Spok Reports Third Quarter 2025 Results

PLANO, Texas--( BUSINESS WIRE)--Spok Holdings, Inc. (NASDAQ: SPOK), a global leader in healthcare communications, today announced results for the third quarter ended September 30, 2025. In addition, the Company’s Board of Directors declared a regular quarterly dividend of $0.3125 per share, payable on December 9, 2025, to stockholders of record on November 18, 2025.

Recent Highlights:

"Spok continues to execute at a high level and we remain confident in our full year financial projections,” said Vincent D. Kelly, chief executive officer of Spok Holdings, Inc. “Our focus is to generate cash flow and return capital to stockholders, while responsibly investing for future growth. On a year-to-date basis, we have done and will continue to do so. We also continue to make progress in key performance areas, including net income and cash generation, wireless ARPU trends, software revenue growth and backlog levels. We were able to accomplish this while continuing to invest in our Spok Care Connect and Wireless solutions. Through the first nine months of the year, we have invested more than $9 million in our world-class product platform and believe that these investments will create shareholder value into the future.

"Spok continues its proud legacy of balancing the necessary investments in our products and infrastructure with returning capital to our stockholders," continued Kelly. "In the third quarter, we generated more than $6.6 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 balances continued to grow in the third quarter, totaling nearly $21.4 million at September 30, 2025. All else remaining equal, we expect cash balances to continue to grow through the remainder of the year.

"Based on our performance in the first nine months of 2025, and our visibility into our very robust product sales pipeline, we are reiterating our full year 2025 guidance estimates for revenue and adjusted EBITDA," concluded Kelly.

Financial Highlights:

For the three months ended September 30,

For the nine months ended September 30,

(Dollars in thousands)

2025

2024

Change (%)

2025

2024

Change (%)

Revenue

Wireless revenue

Paging revenue

16,917

17,605

(3.9

51,716

53,208

(2.8

Product and other revenue

877

656

33.7

2,992

1,945

53.8

Total wireless revenue

17,794

18,261

(2.6

54,708

55,153

(0.8

Software revenue

License

1,076

2,042

(47.3

6,101

6,365

(4.1

Professional services - projects

3,649

3,871

(5.7

11,951

11,114

7.5

Professional services - managed services

1,807

964

87.4

4,642

2,032

128.4

Hardware

393

395

(0.5

1,090

1,113

(2.1

Maintenance and subscription

9,148

9,337

(2.0

27,355

27,984

(2.2

Total software revenue

16,073

16,609

(3.2

51,139

48,608

5.2

Total revenue

33,867

34,870

(2.9

105,847

103,761

2.0

For the three months ended September 30,

For the nine months ended September 30,

(Dollars in thousands)

2025

2024

Change (%)

2025

2024

Change (%)

GAAP

Operating expenses

29,508

29,909

(1.3

90,078

89,434

0.7

Net income

3,203

3,660

(12.5

12,951

11,321

14.4

Cash and cash equivalents (as of period end)

21,379

27,830

(23.2

21,379

27,830

(23.2

Capital returned to stockholders

6,437

6,330

1.7

20,861

20,045

4.1

Non-GAAP

Adjusted operating expenses

28,479

28,509

(0.1

87,259

85,123

2.5

Adjusted EBITDA

6,610

7,534

(12.3

22,303

22,118

0.8

For the three months ended September 30,

For the nine months ended September 30,

(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)

684

730

(6.3

684

730

(6.3

Wireless average revenue per unit (ARPU)

8.19

7.95

3.0

8.19

7.91

3.5

Software operations bookings (1)

4,442

10,379

(57.2

24,440

26,959

(9.3

Software backlog (as of period end) (2)

60,897

63,579

(4.2

60,897

63,579

(4.2

(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 $11.2 million and $5.3 million of contractual obligations that are deemed cancellable by the customer without significant penalty as of September 30, 2025 and 2024, respectively.

