https://www.sec.gov/Archives/edgar/data/45919/000162828025033520/a20250624ex1012ndamendment.htm)</u> | <u>[Second](https://www.sec.gov/Archives/edgar/data/45919/000162828025033520/a20250624ex1012ndamendment.htm)[Amendment to Loan Agreement,](https://www.sec.gov/Archives/edgar/data/45919/000162828025033520/a20250624ex1012ndamendment.htm)[dated as of](https://www.sec.gov/Archives/edgar/data/45919/000162828025033520/a20250624ex1012ndamendment.htm)[June](https://www.sec.gov/Archives/edgar/data/45919/000162828025033520/a20250624ex1012ndamendment.htm)[2](https://www.sec.gov/Archives/edgar/data/45919/000162828025033520/a20250624ex1012ndamendment.htm)[4](https://www.sec.gov/Archives/edgar/data/45919/000162828025033520/a20250624ex1012ndamendment.htm)[, 202](https://www.sec.gov/Archives/edgar/data/45919/000162828025033520/a20250624ex1012ndamendment.htm)[5](https://www.sec.gov/Archives/edgar/data/45919/000162828025033520/a20250624ex1012ndamendment.htm)[, among Harte Hanks Inc. the](https://www.sec.gov/Archives/edgar/data/45919/000162828025033520/a20250624ex1012ndamendment.htm)[other loan](https://www.sec.gov/Archives/edgar/data/45919/000162828025033520/a20250624ex1012ndamendment.htm)[par](https://www.sec.gov/Archives/edgar/data/45919/000162828025033520/a20250624ex1012ndamendment.htm)[ties](https://www.sec.gov/Archives/edgar/data/45919/000162828025033520/a20250624ex1012ndamendment.htm)[thereto and](https://www.sec.gov/Archives/edgar/data/45919/000162828025033520/a20250624ex1012ndamendment.htm)[Texas Capital Bank (](https://www.sec.gov/Archives/edgar/data/45919/000162828025033520/a20250624ex1012ndamendment.htm)[incorporated by reference to](https://www.sec.gov/Archives/edgar/data/45919/000162828025033520/a20250624ex1012ndamendment.htm)[Exhibit 10.1 to the Company's](https://www.sec.gov/Archives/edgar/data/45919/000162828025033520/a20250624ex1012ndamendment.htm)[Current Repo](https://www.sec.gov/Archives/edgar/data/45919/000162828025033520/a20250624ex1012ndamendment.htm)[rt on](https://www.sec.gov/Archives/edgar/data/45919/000162828025033520/a20250624ex1012ndamendment.htm)[Form 8-K, filed](https://www.sec.gov/Archives/edgar/data/45919/000162828025033520/a20250624ex1012ndamendment.htm)[on J](https://www.sec.gov/Archives/edgar/data/45919/000162828025033520/a20250624ex1012ndamendment.htm)[une](https://www.sec.gov/Archives/edgar/data/45919/000162828025033520/a20250624ex1012ndamendment.htm)[30](https://www.sec.gov/Archives/edgar/data/45919/000162828025033520/a20250624ex1012ndamendment.htm)[, 202](https://www.sec.gov/Archives/edgar/data/45919/000162828025033520/a20250624ex1012ndamendment.htm)[5](https://www.sec.gov/Archives/edgar/data/45919/000162828025033520/a20250624ex1012ndamendment.htm)[, File No. 001-7120](https://www.sec.gov/Archives/edgar/data/45919/000162828025033520/a20250624ex1012ndamendment.htm)[).](https://www.sec.gov/Archives/edgar/data/45919/000162828025033520/a20250624ex1012ndamendment.htm)</u> |
| <u>[16.01](https://www.sec.gov/Archives/edgar/data/45919/000004591924000075/a202408238-kex161.htm)</u> | <u>[Letter from Baker Tilly LLP to the Securities and Exchange Commission,](https://www.sec.gov/Archives/edgar/data/45919/000004591924000075/a202408238-kex161.htm)[d](https://www.sec.gov/Archives/edgar/data/45919/000004591924000075/a202408238-kex161.htm)[ated](https://www.sec.gov/Archives/edgar/data/45919/000004591924000075/a202408238-kex161.htm)[as of](https://www.sec.gov/Archives/edgar/data/45919/000004591924000075/a202408238-kex161.htm)[August 23, 2024 (incorporated by reference to Exhibit 16.1 to the Company's](https://www.sec.gov/Archives/edgar/data/45919/000004591924000075/a202408238-kex161.htm)[Current Report o](https://www.sec.gov/Archives/edgar/data/45919/000004591924000075/a202408238-kex161.htm)[n](https://www.sec.gov/Archives/edgar/data/45919/000004591924000075/a202408238-kex161.htm)[Form 8-K, filed](https://www.sec.gov/Archives/edgar/data/45919/000004591924000075/a202408238-kex161.htm)[o](https://www.sec.gov/Archives/edgar/data/45919/000004591924000075/a202408238-kex161.htm)[n August 23, 2024](https://www.sec.gov/Archives/edgar/data/45919/000004591924000075/a202408238-kex161.htm)[, File No. 001-7120](https://www.sec.gov/Archives/edgar/data/45919/000004591924000075/a202408238-kex161.htm)[).](https://www.sec.gov/Archives/edgar/data/45919/000004591924000075/a202408238-kex161.htm)</u> |
| \*19 | <u>[Harte Hanks Business Conduct Policy: Insider Trading Restriction](a20251231ex19insidertrading.htm)[s (incorporated by reference to Exhibit 19 to the Company's Annual Report on Form 10-K for the year ended December 31, 2024, File No. 001-7120).](a20251231ex19insidertrading.htm)</u> |
| \*21.1 | <u>[Subsidiaries of Harte Hanks, Inc.](a20251231ex211sublist.htm)</u> |
| \*23.1 | <u>[Consent of Wolf & Company, P.C](a20251231ex231wolfcoconsent.htm)</u>. |
| \*31.1 | <u>[Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](a20251231ex311.htm)</u> |
| \*31.2 | <u>[Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](a20251231ex312.htm)</u> |
| \*32.1 | <u>[Furnished Certification of Chief Executive Officer pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](a20251231ex321.htm)</u> |
| \*32.2 | <u>[Furnished Certification of Chief Financial Officer pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](a20251231ex322.htm)</u> |
| <u>[97](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex97clawbackpolicy.htm)</u> | <u>[Harte Hanks Clawback Policy (incorporated by reference to Exhibit 97 to the Company'](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex97clawbackpolicy.htm)[s](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex97clawbackpolicy.htm)[Annual Report on](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex97clawbackpolicy.htm)[Form 10-K](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex97clawbackpolicy.htm)[for the year ended December 31, 2023,](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex97clawbackpolicy.htm)[File No 001-7120](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex97clawbackpolicy.htm)[).](https://www.sec.gov/Archives/edgar/data/45919/000004591924000014/a20231231ex97clawbackpolicy.htm)</u> |
| \*101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data Files because its XBRL tags are embedded within the Inline XBRL Document. |
| \*101.SCH | Inline XBRL Taxonomy Extension Schema Document. |
| \*101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. |
| \*101.LAB | Inline XBRL Taxonomy Extension Labels Linkbase Document. |
| \*101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. |
| \*101.DEF | Inline XBRL Definition Linkbase Document. |
| \*104 | Cover Page Interactive Data File (embedded within the Inline XBRL and contained in Exhibit 101). |
| \*Filed or furnished herewith, as applicable | \*Filed or furnished herewith, as applicable |

---

**ITEM 16. 10-K SUMMARY**

None

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

**SIGNATURES** 

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, Harte Hanks, Inc. has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | |
|:---|:---|
| HARTE HANKS, INC. | HARTE HANKS, INC. |
| By: | /s/ David Fisher |
|  | David Fisher |
|  | President |
| Date: | March 17, 2026 |

---

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

---

| | |
|:---|:---|
| /s/ David Fisher | /s/ David Garrison |
| David Fisher | David Garrison |
| President | Chief Financial Officer |
| Date: March 17, 2026 | Date: March 17, 2026 |
| /s/ John H. Griffin, Jr. | /s/ Genevieve C. Combes |
| John H. Griffin Jr., Director | Genevieve C. Combes, Director |
| Date: March 17, 2026 | Date: March 17, 2026 |
| /s/ Liz Ross | /s/ Bradley L Radoff |
| Liz Ross, Director | Bradley L. Radoff, Director |
| Date: March 17, 2026 | Date: March 17, 2026 |

---

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

Harte Hanks, Inc. and Subsidiaries

Index to Consolidated Financial Statements

---

| | |
|:---|:---|
| <u>[Report](#i5f306ec409da4aae92a556d5de29c33f_133)[of Independent Registered Public Accounting Firm](#i5f306ec409da4aae92a556d5de29c33f_133)[on the Consolidated Financial Statements](#i5f306ec409da4aae92a556d5de29c33f_133)</u> (Wolf & Company, P.C., PCAOB ID #392) | <u>[36](#i5f306ec409da4aae92a556d5de29c33f_133)</u> |
| <u>[Consolidated Balance Sheets as of December 31, 202](#i5f306ec409da4aae92a556d5de29c33f_139)[5](#i5f306ec409da4aae92a556d5de29c33f_139)[and 202](#i5f306ec409da4aae92a556d5de29c33f_139)</u>4 | <u>[38](#i5f306ec409da4aae92a556d5de29c33f_139)</u> |
| <u>[Consolidated Statements of Comprehensive](#i5f306ec409da4aae92a556d5de29c33f_145)[(Loss)](#i5f306ec409da4aae92a556d5de29c33f_145)[Income for the years ended December 31, 202](#i5f306ec409da4aae92a556d5de29c33f_145)[5](#i5f306ec409da4aae92a556d5de29c33f_145)[and 202](#i5f306ec409da4aae92a556d5de29c33f_145)</u>4 | <u>[39](#i5f306ec409da4aae92a556d5de29c33f_145)</u> |
| <u>[Consolidated Statements of Changes in Stockholders' Equity for the years ended December 31, 202](#i5f306ec409da4aae92a556d5de29c33f_148)[5](#i5f306ec409da4aae92a556d5de29c33f_148)[and 202](#i5f306ec409da4aae92a556d5de29c33f_148)</u>4 | <u>[40](#i5f306ec409da4aae92a556d5de29c33f_148)</u> |
| <u>[Consolidated Statements of Cash Flows for the years ended December 31, 202](#i5f306ec409da4aae92a556d5de29c33f_151)[5](#i5f306ec409da4aae92a556d5de29c33f_151)[and 202](#i5f306ec409da4aae92a556d5de29c33f_151)</u>4 | <u>[41](#i5f306ec409da4aae92a556d5de29c33f_151)</u> |
| <u>[Notes to Consolidated Financial Statements](#i5f306ec409da4aae92a556d5de29c33f_154)</u> | <u>[42](#i5f306ec409da4aae92a556d5de29c33f_154)</u> |

---

All schedules for which provision is made in the applicable rules and regulations of the SEC have been omitted as the schedules are not required under the related instructions, are not applicable, or the information required thereby is set forth in the consolidated financial statements or notes thereto.

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

**Report of Independent Registered Public Accounting Firm**

To the Stockholders and the Board of Directors of Harte Hanks, Inc. and Subsidiaries:

**Opinion on the Financial Statements**

We have audited the accompanying consolidated balance sheets of Harte Hanks, Inc. and Subsidiaries (the Company) as of December 31, 2025 and 2024, the related consolidated statements of comprehensive (loss) income, changes in stockholders' equity and cash flows for each of the two years in the period ended December 31, 2025, and the related notes to the consolidated financial statements (collectively, the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the two years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

**Critical Audit Matters**

The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

*Revenue from Contracts with Customers*

As described in Note C to the financial statements, the Company generates revenue by offering a variety of services discrete to each of its reportable segments. Revenue recognition requires management to apply judgment in identifying performance obligations and determining the timing and amount of revenue recognized under customer contracts. Given the diversity of services offered and the judgment required to apply the relevant accounting guidance, we identified revenue recognition as a critical audit matter.

Obtaining an understanding of the Company's accounting policies and processes for revenue recognition across its segments required significant auditor effort. We also applied subjective auditor judgment when determining the nature and extent of our audit procedures and evaluating the overall sufficiency of the audit evidence obtained.

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

Addressing this critical audit matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the financial statements. These procedures include, among others: i) obtaining, reading and assessing management's accounting policy memorandums, ii) testing a sample of revenue transactions to customer contracts, third-party source documents and other documentation, as applicable, to support the amount and timing of revenue recognized and iii) for customer contracts obtained, we evaluated the completeness and accuracy of performance obligations identified by management.

/s/ Wolf & Company, P.C.

We have served as the Company's auditor since 2024.

