Core Insights - Spok reported Q2 2025 GAAP revenue of $35.7 million, exceeding Wall Street expectations of $35.0 million, with diluted EPS at $0.22, above the $0.18 estimate, reflecting a positive business momentum [1][2][10] - The company raised its full-year guidance, indicating confidence in continued growth, particularly in the software segment [1][10] Financial Performance - Q2 2025 revenue increased by 5.0% year-over-year, driven mainly by the software segment, while operating expenses rose by 2.7% [5][6] - Net income for Q2 2025 was $4.6 million, a 35.3% increase from $3.4 million in Q2 2024 [2][5] - Adjusted EBITDA for Q2 2025 was reported at $7.5 million, up 7.1% from $7.0 million in Q2 2024 [2][5] Business Overview and Strategy - Spok focuses on healthcare communications software and wireless messaging, with its primary product, Spok Care Connect, enhancing clinical communications in hospitals [3][4] - The company is concentrating on growing its healthcare software segment while managing the decline in traditional wireless messaging [4] Segment Performance - Software revenue grew by 10.0% to $17.2 million, with bookings increasing by 34.1% to $11.7 million and a backlog of $65.2 million, up nearly 19% [6][10] - Wireless revenue remained stable at $18.4 million, with a slight decline in paging revenue by 2.5% and a 7.1% decrease in wireless units in service [7][8] Cash Generation and Returns - Spok ended the quarter with $20.2 million in cash and no debt, returning $6.5 million to shareholders, maintaining a quarterly dividend of $0.3125 per share [9][11] - Research and development spending was steady at $6.1 million for the first half of the year, supporting ongoing investments in software and wireless platforms [9] Management Outlook - Management raised full-year revenue guidance to $138.0–$143.5 million and adjusted EBITDA to $28.5–$32.5 million for 2025, anticipating software revenue growth while wireless revenue may remain flat or decline slightly [10][11]