SPOK

Image source: The Motley Fool. Wednesday, July 29, 2026 at 4 p.m. ET Chief Executive Officer - Vincent Kelly Chief Operating Officer and Chief Financial Officer - Michael Wallace Investor Relations - Al Galgano Operator: Greetings. Welcome to the Spok Holdings, Inc. Q2 '26 Earnings Results Call. Please note, this conference is being recorded. I will now turn the conference over to Al Galgano of Investor Relations. Thank you, Al. You may begin. Al Galgano: Hello, everyone, and welcome. I am joined today by Vince Kelly, Chief Executive Officer; and Michael Wallace, Chief Operating Officer and Chief Financial Officer. After a brief presentation by management, we will open up the call to your questions. I want to remind everyone that today's conference call may include forward-looking statements that are subject to risks and uncertainties relating to Spok's future financial and business performance. Such statements may include estimates of revenue, expenses and income as well as other predictive statements or plans, which are dependent upon future events or conditions. These statements represent the company's estimates only on the date of this conference call and are not intended to give any assurance as to actual future results. Spok's actual results could differ materially from those anticipated in these forward-looking statements. Although these statements are based upon assumptions that the company believes to be reasonable, they are subject to risks and uncertainties. Please review the Risk Factors section relating to our operations and the business environment, which are contained in our second quarter 2026 Form 10-Q and related documents, which will be filed with the Securities and Exchange Commission. Please note that Spok assumes no obligation to update any forward-looking statements from past or present filings and conference calls. With that, I'll turn the call over to Vince. Vincent Kelly: Good afternoon. Thank you for joining us for our second quarter 2026 earnings call. Let me preface my comments by saying how proud I am of our Spok team and that we remain true to our mission. Since the strategic pivot we announced a few years ago, our focus has not changed. That is to increase our software revenue, generate cash and return capital to our stockholders. In the second quarter, we were able to deliver a nearly 92% sequential increase in software operations bookings as well a sustained year-over-year levels of wireless average revenue per unit. Additionally, we generated a record level of adjusted EBITDA. We believe that Spok has struck an excellent balance between making the necessary investments to fuel future growth, while continuing to generate cash flow and return capital to stockholders. While driving our top line, we also continued to focus on expense management as adjusted operating expense levels in the second quarter were down nearly 8% from the prior year. Much of that improvement results from the initial impact of the strategic realignment that we announced in April. Additionally, Spok is implementing artificial intelligence to drive further operational efficiencies across the organization with a particular focus on accelerating product development time lines, reducing time to market for new Care Connect suite capabilities and other internal uses. It is important to note that our focus on expense management as one of the key drivers to generate increased cash flow does not come at the expense of our product platform as we continue to make the necessary investments in product development, sales and marketing, customer support and professional services to support the growth of our Spok Care Connect solution offerings. In the first half of 2026, Spok invested over $6.7 million in product research and development, a nearly 10% increase from 2025. Investments such as these are critical to creating a best-in-class product platform and to maintaining our solid industry reputation. In addition to the metrics I've outlined for you, there were many other operational accomplishments in the second quarter. We saw a more than 3% year-over-year increase in software revenue driven by double-digit growth in managed services revenue, as well as software license sales, a less than 2% reduction in wireless units in service, an 84 basis point improvement from the prior quarter and consistent with prior year levels and record adjusted EBITDA levels that more than covered our dividend and other capital obligations in the second quarter. Today, we will provide you a sense of our strategic business plan is progressing. First, I will provide a review of our second quarter sales performance. Second, I'll cover an overview of the asset sale we closed last week and how it supports our capital allocation strategy. Next, Mike Wallace, our COO and CFO, will provide a review of our second quarter financial highlights, including Spok's updated financial expectations for 2026. And finally, I will conclude our prepared remarks with a brief wrap-up before opening the call to your questions. Amidst all the progress in continuing to create a solid financial platform and stockholder-friendly capital allocation strategy, I want to reiterate that we remain true to our mission of being a global leader in health care communications. As we remind listeners each quarter, simply put, we deliver critical information to care teams when and where it matters most to improve patient outcomes as Spok enables smarter, faster communication throughput for our customers. And importantly, we continue to maintain our reputation as a thought leader in health care communications as we continue to see customer satisfaction ratings at very high levels. In the second quarter of 2026, we were able to execute 14 6-figure and 1 7-figure new customer contracts. We are very pleased with our very strong performance in the second quarter, regaining our momentum. I'd like to highlight a couple of the notable customer agreements from the second quarter, including one of the largest contracts in our company's history and one with a well-known national health system. The first agreement is with a customer headquartered in the Midwest that delivers more than 20 million patient encounters annually across more than 2,200 care sites and employs more than 160,000 people, including 45,000 nurses and 25,000 physicians and advanced practice providers across 24 states. The agreement expands the customer's existing software, managed services and premium maintenance and support contract, extending Spok solutions to 85 additional locations. The customer continues to unify operations with our Spok Care Connect platform using our operator console, alerting and alarm routing solutions. This means delivering a consistently positive experience across every channel the customer touches, sales, support, services and finance, a full 360-degree relationship with Spok. Also in the second quarter, a prestigious academic health system and long-standing Spok Smart Suite customer made a significant strategic investment with Spok to modernize their clinical communication platform. The engagement expands their deployment to include Spok Messenger, Spok Mobile, SMS services, Epic chat integration, e-mail in and out and the Ascom Gateway. These additions complement their existing Spok Smart Suite solution and Spok GenA pagers, creating a comprehensive platform that delivers critical information through the most appropriate device and modality for every clinical need. The agreement also includes an upgrade and expansion to the customers' test