Boston, Massachusetts

March 17, 2026

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

---

| | | |
|:---|:---|:---|
| <u>Harte Hanks, Inc. and Subsidiaries Consolidated Balance Sheets</u> | **December 31,** | **December 31,** |
| *In thousands, except per share and share amounts* | **2025** | **2024** |
| ASSETS |  |  |
| Current assets |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents and restricted cash | $5587 | $9934 |
| &nbsp;&nbsp;&nbsp;Accounts receivable (less allowance of $22 and $50 at December 31, 2025 and 2024, respectively) | 27841 | 31648 |
| &nbsp;&nbsp;&nbsp;Contract assets and unbilled accounts receivable | 7049 | 8215 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses | 2363 | 1511 |
| &nbsp;&nbsp;&nbsp;Prepaid income tax and income tax receivable | 1431 | 938 |
| &nbsp;&nbsp;&nbsp;Other current assets | 2046 | 1368 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | $46317 | $53614 |
| Net property, plant and equipment | 8386 | 8956 |
| Right-of-use assets | 19854 | $22460 |
| Other assets |  |  |
| &nbsp;&nbsp;&nbsp;Intangible assets, net | 370 | 563 |
| &nbsp;&nbsp;&nbsp;Goodwill | 295 | 295 |
| &nbsp;&nbsp;&nbsp;Deferred tax assets, net | 16040 | 15177 |
| &nbsp;&nbsp;&nbsp;Other long-term assets | 564 | 717 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other assets | $17269 | $16752 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $91826 | $101782 |
| LIABILITIES AND STOCKHOLDERS' EQUITY |  |  |
| Current liabilities |  |  |
| &nbsp;&nbsp;Accounts payable | $13096 | $13429 |
| &nbsp;&nbsp;Accrued expenses | 5915 | 8403 |
| &nbsp;&nbsp;Accrued payroll and related expenses | 2749 | 3210 |
| &nbsp;&nbsp;Deferred revenue and customer advances | 813 | 1589 |
| &nbsp;&nbsp;Customer postage and program deposits | 868 | 1625 |
| &nbsp;&nbsp;Other current liabilities | 3180 | 3145 |
| &nbsp;&nbsp;Short-term lease liabilities | 3543 | 3736 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | $30164 | $35137 |
| Pension liabilities - Qualified plans | 4106 | 5445 |
| Pension liabilities - Nonqualified plan | 16995 | 17103 |
| Long-term lease liabilities | 18861 | 20860 |
| Other long-term liabilities | 1174 | 1548 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | $71300 | $80093 |
| Stockholders' equity |  |  |
| &nbsp;&nbsp;&nbsp;Common stock, $1 par value, 25,000,000 shares authorized, 12,221,484 shares issued, 7,414,794 and 7,357,450 shares outstanding at December 31, 2025 and 2024, respectively | 12221 | 12221 |
| &nbsp;&nbsp;Additional paid-in capital | 109558 | 124194 |
| &nbsp;&nbsp;Retained earnings | 813812 | 814623 |
| &nbsp;&nbsp;Less treasury stock, 4,806,690 and 4,864,034 shares at December 31, 2025 and 2024, respectively, at cost | (900085) | (915752) |
| &nbsp;&nbsp;Accumulated other comprehensive loss | (14980) | (13597) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | $20526 | $21689 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $91826 | $101782 |
| See Accompanying Notes to Consolidated Financial Statements. | See Accompanying Notes to Consolidated Financial Statements. | See Accompanying Notes to Consolidated Financial Statements. |

---

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

<u>Harte Hanks, Inc. and Subsidiaries Consolidated Statements of Comprehensive (Loss) Income</u>

---

| | | |
|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** |
| *In thousands, except per share amounts* | **2025** | **2024** |
| Operating revenue | $159570 | $185242 |
| Operating expenses |  |  |
| &nbsp;&nbsp;Labor | 80823 | 93769 |
| &nbsp;&nbsp;Production and distribution | 49898 | 56644 |
| &nbsp;&nbsp;Advertising, selling, general and administrative | 22209 | 22781 |
| &nbsp;&nbsp;Restructuring expense | 1782 | 2402 |
| &nbsp;&nbsp;Goodwill impairment charge |  | 1631 |
| &nbsp;&nbsp;Intangible assets impairment charge |  | 1537 |
| &nbsp;&nbsp;Depreciation and amortization expense | 4472 | 4385 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | $159184 | $183149 |
| Operating income | $386 | $2093 |
| Other expenses, net |  |  |
| &nbsp;&nbsp;Interest expense, net | 248 | 187 |
| &nbsp;&nbsp;Pension plan termination charges |  | 37505 |
| &nbsp;&nbsp;Other expenses, net | 1146 | 2335 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other expenses, net | $1394 | $40027 |
| Loss before income taxes | (1008) | (37934) |
| Income tax benefit | (197) | (7637) |
| Net loss | $(811) | $(30297) |
| Loss per common share |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic and Diluted | $(0.11) | $(4.15) |
| Weighted-average shares used to compute loss per share attributable to common shares | Weighted-average shares used to compute loss per share attributable to common shares |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic and Diluted | 7393 | 7293 |
| Comprehensive income, net of tax |  |  |
| &nbsp;&nbsp;Net loss | $(811) | $(30297) |
| &nbsp;&nbsp;Adjustment to pension liabilities, net of tax benefit of $180 and $11,492 | (1014) | 32273 |
| &nbsp;&nbsp;Foreign currency translation adjustments | (369) | (1780) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other comprehensive (loss) income, net of tax | $(1383) | $30493 |
| Comprehensive (loss) income | $(2194) | $196 |

---

See Accompanying Notes to Consolidated Financial Statements.

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

<u>Harte Hanks, Inc. and Subsidiaries Consolidated Statements of Changes in Stockholders' Equity</u> 

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *In thousands* | **Common<br>Stock** |  | **Additional** <br>**Paid-in** <br>**Capital** |  | **Retained** <br>**Earnings** |  | **Treasury** <br>**Stock** | **Accumulated <br>Other <br>Comprehensive<br>(loss) income** | **Total <br>Stockholders'<br>Equity** |
| Balance at December 31, 2023 | $12221 |  | $157889 |  | $844920 |  | $(951083) | $(44090) | $19857 |
| Stock-based compensation |  |  | 1931 |  |  |  |  |  | 1931 |
| Vesting of RSUs |  |  | (35626) |  |  |  | 35331 |  | (295) |
| Net loss |  |  |  |  | (30297) |  |  |  | (30297) |
| Other comprehensive income |  |  |  |  |  |  |  | 30493 | 30493 |
| Balance at December 31, 2024 | $12221 | $| $124194 | $| $814623 | $| $(915752) | $(13597) | $21689 |
| Stock-based compensation |  |  | 258 |  |  |  |  |  | 258 |
| Vesting of RSUs |  |  | (15732) |  |  |  | 15667 |  | (65) |
| Net Recovery of short swing profits |  |  | 838 |  |  |  |  |  | 838 |
| Net loss |  |  |  |  | (811) |  |  |  | (811) |
| Other comprehensive loss |  |  |  |  |  |  |  | (1383) | (1383) |
| Balance at December 31, 2025 | $12221 |  | $109558 |  | $813812 |  | $(900085) | $(14980) | $20526 |

---

See Accompanying Notes to Consolidated Financial Statements.

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

<u>Harte Hanks, Inc. and Subsidiaries Consolidated Statements of Cash Flows</u>

---

| | | |
|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** |
| **In thousands** | **2025** | **2024** |
| Cash Flows from Operating Activities |  |  |
| &nbsp;&nbsp;Net loss | $(811) | $(30297) |
| &nbsp;&nbsp;Adjustments to reconcile net loss to net cash (used in) provided by operating activities | &nbsp;&nbsp;Adjustments to reconcile net loss to net cash (used in) provided by operating activities |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization expense | 4472 | 4385 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring expense |  | 158 |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairment charges for goodwill and intangible assets |  | 3168 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 258 | 1931 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net pension cost | (2343) | 30576 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | (928) | (9279) |
| &nbsp;&nbsp;Changes in assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net and contract assets | 4973 | 2385 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses, income tax receivable and other current assets | (1885) | 703 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | (3210) | (795) |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue and customer advances | (776) | (1606) |
| &nbsp;&nbsp;&nbsp;&nbsp;Customer postage and program deposits | (757) | (190) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other accrued expenses and liabilities | (728) | (4126) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in operating activities | $(1735) | $(2987) |
| Cash Flows from Investing Activities |  |  |
| &nbsp;&nbsp;Purchases of property, plant and equipment | (2757) | (3746) |
| &nbsp;&nbsp;Proceeds from the sale of property, plant and equipment | 1 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | $(2756) | $(3744) |
| Cash Flows from Financing Activities |  |  |
| &nbsp;&nbsp;Debt financing costs | (100) |  |
| &nbsp;&nbsp;Payment of finance leases | (159) | (124) |
| &nbsp;&nbsp;Recovery of short-swing profit from stockholders | 838 |  |
| &nbsp;&nbsp;Treasury stock activities | (65) | (295) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) financing activities | $514 | $(419) |
| Effect of exchange rate changes on cash and cash equivalents and restricted cash | (370) | (1780) |
| Net decrease in cash and cash equivalents and restricted cash | (4347) | (8930) |
| Cash and cash equivalents and restricted cash at beginning of year | 9934 | 18864 |
| Cash and cash equivalents and restricted cash at end of year <sup>(1)</sup> | $5587 | $9934 |
| <sup>(1)</sup> This amount is comprised of the below balances: |  |  |
| &nbsp;&nbsp;Cash and cash equivalents | 5582 | 9810 |
| &nbsp;&nbsp;Restricted cash | 5 | 124 |
|  | $5587 | $9934 |
| See Accompanying Notes to Consolidated Financial Statement |  |  |
| Harte Hanks, Inc. and Subsidiaries Consolidated Statements of Cash Flows *(continued)* | Harte Hanks, Inc. and Subsidiaries Consolidated Statements of Cash Flows *(continued)* | Harte Hanks, Inc. and Subsidiaries Consolidated Statements of Cash Flows *(continued)* |
| Supplemental disclosures: |  |  |
| &nbsp;&nbsp;Cash paid for interest | $292 | $234 |
| &nbsp;&nbsp;Cash (received) for interest | $(123) | $(236) |
| &nbsp;&nbsp;Cash paid for income taxes, net of refunds | $1779 | $1452 |
| Non-cash investing and financing activities: |  |  |
| &nbsp;&nbsp;Purchases of property, plant and equipment included in accounts payable and accrued expense | $498 | $1257 |
| &nbsp;&nbsp;Right-of-use assets acquired through operating leases | $1252 | $303 |
| &nbsp;&nbsp;See Accompanying Notes to Consolidated Financial Statements |  |  |

---

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

**Harte Hanks, Inc. and Subsidiaries Notes to Consolidated Financial Statements**

**<u>Note A — Background and Basis of Presentation</u>**

**Background** 

Harte Hanks, Inc. together with its subsidiaries ("Harte Hanks," "Company," "we," "our," or "us") is a leading global customer experience company. With offices in North America, Asia-Pacific and Europe, Harte Hanks works with some of the world's most respected brands.

**Basis of Presentation** 

*Consolidation*

The accompanying audited consolidated financial statements include the accounts of Harte Hanks, Inc. and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. As used in this report, the terms "Harte Hanks," "the Company," "we," "us," or "our" may refer to Harte Hanks, Inc., one or more of its consolidated subsidiaries, or all of them taken as a whole, as the context may require.

*Operating Expense Presentation in the Consolidated Statements of Comprehensive (Loss) Income* 

The "Labor" line in the Consolidated Statements of Comprehensive (Loss) Income includes all employee payroll and benefits costs, including stock-based compensation and temporary labor costs. The "Production and distribution" and "Advertising, selling, general and administrative" lines do not include labor, depreciation, or amortization expense. Certain labor costs are included in restructuring expense, please see Note M for details.

**<u>Note B — Significant Accounting Policies</u>**

**Use of Estimates**

Preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. Actual results could differ materially from those estimates due to uncertainties. Such estimates include, but are not limited to, estimates related to revenue recognition; income taxes; goodwill and intangible assets impairment as well as pension accounting. On an ongoing basis, management reviews its estimates and assumptions based on currently available information. Changes in facts and circumstances could result in revised estimates and assumptions.

**Segment Reporting**

The Company operates three business segments: Revenue Solutions; Customer Care; and Fulfillment & Logistics Services. Our President is considered to be our chief operating decision maker (CODM). Our President reviews our operating results on an aggregate basis for purposes of allocating resources and evaluating financial performance by using the three financial measures: revenue, operating income and operating income plus depreciation and amortization (EBITDA).

**Cash Equivalents**

All highly liquid investments with an original maturity of 90 days or less at the time of purchase are considered to be cash equivalents. Cash equivalents are carried at cost, which approximates fair value.

**Restricted Cash**

In our normal business operation, we receive cash from our customers for certain customer program service funding. As these programs impose legal restrictions on the commingling of funds, we present this cash as restricted cash.

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

**Accounts Receivable and Allowance for Credit Losses**

Accounts receivables are recorded and carried at the original invoiced amount less an allowance for any potential uncollectible amounts. We make estimates of expected credit and collectability trends for the allowance for credit losses based upon our assessment of various factors, including historical experience, the age of the accounts receivable balances, credit quality of our customers, current and future economic conditions that may affect the Company's expectation of the collectability in determining the allowance for credit losses. Provisions for expected credit losses are recorded in the "Advertising, selling, general, and administrative" line of our Consolidated Statements of Comprehensive (Loss) Income. As of December 31, 2025 and 2024, our accounts receivables, net, were $27.8 million and $31.6 million, respectively.

