Spok Holdings, Inc.

Second-quarter GAAP net income was $4.1 million, or $0.20 per diluted share, compared with $4.6 million, or $0.22 per diluted share a year ago. Adjusted for one-time items, prior-year net income would have been $4.0 million, or $0.19 per diluted share, and current-quarter net income would have been $5.3 million, or $0.25 per diluted share. Wireless ARPU was $8.20 and was consistent with prior year levels. Second-quarter software revenue rose more than 3% year over year, with license revenue at $3.6 million versus $2.4 million last year and managed professional services revenue at $2.3 million, up 53%. Adjusted operating expenses were $27.1 million, down from $29.4 million, or nearly 8%. Cash and cash equivalents were $16.6 million at quarter-end. For 2026, management expects total revenue of $132.5 million to $139.5 million, with a midpoint of $136 million; wireless revenue of $67 million to $70 million; software revenue of $65.5 million to $69.5 million; and adjusted EBITDA of $28 million to $32 million, with a midpoint of $30 million. The company expects to exit 2026 with $26 million to $29 million in cash and cash equivalents. It also expects dividends in excess of $27 million in 2026.

Vince Kelly framed the quarter as validation of Spok’s long-term pivot toward software growth, cash generation, and shareholder returns. He said the company is balancing investment in the platform with expense discipline, including AI efforts to improve product development speed and internal efficiency. He sounded confident and emphasized that the business is “regaining momentum,” with large enterprise wins and a strategic asset sale reinforcing the value of the franchise.

Michael Wallace highlighted the quarter’s profitability and margin improvement, noting GAAP net income of $4.1 million and adjusted current-quarter net income of $5.3 million after one-time items. He pointed to lower adjusted operating expenses of $27.1 million, driven by the strategic realignment, lower selling and marketing costs, and lower G&A, while also noting continued investment in R&D. On cash, he said quarter-end cash was $16.6 million and expects cash to rise in the second half, aided by the spectrum sale and lower working-capital needs, ending 2026 with $26 million to $29 million in cash.

Analysts focused on the 92% sequential bookings jump, with management saying the quarter included two unusually large “whale” deals and that bookings remain lumpy. They also pressed on longer sales cycles and shorter contract terms; Wallace said that trend lines up with an increase in cancelable backlog and reflects hospital budget pressure and uncertainty around reimbursement, though he said once products are embedded they tend to be sticky. On the large Midwest health system win, Kelly said Spok wins by offering a broad enterprise suite, deep EHR and PBX integrations, and long-standing workflow expertise that is hard for competitors to displace.