system and redundancy environment, along with our workflow analysis value-added service to design communication strategies tailored to the organization's clinical and operational processes. Together, these Spok solutions help ensure the right information reaches the right caregiver at the right time, reduces communication delays and ultimately improves caregiver efficiency and patient outcomes. In summary, our team delivered an outstanding second quarter, reflecting focused execution and continued progress against our strategic priorities. These deals reinforce our expertise and ongoing commitment to delivering high-value communication solutions that drive meaningful outcomes for our customers. As you may have seen, a little over a month ago, we announced our entry into an agreement to sell certain narrowband spectrum licenses in our 2-way paging inventory to Sensus USA. The transaction has been approved by the FCC and closed on July 20. For those of you who may not be familiar with Sensus USA, they are a brand within the Xylem Inc. family of products and are a designer and manufacturer of metering and automatic meter reading products catering to municipal and industrial markets worldwide. The total purchase price for the acquired licenses is a cash consideration totaling $8 million. Of that, the majority was paid at closing on July 20, with a small portion held back and paid on a pro rata basis only after Spok confirms that each spectrum license sold has been cleared of existing Spok users as they are being transferred to other frequencies. Spok has 180 days after closing to clear the spectrum. We expect to complete the clearing this quarter. While the purchase price of $8 million is important as it contributes to our cash balances, this transaction is most important because of its strategic value as we continue to find efficiencies within our organization and create opportunities to monetize our highly valuable asset base. This is truly a win-win for all parties involved as we create stockholder value without impacting our 2-way subscribers, transferring them to alternative frequencies in our spectrum portfolio. Also because the spectrum being sold has no cost basis on our balance sheet, the entire amount received less customary transaction costs will result in a gain. Given our available deferred tax assets, or DTAs, we would expect no federal tax to be due on the gain. After this transaction, our DTA balance is expected to be approximately $30 million. We believe that there may be additional opportunities to create stockholder value through monetizing our asset base. Combined with the benefits of the strategic realignment that we announced back in April, as well as the progress we are making on implementing AI initiatives to create operational efficiencies in our organization, we are confident in our future. Before I turn the call over to Mike to review our financial performance, let me briefly summarize the goals that support our critical and important mission. Our strategic goal is simple: run the business for profitable growth, generate cash flow and return that capital to stockholders. Spok has a proud legacy of creating stockholder value and returning capital through free cash flow generation, and we intend to continue this track record. Our dividend level represents a yield in excess of 10% for our stockholders, and we're proud of our legacy there and our ability and commitment to continue funding. Since the beginning of our strategic pivot, which started in 2022, Spok has returned approximately $118.7 million or nearly $5.63 per share to our stockholders in the form of our regular quarterly dividend. In fact, since we created this company in 2004, Spok has returned more than $740 million to our stockholders either through our regular quarterly dividend, special dividends or share repurchases. In the second quarter of 2026, our history of returning cash to our stockholders continued as we returned $6.5 million in dividends. We expect to pay dividends in excess of $27 million in 2026, and we remain committed to our dividend policy and returning capital to our stockholders. When you take into consideration our current cash balance, distribution to stockholders, share repurchases, debt repayments and acquisitions, Spok has now generated nearly $1.1 billion of free cash flow since our creation in 2004 and returned approximately 2/3 of it to our shareholders. Our focus on maximizing cash over the long term supports the 4 major tenets of our strategy. Those are: number one, continued investment in our product platform; number two, growing our revenue base; number three, disciplined expense management; and number four, a stockholder-friendly capital allocation plan. Going forward, we believe our extensive experience operating our established communication solutions and world-class customer base will continue to create significant value for stockholders. Now I will turn the call over to our Chief Operating Officer and Chief Financial Officer, Mike Wallace, who will talk about financial performance and earnings guidance. Mike? Michael Wallace: Thanks, Vince, and good afternoon. I'd like to take a few minutes and provide a recap of our second quarter 2026 performance, which we reported earlier today. As always, I encourage you to review our 10-Q when filed as it includes significantly more information about our business operations and financial performance than we will cover on this call. Turning to our income statement. In the second quarter of 2026, GAAP net income totaled $4.1 million or $0.20 per diluted share compared to net income of $4.6 million or $0.22 per diluted share in the prior year. However, adjusting for one-time impacts in both quarters, which include an extraordinary gain of approximately $700,000 related to the sale of a domain name in the second quarter of 2025 and the $1.5 million of severance and restructuring expense related to the strategic realignment in the second quarter of 2026, then prior year net income would have been $4 million or $0.19 per diluted share. And in the current quarter, net income would have been $5.3 million or $0.25 per diluted share. Overall, an extremely strong quarter from a profitability perspective. With respect to wireless revenue, the year-over-year revenue decline from lower units in service was partially mitigated by previously taken pricing actions over the course of the last couple of years. Product sales also continued to augment any losses related to units in service. Average revenue per unit, or ARPU, which totaled $8.20 was consistent with prior year levels, continues to be our primary tool in partially offsetting revenue decline from unit loss. Sustained ARPU levels have been driven by previously discussed pricing actions and to a lesser extent, incremental pass-through taxes and fees, as well as an increased mix of our higher ARPU GenA pagers in use. Turning to software revenue for the quarter. License revenue totaled $3.6 million compared to $2.4 million in the same period of 2025 as a result of momentum in overall software operations bookings, specifically license bookings, which impact revenue immediately. As we have pointed out in the past, software operation bookings are lumpy in nature, and as a result, looking at a particular quarter may not always provide the entire picture. However, we are encouraged by the momentum we saw in the second quarter. Additionally, the continued solid performance of professional services revenue, albeit slightly lower than last year due to the timing of some higher