The changes in the allowance for credit losses accounts consisted of the following:

---

| | | |
|:---|:---|:---|
| | **December 31,** | **December 31,** |
| **In thousands** | **2025** | **2024** |
| Balance at beginning of year | $50 | $474 |
| Net charges to expense | 27 | (86) |
| Amounts recovered against the allowance | (55) | (338) |
| Balance at end of year | $22 | $50 |

---

**Unbilled receivables**

For the majority of service contracts, the Company performs the services prior to billing the client, and this amount is captured as Unbilled accounts receivable, net on the consolidated balance sheet. Billing usually occurs in the month after the Company performs the services or in accordance with the specific contractual provisions.

**Geographic Concentrations**

Depending on the needs of our clients, our services are provided through an integrated approach through twelve facilities worldwide, of which six are located outside of the U.S.

The following table provides information about the operations in different geographic for the periods indicated:

---

| | | |
|:---|:---|:---|
| **Revenue**<sup>(1)</sup> | **Year Ended December 31,** | **Year Ended December 31,** |
| *In thousands* | **2025** | **2024** |
| United States | $144338 | $167787 |
| Other countries | 15232 | 17455 |
| Total revenue | $159570 | $185242 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(1)</sup> Geographic revenues are based on the location of the service being performed.

---

| | | |
|:---|:---|:---|
| **Property, plant and equipment, net**<sup>(2)</sup> | **December 31,** | **December 31,** |
| *In thousands* | **2025** | **2024** |
| United States | $7279 | $8374 |
| Other countries | 1107 | 582 |
| Net property, plant and equipment | $8386 | $8956 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(2)</sup> Property, plant and equipment are based on physical location.

**Credit Risk and Concentration**

Accounts receivables are typically unsecured and are derived from revenue earned from customers across different industries and countries. We perform ongoing credit evaluations of our customers and generally do not require collateral. In the event that the accounts receivable collection cycle deteriorates, our operating results and financial position could be adversely affected.

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

Our top customer represented 12.3% and 11.9% of total accounts receivable as of December 31, 2025 and 2024, respectively.

**Revenue by Top Customers**

The table below sets forth the percentage of our total revenue derived from our largest customers:

---

| | | |
|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2025** | **2024** |
| Top ten customers | 43.2% | 46.2% |
| Top twenty-five customers | 68.3% | 72.1% |

---

Our top customer represented 10.5% and 9.4% of total revenue for the years ended December 31, 2025 and 2024, respectively.

**Revenue Recognition**

We recognize revenue upon the transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to be entitled to receive in exchange for those products or services based on the relevant contract. We apply the following five-step revenue recognition model:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Identification of the contract, or contracts, with a customer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Identification of the performance obligations in the contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Determination of the transaction price;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Allocation of the transaction price to the performance obligations in the contract; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Recognition of revenue when (or as) we satisfy the performance obligation.

Certain client programs provide for adjustments to billings based upon whether we achieve certain performance criteria. In these circumstances, revenue is recognized when the foregoing conditions are met. We record revenue net of any taxes collected from customers and subsequently remitted to governmental authorities. Any payments received in advance of the performance of services or delivery of the product are recorded as deferred revenue until such time as the services are performed or the product is delivered. Costs incurred for search engine marketing solutions payable to the engine host and postage costs of mailings are billed to our clients and are not directly reflected in our revenue.

Revenue from agency and digital services, direct mail, logistics, fulfillment and contact center is recognized as the work is performed. Fees for these services are determined by the terms set forth in each contract. These fees are typically a set fixed price or rate by transaction occurrence, service provided, time spent, or product delivered.

**Fair Value of Financial Instruments**

Financial Accounting Standards Board ("FASB") Accounting Standard Codification ("ASC") 820, *Fair Value Measurements and Disclosures*, ("ASC 820") defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 also establishes a fair value hierarchy that prioritizes the inputs used in valuation methodologies into three levels:

**Level 1**Quoted prices in active markets for identical assets or liabilities.

**Level 2**Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

**Level 3**Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Because of their maturities and/or variable interest rates, certain financial instruments have fair values approximating their carrying values. These instruments include cash and cash equivalents and restricted cash, accounts receivable, trade payables, and debt. The fair value of the assets in our funded pension plan is disclosed in Note H, *Employee Benefit Plans*.

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

**Property, Plant and Equipment**

Property, plant and equipment, net consist of the following:

---

| | | |
|:---|:---|:---|
| | **December 31,** | **December 31,** |
| *In thousands* | **2025** | **2024** |
| Property, plant and equipment |  |  |
| &nbsp;&nbsp;Buildings and improvements | $5284 | $4550 |
| &nbsp;&nbsp;Equipment and furniture | 16156 | 20336 |
| &nbsp;&nbsp;Software | 19949 | 19799 |
| &nbsp;&nbsp;Software development and equipment installations in progress | 1613 | 1906 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross property, plant and equipment | 43002 | 46591 |
| &nbsp;&nbsp;Less accumulated depreciation | (34616) | (37635) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net property, plant and equipment | $8386 | $8956 |

---

Property, plant and equipment are stated at cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. The general ranges of estimated useful lives are:

---

| | |
|:---|:---|
| | Years |
| Buildings and improvements | 3 to 40 |
| Software | 2 to 5 |
| Equipment and furniture | 3 to 20  |

---

For the year ended December 31, 2025, the Company recorded $4.1 million of depreciation expense compared to $3.5 million for the year ended December 31, 2024.

Capitalized software costs for internally developed software and implementation of third-party software are amortized over a period of three to five years. On an ongoing basis, management reviews the valuation of these software costs to determine if there has been impairment to the carrying value of these assets and adjusts this value accordingly.

Long-lived assets such as property, plant and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The carrying amount of a long-lived asset group is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset group.

**Leases**

We determine if an arrangement is a lease at its inception. Operating and finance leases are included in the lease right-of-use ("ROU") assets and in the current portion and long-term portion of lease liabilities on our consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date of each lease based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit interest rate, we use our incremental borrowing rate based on the information available at commencement date of each lease to determine the present value of lease payments. The operating lease ROU assets also include any lease payments made and exclude lease incentives. Our lease terms may include options to extend or terminate the lease, which are included in the lease ROU assets when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components, which are generally accounted for separately. For certain real estate leases, we account for the lease and non-lease components as a single lease component.

**Goodwill** 

Goodwill is the amount by which the cost of the acquired net assets in a business combination exceeds the fair value of the identifiable net assets on the date of purchase. Goodwill is not amortized. Goodwill is reviewed for impairment at least annually during the fourth quarter, or more frequently if events occur indicating the potential for impairment.

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

The Company has three reporting segments, but the current goodwill balance is booked in the Revenue Solutions segment. During its goodwill impairment review, the Company may assess qualitative factors to determine whether it is more likely than not that the fair value of its reporting unit is less than its carrying amount, including goodwill. The qualitative factors include, but are not limited to, macroeconomic conditions, industry and market considerations, and the overall financial performance of the Company. If, after assessing the totality of these qualitative factors, the Company determines that it is not more likely than not that the fair value of its reporting unit is less than its carrying amount, then no additional assessment is deemed necessary. Otherwise, the Company performs a quantitative goodwill impairment test. The Company may also elect to bypass the qualitative assessment in a period and elect to proceed to perform the quantitative goodwill impairment test. There was no goodwill impairment in the year ended December 31, 2025. We booked an impairment charge of $1.6 million for goodwill in the year ended December 31, 2024, leaving a balance of $0.3 million.

**Intangible Assets**

Intangible assets consist of finite-lived intangible assets acquired through the Company's business combinations. Such amounts are initially recorded at fair value and subsequently amortized over their useful lives using the straight-line method, which reflects the pattern of benefit, and assumes no residual value.

Finite-lived intangibles are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require an intangible asset to be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by that intangible asset to its carrying amount. If the carrying amount of the intangible asset is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques, including discounted cash flow models, quoted market values, and third-party independent appraisals, as considered necessary.

The factors that drive the estimate of useful life are often uncertain and are reviewed on a periodic basis or when events occur that warrant review. Recoverability is measured by comparing the assets' book value to future net undiscounted cash flows that the assets are expected to generate to determine if a write-down to the recoverable amount is appropriate. If such assets are written down, an impairment will be recognized as the amount by which the book value of the asset group exceeds the recoverable amount. There was no impairment of our intangible assets during the year ended December 31, 2025. During the year ended December 31, 2024, revenue from its original customer base was lost. As a result, we booked an impairment loss of $1.5 million to our intangible assets. The net carrying balance of intangible assets as of December 31, 2024 was $0.6 million.

A summary of the Company's intangible asset as of December 31, 2025, is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *In thousands* | **Weighted Average Amortization Period** | **Gross Carrying Amount** | **Accumulated Amortization** | **Net Carrying <br>Amount** |
| Customer Relationships | 5 years | $2102 | $1732 | $370 |

---

Estimated future amortization expense related to intangible assets as of December 31, 2025, is as follows:

---

| | |
|:---|:---|
| *In thousands* |  |
| **Year Ending December 31,** | **Amount** |
| 2026 | $193 |
| 2027 | 177 |
| Total | $370 |

---

**Income Taxes**

Income tax expense includes U.S. and international income taxes accounted for under the asset and liability method. Certain income and expenses are not reported in tax returns and financial statements in the same year. Such temporary differences are reported as deferred tax. Deferred tax assets are reported net of valuation allowances where we have assessed that it is more likely than not that a tax benefit will not be realized.

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

**Earnings Per Share**

Basic earnings per common share are based upon the weighted-average number of common shares outstanding during the period. Diluted earnings per common share are based upon the weighted-average number of common shares and dilutive common stock equivalents outstanding during the period. Dilutive common stock equivalents are calculated based on the assumed exercise of stock options and vesting of unvested shares using the treasury stock method.

**Stock-Based Compensation**

All share-based awards are recognized as operating expense in the "Labor" line of the Consolidated Statements of Comprehensive (Loss) Income. Calculated expense is based on the fair values of the awards on the date of grant and is recognized over the requisite service period or performance period of the awards. We account for forfeitures as they occur.

**Reserve for Healthcare Benefit and Worker's Compensation Liability**

We are self-insured for the majority of our healthcare insurance. We pay actual medical claims up to a stop loss limit of $0.4 million. The reserve is estimated using current claims activity, historical experience, and claims incurred but not reported. We use loss development factors that consider both industry norms and company specific information. Our liability is recorded at the estimate of the ultimate cost of claims at the balance sheet date. On December 31, 2025 and 2024, our reserve for healthcare, and workers' compensation, net, was $1.1 million and were included in accrued liabilities. Periodic changes to the reserve for workers' compensation are recorded as increases or decreases to insurance expense, which is included in the "Advertising, selling, general and administrative" line of our Consolidated Statements of Comprehensive (Loss) Income. Periodic changes to the reserve for healthcare are recorded as increases or decreases to employee benefits expense, which is included in the "Labor" line of our Consolidated Statements of Comprehensive (Loss) Income.

**Foreign Currencies**

In most instances, the functional currencies of our foreign operations are the local currencies. Assets and liabilities recorded in foreign currencies are translated in U.S. dollars at the exchange rate on the balance sheet date. Revenue and expenses are translated at average rates of exchange prevailing during a given month. Adjustments resulting from this translation are charged or credited to other comprehensive income.

**Recent Accounting Pronouncements**

***<u>Recent Accounting Guidance Adopted in the Current Year</u>***

In December 2023, FASB issued ASU 2023-09, *Improvements to Income Tax Disclosures* ("ASU 2023-09"). ASU 2023-09 amends ASC 740, *Income Taxes* to expand income tax disclosures and requires that the Company disclose (i) the income tax rate reconciliation using both percentages and reporting currency amounts; (ii) specific categories within the income tax rate reconciliation; (iii) additional information for reconciling items that meet a quantitative threshold; (iv) the composition of state and local income taxes by jurisdiction; and (v) the amount of income taxes paid disaggregated by jurisdiction. The Company adopted ASU 2023-09 for the year ended December 31, 2025 on a prospective basis. See *Note I. Income Taxes* for additional information.

***<u>Recent Accounting Guidance Not Yet Adopted</u>***

In November 2024, FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses (Subtopic 220-40). The ASU requires the disaggregated disclosure of specific expense categories, including purchases of inventory, employee compensation, depreciation, and amortization, within relevant income statement captions. This ASU also requires disclosure of the total amount of selling expenses along with the definition of selling expenses. The ASU is effective for annual periods beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Adoption of this ASU can either be applied prospectively to consolidated financial statements issued for reporting periods after the effective date of this ASU or retrospectively to any or all prior periods presented in the consolidated financial statements. Early adoption is also permitted. This ASU will likely result in the required additional disclosures being included in our consolidated financial statements, once adopted. We are currently evaluating the provisions of this ASU.

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

In July 2025, the FASB issued ASU 2025-05, which amends ASC 326-20 to provide a practical expedient (for all entities) relating to the estimation of expected credit losses for current accounts receivable and current contract assets that arise from transactions accounted for under ASC 606. ASU 2025-05 is effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods, with early adoption permitted. The Company is currently evaluating the impact that this ASU will have on our consolidated financial statements.

In September 2025, the FASB issued ASU 2025-06 to target improvements to the Accounting for Internal-Use Software, which simplifies the capitalization guidance by removing all references to software development project stages and clarifies the criteria to begin capitalizing cost. The amendment is effective for annual and interim periods beginning after December 15, 2027, though early adoption is permitted. The Company is currently evaluating the impact of this amendment on its Consolidated Financial Statements.

