Free cash flow generation remains elusive, with the most recent period recording a $903,000 outflow and erratic OCF/NI ratios that have swung as high as 32.31 in previous quarters.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | -704K | -1.74M | -2.99M | 10.48M | 28.79M | -1.76M | -7.84M | 12.1M | -9.18M | -30.8M | 14.59M | 30.94M | 25.56M | 59.57M | 76.32M | 60.66M | 95.38M | 114.02M | 116.7M | 143.22M | 146.37M | 145.41M | 153.32M | 124.06M | 141.64M | 152.94M | 110.92M | 115.4M | -170.2M | 92.7M | 72.5M |
| Operating CF Margin % | - | -1.09% | -1.61% | 5.47% | 13.96% | -0.91% | -4.43% | 5.56% | -3.23% | -8.02% | 3.61% | 6.25% | 4.62% | 10.65% | 9.94% | 7.13% | 11.08% | 13.26% | 10.78% | 12.32% | 12.36% | 12.81% | 14.88% | 13.13% | 15.59% | 16.66% | 11.55% | 13.91% | -22.74% | 14.52% | 10.89% |
| Operating CF Growth % | -161.96% | 41.91% | -128.51% | -63.61% | 1733.13% | 77.51% | -164.81% | 231.76% | 70.19% | -311.1% | -52.85% | 21.06% | -57.09% | -21.95% | 25.81% | -36.4% | -16.35% | -2.3% | -18.51% | -2.16% | 0.66% | -5.15% | 23.58% | -12.41% | -7.39% | 37.88% | -3.88% | 167.8% | -283.6% | 27.86% | 98.63% |
| Net Income | -1.05M | -811K | -30.3M | -1.57M | 36.78M | 14.97M | -1.69M | -26.26M | 17.55M | -41.86M | -89.78M | -170.93M | 23.99M | 24.44M | -65.98M | -215K | 53.6M | 47.72M | 62.74M | 92.64M | 111.79M | 114.46M | 97.57M | 87.36M | 90.75M | 79.68M | 81.89M | 72.9M | 68.4M | 336.7M | 40.6M |
| Depreciation & Amortization | 4.49M | 4.47M | 4.38M | 4.24M | 2.73M | 2.56M | 3.62M | 5.34M | 7.45M | 10.5M | 12.35M | 14.24M | 14.92M | 15.74M | 20.42M | 21.21M | 23.43M | 29.98M | 36.38M | 36.7M | 34.03M | 31.51M | 28.87M | 30.13M | 32.83M | 49.13M | 44.16M | 35.2M | 29.6M | 23.2M | 31.1M |
| Stock-Based Compensation | 157K | 258K | 1.93M | 1.42M | 2.35M | 1.47M | 764K | 1.07M | -581K | 2.66M | 2.67M | 5.73M | 4.05M | 5.74M | 3.41M | 4.99M | 3.91M | 3.89M | 5.83M | 7.07M | 7.43M | 161K | 101K | 100K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -917K | -928K | -9.28M | -1.47M | -19.84M | -10.72M | -244K | 996K | -1.65M | -10.96M | 26.29M | -41.23M | 5.8M | 1.74M | -43.52M | 11.93M | 8.92M | 6.09M | 13.53M | 8.63M | 6.72M | 6.55M | 6.96M | 12.05M | 8.88M | 2.47M | 5.94M | 10.6M | 4.1M | 2.7M | 600K |
| Other Non-Cash Items | -2M | -3.1M | 33.9M | 380K | -1.01M | 913K | -3.94M | 7.58M | -25.63M | 39.74M | 13.09M | 221.84M | -2.86M | 16.35M | 161.55M | 41.66M | 6.57M | 9.06M | -150K | 5.17M | 6.06M | 459K | 534K | 379K | 741K | 4.46M | -4.09M | -3M | -266.1M | -533.1M | 600K |
| Working Capital Changes | -1.38M | -1.63M | -3.63M | 7.49M | 7.79M | -10.96M | -6.34M | 23.37M | -6.33M | -30.89M | 49.96M | 1.29M | -20.34M | -4.44M | 432K | -19.12M | -1.05M | 17.29M | -1.63M | 72K | -12.23M | -7.56M | 19.38M | -5.86M | 8.45M | 17.2M | -16.98M | -300K | -6.2M | 263.2M | -400K |
| Change in Receivables | 6.06M | 4.97M | 2.38M | 5.65M | 3.84M | -9.18M | -931K | 16.82M | 7.47M | 7.42M | 14.95M | 10.19M | -5.17M | 7.63M | 12.99M | -5.39M | -8.74M | 29.36M | 31.48M | -10.25M | -460K | -14.25M | -14.21M | -15.02M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 308K | 94K | 139K | 251K | 125K | 272K | 51K | -507K | 613K | 214K | -2.48M | 2.63M | -1.47M | 1.95M | 23K | -1.08M | -873K | 86K | 536K | 425K | 839K | -800K | 900K | 2.4M | 11.9M |
| Change in Payables | -4.82M | -3.21M | -795K | 844K | 6.2M | -395K | -997K | -13.75M | 9.25M | -10.4M | 9.13M | 2.14M | -278K | -1.34M | -3.4M | -9.71M | 12.66M | -5.8M | -21.55M | 8.31M | 1.92M | 6.17M | 7.44M | 7.14M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -3M | -2.76M | -3.74M | -2.31M | -11.49M | -2.9M | -775K | -2.6M | -52K | -5.67M | 99.7M | -36.16M | -11.1M | 10.35M | -13.84M | -17.55M | -30.15M | -8.87M | -28.3M | -28.1M | -86.76M | -91.32M | -64.58M | -31.64M | -20.71M | -53.38M | -79.52M | -29.6M | 185.2M | 231.7M | -61.1M |
