Spok Holdings (NASDAQ: SPOK) trims 2026 revenue outlook after Q2 profit
Rhea-AI Filing Summary
Spok Holdings reported Q2 2026 results with total revenue of $35,011 thousand, down 1.9% year over year, as wireless revenue declined 6.7% while software revenue grew 3.2%. Net income was $4,120 thousand versus $4,552 thousand a year earlier, but adjusted EBITDA rose 22.1% to $9,143 thousand. Cash and cash equivalents were $16,592 thousand with no debt.
The company highlighted strong momentum in key software lines: license revenue increased 51.7% and managed services revenue 53.4% year over year. Software operations bookings were nearly 92% above Q1 levels, though 18.8% below Q2 2025, and software backlog stood at $57,108 thousand. Wireless units in service fell 7.1% year over year, while ARPU held steady at $8.20.
Spok executed an agreement to sell certain narrowband spectrum licenses for $8 million in cash, which closed on July 20, 2026, and returned $6.5 million to stockholders in Q2. The board declared a regular quarterly dividend of $0.3125 per share, payable September 9, 2026 to stockholders of record on August 19, 2026. For full‑year 2026, management reduced total revenue guidance to $132.5–$139.5 million while maintaining adjusted EBITDA guidance at $28.0–$32.0 million, with a midpoint of $30 million.
Positive
- Adjusted EBITDA up 22.1% year over year to $9,143 thousand in Q2 2026, indicating improved profitability despite slightly lower total revenue.
- License revenue +51.7% and managed services +53.4% year over year in Q2 2026, underscoring strong growth in higher‑margin software businesses.
- $8 million spectrum license sale and $6.5 million returned to stockholders in Q2 2026 support liquidity and demonstrate ongoing capital return.
Negative
- Year‑to‑date net income down 37.4% to $6,107 thousand versus $9,748 thousand in 2025, reflecting weaker overall profitability so far in 2026.
- Software operations bookings down 18.8% and backlog down 12.4% year over year in Q2 2026, pointing to softer demand versus the prior year.
- 2026 total revenue guidance reduced to $132.5–$139.5 million from $136.0–$143.0 million, signaling lower expected top‑line performance.
Insights
Analyzing...
8-K Event Classification
3 items: 2.02, 8.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 8.01
Other Events
Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Total revenue Q2 2026: $35,011 thousand
Net income Q2 2026: $4,120 thousand
Adjusted EBITDA Q2 2026: $9,143 thousand
+5 more
8 metrics
Total revenue Q2 2026
$35,011 thousand
For the three months ended June 30, 2026; down 1.9% year over year
Net income Q2 2026
$4,120 thousand
For the three months ended June 30, 2026; down 9.5% year over year
Adjusted EBITDA Q2 2026
$9,143 thousand
For the three months ended June 30, 2026; up 22.1% year over year
Cash and cash equivalents
$16,592 thousand
As of June 30, 2026; company reported no debt
Quarterly dividend per share
$0.3125 per share
Regular quarterly dividend payable September 9, 2026 to stockholders of record August 19, 2026
Spectrum license sale proceeds
$8 million
Cash consideration for sale of certain narrowband spectrum licenses closed July 20, 2026
2026 total revenue guidance midpoint
$136 million
Midpoint of updated full‑year 2026 total revenue guidance range
2026 adjusted EBITDA guidance range
$28.0–$32.0 million
Updated adjusted EBITDA guidance range for full year 2026; midpoint $30 million
Key Terms
Adjusted EBITDA, software backlog, wireless average revenue per unit (ARPU), narrowband spectrum licenses, +1 more
5 terms
Adjusted EBITDA financial
"Adjusted EBITDA totaled $9.1 million in the second quarter of 2026, up 22.1%"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
software backlog financial
"Software backlog totaled $57.1 million at June 30, 2026, as the Company continues"
wireless average revenue per unit (ARPU) financial
"Second quarter 2026 wireless average revenue per unit (ARPU) was $8.20, consistent"
narrowband spectrum licenses technical
"Spok executed an agreement to sell certain narrowband spectrum licenses in its two-way"
Narrowband spectrum licenses grant the legal right to use small slices of radio frequencies designed for low-data, long-range wireless communication, often used by sensors, alarms, utilities, and simple IoT devices. They matter to investors because control of these scarce frequencies can create steady, specialized revenue streams and competitive barriers for companies that build networks or services on them—think of owning prime lanes on a busy highway for a niche form of traffic.