dollar value projects was a key driver in second quarter software revenue levels. Specifically, managed professional services revenue of $2.3 million in the second quarter was up 53% from revenue in the prior year. And we continue to see solid performance in resource utilization, delivering on our internal initiatives to better align total resources with our backlog and drive a higher rate of margin and net cash flow. As discussed previously, we believe we have greatly achieved our optimal operating efficiency in professional services relative to our current product state. We will continue to align total resources with our backlog, and we should continue to see benefit from a continuing increase in our managed services mix, which traditionally has a higher margin profile. Second quarter adjusted operating expenses, which excludes depreciation, amortization and accretion and severance and restructuring cost totaled $27.1 million, down from $29.4 million in the prior year or nearly 8%. Drilling down into the specifics, cost of revenue was down from the prior year, primarily due to the accelerated operations bookings level we saw in the second quarter of 2025. Increases in research and development reflect our continued investment in our product and services platform with reductions in technology operations driven by our normal practice of cost reduction in relationship to declining wireless revenues. Selling and marketing costs decreased nearly 10% from the prior year, consistent with what we saw in the first quarter, reflecting lower commissions and lower trade show and event expenses. And year-over-year general and administrative costs also declined by nearly 14% as a result of the strategic realignment we announced in April. Finally, I'd like to address our cash balances, which were $16.6 million at the end of the second quarter. Consistent with prior years, our cash balances declined in the first half of the year as a result of typical working capital needs that include items such as the payment of our short-term incentive plans and prepaid annual renewals of technology contracts. Additionally, first half cash flow financing activities are typically higher than in the second half of the year, reflecting payments on the company's long-term incentive plans. So, we anticipate cash balances will grow in the second half of the year, given that those working capital needs are behind us, coupled with our continued expectation of driving significant free cash flow. Additionally, we are encouraged by the cash contribution of over $7 million after related transaction expenses and associated income taxes in the third quarter from the spectrum license sale that Vince outlined earlier. Given that contribution and the anticipated reduction in working capital needs throughout the remainder of the year, we anticipate that we will exit 2026 with $26 million to $29 million in cash and cash equivalents. So moving on to financial guidance for 2026. 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. In general, we believe that bookings levels we saw in the first quarter and the lumpiness of software sales that we have experienced over the past year, it is prudent to build in a more cautious approach to our guidance. Given the pace of technological change and against the backdrop of consistently tight hospital budgets, we are seeing 2 effects show up in the pipeline. First, deals are taking longer to close as customers do more evaluation upfront before committing. Second, even when they do sign, they are increasingly favoring shorter terms over multiyear agreements. Budget pressure makes them reluctant to lock in long term and technology uncertainty makes them want to wait for more clarity. Together, these dynamics are compressing near-term revenue. So with these factors in mind, we are slightly lowering the midpoint of the revenue guidance range, while the high end of that range is consistent with prior year revenue totals. Additionally, given the benefits we are seeing from the strategic realignment we announced in April, we believe those benefits will offset any revenue reduction. So importantly, we are not changing the midpoint of our adjusted EBITDA guidance for 2026. We now expect the midpoint for total revenue to be $136 million, while the midpoint for adjusted EBITDA remains at $30 million. In 2026, we expect total revenue to range from $132.5 million to $139.5 million. We expect wireless revenue to now range from $67 million to $70 million and software revenue to range from $65.5 million to $69.5 million in 2026. Lastly, our adjusted EBITDA guidance for 2026 is expected to range from $28 million to $32 million. The midpoint reflects improvement over 2025, while the high end represents over 10% growth from 2025, largely expected to be driven by a greater mix of higher-margin software license bookings and the aforementioned benefits related to the strategic realignment cost reductions. With that said, I will now turn the call back over to Vince. Vincent Kelly: Thanks, Mike. Before we open the call up for your questions, let me reiterate our focus on the opportunity in front of us in critical communications. From a business configuration and strategy perspective, we believe we are strongly positioned to grow our franchise value, while returning capital to our shareholders. We have a long-term organic growth engine in Spok Care Connect. We maintain a source of strong recurring revenue in our wireless service line. We run the largest paging offering in the world that has been integrated with our software operations. We have enhanced our paging platform and user devices to serve our core health care customer base. We believe with these 2 assets going for us, our best financial results are ahead of us and Spok's future is bright. I'd like to take this opportunity to thank our stockholders for their continued support and want to assure you that our primary focus remains on generating cash and increasing stockholder value. We're committed to our current dividend policy and capital allocation policy. That concludes our prepared remarks. So, at this point, I'll ask the operator to open the call for your questions. We'd ask you to limit your initial questions to one and a follow-up. And after that, we'll take additional questions as time allows. Operator? Operator: Our first question is from Joseph France at MitchField (sic) [ Litchfield ]?Hills. Joseph France: Just a couple of questions. What drove the 92% sequential jump in bookings? I apologize for my laryngitis in terms of numbers of deals and deal size? And how much, if any, of that was pulled forward from 3Q? Vincent Kelly: Well, I think we've said in the past on these calls, bookings is always going to be lumpy. We happen to pull in a couple of really big whales in the second quarter. We don't always get deals that size in terms of the absolute value of dollars on each of those deals every quarter. You'll see them -- if you look at our past on a quarterly basis, you'll see a few quarters in the past where it's just way out of line with the other quarters in the year because we pulled in a big deal. We're always elephant hunting. It's something that we incent our sales force to do, and we pulled off 2 very nice ones in the second quarter that we talked about in our earlier comments. Joseph France: Another question I had was you mentioned, Mike did in the comments on the quarter that people are looking for shorter terms and that's taking longer to close. Your cancelable backlog also increased in the quarter versus last year. Is this