No other new accounting pronouncements recently adopted or issued had or are expected to have a material impact on the consolidated financial statements.

**<u>Note C - Operating revenue from Contracts with Customers</u>**

Our contracts with customers state the terms of sale, including the description, quantity, and price of the products sold or service provided. Payment terms can vary by contract, but the period between invoicing and when payment is due is not significant. The Company's contracts with its customers generally do not include rights of return or a significant financing component.

<u>Disaggregation of Revenue</u>

We disaggregate revenue by three key revenue streams which are aligned with our business segments. The nature of the services offered by each key revenue stream is different. The following tables summarize revenue from contracts with customers for the years ended December 31, 2025, and 2024 by our three business segments:

---

| | | |
|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** |
| **In thousands** | **2025** | **2024** |
| Revenue Solutions | $35128 | $50332 |
| Customer Care | 50067 | 52918 |
| Fulfillment & Logistics Services | 74375 | 81992 |
| Total Revenue | $159570 | $185242 |

---

During the years ended December 31, 2025 and 2024, the Company recognized revenue of $3.4 million and $2.4 million from performance obligations satisfied at a point in time. The remainder of revenues recognized in 2025 and 2024 were recognized in an over time pattern. Our contracts with customers may consist of multiple performance obligations. If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price ("SSP") basis unless the transaction price is variable and meets the criteria to be allocated entirely to a performance obligation or to a distinct good or service that forms part of a single performance obligation. For most performance obligations, we determine SSP based on the price at which the performance obligation is sold separately. Although uncommon, if the SSP is not observable through past transactions, we estimate the SSP taking into account available information such as market conditions and internally approved pricing guidelines related to the performance obligations. Further discussion of other performance obligations in each of our major revenue streams follows:

*Revenue Solutions*

Our Revenue Solutions segment delivers strategic planning, data strategy, performance analytics, creative development and execution, technology enablement, marketing automation, and database management. The customer can choose other services to supplement and support their own in-house sales team. These services may range from leveraging data for lead generation, and outsourcing the design and testing of sale play, to full hiring and managing of a dedicated internal sales team.

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

Most revenue solutions performance obligations are satisfied over time and often offered on a project basis. We have concluded that the best approach to measure the progress toward completion of the project-based performance obligations is the input method, which is based on either the costs or labor hours incurred to date depending upon whether costs or labor hours more accurately depict the transfer of value to the customer.

Our database solutions are built around centralized marketing databases with services rendered to build custom databases, database hosting services, customer or target marketing lists and data processing services.

These performance obligations, including services rendered to build a custom database, database hosting services, customer or target marketing lists and data processing services, may be satisfied over time or at a point in time. We provide software as a service ("SaaS") solutions to host data for customers and have concluded that these solutions are stand-ready obligations to be recognized over time on a monthly basis. Our promise to provide certain data related services meets the over-time recognition criteria because our services do not create an asset with an alternative use, and we have an enforceable right to payment. For performance obligations recognized over time, we choose either the input (i.e., labor hour) or output method (i.e., number of customer records) to measure the progress toward completion depending on the nature of the services provided. Some of our other data-related services do not meet the over-time criteria and are therefore, recognized at a point-in-time, typically upon the delivery of a specific deliverable.

Our contracts may include outsourced print production work for our clients. These contracts may include a promise to purchase postage on behalf of our clients. In such cases, we have determined we are an agent, rather than principal on the postage purchase and therefore recognize net consideration as revenue.

*Customer Care*

We deliver customer care services in the United States, Asia and Europe to provide advanced solutions such as voice, SMS/chat, email, integrated voice response, web self-service, social cloud monitoring and analytics.

Performance obligations are stand-ready obligations and are satisfied over time. With regard to account management and SaaS, we use a time-elapsed output method to recognize revenue. For performance obligations where we charge customers a transaction-based fee, we use the output method based on transaction quantities. In most cases, our contracts provide us the right to invoice for services provided, therefore, we generally use the "as invoiced" practical expedient to recognize revenue associated with these performance obligations unless significant discounts are offered in a contract and prices for services do not represent their SSPs.

*Fulfillment & Logistics Services*

Our services, delivered internally and with our partners, include printing, lettershop, advanced mail optimization (including commingling services), logistics and transportation optimization, monitoring and tracking, to support traditional and specialized mailings. Our print and fulfillment centers in Massachusetts and Kansas provide custom kitting services, print on demand, product recalls, trade marketing fulfillment, e-commerce product fulfillment, sampling programs, and freight optimization, thereby allowing our customers to distribute literature and other marketing materials.

Performance obligations offered within this revenue stream may be satisfied either over time or at a point in time. Over time performance obligations utilize either the input or output method, depending on the nature of the service, to measure progress toward satisfying the performance obligation. For performance obligations where we charge customers a transaction-based fee, we utilize the output method based on the quantities fulfilled. Services provided through our fulfillment centers are typically priced at a per transaction basis and our contracts provide us the right to invoice for services provided and reflects the value to the customer of the services transferred to date. In most cases, we use the "as invoiced" practical expedient to recognize revenue associated with these performance obligations unless significant discounts are offered in a contract and prices for services do not represent their standalone selling prices. Our direct mail business contracts may have included a promise to purchase postage on behalf of our clients; in such cases, we have determined we are an agent, rather than principal and therefore recognize net consideration as revenue.

<u>Transaction Price Allocated to Future Performance Obligations</u>

We have elected to apply certain optional exemptions that limit the disclosure requirements over remaining performance obligations at period end to exclude performance obligations that have an original expected duration of one year or less, transactions using the "as invoiced" practical expedient, or when a performance obligation is a series and we have allocated

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

the variable consideration directly to the services performed. As of December 31, 2025 and 2024, we had no transaction prices allocated to unsatisfied or partially satisfied performance obligations requiring disclosure, upon application of the above exemptions.

<u>Contract Balances</u>

We record an unbilled accounts receivable when revenue is recognized prior to invoicing when we have an unconditional right to consideration (only the passage of time is required before payment of that consideration is due) and a contract asset when the right to payment is conditional upon our future performance such as delivery of an additional good or service (e.g., customer contract requires customer's final acceptance of custom database solution or the delivery of a final marketing strategy delivery presentation before customer payment is required). If invoicing occurs prior to revenue recognition, the unearned revenue is presented on our Consolidated Balance Sheets as a contract liability, referred to as deferred revenue.

The following table summarizes our contract balances as of December 31, 2025 and 2024:

---

| | | | |
|:---|:---|:---|:---|
| In thousands | December 31, 2025 | December 31, 2024 | January 1, 2024 |
| Unbilled Accounts Receivable | $6728 | $7852 | $7677 |
| Contract assets | 321 | 363 | 258 |
| Deferred revenue and customer advances | 813 | 1589 | 3195 |
| Deferred revenue included in other long-term liabilities |  | 182 | 294 |

---

Revenue recognized during the year ended December 31, 2025 from amounts included in deferred revenue as of December 31, 2024 was approximately $1.3 million. Revenue recognized during the year ended December 31, 2024 from amounts included in deferred revenue as of December 31, 2023 was approximately $3.0 million.

<u>Costs to Obtain and Fulfill a Contract</u>

We recognize an asset for the direct costs incurred to obtain and fulfill our contracts with customers to the extent that we expect to recover these costs and if the benefit is longer than one year. These costs are amortized to expense over the expected period of the benefit in a manner that is consistent with the transfer of the related goods or services to which the asset relates. We impair the asset when recoverability is not anticipated. We capitalized a portion of commission expense, implementation and other costs that represent the cost to obtain a contract. The remaining unamortized contract costs were $0.3 million and $0.2 million as of December 31, 2025 and 2024, respectively. They are included in other current assets and other assets on our consolidated balance sheets. For the years presented, no impairment was recognized.

**<u>Note D - Leases</u>**

We have operating and finance leases for corporate and business offices, service facilities, call centers and certain equipment. Leases with an initial term of 12 months or less are generally not recorded on the balance sheet, unless the arrangement includes an option to purchase the underlying asset, or an option to renew the arrangement, that we are reasonably certain to exercise (short-term leases). Our leases have remaining lease terms of one year to seven years, some of which may include options to extend the leases for up to an additional five years.

As of December 31, 2025, assets recorded under finance and operating leases were approximately $0.6 million and $19.2 million respectively, and accumulated amortization associated with finance leases was $0.3 million. As of December 31, 2024, assets recorded under finance and operating leases were approximately $0.8 million and $21.7 million respectively, and accumulated depreciation associated with finance leases was $0.1 million. Operating lease right of use assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. The discount rate used to determine the commencement date present value of lease payment is the interest rate implicit in the lease, or when that is not readily determinable, we utilized our incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment. Certain adjustments to the right-of-use asset may be required for items such as initial direct costs paid or incentives received.

There was no impairment of leases during the years ended December 31, 2025 and 2024.

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

The following tables present supplemental balance sheet information related to our financing and operating leases:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
| *In thousands* | **Operating Leases** | **Finance Leases** | **Total** | **Operating Leases** | **Finance Leases** | **Total** |
| Right-of-use Assets | $19247 | $607 | $19854 | $21678 | $782 | $22460 |
| Liabilities: |  |  |  |  |  |  |
| Short-term lease liabilities | 3376 | 167 | 3543 | 3578 | 158 | 3736 |
| Long-term lease liabilities | 18400 | 461 | 18861 | 20235 | 625 | 20860 |
| Total Lease Liabilities | $21776 | $628 | $22404 | $23813 | $783 | $24596 |

---

For the years ended December 31, 2025 and 2024, the components of lease expense were as follows:

---

| | | |
|:---|:---|:---|
| *In thousands* | **Year Ended December 31, 2025** | **Year Ended December 31, 2024** |
| Operating lease cost | $5108 | $5315 |
| Finance lease cost |  |  |
| &nbsp;&nbsp;Amortization of right-of-use assets | 174 | 102 |
| &nbsp;&nbsp;&nbsp;Interest on lease liabilities | 55 | 31 |
| Total Finance lease cost | 229 | 133 |
| Variable lease cost | 1484 | 1875 |
| Sublease income |  | (368) |
| Total lease cost, net | $6821 | $6955 |

---

Other information related to leases was as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *In thousands* | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** |
| **Supplemental Cash Flows Information** |  |  |  |  |
| Cash paid for amounts included in the measurement of lease liabilities: | Cash paid for amounts included in the measurement of lease liabilities: | Cash paid for amounts included in the measurement of lease liabilities: |  |  |
| &nbsp;&nbsp;Operating cash flows from operating leases | $| 8742 | $| 11170 |
| &nbsp;&nbsp;Operating cash flows from finance leases | 51 | 51 | 28 | 28 |
| &nbsp;&nbsp;Financing cash flows from finance leases | 159 | 159 | 124 | 124 |
| **Weighted Average Remaining Lease term *(in years)*** |  |  |  |  |
| Operating leases | 5.55 | 5.55 | 6.38 | 6.38 |
| Finance leases | 3.55 | 3.55 | 4.53 | 4.53 |
| **Weighted Average Discount Rate** |  |  |  |  |
| Operating leases | 5.89% | 5.89% | 5.74% | 5.74% |
| Finance leases | 7.77% | 7.77% | 7.77% | 7.77% |

---

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

The maturities of the Company's finance and operating lease liabilities as of December 31, 2025 are as follows:

---

| | | |
|:---|:---|:---|
| *In thousands* | **Operating Leases** | **Finance Leases** |
| Year Ending December 31, |  |  |
| 2026 | $4492 | $207 |
| 2027 | 4524 | 206 |
| 2028 | 4525 | 206 |
| 2029 | 4568 | 98 |
| 2030 | 4485 |  |
| 2031 & Beyond | 3116 |  |
| &nbsp;&nbsp;Total future minimum lease payments | 25710 | 717 |
| Less: Imputed interest | 3934 | 89 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total lease liabilities | $21776 | $628 |

---

As of December 31, 2025, we have no new operating leases that have not yet commenced.

**<u>Note E - Stock Repurchase Program</u>**

On May 2, 2023, the Board of Directors of Harte Hanks approved a share repurchase program to maximize shareholder value with authorization to repurchase $6.5 million of the Company's Common Stock. As of December 31, 2025, the share repurchase program authorization availability was $4.1 million. In the year ended December 31, 2025 and 2024, we didn't repurchase any shares of common stock.

**<u>Note F — Credit Facility</u>**

On December 21, 2021, the Company entered a three-year, $25.0 million asset-based revolving credit facility (the "Credit Facility") with Texas Capital Bank ("TCB"). The Company's obligations under the Credit Facility are guaranteed on a joint and several basis by the Company's material subsidiaries (the "Guarantors"). The Credit Facility is secured by substantially all the assets of the Company and the Guarantors pursuant to a Pledge and Security Agreement, dated as of December 21, 2021, among the Company, TCB and the other Guarantors party thereto (the "Security Agreement"). On December 29, 2023, the Company extended the maturity date of the Credit Facility by a period of six months to June 30, 2025. The extension was executed with substantially similar terms and conditions as the original Credit Facility. On June 24, 2025, the Company entered into a second amendment to the Credit Facility (the "Second Amendment") with TCB which extended the maturity date for the Credit Facility by a period of three years to June 30, 2028. The Second Amendment also includes an accordion feature that allows the Company to seek up to a $10.0 million increase in commitments under the credit line, subject to TCB approval.

