Spok Holdings (SPOK) AI Stock Analysis

• Market Cap: $381.14M
• Dividend Yield: 6.75%
• Average Volume (3M): 113.94K
• Price to Earnings (P/E): 22.4
• Beta (1Y): 0.71
• Revenue Growth: 1.79%
• EPS Growth: 8.48%
• Country: US
• Employees: 418
• Sector: Healthcare
• Sector Strength: 38
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.22
• Shares Outstanding: 20,572,296
• 10 Day Avg. Volume: 100,519
• 30 Day Avg. Volume: 113,943
• PEG Ratio: 2.14
• Price to Book (P/B): 2.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.91
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 0.66
• Enterprise Value/Gross Profit: 3.26
• Enterprise Value/Ebitda: 3.70
• 1Y Price Target: $20.00
• Price Target Upside: 8.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 78 Outperform
• Price Target: $21.00 ▲(13.45%Upside)

Spok Holdings' strong financial performance and technical indicators drive the stock's attractiveness. The positive earnings call and strategic corporate events enhance its outlook. While the valuation is fair, the company's robust dividend yield adds appeal.

Positive Factors

Dividends

The company generates consistent cash flow to pay its compelling dividend and drive growth in the software business.

Growth Prospects

Analyst recommends upgrading the stock rating from Neutral to Buy, with an increased price target based on the company's valuation and growth prospects.

Market Potential

Spok serves a large addressable market, with only 26% market penetration in the U.S., indicating room for growth domestically and internationally.

Negative Factors

Overall Business Performance

The overall business, which consists of wireless/pagers (down 3%) and software/Spok Care Connect (up 1%) sales, was down 1% Y/Y in 1H24.

Paging Revenue Decline

Paging revenue in the quarter declined with a decrease in wireless units in service.

Spok Holdings Business Overview & Revenue Model

Company Description

Spok Holdings, Inc. is a publicly traded company specializing in healthcare communications. It provides solutions that enhance communication within hospitals and other healthcare environments, focusing on improving patient care and operational efficiency. Spok's products include secure messaging, clinical alerting, and other communication services designed to streamline workflows and ensure critical information reaches the right people at the right time.

How the Company Makes Money

Spok Holdings generates revenue primarily through the sale of its communication services and solutions to healthcare organizations. The company's revenue model includes subscription fees for its secure messaging and alerting services, as well as sales of software licenses and hardware. Maintenance and support services also contribute to its revenue streams. Additionally, Spok partners with healthcare institutions to offer customized communication solutions, which can involve long-term contracts and recurring revenue through service agreements. The company's focus on the healthcare sector allows it to capitalize on the increasing demand for efficient and reliable communication systems in hospitals and other medical facilities.

Spok Holdings Financial Statement Overview

Summary

Spok Holdings presents a stable financial profile with strong profitability and cash flow metrics, balanced by a healthy balance sheet. The company’s low leverage and effective cash management are significant strengths. However, the lack of revenue growth is a potential concern, suggesting a need for strategic initiatives to enhance top-line expansion.

Income Statement

Spok Holdings shows a stable revenue base with minor fluctuations. The TTM gross profit margin is healthy at 74.30%, and the net profit margin stands at 11.45%, indicating efficient cost management. However, revenue growth has been stagnant, and the EBIT margin of 14.70% reflects moderate operational efficiency. Overall, profitability metrics are strong, but growth remains a concern.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.05, highlighting minimal leverage and financial stability. The equity ratio of 74.22% underscores a solid capital structure. Return on Equity (ROE) is modest at 10.49%, suggesting that while the company is financially sound, it could improve in generating returns for shareholders.

