News Release
Spok Reports Second Quarter 2025 Results
Net Income and Adjusted EBITDA Continued Growth
Strong Software Operations Bookings Drives Y-O-Y Increase in Software Revenue
Company Increases Financial Guidance For 2025
Plano, Tx. (July 30, 2025) – Spok Holdings, Inc. (NASDAQ: SPOK), a global leader in healthcare communications, today announced results for the second quarter ended June 30, 2025. In addition, the Company’s Board of Directors declared a regular quarterly dividend of $0.3125 per share, payable on September 9, 2025, to stockholders of record on August 19, 2025.
Recent Highlights:
- Second quarter 2025 Net Income and Adjusted EBITDA up 33% and 6%, respectively, from the prior year period
- Software operations bookings totaled $11.7 million in the second quarter, up 34% from the second quarter of 2024
- Second quarter software operations bookings included 23 six-figure customer contracts and 1 seven-figure customer contract, up both on a sequential and prior year basis
- Software backlog totaled $65.2 million at June 30, 2025, up nearly 19% from the prior year, as the Company continues to focus on multi-year and managed services bookings
- Second quarter 2025 Wireless average revenue per unit (ARPU) was $20, up nearly 5% on a year-over-year basis
- Capital returned to stockholders in the second quarter of 2025 totaled $6.5 million
- Research and development costs totaled $6.1 million in the first half of 2025, supporting Spok’s investment in the Company’s industry-leading solutions to fuel future growth
- Cash and cash equivalents balance of $20.2 million at June 30, 2025, and no debt
- Company raises its 2025 financial outlook for revenue and adjusted EBITDA
“I am proud of the strong performance our team was able to deliver in the second quarter and believe these results provide solid momentum for the balance of 2025,” said Vincent D. Kelly, chief executive officer of Spok Holdings, Inc. “Spok continues to execute on generating cash flow and returning capital to stockholders, while responsibly investing for future growth. In the second quarter, we made tremendous progress in several key performance areas, including net income and cash generation, software revenue growth, wireless ARPU trends, software operations bookings and backlog levels. We were able to accomplish this while investing in our Spok Care Connect and Wireless solutions. I am particularly pleased with our performance in generating software operations bookings in the second quarter, which were up more than 34% from our very strong performance in the second quarter of 2024. In fact, the $11.7 million of software operations bookings in the second quarter of 2025, combined with a strong backlog, drove a 10% increase in software revenue that included double-digit growth in license revenue and triple-digit growth in managed services revenue, on a year-over-year basis.
“Spok continues its proud legacy of balancing the necessary investments in our products and infrastructure with returning capital to our stockholders,” continued Kelly. “In the second quarter, we generated nearly $4.6 million of net income and nearly $7.5 million of adjusted EBITDA, while continuing to invest in the development of our products at a rate consistent with 2024. As anticipated, our cash balances started to grow in the second quarter, totaling in excess of $20 million at June 30, 2025. All else remaining equal, we expect cash balances to continue to grow through the remainder of the year.
“Based on our performance in the first half of 2025, and the numerous financial and operational milestones we achieved during the first six months, we are increasing our full year 2025 guidance estimates for revenue and adjusted EBITDA. At the midpoint of the revised guidance range, we would grow consolidated revenue in 2025, on a year-over-year basis, with an expected 6.4% growth in software revenue at the midpoint, partially offset by slight declines in wireless revenue. We also anticipate that the midpoint of our adjusted EBITDA guidance will be up from last year, with growth potential at the high-end of the guidance range of more than 11%. Of course, we will continue to update you on our outlook each quarter when we report our results,” concluded Kelly.