The Credit Facility provides for loans up to the lesser of (a) $25.0 million or (b) the amount available under a "borrowing base" calculated primarily by reference to the Company's cash and cash equivalents and accounts receivables. The Credit Facility allows the Company to use up to $3.0 million on of its borrowing capacity to issue letters of credit.

The loans under the Credit Facility accrue interest at a varying rate equal to the Secured Overnight Financing Rate (SOFR) plus a margin of 2.25% per annum. The interest rate was 6.30% as of December 31, 2025. The outstanding amounts advanced under the Credit Facility are due and payable in full on June 30, 2028. As of December 31, 2025 and 2024, we had letters of credit outstanding in the amount of $0.7 million and $1.0 million, respectively. No amounts were drawn against these letters of credit as of December 31, 2025. These letters of credit exist to support insurance programs relating to workers' compensation, medical insurance, and reducing the cash security on leased property. The Company is charged a commitment fee of 0.25% per annum on the unused portion of the revolving credit facility.

The Credit Facility contains certain covenants restricting the Company's and its subsidiaries' ability to create, incur, assume or become liable for indebtedness; make certain investments; pay dividends or repurchase the Company's stock; create, incur or assume liens, consummate mergers or acquisitions, liquidate, dissolve, suspend or cease operations, or modify accounting or tax reporting methods (other than as required by GAAP)

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

As of December 31, 2025 and 2024, we had the ability to borrow an additional $24.3 million and $24.0 million, respectively, under the Credit Facility. As of December 31, 2025 and December 31, 2024 we had no borrowings outstanding under the Credit Facility.

**<u>Note G — Stock-Based Compensation</u>**

We maintain stock incentive plans for the benefit of certain officers, directors, and employees. Our stock incentive plans provide for the ability to issue stock options, cash stock appreciation rights, performance stock units, phantom stock units and cash performance stock units. We determined the fair value of the stock options using the Black-Scholes option pricing model and we determined the fair value of the performance stock units using Monte-Carlos simulation model.

Compensation expense for stock-based awards is based on the fair values of the awards on the date of grant and is recognized on a straight-line basis over the vesting period of the entire award in the "Labor" line of the Consolidated Statements of Comprehensive (Loss) Income. We recognized $0.3 million and $2.0 million of stock-based compensation expense for the years ended December 31, 2025 and 2024, respectively.

In 2020, we established our 2020 Equity Incentive Plan ("2020 Plan") which replaced the 2013 Equity Incentive Plan ("2013 Plan"). Any shares of common stock that remained eligible for issuance under the 2013 Plan are now instead eligible for issuance under the 2020 Plan. The "2013 Plan" as of December 31, 2025 and 2024, has 196,850 and 195,124 shares available for grant, respectively. In August 2020, we filed a Form S-8 to register up to an aggregate of 2,521,244 shares that may be issued under the 2020 Plan. The 2020 Plan provides for the issuance of stock-based awards to directors, employees and consultants. No additional stock-based awards will be granted under the 2013 Plan, but awards previously granted under the 2013 Plan will remain outstanding in accordance with their respective terms. As of December 31, 2025 and 2024, there were approximately 1.0 million and 1.1 million shares available, respectively, for grant under the 2020 Plan.

In August 2023, we established the 2023 Inducement Equity Incentive Plan ("2023 Plan"), pursuant to which the Company issued 240,000 shares of stock option awards. During 2025 and 2024, the Board approved the issuance of 69,702 and 148,200 incentive stock options, respectively.

**Stock Options**

Options granted under the 2023 Plan have an exercise price equal to the closing market price of our common stock on the date prior to the grant date. These options become exercisable in 33.3% increments on the first three anniversaries of their date of grant and expire on the tenth anniversary of their date of grant. Options to purchase 166,602 and 388,200 shares granted under 2023 Plan awards were outstanding as of December 31, 2025 and 2024, respectively, with exercise prices ranging from $4.55 to $7.74 and $5.59 to $76.80 per share, respectively.

Options granted under the 2020 Plan, 2013 Plan or as inducement awards have an exercise price equal to the market value of the common stock on the grant date. These options become exercisable in 25% increments on the first four anniversaries of their date of grant and expire on the 10th anniversary of their date of grant. There were no options outstanding under the 2020 plan as of December 31, 2025 and 2024.

There were no options outstanding under the 2013 plan as of December 31, 2025. Options to purchase 1,726 shares granted under 2013 Plan awards were outstanding as of December 31, 2024, with exercise prices ranging from $5.59 to $116.40 per share.

Options granted to officers after April 2015 vest in full upon a change in control if such options are not assumed or replaced by a publicly traded successor with an equivalent award (as defined in such officers' change in control severance agreements).

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

The following summarizes all stock option activity during the years ended December 31, 2025 and 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Number of Shares** | **Weighted-Average Exercise Price** | **Weighted- Average Remaining Contractual Term (Years)** | **Aggregate Intrinsic Value (In thousands)** |
| Options outstanding at December 31, 2023 | 246663 | $7.61 | 9.67 | $288 |
| Granted | 148200 | 7.59 | $— |  |
| Exercised |  |  |  |  |
| Unvested options forfeited |  |  |  |  |
| Vested options expired | (4937) | 81.35 |  |  |
| Options outstanding at December 31, 2024 | 389926 | $6.67 | 8.84 | $— |
| Granted | 69702 | $4.96 |  |  |
| Exercised |  |  |  |  |
| Unvested options forfeited | (211300) | 6.01 |  |  |
| Vested options expired | (81726) | 7.10 |  |  |
| Options outstanding at December 31, 2025 | 166602 | $6.58 | 8.57 | $— |
| Vested and expected to vest at December 31, 2025 | 166602 | $6.58 | 8.57 | $— |
| Exercisable at December 31, 2025 | 32299 | $7.74 | 8.08 | $— |

---

There were 69,702 and 148,200 options granted during 2025 and 2024, respectively. The weighted average grant date fair value of 2025 options granted is $3.24. The weighted average grant date fair value of 2024 options granted is $5.08. As of December 31, 2025 and 2024, there were $0.3 million and $1.0 million of unrecognized compensation cost related to unvested stock options, respectively.

**Restricted Stock Units**

Restricted stock units granted as inducement awards or under the 2020 Plan and 2013 Plan vest in three equal increments on the first three anniversaries of their date of grant. Restricted stock units settle in treasury stock or newly issued shares and are treated as equity. Outstanding restricted stock units granted to officers as inducement awards or under the 2013 Plan vest in full (to the extent not previously vested) upon a change in control if such unvested shares are not assumed or replaced by a publicly traded successor with an equivalent award (as such terms are defined in such officers' change-in-control severance agreements).

The following summarizes all restricted stock units' activity during 2025 and 2024:

---

| | | |
|:---|:---|:---|
| | **Number of Shares** | **Weighted-Average Grant Date Fair Value** |
| Unvested shares outstanding at December 31, 2023 | 243441 | $7.24 |
| Granted in 2024 | 98192 | $7.61 |
| Vested in 2024 | (187778) | 6.76 |
| Forfeited in 2024 | (32662) | 7.49 |
| Unvested shares outstanding at December 31, 2024 | 121193 | $8.21 |
| Granted in 2025 | 281444 | $4.03 |
| Vested in 2025 | (83691) | 8.43 |
| Forfeited in 2025 | (45834) | 6.00 |
| Unvested shares outstanding at December 31, 2025 | 273112 | $4.21 |

---

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

The fair value of each restricted stock unit is estimated on the date of grant as the closing market price of our common stock on the date prior to the grant. As of December 31, 2025, there was $0.9 million of total unrecognized compensation cost related to restricted stock units. This cost is expected to be recognized over a weighted average period of approximately 1.79 years.

**Performance Stock Units**

Performance stock units are a form of share-based award similar to unvested shares, except that the number of shares ultimately issued is based on our performance against specific performance goals over either a two-year or three-year period. At the end of the performance period, the number of shares of stock issued will be determined in accordance with the specified performance target(s) in a range between 0% and 100%. Performance stock units vest solely in common stock and are treated as equity. Upon a change in control, performance stock units granted to officers vest on a pro-rated basis (based on time elapsed from the grant) to the extent not previously settled if they are not assumed or replaced by a publicly traded successor with an equivalent award (as such terms are defined in such officers' change-in-control severance agreements). Performance Stock Units have been issued under the 2013 Plan, and the 2020 Plan as inducement awards.

The following summarizes all performance stock unit activity during 2025 and 2024 :

---

| | | |
|:---|:---|:---|
| | **Number of** <br>**Units** | **Weighted-<br>Average Grant<br>Date Fair Value** |
| Performance stock units outstanding as of December 31, 2023 | 43000 | $7.80 |
| Granted | 50000 | $7.53 |
| Settled |  |  |
| Forfeited | (6000) | 7.96 |
| Performance stock units outstanding as of December 31, 2024 | 87000 | $7.63 |
| Granted |  | $— |
| Settled |  |  |
| Forfeited | (37000) | 7.61 |
| Performance stock units outstanding as of December 31, 2025 | 50000 | $7.65 |

---

The fair value of each performance stock unit is estimated on the date of grant as the closing market price of our common stock on the date prior to the grant, minus the present value of anticipated dividend payments. Periodic compensation expense is based on the current estimate of future performance against specific performance goals over a two-year or three-year period and is adjusted up or down based on those estimates. As of December 31, 2025, the total unrecognized compensation cost related to performance stock units was $0.

**<u>Note H — Employee Benefit Plans</u>**

Prior to January 1, 1999, we provided a defined benefit pension plan for which most of our employees were eligible to participate (the "Qualified Pension Plan"). In conjunction with significant enhancements to our 401(k) plan, we elected to freeze benefits under the Qualified Pension Plan as of December 31, 1998.

In 1994, we adopted a non-qualified, unfunded, supplemental pension plan (the "Restoration Pension Plan") covering certain employees, which provides for incremental pension payments so that total pension payments equal those amounts that would have been payable from the principal pension plan were it not for limitations imposed by income tax regulation. The benefits under the Restoration Pension Plan were intended to provide benefits equivalent to our Qualified Pension Plan as if such plan had not been frozen. We elected to freeze benefits under the Restoration Pension Plan as of April 1, 2014.

At the end of 2020, the Board of Directors of the Company approved the division of the Qualified Pension Plan into two distinct plans, "Qualified Pension Plan I" and "Qualified Pension Plan II." The assets and liabilities of the Qualified Pension Plan that were attributable to certain participants in Qualified Pension Plan II were spun off and transferred into Qualified Pension Plan II effective as of the end of December 31, 2021, in accordance with Internal Revenue Code section 414 (I) and ERISA Section 4044.

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

In January 2023, the Board of Directors of the Company approved the termination of the Qualified Pension Plan I. The termination process took approximately eighteen months and was completed in June 2024, which resulted in the transfer of our obligations pursuant to this pension plan to an insurance company. We made a cash contribution of $6.7 million in the year ended December 31, 2024 to terminate the Qualified Pension Plan I. This contribution, together with the liquidation of pension assets was used to purchase annuities from an insurance company, which settled the liabilities for Pension Plan I participants as well as to submit the final filings to the Pension Benefit Guaranty Corporation. We recognized $37.5 million of pension termination charges which were reflected in our Consolidated Statements of Comprehensive (Loss) Income for the year ended December 31, 2024.

The Qualified Pension Plans II, together with the Restoration Pension Plan are collectively referred to as the "defined benefit pension plans". The overfunded or underfunded status of our defined benefit pension plans is recorded as an asset or liability on our consolidated balance sheets. The funded status is measured as the difference between the fair value of plan assets and the projected benefit obligation. Periodic changes in the funded status are recognized through other comprehensive income in the Consolidated Statements of Comprehensive (Loss) Income. We currently measure the funded status of our defined benefit plans as of December 31, the date of our year-end Consolidated Balance Sheets.

The status of the defined benefit pension plans at year-end was as follows:

---

| | | |
|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** |
| *In thousands* | **2025** | **2024** |
| **Change in benefit obligation** |  |  |
| Benefit obligation at beginning of year | $54537 | $141427 |
| Interest cost | 2957 | 5032 |
| Settlements |  | (77891) |
| Benefits paid | (4102) | (7361) |
| Actuarial loss (gain) | 1963 | (6670) |
| Benefit obligation at end of year | $55355 | $54537 |
| **Change in plan assets** |  |  |
| Fair value of plan assets at beginning of year | $30119 | $103696 |
| Actual return on plan assets | 2820 | 1790 |
| Settlements |  | (77891) |
| Contributions | 3546 | 9885 |
| Benefits paid | (4102) | (7361) |
| Fair value of plan assets at end of year | $32383 | $30119 |
| Funded status at end of year | $(22972) | $(24418) |

---

The following amounts have been recognized in the Consolidated Balance Sheets as of December 31:

---

| | | |
|:---|:---|:---|
| *In thousands* | **2025** | **2024** |
| Current pension liabilities within accrued expenses | $1871 | $1870 |
| Long term pension liabilities - Qualified plans | 4106 | 5445 |
| Long term pension liabilities - Nonqualified plan | 16995 | 17103 |
| Total pension liabilities | $22972 | $24418 |

---

The following amounts have been recognized in accumulated other comprehensive losses, net of tax, as of December 31:

---

| | | |
|:---|:---|:---|
| *In thousands* | **2025** | **2024** |
| Accumulated other comprehensive losses, net of tax | $11197 | $10183 |

---

Based on current estimates, we will be required to make $1.7 million in cash contributions to our Qualified Pension Plan II in 2026.

