Financial Data and Key Metrics Changes - In Q3 2025, GAAP net income was $3.2 million or $0.15 per diluted share, down from $3.7 million or $0.18 per diluted share in Q3 2024 [17] - Total GAAP revenue in Q3 2025 was $33.9 million, a decrease from $34.9 million in the prior year [17] - Adjusted EBITDA for Q3 2025 totaled $6.6 million, compared to $7.5 million in the prior year [21] Business Line Data and Key Metrics Changes - Wireless revenue in Q3 2025 was $17.8 million, down from $18.3 million in Q3 2024, while software revenue was $16.1 million, slightly down from $16.6 million [17] - Professional services revenue increased to $5.5 million in Q3 2025, up nearly 13% year-over-year [20] - Managed services revenue experienced triple-digit growth year-over-year, contributing to the overall performance in professional services [20] Market Data and Key Metrics Changes - The company reported a 20 basis point sequential improvement in quarterly net unit churn, which decreased to 1.4% from 1.6% in the prior quarter [18] - Wireless average revenue per unit (RPU) increased by $0.24 or 3% from the prior year, driven by pricing actions and sales of the Gen A pager [18] Company Strategy and Development Direction - The company aims to generate cash and return capital to stockholders while investing in and growing its business [5] - The strategic focus includes continued investment in wireless and software solutions, disciplined expense management, and a stockholder-friendly capital allocation plan [9] - The company maintains a strong product platform, including Spok Console, Spok Messenger, and Spok Mobile, which are expected to drive future growth [14][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's performance despite seasonal headwinds and reaffirmed guidance for the year [3][22] - The company anticipates a strong fourth quarter, supported by a robust sales pipeline and large deals in progress [28][29] - Management highlighted the importance of recurring revenue from wireless services and the integration of paging with software operations [23] Other Important Information - The company has returned over $720 million to stockholders over the last 20 years, with nearly $100 million returned since the strategic pivot in early 2022 [8] - The company ended Q3 2025 with $21.4 million in cash and cash equivalents, with expectations for continued growth in cash balances [21] Q&A Session Summary Question: What drove the 55% year-over-year decline in license revenue? - Management indicated that license revenue is lumpy and directly related to sales, with variability expected from quarter to quarter [26][27] Question: What led to the weaker third quarter and how should the fourth quarter be viewed? - Management noted that while Q3 bookings were impacted, they remain bullish on the fourth quarter due to a strong pipeline and large deals [28][29] Question: Anticipated increase in R&D for 2026? - Management confirmed R&D investment will increase to over $13 million in 2026, focusing on enhancing the Spok Care Connect suite [30]

Core Insights - Spok Holdings reported quarterly earnings of $0.15 per share, missing the Zacks Consensus Estimate of $0.19 per share, and down from $0.18 per share a year ago, representing an earnings surprise of -21.05% [1] - The company posted revenues of $33.87 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 5.66%, and down from $34.87 million year-over-year [2] - Spok shares have increased by approximately 2.2% since the beginning of the year, while the S&P 500 has gained 17.2% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.20 on revenues of $34.4 million, and for the current fiscal year, it is $0.86 on revenues of $142.3 million [7] - The estimate revisions trend for Spok was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Wireless National industry, to which Spok belongs, is currently in the bottom 28% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

10/29/2025 Fourth Quarter Earnings| 02.23.23 Safe Harbor Statement Third Quarter Earnings| Statements contained herein or in prior press releases which are not historical fact, such as statements regarding our future operating and financial performance, are forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties that may cause our actual results to be materially differen ...

Financial Performance - Year-to-date net income increased by 14.4% to $12.951 million compared to the prior year period[2] - Total revenue for the third quarter was $33.867 million, down 2.9% from $34.870 million in the prior year[8] - Operating income for Q3 2025 was $4.359 million, representing 12.9% of total revenue, compared to $4.961 million or 14.2% in Q3 2024[26] - Net income for the nine months ended September 30, 2025, was $12.951 million, an increase of 14.4% from $11.321 million in the same period of 2024[31] - Net income for the three months ended September 30, 2025, was $3,203,000, a decrease from $3,660,000 in the same period last year[37] Revenue Breakdown - Wireless average revenue per unit (ARPU) rose to $8.19, up 3.0% year-over-year[2] - Wireless revenue decreased to $17.794 million in Q3 2025 from $18.261 million in Q3 2024, while software revenue decreased to $16.073 million from $16.609 million[26] - Average Revenue Per User (ARPU) for accounts with 1 to 100 units was $12.92, an increase from $12.88 in the previous quarter[33] - Average Revenue Per User (ARPU) for accounts with 101 to 1,000 units was $9.83, up from $9.72 in the previous quarter[33] - Average Revenue Per User (ARPU) for accounts with more than 1,000 units was $7.51, a slight decrease from $7.54 in the previous quarter[33] Expenses and Costs - Adjusted EBITDA for the third quarter was $6.610 million, a decrease of 12.3% from the previous year[8] - Total operating expenses for Q3 2025 were $29.508 million, accounting for 87.1% of total revenue, compared to 85.8% in Q3 2024[26] - Operating expenses for the nine months ended September 30, 2025, totaled $90,078,000, compared to $89,434,000 in the same period last year[35] - Adjusted operating expenses for the three months ended September 30, 2025, were $28,479,000, compared to $28,509,000 in the same period last year[35] Cash and Assets - The company has maintained a cash and cash equivalents balance of $21.4 million with no debt as of September 30, 2025[2] - Cash and cash equivalents decreased to $21.379 million from $29.145 million at the end of 2024[29] - Total assets decreased to $209.653 million as of September 30, 2025, from $217.103 million at the end of 2024[29] Shareholder Returns - Capital returned to stockholders in Q3 2025 was $6.4 million, a 1.7% increase from the previous year[8] - Cash dividends declared per common share remained stable at $0.3125 for both Q3 2025 and Q3 2024[26] Guidance and Future Outlook - The company expects full year 2025 total revenue guidance to be between $138.0 million and $143.5 million[11] Customer Metrics - Total account size ending units in service reached 684,000, a decrease of 1.4% from 694,000 in the previous quarter[33] - Healthcare segment accounted for 84.1% of total ending units in service, slightly down from 85.7% in the previous quarter[33] - Total account size ending units in service for the previous year was 765,000, indicating a year-over-year decline in total units[33]

