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3 Reasons Growth Investors Will Love Spok (SPOK)
ZACKS· 2025-08-04 17:46
Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying the right ones involves significant risk and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score aids in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - Spok Holdings (SPOK) is currently recommended due to its favorable Growth Score and top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is crucial for attracting investor attention, with double-digit growth being particularly favorable [3] - Spok's historical EPS growth rate is 363%, with a projected EPS growth of 17.8% this year, surpassing the industry average of 16.6% [4] Group 3: Asset Utilization - The asset utilization ratio, or sales-to-total-assets (S/TA) ratio, is an important metric for growth stocks, indicating efficiency in generating sales [5] - Spok's S/TA ratio is 0.66, significantly higher than the industry average of 0.35, indicating better asset utilization [5] Group 4: Sales Growth - Sales growth is another critical factor, with Spok expected to achieve a sales growth of 3.4% this year, compared to the industry average of 0% [6] Group 5: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with stock price movements [7] - The current-year earnings estimates for Spok have increased by 4.9% over the past month, indicating positive momentum [8] Group 6: Overall Positioning - Spok has earned a Growth Score of B and a Zacks Rank 2 due to positive earnings estimate revisions, positioning it well for potential outperformance [10]
All You Need to Know About Spok (SPOK) Rating Upgrade to Buy
ZACKS· 2025-08-01 17:00
Spok Holdings (SPOK) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.The power ...
What Makes Spok (SPOK) a Good Fit for 'Trend Investing'
ZACKS· 2025-08-01 13:50
When it comes to short-term investing or trading, they say "the trend is your friend." And there's no denying that this is the most profitable strategy. But making sure of the sustainability of a trend to profit from it is easier said than done.Often, the direction of a stock's price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. So, it's important to ensure that there are enough factors -- such as sound fundamentals, positive earnings estimate rev ...
Spok(SPOK) - 2025 Q2 - Quarterly Report
2025-07-31 20:03
UNITED STATES SECURITIES AND EXCHANGE COMMISSION ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File Number: 001-32358 SPOK HOLDINGS, INC. (Exact name of registrant as specified in its charter) Washington, D.C. 20549 FORM10-Q (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2025 or Delaware 16-1694797 (State or other jurisdiction ...
Spok(SPOK) - 2025 Q2 - Earnings Call Transcript
2025-07-30 22:00
Financial Data and Key Metrics Changes - In Q2 2025, GAAP net income was $4,600,000 or $0.22 per diluted share, up from $3,400,000 or $0.17 per diluted share in Q2 2024 [25] - Total GAAP revenue increased to $35,700,000 from $34,000,000 in the prior year [26] - Adjusted EBITDA for Q2 2025 was $7,500,000 compared to $7,000,000 in the prior year [30] Business Line Data and Key Metrics Changes - Software operations bookings grew by over 34% year-over-year, reaching $11,700,000 in Q2 2025 [11] - Software revenue increased by 10%, with license revenue showing double-digit growth and managed services revenue experiencing triple-digit growth [11] - Wireless revenue was $18,400,000, with a net unit churn improvement to 1.6% from 2.1% in the prior quarter [26] Market Data and Key Metrics Changes - The company maintains a blue-chip customer base of over 2,200 hospitals, with more than 80% of revenue being recurring [20] - The average revenue per unit (ARPU) increased by $0.36 or nearly 5% year-over-year, driven by pricing actions and new product sales [26] Company Strategy and Development Direction - The company aims for double-digit full-year software bookings growth relative to 2024, supported by ongoing investments in technology and sales [5] - The strategic focus remains on generating cash and returning capital to stockholders while investing in business growth [7] - The company is exploring opportunities to integrate AI into its products and operating platform [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the competitive positioning and long-term relationships with healthcare systems [6] - The outlook for the remainder of 2025 is optimistic, with increased guidance for revenue and adjusted EBITDA [12] - The company anticipates annual free cash flow in the range of $25,000,000 to $29,000,000 [33] Other Important Information - The company reported a one-time gain of approximately $700,000 from the sale of a legacy domain name [31] - Cash and cash equivalents at the end of Q2 2025 were $20,200,000, expected to grow through the remainder of the year [32] Q&A Session Summary Question: Impact of increased fees for unreturned pagers on net unit churn - Management indicated that the price increase for unreturned equipment would not impact unit churn as it applies after disconnection [42][44] Question: Progress of the business development team focused on new logos - The business development team has been successful in adding smaller accounts, with ongoing efforts to build the pipeline [49][50] Question: Breakdown of software bookings between new customer acquisitions and expansions - Approximately 15% of software bookings were related to new logos, with ongoing efforts to increase this percentage [51][52]
Spok(SPOK) - 2025 Q2 - Earnings Call Presentation
2025-07-30 21:00
Safe Harbor Statement Second Quarter 2025 Financial Highlights 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 ex ...
Spok(SPOK) - 2025 Q2 - Quarterly Results
2025-07-30 20:00
NEWS RELEASE Exhibit 99.1 CONTACT: Al Galgano 952-224-6096 al.galgano@spok.com 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 Direc ...