Non-GAAP financial measures financial
"This press release contains the following non-GAAP financial measures: adjusted operating"
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
Earnings Snapshot
Total revenue: $35,011 thousand · Guidance included
three months ended June 30, 2026
Total revenue
$35,011 thousand
down (1.9)% from $35,686 thousand in Q2 2025
Net income
$4,120 thousand
down (9.5)% from $4,552 thousand in Q2 2025
Adjusted EBITDA
$9,143 thousand
up 22.1% from $7,489 thousand in Q2 2025
Diluted EPS
$0.20
down from $0.22 in Q2 2025
Guidance
Updated 2026 guidance: wireless revenue $67.0–$70.0 million, software revenue $65.5–$69.5 million, total revenue $132.5–$139.5 million, adjusted EBITDA $28.0–$32.0 million.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What were Spok Holdings (SPOK) Q2 2026 revenue and net income?
Spok reported Q2 2026 total revenue of $35,011 thousand and net income of $4,120 thousand. Revenue declined 1.9% and net income 9.5% from Q2 2025, when revenue was $35,686 thousand and net income was $4,552 thousand.
How did Spok Holdings (SPOK) adjusted EBITDA perform in Q2 2026?
Adjusted EBITDA rose to $9,143 thousand in Q2 2026, up 22.1% from $7,489 thousand a year earlier. This improvement came despite flat revenue, benefiting from lower adjusted operating expenses and growth in higher‑margin software segments.
What dividend did Spok Holdings (SPOK) declare for Q2 2026?
The board declared a regular quarterly dividend of $0.3125 per share, payable September 9, 2026. Stockholders of record on August 19, 2026 will receive the dividend, which management noted currently represents a yield in excess of 10% for stockholders.
What strategic transaction did Spok Holdings (SPOK) announce regarding its spectrum assets?
Spok executed an agreement to sell certain narrowband spectrum licenses in its two‑way paging inventory for $8 million in cash. The transaction subsequently closed on July 20, 2026 and is part of a broader strategic realignment and asset monetization effort.
What is Spok Holdings (SPOK) full‑year 2026 financial guidance after the update?
For 2026, Spok now guides total revenue to $132.5–$139.5 million and adjusted EBITDA to $28.0–$32.0 million. Wireless revenue is expected at $67.0–$70.0 million and software revenue at $65.5–$69.5 million, with the adjusted EBITDA midpoint unchanged at $30 million.
How are Spok Holdings (SPOK) software and wireless segments trending?
In Q2 2026, software revenue rose 3.2% year over year, with license and managed services revenue up over 50%. Wireless revenue declined 6.7%, wireless units in service fell 7.1%, but average revenue per unit (ARPU) remained stable at $8.20.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): July 29, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||
| (Address of principal executive offices) | (Zip Code) | |||||||||||||
Registrant’s telephone number, including area code: (800 ) 611-8488
Not Applicable
Former name or former address, if changed since last report
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
| Emerging growth company | |||||||||||
| 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. | ☐ | ||||||||||
Item 2.02 Results of Operations and Financial Condition.
On July 29, 2026 , Spok Holdings, Inc. (the “Company”) issued a press release announcing financial results for the second quarter ending June 30, 2026. A copy of the press release is furnished as Exhibit 99.1 to this report.
Item 8.01 Other Events.