| Capital Expenditures | -3M | -2.76M | -3.75M | -2.81M | -5.8M | -3.05M | -2.7M | -2.9M | -4.21M | -5.68M | -6.69M | -11.57M | -11.27M | -15.87M | -13.86M | -21.03M | -17.45M | -9.01M | -19.95M | -28.22M | -33.71M | -28.21M | -35.15M | -31.91M | -17.36M | -26.45M | -36.47M | -165.4M | -71.8M | -147.5M | -27.4M |
| CapEx % of Revenue | 1.93% | 1.73% | 2.02% | 1.47% | 2.81% | 1.57% | 1.53% | 1.33% | 1.48% | 1.48% | 1.65% | 2.34% | 2.03% | 2.84% | 1.8% | 2.47% | 2.03% | 1.05% | 1.84% | 2.43% | 2.85% | 2.49% | 3.41% | 3.38% | 1.91% | 2.88% | 3.8% | 19.93% | 9.59% | 23.11% | 4.11% |
| Acquisitions | -1K | 1K | 0 | 500K | -5.75M | 146K | 1.92M | 300K | 3.93M | 18K | -3.5M | -24.89M | 0 | 0 | 0 | 0 | -12.9M | -8.69M | -8.69M | 0 | -53.93M | -63.27M | -29.7M | -343K | -3.79M | -28.23M | -43.87M | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 2K | 3K | 57K | 0 | 0 | 0 | 225K | 18K | 109.89M | 297K | 169K | 26.22M | 12K | 3.48M | 207K | 142K | 339K | 120K | 877K | 165K | 268K | 621K | 439K | 1.29M | 823K | -3.1M | 7.2M | 765.9M | -33.7M |
| Cash from Financing | 632K | 514K | -419K | -3.22M | -15.82M | -13.41M | 7.31M | 3.09M | 22.73M | -1.46M | -85.3M | -31.94M | -44.63M | -30.02M | -99.83M | -42.18M | -65.75M | -49.48M | -79.7M | -130.84M | -46.22M | -68.34M | -82.08M | -85.3M | -126.37M | -92.02M | -43.68M | -81M | -68.3M | -252.8M | -17.5M |
| Debt Issued (Net) | -160K | -159K | -124K | -160K | -5.19M | -12.33M | 7.99M | 3.69M | 13.65M | -712K | -77.48M | -5.38M | -15.31M | -12.25M | -69.19M | -14.37M | -46.69M | -30.94M | 11.5M | 54.13M | 143M | 52M | 5M | -11.3M | -32.53M | -10M | 53.49M | 5M | 0 | -216.9M | -22.6M |
| Equity Issued (Net) | -46K | -65K | -295K | -3.01M | -10.49M | -291K | -22K | 9K | 0 | -111K | -47K | -5.33M | -7.35M | -1.11M | -3.74M | -7.65M | 75K | 555K | -72.45M | -167.12M | -173.27M | -103.63M | -73.29M | -63.38M | -84.69M | -74.46M | -90.44M | -80.4M | -63.9M | -33M | 7.5M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -5.29M | -21.24M | -21.48M | -16.12M | -26.96M | -20.37M | -19.14M | -19.12M | -19.1M | -20.3M | -18.9M | -16.7M | -13.79M | -10.62M | -9.15M | -7.56M | -6.74M | -5.6M | -4.4M | -3M | -2.4M |
| Share Repurchases | -46K | -65K | -295K | -3.01M | -469K | -291K | -22K | -6K | -115K | 0 | 0 | -4.62M | -7.83M | -1.63M | -4.4M | -8.36M | 0 | 0 | -76.65M | -183.87M | -186M | -114.21M | -85.74M | -76.39M | -98.91M | -83.66M | -97.02M | -87.6M | -71.4M | -47.3M | 0 |
| Other Financing | 838K | 738K | 0 | -45K | -131K | -795K | -653K | -616K | 9.08M | -635K | -2.48M | 14K | -481K | -539K | 57K | 215K | 0 | 13K | 342K | 2.46M | 2.95M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 100K | 0 |
| Net Change in Cash | -4.44M | -4.35M | -8.93M | 7.5M | -3.77M | -18.43M | -560K | 13.24M | 12.48M | -37.61M | 29.44M | -39.14M | -32M | 39.36M | -37.13M | 782K | -602K | 56.44M | 7.31M | -15.42M | 13.71M | -14.25M | 6.66M | 7.13M | -5.44M | 7.54M | -12.27M | 4.8M | -53.3M | 71.6M | -6.1M |
| Free Cash Flow | -3.7M | -4.49M | -6.73M | 7.67M | 22.99M | -4.81M | -10.54M | 9.2M | -13.39M | -36.48M | 7.9M | 19.37M | 14.3M | 43.7M | 62.47M | 39.63M | 77.93M | 105.01M | 96.75M | 115M | 112.66M | 117.2M | 118.17M | 92.15M | 124.28M | 126.5M | 74.46M | -50M | -242M | -54.8M | 45.1M |
| FCF Margin % | -2.38% | -2.82% | -3.63% | 4% | 11.15% | -2.47% | -5.96% | 4.23% | -4.7% | -9.5% | 1.95% | 3.91% | 2.58% | 7.81% | 8.14% | 4.66% | 9.06% | 12.21% | 8.94% | 9.89% | 9.51% | 10.33% | 11.47% | 9.76% | 13.68% | 13.78% | 7.75% | -6.03% | -32.33% | -8.59% | 6.77% |
| FCF Growth % | -234.21% | 33.28% | -187.84% | -66.66% | 578.1% | 54.37% | -214.53% | 168.74% | 63.31% | -561.88% | -59.22% | 35.49% | -67.29% | -30.04% | 57.62% | -49.14% | -25.79% | 8.53% | -15.86% | 2.07% | -3.87% | -0.82% | 28.24% | -25.85% | -1.75% | 69.88% | 248.92% | 79.34% | -341.61% | -221.51% | 136.13% |