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

We are not required to make and do not intend to make any contributions to our Restoration Pension Plan in 2026 other than to the extent needed to cover benefit payments. We made benefit payments under this supplemental plan of $1.9 million in 2025.

The following information is presented for pension plans with an accumulated benefit obligation in excess of plan assets:

---

| | | |
|:---|:---|:---|
| *In thousands* | **2025** | **2024** |
| Projected benefit obligation | $55355 | $54537 |
| Accumulated benefit obligation | $55355 | $54537 |
| Fair value of plan assets | $32383 | $30119 |

---

The Restoration Pension Plan had an accumulated benefit obligation of $18.9 million and $19.0 million as of December 31, 2025, and 2024, respectively.

The following table presents the components of net periodic benefit cost and other amounts recognized in other comprehensive income in the Consolidated Statements of Comprehensive (Loss) Income for Qualified Pension Plan II and Restoration Pension Plans:

---

| | | |
|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** |
| *In thousands* | **2025** | **2024** |
| **Net Periodic Benefit Cost** |  |  |
| Interest cost | $2957 | $5032 |
| Expected return on plan assets | (2147) | (3633) |
| Recognized actuarial loss | 394 | 1557 |
| Net periodic benefit cost | 1204 | 2956 |
| **Amounts Recognized in Other Comprehensive (Loss) income** |  |  |
| Adjustment to pension liabilities | 1014 | (32273) |
| Net cost recognized in net periodic benefit cost and other comprehensive income | $2218 | $(29317) |

---

The components of net periodic benefit costs other than the service cost component are included in Other expenses, net in our Consolidated Statement of Comprehensive (Loss) Income. The estimated net loss for the defined benefit pension plans that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost in 2026 is $0.4 million. The period over which the net loss from the Qualified Pension Plan is amortized into net periodic benefit cost was the average future lifetime of all participants (approximately 23.0 years for Qualified Pension Plan II). The Qualified Pension Plan II is frozen and almost all of the plan's participants are not active employees.

The weighted-average assumptions used for measurement of the defined pension plans were as follows:

---

| | | |
|:---|:---|:---|
| **Weighted-average assumptions used to determine net periodic benefit cost** | **Year Ended December 31,** | **Year Ended December 31,** |
| **Weighted-average assumptions used to determine net periodic benefit cost** | **2025** | **2024** |
| Discount rate |  |  |
| Qualified Plan I | n/a | 5.64% |
| Qualified Plan II | 5.63% | 4.99% |
| Restoration Plan | 5.54% | 4.92% |
| Expected return on plan assets |  |  |
| Qualified Plan I | n/a | 4.85% |
| Qualified Plan II | 7.15% | 6.95% |
| Restoration Plan | n/a | n/a |

---

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

---

| | | |
|:---|:---|:---|
| **Weighted-average assumptions used to determine benefit obligations** | **December 31,** | **December 31,** |
| **Weighted-average assumptions used to determine benefit obligations** | **2025** | **2024** |
| Discount rate |  |  |
| Qualified Plan I | n/a | n/a |
| Qualified Plan II | 5.37% | 5.63% |
| Restoration Plan | 5.18% | 5.64% |

---

The discount rate assumptions are based on current yields of investment-grade corporate long-term bonds. The expected long-term return on plan assets is based on the expected future average annual return for each major asset class within the plan's portfolio (which is principally comprised of equity investments) over a long-term horizon. In determining the expected long-term rate of return on plan assets, we evaluated input from our investment consultants, actuaries, and investment management firms, including their review of asset class return expectations, as well as long-term historical asset class returns. Projected returns by such consultants and economists are based on broad equity and bond indices. Additionally, we considered our historical 15-year compounded returns, which were in excess of the forward-looking return expectations.

The funded pension plan assets as of December 31, 2025 and 2024, by asset category, were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *In thousands* | **2025** | **%** | **2024** | **%** |
| Equity securities | $31599 | 98% | $23658 | 79% |
| Debt securities |  | —% | 5252 | 17% |
| Other | 784 | 2% | 1209 | 4% |
| Total plan assets | $32383 | 100% | $30119 | 100% |

---

The fair values presented have been prepared using values and information available as of December 31, 2025 and 2024.

The following tables present the fair value measurements of the assets in our funded pension plan:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** |
| *In thousands* | **Total** | **Quoted Prices in Active Markets <br>for Identical Assets<br>(Level 1)** | **Significant Other Observable <br>Inputs<br>(Level 2)** | **Significant Unobservable Inputs<br>(Level 3)** |
| Equity securities | $31599 | $31572 | $— | $27 |
| Debt securities |  |  |  |  |
| Total investments, excluding investments valued at NAV | 31599 | 31572 |  | 27 |
| Investments valued at NAV<sup>(1)</sup> | 784 |  |  |  |
| &nbsp;&nbsp;Total plan assets | $32383 | $31572 | $— | $27 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
| *In thousands* | **Total** | **Quoted Prices in Active Markets <br>for Identical Assets<br>(Level 1)** | **Significant Other Observable <br>Inputs<br>(Level 2)** | **Significant Unobservable Inputs<br>(Level 3)** |
| Equity securities | $23658 | $23658 | $— | $— |
| Debt securities | 5252 | 3669 | 1583 |  |
| Total investments, excluding investments valued at NAV | 28910 | 27327 | 1583 |  |
| Investments valued at NAV<sup>(1)</sup> | 1209 |  |  |  |
| &nbsp;&nbsp;Total plan assets | $30119 | $27327 | $1583 | $— |

---

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

<sup>(1)</sup> Investment valued at net asset value ("NAV") are comprised of cash, cash equivalents, and short-term investments used to provide liquidity for the payment of benefits and other purposes. The commingled funds are valued at NAV based on the market value of the underlying investments, which are primarily government issued securities.

The investment policy for the Qualified Pension Plan II focuses on the preservation and enhancement of the corpus of the plan's assets through prudent asset allocation, quarterly monitoring and evaluation of investment results, and periodic meetings with investment managers.

The investment policy's goals and objectives are to meet or exceed the representative indices over a full market cycle (3-5 years). The policy establishes the following investment mix, which is intended to subject the principal to an acceptable level of volatility while still meeting the desired return objectives:

---

| | | | |
|:---|:---|:---|:---|
| Qualified Pension Plan II | Target | Acceptable Range | Benchmark Index |
| Equities | 77% | 62% - 87% |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. Large Cap | 28% | 18% - 38% | Russell 1000 TR |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. Mid Cap | 18% | 13% - 23% | Russell Mid Cap Index TR |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. Small Cap | 9% | 4% - 14% | Russell 2000 TR |
| International Equity |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Developed | 16% | 11% - 21% | MSCI EAFE Net TR USD Index |
| &nbsp;&nbsp;&nbsp;&nbsp;Emerging Markets | 6% | 0% - 9% | MSCI Emerging Net Total Return |
| Fixed Income | 21% | 11% - 31% |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment Grade | 21% | 11% - 31% | BBG BARC US Aggregate Bond Index |
| Cash Equivalent | 2% | 0% - 40% | ICE BofA US 3-Month Treasury Bill Index TR |

---

The funded pension plans provide for investment in various investment types. Investments, in general, are exposed to various risks, such as interest rate, credit, and overall market volatility risk. Due to the level of risk associated with investments, it is reasonably possible that changes in the value of investments will occur in the near term and may impact the funded status of these plans. To address the issue of risk, the investment policy places high priority on the preservation of the value of capital (in real terms) over a market cycle. Investments are made in companies with a minimum five-year operating history and sufficient trading volume to facilitate, under most market conditions, prompt sales without severe market effects. Investments are diversified across numerous market sectors and individual companies. Reasonable concentration in any one issue, issuer, industry, or geographic area is allowed if the potential reward is worth the risk.

Investment managers are evaluated by the performance of the representative indices over a full market cycle for each class of assets. The Pension Plan Committee reviews, on a quarterly basis, the investment portfolio of each manager, which includes rates of return, performance comparisons with the most appropriate indices, and comparisons of each manager's performance with a universe of other portfolio managers that employ the same investment style.

The expected future benefit payments for Qualified Pension Plan II and Restoration Pension Plan over the next ten years as of December 31, 2025, are as follows:

---

| | |
|:---|:---|
| *In thousands* |  |
| 2026 | $4306 |
| 2027 | 4396 |
| 2028 | 4479 |
| 2029 | 4637 |
| 2030 | 4735 |
| 2031 - 2035 | 22679 |
| Total | $45232 |

---

The Company also has two pension plans in its foreign jurisdictions, the associated pension liabilities are not material.

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

We also sponsored a 401(k)-retirement plan in which we match a portion of employees' voluntary before-tax contributions prior. Under this plan, both employee and matching contributions vest immediately. We incurred $0.9 million and $1.0 million in 401k match expenses in 2025 and 2024, respectively.

**<u>Note I — Income Taxes</u>**

The components of income tax provision (benefit) are as follows:

---

| | | |
|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** |
| *In thousands* | **2025** | **2024** |
| **Current** |  |  |
| Federal | $— | $— |
| State and local | 288 | 428 |
| Foreign | 443 | 1214 |
| Total current | $731 | $1642 |
| **Deferred** |  |  |
| Federal | $(254) | $(7729) |
| State and local | (703) | (1446) |
| Foreign | 29 | (104) |
| Total deferred | $(928) | $(9279) |
| Total income tax benefit | $(197) | $(7637) |

---

The U.S. and foreign components of loss before income taxes were as follows:

---

| | | |
|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** |
| *In thousands* | **2025** | **2024** |
| United States | $(4629) | $(43860) |
| Foreign | 3621 | 5926 |
| Total loss before income taxes | $(1008) | $(37934) |

---

The provision (benefit) for income taxes is based on the various rates set by federal, foreign and local authorities and is affected by permanent and temporary differences between financial accounting and tax reporting requirements. The principal reasons for the difference between the statutory rate and the annual effective rate for 2025 were the state taxes, change in valuation allowance, federal and foreign income tax credits and the shortfall expense related to vested restricted stock.

As further described in *Note B - Significant Accounting Policies*, the Company has elected to prospectively adopt the guidance in ASC 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures or ASU 2023-09. The following table is a reconciliation of the U.S. federal statutory rate of 21% to the Company's effective tax rate for the year ended December 31, 2025 in accordance with the guidance in ASU 2023-09.

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

---

| | | |
|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** |
| *In thousands, except percentages* | **2025** | **2025** |
| Loss before income taxes | (1008) |  |
| **Provision for income taxes at U.S. federal statutory rate** | (212) | 21.0% |
| **State and local income taxes, net of federal benefit** <sup>(1)</sup> | (481) | 47.6% |
| **Foreign tax effects** |  |  |
| Belgium |  |  |
| Statutory Tax Rate Difference | 48 | (4.7)% |
| Other | (20) | 2.0% |
| France |  |  |
| Statutory Tax Rate Difference | 17 | (1.7)% |
| Differences with statutory accounting policies | (124) | 12.3% |
| Valuation Allowance | 41 | (4.1)% |
| Netherlands |  |  |
| Statutory Tax Rate Difference | (4) | 0.4% |
| Valuation Allowance | 22 | (2.1)% |
| Philippines |  |  |
| Statutory Tax Rate Difference | (258) | 25.5% |
| Other | 1 | (0.1)% |
| Other foreign Jurisdictions | (11) | 1.1% |
| **Effect of cross-border tax laws:** |  |  |
| Global Intangible Low-Taxed Income | 569 | (56.5)% |
| Section 78 Gross-up | 95 | (9.4)% |
| **Tax Credits** | (50) | 5.0% |
| **Changes in valuation allowances** | 14 | (1.4)% |
| **Non-taxable or non-deductible items:** |  |  |
| Equity compensation | 132 | (13.1)% |
| Meals and Entertainment | 15 | (1.5)% |
| Work Opportunity Tax Credit | 11 | (1.1)% |
| Other | 3 | (0.3)% |
| **Other Reconciling Items** | (5) | 0.5% |
| **Effective income tax rate** | (197) | 19.6% |
| (a) TX made up the majority (greater than 50%) of the tax effect in this category. | (a) TX made up the majority (greater than 50%) of the tax effect in this category. | (a) TX made up the majority (greater than 50%) of the tax effect in this category. |

---

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

The following table is a reconciliation of the U.S. federal statutory rate of 21% to the Company's effective rate for the years ended December 31, 2024 in accordance with the guidance prior to the adoption of ASU 2023-09:

---

| | |
|:---|:---|
| *In thousands* | **Year Ended December 31, 2024** |
| Computed expected income tax benefit | $(7966) |
| Net effect of state income taxes | (1885) |
| Foreign subsidiary dividend inclusions | 666 |
| Foreign tax rate differential | 42 |
| Change in valuation allowance | 991 |
| Return to Provision | 599 |
| Change in Rate | (125) |
| Credits | (346) |
| Adjustments to State Attributes | 565 |
| Other Adjustments, net | (178) |
| Income tax benefit | $(7637) |

---

The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and liabilities were as follows:

---

| | | |
|:---|:---|:---|
| | **December 31,** | **December 31,** |
| *In thousands* | **2025** | **2024** |
| **Deferred tax assets** |  |  |
| Accrued expenses not deductible until paid | $58 | $173 |
| Lease liability | 5713 | 6201 |
| Investment in foreign subsidiaries, outside basis difference | 1969 | 1930 |
| Interest Expense limitations | 1495 | 1167 |
| Other, net | 1625 | 1979 |
| Foreign net operating loss carryforwards | 1535 | 1325 |
| State net operating loss carryforwards | 7845 | 7709 |
| Federal net operating loss carryforwards | 9692 | 9585 |
| Foreign tax credit carryforwards | 3740 | 3726 |
| General Business Credit Carryovers | 641 | 591 |
| Total gross deferred tax assets | $34313 | $34386 |
| Less valuation allowances | (7757) | (8082) |
| Net deferred tax assets | $26556 | $26304 |

---

---

| | | |
|:---|:---|:---|
| **Deferred tax liabilities** | | |
| Property, plant and equipment | $(890) | $(1143) |
| Deferred compensation and retirement plan | (3706) | (3394) |
| Right-of-use asset | (5041) | (5624) |
| Other, net | (879) | (966) |
| Total gross deferred tax liabilities | $(10516) | $(11127) |
| Net deferred tax assets | $16040 | $15177 |

---

During the year ended December 31, 2025, the Company paid $455 thousand in state income taxes, net of refunds, and $1.3 million in foreign taxes.

