Spok Reiterates 2026 Outlook After License Sale

The Tip Desk · October 28, 2026 · 3 min read

Third-quarter net income was $9.7 million, including a gain on narrowband licenses, as cash reached $30.1 million.

Spok Holdings, Inc. (SPOK), a healthcare communications company, reported third-quarter net income of $9.7 million, up 203.4% from $3.2 million a year earlier, a result that included a gain on the sale of narrowband spectrum licenses.

Adjusted EBITDA was $8.6 million, up 29.6% from $6.6 million in the year-ago quarter. Operating income was $5.6 million, or 17.1% of revenue, versus $4.4 million, or 12.9% of revenue, a year earlier.

The company closed an agreement to sell certain narrowband licenses in its two-way paging inventory, adding more than $7.5 million to cash after customary transaction fees. Cash and cash equivalents were $30.1 million at September 30, 2026, with no debt.

Total revenue was $33.0 million, down 2.6% from the year-ago quarter. Wireless revenue was $17.0 million, down 4.5%, with paging revenue $16.0 million, down 5.2%. Software revenue was $16.0 million, essentially unchanged at a 0.4% decline, as license revenue rose 29.5% and managed services rose 30.3%, while professional services projects fell 18.6% and hardware fell 39.9%.

Wireless units in service ended at 634 thousand, down 7.3% from 684 thousand a year earlier. The sequential decline was 1.7%, a 12-basis-point improvement from the second-quarter decline. Wireless average revenue per unit was $8.36, up 2.1% from $8.19 a year earlier.

Software operations bookings were $3.2 million, down 28.3% from $4.4 million a year earlier. Software backlog was $52.0 million at September 30, 2026, down 14.6% from $60.9 million a year earlier.

Operating expenses were $27.4 million, down 7.3% from $29.5 million a year earlier. Research and development costs were $3.2 million. Capital returned to stockholders in the quarter totaled $6.5 million. The board declared a regular quarterly dividend of $0.3125 a share, payable December 9, 2026.

Chief executive Vincent D. Kelly said the company was able to deliver the more than 200% year-over-year increase in net income, the nearly 30% increase in adjusted EBITDA, and the 12-basis-point improvement in wireless unit attrition from the already low second-quarter rate, as well as an increase in year-over-year wireless ARPU. He said the company closed the sale of certain narrowband spectrum licenses as part of a strategic realignment outlined earlier in the year.

Kelly said Spok is actively incorporating artificial intelligence to drive operational efficiencies, with a focus on accelerating product development timelines and reducing time to market for Care Connect Suite capabilities. The company announced the addition of Shiv Gopalkrishnan as executive vice president and general manager, bringing engineering, product strategy, and sales under one leader.

Based on the anticipated full-year financial impact of the strategic realignment and visibility into the product sales pipeline, Spok reiterated full-year 2026 guidance of $132.5 million to $139.5 million in revenue and $28.0 million to $32.0 million in adjusted EBITDA. Wireless revenue is guided at $67.0 million to $70.0 million and software revenue at $65.5 million to $69.5 million.

The company said its focus continues to be on generating cash flow and returning capital to stockholders while investing for future growth. Kelly said the quarterly dividend currently represents a yield in excess of 10%.