On July 29, 2026 , the Board declared a regular quarterly dividend of $0.3125 per share of the Company's common stock payable on September 9, 2026, to stockholders of record on August 19, 2026.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits:
| Exhibit | ||||||||
| No. | Description | |||||||
| 99.1 | Spok Holdings, Inc. Earnings Press Release dated July 29, 2026 | |||||||
| 104 | Cover Page Interactive Data File (the cover page XBRL tags are embedded within the inline XBRL document) | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Spok Holdings, Inc. | |||||||||||||||||||||||||||||
| Date: | By: | /s/ Michael W. Wallace | |||||||||||||||||||||||||||
| Name: | Michael W. Wallace | ||||||||||||||||||||||||||||
| Title: | Chief Financial Officer | ||||||||||||||||||||||||||||
| Exhibit 99.1 | ||||||||
| NEWS RELEASE | ||||||||
CONTACT:
Al Galgano
952-224-6096
al.galgano@spok.com
Spok Reports Second Quarter 2026 Results
Company Generates $4.1 Million of Net Income and $9.1 Million of Adjusted EBITDA
Software Operations Bookings Up Nearly 92% From the Prior Quarter
Executes Agreement to Sell Narrowband Licenses for $8 Million
Plano, Tx. (July 29, 2026) - Spok Holdings, Inc. (NASDAQ: SPOK), a global leader in healthcare communications, today announced results for the second quarter ended June 30, 2026. In addition, the Company’s Board of Directors declared a regular quarterly dividend of $0.3125 per share, payable on September 9, 2026, to stockholders of record on August 19, 2026.
Recent Highlights:
•Adjusted EBITDA totaled $9.1 million in the second quarter of 2026, up 22.1% from the prior year period. Second-quarter net income of $4.1 million, which included $1.5 million of severance and restructuring charges related to the previously announced strategic realignment, was down from second quarter 2025 net income of $4.6 million, which included a $0.7 million gain on the sale of one of its domain names
•Second-quarter software operations bookings totaled $9.5 million and included 14 six-figure customer contracts and 1 seven-figure customer contract
•Software revenue in the second quarter was up more than 3% from the prior year period, driven by a nearly 52% year-over-year growth in license revenue and a 53% year-over-year increase in managed services revenue
•Software backlog totaled $57.1 million at June 30, 2026, as the Company continues to focus on multi-year and managed services bookings
•Second quarter 2026 wireless average revenue per unit (ARPU) was $8.20, consistent with the prior year period
•Wireless units in service declined by 1.8% in the second quarter, an 84-basis point improvement from the first quarter decline and consistent with prior year levels
•Capital returned to stockholders in the second quarter of 2026 totaled $6.5 million
•Research and development costs totaled $3.3 million in the second quarter of 2026, supporting Spok's incorporation of Artificial Intelligence and further enhancements in the Company's industry-leading solutions
| Spok.com | ||||||||
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| Exhibit 99.1 | ||||||||
| NEWS RELEASE | ||||||||
•Cash and cash equivalents balance of $16.6 million at June 30, 2026, and no debt
•Spok executed an agreement to sell certain narrowband spectrum licenses in its two-way paging inventory for $8 million in cash which subsequently closed on July 20, 2026
"Our focus continues to be on generating cash flow and returning capital to stockholders, while responsibly investing for future growth,” said Vincent D. Kelly, chief executive officer of Spok Holdings, Inc. “In the second quarter, we were able to deliver a nearly 92% increase in software operations bookings compared to the first quarter, a more than 3% year-over-year increase in software revenue, and an 84-basis point improvement in wireless unit attrition from the first quarter, as well as stable year-over-year wireless average revenue per unit. Additionally, we generated adjusted EBITDA totaling $9.1 million, a nearly 74% increase from the first quarter and a more than 22% increase from the prior year period.
“As part of the strategic realignment that we outlined last quarter, we completed the sale of certain of our narrowband spectrum licenses as we continue to find efficiencies within our organization and monetize our valuable asset base. We are confident that actions such as this will continue to create significant value for stockholders, while supporting both our investment in our Care Connect® Suite and our quarterly dividend, which currently represents a yield in excess of 10% for our stockholders. Additionally, Spok is actively implementing artificial intelligence to drive further operational efficiencies across the organization, with a particular focus on accelerating product development timelines, reducing time to market for new Care Connect Suite capabilities and other internal uses.
