Spok Reports Fourth Quarter And Full Year 2025 Results

PLANO, Texas--( BUSINESS WIRE)--Spok Holdings, Inc. (NASDAQ: SPOK), a global leader in healthcare communications, today announced results for the fourth quarter and full year ended December 31, 2025. In addition, the Company’s Board of Directors declared a regular quarterly dividend of $0.3125 per share, payable on March 31, 2026, to stockholders of record on March 16, 2026.

Recent Highlights:

"I am very proud of our Spok team as they were able to regain the positive momentum that we saw in the beginning of 2025,” said Vincent D. Kelly, chief executive officer of Spok Holdings, Inc. “In the fourth quarter, we generated a nearly 83% sequential increase in software operations bookings, while continued growth in average revenue per wireless unit drove a slight increase in wireless revenue. Our focus continues to be to generate cash flow and return capital to stockholders, while responsibly investing for future growth. In 2025, we demonstrated our ability to do this and have positioned ourselves to continue this tradition in 2026. In addition to returning $27.3 million to our stockholders in 2025, we continued to invest in our Spok Care Connect and Wireless solutions with over $12 million devoted to developing our world-class product platform. We believe that these investments will continue to create stockholder value.

"Spok continues its proud legacy of balancing the necessary investments in our products and infrastructure with returning capital to our stockholders," continued Kelly. "In 2025, we generated $29 million of adjusted EBITDA and returned the majority of that amount to our stockholders in the form of our regular quarterly dividend. After hitting its low point in the first quarter due to seasonal working capital needs, our cash, and cash equivalents balances continued to grow throughout the year, totaling nearly $25.3 million at year-end, up approximately $4 million from the prior quarter.

"Based on our positive momentum in the fourth quarter of 2025, and our visibility into our very robust product sales pipeline, we provided full year 2026 financial guidance estimates for revenue and adjusted EBITDA. At the high-end of the guidance range, we are on track to again grow consolidated revenue in 2026, on a year-over-year basis, with continued growth in software revenue, partially offset with declines in wireless revenue. The midpoint of our adjusted EBITDA guidance is also up from 2025." concluded Kelly.

Financial Highlights:

For the three months ended December 31,

For the twelve months ended December 31,

(Dollars in thousands)

2025

2024

Change (%)

2025

2024

Change (%)

Revenue

Wireless revenue

Paging revenue

16,844

17,750

(5.1

68,559

70,958

(3.4

Product and other revenue

970

620

56.5

3,963

2,565

54.5

Total wireless revenue

17,814

18,370

(3.0

72,522

73,523

(1.4

Software revenue

License

1,246

1,283

(2.9

7,347

7,648

(3.9

Professional services - projects

3,545

3,503

1.2

15,496

14,616

6.0

Professional services - managed services

1,981

1,226

61.6

6,623

3,259

103.2

Hardware

197

269

(26.8

1,287

1,382

(6.9

Maintenance and subscription

9,078

9,241

(1.8

36,433

37,225

(2.1

Total software revenue

16,047

15,522

3.4

67,186

64,130

4.8

Total revenue

33,861

33,892

(0.1

139,708

137,653

1.5

For the three months ended December 31,

For the twelve months ended December 31,

(Dollars in thousands)

2025

2024

Change (%)

2025

2024

Change (%)

GAAP

Operating expenses

29,920

29,254

2.3

119,998

118,688

1.1

Net income

2,930

3,644

(19.6

15,881

14,965

6.1

Cash and cash equivalents (as of period end)

25,280

29,145

(13.3

25,280

29,145

(13.3

Capital returned to stockholders

6,398

6,336

1.0

27,259

26,381

3.3

Non-GAAP

Adjusted operating expenses

28,852

28,313

1.9

116,111

113,436

2.4

Adjusted EBITDA

6,702

7,055

(5.0

29,005

29,173

(0.6

For the three months ended December 31,

For the twelve months ended December 31,

(Dollars in thousands, excluding units in service and ARPU)

2025

2024

Change (%)

2025

2024

Change (%)

Key Statistics

Wireless units in service (000's) (as of period end)

675

720

(6.3

675

720

(6.3

Wireless average revenue per unit (ARPU)

8.26

8.16

1.2

8.20

7.97

2.9

Software operations bookings (1)

8,120

7,124

14.0

32,560

34,083

(4.5

Software backlog (as of period end) (2)

58,197

62,439

(6.8

58,197

62,439

(6.8

(1) Software operations bookings includes net new (i.e., new customers or incremental add-on sales to existing customers) sales of license, professional services, equipment, and first-year maintenance.

