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Harte Hanks

HHS
24
Advertising Agencies · Communication Services
Price
$3.68
+0.07 (+1.94%)
Market Cap
$27.3M
Exchange
NASDAQ Global Market
Winston Score
24
Winston is worried
Weak fundamentals across most pillars.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Weak
Growth
Weak
Cash Flow
Weak
Stability
Good
Valuation
Data not available

Share count rising — dilution

+2.6% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 7.2M (2021) → 7.4M (2025)

Winston Score History

The full picture

Harte Hanks is a marketing services company that helps other businesses reach their customers through direct mail, email campaigns, call centers, and data analytics. Its clients are mostly large companies in industries like healthcare, retail, financial services, and technology. The company has been around since 1923 and focuses on helping brands manage customer relationships and run targeted marketing programs.

Harte Hanks earns money by charging clients fees for services like printing and mailing physical materials, running customer contact centers, and analyzing customer data. It operates mainly in the United States but also has some international operations. The company is small, with a market cap near zero, and competes against much larger marketing firms and digital agencies, which puts pressure on pricing and client retention. Its thin operating margin of around 0.4% shows how little room for error it has, and the main risk is continued loss of clients to larger, more digitally advanced competitors.

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-1.7% YoY

YoY Growth Rate

Revenue declining

EPS Growth

<−1,000% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

0.0% of revenue

Below sector average (12%)

Research and development spending

Insider Activity

31.0%ownership

Insiders own a meaningful stake in the company

Cash Runway

~7 months

$5M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Short runway — potential dilution ahead through share issuance

Cash watch

Harte Hanks has less than a year of cash at its current burn rate. Growth investors should watch for potential share dilution from future fundraising — that directly reduces your ownership.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale
Gross Margin
47.6%
Healthy — 47.6% gross margin
Profit after running costs
Operating Margin
-11.8%
Losing money on operations — -11.8%
Return on the money invested
ROCE
-21.3%
Weak — -21.3% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales growth
Sales YoY
-11.6%
Shrinking sales (-11.6% YoY)
Profit growth
EPS YoY
N/A
Data not available
How steady the profit is
EPS Consistency
2/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash
Cash Conversion
N/A
Data not available
Spare cash per sale
FCF Margin
-1.0%
Burning cash (-1.0%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

What it owes vs what it owns
Debt / Equity
0.20
Conservative — low debt load (0.20)
Covers its interest
Interest Cover
N/A
Data not available

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Valuation

Price vs profit
P/E Ratio (TTM)
N/M
Negative earnings — P/E not meaningful
Cheaper or dearer next year
P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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