"Based on the anticipated full-year financial impact of the strategic realignment, first half software operations bookings levels and our visibility into our product sales pipeline, we are adjusting our full year 2026 financial guidance estimates for revenue, while maintaining the midpoint of our guidance for adjusted EBITDA. We now expect the midpoint for total revenue to be $136 million, while the midpoint for adjusted EBITDA remains at $30 million. The detail for this guidance is contained in the table attached to our press release," concluded Kelly.
| Spok.com | ||||||||
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| Exhibit 99.1 | ||||||||
| NEWS RELEASE | ||||||||
Financial Highlights:
For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | 2026 | 2025 | Change (%) | 2026 | 2025 | Change (%) | |||||||||||||||||||||||||||||
| Revenue | |||||||||||||||||||||||||||||||||||
| Wireless revenue | |||||||||||||||||||||||||||||||||||
| Paging revenue | $ | 16,011 | $ | 17,192 | (6.9) | % | $ | 32,580 | $ | 34,799 | (6.4) | % | |||||||||||||||||||||||
| Product and other revenue | 1,202 | 1,248 | (3.7) | % | 2,119 | 2,115 | 0.2 | % | |||||||||||||||||||||||||||
| Total wireless revenue | $ | 17,213 | $ | 18,440 | (6.7) | % | $ | 34,699 | $ | 36,914 | (6.0) | % | |||||||||||||||||||||||
| Software revenue | |||||||||||||||||||||||||||||||||||
| License | $ | 3,632 | $ | 2,394 | 51.7 | % | $ | 4,994 | $ | 5,025 | (0.6) | % | |||||||||||||||||||||||
| Professional services - projects | 2,768 | 3,831 | (27.7) | % | 6,096 | 8,302 | (26.6) | % | |||||||||||||||||||||||||||
| Professional services - managed services | 2,332 | 1,520 | 53.4 | % | 4,391 | 2,835 | 54.9 | % | |||||||||||||||||||||||||||
| Hardware | 128 | 376 | (66.0) | % | 314 | 697 | (54.9) | % | |||||||||||||||||||||||||||
| Maintenance and subscription | 8,938 | 9,125 | (2.0) | % | 17,743 | 18,207 | (2.5) | % | |||||||||||||||||||||||||||
| Total software revenue | $ | 17,798 | $ | 17,246 | 3.2 | % | $ | 33,538 | $ | 35,066 | (4.4) | % | |||||||||||||||||||||||
| Total revenue | $ | 35,011 | $ | 35,686 | (1.9) | % | $ | 68,237 | $ | 71,980 | (5.2) | % | |||||||||||||||||||||||
For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | 2026 | 2025 | Change (%) | 2026 | 2025 | Change (%) | |||||||||||||||||||||||||||||
| GAAP | |||||||||||||||||||||||||||||||||||
| Operating expenses | $ | 29,586 | $ | 30,294 | (2.3) | % | $ | 60,368 | $ | 60,570 | (0.3) | % | |||||||||||||||||||||||
| Net income | $ | 4,120 | $ | 4,552 | (9.5) | % | $ | 6,107 | $ | 9,748 | (37.4) | % | |||||||||||||||||||||||
Cash and cash equivalents (as of period end) | $ | 16,592 | $ | 20,242 | (18.0) | % | $ | 16,592 | $ | 20,242 | (18.0) | % | |||||||||||||||||||||||
| Capital returned to stockholders | $ | 6,536 | $ | 6,477 | 0.9 | % | $ | 14,494 | $ | 14,424 | 0.5 | % | |||||||||||||||||||||||
| Non-GAAP | |||||||||||||||||||||||||||||||||||
| Adjusted operating expenses | $ | 27,112 | $ | 29,420 | (7.8) | % | $ | 56,580 | $ | 58,780 | (3.7) | % | |||||||||||||||||||||||
| Adjusted EBITDA | $ | 9,143 | $ | 7,489 | 22.1 | % | $ | 14,400 | $ | 15,693 | (8.2) | % | |||||||||||||||||||||||
| Spok.com | ||||||||
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| Exhibit 99.1 | ||||||||
| NEWS RELEASE | ||||||||
For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||||||||||||||||||||||
(Dollars in thousands, excluding units in service and ARPU) | 2026 | 2025 | Change (%) | 2026 | 2025 | Change (%) | |||||||||||||||||||||||||||||
| Key Statistics | |||||||||||||||||||||||||||||||||||
Wireless units in service (000's) (as of period end) | 645 | 694 | (7.1) | % | 645 | 694 | (7.1) | % | |||||||||||||||||||||||||||
Wireless average revenue per unit (ARPU) | $ | 8.20 | $ | 8.20 | — | % | $ | 8.23 | $ | 8.21 | 0.2 | % | |||||||||||||||||||||||
Software operations bookings(1) | $ | 9,467 | $ | 11,661 | (18.8) | % | $ | 14,406 | $ | 19,998 | (28.0) | % | |||||||||||||||||||||||
Software backlog (as of period end)(2) | $ | 57,108 | $ | 65,187 | (12.4) | % | $ | 57,108 | $ | 65,187 | (12.4) | % | |||||||||||||||||||||||
(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 $17.0 million and $10.1 million of contractual obligations that are deemed cancellable by the customer without significant penalty as of June 30, 2026 and 2025, respectively.
