Summary
Spok Holdings reported second quarter 2025 results with total revenue of $35.7 million, up 5.0% from the prior-year quarter. Year-to-date revenue was $72.0 million, up 4.5%. Operating income was $5.4 million in the quarter, up 20.5%, and $11.4 million year to date, up 21.8%. Net income was $4.6 million, up 32.9%, and $9.7 million year to date, up 27.2%. Diluted EPS was $0.22, up 29.4%, and year-to-date diluted EPS was $0.47, up 27.0%. Operating margin was 15.1%, up 1.9 percentage points, and year-to-date operating margin was 15.9%, up 2.3 percentage points. Adjusted EBITDA, a non-GAAP measure, was $7.5 million, up 6.3%.
The quarter's operational story mixed stable wireless economics with stronger software bookings. Wireless units in service were 694 thousand at June 30, 2025, compared with 747 thousand a year earlier. Wireless ARPU was $8.20, up 4.6%. Active transmitters fell 5.7% to 2,925 as the company consolidated its network. Management said demand for wireless services will likely keep declining as customers move to other technologies, though price increases and higher ARPU have partly offset the unit decline. Software operations bookings totaled $11.7 million, up 34.1%, and included 23 six-figure customer contracts and 1 seven-figure customer contract. Software backlog, which the company reports as remaining performance obligations, was $65.2 million, up 18.5% from the prior year. The company said the bookings and backlog supported its software business, with particular strength in license and managed services.
Cash flow and balance sheet metrics were mixed. Operating cash flow was $7.0 million in the quarter, down 5.2%, and $9.3 million year to date, down 1.4%. Capital expenditures were $1.0 million in the quarter, up 63.2%, and $1.8 million year to date, up 18.1%. Deferred revenue was $29.5 million, up 14.4% from the prior-year quarter. The company declared a regular quarterly dividend of $0.3125 per share, payable September 9, 2025, to stockholders of record on August 19, 2025. Management said cash balances started to grow in the quarter and it expects them to continue growing through the remainder of the year, all else equal, and the company reported no debt.
Spok raised its full-year 2025 guidance for revenue and adjusted EBITDA. For the full year 2025, it now expects adjusted EBITDA of $28.5 million to $32.5 million, compared with prior full-year guidance of $27.5 million to $32.5 million. At the midpoint, the company said software revenue would grow 6.4% year over year, partially offset by slight declines in wireless revenue. It also said adjusted EBITDA at the midpoint would be up from last year, with growth potential at the high end of the range of more than 11%. The outlook depends on continued software bookings and backlog conversion. Risks include the continuing decline in wireless units and paging demand, the long sales cycle for software solutions, dependence on the United States healthcare industry, competition from larger firms, network rationalization limits tied to Federal Communications Commission commitments, and potential cybersecurity and data privacy issues. The company also said it may reduce capital expenses or dividends if operating cash flow and cash on hand are not sufficient to meet future cash requirements.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2025 | Q1 FY2025 | QoQ | Q2 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $35.7M | $36.3M | -1.7% | $34.0M | +5.0% |
| Gross profit | $28.4M | $29.1M | -2.5% | $26.8M | +5.7% |
| Gross margin | 79.5% | 80.1% | -0.7 pp | 78.9% | +0.5 pp |
| Research & development | $3.0M | $3.1M | -1.0% | $3.2M | -4.8% |
| Sales & marketing | $4.3M | $4.8M | -11.9% | $3.5M | +21.7% |
| General & administrative | $8.9M | $8.4M | +6.0% | $8.1M | +10.4% |
| Total operating expenses | $30.3M | $30.3M | +0.1% | $29.5M | +2.7% |
| Operating income (loss) | $5.4M | $6.0M | -10.4% | $4.5M | +20.5% |
| Operating margin | 15.1% | 16.6% | -1.5 pp | 13.2% | +1.9 pp |
| Net income (loss) | $4.6M | $5.2M | -12.4% | $3.4M | +32.9% |
| Net margin | 12.8% | 14.3% | -1.6 pp | 10.1% | +2.7 pp |
| Diluted EPS | $0.22 | $0.25 | -$0.03 | $0.17 | +$0.05 |
Risks
MD&A states demand for wireless services will continue to decline as paging and messaging are replaced by broadband technologies. Wireless units in service decreased from 747 thousand at June 30, 2024 to 694 thousand at June 30, 2025, and paging revenue decreased 2.5% for the quarter.
MD&A notes that as the company reaches minimum frequency commitments outlined by the FCC, it may be unable to continue rationalizing and consolidating its paging networks. Active transmitters declined 5.7% from June 30, 2024 to June 30, 2025, and limits on network consolidation could pressure future cost savings.
Software revenue grew 10.0% for the quarter, but MD&A warns that software projects often come from fixed-bid contracts with protracted sales cycles and unforeseen complexity or scope deviations. This can affect timing of revenue recognition and make software revenue fluctuate short term even as RPO increased 18.5% versus prior year.
Cash and cash equivalents were $20.2 million at June 30, 2025, with the majority of deposits exceeding insured limits, so a bank failure could delay access to uninsured funds. Operating cash flow decreased 5.2% for the quarter and 1.4% year to date, and MD&A says shortfalls could force reductions in capital expenses, dividends, share repurchases, asset sales, or outside financing.
SaaS KPIs
All quarters →Adjusted EBITDA
Software Backlog
Software Operations Bookings
Wireless Units in Service
Wireless Average Revenue Per Unit (ARPU)
Six-Figure Customer Contracts
Summary, forecast, risks and KPIs are extracted from Spok Holdings, Inc's SEC filings for Q2 FY2025 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 6, 2026.