| FCF per Share | -0.50 | -0.61 | -0.92 | 1.05 | 3.11 | -0.67 | -1.63 | 1.46 | -2.14 | -5.89 | 1.28 | 3.14 | 2.28 | 6.96 | 9.93 | 6.24 | 12.15 | 16.44 | 15.09 | 15.60 | 13.97 | 13.72 | 13.46 | 10.24 | 13.10 | 13.02 | 7.13 | -4.62 | -21.21 | -4.75 | 3.93 |
| FCF Conversion (FCF/Net Income) | 3.54x | 2.14x | 0.10x | -6.67x | 0.78x | -0.12x | 4.63x | -0.46x | -0.52x | 0.74x | -0.11x | -0.18x | 1.07x | 4.46x | -0.92x | 1.37x | 1.78x | 2.39x | 1.86x | 1.55x | 1.31x | 1.27x | 1.57x | 1.42x | 1.56x | 1.92x | 1.35x | 1.58x | -2.49x | 0.28x | 1.79x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 490K | 0 | 0 | 0 | 292K | 5.67M | 1.68M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 1.45M | 0 | 0 | 1.32M | 0 | 0 | 0 | 32.91M | 2.59M | 10.07M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Persistent Revenue Attrition
As reported in recent financial filings, the relationship between net income and operating cash flow for HHS is erratic, with OCF/NI ratios swinging wildly from 0.89 to over 32.0, indicating that reported earnings provide little reliable insight into the company's actual ability to generate cash.
The extreme variance in the OCF/NI ratio suggests that accrual-based accounting adjustments are significantly distorting the company's bottom-line performance. Investors should monitor this divergence, as it implies that net income is frequently decoupled from the underlying cash-generating capacity of the business.
Based on the company's quarterly cash flow statements, free cash flow has remained largely negative, with the most recent period showing a $903,000 outflow, highlighting a persistent inability to sustain positive cash generation despite the company's efforts to manage its operational cost structure.
The consistent failure to produce positive free cash flow suggests that the business model is currently consuming capital rather than creating it. This trend warrants further investigation into whether the company can reach a sustainable inflection point without further eroding its cash reserves.
According to historical data, working capital changes have been the primary driver of cash flow volatility, with swings as large as $6.1 million in a single quarter, suggesting that the company's cash position is highly sensitive to the timing of client payments and inventory management.
The reliance on working capital fluctuations to bridge cash flow gaps indicates a lack of operational predictability. This volatility appears to be a structural feature of the business, potentially reflecting the lumpy nature of project-based marketing contracts and fulfillment cycles.
As evidenced by the reported figures, capital expenditures have remained modest, with CapEx/Revenue ratios consistently below 4%, suggesting that the company is not currently engaged in heavy asset investment to drive future growth or replace aging fulfillment infrastructure.
The low capital intensity may indicate that the company is prioritizing cash preservation over infrastructure modernization. While this protects the balance sheet in the short term, it may also limit the company's ability to compete effectively against larger, more technologically advanced peers.
Quick answers to the most common questions about buying HHS stock.
Harte Hanks, Inc. (HHS) generated $-1.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Harte Hanks, Inc. (HHS) reported negative free cash flow of $4.5M in 2025, indicating capital requirements exceeded cash from operations.
Harte Hanks, Inc. (HHS) spent $2.8M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Harte Hanks, Inc. (HHS) spent $0.1M on share repurchases. This shows the company's commitment to returning capital to its equity investors.