Financial Outlook:
The Company is updating its prior financial guidance and now expects the following for the full year 2026:
| (Unaudited and in millions) | Current Guidance Full Year 2026 | Prior Guidance Full Year 2026 | ||||||||||||||||||||||||
| From | To | From | To | |||||||||||||||||||||||
| Revenue | ||||||||||||||||||||||||||
| Wireless | $ | 67.0 | $ | 70.0 | $ | 68.0 | $ | 71.0 | ||||||||||||||||||
| Software | $ | 65.5 | $ | 69.5 | $ | 68.0 | $ | 72.0 | ||||||||||||||||||
| Total Revenue | $ | 132.5 | $ | 139.5 | $ | 136.0 | $ | 143.0 | ||||||||||||||||||
| Adjusted EBITDA | $ | 28.0 | $ | 32.0 | $ | 27.5 | $ | 32.5 | ||||||||||||||||||
2026 Second Quarter Call:
Management will host a conference call and webcast to discuss these financial results on Wednesday, July 29, 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, July 29, 2026, at 5:00 p.m. ET | ||||
| Webcast: | https://www.webcast-eqs.com/registration/Spok_Q2_2026 | ||||
| U.S. Toll-Free Dial In: | 877-407-0890 | ||||
| International Dial In: | 1-201-389-0918 | ||||
| Spok.com | ||||||||
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| Exhibit 99.1 | ||||||||
| NEWS RELEASE | ||||||||
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 approximately 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
| Spok.com | ||||||||
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| Exhibit 99.1 | ||||||||
| NEWS RELEASE | ||||||||
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
| Spok.com | ||||||||
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| Exhibit 99.1 | ||||||||
| NEWS RELEASE | ||||||||
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.com | ||||||||
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| 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 six months ended | |||||||||||||||||||||||||
| 6/30/2026 | 6/30/2025 | 6/30/2026 | 6/30/2025 | |||||||||||||||||||||||
| Revenue: | ||||||||||||||||||||||||||
| Wireless | $ | 17,213 | $ | 18,440 | $ | 34,699 | $ | 36,914 | ||||||||||||||||||
| Software | 17,798 | 17,246 | 33,538 | 35,066 | ||||||||||||||||||||||
| Total revenue | 35,011 | 35,686 | 68,237 | 71,980 | ||||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||
| Cost of revenue (exclusive of items shown separately below) | 6,836 | 7,403 | 14,565 | 14,687 | ||||||||||||||||||||||
| Research and development | 3,280 | 3,065 | 6,737 | 6,159 | ||||||||||||||||||||||
| Technology operations | 5,870 | 6,233 | 12,032 | 12,423 | ||||||||||||||||||||||
| Selling and marketing | 3,923 | 4,349 | 8,411 | 9,274 | ||||||||||||||||||||||
| General and administrative | 7,203 | 8,370 | 14,835 | 16,237 | ||||||||||||||||||||||
| Depreciation and accretion | 929 | 854 | 1,921 | 1,713 | ||||||||||||||||||||||
| Severance and restructuring | 1,545 | 20 | 1,867 | 77 | ||||||||||||||||||||||
| Total operating expenses | 29,586 | 30,294 | 60,368 | 60,570 | ||||||||||||||||||||||
| % of total revenue | 84.5 | % | 84.9 | % | 88.5 | % | 84.1 | % | ||||||||||||||||||
| Operating income | 5,425 | 5,392 | 7,869 | 11,410 | ||||||||||||||||||||||
| % of total revenue | 15.5 | % | 15.1 | % | 11.5 | % | 15.9 | % | ||||||||||||||||||
| Interest income | 222 | 256 | 396 | 475 | ||||||||||||||||||||||
