Spok Holdings (SPOK) AI Stock Analysis

• Market Cap: $284.46M
• Dividend Yield: 9.67%
• Average Volume (3M): 150.94K
• Price to Earnings (P/E): 17.3
• Beta (1Y): 0.63
• Revenue Growth: 1.47%
• EPS Growth: 11.33%
• Country: US
• Employees: 418
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.14
• Shares Outstanding: 20,598,170
• 10 Day Avg. Volume: 143,866
• 30 Day Avg. Volume: 150,939
• PEG Ratio: 4.22
• Price to Book (P/B): 1.86
• Price to Sales (P/S): 1.95
• P/FCF Ratio: 10.79
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 1.90
• Enterprise Value/Gross Profit: 2.41
• Enterprise Value/Ebitda: 17.66
• 1Y Price Target: $14.00
• Price Target Upside: 5.26% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.83
• Revenue Forecast (FY): $144.20M

• Rating: 73 Outperform
• Price Target: $13.50 ▲(1.50% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is driven primarily by strong financial quality (low leverage, improved profitability, and solid recent free cash flow). Corporate updates reinforce strength in bookings/backlog and continued shareholder returns. Offsetting these positives, technicals are weaker with the stock trading below major moving averages, and revenue growth remains limited.

Positive Factors

Low Leverage / Debt-Free

Very low leverage and effectively debt-free status materially reduce financial risk and interest burden. This durability preserves capital flexibility to fund product development, absorb demand shocks, sustain dividends and pursue opportunistic M&A without near-term refinancing pressure.

Consistent Free Cash Flow

Stable operating cash flow and strong free cash flow generation provide a reliable internal funding source for R&D, maintenance, and capital returns. High FCF conversion versus earnings supports sustainable dividends and strategic reinvestment, enhancing long-term solvency and flexibility.

Recurring Revenue & Backlog

A high share of recurring revenue, growing software bookings and a $58.2M backlog create predictable cash flows and reduce churn sensitivity. Combined with strong customer satisfaction rankings, this bolsters retention, upsell potential and durable competitive positioning in healthcare communications.

Negative Factors

Weak Revenue Growth

Top-line momentum is constrained, with revenue roughly flat and a small decline in 2025. Limited organic growth reduces scalability of fixed costs and constrains operating leverage, forcing reliance on margin improvements or capital returns to drive shareholder value over the medium term.

Historical Cash-Flow Volatility

Past swings in cash conversion and episodic negative FCF indicate sensitivity to contract timing and customer spend cycles. That volatility complicates multi-year planning, can delay investment cycles, and raises the risk that cash-funded returns may compete with necessary product or sales investment.

Balance-Sheet Shrinkage / Lower Equity

A declining equity base and shrinking asset footprint suggest limited reinvestment or strategic asset accumulation. Over time this can constrain organic expansion, reduce capacity for scale-driven growth, and limit options for sizable strategic initiatives without altering capital allocation.

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 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

Strong balance sheet and profitability: very low leverage (debt-to-equity ~0.05) and improved returns (ROE ~21% in 2025). Cash generation is solid with consistent recent operating cash flow (~$29M) and free cash flow (~$25–26M). The main constraint is limited growth, with revenue broadly flat and slightly down recently, plus some historical volatility in profitability/cash flow.

Income Statement

Profitability has materially improved versus the 2020–2021 loss period, with 2025 showing strong net profitability (about 22% net margin) and high gross margins (~79%). However, top-line momentum is weak: revenue has been roughly flat over the cycle and slightly down in recent years (2025 revenue down ~2% year over year after a small decline in 2024). Margins also show some volatility across years (notably weaker profitability in 2020–2021), which tempers the otherwise solid current earnings profile.

Balance Sheet

The balance sheet is conservatively levered, with low debt relative to equity (debt-to-equity ~0.05 in 2025, improving from ~0.10 in 2021). Equity remains sizable versus total assets, supporting financial flexibility. Returns on equity improved meaningfully in 2025 (~21%), but equity has drifted lower since 2020 and total assets have declined over time, suggesting some balance sheet shrinkage and potentially lower reinvestment/asset growth.

Cash Flow

Cash generation is solid and consistent recently: operating cash flow was ~29M in both 2024 and 2025, and free cash flow remained strong (~25–26M). Free cash flow also broadly tracks earnings well in recent years (free cash flow running at ~87–89% of net income in 2024–2025). The main caution is historical volatility—free cash flow was negative in 2021 and operating cash flow was notably weak in 2022—indicating cash conversion can swing depending on period conditions.

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	15.02M	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

• Technical Analysis Sentiment: Positive
• Last Price: 13.30
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 13.3 is below the 20-day moving average (MA) of 13.54, below the 50-day MA of 13.33, and below the 200-day MA of 15.23, indicating a neutral trend. The MACD of 0.11 indicates Negative momentum. The RSI at 57.76 is Neutral, neither overbought nor oversold. The STOCH value of 76.90 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	73 Outperform	$284.46M	17.26	10.88%	9.67%	1.47%	11.33%
OPRX	61 Neutral	$142.41M	-2,996.15	0.03%	―	24.19%	―
CCLD	58 Neutral	$101.33M	61.92	21.49%	―	2.97%	―
TBRG	57 Neutral	$294.48M	108.05	1.57%	―	3.75%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
HCAT	50 Neutral	$122.36M	-1.13	-31.33%	―	4.64%	-17.17%
NRC	46 Neutral	$282.99M	24.11	66.01%	2.52%	-3.50%	-37.46%

Spok Holdings Corporate Events

Spok Holdings Highlights Strategy, Financial Strength in Presentation

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 revenue, and highlighted its focus on maximizing long-term cash generation, maintaining a debt-free balance sheet and continuing substantial capital returns to shareholders.

The presentation underscored Spok’s strategy to stabilize and then grow revenue by expanding software bookings, advancing its product roadmap and reducing churn in its wireless business while increasing average revenue per unit. Spok also detailed how it is helping hospital customers navigate fiscal and IT budget pressures through multi-year managed maintenance agreements and a measured upgrade cadence, and it emphasized its continued top rankings in independent surveys for secure messaging and critical alert solutions, signaling strong customer satisfaction and competitive standing in healthcare communications.

The most recent analyst rating on (SPOK) stock is a Buy 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 Posts 2025 Profit Growth, Declares Dividend

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 growth and a 14% increase in fourth‑quarter software operations bookings versus the prior year, including multiple large customer contracts and a $58.2 million software backlog. The company highlighted improved wireless metrics, a cash balance of $25.3 million with no debt, adjusted EBITDA of $29 million for 2025, and the return of $27.3 million to shareholders, while its board declared a regular quarterly dividend of $0.3125 per share payable on March 31, 2026 to shareholders of record as of March 16, 2026, underscoring its strategy of balancing investment in product development with substantial capital returns.

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