Cash Flow

Spok Holdings demonstrates robust cash flow management, with a free cash flow to net income ratio of 1.64, indicating strong cash generation relative to profits. The operating cash flow to net income ratio is 1.83, reflecting efficient cash conversion. Free cash flow growth is steady, supporting the company's liquidity and ability to invest in growth opportunities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	140.74M	137.65M	139.03M	134.53M	142.15M	148.18M
Gross Profit	112.07M	109.22M	112.21M	106.27M	109.58M	119.64M
EBITDA	24.80M	24.18M	26.62M	11.14M	-629.00K	-12.71M
Net Income	22.84M	14.96M	15.67M	21.86M	-22.18M	-44.23M
Balance Sheet
Total Assets	208.67M	217.10M	227.68M	244.48M	248.15M	277.29M
Cash, Cash Equivalents and Short-Term Investments	20.24M	29.14M	31.99M	35.75M	59.58M	78.72M
Total Debt	7.83M	8.77M	11.09M	15.70M	17.29M	14.72M
Total Liabilities	57.73M	62.36M	63.91M	72.40M	74.46M	76.68M
Stockholders Equity	150.94M	154.75M	163.77M	172.08M	173.69M	200.61M
Cash Flow
Free Cash Flow	25.31M	25.71M	22.77M	2.68M	-7.27M	11.46M
Operating Cash Flow	28.79M	28.92M	26.18M	6.46M	7.97M	26.16M
Investing Cash Flow	-2.78M	-3.21M	-3.42M	11.26M	-225.00K	-14.57M
Financing Cash Flow	-29.65M	-28.54M	-26.68M	-26.22M	-11.75M	-10.37M

Spok Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.51
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPOK, the sentiment is Positive. The current price of 18.51 is above the 20-day moving average (MA) of 17.70, above the 50-day MA of 17.07, and above the 200-day MA of 15.89, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 64.74 is Neutral, neither overbought nor oversold. The STOCH value of 44.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SPOK.

Spok Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SPOK	78 Outperform	$381.14M	22.40	11.03%	6.75%	1.79%	8.48%
HCAT	64 Neutral	$245.00M	―	-19.80%	―	4.88%	37.87%
TBRG	63 Neutral	$312.79M	―	-10.98%	―	3.15%	61.71%
NRC	59 Neutral	$286.64M	16.39	58.28%	3.82%	-4.08%	-36.42%
Sector *	51 Neutral	$7.35B	0.50	-65.61%	2.47%	15.28%	1.44%
DH	50 Neutral	$547.31M	―	-86.36%	―	-3.04%	-152.59%
CTEV	39 Underperform	$655.32M	―	-198.69%	―	-3.33%	-86.58%

Spok Holdings Corporate Events

Spok Holdings Highlights Strategic Goals in Investor Presentation

On August 1, 2025, Spok Holdings, Inc. released an investor presentation highlighting its strategic goals and financial performance. The company emphasized its strong cash flow generation, substantial returns to shareholders, and a focus on expanding its software pipeline. Spok’s commitment to maintaining long-standing customer relationships with top hospitals and its leadership in healthcare communications were underscored. The presentation also addressed fiscal challenges in the healthcare industry and Spok’s strategies to manage these, including new product releases and managed maintenance agreements. Spok’s top client satisfaction scores and its top-rated spot in a new category for critical alert messaging by Black Book further reinforce its strong market position.

The most recent analyst rating on (SPOK) stock is a Hold with a $15.00 price target. To see the full list of analyst forecasts on Spok Holdings stock, see the SPOK Stock Forecast page.

Spok Holdings Reports Strong Q2 2025 Financial Results

Spok Holdings announced its second quarter 2025 results, highlighting a 33% increase in net income and a 6% rise in adjusted EBITDA compared to the previous year. The company reported significant growth in software operations bookings, which rose by 34% year-over-year, and increased its financial guidance for 2025, reflecting strong performance and strategic investments in its products and infrastructure.

The most recent analyst rating on (SPOK) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on Spok Holdings stock, see the SPOK Stock Forecast page.

Spok Holdings’ Annual Meeting Approves Key Proposals

On July 22, 2025, Spok Holdings, Inc. held its 2025 Annual Meeting of Stockholders. The meeting involved electing six directors, ratifying Grant Thornton LLP as the independent registered public accounting firm for the year ending December 31, 2025, and approving the compensation of the company’s named executive officers on a non-binding advisory basis. All proposals were successfully passed, with significant shareholder participation.

The most recent analyst rating on (SPOK) stock is a Hold with a $15.00 price target. To see the full list of analyst forecasts on Spok Holdings stock, see the SPOK Stock Forecast page.

Spok Holdings Highlights Strategic Goals in Investor Presentation

On May 5, 2025, Spok Holdings, Inc. released an investor presentation highlighting its strategic goals and financial performance. The company emphasized its strong balance sheet, significant free cash flow generation, and commitment to returning capital to shareholders. Spok also outlined its growth strategy, which includes expanding its software operations and stabilizing wireless revenue. The company continues to lead in healthcare communications, earning top client satisfaction scores and a top-rated spot in a new category for critical alert messaging solutions.