Spok Holdings: Positive Q1 Momentum Tempered By Lack Of Significant Growth Catalysts
Seeking Alpha· 2025-05-22 07:42
Group 1 - Stork Research focuses on micro-cap and small-cap equities that exhibit strong growth at reasonable valuations, emphasizing a GARP (Growth at a Reasonable Price) strategy [2] - The analysis covers sectors such as industrials and technology, which are historically rich in multi-bagger potential [2] - The geographic scope of Stork Research includes the U.S., Canada, and select European markets, specifically Poland and Germany [2] Group 2 - Stork Research aims to uncover inefficiencies in the market and identify unique, high-conviction investment ideas that are often overlooked [2] - The firm typically avoids highly cyclical industries but may target recovery-phase opportunities or contrarian plays in overvalued names [2]
Spok(SPOK) - 2025 Q1 - Quarterly Report
2025-05-01 20:00
[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Condensed Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Q1 2025, detailing financial position, operational performance, and cash flows [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet reflects a decrease in total assets to $204.5 million, driven by reduced cash and cash equivalents Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $19,873 | $29,145 | | Total current assets | $50,405 | $61,297 | | Goodwill | $99,175 | $99,175 | | Total assets | $204,476 | $217,103 | | **Liabilities & Equity** | | | | Total current liabilities | $40,767 | $48,774 | | Total liabilities | $52,738 | $62,357 | | Total stockholders' equity | $151,738 | $154,746 | | Total liabilities and stockholders' equity | $204,476 | $217,103 | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Total revenue increased to $36.3 million in Q1 2025, driven by software growth, leading to a net income of $5.2 million Q1 2025 vs Q1 2024 Statement of Operations (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Total revenue** | **$36,294** | **$34,909** | | Wireless revenue | $18,474 | $18,595 | | Software revenue | $17,820 | $16,314 | | Total operating expenses | $30,276 | $30,018 | | **Operating income** | **$6,018** | **$4,891** | | **Net income** | **$5,196** | **$4,236** | | Diluted net income per common share | $0.25 | $0.21 | | Cash dividends declared per common share | $0.3125 | $0.3125 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating activities generated $2.3 million in Q1 2025, with a net decrease in cash and cash equivalents of $9.3 million Cash Flow Summary for the Three Months Ended March 31 (in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $2,253 | $1,998 | | Net cash used in investing activities | ($745) | ($875) | | Net cash used in financing activities | ($10,790) | ($9,814) | | **Net decrease in cash and cash equivalents** | **($9,272)** | **($8,649)** | | Cash and cash equivalents, end of period | $19,873 | $23,340 | [Unaudited Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Unaudited%20Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies, business operations, and financial statement components, including revenue disaggregation and dividends - Spok is a global leader in healthcare communications, delivering clinical information to care teams through wireless messaging and enterprise-wide systems for contact centers, clinical alerting, and mobile communications[19](index=19&type=chunk)[20](index=20&type=chunk)[21](index=21&type=chunk) Revenue Disaggregation by Type (in thousands) | Revenue Type | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Wireless Revenue** | **$18,474** | **$18,595** | | Paging revenue | $17,607 | $17,970 | | Product and other revenue | $867 | $625 | | **Software Revenue** | **$17,820** | **$16,314** | | License | $2,631 | $2,626 | | Professional services - projects | $4,471 | $3,561 | | Professional services - managed services | $1,315 | $464 | | Hardware | $321 | $384 | | Maintenance | $9,082 | $9,279 | | **Total Revenue** | **$36,294** | **$34,909** | - The balance of remaining performance obligations was **$63.2 million** as of March 31, 2025. The company expects to recognize approximately **$36.5 million** of this amount over the next 12 months[45](index=45&type=chunk) - The company declared a quarterly cash dividend of **$0.3125 per share** on February 26, 2025, totaling **$6.6 million**. A subsequent dividend of the same amount was declared on April 30, 2025[58](index=58&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 financial results, highlighting revenue growth, operating income increase, and liquidity position Q1 2025 vs Q1 2024 Results Summary (in thousands) | Metric | Q1 2025 | Q1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | $36,294 | $34,909 | 4.0% | | Wireless Revenue | $18,474 | $18,595 | (0.7)% | | Software Revenue | $17,820 | $16,314 | 9.2% | | Operating Income | $6,018 | $4,891 | 23.0% | | Net Income | $5,196 | $4,236 | 22.7% | [Results of Operations](index=21&type=section&id=Results%20of%20Operations) Total revenue increased by 4.0% year-over-year, driven by software growth, while wireless revenue saw a slight decline - The decrease in wireless revenue was driven by a secular decline in wireless units in service (from **753k** to **705k** YoY), which was partially offset by an increase in ARPU from **$7.89** to **$8.24** due to price increases initiated in September 2024[101](index=101&type=chunk) - Software revenue growth was primarily due to increased professional services revenue, resulting from higher sales and hiring efforts to align staffing with a growing backlog[106](index=106&type=chunk) - Selling and marketing expenses increased by **$0.7 million (16.8%)** due to additional headcount, higher advertising