sort of the same part of the negotiation that's going on because of all the uncertainty in the marketplace? Michael Wallace: Yes. Yes, that's fortuitous that you said that because those are lined up. So, my comments regarding why we took revenue down a little bit, especially on the software side, actually dovetails exactly with what you're seeing from the standpoint of more customers where we have signed deals where they have a termination for convenience essentially. Net or grossed up for those amounts, our backlog stayed pretty much flat year-over-year. But clearly, there is a trend towards customers wanting more flexibility, although we're not overly concerned about that. I mean, once our products get into customers, they tend to remain pretty sticky at the end of the day. And once we're deep into a project, it's very difficult for a customer to sort of unwind what they've done. But clearly, that is something that is happening kind of throughout the industry. And I think it goes to just uncertainty that some of our hospital customers have with the one big beautiful bill and what some of the Medicare and Medicaid reimbursements are going to be as we move through the balance of '26 and into '27. And as you probably know, in the healthcare sector at the end of the day, I mean, these hospitals always have very, very tight budget. So I think all of those things are kind of moving in tandem. Joseph France: You actually -- if I could ask -- squeeze in one more. You actually highlighted a very large account in the Midwest. I'm not sure I know which one that is for sure, but congratulations. When you win these 6 and 7-digit contracts, and this was a really nice one, what are the top 2 or 3 reasons they choose you over their alternatives because some of those companies are pretty big. I'm just curious. Vincent Kelly: Yes. Yes. It's the sheer breadth and depth of our enterprise offering, all the different things we do from the contact center to our alerting project, which is Messenger to our mobile product, which is Spok Mobile, to our many integrations, our Epic integration, our integration with their PBXs through our CTI expertise. We really sit within the health care ecosystem very, very closely with how they function and how they do business. And many of these large customers that we've had, the average tenure of our enormous customers is over 20 years. So we get in their hospitals, we get ingrained into their workflows and we're hard to rip out. We can do a lot of things that other companies can't do that would like to come into the space just because of the years and years of legacy expertise that we have in our solutions. So that bodes well for us, and that's why we tend to -- when it comes to the very large IDNs, we tend to win those businesses. We know the best practices with how they need to do their critical communications. We know which solutions they use. It's no secret we focus around their EHR of choice, there is no focus. Our top 2 PBXs that we interface are the top 2 PBXs that are used in the health care industry. And then with the alerting and with the mobile product, we can kind of tie it all together, so the right person gets the right message on the right device at the right time. We can pull in the on-call schedule. We just -- we really empower the codes, the code calls. We really empower a lot of workflows that the big institutions need to function. That's why we get those. Operator: We have reached the end of the question-and-answer session. I would like to turn the floor back over to Vince Kelly for closing comments. Vincent Kelly: Thank you, operator. And ladies and gentlemen, thank you for your participation and your support. This does conclude today's teleconference. You may disconnect your lines, and have a wonderful evening. Bye. Operator: This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation. Before you buy stock in Spok, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Spok wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Spok (SPOK) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was driven by a 92% sequential increase in software operations bookings, bolstered by securing two significant 'whale' contracts with large health systems. Management attributed record adjusted EBITDA to disciplined expense management, including an 8% year-over-year reduction in operating expenses following the April strategic realignment. The company is integrating artificial intelligence to accelerate product development timelines and reduce time-to-market for new Care Connect suite capabilities. Strategic positioning focuses on the 'breadth and depth' of the enterprise offering, integrating deeply into hospital workflows via EHR and PBX systems to ensure high customer stickiness. The sale of narrowband spectrum licenses for $8 million represents a strategic effort to monetize non-core assets without impacting the existing 2-way subscriber base. Management emphasized a commitment to a stockholder-friendly capital allocation plan, having returned approximately $118.7 million to shareholders since the 2022 strategic pivot. Full-year 2026 revenue guidance was adjusted downward at the midpoint to $136 million due to cautiousness regarding 'lumpy' software sales and extended deal evaluation cycles. Management maintained the midpoint for adjusted EBITDA guidance at $30 million, assuming that cost savings from the strategic realignment will offset the impact of lower revenue. Cash balances are expected to grow in the second half of 2026, with a projected year-end exit of $26 million to $29 million as working capital needs normalize. The company anticipates completing the clearing of sold spectrum licenses within the current quarter to trigger the final pro rata payment from Sensus USA. Guidance assumes a continued shift in customer behavior toward shorter-term agreements and increased 'termination for convenience' clauses due to hospital budget pressures. The second quarter included $1.5 million in severance and restructuring expenses related to the strategic realignment announced in April. The spectrum license sale resulted in a gain with no federal tax liability expected due to the utilization of deferred tax assets, leaving a remaining balance of approximately $30 million. A $700,000 gain from a domain name sale in the prior year period was noted as a one-time benefit that impacted year-over-year net income comparisons. Management flagged a trend of increased 'cancelable backlog' as customers seek more flexibility amidst Medicare and Medicaid reimbursement uncertainties. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified the jump was driven by 'elephant hunting' success, specifically pulling in two very large contracts that are inherently lumpy in timing. The increase was not characterized as a pull-forward from the third quarter but rather the realization of large-scale deals in the pipeline. Customers are increasingly favoring shorter terms and flexibility due to budget pressures and technological uncertainty, leading to a rise in cancelable backlog. Despite these trends, management remains confident in product stickiness, noting that once solutions are integrated into clinical workflows, they are difficult to 'unwind'. Spok wins large deals due to its 20-plus year tenure with major customers and its ability to integrate with core hospital infrastructure like Epic EHR and major PBX systems. The company's solutions are ingrained in critical workflows, such as code calls and on-call scheduling, which newer competitors struggle to replicate.