Core Viewpoint - Spok Holdings, Inc. will release its third quarter 2025 operating results on October 29, 2025, after U.S. financial markets close [1] Financial Results Announcement - The financial results will be discussed in a conference call and webcast on the same day at 5:00 p.m. ET [1] - The presentation will be open to all interested parties and may include forward-looking information [1]

Core Viewpoint - Spok Holdings, Inc. will release its third quarter 2025 operating results on October 29, 2025, after U.S. financial markets close [1] Financial Results Announcement - The financial results will be discussed in a conference call and webcast on the same day at 5:00 p.m. ET [1] - The presentation will be open to all interested parties and may include forward-looking information [1]

Core Insights - Spok, Inc. is recognized for its secure healthcare communication solutions, with nine out of ten children's hospitals on the 2025-2026 U.S. News & World Report Best Children's Hospitals Honor Roll relying on its services [1] Company Overview - Spok, Inc. is a wholly owned subsidiary of Spok Holdings, Inc. and is a global leader in healthcare communications [1] - The company has been providing industry-leading secure healthcare communication solutions for over a decade [1] Industry Impact - The reliance of top children's hospitals on Spok's solutions highlights the company's significant role in supporting care collaboration and enhancing patient experiences in the healthcare sector [1]

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps investors identify stocks with momentum by focusing on key metrics [2] Group 2: Spok Holdings (SPOK) Analysis - Spok Holdings currently holds a Momentum Style Score of B and a Zacks Rank of 2 (Buy), indicating potential for outperformance [3][4] - Over the past week, SPOK shares increased by 5.95%, while the Zacks Wireless National industry declined by 0.53% [6] - In the last quarter, SPOK shares rose by 14.34%, and over the past year, they gained 30.75%, outperforming the S&P 500's increases of 11.71% and 19.86% respectively [7] - The average 20-day trading volume for SPOK is 116,850 shares, which serves as a bullish indicator when combined with rising stock prices [8] Group 3: Earnings Outlook - In the past two months, one earnings estimate for SPOK increased, raising the consensus estimate from $0.82 to $0.86 [10] - For the next fiscal year, one estimate has also moved upwards, with no downward revisions during the same period [10] Group 4: Conclusion - Considering the positive momentum indicators and earnings outlook, SPOK is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a potential candidate for near-term investment [12]

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying the right ones involves significant risk and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score aids in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - Spok Holdings (SPOK) is currently recommended due to its favorable Growth Score and top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is crucial for attracting investor attention, with double-digit growth being particularly favorable [3] - Spok's historical EPS growth rate is 363%, with a projected EPS growth of 17.8% this year, surpassing the industry average of 16.6% [4] Group 3: Asset Utilization - The asset utilization ratio, or sales-to-total-assets (S/TA) ratio, is an important metric for growth stocks, indicating efficiency in generating sales [5] - Spok's S/TA ratio is 0.66, significantly higher than the industry average of 0.35, indicating better asset utilization [5] Group 4: Sales Growth - Sales growth is another critical factor, with Spok expected to achieve a sales growth of 3.4% this year, compared to the industry average of 0% [6] Group 5: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with stock price movements [7] - The current-year earnings estimates for Spok have increased by 4.9% over the past month, indicating positive momentum [8] Group 6: Overall Positioning - Spok has earned a Growth Score of B and a Zacks Rank 2 due to positive earnings estimate revisions, positioning it well for potential outperformance [10]

Core Viewpoint - Spok Holdings (SPOK) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Rising earnings estimates for Spok suggest an improvement in the company's underlying business, likely leading to increased stock prices [5][10]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [7][9]. - Spok's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [10]. Earnings Estimate Revisions for Spok - For the fiscal year ending December 2025, Spok is expected to earn $0.86 per share, with no year-over-year change anticipated [8]. - Over the past three months, the Zacks Consensus Estimate for Spok has increased by 4.9%, reflecting analysts' positive revisions [8].