Financial Highlights:
For the three months ended June 30, | For the six months ended June 30, | ||||||||||
(Dollars in thousands) | 2025 | 2024 | Change (%) | 2025 | 2024 | Change (%) | |||||
Revenue | |||||||||||
Wireless revenue | |||||||||||
Paging revenue | $ 17,192 | $ 17,633 | (2.5) % | $ 34,799 | $ 35,603 | (2.3) % | |||||
Product and other revenue | 1,248 | 664 | 88.0 % | 2,115 | 1,289 | 64.1 % | |||||
Total wireless revenue | $ 18,440 | $ 18,297 | 0.8 % | $ 36,914 | $ 36,892 | 0.1 % | |||||
Software revenue | |||||||||||
License | 2,394 | 1,697 | 41.1 % | 5,025 | 4,323 | 16.2 % | |||||
Professional services – projects | $ 3,831 | $ 3,682 | 4.0 % | $ 8,302 | $ 7,243 | 14.6 % | |||||
Professional services – managed services | 1,520 | 604 | 151.7 % | 2,835 | 1,068 | 165.4 % | |||||
Hardware | 376 | 334 | 12.6 % | 697 | 718 | (2.9) % | |||||
Maintenance and subscription | 9,125 | 9,368 | (2.6) % | 18,207 | 18,647 | (2.4) % | |||||
Total software revenue | $ 17,246 | $ 15,685 | 10.0 % | $ 35,066 | $ 31,999 | 9.6 % | |||||
Total revenue | $ 35,686 | $ 33,982 | 5.0 % | $ 71,980 | $ 68,891 | 4.5 % | |||||
| For the three months ended June 30, |
| For the six months ended June 30, | ||||||||
(Dollars in thousands) | 2025 |
| 2024 |
| Change (%) |
| 2025 |
| 2024 |
| Change (%) |
GAAP |
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Operating expenses | $ 30,294 |
| $ 29,508 |
| 2.7 % |
| $ 60,570 |
| $ 59,526 |
| 1.8 % |
Net income | $ 4,552 |
| $ 3,425 |
| 32.9 % |
| $ 9,748 |
| $ 7,661 |
| 27.2 % |
Cash and cash equivalents (as of period end) | $ 20,242 |
| $ 23,875 |
| (15.2) % |
| $ 20,242 |
| $ 23,875 |
| (15.2) % |
Capital returned to stockholders | $ 6,477 |
| $ 6,329 |
| 2.3 % |
| $ 14,424 |
| $ 13,715 |
| 5.2 % |
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Non-GAAP |
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Adjusted operating expenses | $ 29,420 |
| $ 28,093 |
| 4.7 % |
| $ 58,780 |
| $ 56,615 |
| 3.8 % |
Adjusted EBITDA | $ 7,489 |
| $ 7,048 |
| 6.3 % |
| $ 15,693 |
| $ 14,583 |
| 7.6 % |
For the three months ended June 30, | For the six months ended June 30, | ||||||||||
(Dollars in thousands, excluding units in service and ARPU) | 2025 | 2024 | Change (%) | 2025 | 2024 | Change (%) | |||||
Key Statistics | |||||||||||
Wireless units in service (000’s) (as of period end) | 694 | 747 | (7.1) % | 694 | 747 | (7.1) % | |||||
Wireless average revenue per unit (ARPU) | $ 8.20 | $ 7.84 | 4.6 % | $ 8.21 | $ 7.85 | 4.6 % | |||||
Software operations bookings(1) | $ 11,661 | $ 8,695 | 34.1 % | $ 19,998 | $ 16,580 | 20.6 % | |||||
Software backlog (as of period end)(2) | $ 65,187 | $ 55,006 | 18.5 % | $ 65,187 | $ 55,006 | 18.5 % | |||||
(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 $10.1 million and $6.0 million of contractual obligations that are deemed cancellable by the customer without significant penalty as of June 30, 2025 and 2024, respectively.
Financial Outlook:
The Company also increased its financial guidance and now expects the following for the full year 2025:
(Unaudited and in millions) | Current Guidance | Prior Guidance | ||||||
From | To | From | To | |||||
Revenue | ||||||||
Wireless | $ 71.5 | $ 73.5 | $ 69.0 | $ 72.0 | ||||
Software | $ 66.5 | $ 70.0 | $ 65.0 | $ 70.0 | ||||
Total Revenue | $ 138.0 | $ 143.5 | $ 134.0 | $ 142.0 | ||||
Adjusted EBITDA | $ 28.5 | $ 32.5 | $ 27.5 | $ 32.5 | ||||
2025 Second Quarter Call:
Management will host a conference call and webcast to discuss these financial results on Wednesday, July 30, 2025, at 5:00 p.m. Eastern Time. The presentation is open to all interested parties and may include forward-looking information.
Conference Call Details
Date/Time: | Wednesday, July 30, 2025, at 5:00 p.m. ET |
Webcast: | |
U.S. Toll-Free Dial In: | 877-407-0890 |
International Dial In: | 1-201-389-0918 |
To access the call, please dial in approximately ten minutes before the start of the call. For those unable to join the live call, an OnDemand version of the webcast will be available following the call under the URL link and on the investor relations website.
