Spok (NASDAQ:SPOK) reported second-quarter 2026 results marked by higher software bookings, record adjusted EBITDA and continued capital returns to stockholders, while management modestly lowered its full-year revenue outlook amid longer customer sales cycles and demand for shorter contract terms.
Chief Executive Officer Vince Kelly said the company’s software operations bookings increased nearly 92% sequentially during the quarter, aided by several large contracts. Spok also reported software revenue growth of more than 3% year over year, while wireless average revenue per unit remained consistent with the prior-year period.
Large Healthcare Contracts Support Bookings
Spok said it executed 14 six-figure new customer contracts and one seven-figure contract during the second quarter. Kelly highlighted an agreement with a Midwest-based healthcare customer that handles more than 20 million patient encounters annually across more than 2,200 care sites.
The agreement expands the customer’s existing software, managed services, premium maintenance and support relationship with Spok to 85 additional locations. The health system is using the company’s Care Connect platform, including operator console, alerting and alarm-routing offerings.
Spok also expanded its relationship with an academic health system that has been a longstanding user of Spok Smart Suite. The customer is adding Spok Messenger, Spok Mobile, SMS services, Epic chat integration, email capabilities and the Ascom Gateway, among other upgrades and services.
During the question-and-answer session, Kelly said the company’s broad enterprise offering and long history in healthcare communications help it compete for large integrated delivery network customers. He said Spok’s products are often deeply embedded in hospital workflows and integrate with electronic health records, private branch exchanges and on-call schedules.
“We get in their hospitals, we get ingrained into their workflows, and we’re hard to rip out,” Kelly said.
Profitability and Expense Actions
GAAP net income for the second quarter totaled $4.1 million, or $0.20 per diluted share, compared with $4.6 million, or $0.22 per diluted share, a year earlier. Chief Operating Officer and Chief Financial Officer Michael Wallace said that after adjusting for certain one-time items, second-quarter net income would have been $5.3 million, or $0.25 per diluted share, compared with adjusted prior-year net income of $4 million, or $0.19 per share.
The current-quarter adjustments included $1.5 million of severance and restructuring costs related to the strategic realignment announced in April. The prior-year quarter included an approximately $700,000 gain from the sale of a domain name.
Second-quarter adjusted operating expenses were $27.1 million, down nearly 8% from $29.4 million in the prior-year quarter. Wallace cited lower cost of revenue, selling and marketing expenses, and general and administrative costs. General and administrative expenses declined nearly 14% year over year, which he attributed to the strategic realignment.
At the same time, Spok continued to invest in its product platform. Kelly said the company spent more than $6.7 million on research and development during the first half of 2026, nearly 10% more than in the comparable 2025 period. The company is also implementing artificial intelligence initiatives intended to improve operational efficiency and accelerate product-development timelines.
- Software license revenue rose to $3.6 million from $2.4 million a year earlier.
- Managed professional services revenue increased 53% year over year to $2.3 million.
- Wireless ARPU was $8.20, consistent with prior-year levels.
- Wireless units in service declined less than 2% year over year, an improvement of 80 basis points from the prior quarter.
Spectrum Sale Adds Cash
Spok closed the sale of certain narrowband spectrum licenses from its two-way paging inventory to Sensus USA on July 20. The transaction, which received Federal Communications Commission approval, carries an $8 million cash purchase price.
The majority of the proceeds were paid at closing, with a smaller portion to be paid as Spok clears users from the sold spectrum and transfers them to other frequencies. The company has 180 days after closing to complete that process and expects to finish it during the current quarter.
Kelly said the spectrum being sold has no cost basis on Spok’s balance sheet, meaning the amount received, less transaction costs, will result in a gain. He added that the company expects no federal tax to be due on the gain because of available deferred tax assets.
Wallace said the spectrum transaction is expected to contribute more than $7 million to third-quarter cash after transaction expenses and associated income taxes.
Guidance Reflects Cautious Sales Environment
Spok lowered the midpoint of its 2026 revenue guidance, citing first-quarter software bookings, the variability of software sales and market conditions affecting hospital customers. Wallace said customers are taking longer to evaluate purchases and increasingly favoring shorter-term agreements rather than multiyear commitments.
He said hospital budget constraints and uncertainty around Medicare and Medicaid reimbursement were contributing to those dynamics. Wallace also noted that Spok’s cancelable backlog increased year over year as customers sought more flexibility in contracts, though grossed up for those contracts, backlog remained roughly flat from the prior year.
The company now expects 2026 total revenue of $132.5 million to $139.5 million, with a midpoint of $136 million. Wireless revenue is projected at $67 million to $70 million, while software revenue is expected to range from $65.5 million to $69.5 million.
Spok maintained its adjusted EBITDA outlook of $28 million to $32 million, with a $30 million midpoint. Wallace said the projected benefits of the strategic realignment are expected to offset the impact of the reduced revenue outlook.
Cash and cash equivalents stood at $16.6 million at the end of the second quarter. Spok expects to exit 2026 with $26 million to $29 million in cash and cash equivalents, supported by lower second-half working-capital needs, ongoing free cash flow and spectrum-sale proceeds.
Kelly said Spok returned $6.5 million through dividends during the second quarter and expects to pay more than $27 million in dividends in 2026. Since its strategic pivot began in 2022, the company has returned about $118.7 million to stockholders through regular quarterly dividends, he said.
About Spok (NASDAQ:SPOK)
Spok, Inc is a publicly traded healthcare communications and collaboration company headquartered in Bellevue, Washington. The company specializes in providing secure, real-time clinical communication solutions designed to streamline workflows and enhance patient care. Serving hospitals, health systems, and other healthcare organizations across North America and selected international markets, Spok has positioned itself as a leading provider of secure messaging and nurse call integration.
Spok’s flagship offering, the Spok Care Connect platform, delivers a suite of integrated products, including secure text and voice messaging, alarm and event management, call center solutions, and digital signage.
