Spok Holdings (SPOK) AI Stock Analysis

• Market Cap: $359.72M
• Dividend Yield: 7.16%
• Average Volume (3M): 140.50K
• Price to Earnings (P/E): 21.0
• Beta (1Y): 0.62
• Revenue Growth: 1.79%
• EPS Growth: 8.48%
• Country: US
• Employees: 418
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.22
• Shares Outstanding: 20,590,923
• 10 Day Avg. Volume: 105,585
• 30 Day Avg. Volume: 140,501
• 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: 0.99
• Enterprise Value/Revenue: 2.52
• Enterprise Value/Gross Profit: 3.16
• Enterprise Value/Ebitda: 13.31
• 1Y Price Target: $19.50
• Price Target Upside: 11.62% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: $19.50 ▲(11.62% Upside)

Spok Holdings' overall stock score is driven by its strong financial performance and positive earnings call, highlighting growth in software operations and improved financial guidance. The attractive dividend yield adds to its appeal. However, technical indicators suggest potential short-term weakness, and valuation metrics indicate the stock is fairly valued.

Positive Factors

Strong Recurring Revenue Base

A high percentage of recurring revenue ensures stable cash flow and reduces reliance on new sales, enhancing long-term financial predictability and resilience.

Growth in Software Operations

Significant growth in software bookings indicates strong demand and successful product offerings, supporting future revenue expansion and market position.

Low Leverage

Low leverage enhances financial flexibility and reduces risk, allowing the company to invest in growth opportunities and withstand economic downturns.

Negative Factors

Decline in Wireless Services Demand

A decline in wireless services demand poses a challenge to revenue diversification and may require strategic shifts to maintain overall growth.

Declining Total Assets

A decrease in total assets could indicate potential issues in asset management or investment, impacting long-term growth and operational capacity.

Limited New Customer Acquisition

Limited new customer acquisition suggests challenges in expanding market reach, which could constrain future revenue growth and market share.

Spok Holdings Business Overview & Revenue Model

Company Description

Spok Holdings, Inc., through its subsidiary, Spok, Inc., provides healthcare communication solutions in the United States, Europe, Canada, Australia, Asia, and the Middle East. It delivers clinical information to care teams when and where it matters to enhance patient outcomes. The company offers subscriptions to one-way or two-way messaging services; and ancillary services, such as voicemail, and equipment loss or maintenance protection services, as well as sells devices to resellers who lease or resell them to their subscribers. Its Spok Care Connect platform enhance workflows for clinicians and support administrative compliance. In addition, the company provides professional, software license updates, and product support services, as well as sells third-party equipment. It serves businesses, professionals, management personnel, medical personnel, field sales personnel and service forces, members of the construction industry and construction trades, real estate brokers and developers, sales and services organizations, specialty trade organizations, manufacturing organizations, and government agencies. The company was formerly known as USA Mobility, Inc. and changed its name to Spok Holdings, Inc. in July 2014. The company was founded in 1986 and is headquartered in Alexandria, Virginia.

How the Company Makes Money

Spok Holdings generates revenue primarily through the sale of its communication solutions and services to healthcare organizations. The company has a subscription-based revenue model, where clients pay for access to its software and services, which may include secure messaging platforms, alerting systems, and integration with existing healthcare technologies. Key revenue streams include recurring fees from existing clients, new client acquisitions, and maintenance and support services. Additionally, Spok benefits from partnerships with technology providers and healthcare systems, which can enhance its product offerings and expand its market reach. The focus on the healthcare sector, which requires robust and secure communication solutions, positions Spok to capitalize on ongoing trends in digital health and the increasing demand for efficient communication in clinical settings.

Spok Holdings Financial Statement Overview

Summary

Spok Holdings demonstrates a robust financial position with strong profitability and effective cash flow management. The low leverage and healthy margins support stability, although declining total assets and revenue fluctuations require monitoring.

Income Statement

Spok Holdings has shown a positive trend in revenue growth with a TTM revenue of $140.7M, up from the previous year. Gross profit margin remains strong at approximately 79.6%, and the net profit margin has improved to 16.2% TTM, a significant increase from previous periods. The EBIT and EBITDA margins also show healthy figures at 14.9% and 17.6% respectively. However, revenue in the past year (2024) slightly declined compared to 2023, indicating some variability in revenue streams.

Balance Sheet

The company's balance sheet reflects solid equity levels with a debt-to-equity ratio of 0.05, indicating low leverage. The equity ratio stands at 72.3%, suggesting a strong capital structure. Return on Equity (ROE) has improved to 15.1% TTM, showing effective management in generating profit from shareholders' equity. Despite the strengths, total assets have seen a decline over the last few years, which could be a point of concern.

Cash Flow

Spok Holdings exhibits strong cash flow management with a TTM operating cash flow of $28.8M and a free cash flow of $25.3M. The free cash flow to net income ratio is approximately 1.11, indicating efficient conversion of income to cash. Free cash flow growth shows consistency, though slightly lower than previous year's figures, which were exceptionally high. The operating cash flow to net income ratio at 1.26 reflects healthy cash operations relative to net earnings.

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	26.64M	24.18M	26.62M	11.14M	-629.00K	-12.71M
Net Income	17.05M	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: Neutral
• Last Price: 17.47
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 17.47 is below the 20-day moving average (MA) of 17.71, below the 50-day MA of 17.68, and above the 200-day MA of 16.12, indicating a neutral trend. The MACD of -0.09 indicates Positive momentum. The RSI at 46.04 is Neutral, neither overbought nor oversold. The STOCH value of 29.29 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	74 Outperform	$359.72M	21.00	11.03%	7.16%	1.79%	8.48%
TBRG	62 Neutral	312.69M	-24.68	-12.12%	―	3.42%	77.05%
NRC	58 Neutral	366.94M	21.03	84.06%	3.02%	-4.08%	-36.73%
CTEV	54 Neutral	919.79M	-1.36	1662.26%	―	-2.03%	43.59%
DH	52 Neutral	582.75M	-1.54	-74.11%	―	-5.24%	23.59%
HCAT	49 Neutral	197.75M	-1.86	-28.81%	―	5.55%	-0.99%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

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.