| Other (expense) income | (11) | 734 | (6) | 756 | ||||||||||||||||||||||
| Income before income taxes | 5,636 | 6,382 | 8,259 | 12,641 | ||||||||||||||||||||||
| Provision for income taxes | (1,516) | (1,830) | (2,152) | (2,893) | ||||||||||||||||||||||
| Net income | $ | 4,120 | $ | 4,552 | $ | 6,107 | $ | 9,748 | ||||||||||||||||||
| Basic net income per common share | $ | 0.20 | $ | 0.22 | $ | 0.29 | $ | 0.48 | ||||||||||||||||||
| Diluted net income per common share | $ | 0.20 | $ | 0.22 | $ | 0.29 | $ | 0.47 | ||||||||||||||||||
| Basic weighted average common shares outstanding | 20,899,901 | 20,580,044 | 20,835,558 | 20,510,561 | ||||||||||||||||||||||
| Diluted weighted average common shares outstanding | 21,084,776 | 20,750,971 | 21,189,123 | 20,746,786 | ||||||||||||||||||||||
| Cash dividends declared per common share | 0.3125 | 0.3125 | 0.6250 | 0.6250 | ||||||||||||||||||||||
| SPOK HOLDINGS, INC. | ||||||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||||
| (In thousands) | ||||||||||||||
| 6/30/2026 | 12/31/2025 | |||||||||||||
| ASSETS | (Unaudited) | |||||||||||||
| Current assets: | ||||||||||||||
| Cash and cash equivalents | $ | 16,592 | $ | 25,280 | ||||||||||
| Accounts receivable, net | 23,491 | 22,644 | ||||||||||||
| Prepaid expenses | 9,878 | 8,909 | ||||||||||||
| Other current assets | 671 | 1,051 | ||||||||||||
| Total current assets | 50,632 | 57,884 | ||||||||||||
| Non-current assets: | ||||||||||||||
| Property and equipment, net | 5,351 | 5,723 | ||||||||||||
| Operating lease right-of-use assets | 5,327 | 6,477 | ||||||||||||
| Goodwill | 99,175 | 99,175 | ||||||||||||
| Deferred income tax assets, net | 34,955 | 36,530 | ||||||||||||
| Other non-current assets | 171 | 322 | ||||||||||||
| Total non-current assets | 144,979 | 148,227 | ||||||||||||
| Total assets | $ | 195,611 | $ | 206,111 | ||||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||
| Current liabilities: | ||||||||||||||
| Accounts payable | $ | 4,460 | $ | 3,975 | ||||||||||
| Accrued compensation and benefits | 5,687 | 7,361 | ||||||||||||
| Deferred revenue | 30,294 | 30,452 | ||||||||||||
| Operating lease liabilities | 2,360 | 2,676 | ||||||||||||
| Other current liabilities | 3,505 | 4,645 | ||||||||||||
| Total current liabilities | 46,306 | 49,109 | ||||||||||||
| Non-current liabilities: | ||||||||||||||
| Asset retirement obligations | 4,955 | 4,902 | ||||||||||||
| Operating lease liabilities | 3,386 | 4,263 | ||||||||||||
| Other non-current liabilities | 1,097 | 1,458 | ||||||||||||
| Total non-current liabilities | 9,438 | 10,623 | ||||||||||||
| Total liabilities | 55,744 | 59,732 | ||||||||||||
| Commitments and contingencies | ||||||||||||||
| Stockholders' equity: | ||||||||||||||
| Preferred stock | $ | — | $ | — | ||||||||||
| Common stock | 2 | 2 | ||||||||||||
| Additional paid-in capital | 109,179 | 108,212 | ||||||||||||
| Accumulated other comprehensive loss | (1,774) | (1,756) | ||||||||||||
| Retained earnings | 32,460 | 39,921 | ||||||||||||
| Total stockholders' equity | 139,867 | 146,379 | ||||||||||||
| Total liabilities and stockholders' equity | $ | 195,611 | $ | 206,111 | ||||||||||
| SPOK HOLDINGS, INC. | |||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