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

The amount of cash income taxes paid by the Company were as follows:

---

| | |
|:---|:---|
| | **Year ended December 31, 2025** |
| *In thousands* | **Year ended December 31, 2025** |
| **State and Local** |  |
| &nbsp;&nbsp;Florida | $90 |
| &nbsp;&nbsp;Texas | 215 |
| &nbsp;&nbsp;Other | 150 |
| **Foreign** |  |
| &nbsp;&nbsp;United Kingdom | 538 |
| &nbsp;&nbsp;Philippines | 412 |
| &nbsp;&nbsp;Romania | 82 |
| &nbsp;&nbsp;Belgium | 292 |
| Income taxes, net of amounts refunded | $1779 |

---

In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. After considering the weight of available evidence, both positive and negative, the Company concluded that it is more-likely-than-not that it will realize the majority of its U.S. deferred tax assets. Certain foreign tax credits as well as certain state net operating loss carryovers will continue to have a valuation allowance until there is substantial evidence that enough future taxable income exists at a more likely than not level in order to utilize those deferred tax assets. The valuation allowance for deferred tax assets was $7.8 million and $8.1 million as of December 31, 2025 and 2024, respectively. The change in the valuation allowance was $0.3 million for the year ended December 31, 2025.

We or one of our subsidiaries file income tax returns in the U.S. federal, U.S. state, and foreign jurisdictions. For U.S. state, federal and foreign returns, we are no longer subject to tax examinations for years prior to 2020.

There is no balance of unrecognized tax benefits as of December 31, 2025 and 2024. Any adjustments to this liability as a result of the finalization of audits or potential settlements would not be material.

We have elected to classify any interest and penalties related to income taxes within income tax expense in our Consolidated Statements of Comprehensive (Loss) Income. There are no interest and penalties related to income taxes for the year ended December 31, 2025 and 2024.

For U.S. tax return purposes, net operating losses and tax credits are normally available to be carried forward to future years, subject to limitations as discussed below.

As of December 31, 2025, the Company has federal NOL carryforwards of $46.2 million. The entire amount was generated in 2024 and will be carried over indefinitely, but will generally limit the net operating deduction to the lesser of the net operating loss carryforward or 80% of a corporation's taxable income (subject to Section 382 of the Internal Revenue Code of 1986, as amended).

The Company also has state NOL carryforward of $158.1 million and foreign NOL carryforwards of $5.0 million. The state NOL carryforwards will begin to expire in 2029, The federal foreign tax carryforward credits of $3.7 million will expire on various dates from 2027 to 2036. General business credit carryforwards of $0.6 million will begin to expire on various dates from 2037 to 2046. Under Section 163(j) of the Internal Revenue Code, the deduction for business interest expense is limited to the sum of business interest income, 30% of adjusted taxable income, and floor plan financing interest. Any business interest expense that is disallowed due to the limitation can be carried forward indefinitely to future years. As of December 31, 2025 and 2024, the Company has disallowed business interest expense carryforwards of $5.7 million and $3.8 million, respectively.

Deferred income taxes have not been provided on the undistributed earnings of our foreign subsidiaries as these earnings have been, and under current plans will continue to be, permanently reinvested in these subsidiaries. It is not practicable to estimate the amount of additional taxes which may be payable upon the distribution of these earnings. However, because of the provisions in the Tax Reform Act, the tax cost of repatriation is immaterial and limited to foreign withholding taxes, currency translation and state taxes.

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

On July 4, 2025, the "One Big Beautiful Bill Act" (the "Act") became law. The legislation includes several changes to federal tax law that generally allow more favorable deductibility of certain business expenses beginning in 2025, including the reinstatement of 100% of bonus depreciation, and more favorable rules for determining the limitation on business interest expense. The Act also includes certain changes to the US taxation of foreign activity, including changes to foreign tax credits, global intangible low-taxed income, and base erosion and anti-abuse tax, amongst other changes. These changes are generally effective for tax years beginning after December 31, 2025, and therefore do not impact the current year's tax provision. While these changes are not yet effective, the Company has begun assessing the potential impact on its future effective tax rate, deferred tax assets and liabilities, and global tax planning strategies. Based on preliminary modeling, the Company anticipates that the elimination of the Net Deemed Tangible Income Return (NDTIR) may slightly increase future U.S. tax liability on foreign earnings, partially offset by the increased foreign tax credit. The Company will continue to monitor regulatory guidance and assess the impact of these changes in future reporting periods. No adjustments to current or deferred taxes have been recorded in the second half of 2025 related to the Act.

**<u>Note J — Earnings Per Share</u>**

Basic income (loss) per share ("EPS") is calculated using the income available to common stockholders, divided by the weighted average number of shares outstanding during the period. Diluted earnings per share is calculated using income available to common stockholders divided by the weighted average number of shares of common stock including both shares outstanding and shares potentially issuable in connection with restricted common stock awards and stock options under our stock incentive plans.

Reconciliations of basic and diluted EPS are as follows:

---

| | | |
|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** |
| *In thousands, except per share amounts* | **2025** | **2024** |
| Numerator: |  |  |
| &nbsp;&nbsp;&nbsp;Net loss | $(811) | $(30297) |
| Denominator: |  |  |
| Basic EPS denominator: | 7393 | 7293 |
| Diluted EPS denominator | 7393 | 7293 |
| Basic (loss) income per common share | $(0.11) | $(4.15) |
| Diluted (loss) income per common share | $(0.11) | $(4.15) |

---

For the years ended December 31, 2025 and 2024, respectively, the following shares have been excluded from the calculation of shares used in the diluted EPS calculation: 207,406 and 349,129 shares of anti-dilutive market price options; 127,506 and 20,685 anti-dilutive unvested shares.

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

**<u>Note K — Comprehensive Income (Loss)</u>**

Comprehensive income (loss) for a period encompasses net income (loss) and all other changes in equity other than from transactions with our stockholders. Changes in accumulated other comprehensive loss by component were as follows:

---

| | | | |
|:---|:---|:---|:---|
| *In thousands* | **Defined Benefit** <br>**Pension Items** | **Foreign** <br>**Currency Items** | **Total** |
| Balance at December 31, 2023 | $(42456) | $(1634) | $(44090) |
| &nbsp;&nbsp;Other comprehensive loss, net of tax, before reclassifications |  | (1780) | (1780) |
| &nbsp;&nbsp;Amounts reclassified from accumulated other comprehensive loss, net of tax | 32273 |  | 32273 |
| Net current period other comprehensive income (loss), net of tax | 32273 | (1780) | 30493 |
| Balance at December 31, 2024 | $(10183) | $(3414) | $(13597) |
| &nbsp;&nbsp;Other comprehensive loss, net of tax, before reclassifications |  | (369) | (369) |
| &nbsp;&nbsp;Amounts reclassified from accumulated other comprehensive loss, net of tax | (1014) |  | (1014) |
| Net current period other comprehensive loss, net of tax | (1014) | (369) | (1383) |
| Balance at December 31, 2025 | $(11197) | $(3783) | $(14980) |

---

Reclassification amounts related to the defined pension plans are included in the computation of net period pension benefit cost (see *Note H, Employee Benefit Plan*s).

**<u>Note L — Litigation and Contingencies</u>**

In the normal course of our business, we are obligated under some agreements to indemnify our clients as a result of third-party claims that we infringe on the proprietary rights of third parties, or third party claims relating to other *ad hoc* contract obligations. The terms and duration of these commitments vary and, in some cases, may be indefinite, and some of these contractual commitments do not limit the maximum amount of future payments we could become obligated to make thereunder; accordingly, our actual aggregate maximum exposure related to these types of commitments is not reasonably estimable. Historically, we have not been obligated to make significant payments for obligations of this nature, and no liabilities have been recorded for these obligations in our consolidated financial statements.

We are also subject to various claims and legal proceedings in the ordinary course of conducting our business and, from time to time, we may become involved in additional claims and lawsuits incidental to our business. We routinely assess the likelihood of adverse judgments or outcomes to these matters, as well as ranges of probable losses; to the extent losses are reasonably estimable. Accruals are recorded for these matters to the extent that management concludes a loss is probable and the financial impact, should an adverse outcome occur, is reasonably estimable.

In the opinion of management, appropriate and adequate accruals for legal matters have been made, and management believes that the probability of a material loss beyond the amounts accrued is remote. Nevertheless, we cannot predict the impact of future developments affecting our pending or future claims and lawsuits. We expense legal costs as incurred, and all recorded legal liabilities are adjusted as required as better information becomes available to us. The factors we consider when recording an accrual for contingencies include, among others: (i) the opinions and views of our general counsel and outside legal counsel; (ii) our previous experience with similar claims; and (iii) the decision of our management as to how we intend to respond to the complaints.

**<u>Note M — Restructuring Activities</u>**

During the second half of 2023, we engaged a consulting firm to help review and analyze the structure and operations of the Company. The program named "Project Elevate" involved the optimization and rationalization of our business resources as well as the partial reinvestment of savings into the Company's sales and marketing team, technology, and strategy. Reorganization cost reductions from Project Elevate during 2024 through 2025 are estimated to be $16.0 million. We incurred total restructuring charges of $9.9 million through the end of 2025. For the years ended December 31, 2025 and 2024, we recorded restructuring charges of $1.8 million and $2.4 million, respectively. This program has resulted in ongoing cost optimization and rationalization initiatives across the organization.

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

The following table summarizes the restructuring charges which are recorded in "Restructuring Expense" in the Consolidated Statement of Comprehensive Income.

---

| | | |
|:---|:---|:---|
| *In thousands* | **Year Ended December 31, 2025** | **Year Ended December 31, 2024** |
| Consulting and employee expense | $239 | $803 |
| Severance | 1255 | 1112 |
| Facility, asset impairment and other expense | 288 | 487 |
| Total | $1782 | $2402 |

---

The following table summarizes the changes in liabilities related to restructuring activities:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** |
| *In thousands* | Consulting and employee expense | &nbsp;&nbsp;Severance | Facility, asset impairment and other expense | &nbsp;&nbsp;Total |
| Beginning balance: | $— | $110 | $— | $110 |
| Additions | 239 | 1255 | 288 | 1782 |
| Payments and adjustment | (239) | (1037) | (288) | (1564) |
| Ending balance: | $— | $328 | $— | $328 |

---

**<u>Note N — Related Party Transactions</u>**

In the year ended December 31, 2025, the Company recorded $0.8 million related to net recovery short-swing profit from one of the Company's shareholders under Section 16(b) of the Securities Exchange Act of 1934, as amended. The Company recognized the $1.1 million of gross related party proceeds, net of $0.3 million of tax impact, as an increase to additional paid-in capital and as cash provided by financing activities in the condensed consolidated statement of cash flows for the year ended December 31, 2025.

**<u>Note O — Segment Reporting</u>**

Harte Hanks is a leading global customer experience company. Based on the types of products and services we provide, we have organized our operations into three business segments: Revenue Solutions formerly known as Marketing Services, Customer Care, and Fulfillment and Logistics.

There are three principal financial measures reported to our President (the chief operating decision maker) for use in assessing segment performance and allocating resources. Those measures are revenue, operating income and operating income plus depreciation and amortization ("EBITDA"), which is a non-GAAP measure. Operating income for segment reporting, disclosed below, is revenues less operating costs and allocated corporate expenses. Segment operating expenses are generally directly attributed to our segments and include allocations of certain centrally incurred costs such as employee benefits, occupancy, information systems, accounting services, internal legal staff, and human resources administration. These costs are allocated based on actual usage or other appropriate methods. Unallocated corporate expenses are corporate overhead expenses not attributable to the operating groups. Interest income and expense are not allocated to the segments. The Company does not allocate assets to our reportable segments for internal reporting purposes, nor does our President evaluate operating segments using discrete asset information. The accounting policies of the segments are consistent with those described in Note B, Significant Accounting Policies.

SEC Regulation S-K 229.10(e)1(ii)(A) defines EBITDA as earnings before interest, taxes, depreciation and amortization. EBITDA is presented to provide additional information to investors about the Company's operations on a basis consistent with the measures that the Company uses to manage its operations and evaluate its performance. Management also uses this measurement to evaluate working capital requirements. EBITDA should not be considered in isolation or as a substitute for operating income and net income prepared in accordance with GAAP or as a measure of the Company's profitability.

