Spok Reports First Quarter 2026 Results

Year-Over-Year Software Managed Services Revenue Growth of Nearly 57%

Company Reiterates 2026 Financial Guidance

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/

Al Galgano

952-224-6096

al.galgano@spok.com