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Spok Holdings
(NASDAQ:SPOK)
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Rating:74Outperform
Price Target:
$12.50
▲(18.04% Upside)
Action:Reiterated
Date:08/04/26
SPOK scores well primarily due to strong financial stability (low leverage) and dependable recent cash generation, reinforced by an earnings call that maintained EBITDA guidance and highlighted cost discipline and improving software momentum. The score is held back by weak revenue trajectory/visibility and only moderate technical strength (below the 200-day average), despite supportive income valuation from the very high dividend yield.
Positive Factors
Conservative balance sheet
Extremely low leverage and a sizable equity base provide durable financial flexibility: supports continued dividend payouts, opportunistic asset monetization, and resilience during cyclical pressure. Maintains optionality for buybacks, M&A or investments without stressing cash flows.
Negative Factors
Weak and declining revenue
A pronounced TTM revenue decline and multi-year stagnation raise durability concerns: cost cuts can preserve margins temporarily but long-term profitability and dividend coverage depend on stabilizing top-line growth or materially accelerating software adoption.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Extremely low leverage and a sizable equity base provide durable financial flexibility: supports continued dividend payouts, opportunistic asset monetization, and resilience during cyclical pressure. Maintains optionality for buybacks, M&A or investments without stressing cash flows.
Read all positive factors
Spok Holdings (SPOK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$228.01M
Dividend Yield11.47%
Average Volume (3M)167.77K
Price to Earnings (P/E)18.3
Beta (1Y)0.56
Revenue Growth-3.39%
EPS Growth-29.34%
CountryUS
Employees415
SectorHealthcare
Sector Strength45
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)0.60
Shares Outstanding20,918,137
10 Day Avg. Volume140,124
30 Day Avg. Volume167,774
Financial Highlights & Ratios
PEG Ratio4.23
Price to Book (P/B)1.86
Price to Sales (P/S)1.95
P/FCF Ratio10.79
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.66
Revenue Forecast (FY)$139.30M
Spok Holdings Business Overview & Revenue Model
Company Description
Spok Holdings, Inc., operating primarily through its subsidiary, Spok, Inc., specializes in providing advanced communication solutions tailored for the healthcare sector. These crucial services span a wide international footprint, covering the Uni...
How the Company Makes Money
Spok makes money primarily from two lines of business: (1) healthcare software and (2) wireless (paging) services. In its software business, Spok generates revenue by licensing its clinical communication and messaging products to healthcare provid...
Spok Holdings Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call balanced clear operational and financial progress (notably a 92% sequential bookings increase, record adjusted EBITDA, expense reductions, strong managed services growth, significant license revenue growth, and an $8M spectrum sale) against near‑term demand and booking dynamics (longer sales cycles, preference for shorter contract terms, slight revenue midpoint reduction, and modest wireless unit declines). Management retained the adjusted EBITDA midpoint and emphasized capital returns and continued investment in product development, signaling confidence in the company’s ability to offset revenue pressure with margin and cash generation initiatives. Overall, the tone was constructive with caution about near‑term revenue visibility.Positive Updates
Large Sequential Increase in Software Bookings
Delivered a nearly 92% sequential increase in software operations bookings in Q2, driven by several large enterprise deals (including 14 six-figure and 1 seven-figure new customer contracts).
Negative Updates
Slight GAAP Net Income Decline and One-Time Costs
GAAP net income for Q2 was $4.1M ($0.20 per diluted share) vs $4.6M ($0.22) prior year; Q2 included $1.5M of severance and restructuring expense related to the strategic realignment.
Read all updates
Q2-2026 Updates
Positive
Negative
Large Sequential Increase in Software Bookings
Delivered a nearly 92% sequential increase in software operations bookings in Q2, driven by several large enterprise deals (including 14 six-figure and 1 seven-figure new customer contracts).