Interested in Spok Holdings, Inc.? Here are five stocks we like better. Software bookings surged nearly 92% sequentially, supported by 14 six-figure contracts and one seven-figure healthcare deal, while software revenue grew more than 3% year over year. Spok delivered record adjusted EBITDA and reduced adjusted operating expenses nearly 8% year over year, despite $1.5 million in severance and restructuring costs; it also continued investing in research and development and AI initiatives. The company lowered its 2026 revenue outlook midpoint to $136 million because of longer sales cycles, hospital budget pressures and increased preference for shorter contracts, but maintained its $28 million–$32 million adjusted EBITDA outlook. An $8 million spectrum sale is expected to add more than $7 million in third-quarter cash, supporting continued dividends. Spok (NASDAQ:SPOK) reported second-quarter 2026 results marked by higher software bookings, record adjusted EBITDA and continued capital returns to stockholders, while management modestly lowered its full-year revenue outlook amid longer customer sales cycles and demand for shorter contract terms. Chief Executive Officer Vince Kelly said the company’s software operations bookings increased nearly 92% sequentially during the quarter, aided by several large contracts. Spok also reported software revenue growth of more than 3% year over year, while wireless average revenue per unit remained consistent with the prior-year period. → This Tiny AI Supplier Could Be More Important Than the Chipmakers “We were able to deliver a nearly 92% sequential increase in software operations bookings,” Kelly said, adding that the company generated a record level of adjusted EBITDA in the quarter. Spok said it executed 14 six-figure new customer contracts and one seven-figure contract during the second quarter. Kelly highlighted an agreement with a Midwest-based healthcare customer that handles more than 20 million patient encounters annually across more than 2,200 care sites. → Refiner Stocks Are Near Record Highs—Can Iran-Driven Margins Keep Them There? The agreement expands the customer’s existing software, managed services, premium maintenance and support relationship with Spok to 85 additional locations. The health system is using the company’s Care Connect platform, including operator console, alerting and alarm-routing offerings. Spok also expanded its relationship with an academic health system that has been a longstanding user of Spok Smart Suite. The customer is adding Spok Messenger, Spok Mobile, SMS services, Epic chat integration, email capabilities and the Ascom Gateway, among other upgrades and services. → Innovative ETF Strategies That Are Paying Off This Summer During the question-and-answer session, Kelly said the company’s broad enterprise offering and long history in healthcare communications help it compete for large integrated delivery network customers. He said Spok’s products are often deeply embedded in hospital workflows and integrate with electronic health records, private branch exchanges and on-call schedules. “We get in their hospitals, we get ingrained into their workflows, and we’re hard to rip out,” Kelly said. GAAP net income for the second quarter totaled $4.1 million, or $0.20 per diluted share, compared with $4.6 million, or $0.22 per diluted share, a year earlier. Chief Operating Officer and Chief Financial Officer Michael Wallace said that after adjusting for certain one-time items, second-quarter net income would have been $5.3 million, or $0.25 per diluted share, compared with adjusted prior-year net income of $4 million, or $0.19 per share. The current-quarter adjustments included $1.5 million of severance and restructuring costs related to the strategic realignment announced in April. The prior-year quarter included an approximately $700,000 gain from the sale of a domain name. Second-quarter adjusted operating expenses were $27.1 million, down nearly 8% from $29.4 million in the prior-year quarter. Wallace cited lower cost of revenue, selling and marketing expenses, and general and administrative costs. General and administrative expenses declined nearly 14% year over year, which he attributed to the strategic realignment. At the same time, Spok continued to invest in its product platform. Kelly said the company spent more than $6.7 million on research and development during the first half of 2026, nearly 10% more than in the comparable 2025 period. The company is also implementing artificial intelligence initiatives intended to improve operational efficiency and accelerate product-development timelines. Software license revenue rose to $3.6 million from $2.4 million a year earlier. Managed professional services revenue increased 53% year over year to $2.3 million. Wireless ARPU was $8.20, consistent with prior-year levels. Wireless units in service declined less than 2% year over year, an improvement of 80 basis points from the prior quarter. Spok closed the sale of certain narrowband spectrum licenses from its two-way paging inventory to Sensus USA on July 20. The transaction, which received Federal Communications Commission approval, carries an $8 million cash purchase price. The majority of the proceeds were paid at closing, with a smaller portion to be paid as Spok clears users from the sold spectrum and transfers them to other frequencies. The company has 180 days after closing to complete that process and expects to finish it during the current quarter. Kelly said the spectrum being sold has no cost basis on Spok’s balance sheet, meaning the amount received, less transaction costs, will result in a gain. He added that the company expects no federal tax to be due on the gain because of available deferred tax assets. Wallace said the spectrum transaction is expected to contribute more than $7 million to third-quarter cash after transaction expenses and associated income taxes. Spok lowered the midpoint of its 2026 revenue guidance, citing first-quarter software bookings, the variability of software sales and market conditions affecting hospital customers. Wallace said customers are taking longer to evaluate purchases and increasingly favoring shorter-term agreements rather than multiyear commitments. He said hospital budget constraints and uncertainty around Medicare and Medicaid reimbursement were contributing to those dynamics. Wallace also noted that Spok’s cancelable backlog increased year over year as customers sought more flexibility in contracts, though grossed up for those contracts, backlog remained roughly flat from the prior year. The company now expects 2026 total revenue of $132.5 million to $139.5 million, with a midpoint of $136 million. Wireless revenue is projected at $67 million to $70 million, while software revenue is expected to range from $65.5 million to $69.5 million. Spok maintained its adjusted EBITDA outlook of $28 million to $32 million, with a $30 million midpoint. Wallace said the projected benefits of the strategic realignment are expected to offset the impact of the reduced revenue outlook. Cash and cash equivalents stood at $16.6 million at the end of the second quarter. Spok expects to exit 2026 with $26 million to $29 million in cash and cash equivalents, supported by lower second-half working-capital needs, ongoing free cash flow and spectrum-sale proceeds. Kelly said Spok returned $6.5 million through dividends during the second quarter and expects to pay more than $27 million in dividends in 2026. Since its strategic pivot began in 2022, the company has returned about $118.7 million to stockholders through regular quarterly dividends, he said. Spok, Inc is a publicly traded healthcare communications and collaboration company headquartered in Bellevue, Washington. The company specializes in providing secure, real-time clinical communication solutions designed to streamline workflows and enhance patient care. Serving hospitals, health systems, and other healthcare organizations across North America and selected international markets, Spok has positioned itself as a leading provider of secure messaging and nurse call integration. Spok's flagship offering, the Spok Care Connect platform, delivers a suite of integrated products, including secure text and voice messaging, alarm and event management, call center solutions, and digital signage. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Spok Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. GAAP Net Income: $4.1 million, or $0.20 per diluted share, compared to $4.6 million ($0.22 per diluted share) in Q2 2025. Adjusted Net Income: $5.3 million, or $0.25 per diluted share, compared to $4.0 million ($0.19 per diluted share) in the prior year (adjusted for one-time items). Total Revenue Guidance (FY 2026): Midpoint of $136 million, with a range of $132.5 million to $139.5 million. Wireless Revenue Guidance (FY 2026): Range of $67 million to $70 million. Software Revenue Guidance (FY 2026): Range of $65.5 million to $69.5 million. Software Revenue (Q2 2026): Increased over 3% year-over-year, driven by double-digit growth in managed services revenue and software license sales. License Revenue (Q2 2026): $3.6 million, up from $2.4 million in Q2 2025. Managed Professional Services Revenue (Q2 2026): $2.3 million, up 53% from the prior year. Adjusted EBITDA (Q2 2026): Record level generated, more than covering the dividend and other capital obligations. Adjusted EBITDA Guidance (FY 2026): Midpoint of $30 million, with a range of $28 million to $32 million. Adjusted Operating Expenses (Q2 2026): $27.1 million, down nearly 8% from $29.4 million in Q2 2025. Wireless Average Revenue Per Unit (ARPU) (Q2 2026): $8.20, consistent with prior year levels. Cash and Cash Equivalents (End of Q2 2026): $16.6 million. Cash and Cash Equivalents Guidance (End of FY 2026): Expected to be $26 million to $29 million. Product R&D Investment (First Half 2026): Over $6.7 million, a nearly 10% increase from 2025. Dividends Paid (Q2 2026): $6.5 million. Dividend Guidance (FY 2026): Expected to pay in excess of $27 million. Spectrum License Sale: Closed on July 20 for $8 million in cash consideration, with over $7 million expected to contribute to cash in Q3 2026 after expenses and taxes. Warning! GuruFocus has detected 3 Warning Sign with SPOK. Is SPOK fairly valued? Test your thesis with our free DCF calculator. Release Date: July 29, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Spok Holdings Inc (NASDAQ:SPOK) delivered a nearly 92% sequential increase in software operations bookings in Q2 2026. Adjusted EBITDA reached a record level, covering dividends and capital obligations. Software revenue grew over 3% year-over-year, driven by double-digit growth in managed services and license sales. Adjusted operating expenses decreased nearly 8% from the prior year due to strategic realignment and AI initiatives. The company closed an $8 million spectrum license sale, generating a gain with no expected federal tax due. Spok Holdings Inc (NASDAQ:SPOK) faces longer deal closure times as hospital customers conduct more upfront evaluations. Customers are increasingly favoring shorter-term agreements over multi-year contracts, compressing near-term revenue. Total revenue guidance midpoint was slightly lowered to $136 million due to cautious pipeline visibility. Wireless units in service saw a less than 2% reduction, indicating ongoing decline in the paging business. Cash balances declined in the first half of 2026 due to typical working capital needs and incentive payments. Here are the key highlights from the Spok Holdings Inc (NASDAQ:SPOK) Q2 2026 earnings call, focusing on the most significant Q&A exchanges. Q: What drove the 92% sequential jump in software operations bookings? A: (Vincent Kelly, CEO) The jump was driven by the closing of two very large "whale" deals in the quarter, including one of the largest contracts in the company's history. Bookings are inherently lumpy, and while the company is always "elephant hunting," these large deals are not typical for every quarter. Q: You mentioned customers are looking for shorter terms and deals are taking longer to close. Is this related to the increase in cancelable backlog? A: (Michael Wallace, COO/CFO) Yes, these trends are directly linked. The cautious guidance on software revenue reflects a trend where customers are signing deals with more termination-for-convenience clauses, keeping the backlog flat year-over-year. This is driven by hospital budget uncertainty, particularly regarding Medicare/Medicaid reimbursements and the "one big beautiful bill," leading to a desire for more flexibility and shorter-term commitments. Q: When you win large six and seven-figure contracts, what are the top reasons customers choose Spok over alternatives? A: (Vincent Kelly, CEO) The primary reason is the sheer breadth and depth of the enterprise offering. Spoks solutions are deeply ingrained in healthcare workflows, from the contact center and alerting to mobile products and integrations with top EHRs and PBXs. The companys 20+ year average tenure with large customers and its ability to tie everything together to ensure the right person gets the right message on the right device makes it very difficult for competitors to displace them. Q: Can you provide more detail on the strategic value of the spectrum license sale to CensusUSA beyond the $8 million purchase price? A: (Vincent Kelly, CEO) The transaction is strategically important because it monetizes a highly valuable asset base without impacting two-way subscribers, who are being transferred to alternative frequencies. Since the spectrum had no cost basis, the entire $8 million (less transaction costs) will result in a gain with no expected federal tax due, thanks to available deferred tax assets (DTAs). This demonstrates a continued ability to create stockholder value from the company's asset portfolio. Q: How is the company balancing expense management with necessary investments for future growth? A: (Vincent Kelly, CEO) The company is striking a careful balance. While adjusted operating expenses were down nearly 8% year-over-year due to the strategic realignment, Spok increased investment in product R&D by nearly 10% in the first half of 2026. The focus on expense management is a key driver of cash flow, but it does not come at the expense of the product platform, as investments in sales, marketing, and customer support continue to support the Spok Care Connect solution. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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, Texas, July 29, 2026--(BUSINESS WIRE)--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 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. Financial Highlights: Financial Outlook: The Company is updating its prior financial guidance and now expects the following for the full year 2026: 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 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 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 View source version on businesswire.com: https://www.businesswire.com/news/home/20260729621918/en/ Contacts Al [email protected]