| (Unaudited and in thousands) | |||||||||||
| For the six months ended | |||||||||||
| 6/30/2026 | 6/30/2025 | ||||||||||
| Operating activities: | |||||||||||
| Net income | $ | 6,107 | $ | 9,748 | |||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
| Depreciation and accretion | 1,921 | 1,713 | |||||||||
| Deferred income tax expense | 1,573 | 2,615 | |||||||||
| Stock-based compensation | 2,853 | 2,493 | |||||||||
| Gain on sale of domain name | — | (701) | |||||||||
| Provisions for credit losses, service credits and other | 691 | 539 | |||||||||
| Changes in assets and liabilities: | |||||||||||
| Accounts receivable | (1,357) | (4,415) | |||||||||
| Prepaid expenses and other assets | (614) | (18) | |||||||||
| Net operating lease liabilities | (43) | (6) | |||||||||
| Accounts payable and other liabilities | (1,974) | (3,201) | |||||||||
| Deferred revenue | (235) | 523 | |||||||||
| Net cash provided by operating activities | 8,922 | 9,290 | |||||||||
| Investing activities: | |||||||||||
| Purchases of property and equipment | (1,212) | (1,791) | |||||||||
| Proceeds from sale of domain name | — | 701 | |||||||||
| Net cash used in investing activities | (1,212) | (1,090) | |||||||||
| Financing activities: | |||||||||||
| Cash distributions to stockholders | (14,494) | (14,424) | |||||||||
| Proceeds from issuance of common stock under the Employee Stock Purchase Plan | 184 | 142 | |||||||||
| Purchase of common stock for tax withholding on vested equity awards | (2,070) | (2,843) | |||||||||
| Net cash used in financing activities | (16,380) | (17,125) | |||||||||
| Effect of exchange rate on cash and cash equivalents | (18) | 22 | |||||||||
| Net decrease in cash and cash equivalents | (8,688) | (8,903) | |||||||||
| Cash and cash equivalents, beginning of period | 25,280 | 29,145 | |||||||||
| Cash and cash equivalents, end of period | $ | 16,592 | $ | 20,242 | |||||||
| Supplemental disclosure: | |||||||||||
| Income taxes paid | $ | 309 | $ | 114 | |||||||
| SPOK HOLDINGS, INC. | ||||||||||||||||||||||||||||||||||||||||||||||||||
| UNITS IN SERVICE, MARKET SEGMENTS, | ||||||||||||||||||||||||||||||||||||||||||||||||||
| AND AVERAGE REVENUE PER UNIT (ARPU) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| (Unaudited and in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| For the three months ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
| 6/30/2026 | 3/31/2026 | 12/31/2025 | 9/30/2025 | 6/30/2025 | 3/31/2025 | 12/31/2024 | 9/30/2024 | |||||||||||||||||||||||||||||||||||||||||||
| Account size ending units in service (000's) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| 1 to 100 units | 34 | 35 | 36 | 37 | 38 | 39 | 40 | 41 | ||||||||||||||||||||||||||||||||||||||||||
| 101 to 1,000 units | 107 | 110 | 112 | 113 | 116 | 121 | 120 | 125 | ||||||||||||||||||||||||||||||||||||||||||
| >1,000 units | 504 | 512 | 527 | 534 | 540 | 545 | 560 | 564 | ||||||||||||||||||||||||||||||||||||||||||
| Total | 645 | 657 | 675 | 684 | 694 | 705 | 720 | 730 | ||||||||||||||||||||||||||||||||||||||||||
| Market segment as a percent of total ending units in service | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Healthcare | 83.2 | % | 83.6 | % | 83.6 | % | 84.1 | % | 85.7 | % | 85.5 | % | 85.6 | % | 85.7 | % | ||||||||||||||||||||||||||||||||||
