Spok Holdings (SPOK)
NASDAQ:SPOK
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Spok Holdings
(NASDAQ:SPOK)
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Rating:70Outperform
Price Target:
$12.00
▼(-9.77% Downside)
Action:ReiteratedDate:04/01/26
The score is supported by strong profitability and free-cash-flow generation alongside a very low-debt balance sheet, plus an attractive income profile from the high dividend yield. These positives are tempered by weak technicals (downtrend/negative momentum) and business growth headwinds highlighted on the earnings call, including flat revenue guidance and legacy wireless decline with some backlog/visibility risk.
Positive Factors
High profitability and margins
Sustained high gross and net margins indicate structural pricing power and efficient cost base, often tied to software mix. This margin profile supports durable earnings, funds R&D and dividends, and provides a buffer against revenue softness over the next 2–6 months.
Negative Factors
Flat top-line growth
Revenue guidance implying flat year-over-year growth signals limited market expansion and constrained organic upside. Persistently stagnant top line restricts the firm's ability to scale operating leverage, reinvest in growth initiatives, and materially expand earnings over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability and margins
Sustained high gross and net margins indicate structural pricing power and efficient cost base, often tied to software mix. This margin profile supports durable earnings, funds R&D and dividends, and provides a buffer against revenue softness over the next 2–6 months.
Read all positive factors
Spok Holdings (SPOK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$230.31M
Dividend Yield9.67%
Average Volume (3M)170.57K
Price to Earnings (P/E)17.1
Beta (1Y)0.64
Revenue Growth1.47%
EPS Growth11.33%
CountryUS
Employees418
SectorHealthcare
Sector Strength45
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)0.14
Shares Outstanding20,730,352
10 Day Avg. Volume162,298
30 Day Avg. Volume170,566
Financial Highlights & Ratios
PEG Ratio4.22
Price to Book (P/B)1.86
Price to Sales (P/S)1.95
P/FCF Ratio10.79
Enterprise Value/Market Cap0.92
Enterprise Value/Revenue1.52
Enterprise Value/Gross Profit1.92
Enterprise Value/Ebitda8.24
Forecast
1Y Price Target
$14.00Price Target Upside5.26% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.83
Revenue Forecast (FY)$144.20M
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 matte...
How the Company Makes Money
Spok generates revenue primarily by selling and supporting its healthcare communications software and related services. Key revenue streams include (1) software revenue from its clinical communication and messaging offerings, which may be delivere...
Spok Holdings Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
Overall the call conveyed cautious optimism. Spok demonstrated regained momentum in Q4 with notable software bookings growth, larger multi-year deals, double-digit growth in professional services and expanding managed services, while maintaining strong cash returns and a healthy adjusted EBITDA margin. Offsetting this, legacy wireless revenue continues a secular decline, certain software revenue categories (licenses, maintenance) were down, backlog declined and cancelable contract exposure increased. Management provided guidance that implies flat-to-modest revenue growth in 2026 but a higher mix of software and potential adjusted EBITDA improvement. On balance, the positive operational progress, cash generation and strategic positioning toward higher-margin software and managed services outweigh the manageable legacy-business headwinds and execution risks.Positive Updates
Strong cash returns and profitability
Returned $27.3 million of cash to stockholders in 2025; full-year GAAP net income of $15.9 million ($0.75 diluted EPS), up ~6.0% from $15.0 million in 2024; ended 2025 with $25.3 million in cash (up from $21.4 million at Q3).
Negative Updates
Ongoing wireless revenue decline
Wireless revenue declined to $72.5 million in 2025 from $73.5 million in 2024 (−1.4%), reflecting secular declines in pager units in service and continued pressure on the legacy wireless business.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong cash returns and profitability
Returned $27.3 million of cash to stockholders in 2025; full-year GAAP net income of $15.9 million ($0.75 diluted EPS), up ~6.0% from $15.0 million in 2024; ended 2025 with $25.3 million in cash (up from $21.4 million at Q3).
