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]