In the current market session, Spok Holdings Inc. (NASDAQ:SPOK) price is at $12.75, after a 0.24% spike. However, over the past month, the stock fell by 22.15%, and in the past year, by 21.96%. Shareholders might be interested in knowing whether the stock is undervalued, even if the company is performing up to par in the current session. Spok Holdings P/E Ratio Analysis in Relation to Industry PeersThe P/E ratio is used by long-term shareholders to assess the company's market performance against aggregate m ...

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Revenue Performance - Total revenue for Q3 2025 was $33.867 million, a decrease of 2.9% compared to $34.870 million in Q3 2024[101] - Wireless revenue decreased by 2.6% to $17.794 million in Q3 2025 from $18.261 million in Q3 2024, primarily due to declines in paging revenue[106] - Software revenue decreased by 3.2% to $16.073 million in Q3 2025 from $16.609 million in Q3 2024, despite an increase in professional services revenue[106] - Paging revenue for the three months ended September 30, 2025, was $16.9 million, a decrease of $688,000 or 3.9% compared to $17.6 million in 2024, driven by a decline in units[111] - The company reported a significant increase in managed services revenue, which rose by 87.4% in Q3 2025 compared to Q3 2024[106] Income and Expenses - Net income for the nine months ended September 30, 2025, was $12.951 million, an increase of 14.4% from $11.321 million in the same period of 2024[101] - Operating income for Q3 2025 was $4.359 million, a decrease of 12.1% from $4.961 million in Q3 2024[101] - Total operating expenses for Q3 2025 were $29.508 million, a slight decrease of 1.3% from $29.909 million in Q3 2024[101] - Operating expenses for technology operations decreased by $0.4 million, or 6.5%, for the three months ended September 30, 2025, compared to the same period in 2024, due to a reduction in active transmitters[117] - Selling and marketing expenses increased by $0.2 million, or 5.7%, for the three months ended September 30, 2025, primarily driven by higher commissions and personnel costs[118] - General and administrative expenses decreased by $0.2 million, or 2.9%, for the three months ended September 30, 2025, while increasing by $1.0 million, or 4.1%, for the nine months ended September 30, 2025[119] Cash Flow and Financial Position - Net cash provided by operating activities for the nine months ended September 30, 2025, was $17.4 million, a decrease of $3.1 million compared to $20.5 million in 2024[132] - Net cash used in investing activities for the nine months ended September 30, 2025, was $1.6 million, reflecting purchases of property and equipment[133] - Net cash used in financing activities for the nine months ended September 30, 2025, was $23.6 million, primarily due to cash distributions to stockholders[134] - As of September 30, 2025, the company held cash and cash equivalents of $21.4 million, with a majority maintained in accounts exceeding insured limits[124] - A regular quarterly cash dividend of $0.3125 per share was declared, amounting to approximately $6.4 million, payable on December 9, 2025[135] Obligations and Debt - As of September 30, 2025, total contractual obligations amount to $11,197,000, with $4,030,000 due within one year[141] - Operating lease obligations total $8,261,000, with $2,680,000 due within one year[141] - Unconditional purchase obligations are $2,936,000, with $1,350,000 due within one year[141] - The company had no outstanding debt and no revolving credit facility as of September 30, 2025[145] Accounting and Estimates - There have been no changes to critical accounting policies affecting significant judgments and estimates since the 2024 Annual Report[144] - The company evaluates contingencies and establishes loss provisions for probable losses that can be reasonably estimated[140] - Management's estimates and assumptions are based on historical experience and other reasonable assumptions[143] - Actual results may differ from estimates under different assumptions or conditions[143] - Related party transactions are discussed in Note 13 of the Condensed Consolidated Financial Statements[142] Operational Metrics - Active transmitters decreased by 5.5% from 3,064 in Q3 2024 to 2,894 in Q3 2025[101] - The number of wireless units in service decreased from 730,000 as of September 30, 2024, to 684,000 as of September 30, 2025[108] - Average Revenue Per User (ARPU) increased to $8.19 in Q3 2025 from $7.95 in Q3 2024[108] Foreign Operations - The company conducts limited business outside the United States, resulting in immaterial exposure to foreign currency exchange rate fluctuations[146]

