Executive Summary

Solid quarter with modest top-line growth and stronger profitability: revenue rose 5% YoY to $35.686M; net income increased 33% YoY to $4.552M; adjusted EBITDA grew 6% YoY to $7.489M .
Against S&P Global consensus, Spok delivered a mixed print: revenue modestly beat ($35.686M vs $35.0M*), EPS beat ($0.22 vs $0.18*), while GAAP EBITDA trailed consensus ($6.246M vs $6.9M*). Adjusted EBITDA was $7.489M (non‑GAAP) .
Management raised full‑year 2025 guidance for wireless, software, total revenue, and adjusted EBITDA, citing stronger software bookings and backlog; dividend of $0.3125/share was maintained for payout on Sep 9, 2025 .
Key catalysts: sustained bookings momentum ($11.7M, +34% YoY), backlog strength ($65.2M, +19% YoY), ARPU expansion offsetting unit declines, and FY25 guidance raise—all supportive for sentiment and estimate revision trajectory .

What Went Well and What Went Wrong

What Went Well
- Strong software momentum: software revenue +10% YoY; bookings $11.7M (+34% YoY) with 23 six‑figure and one seven‑figure contracts; backlog $65.2M (+19% YoY) .
- Profitability resilience: adjusted EBITDA $7.489M (+6% YoY) covered dividend; net income up 33% YoY; cash ended at $20.242M with no debt .
- Pricing/ARPU traction: wireless ARPU rose to $8.20 (+4.6% YoY) as pricing and Gen A pager mix helped offset unit declines; sequential net unit churn improved by 50 bps to 1.6% (from 2.1%) per CFO .
What Went Wrong
- Sequential deceleration: revenue ($35.686M) and adjusted EBITDA ($7.489M) were below Q1 ($36.294M and $8.204M), reflecting normal quarterly lumpiness and higher selling/marketing vs a one-time commission deferral in Q2’24 .
- GAAP EBITDA missed consensus (S&P Global) despite non‑GAAP strength, and software maintenance/subscription was down YoY (‑2.6%), reflecting mix and timing .
- Units in service declined to 694k (‑7.1% YoY), underscoring secular pager contraction despite ARPU gains; management expects secular wireless volume pressure to continue .

Financial Results

Overall results (oldest → newest):

Metric	Q4 2024	Q1 2025	Q2 2025
Total Revenue ($M)	$33.892	$36.294	$35.686
Net Income ($M)	$3.644	$5.196	$4.552
Diluted EPS ($)	$0.18	$0.25	$0.22
EBITDA ($M, GAAP)	$5.576	$6.877	$6.246
Adjusted EBITDA ($M, non‑GAAP)	$7.055	$8.204	$7.489

Q2 2025 Actual vs S&P Global Consensus

Metric	Q2 2025 Actual	Q2 2025 Consensus	Surprise
Revenue ($M)	$35.686	$35.0*	+$0.686M / +2%
EPS ($)	$0.22	$0.18*	+$0.04
EBITDA ($M, GAAP)	$6.246	$6.9*	−$0.654M

Values with asterisk (*) are from S&P Global consensus; values retrieved from S&P Global.

Segment revenue breakdown (oldest → newest, $M):

Segment	Q4 2024	Q1 2025	Q2 2025
Wireless	$18.370	$18.474	$18.440
Software (Total)	$15.522	$17.820	$17.246
• License	$1.283	$2.631	$2.394
• Prof. Svcs – Projects	$3.503	$4.471	$3.831
• Prof. Svcs – Managed	$1.226	$1.315	$1.520
• Hardware	$0.269	$0.321	$0.376
• Maintenance & Subscription	$9.241	$9.082	$9.125

Key performance indicators (oldest → newest):

KPI	Q4 2024	Q1 2025	Q2 2025
Units in Service (000s)	720	705	694
Wireless ARPU ($)	8.16	8.24	8.20
Software Ops Bookings ($M)	7.124	8.337	11.661
Software Backlog ($M)	62.439	63.152	65.187
Cash & Equivalents ($M)	29.145	19.873	20.242
Capital Returned ($M)	6.336	7.947	6.477

Context and drivers

Sequential change: Q2 revenue and adjusted EBITDA declined vs Q1 due to normal seasonality and higher sales/marketing vs a one-time commission deferral in Q2’24; management also noted a one-time ~$0.7M other income gain from a legacy domain sale boosting Q2 other income (non‑operating) .
Mix: Professional services remain a growth engine, with managed services up sharply YoY; maintenance/subscription was modestly lower YoY (-2.6%) .
Wireless: ARPU growth and Gen A pagers continue to offset secular unit declines; sequential net unit churn improved to 1.6% from 2.1% in Q1 (50 bps improvement) .

