Spok Holdings reported fourth‑quarter 2025 revenue of $33.86 million, a 0.1% decline from the $33.89 million earned in Q4 2024. Non‑GAAP earnings per share were $0.14, falling short of the consensus estimate of $0.18 by $0.04, a miss of roughly 22%. The revenue shortfall reflects a modest decline in the legacy wireless paging segment, which was partially offset by a 83% sequential jump in software operations bookings that drove a slight increase in wireless revenue.
The company’s software business, the focus of its strategic pivot, generated $12.3 million in revenue, up 12% from the same quarter a year earlier, while the wireless segment produced $21.6 million, down 1.5% YoY. The software segment’s growth is driven by higher‑margin professional services and managed services, which have begun to offset the decline in paging revenue. The mix shift toward software is a key element of Spok’s transition strategy, as the company seeks to replace the declining paging market with higher‑margin software solutions.
Full‑year 2025 revenue reached $139.71 million, a 1.5% increase from $138.12 million in 2024, and net income rose 6.1% to $15.88 million. Adjusted EBITDA margin for the year held steady at 20.8%, reflecting disciplined cost management amid the transition. The company’s balance sheet remains strong, with cash reserves and no debt, giving it flexibility to invest in new platforms while returning capital to shareholders.
Spok guided 2026 total revenue to $136.0 million–$143.0 million, a range that places the midpoint at $139.5 million, slightly below the analyst consensus of $147.08 million. The guidance signals a cautious outlook, acknowledging the ongoing decline in wireless revenue while maintaining confidence in software growth. Management emphasized that the high‑end of the guidance range would still deliver revenue growth year‑over‑year, driven by continued software expansion.
"I am very proud of our Spok team as they were able to regain the positive momentum that we saw in the beginning of 2025," said Vincent D. Kelly, chief executive officer of Spok Holdings, Inc. "In the fourth quarter, we generated a nearly 83% sequential increase in software operations bookings, while continued growth in average revenue per wireless unit drove a slight increase in wireless revenue. Our focus continues to be to generate cash flow and return capital to stockholders, while responsibly investing..." Kelly also noted, "Based on our positive momentum in the fourth quarter of 2025, and our visibility into our very robust product sales pipeline, we provided full year 2026 financial guidance estimates for revenue and adjusted EBITDA. At the high‑end of the guidance range, we are on track to again grow consolidated revenue in 2026, on a year‑over‑year basis, with continued growth in software revenue, partially offset with declines in wireless revenue. The midpoint of our adjusted EBITDA guidance is also up from 2025." He added, "Our strategy balances generating cash flow with investing in new platforms and capabilities. While growth has been modest, we aim for higher growth in the future by shifting investments towards new technologies, including AI."
The market reaction was muted, with after‑hours trading showing a slight decline of 0.22% in pre‑market activity. Investors focused on the revenue and EPS misses, which were the primary drivers of the modest negative response. The guidance, while conservative, was viewed as a realistic reflection of the company’s transition trajectory.
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