and event expenses, and increased commissions related to software bookings[110](index=110&type=chunk) - Technology operations expenses decreased by **$0.4 million (7.1%)** due to network rationalization efforts, which reduced the number of active transmitters by **6.3%** year-over-year[109](index=109&type=chunk) [Liquidity and Capital Resources](index=24&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is supported by cash from operations and its cash balance, deemed sufficient for future needs - As of March 31, 2025, the company held cash and cash equivalents of **$19.9 million**[113](index=113&type=chunk) Cash Flow Summary for the Three Months Ended March 31 (in thousands) | Activity | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $2,253 | $1,998 | $255 | | Net cash used in investing activities | ($745) | ($875) | $130 | | Net cash used in financing activities | ($10,790) | ($9,814) | ($976) | - The Board of Directors authorized a share repurchase program for up to **$10 million** of the company's common stock in February 2022[118](index=118&type=chunk) [Commitments and Contingencies](index=26&type=section&id=Commitments%20and%20Contingencies) Total contractual obligations as of March 31, 2025, amounted to $14.35 million, including operating leases and purchase obligations Contractual Obligations as of March 31, 2025 (in thousands) | Obligation Type | Total | 1 year or less | 1 to 3 years | 3 to 5 years | More than 5 years | | :--- | :--- | :--- | :--- | :--- | :--- | | Operating lease obligations | $9,761 | $3,201 | $4,065 | $1,515 | $980 | | Unconditional purchase obligations | $4,589 | $2,218 | $2,371 | $— | $— | | **Total contractual obligations** | **$14,350** | **$5,419** | **$6,436** | **$1,515** | **$980** | [Quantitative and Qualitative Disclosures about Market Risk](index=27&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company reports minimal exposure to market risk, with no outstanding debt and immaterial foreign currency exchange risk - As of March 31, 2025, the company had no outstanding debt and therefore no material exposure to interest rate risk[135](index=135&type=chunk) - The financial impact of transactions in foreign currencies is immaterial, resulting in no material exposure to foreign currency exchange rate risk[136](index=136&type=chunk) [Controls and Procedures](index=27&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal controls - Management, including the principal executive officer and principal financial officer, concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[137](index=137&type=chunk) - No changes were made to the company's internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[138](index=138&type=chunk) [PART II. OTHER INFORMATION](index=27&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=27&type=section&id=Item%201.%20Legal%20Proceedings) No material changes to legal proceedings were reported during Q1 2025, consistent with the 2024 Annual Report - There have been no material changes during the three months ended March 31, 2025, to the commitments and contingencies previously reported in the 2024 Annual Report[83](index=83&type=chunk)[139](index=139&type=chunk) [Risk Factors](index=27&type=section&id=Item%201A.%20Risk%20Factors) The risk factors disclosed in the 2024 Annual Report on Form 10-K have not materially changed during Q1 2025 - The risk factors included in the 2024 Annual Report have not materially changed during the three months ended March 31, 2025[140](index=140&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=28&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase any shares of its common stock during the three months ended March 31, 2025 - The Company did not repurchase any shares of its common stock during the three months ended March 31, 2025[141](index=141&type=chunk) [Other Information](index=28&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement in Q1 2025 - During the three months ended March 31, 2025, no director or officer of the Company adopted or terminated a 'Rule 10b5-1 trading arrangement' or 'non-Rule 10b5-1 trading arrangement'[142](index=142&type=chunk) [Exhibits](index=29&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed, including CEO and CFO certifications and Inline XBRL financial data files - The exhibits filed with this report include certifications from the Chief Executive Officer and Chief Financial Officer, as well as Inline XBRL documents[143](index=143&type=chunk)[145](index=145&type=chunk)
Spok Holdings (SPOK) Surpasses Q1 Earnings and Revenue Estimates
ZACKS· 2025-04-30 23:10
Group 1: Earnings Performance - Spok Holdings reported quarterly earnings of $0.25 per share, exceeding the Zacks Consensus Estimate of $0.18 per share, and up from $0.21 per share a year ago, representing an earnings surprise of 38.89% [1] - The company posted revenues of $36.29 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 6.75%, compared to year-ago revenues of $34.91 million [2] Group 2: Stock Performance and Outlook - Spok shares have declined approximately 10.2% since the beginning of the year, while the S&P 500 has decreased by 5.5% [3] - The current consensus EPS estimate for the upcoming quarter is $0.20 on revenues of $34.3 million, and for the current fiscal year, it is $0.79 on revenues of $138 million [7] Group 3: Industry Context - The Wireless National industry, to which Spok belongs, is currently ranked in the top 31% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Cambium (CMBM), another company in the same industry, is expected to report a quarterly loss of $0.11 per share, reflecting a year-over-year change of +76.1%, with revenues anticipated to be $45.53 million, up 7.5% from the previous year [9]