Spok Holdings (SPOK) came out with quarterly earnings of $0.2 per share, beating the Zacks Consensus Estimate of $0.15 per share. This compares to earnings of $0.22 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +33.33%. A quarter ago, it was expected that this communications services provider would post earnings of $0.18 per share when it actually produced earnings of $0.09, delivering a surprise of -50%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Spok, which belongs to the Zacks Wireless National industry, posted revenues of $35.01 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.07%. This compares to year-ago revenues of $35.69 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Spok shares have lost about 17.4% since the beginning of the year versus the S&P 500's gain of 8.5%. While Spok has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Spok was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.16 on $34.7 million in revenues for the coming quarter and $0.66 on $139.3 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Wireless National is currently in the top 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Array Digital Infrastructure (AD), has yet to report results for the quarter ended June 2026. This wireless telecommunications service provider is expected to post quarterly earnings of $0.62 per share in its upcoming report, which represents a year-over-year change of +72.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Array Digital Infrastructure's revenues are expected to be $52.37 million, down 94.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Spok Holdings, Inc. (SPOK) : Free Stock Analysis Report Array Digital Infrastructure Inc. (AD) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Year-Over-Year Software Managed Services Revenue Growth of Nearly 57% Company Reiterates 2026 Financial Guidance PLANO, Texas, April 29, 2026--(BUSINESS WIRE)--Spok Holdings, Inc. (NASDAQ: SPOK), a global leader in healthcare communications, today announced results for the first quarter ended March 31, 2026. In addition, the Company’s Board of Directors declared a regular quarterly dividend of $0.3125 per share, payable on June 24, 2026, to stockholders of record on May 26, 2026. Recent Highlights: Spok recently announced a strategic realignment designed to further reduce operating expenses and deliver in excess of $6.0 million in anticipated annual cost savings, along with an approximately 10% workforce reduction First-quarter software operations bookings included 17 six-figure customer contracts Software backlog totaled $55.3 million at March 31, 2026, as the Company continues to focus on multi-year and managed services bookings First quarter 2026 wireless average revenue per unit (ARPU) was $8.29, up 0.6% on a year-over-year basis Capital returned to stockholders in the first quarter of 2026 totaled $8.0 million Research and development costs totaled $3.5 million in the first quarter of 2026, supporting Spok's investment in the Company's industry-leading solutions to fuel future growth Spok is excited about the significant potential for artificial intelligence to drive further operational efficiencies across the organization, with a particular focus on accelerating product development timelines and reducing time to market for new Care Connect® Suite capabilities Cash and cash equivalents balance of $17.1 million at March 31, 2026, and no debt "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. "We are confident that the strategic realignment that we announced a couple of weeks ago will create significant value for stockholders, while continuing both our investment in our Care Connect® Suite and our quarterly dividend, which currently represents a yield in excess of 10%. "In the first quarter, we were able to deliver a nearly 57% year-over-year increase in software managed services revenue as well as a continued increase in the wireless average revenue per unit. Additionally, we generated nearly $2 million of net income and $5.3 million of adjusted EBITDA. Our ability to generate net income in various economic environments results from the financial platform our team has created. With over 80% of our revenues generated from re-occurring revenue streams, including software maintenance and subscription contracts, managed services, and wireless pager revenue, and a debt free balance sheet, we can mitigate the impact of timing issues and seasonality on bookings levels. "Based on our recent announcement, and our visibility into our product sales pipeline, we are reiterating our previously provided full year 2026 financial guidance estimates for revenue and adjusted EBITDA, with the midpoint of our adjusted EBITDA guidance also being up from 2025. We are also very excited about the potential for artificial intelligence to add further efficiency across our operations and meaningfully reduce time to market on our product development goals and timelines, an opportunity we believe will create significant additional value for our customers and stockholders alike," concluded Kelly. Financial Highlights: Financial Outlook: The Company also reiterated its prior financial guidance and expects the following for the full year 2026: 2026 First Quarter Call: Management will host a conference call and webcast to discuss these financial results on Wednesday, April 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 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 View source version on businesswire.com: https://www.businesswire.com/news/home/20260429742230/en/ Contacts Al Galgano 952-224-6096 [email protected]

Strategic realignment: Spok is cutting about 10% of its workforce and consolidating its executive team (COO Michael Wallace added as CFO) to save over $6 million annually while continuing investment in the Care Connect platform and AI; restructuring charges are expected to be $1.6–$2.0 million, largely in Q2–Q3 2026. Bookings and software momentum: The company closed 17 six‑figure contracts in Q1 and says Q2 software bookings have already exceeded Q1, supporting a mix shift toward higher‑margin software with 2026 software revenue guidance of $68–$72 million and Adjusted EBITDA guidance of $27.5–$32.5 million. Capital returns and financial position: Management reiterated its dividend commitment (expecting >$27 million in dividends for 2026), notes a debt‑free balance sheet and $17.1 million in cash at quarter end, while Q1 GAAP net income fell to $2.0 million due mainly to timing of license revenue. Interested in Spok Holdings, Inc.? Here are five stocks we like better. Spok (NASDAQ:SPOK) reported first-quarter 2026 results highlighted by growth in software managed services, continued increases in wireless average revenue per unit (ARPU), and a strategic realignment aimed at lowering costs while maintaining investment in its Care Connect platform and returning capital to shareholders. President and CEO Vincent Kelly said the company recently announced a strategic realignment “designed to reduce costs and sharpen operational focus across our go-to market functions,” while allowing Spok to allocate resources toward continued investment in its Care Connect suite and artificial intelligence initiatives. → Palantir Is Down 30%: Noise? Or a Signal to Accumulate? As part of the plan, Spok is reducing its workforce by approximately 10%. Kelly said the move is expected to lower headcount-related expenses (excluding stock-based compensation and other operating expenses) by “over $6 million on an annualized basis.” The company expects to incur restructuring charges (excluding stock-based compensation) of approximately $1.6 million to $2 million, primarily in the second and third quarters of 2026, and expects the restructuring to be “substantially completed by the third quarter.” Kelly also said Spok is consolidating its executive team, with Michael Wallace, the company’s Chief Operating Officer, taking on the additional role of Chief Financial Officer. Wallace previously served as Spok’s CFO from 2017 to 2022, which Kelly said supports continuity in the management structure. → Homebuilder Earnings: D.R. Horton Sticks Out as Pulte & NVR Sales