Financial Outlook:

The Company also reiterated its financial guidance and expects the following for the full year 2025:

(Unaudited and in millions)

Current Guidance

Full Year 2025

From

Revenue

Wireless

71.5

73.5

Software

66.5

70.0

Total Revenue

138.0

143.5

Adjusted EBITDA

28.5

32.5

2025 Third Quarter Call:

Management will host a conference call and webcast to discuss these financial results on Wednesday, October 29, 2025, 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, October 29, 2025, at 5:00 p.m. ET

Webcast:

https://www.webcast-eqs.com/register/Spok_ 3 Q_2025/en

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 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 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 nine months ended

9/30/2025

9/30/2024

9/30/2025

9/30/2024

Revenue:

Wireless

17,794

18,261

54,708

55,153

Software

16,073

16,609

51,139

48,608

Total revenue

33,867

34,870

105,847

103,761

Operating expenses:

Cost of revenue (exclusive of items shown separately below)

7,359

7,133

21,902

21,435

Research and development

2,993

2,831

9,072

8,958

Technology operations

5,686

6,083

17,431

18,563

Selling and marketing

4,151

3,928

13,263

11,582

General and administrative

8,290

8,534

25,591

24,585

Depreciation and accretion

858

1,075

2,571

3,210

Severance and restructuring

171

325

248

1,101

Total operating expenses

29,508

29,909

90,078

89,434

% of total revenue

87.1

85.8

85.1

86.2

Operating income

4,359

4,961

15,769

14,327

% of total revenue

12.9

14.2

14.9

13.8

Interest income

193

264

668

908

Other income (expense)

(75

)

784

(91

)

Income before income taxes

4,580

5,150

17,221

15,144

Provision for income taxes

(1,377

)

(1,490

)

(4,270

)

(3,823

)

Net income

3,203

3,660

12,951

11,321

Basic net income per common share

0.16

0.18

0.63

0.56

Diluted net income per common share

0.15

0.18

0.62

0.55

Basic weighted average common shares outstanding

20,590,924

20,264,055

20,537,643

20,229,146

Diluted weighted average common shares outstanding

21,029,219

20,523,873

21,020,663

20,534,883

Cash dividends declared per common share

0.3125

0.9375

SPOK HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

9/30/2025

12/31/2024

ASSETS

(Unaudited)

Current assets:

Cash and cash equivalents

21,379

29,145

Accounts receivable, net

25,691

21,950

Prepaid expenses

9,639

9,362

Other current assets

2,832

840

Total current assets

59,541

61,297

Non-current assets:

Property and equipment, net

5,800

5,952

Operating lease right-of-use assets

6,894

8,249

Goodwill

99,175

Deferred income tax assets, net

37,815

41,686

Other non-current assets

428

744

Total non-current assets

150,112

155,806

Total assets

209,653

217,103

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

3,332

5,630

Accrued compensation and benefits

6,011

7,363

Deferred revenue

32,280

28,366

Operating lease liabilities

2,737

2,904

Other current liabilities

4,758

4,511

Total current liabilities

49,118

48,774

Non-current liabilities:

Asset retirement obligations

5,676

5,945

Operating lease liabilities

4,619

5,869

Other non-current liabilities

1,543

1,769

Total non-current liabilities

11,838

13,583

Total liabilities

60,956

62,357

Commitments and contingencies

Stockholders' equity:

Preferred stock

—

Common stock

Additional paid-in capital

106,776

105,736

Accumulated other comprehensive loss

(1,766

)

(1,784

)

Retained earnings

43,685

50,792

Total stockholders' equity

148,697

154,746

Total liabilities and stockholders' equity

209,653

217,103

SPOK HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited and in thousands)

For the nine months ended

9/30/2025

9/30/2024

Operating activities:

Net income

12,951

11,321

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

Depreciation and accretion

2,571

3,210

Deferred income tax expense

3,885

3,624

Stock-based compensation

3,741

3,480

Gain on sale of domain name

(701

)

