Spok Holdings (SPOK) AI Stock Analysis

• Market Cap: $274.99M
• Dividend Yield: 9.36%
• Average Volume (3M): 161.71K
• Price to Earnings (P/E): 16.7
• Beta (1Y): 0.68
• Revenue Growth: 1.47%
• EPS Growth: 11.33%
• Country: US
• Employees: 418
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.15
• Shares Outstanding: 20,598,170
• 10 Day Avg. Volume: 159,526
• 30 Day Avg. Volume: 161,708
• PEG Ratio: -3.43
• Price to Book (P/B): 2.10
• Price to Sales (P/S): 2.36
• P/FCF Ratio: 12.63
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 2.50
• Enterprise Value/Gross Profit: 3.84
• Enterprise Value/Ebitda: 13.17
• 1Y Price Target: $21.00
• Price Target Upside: 57.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.86
• Revenue Forecast (FY): $142.30M

• Rating: 72 Outperform
• Price Target: $14.50 ▲(9.02% Upside)

Spok Holdings' overall stock score is driven by its solid financial performance and attractive valuation, supported by strong recent corporate events. However, technical indicators suggest bearish momentum, which slightly offsets the positive aspects.

Positive Factors

Strong Financial Performance

The increase in net income and EBITDA demonstrates Spok's ability to enhance profitability and operational efficiency, supporting long-term financial stability.

No Debt and Strong Cash Position

Maintaining a debt-free status with a strong cash position enhances Spok's financial flexibility, allowing for strategic investments and resilience against economic fluctuations.

Robust Profit Margins

High and stable profit margins indicate efficient cost management and pricing power, which are crucial for sustaining long-term profitability.

Negative Factors

Declining Revenue Growth

Negative revenue growth suggests challenges in expanding sales, which could hinder future profitability and market share expansion if not addressed.

Negative Free Cash Flow Growth

Declining free cash flow growth may limit Spok's ability to fund new projects and investments, potentially impacting long-term growth and innovation.

Declining Return on Equity

A declining return on equity can indicate less efficient use of shareholder funds, which may affect investor confidence and long-term value creation.

Spok Holdings Business Overview & Revenue Model

Company Description

Spok Holdings, Inc. is a leading provider of critical communications solutions, primarily serving the healthcare sector, but also catering to other industries in need of reliable and secure messaging services. The company offers a range of products and services, including secure messaging, clinical communication platforms, and alerting solutions, designed to enhance communication workflows and improve patient care. With a focus on integrating technology into daily operations, Spok enables organizations to streamline their communication processes and ensure timely information delivery.

How the Company Makes Money

Spok Holdings generates revenue through a subscription-based model for its software and communication solutions, as well as through the sale of hardware products. Key revenue streams include monthly or annual fees from healthcare organizations for access to its secure messaging platforms and related services. Additional revenue is derived from professional services such as implementation, training, and ongoing support. Spok also benefits from partnerships with healthcare technology providers and system integrators that help expand its reach and enhance its service offerings, contributing to its overall financial performance.

Spok Holdings Financial Statement Overview

Summary

Spok Holdings demonstrates solid profitability and financial stability, with strong margins and low leverage. However, recent revenue and free cash flow declines could pose challenges. Continued focus on revenue growth and cash flow management will be crucial for sustaining financial health.

Income Statement

Spok Holdings shows strong profitability with a consistent gross profit margin around 80% and improving net profit margins, reaching 12.12% in TTM. However, revenue growth has been negative recently, indicating potential challenges in expanding sales. EBIT and EBITDA margins are healthy, reflecting efficient operations.

Balance Sheet

The company maintains a low debt-to-equity ratio, indicating prudent financial leverage. Return on equity is positive, though slightly declining, suggesting effective use of equity. The equity ratio remains strong, showcasing financial stability.

Cash Flow

Operating cash flow is robust relative to net income, indicating good cash generation. However, free cash flow growth has been negative recently, which could impact future investments. The free cash flow to net income ratio is strong, reflecting efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	139.74M	137.65M	139.03M	134.53M	142.15M	148.18M
Gross Profit	90.70M	109.22M	81.87M	75.28M	69.89M	110.58M
EBITDA	26.47M	24.22M	26.82M	4.57M	-16.89M	-12.71M
Net Income	16.59M	14.96M	15.67M	21.86M	-22.18M	-44.23M
Balance Sheet
Total Assets	209.65M	217.10M	227.68M	244.48M	248.15M	277.29M
Cash, Cash Equivalents and Short-Term Investments	21.38M	29.14M	31.99M	35.75M	59.58M	78.72M
Total Debt	7.36M	8.77M	11.09M	15.70M	17.29M	14.72M
Total Liabilities	60.96M	62.36M	63.91M	72.40M	74.46M	76.68M
Stockholders Equity	148.70M	154.75M	163.77M	172.08M	173.69M	200.61M
Cash Flow
Free Cash Flow	22.62M	25.71M	22.77M	2.68M	-7.27M	11.46M
Operating Cash Flow	25.83M	28.92M	26.18M	6.46M	7.97M	26.16M
Investing Cash Flow	-2.51M	-3.21M	-3.42M	11.26M	-225.00K	-14.57M
Financing Cash Flow	-29.76M	-28.54M	-26.68M	-26.22M	-11.75M	-10.37M

Spok Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 13.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 13.3 is above the 20-day moving average (MA) of 13.06, below the 50-day MA of 13.97, and below the 200-day MA of 15.58, indicating a neutral trend. The MACD of -0.16 indicates Negative momentum. The RSI at 50.99 is Neutral, neither overbought nor oversold. The STOCH value of 70.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SPOK.

Spok Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SPOK	72 Outperform	$274.99M	16.68	10.88%	9.36%	1.47%	11.33%
TBRG	64 Neutral	$333.95M	118.57	1.57%	―	3.75%	―
OPRX	61 Neutral	$238.04M	-5,042.31	0.03%	―	24.19%	―
CCLD	61 Neutral	$136.09M	78.62	21.49%	―	2.97%	―
NRC	59 Neutral	$417.58M	26.15	66.01%	2.60%	-3.50%	-37.46%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
HCAT	50 Neutral	$172.58M	-1.51	-31.33%	―	4.64%	-17.17%

Spok Holdings Corporate Events

Spok Holdings Reports Strong Q3 2025 Financial Results

On October 29, 2025, Spok Holdings announced its third-quarter results, highlighting a 14.4% increase in net income and a 0.8% rise in adjusted EBITDA compared to the previous year. The company declared a regular quarterly dividend of $0.3125 per share, payable on December 9, 2025. Spok’s software operations secured 59 significant customer contracts, maintaining consistent levels with the prior year, and the software backlog reached $60.9 million. The company also reported a 3.0% year-over-year increase in wireless average revenue per unit and improved wireless net churn. Spok returned $6.4 million to stockholders in the third quarter and invested $9.1 million in research and development, supporting its product platform. With a cash balance of $21.4 million and no debt as of September 30, 2025, Spok reaffirmed its 2025 financial guidance, emphasizing continued growth in key performance areas.