Non-GAAP Financial Measures
This press release contains the following non-GAAP financial measures: adjusted operating expenses and adjusted EBITDA. Adjusted operating expenses excludes depreciation and accretion expense, impairment of intangible assets and severance and restructuring costs. Adjusted EBITDA represents net income/(loss) before interest income/expense, income tax benefit/expense, depreciation and accretion expense, stock-based compensation expense, impairment of intangible assets and severance and restructuring. With respect to our expectations under “Financial Outlook” above, reconciliation of adjusted EBITDA to net income is not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity and uncertainty with respect to certain items included in net income that are excluded from adjusted EBITDA, in particular, income tax benefit/expense, stock-based compensation expenses, impairment of intangible assets, severance and restructuring and other non-recurring expenses. These items can have unpredictable fluctuations based on unforeseen activity that is out of our control and/or cannot be reasonably predicted.
We believe that these non-GAAP financial measures provide useful information to management and investors regarding certain financial and business trends relating to Spok’s financial condition and results of operations. We use these non-GAAP measures for financial, operational, and budgetary decision-making purposes, to understand and evaluate our core operating performance and trends, and to generate future operating plans. We believe that these non-GAAP financial measures permit us to more thoroughly analyze key financial metrics used to make operational decisions and allow us to assess our core operating results. We believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial measures with other software companies who present similar non-GAAP financial measures. We adjust for certain items because we do not regard these costs as reflective of normal costs related to the ongoing operation of the business in the ordinary course. In general, these items possess one or more of the following characteristics: non-cash expenses, factors outside of our control, items that are non-operational in nature, and unusual items not expected to occur in the normal course of business. We believe it is important to exclude these costs, given that they do not represent future operational costs under this strategic business plan. This allows us to assess the underlying performance of our core business under this new strategic business plan.
We do not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principle of these non-GAAP financial measures is that they exclude significant amounts that are required by GAAP to be recorded in the Company’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which items are excluded or included in determining these non-GAAP financial measures. In order to compensate for these limitations, management presents non-GAAP financial measures in connection with GAAP results. We urge investors to review the reconciliation of our non-GAAP financial measures to the comparable GAAP financial measures, which are included in this press release, and not to rely on any single financial measure to evaluate our business.
Tables to Follow
SPOK HOLDINGS, INC. | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
(Unaudited and in thousands except share, per share amounts and ARPU) | ||||||||
For the three months ended | For the six months ended | |||||||
6/30/2025 | 6/30/2024 | 6/30/2025 | 6/30/2024 | |||||
Revenue: | ||||||||
Wireless | $ 18,440 | $ 18,297 | $ 36,914 | $ 36,892 | ||||
Software | 17,246 | 15,685 | 35,066 | 31,999 | ||||
Total revenue | 35,686 | 33,982 | 71,980 | 68,891 | ||||
Operating expenses: | ||||||||
Cost of revenue (exclusive of items shown separately below) | 7,331 | 7,163 | 14,543 | 14,302 | ||||