—

Provisions for credit losses, service credits and other

755

450

Changes in assets and liabilities:

Accounts receivable

(4,498

)

1,481

Prepaid expenses and other assets

(1,966

)

(1,061

)

Net operating lease liabilities

(62

)

(48

)

Accounts payable and other liabilities

(3,443

)

(4,284

)

Deferred revenue

4,192

2,342

Net cash provided by operating activities

17,425

20,515

Investing activities:

Purchases of property and equipment

(2,348

)

(2,348

)

Proceeds from sale of domain name

701

—

Net cash used in investing activities

(1,647

)

(2,348

)

Financing activities:

Cash distributions to stockholders

(20,861

)

(20,045

)

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

142

130

Purchase of common stock for tax withholding on vested equity awards

(2,843

)

(2,428

)

Net cash used in financing activities

(23,562

)

(22,343

)

Effect of exchange rate on cash and cash equivalents

Net decrease in cash and cash equivalents

(7,766

)

(4,159

)

Cash and cash equivalents, beginning of period

29,145

31,989

Cash and cash equivalents, end of period

21,379

27,830

Supplemental disclosure:

Income taxes paid

299

298

SPOK HOLDINGS, INC.

UNITS IN SERVICE, MARKET SEGMENTS,

AND AVERAGE REVENUE PER UNIT (ARPU)

(Unaudited and in thousands)

For the three months ended

9/30/2025

6/30/2025

3/31/2025

12/31/2024

9/30/2024

6/30/2024

3/31/2024

12/31/2023

Account size ending units in service (000's)

1 to 100 units

101 to 1,000 units

113

116

121

120

125

128

135

142

>1,000 units

534

540

545

560

564

577

575

579

Total

684

694

705

720

730

747

753

765

Market segment as a percent of total ending units in service

Healthcare

84.1

85.7

85.5

85.6

85.7

85.8

86.1

85.9

Government

5.0

4.0

4.1

4.4

4.1

4.2

Large enterprise

3.7

3.8

3.9

4.0

3.9

4.1

Other (1)

7.2

6.5

6.7

6.5

6.2

5.8

5.9

5.8

Total

100.0

Account size ARPU

1 to 100 units

12.92

12.88

13.04

13.08

12.70

12.51

12.66

12.57

101 to 1,000 units

9.83

9.72

9.64

9.60

9.19

9.06

9.14

9.16

>1,000 units

7.51

7.54

7.59

7.50

7.33

7.21

7.23

7.15

Total

8.19

8.20

8.24

8.16

7.95

7.84

7.89

7.84

(1) Other includes hospitality, resort and indirect units

RECONCILIATION OF ADJUSTED OPERATING EXPENSES

(Unaudited and in thousands)

For the three months ended

For the nine months ended

9/30/2025

9/30/2024

9/30/2025

9/30/2024

Operating expenses

29,508

29,909

90,078

89,434

Add back:

Depreciation and accretion

(858

)

(1,075

)

(2,571

)

(3,210

)

Severance and restructuring

(171

)

(325

)

(248

)

(1,101

)

Adjusted operating expenses

28,479

28,509

87,259

85,123

RECONCILIATION OF ADJUSTED EBITDA

(Unaudited and in thousands)

For the three months ended

For the nine months ended

9/30/2025

9/30/2024

9/30/2025

9/30/2024

Net income

3,203

3,660

12,951

11,321

Add back:

Provision for income taxes

1,377

1,490

4,270

3,823

Other income (expense)

(28

)

(784

)

Interest income

(193

)

(264

)

(668

)

(908

)

Depreciation and accretion

858

1,075

2,571

3,210

EBITDA

5,217

6,036

18,340

17,537

Adjustments:

Stock-based compensation

1,222

1,173

3,715

3,480

Severance and restructuring

171

325

248

1,101

Adjusted EBITDA

6,610

7,534

22,303

22,118