------

<u>[**Table of Contents**](#i5f306ec409da4aae92a556d5de29c33f_7)</u> 

The following table presents financial information by segment year ended December 31, 2025:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In thousands)* | **Revenue Solutions** | **Customer Care** | **Fulfillment & Logistics** | **Restructuring** | **Unallocated Corporate** | **Total** |
| Operating revenue | $35128 | $50067 | $74375 | $— | $— | $159570 |
| Segment labor expense | 18058 | 32567 | 19445 |  | 10753 | 80823 |
| Other segment operating expense | 8868 | 8218 | 45268 |  | 9753 | 72107 |
| Restructuring expense |  |  |  | 1782 |  | 1782 |
| Contribution margin | $8202 | $9282 | $9662 | $(1782) | $(20506) | $4858 |
| Overhead Allocation | 2618 | 3037 | 3111 |  | (8766) |  |
| EBITDA (unaudited) | $5584 | $6245 | $6551 | $(1782) | $(11740) | $4858 |
| Depreciation and amortization expense | 797 | 266 | 2214 |  | 1195 | 4472 |
| Operating income (loss) | $4787 | $5979 | $4337 | $(1782) | $(12935) | $386 |

---

The following table presents financial information by segment year ended December 31, 2024:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In thousands)* | **Revenue Solutions** | **Customer Care** | **Fulfillment & Logistics** | **Restructuring** | **Unallocated Corporate** | **Total** |
| Operating revenue | $50332 | $52918 | $81992 | $— | $— | $185242 |
| Segment labor expense | 26440 | 34175 | 20263 |  | 12891 | 93769 |
| Other segment operating expense | 11468 | 6260 | 52770 |  | 8927 | 79425 |
| Restructuring expense |  |  |  | 2402 |  | 2402 |
| Contribution margin | $12424 | $12483 | $8959 | $(2402) | $(21818) | $9646 |
| Overhead allocation | 4074 | 2355 | 3198 |  | (9627) |  |
| Goodwill and intangible assets impairment charges | 3168 |  |  |  |  | 3168 |
| EBITDA (unaudited) | $5182 | $10128 | $5761 | $(2402) | $(12191) | $6478 |
| Depreciation and amortization expense | 1459 | 207 | 1256 |  | 1463 | 4385 |
| Operating income (loss) | $3723 | $9921 | $4505 | $(2402) | $(13654) | $2093 |

---

## Ex-19

Exhibit 19

Extracted from Harte Hanks Business Conduct Policy as published on January 2024

**INSIDER TRADING RESTRICTIONS**

**PROHIBITION AGAINST INSIDER TRADING**

Buying or selling securities while aware of material, non-public information may violate state and federal securities laws. Insider trading is unethical, illegal and a violation of company policies. Harte Hanks, its directors and all employees, regardless of their positions, and others who may gain access to Harte Hanks inside information are subject to these restrictions. A determination as to whether information is "material" or "inside" depends on all of the relevant facts and circumstances. In general, information is considered material if there is a substantial likelihood that a reasonable investor would consider it important in making an investment decision. Both positive and negative information may be material. Inside information means the information is non-public or, in some cases, has been public only for a very short time. Examples of potentially material, inside information may include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our financial performance and financial condition,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our strategic plans,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• mergers, acquisitions, joint ventures, divestitures or other similar transactions,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• important news about our products or services, or developments regarding key customers or suppliers, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• major lawsuits, claims or regulatory proceedings.

Insider trading restrictions also prohibit communicating material nonpublic information to family members, friends, business associates or others who then trade based on the information – commonly referred to as "tipping" – and they also apply to securities of other companies – such as suppliers, customers, or competitors – and limit any trading in those securities if a Harte Hanks employee learns in the course of his or her employment material confidential information about the other company.

**SPECIFIC HARTE HANKS INSIDER TRADING RESTRICTIONS**

Harte Hanks, like many public companies, has adopted specific trading restrictions to guard against insider trading. These restrictions are designed to protect employees and Harte Hanks from liability associated with inappropriate use of inside information and these restrictions apply to specified employees and those living in their household. Do not confuse the applicability of these trading restrictions with the broader prohibition on trading when aware of material inside information. Harte Hanks directors and employees are required to adhere to the following guidelines and procedures in order to help ensure compliance with applicable insider trading requirements:

Nondisclosure. You should avoid disclosing material inside information to others, except to persons within Harte Hanks whose positions require them to know it to perform their authorized job responsibilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Trading in Harte Hanks Securities. You should not place a purchase or sale order, or recommend that another person place a purchase or sale order, in Harte Hanks securities when you are aware of material information concerning Harte Hanks that has not been disclosed to the public. This includes orders for purchases and sales of stock and all other company securities. Although the exercise of employee stock options is not subject to this policy because the exercise itself involves only an internal transaction with Harte Hanks, the underlying stock that is acquired upon exercise of a stock option will be treated like any other stock and may not be sold by an employee who is aware of material inside information, even if being sold to pay the exercise price or taxes associated with the exercise. Any employee who is aware of material inside information should wait one (1) full trading day/ twenty-four (24) hours after the information has been publicly released by Harte Hanks before trading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Avoid Speculation. You should avoid speculating in Harte Hanks stock. Investing means buying to share in the future potential growth opportunities of Harte Hanks — it does not mean short range speculation based

------

Exhibit 19

on anticipated fluctuations in the market. Speculating in our stock, which would include short-selling, is inconsistent with Harte Hanks culture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Trading in Other Company's Securities. You should not place a purchase or sale order, or recommend that another person place a purchase or sale order, in securities of another company, if you learn in the course of your position with Harte Hanks confidential information about the other company that may affect the value of those securities. For example, it would be a violation of the securities laws if an employee learned through Harte Hanks sources that Harte Hanks intends to purchase another company, and then traded stock in that other company because of the likely increase or decrease in the value of its securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.Trading in Puts, Calls and Options; Hedging. Harte Hanks policy prohibits trading in options, warrants, puts and calls on Harte Hanks securities on the New York Stock Exchange or any other market. Harte Hanks policy also prohibits entering into hedging or monetization transactions or similar arrangements with respect to Harte Hanks securities. Options trading is highly speculative and risky. People who buy options are betting that the stock price will move rapidly. For that reason, when a person trades in options in his or her employer's stock, it may create the appearance that the person was trading on the basis of inside information, particularly where the trading occurs before a company announcement or major event. It is difficult for an employee to prove that he or she did not know about the announcement or event. As a result, Harte Hanks prohibits its directors and employees from trading in options on Harte Hanks stock. This policy does not pertain to stock options granted by Harte Hanks under its equity compensation plans, which are not separately traded on the NYSE or other markets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.Window Group Restrictions. Harte Hanks directors, executive officers and certain other designated employees are subject to additional "Window Group" restrictions. From time to time, other employees with inside knowledge of material information may be informed by the General Counsel that they are subject to similar restrictions on trading. The General Counsel maintains a list of individuals comprising the Window Group and notifies individuals of their inclusion in this group. The Window Group is subject to the following additional restrictions on trading in Harte Hanks securities:

You must pre-clear all transactions in Harte Hanks' securities by contacting Harte Hanks General Counsel with details of your proposed transaction. Transactions to be pre-cleared include any purchase or sale of Harte Hanks securities in the open market, the exercise of any Harte Hanks stock options and the sale of the underlying securities, as well as any transfers of funds in or out of any account in a Harte Hanks benefit plan that includes investments in Harte Hanks' securities. Transactions by members of your immediate family, trusts of which you are either a trustee, settlor or beneficiary or members of your family are beneficiaries, and partnerships or closely held corporations in which you have an interest may be attributable to you, so you should also discuss these transactions with the General Counsel in advance.

Harte Hanks is most likely to pre-clear a transaction during an open "window period," which typically occurs during each quarter beginning after the expiration of twenty-four (24) hours after the day on which Harte Hanks issues the preceding quarter's earnings release and ending at the close of trading on the sixteenth day of the last month of the then-current fiscal quarter. Even during a window period, however, you are not permitted to trade if you are aware of material non-public information regarding our company.

You are not permitted to make a trade outside of an open quarterly window period except for reasons of exceptional personal hardship and subject to prior clearance with the General Counsel. Notwithstanding the foregoing, it is not a violation of this policy for a person in the Window Group to trade in Harte Hanks securities at any time if such trading is pursuant to an arrangement that (a) complies with SEC Rule 10b5-1 and (b) has been disclosed to Harte Hanks General Counsel in advance of such trading.

Individuals in the Window Group are also subject to the general restrictions on all employees.

Directors and executive officers are also subject to public reporting requirements and related regulatory restrictions in connection with their ownership and transactions in Harte Hanks securities, in addition to generally applicable insider trading restrictions, and are required to comply in full with these requirements.

## Exhibit 21.1

Exhibit 21.1

2025 10-K

SUBSIDIARIES OF REGISTRANT

---

| | | |
|:---|:---|:---|
| Subsidiary Name | Type of Entity | State or Country of Organization or Incorporation |
| Harte-Hanks Belgium N.V. | Corporation | Belgium |
| Harte-Hanks Direct, Inc. | Corporation | New York |
| Harte-Hanks Direct Marketing/Jacksonville LLC | Limited Liability Company | Delaware |
| Harte Hanks Europe B.V. | Corporation | The Netherlands |
| Harte-Hanks Florida, Inc. | Corporation | Delaware |
| Harte-Hanks GmbH | Corporation | Germany |
| Harte-Hanks Logistics, LLC | Limited Liability Company | Florida |
| Harte-Hanks Philippines, Inc. | Corporation | Philippines |
| Harte-Hanks Print, Inc. | Corporation | New Jersey |
| Harte-Hanks Response Management/Austin, Inc. | Corporation | Delaware |
| Harte-Hanks Response Management/Boston, Inc. | Corporation | Massachusetts |
| Harte-Hanks SRL | Limited Liability Company | Romania |
| Harte-Hanks STS, Inc. | Corporation | Delaware |
| Harte Hanks Tranquility Limited | Limited Liability Company | United Kingdom |
| Harte Hanks UK Limited | Limited Liability Company | United Kingdom |
| Harte Hanks Direct Marketing/Baltimore, Inc. | Corporation | Maryland |
| Harte-Hanks Market Intelligence Espana LLC | Limited Liability Company | Colorado |
| Harte-Hanks Do Brazil Consoltoria E Servicos LTDA. | Limited Liability Company | Brazil |
| Harte-Hanks Direct Marketing/Cincinnati, Inc. | Corporation | Ohio |

---

## Exhibit 23.1

Exhibit 23.1

2025 10-K

**Consent of Independent Registered Public Accounting Firm**

We consent to the incorporation by reference in the Registration Statements (Nos. 033-54303, 333-03045, 333-30995, 333-63105, 333-41370, 333-159151, 333-189162, 333-189781, 333-227325, 333-227326 and 333-240325) on Form S-8 of Harte Hanks, Inc. and Subsidiaries of our report dated March 17, 2026, relating to the consolidated financial statements of Harte Hanks, Inc. and Subsidiaries (the Company), appearing in this Annual Report on Form 10-K of the Company for the year ended December 31, 2025.

/s/ Wolf & Company, P.C.

Boston, Massachusetts

March 17, 2026

## Exhibit 31.1

Exhibit 31.1

2025 10-K

CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, David Fisher, President of Harte Hanks, Inc. (the "Company"), hereby certify that:

1. I have reviewed this annual report on Form 10-K of the Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent function):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting.

---

| | |
|:---|:---|
| March 17, 2026 | /s/ David Fisher |
| Date | David Fisher |
| | President |

---

## Exhibit 31.2

Exhibit 31.2

2025 10-K

CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, David Garrison, Chief Financial Officer of Harte Hanks, Inc. (the "Company"), hereby certify that:

1. I have reviewed this annual report on Form 10-K of the Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent function):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting.

---

| | |
|:---|:---|
| March 17, 2026 | /s/ David Garrison |
| Date | David Garrison |
| | Chief Financial Officer |

---

## Exhibit 32.1

Exhibit 32.1

2025 10-K

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED

PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, David Fisher, Chief Executive Officer of Harte Hanks, Inc. (the "Company"), hereby certify that the accompanying report on Form 10-K for the year ended December 31, 2025 and filed with the Securities and Exchange Commission on the date hereof pursuant to Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934 (the "Report") by the Company fully complies with the requirements of those sections.

I further certify that, based on my knowledge, the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | |
|:---|:---|
| March 17, 2026 | /s/ David Fisher |
| Date | David Fisher |
| | President |

---

Note: This certification accompanies the Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

## Exhibit 32.2

Exhibit 32.2

2025 10-K

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED

PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, David Garrison, Chief Financial Officer of Harte Hanks, Inc. (the "Company"), hereby certify that the accompanying report on Form 10-K for the year ended December 31, 2025 and filed with the Securities and Exchange Commission on the date hereof pursuant to Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934 (the "Report") by the Company fully complies with the requirements of those sections.

I further certify that, based on my knowledge, the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | |
|:---|:---|
| March 17, 2026 | /s/ David Garrison |
| Date | David Garrison |
| | Chief Financial Officer |

---

Note: This certification accompanies the Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

<br>