(2) Software backlog excludes $16.1 million and $5.6 million of contractual obligations that are deemed cancellable by the customer without significant penalty as of December 31, 2025 and 2024, respectively.

Financial Outlook:

The Company also provided its financial guidance and expects the following for the full year 2026:

Current Guidance

(Unaudited and in millions)

Full Year 2026

From

Revenue

Wireless

68.0

71.0

Software

68.0

72.0

Total Revenue

136.0

143.0

Adjusted EBITDA

27.5

32.5

2025 Fourth Quarter Call:

Management will host a conference call and webcast to discuss these financial results on Wednesday, February 25, 2026, at 5:00 p.m. Eastern Time. The presentation is open to all interested parties and may include forward-looking information.

Conference Call Details

Date/Time:

Wednesday, February 25, 2026, at 5:00 p.m. ET

Webcast:

https://www.webcast-eqs.com/registration/Spok_Q4_2025

U.S. Toll-Free Dial In:

877-407-0890

International Dial In:

1-201-389-0918

To access the call, please dial in approximately ten minutes before the start of the call. For those unable to join the live call, an OnDemand version of the webcast will be available following the call under the URL link and on the investor relations website.

* * * * * * * * *

About Spok

Spok Holdings, Inc. (NASDAQ: SPOK), headquartered in Plano, Texas, is proud to be a global leader in healthcare communications. We deliver clinical information to care teams when and where it matters most to improve patient outcomes. Top hospitals rely on the Spok Care Connect® platform to enhance workflows for clinicians and support administrative compliance. Our customers send over 70 million messages each month through their Spok® solutions. Spok enables smarter, faster clinical communication. For more information, visit spok.com.

Spok is a trademark of Spok Holdings, Inc. Spok Care Connect and Spok Mobile are trademarks of Spok, Inc.

Non-GAAP Financial Measures

This press release contains the following non-GAAP financial measures: adjusted operating expenses and adjusted EBITDA. Adjusted operating expenses excludes depreciation and accretion expense, impairment of intangible assets and severance and restructuring costs. Adjusted EBITDA represents net income/(loss) before interest income/expense, income tax benefit/expense, depreciation and accretion expense, stock-based compensation expense, impairment of intangible assets, legal costs unrelated to core business activities and non-recurring in nature, and severance and restructuring. With respect to our expectations under "Financial Outlook" above, reconciliation of adjusted EBITDA to net income is not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity and uncertainty with respect to certain items included in net income that are excluded from adjusted EBITDA, in particular, income tax benefit/expense, stock-based compensation expenses, impairment of intangible assets, severance and restructuring and other non-recurring expenses. These items can have unpredictable fluctuations based on unforeseen activity that is out of our control and/or cannot be reasonably predicted.

We believe that these non-GAAP financial measures provide useful information to management and investors regarding certain financial and business trends relating to Spok's financial condition and results of operations. We use these non-GAAP measures for financial, operational, and budgetary decision-making purposes, to understand and evaluate our core operating performance and trends, and to generate future operating plans. We believe that these non-GAAP financial measures permit us to more thoroughly analyze key financial metrics used to make operational decisions and allow us to assess our core operating results. We believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial measures with other software companies who present similar non-GAAP financial measures. We adjust for certain items because we do not regard these costs as reflective of normal costs related to the ongoing operation of the business in the ordinary course. In general, these items possess one or more of the following characteristics: non-cash expenses, factors outside of our control, items that are non-operational in nature, and unusual items not expected to occur in the normal course of business. We believe it is important to exclude these costs, given that they do not represent future operational costs under this strategic business plan. This allows us to assess the underlying performance of our core business under this new strategic business plan.

We do not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principle of these non-GAAP financial measures is that they exclude significant amounts that are required by GAAP to be recorded in the Company's financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which items are excluded or included in determining these non-GAAP financial measures. In order to compensate for these limitations, management presents non-GAAP financial measures in connection with GAAP results. We urge investors to review the reconciliation of our non-GAAP financial measures to the comparable GAAP financial measures, which are included in this press release, and not to rely on any single financial measure to evaluate our business.