Research and development | 3,024 | 3,176 | 6,079 | 6,127 | ||||
Technology operations | 5,895 | 6,181 | 11,745 | 12,480 | ||||
Selling and marketing | 4,267 | 3,506 | 9,112 | 7,655 | ||||
General and administrative | 8,903 | 8,067 | 17,301 | 16,051 | ||||
Depreciation and accretion | 854 | 1,067 | 1,713 | 2,135 | ||||
Severance and restructuring | 20 | 348 | 77 | 776 | ||||
Total operating expenses | 30,294 | 29,508 | 60,570 | 59,526 | ||||
% of total revenue | 84.9 % | 86.8 % | 84.1 % | 86.4 % | ||||
Operating income | 5,392 | 4,474 | 11,410 | 9,365 | ||||
% of total revenue | 15.1 % | 13.2 % | 15.9 % | 13.6 % | ||||
Interest income | 256 | 391 | 475 | 645 | ||||
Other income (expense) | 734 | (14) | 756 | (16) | ||||
Income before income taxes | 6,382 | 4,851 | 12,641 | 9,994 | ||||
Provision for income taxes | (1,830) | (1,426) | (2,893) | (2,333) | ||||
Net income | $ 4,552 | $ 3,425 | $ 9,748 | $ 7,661 | ||||
Basic net income per common share | $ 0.22 | $ 0.17 | $ 0.48 | $ 0.38 | ||||
Diluted net income per common share | $ 0.22 | $ 0.17 | $ 0.47 | $ 0.37 | ||||
Basic weighted average common shares outstanding | 20,580,044 | 20,252,452 | 20,510,561 | 20,211,500 | ||||
Diluted weighted average common shares outstanding | 20,750,971 | 20,473,751 | 20,746,786 | 20,500,335 | ||||
Cash dividends declared per common share | 0.3125 | 0.3125 | 0.6250 | 0.6250 | ||||
SPOK HOLDINGS, INC. | ||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||
(In thousands) | ||||
6/30/2025 | 12/31/2024 | |||
ASSETS | (Unaudited) | |||
Current assets: | ||||
Cash and cash equivalents | $ 20,242 | $ 29,145 | ||
Accounts receivable, net | 25,819 | 21,950 | ||
Prepaid expenses | 9,620 | 9,362 | ||
Other current assets | 794 | 840 | ||
Total current assets | 56,475 | 61,297 | ||
Non-current assets: | ||||
Property and equipment, net | 6,083 | 5,952 | ||
Operating lease right-of-use assets | 7,317 | 8,249 | ||
Goodwill | 99,175 | 99,175 | ||
Deferred income tax assets, net | 39,088 | 41,686 | ||
Other non-current assets | 532 | 744 | ||
Total non-current assets | 152,195 | 155,806 | ||
Total assets | $ 208,670 | $ 217,103 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Current liabilities: | ||||
Accounts payable | $ 3,836 | $ 5,630 | ||
Accrued compensation and benefits | 5,877 | 7,363 | ||
Deferred revenue | 28,541 | 28,366 | ||
Operating lease liabilities | 2,779 | 2,904 | ||
Other current liabilities | 4,411 | 4,511 | ||
Total current liabilities | 45,444 | 48,774 | ||
Non-current liabilities: | ||||
Asset retirement obligations | 5,760 | 5,945 | ||
Operating lease liabilities | 5,056 | 5,869 | ||
Other non-current liabilities | 1,474 | 1,769 | ||
Total non-current liabilities | 12,290 | 13,583 | ||
Total liabilities | 57,734 | 62,357 | ||
Commitments and contingencies | ||||
Stockholders’ equity: | ||||
Preferred stock | $ — | $ — | ||
Common stock | 2 | 2 | ||
Additional paid-in capital | 105,528 | 105,736 | ||
Accumulated other comprehensive loss | (1,762) | (1,784) | ||
Retained earnings | 47,168 | 50,792 | ||
Total stockholders’ equity | 150,936 | 154,746 | ||
Total liabilities and stockholders’ equity | $ 208,670 | $ 217,103 | ||
SPOK HOLDINGS, INC. | |||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
(Unaudited and in thousands) | |||
For the six months ended | |||
6/30/2025 | 6/30/2024 | ||
Operating activities: | |||
Net income | $ 9,748 | $ 7,661 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and accretion | 1,713 | 2,135 | |
Deferred income tax expense | 2,615 | 2,313 | |
Stock-based compensation | 2,493 | 2,307 | |
Gain on sale of domain name | (701) | — | |
Provisions for credit losses, service credits and other | 539 | 262 | |
Changes in assets and liabilities: | |||
Accounts receivable | (4,415) | 223 | |
Prepaid expenses and other assets | (18) | (1,232) | |
