Summary
Spok Holdings reported second quarter 2026 revenue of $35.01 million, down 1.9% from the prior-year quarter. The top line kept reflecting a mix shift rather than broad growth. Net income was $4.12 million, down 9.5%, and diluted EPS was $0.20, down 9.1%. Operating income was $5.42 million, up 0.6%, and operating margin was 15.5%, up 0.4 percentage points from the prior-year quarter. The quarter absorbed costs tied to the April 2026 strategic realignment. Management said that realignment removed about 10% of the workforce and is expected to save more than $6.0 million a year in payroll and related expenses and other operating expenses.
Year-to-date results show more pressure. Revenue for the six months ended June 30, 2026 was $68.24 million, down 5.2% from the prior-year period. Net income was $6.11 million, down 37.4%, and diluted EPS was $0.29, down 38.3%. Operating income fell 31.0% to $7.87 million, and operating margin was 11.5%, down 4.3 percentage points. Severance costs from the realignment and softer project work both weighed on the first half.
Cash generation slipped as well. Operating cash flow was $6.48 million in the second quarter, down 7.9% from the prior-year quarter, and $8.92 million for the first half, down 4.0%. Capital expenditures were $0.61 million in the quarter, down 41.9%, and $1.21 million year to date, down 32.3%. Deferred revenue was $30.84 million, up 4.7% from the prior-year quarter. Remaining performance obligations were $57.10 million, down 12.4% from the prior-year quarter, and the backlog figure excludes $17.0 million of contractual obligations that customers can cancel without significant penalty at June 30, 2026. Management said cash flows from operations and existing cash remain the primary sources of liquidity.
On the operating side, adjusted EBITDA was $9.1 million in the second quarter, up 22.1% from the prior-year period. Software operations bookings totaled $9.5 million, up nearly 92% from the first quarter, and included 14 six-figure customer contracts and 1 seven-figure customer contract. Wireless average revenue per unit held consistent with the prior-year period, while wireless units in service fell from 694 thousand at June 30, 2025 to 645 thousand at June 30, 2026. Headcount and the transmitter count also came down as the realignment progressed. Spok signed an agreement to sell certain narrowband spectrum licenses from its two-way paging inventory for $8 million in cash, a deal that closed on July 20, 2026. Management said the company is applying artificial intelligence to speed product development and cut time to market for new Care Connect Suite capabilities.
Guidance covers the full year 2026. Management lowered its full-year total revenue forecast and kept the midpoint of its adjusted EBITDA outlook at $30 million, with a range of $28.0 million to $32.0 million. The revision reflects the expected full-year impact of the strategic realignment, first half software operations bookings and the product sales pipeline. The Board declared a regular quarterly dividend of $0.3125 per share, payable on September 9, 2026, to stockholders of record on August 19, 2026. Management said the dividend currently represents a yield in excess of 10%.
The risk picture is familiar. Wireless revenue keeps shrinking as customers move away from narrowband paging toward other technologies, and software revenue swings with project timing, churn and implementation schedules. The realignment has to deliver its savings without disrupting sales or customer support. The narrowband license sale adds one-time cash, but it does not fix the declining wireless base. Spok carries no debt, according to the press release, and management continues to prioritize cash flow and returns to stockholders. The safe harbor language also points to competition from larger firms, cyberattacks and data breaches, reliance on third-party vendors, and regulatory risk in healthcare.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2026 | Q1 FY2026 | QoQ | Q2 FY2025 | YoY |
|---|---|---|---|---|---|
| Revenue | $35.0M | $33.2M | +5.4% | $35.7M | -1.9% |
| Gross profit | $28.2M | $25.5M | +10.5% | $28.4M | -0.6% |
| Gross margin | 80.5% | 76.7% | +3.7 pp | 79.5% | +1.0 pp |
| Research & development | $3.3M | $3.5M | -5.1% | $3.0M | +8.5% |
| Sales & marketing | $3.9M | $4.5M | -12.6% | $4.3M | -8.1% |
| General & administrative | $7.2M | $7.6M | -5.6% | $8.9M | -19.1% |
| Total operating expenses | $29.6M | $30.8M | -3.9% | $30.3M | -2.3% |
| Operating income (loss) | $5.4M | $2.4M | +122.0% | $5.4M | +0.6% |
| Operating margin | 15.5% | 7.4% | +8.1 pp | 15.1% | +0.4 pp |
| Net income (loss) | $4.1M | $2.0M | +107.3% | $4.6M | -9.5% |
| Net margin | 11.8% | 6.0% | +5.8 pp | 12.8% | -1.0 pp |
| Diluted EPS | $0.20 | $0.09 | +$0.11 | $0.22 | -$0.02 |
Risks
Wireless revenue declined 6.7% in the quarter and 6.0% year to date, driven by a drop in wireless units in service from 694 thousand as of June 30, 2025 to 645 thousand as of June 30, 2026. Management states it expects demand for wireless services to continue to decline for the foreseeable future as narrowband offerings are replaced by broadband technologies, and paging revenue fell 6.9% in the quarter.
Remaining performance obligations declined 12.4% to $57.1 million at June 30, 2026 versus $65.2 million a year earlier, while software revenue decreased 4.4% year to date. Management attributes pressure to lower billable headcount and lower utilization in professional services - projects, higher churn in maintenance and subscription, and a protracted fixed-bid sales cycle that can push revenue recognition timing.
The April 2026 strategic realignment eliminated approximately 10% of the workforce and is expected to produce annualized savings of over $6.0 million, but severance and restructuring expense increased $1.5 million in the quarter versus the prior year and $1.8 million year to date. The majority of reductions were completed in Q2 2026 with the remainder expected in Q3 2026, leaving execution and savings-realization risk.
Maintenance and subscription revenue decreased 2.0% in the quarter and 2.5% year to date, with management citing higher churn. Professional services - projects revenue fell 27.7% in the quarter and 26.6% year to date on lower billable hours and reduced billable headcount.
Management notes that as the Company reaches certain minimum frequency commitments outlined by the Federal Communications Commission, it may be unable to continue rationalizing and consolidating its paging network and transmitter leases, and that the benefits of network rationalization efforts and resulting cost savings will continue to decline.
Cash and cash equivalents of $16.6 million as of June 30, 2026 are largely held at major U.S. and multi-national financial institutions with the majority of deposits exceeding insured limits, and management states there can be no assurance the Company could access uninsured funds in a timely manner or at all.
Net cash used in financing activities was $16.4 million for the six months ended June 30, 2026, and on July 29, 2026 the Board declared a quarterly dividend of $0.3125 per share, approximately $6.5 million, payable from cash on hand. Management states that if operating cash flow and cash on hand are insufficient it may need to reduce capital expenses, reduce or eliminate the dividend, halt share repurchases, sell assets or seek financing, with no assurance such steps would suffice or that financing would be available on acceptable terms.
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 FY2026 (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.