Safe Harbor Statement under the Private Securities Litigation Reform Act

Statements contained herein or in prior press releases which are not historical fact, such as statements regarding our future operating and financial performance, are forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties that may cause our actual results to be materially different from the future results expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those expectations include, but are not limited to, our ability to manage wireless network rationalization to lower our costs without causing disruption of service to our customers; our ability to retain key management personnel and to attract and retain talent within the organization; the productivity of our sales organization and our ability to deliver effective customer support; our ability to identify potential acquisitions, finance, consummate and successfully integrate such acquisitions, and achieve the expected benefits of such acquisitions; economic conditions, such as recessionary economic cycles, the impact of trade disputes, tariffs and other trade protection measures, higher interest rates, inflation and higher levels of unemployment; risks related to our overall business strategy, including maximizing revenue and cash generation from our established businesses and returning capital to stockholders through dividends and repurchases of shares of our common stock; competition for our services and products from new technologies or those offered and/or developed from firms that are substantially larger and have much greater financial and human capital resources; continuing decline in the number of paging units we have in service with customers, commensurate with a continuing decline in our wireless revenue; our ability to address changing market conditions with new or revised software solutions; undetected defects, bugs, or security vulnerabilities in our products; our dependence on the United States healthcare industry; long sales cycle of our software solutions and services; our reliance on third-party vendors to supply us with wireless paging equipment; our ability to maintain successful relationships with our channel partners; our ability to protect our rights in intellectual property that we own and develop and the potential for material litigation claiming intellectual property infringement by us; our use of open source software, third-party software and other intellectual property; our reliance on data centers and other computer systems, hardware, software and satellite networks and telecommunications systems infrastructure (collectively, "IT Systems") and technologies provided by third parties, and technology systems and electronic networks supplied and managed by third parties; cyberattacks, data breaches, system disruptions or other compromises to our or our critical third parties’ IT Systems, data, products or services; our ability to realize the benefits associated with our deferred income tax assets; future impairments of our long-lived assets or goodwill; risks related to data privacy and protection-related laws and regulation; and our ability to manage changes related to regulation, including laws and regulations affecting hospitals and the healthcare industry generally, as well as other risks described from time to time in our periodic reports and other filings with the Securities and Exchange Commission. Although Spok believes the expectations reflected in the forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Spok disclaims any intent or obligation to update any forward-looking statements.

Tables to Follow

SPOK HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited and in thousands except share, per share amounts and ARPU)

For the three months ended

For the year ended

12/31/2025

12/31/2024

12/31/2025

12/31/2024

Revenue:

Wireless

17,814

18,370

72,522

73,523

Software

16,047

15,522

67,186

64,130

Total revenue

33,861

33,892

139,708

137,653

Operating expenses:

Cost of revenue (exclusive of items shown separately below)

7,665

7,064

29,785

28,707

Research and development

3,022

2,626

12,216

11,694

Technology operations

6,149

6,091

24,603

25,635

Selling and marketing

4,194

4,349

17,703

16,220

General and administrative

7,822

8,183

31,804

31,180

Depreciation and accretion

858

938

3,429

4,148

Severance and restructuring

210

458

1,104

Total operating expenses

29,920

29,254

119,998

118,688

% of total revenue

88.4

86.3

85.9

86.2

Operating income

3,941

4,638

19,710

18,965

% of total revenue

11.6

13.7

14.1

13.8

Interest income

152

245

820

1,153

Other income (expense)

128

912

(86

)

Income before income taxes

4,221

4,888

21,442

20,032

Provision for income taxes

(1,291

)

(1,244

)

(5,561

)

(5,067

)

Net income

2,930

3,644

15,881

14,965

Basic net income per common share

0.14

0.18

0.77

0.74

Diluted net income per common share

0.14

0.18

0.75

0.73

Basic weighted average common shares outstanding

20,606,387

20,276,596

20,554,970

20,241,073

Diluted weighted average common shares outstanding

21,070,034

20,577,508

21,054,447

20,565,287

Cash dividends declared per common share

0.3125

1.2500

SPOK HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

12/31/2025

12/31/2024

ASSETS

(Unaudited)

Current assets:

Cash and cash equivalents

25,280

29,145

Accounts receivable, net

22,644

21,950

Prepaid expenses

8,909

9,362

Other current assets

1,051

840

Total current assets

57,884

61,297

Non-current assets:

Property and equipment, net

5,723

5,952

Operating lease right-of-use assets

6,477

8,249

Goodwill

99,175

Deferred income tax assets, net

36,530

41,686

Other non-current assets

322

744

Total non-current assets

148,227

155,806

Total assets

206,111

217,103

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

3,975

5,630

Accrued compensation and benefits

7,361

7,363

Deferred revenue

30,452

28,366

Operating lease liabilities

2,676

2,904

Other current liabilities

4,645

4,511

Total current liabilities

49,109

48,774

Non-current liabilities:

Asset retirement obligations

4,902

5,945

Operating lease liabilities

4,263

5,869

Other non-current liabilities

1,458

1,769

Total non-current liabilities

10,623

13,583

Total liabilities

59,732

62,357

Commitments and contingencies

Stockholders' equity:

Preferred stock

—

Common stock

Additional paid-in capital

108,212

105,736

Accumulated other comprehensive loss

(1,756

)

(1,784

)

Retained earnings

39,921

50,792

Total stockholders' equity

146,379

154,746

Total liabilities and stockholders' equity

206,111

217,103

SPOK HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited and in thousands)

For the year ended

12/31/2025

12/31/2024

Operating activities:

Net income

15,881

14,965

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and accretion

3,429

4,148

Deferred income tax expense

5,168

4,573

Stock-based compensation

5,007

4,956

Gain on sale of domain name

(701

)

—

Gain on asset retirement obligation settlement

(123

)

—

Provisions for credit losses, service credits and other

1,254

846

Changes in assets and liabilities:

Accounts receivable

(1,955

)

506

Prepaid expenses and other assets

652

(1,845

)

Net operating lease liabilities

(62

)

(36

)

Accounts payable and other liabilities

(1,742

)

(1,184

)

Deferred revenue

2,141

1,993

Net cash provided by operating activities

28,949

28,922

Investing activities:

Purchases of property and equipment

(3,753

)

(3,209

)

Proceeds from sale of domain name

701

—

Net cash used in investing activities

(3,052

)

(3,209

)

Financing activities:

Cash distributions to stockholders

(27,259

)

(26,381

)

Proceeds from issuance of common stock under the Employee Stock Purchase Plan

312

272

Purchase of common stock for tax withholding on vested equity awards

(2,843

)

(2,428

)

Net cash used in financing activities

(29,790

)

(28,537

)

Effect of exchange rate on cash and cash equivalents

(20

)

Net decrease in cash and cash equivalents

(3,865

)

(2,844

)

Cash and cash equivalents, beginning of period

29,145

31,989

Cash and cash equivalents, end of period

25,280

29,145

SPOK HOLDINGS, INC.

UNITS IN SERVICE, MARKET SEGMENTS,

AND AVERAGE REVENUE PER UNIT (ARPU)

(Unaudited and in thousands)

For the three months ended

12/31/2025

9/30/2025

6/30/2025

3/31/2025

12/31/2024

9/30/2024

6/30/2024

3/31/2024

Account size ending units in service (000's)

1 to 100 units

101 to 1,000 units

112

113

116

121

120

125

128

135

>1,000 units

527

534

540

545

560

564

577

575

Total

675

684

694

705

720

730

747

753

Market segment as a percent of total ending units in service

Healthcare

83.6

84.1

85.7

85.5

85.6

85.7

85.8

86.1

Government

4.9

5.0

4.0

4.1

4.4

4.1

Large enterprise

3.8

3.7

3.8

3.9

4.0

3.9

Other (1)

7.7

7.2

6.5

6.7

6.5

6.2

5.8

5.9

Total

100.0

Account size ARPU

1 to 100 units

13.26

12.92

12.88

13.04

13.08

12.70

12.51

12.66

101 to 1,000 units

9.97

9.83

9.72

9.64

9.60

9.19

9.06

9.14

>1,000 units

7.56

7.51

7.54

7.59

7.50

7.33

7.21

7.23

Total

8.26

8.19

8.20

8.24

8.16

7.95

7.84

7.89

(1) Other includes hospitality, resort and indirect units

RECONCILIATION OF ADJUSTED OPERATING EXPENSES

(Unaudited and in thousands)

For the three months ended

For the year ended

12/31/2025

12/31/2024

12/31/2025

12/31/2024

Operating expenses

29,920

29,254

119,998

118,688

Add back:

Depreciation and accretion

(858

)

(938

)

(3,429

)

(4,148

)

Severance and restructuring

(210

)

(458

)

(1,104

)

Adjusted operating expenses

28,852

28,313

116,111

113,436

RECONCILIATION OF ADJUSTED EBITDA

(Unaudited and in thousands)

For the three months ended

For the year ended

12/31/2025

12/31/2024

12/31/2025

12/31/2024

Net income

2,930

3,644

15,881

14,965

Add back:

Provision for income taxes

1,291

1,244

5,561

5,067

Other income (expense)

(128

)

(912

)

Interest income

(152

)

(245

)

(820

)

(1,153

)

Depreciation and accretion

858

938

3,429

4,148

EBITDA

4,799

5,576

23,139

23,113

Adjustments:

Stock-based compensation

1,188

1,476

4,903

4,956

Severance and restructuring

210

458

1,104

Legal costs unrelated to core business activities and non-recurring in nature

505

—

505

—

Adjusted EBITDA

6,702

7,055

29,005

29,173