Net operating lease liabilities | (6) | (11) | |
Accounts payable and other liabilities | (3,201) | (3,046) | |
Deferred revenue | 523 | (1,192) | |
Net cash provided by operating activities | 9,290 | 9,420 | |
Investing activities: | |||
Purchases of property and equipment | (1,791) | (1,516) | |
Proceeds from sale of domain name | 701 | — | |
Net cash used in investing activities | (1,090) | (1,516) | |
Financing activities: | |||
Cash distributions to stockholders | (14,424) | (13,715) | |
Proceeds from issuance of common stock under the Employee Stock Purchase Plan | 142 | 131 | |
Purchase of common stock for tax withholding on vested equity awards | (2,843) | (2,428) | |
Net cash used in financing activities | (17,125) | (16,012) | |
Effect of exchange rate on cash and cash equivalents | 22 | (6) | |
Net decrease in cash and cash equivalents | (8,903) | (8,114) | |
Cash and cash equivalents, beginning of period | 29,145 | 31,989 | |
Cash and cash equivalents, end of period | $ 20,242 | $ 23,875 | |
Supplemental disclosure: | |||
Income taxes paid | $ 114 | $ 241 | |
SPOK HOLDINGS, INC. | ||||||||||||||||
UNITS IN SERVICE, MARKET SEGMENTS, | ||||||||||||||||
AND AVERAGE REVENUE PER UNIT (ARPU) | ||||||||||||||||
(Unaudited and in thousands) | ||||||||||||||||
For the three months ended | ||||||||||||||||
6/30/2025 | 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 | |||||||||
Account size ending units in service (000’s) | ||||||||||||||||
1 to 100 units | 38 | 39 | 40 | 41 | 42 | 43 | 44 | 46 | ||||||||
101 to 1,000 units | 116 | 121 | 120 | 125 | 128 | 135 | 142 | 143 | ||||||||
>1,000 units | 540 | 545 | 560 | 564 | 577 | 575 | 579 | 596 | ||||||||
Total | 694 | 705 | 720 | 730 | 747 | 753 | 765 | 785 | ||||||||
Market segment as a percent of total ending units in service | ||||||||||||||||
Healthcare | 85.7 % | 85.5 % | 85.6 % | 85.7 % | 85.8 % | 86.1 % | 85.9 % | 86.0 % | ||||||||
Government | 4.0 % | 4.0 % | 4.0 % | 4.1 % | 4.4 % | 4.1 % | 4.2 % | 4.2 % | ||||||||
Large enterprise | 3.8 % | 3.8 % | 3.9 % | 4.0 % | 4.0 % | 3.9 % | 4.1 % | 4.1 % | ||||||||
Other(1) | 6.5 % | 6.7 % | 6.5 % | 6.2 % | 5.8 % | 5.9 % | 5.8 % | 5.7 % | ||||||||
Total | 100.0 % | 100.0 % | 100.0 % | 100.0 % | 100.0 % | 100.0 % | 100.0 % | 100.0 % | ||||||||
Account size ARPU | ||||||||||||||||
1 to 100 units | $ 12.88 | $ 13.04 | $ 13.08 | $ 12.70 | $ 12.51 | $ 12.66 | $ 12.57 | $ 12.02 | ||||||||
101 to 1,000 units | 9.72 | 9.64 | 9.60 | 9.19 | 9.06 | 9.14 | 9.16 | 8.75 | ||||||||
>1,000 units | 7.54 | 7.59 | 7.50 | 7.33 | 7.21 | 7.23 | 7.15 | 6.97 | ||||||||
Total | $ 8.20 | $ 8.24 | $ 8.16 | $ 7.95 | $ 7.84 | $ 7.89 | $ 7.84 | $ 7.59 | ||||||||
(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 | |||||||
6/30/2025 | 6/30/2024 | 6/30/2025 | 6/30/2024 | |||||
Operating expenses | $ 30,294 | $ 29,508 | $ 60,570 | $ 59,526 | ||||
Add back: | ||||||||
Depreciation and accretion | (854) | (1,067) | (1,713) | (2,135) | ||||
Severance and restructuring | (20) | (348) | (77) | (776) | ||||
Adjusted operating expenses | $ 29,420 | $ 28,093 | $ 58,780 | $ 56,615 | ||||
RECONCILIATION OF ADJUSTED EBITDA | ||||||||
(Unaudited and in thousands) | ||||||||
For the three months ended | For the six months ended | |||||||
6/30/2025 | 6/30/2024 | 6/30/2025 | 6/30/2024 | |||||
Net income | $ 4,552 | $ 3,425 | $ 9,748 | $ 7,661 | ||||
Add back: | ||||||||
Provision for income taxes | 1,830 | 1,426 | 2,893 | 2,333 | ||||
Other income (expense) | (734) | 14 | (756) | 16 | ||||
Interest income | (256) | (391) | (475) | (645) | ||||
Depreciation and accretion | 854 | 1,067 | 1,713 | 2,135 | ||||
EBITDA | $ 6,246 | $ 5,541 | $ 13,123 | $ 11,500 | ||||
Adjustments: | ||||||||
Stock-based compensation | 1,223 | 1,159 | 2,493 | 2,307 | ||||
Severance and restructuring | 20 | 348 | 77 | 776 | ||||
Adjusted EBITDA | $ 7,489 | $ 7,048 | $ 15,693 | $ 14,583 | ||||