Read all positive updates
Company Guidance
Management revised 2026 guidance to total revenue of $132.5M–$139.5M (midpoint $136M) and adjusted EBITDA of $28M–$32M (midpoint $30M), with wireless revenue now expected at $67M–$70M and software revenue $65.5M–$69.5M; the revenue midpoint was trimmed due to lumpiness in bookings and a pipeline where deals are taking longer and skewing to shorter/cancelable terms despite a 92% sequential jump in software operations bookings in Q2. Management said strategic realignment and cost reductions should offset revenue pressure, ARPU was stable at $8.20, Q2 license revenue was $3.6M (vs. $2.4M a year ago) and managed professional services totaled $2.3M (up 53% YoY), and they now expect to exit 2026 with $26M–$29M in cash (Q2 cash $16.6M) including a >$7M Q3 cash contribution from the $8M spectrum sale.Spok Holdings Financial Statement Overview
Summary
Income Statement
70
Positive
Balance Sheet
86
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 135.97M | 139.71M | 137.65M | 139.03M | 134.53M | 142.15M |
| Gross Profit | 119.83M | 110.14M | 109.22M | 81.87M | 75.28M | 69.89M |
| EBITDA | 23.03M | 24.87M | 24.22M | 26.82M | 4.57M | -16.89M |
| Net Income | 12.24M | 15.88M | 14.96M | 15.67M | 21.86M | -22.18M |
Balance Sheet | ||||||
| Total Assets | 195.61M | 206.11M | 217.10M | 227.68M | 244.48M | 248.15M |
| Cash, Cash Equivalents and Short-Term Investments | 16.59M | 25.28M | 29.14M | 31.99M | 35.75M | 59.58M |
| Total Debt | 5.75M | 6.94M | 8.77M | 11.09M | 15.70M | 17.29M |
| Total Liabilities | 55.74M | 59.73M | 62.36M | 63.91M | 72.40M | 74.46M |
| Stockholders Equity | 139.87M | 146.38M | 154.75M | 163.77M | 172.08M | 173.69M |
Cash Flow | ||||||
| Free Cash Flow | 25.41M | 25.20M | 25.71M | 22.77M | 2.68M | -7.27M |
| Operating Cash Flow | 28.58M | 28.95M | 28.92M | 26.18M | 6.46M | 7.97M |
| Investing Cash Flow | -3.17M | -3.05M | -3.21M | -3.42M | 11.26M | -225.00K |
| Financing Cash Flow | -29.05M | -29.79M | -28.54M | -26.68M | -26.22M | -11.75M |
Spok Holdings Technical Analysis
Positive
10.59
Price Trends
10.65
Positive
10.88
Positive
11.97
Negative
Market Momentum
0.12
Negative
64.75
Neutral
86.46
Negative
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 10.59 is below the 20-day moving average (MA) of 10.69, below the 50-day MA of 10.65, and below the 200-day MA of 11.97, indicating a neutral trend. The MACD of 0.12 indicates Negative momentum. The RSI at 64.75 is Neutral, neither overbought nor oversold. The STOCH value of 86.46 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SPOK.
Spok Holdings Risk Analysis
Spok Holdings disclosed 25 risk factors in its most recent earnings report. Spok Holdings reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Spok Holdings Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $228.01M | 18.30 | 8.50% | 11.80% | -3.39% | -29.34% | |
70 Outperform | $113.53M | 16.51 | 5.47% | ― | 13.75% | ― | |
68 Neutral | $103.68M | 30.65 | 16.87% | ― | 10.34% | ― | |
52 Neutral | $154.44M | -0.56 | -99.78% | ― | -2.83% | -223.32% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $439.69M | 74.32 | 48.46% | 2.85% | -0.23% | -67.26% |
* Healthcare Sector Average
SPOK
Spok Holdings
11.21
-5.95
-34.66%
OPRX
OptimizeRx
6.85
-5.68
-45.33%
CCLD
CareCloud
2.60
0.22
9.24%
NRC
National Research
19.59
6.24
46.80%
HCAT
Health Catalyst
2.28
-1.54
-40.31%
Spok Holdings Corporate Events
Business Operations and StrategyFinancial Disclosures
Spok Highlights Cash Returns and Growth-Focused Strategy
Positive
Aug 3, 2026
On August 3, 2026, Spok Holdings, Inc. published an investor presentation outlining its financial strength and strategic focus on cash generation and capital returns. The company highlighted a history of more than $740 million returned to sharehol...
Business Operations and StrategyDividendsFinancial Disclosures
Spok Holdings Reports Strong Q2 Results and Outlook
Positive
Jul 29, 2026
On July 29, 2026, Spok reported second-quarter 2026 net income of $4.1 million and adjusted EBITDA of $9.1 million, a 22.1% increase year over year, alongside a regular quarterly dividend of $0.3125 per share payable on September 9, 2026. Software...
Executive/Board ChangesShareholder Meetings
Spok Holdings Shareholders Approve Governance and Incentive Plans
Positive
Jul 22, 2026
On July 21, 2026, Spok Holdings, Inc. held its 2026 Annual Meeting of Stockholders, with 15,452,535 of 20,905,932 eligible shares represented by proxy. Shareholders voted to elect six directors to serve until the next annual meeting, maintaining t...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.