Spok(SPOK) - 2025 Q3 - Quarterly Results

Financial Performance - Year-to-date net income increased by 14.4% to $12.951 million compared to the prior year period[2] - Total revenue for the third quarter was $33.867 million, down 2.9% from $34.870 million in the prior year[8] - Operating income for Q3 2025 was $4.359 million, representing 12.9% of total revenue, compared to $4.961 million or 14.2% in Q3 2024[26] - 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[31] - Net income for the three months ended September 30, 2025, was $3,203,000, a decrease from $3,660,000 in the same period last year[37] Revenue Breakdown - Wireless average revenue per unit (ARPU) rose to $8.19, up 3.0% year-over-year[2] - Wireless revenue decreased to $17.794 million in Q3 2025 from $18.261 million in Q3 2024, while software revenue decreased to $16.073 million from $16.609 million[26] - Average Revenue Per User (ARPU) for accounts with 1 to 100 units was $12.92, an increase from $12.88 in the previous quarter[33] - Average Revenue Per User (ARPU) for accounts with 101 to 1,000 units was $9.83, up from $9.72 in the previous quarter[33] - Average Revenue Per User (ARPU) for accounts with more than 1,000 units was $7.51, a slight decrease from $7.54 in the previous quarter[33] Expenses and Costs - Adjusted EBITDA for the third quarter was $6.610 million, a decrease of 12.3% from the previous year[8] - Total operating expenses for Q3 2025 were $29.508 million, accounting for 87.1% of total revenue, compared to 85.8% in Q3 2024[26] - Operating expenses for the nine months ended September 30, 2025, totaled $90,078,000, compared to $89,434,000 in the same period last year[35] - Adjusted operating expenses for the three months ended September 30, 2025, were $28,479,000, compared to $28,509,000 in the same period last year[35] Cash and Assets - The company has maintained a cash and cash equivalents balance of $21.4 million with no debt as of September 30, 2025[2] - Cash and cash equivalents decreased to $21.379 million from $29.145 million at the end of 2024[29] - Total assets decreased to $209.653 million as of September 30, 2025, from $217.103 million at the end of 2024[29] Shareholder Returns - Capital returned to stockholders in Q3 2025 was $6.4 million, a 1.7% increase from the previous year[8] - Cash dividends declared per common share remained stable at $0.3125 for both Q3 2025 and Q3 2024[26] Guidance and Future Outlook - The company expects full year 2025 total revenue guidance to be between $138.0 million and $143.5 million[11] Customer Metrics - Total account size ending units in service reached 684,000, a decrease of 1.4% from 694,000 in the previous quarter[33] - Healthcare segment accounted for 84.1% of total ending units in service, slightly down from 85.7% in the previous quarter[33] - Total account size ending units in service for the previous year was 765,000, indicating a year-over-year decline in total units[33]