Tank Management repeatedly emphasized cash generation and shareholder returns. Kelly said Spok’s strategic goal is to run the business for profitable growth, generate cash flow, and return capital to stockholders. Kelly noted that since the strategic pivot began about four years ago, Spok has returned approximately $112.3 million, or more than $5.38 per share, through its regular quarterly dividend. He added that since the company’s creation in 2004, Spok has returned more than $735 million to stockholders through dividends and share repurchases, and has generated nearly $1.1 billion of free cash flow over that period. → Did Qualcomm Just Put Apple in Check? In the first quarter of 2026, Spok returned $8 million in dividends. Kelly said the first quarter dividend level is typically higher than the other quarters due to vesting of incentive plan grants, and that dividends in the following three quarters are expected to total approximately $6.5 million per quarter. He said the company expects to pay dividends in excess of $27 million in 2026 and remains committed to its dividend policy. Wallace said the company executed 17 six-figure customer contracts in the first quarter, up from the prior quarter, including one new logo agreement. He also said second-quarter software operations bookings “are off to an excellent start,” echoing Kelly’s comment that second-quarter bookings have already exceeded the levels seen in the entirety of the first quarter. Wallace highlighted several customer agreements, including multi-year commitments and platform expansions: A health system customer of more than 20 years (approximately 600 beds) that uses Spok Care Connect to initiate nearly 100,000 codes annually and provide physician answering services. The customer is adding licenses for business continuity as well as Care Connect reporting and dashboards. A public academic health center serving a multi-state region and more than 300,000 unique patients annually. The organization uses Care Connect to manage nearly 800,000 operator calls annually, dispatch over 6 million messages or pages per year, and oversee nearly 600 on-call groups. The engagement includes upgrade services, maintenance, and support for Smart Suite solutions (including Smart Console, Smart Web, eNotify, and Spok Mobile) across more than 4,000 licenses. A three-year managed services commitment with a health system managing more than 430,000 emergency department and inpatient visits annually. The deal expands its Spok Console platform to include integrated Epic messaging, Care Connect reporting and dashboards, and three additional years of support, along with value-added services including data integrity. For the first quarter of 2026, Wallace said GAAP net income totaled $2 million, or $0.09 per diluted share, down from $5.2 million, or $0.25 per diluted share, in the first quarter of 2025. He attributed the decline primarily to “the timing of Software Operations bookings and related license revenue.” Kelly said the company generated $5.3 million of Adjusted EBITDA in the quarter and emphasized the company’s recurring revenue profile, stating that over 80% of revenue is generated from recurring streams including software maintenance and subscription contracts, managed services, and wireless pager revenue. He also pointed to a debt-free balance sheet as supporting predictable revenue and financial flexibility. On the wireless side, Wallace said year-over-year revenue declines from lower units in service were partially offset by pricing actions taken over the last couple of years, with product sales also helping. ARPU increased by $0.05 year over year, driven primarily by pricing actions and, to a lesser extent, incremental pass-through taxes and fees and an increased mix of GenA pagers in use. In software, license and hardware revenue totaled $1.5 million, compared with $3.0 million in the prior-year quarter, reflecting lower software operations bookings—particularly license bookings, which Wallace said impact revenue immediately. Professional services trends were mixed, with Wallace noting performance was “slightly lower than last year” due to the timing of higher dollar projects and a one-time benefit in the prior-year quarter, while managed professional services revenue rose to $2.1 million, up nearly 57% year over year. Wallace said the company continues to see solid resource utilization and believes it has “greatly achieved our optimal operating efficiency in Professional Services relative to our current product state.” Adjusted operating expenses in the quarter (excluding depreciation, amortization, accretion, and severance and restructuring costs) totaled $29.5 million, compared with $29.4 million in the first quarter of 2025. Wallace said cost of revenue increased primarily due to hiring to support services revenue, partially offset by lower equipment and software costs associated with lower operations bookings. He added that selling and marketing costs declined nearly 9% year over year due to lower commissions and trade show and event expenses, while general and administrative costs declined 2%. Spok ended the quarter with $17.1 million in cash. Wallace said the first quarter typically sees a decline in cash balances due to working capital needs such as incentive plan payments and prepaid annual renewals of technology contracts, as well as higher financing activity related to long-term incentive plan payments. He said the company anticipates cash balances will generally grow through the remainder of the year as those needs subside and as Spok targets significant free cash flow consistent with its Adjusted EBITDA guidance. Wallace said the company believes it is prudent to reiterate prior 2026 guidance for revenue and Adjusted EBITDA, noting guidance could be helped by rebounding bookings and cost-cutting initiatives but that the company wants more visibility before reflecting those impacts. Total revenue is expected to range from $136 million to $143 million. Wireless revenue is expected to range from $68 million to $71 million. Software revenue is expected to range from $68 million to $72 million, with the midpoint implying growth of more than 4% and the high end implying more than 7% growth. Adjusted EBITDA is expected to range from $27.5 million to $32.5 million. Wallace said the high end represents over 12% growth, “largely expected to be driven by a greater mix of higher margin software license bookings and benefits related to the strategic realignment cost reductions.” In closing remarks, Kelly said Spok sees a long-term organic growth engine in Spok Care Connect and continued recurring revenue in its wireless service line, adding that the company operates “the largest paging offering in the world integrated with our software operations.” He said management believes Spok’s “best financial results are ahead of us,” and the company expects to report second-quarter results in late July. No questions were asked during the Q&A portion of the call. Spok, Inc is a publicly traded healthcare communications and collaboration company headquartered in Bellevue, Washington. The company specializes in providing secure, real-time clinical communication solutions designed to streamline workflows and enhance patient care. Serving hospitals, health systems, and other healthcare organizations across North America and selected international markets, Spok has positioned itself as a leading provider of secure messaging and nurse call integration. Spok's flagship offering, the Spok Care Connect platform, delivers a suite of integrated products, including secure text and voice messaging, alarm and event management, call center solutions, and digital signage. The article "Spok Q1 Earnings Call Highlights" was originally published by MarketBeat.