Read all positive updates
Company Guidance
Spok guided 2026 consolidated revenue of $136.0–$143.0 million (midpoint roughly flat to 2025’s $139.7M; the high end implies ~2.3% YoY growth), wireless revenue of $68.0–$71.0M and software revenue of $68.0–$72.0M (midpoint would mark the first time software exceeds wireless), adjusted EBITDA of $27.5–$32.5M (vs. $29.0M in 2025; high end is >12% growth), and dividends in excess of $27M; management also expects operations bookings to grow versus 2025 (after >$30M in bookings for the third consecutive year), to manage net unit churn to the mid-single-digit range in 2026, and to continue GenA pager adoption (72,000 units, ~11% of base), while exiting 2025 with $25.3M cash and a 2025 adjusted EBITDA margin near 21%.Spok Holdings Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
86
Very Positive
Cash Flow
78
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 139.71M | 137.65M | 139.03M | 134.53M | 142.15M |
| Gross Profit | 110.14M | 109.22M | 81.87M | 75.28M | 69.89M |
| EBITDA | 24.87M | 24.22M | 26.82M | 4.57M | -16.89M |
| Net Income | 15.88M | 14.96M | 15.67M | 21.86M | -22.18M |
Balance Sheet | |||||
| Total Assets | 206.11M | 217.10M | 227.68M | 244.48M | 248.15M |
| Cash, Cash Equivalents and Short-Term Investments | 25.28M | 29.14M | 31.99M | 35.75M | 59.58M |
| Total Debt | 6.94M | 8.77M | 11.09M | 15.70M | 17.29M |
| Total Liabilities | 59.73M | 62.36M | 63.91M | 72.40M | 74.46M |
| Stockholders Equity | 146.38M | 154.75M | 163.77M | 172.08M | 173.69M |
Cash Flow | |||||
| Free Cash Flow | 25.20M | 25.71M | 22.77M | 2.68M | -7.27M |
| Operating Cash Flow | 28.95M | 28.92M | 26.18M | 6.46M | 7.97M |
| Investing Cash Flow | -3.05M | -3.21M | -3.42M | 11.26M | -225.00K |
| Financing Cash Flow | -29.79M | -28.54M | -26.68M | -26.22M | -11.75M |
Spok Holdings Technical Analysis
Negative
13.30
Price Trends
12.11
Negative
12.45
Negative
14.23
Negative
Market Momentum
-0.25
Negative
39.68
Neutral
64.58
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPOK, the sentiment is Negative. The current price of 13.3 is above the 20-day moving average (MA) of 11.21, above the 50-day MA of 12.11, and below the 200-day MA of 14.23, indicating a bearish trend. The MACD of -0.25 indicates Negative momentum. The RSI at 39.68 is Neutral, neither overbought nor oversold. The STOCH value of 64.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $230.31M | 17.11 | 10.63% | 9.67% | 1.47% | 11.33% | |
69 Neutral | $114.73M | 95.53 | 18.98% | ― | 2.97% | ― | |
66 Neutral | $115.01M | 44.33 | 4.22% | ― | 24.19% | ― | |
55 Neutral | $268.02M | 73.44 | 3.23% | ― | 3.75% | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
46 Neutral | $374.86M | 36.22 | 58.50% | 2.52% | -3.50% | -37.46% | |
43 Neutral | $73.31M | -0.94 | -54.67% | ― | 4.64% | -17.17% |
* Healthcare Sector Average
SPOK
Spok Holdings
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HCAT
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Spok Holdings Corporate Events
Business Operations and StrategyFinancial Disclosures
Spok Holdings Highlights Strategy, Financial Strength in Presentation
Positive
Feb 26, 2026
On February 26, 2026, Spok Holdings, Inc. posted an investor presentation outlining its financial strength, strategic priorities and market positioning. The company reported 2025 revenue of $139.7 million, including $115.6 million in recurring rev...
Business Operations and StrategyDividendsFinancial Disclosures
Spok Holdings Posts 2025 Profit Growth, Declares Dividend
Positive
Feb 25, 2026
Spok Holdings, Inc., a global healthcare communications provider, reported on February 25, 2026 that its full‑year 2025 net income rose 6.1% from 2024, with software revenue growing nearly 5% year over year, driven by strong managed services...
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.