Financial Data and Key Metrics Changes - In Q3 2025, GAAP net income was $3.2 million or $0.15 per diluted share, down from $3.7 million or $0.18 per diluted share in Q3 2024 [17] - Total GAAP revenue in Q3 2025 was $33.9 million, a decrease from $34.9 million in the prior year [17] - Adjusted EBITDA for Q3 2025 totaled $6.6 million, compared to $7.5 million in the prior year [21] Business Line Data and Key Metrics Changes - Wireless revenue in Q3 2025 was $17.8 million, down from $18.3 million in Q3 2024, while software revenue was $16.1 million, slightly down from $16.6 million [17] - Professional services revenue increased to $5.5 million in Q3 2025, up nearly 13% year-over-year [20] - Managed services revenue experienced triple-digit growth year-over-year, contributing to the overall performance in professional services [20] Market Data and Key Metrics Changes - The company reported a 20 basis point sequential improvement in quarterly net unit churn, which decreased to 1.4% from 1.6% in the prior quarter [18] - Wireless average revenue per unit (RPU) increased by $0.24 or 3% from the prior year, driven by pricing actions and sales of the Gen A pager [18] Company Strategy and Development Direction - The company aims to generate cash and return capital to stockholders while investing in and growing its business [5] - The strategic focus includes continued investment in wireless and software solutions, disciplined expense management, and a stockholder-friendly capital allocation plan [9] - The company maintains a strong product platform, including Spok Console, Spok Messenger, and Spok Mobile, which are expected to drive future growth [14][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's performance despite seasonal headwinds and reaffirmed guidance for the year [3][22] - The company anticipates a strong fourth quarter, supported by a robust sales pipeline and large deals in progress [28][29] - Management highlighted the importance of recurring revenue from wireless services and the integration of paging with software operations [23] Other Important Information - The company has returned over $720 million to stockholders over the last 20 years, with nearly $100 million returned since the strategic pivot in early 2022 [8] - The company ended Q3 2025 with $21.4 million in cash and cash equivalents, with expectations for continued growth in cash balances [21] Q&A Session Summary Question: What drove the 55% year-over-year decline in license revenue? - Management indicated that license revenue is lumpy and directly related to sales, with variability expected from quarter to quarter [26][27] Question: What led to the weaker third quarter and how should the fourth quarter be viewed? - Management noted that while Q3 bookings were impacted, they remain bullish on the fourth quarter due to a strong pipeline and large deals [28][29] Question: Anticipated increase in R&D for 2026? - Management confirmed R&D investment will increase to over $13 million in 2026, focusing on enhancing the Spok Care Connect suite [30]

Core Insights - Spok Holdings reported quarterly earnings of $0.15 per share, missing the Zacks Consensus Estimate of $0.19 per share, and down from $0.18 per share a year ago, representing an earnings surprise of -21.05% [1] - The company posted revenues of $33.87 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 5.66%, and down from $34.87 million year-over-year [2] - Spok shares have increased by approximately 2.2% since the beginning of the year, while the S&P 500 has gained 17.2% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.20 on revenues of $34.4 million, and for the current fiscal year, it is $0.86 on revenues of $142.3 million [7] - The estimate revisions trend for Spok was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Wireless National industry, to which Spok belongs, is currently in the bottom 28% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

10/29/2025 Fourth Quarter Earnings| 02.23.23 Safe Harbor Statement Third Quarter Earnings| 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 differen ...

CONTACT: Al Galgano 952-224-6096 al.galgano@spok.com Spok Reports Third Quarter 2025 Results Continued Managed Services Revenue Growth and Focused Expense Management Drives Net Income Levels Company Reaffirms 2025 Financial Guidance NEWS RELEASE Exhibit 99.1 Plano, Tx. (October 29, 2025) - Spok Holdings, Inc. (NASDAQ: SPOK), a global leader in healthcare communications, today announced results for the third quarter ended September 30, 2025. In addition, the Company's Board of Directors declared a regular qu ...

Core Viewpoint - Spok Holdings, Inc. will release its third quarter 2025 operating results on October 29, 2025, after U.S. financial markets close [1] Financial Results Announcement - The financial results will be discussed in a conference call and webcast on the same day at 5:00 p.m. ET [1] - The presentation will be open to all interested parties and may include forward-looking information [1]

Core Viewpoint - Spok Holdings, Inc. will release its third quarter 2025 operating results on October 29, 2025, after U.S. financial markets close [1] Financial Results Announcement - The financial results will be discussed in a conference call and webcast on the same day at 5:00 p.m. ET [1] - The presentation will be open to all interested parties and may include forward-looking information [1]

Core Insights - Spok, Inc. is recognized for its secure healthcare communication solutions, with nine out of ten children's hospitals on the 2025-2026 U.S. News & World Report Best Children's Hospitals Honor Roll relying on its services [1] Company Overview - Spok, Inc. is a wholly owned subsidiary of Spok Holdings, Inc. and is a global leader in healthcare communications [1] - The company has been providing industry-leading secure healthcare communication solutions for over a decade [1] Industry Impact - The reliance of top children's hospitals on Spok's solutions highlights the company's significant role in supporting care collaboration and enhancing patient experiences in the healthcare sector [1]