| Government | 5.1 | % | 5.0 | % | 4.9 | % | 5.0 | % | 4.0 | % | 4.0 | % | 4.0 | % | 4.1 | % | ||||||||||||||||||||||||||||||||||
| Large enterprise | 3.7 | % | 3.7 | % | 3.8 | % | 3.7 | % | 3.8 | % | 3.8 | % | 3.9 | % | 4.0 | % | ||||||||||||||||||||||||||||||||||
Other(1) | 8.0 | % | 7.7 | % | 7.7 | % | 7.2 | % | 6.5 | % | 6.7 | % | 6.5 | % | 6.2 | % | ||||||||||||||||||||||||||||||||||
| Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||||||||||||||||||||||
| Account size ARPU | ||||||||||||||||||||||||||||||||||||||||||||||||||
| 1 to 100 units | $ | 12.97 | $ | 13.21 | $ | 13.26 | $ | 12.92 | $ | 12.88 | $ | 13.04 | $ | 13.08 | $ | 12.70 | ||||||||||||||||||||||||||||||||||
| 101 to 1,000 units | 9.91 | 9.95 | 9.97 | 9.83 | 9.72 | 9.64 | 9.60 | 9.19 | ||||||||||||||||||||||||||||||||||||||||||
| >1,000 units | 7.51 | 7.61 | 7.56 | 7.51 | 7.54 | 7.59 | 7.50 | 7.33 | ||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 8.20 | $ | 8.29 | $ | 8.26 | $ | 8.19 | $ | 8.20 | $ | 8.24 | $ | 8.16 | $ | 7.95 | ||||||||||||||||||||||||||||||||||
(1) Other includes hospitality, resort and indirect units | ||||||||||||||||||||||||||||||||||||||||||||||||||
| RECONCILIATION OF ADJUSTED OPERATING EXPENSES | ||||||||||||||||||||||||||
| (Unaudited and in thousands) | ||||||||||||||||||||||||||
| For the three months ended | For the six months ended | |||||||||||||||||||||||||
| 6/30/2026 | 6/30/2025 | 6/30/2026 | 6/30/2025 | |||||||||||||||||||||||
| Operating expenses | $ | 29,586 | $ | 30,294 | $ | 60,368 | $ | 60,570 | ||||||||||||||||||
| Add back: | ||||||||||||||||||||||||||
| Depreciation and accretion | (929) | (854) | (1,921) | (1,713) | ||||||||||||||||||||||
| Severance and restructuring | (1,545) | (20) | (1,867) | (77) | ||||||||||||||||||||||
| Adjusted operating expenses | $ | 27,112 | $ | 29,420 | $ | 56,580 | $ | 58,780 | ||||||||||||||||||
| RECONCILIATION OF ADJUSTED EBITDA | ||||||||||||||||||||||||||
| (Unaudited and in thousands) | ||||||||||||||||||||||||||
| For the three months ended | For the six months ended | |||||||||||||||||||||||||
| 6/30/2026 | 6/30/2025 | 6/30/2026 | 6/30/2025 | |||||||||||||||||||||||
| Net income | $ | 4,120 | $ | 4,552 | $ | 6,107 | $ | 9,748 | ||||||||||||||||||
| Add back: | ||||||||||||||||||||||||||
| Provision for income taxes | 1,516 | 1,830 | 2,152 | 2,893 | ||||||||||||||||||||||
| Other (expense) income | 11 | (734) | 6 | (756) | ||||||||||||||||||||||
| Interest income | (222) | (256) | (396) | (475) | ||||||||||||||||||||||
| Depreciation and accretion | 929 | 854 | 1,921 | 1,713 | ||||||||||||||||||||||
| EBITDA | $ | 6,354 | $ | 6,246 | $ | 9,790 | $ | 13,123 | ||||||||||||||||||
| Adjustments: | ||||||||||||||||||||||||||
| Stock-based compensation | 1,244 | 1,223 | 2,673 | 2,493 | ||||||||||||||||||||||
| Severance and restructuring | 1,545 | 20 | 1,867 | 77 | ||||||||||||||||||||||
Legal costs unrelated to core business activities and non-recurring in nature | $ | — | $ | — | $ | 70 | $ | — | ||||||||||||||||||
| Adjusted EBITDA | $ | 9,143 | $ | 7,489 | $ | 14,400 | $ | 15,693 | ||||||||||||||||||