Non‑GAAP notes

Adjusted EBITDA excludes taxes, interest, D&A, stock‑based comp, and severance/restructuring; reconciliation provided in the release .

Guidance Changes

Metric	Period	Previous Guidance (From–To)	Current Guidance (From–To)	Change
Wireless Revenue ($M)	FY2025	$69.0 – $72.0	$71.5 – $73.5	Raised
Software Revenue ($M)	FY2025	$65.0 – $70.0	$66.5 – $70.0	Raised (midpoint)
Total Revenue ($M)	FY2025	$134.0 – $142.0	$138.0 – $143.5	Raised
Adjusted EBITDA ($M)	FY2025	$27.5 – $32.5	$28.5 – $32.5	Raised (low end)
Dividend	Quarterly	$0.3125/share (ongoing)	$0.3125/share declared for Sep 9, 2025	Maintained

Management rationale: stronger first‑half execution, bookings/backlog, ARPU trends, and pipeline confidence; expect H2 R&D to step‑up 5–7% YoY and further 6–8% into 2026, including AI initiatives .

Earnings Call Themes & Trends

Topic	Q4 2024 (Q‑2)	Q1 2025 (Q‑1)	Q2 2025 (Current)	Trend
Bookings & Backlog	Bookings +73% YoY in Q4; backlog +22% YoY	Bookings $8.3M; backlog +15% YoY	Bookings $11.7M (+34% YoY); backlog $65.2M (+19% YoY)	Strengthening
Wireless ARPU/Churn	ARPU $8.16 (+4% YoY)	ARPU $8.24 (+4.4% YoY); 12‑mo churn down to 6.4%	ARPU $8.20 (+4.6% YoY); net unit churn 1.6% vs 2.1% prior qtr	ARPU up; churn improving
Managed Services	—	+183% YoY; 22.7% of PS	Triple‑digit YoY growth; enterprise traction	Expanding
AI/Product Investment	—	Platform investment; essential utility narrative	Evaluating thoughtful AI integration; R&D to increase	Building/investing
Macro/Tariffs	—	Co. reiterated minimal impact expected	No new macro headwinds called out	Stable
Capital Returns	$6.3M Q4; FY24 $26.4M	$7.9M Q1	$6.5M Q2; dividend declared	Ongoing discipline

Management Commentary

“We generated nearly $4.6 million of net income and nearly $7.5 million of adjusted EBITDA… As anticipated, our cash balances started to grow in the second quarter… we expect cash balances to continue to grow through the remainder of the year.” — Vince Kelly, CEO .
“We are increasing our full year 2025 guidance… [midpoint] would grow consolidated revenue… with an expected 6.4% growth in software revenue… midpoint of our adjusted EBITDA guidance will be up from last year.” — Vince Kelly, CEO .
“We saw a 50 basis point sequential improvement in quarterly net unit churn… ARPU increased $0.36, or nearly 5% from the prior year… pricing actions and… Gen A pager [helped].” — Calvin Rice, CFO .
“Adjusted operating expenses… included a YoY increase in cost of revenue… and in selling and marketing… 2Q24 reflected a one‑time benefit (~$0.9M) from deferral of certain commissions.” — Calvin Rice, CFO .
“We continue to evaluate opportunities to thoughtfully integrate AI into our products and into our operating platform… We believe our robust pipeline has us positioned for a strong second half.” — Vince Kelly & Calvin Rice .

Q&A Highlights

Unreturned pager fee impact: No effect on unit churn; broader wireless price increases are the churn lever; fee is recognized post‑disconnect as product revenue .
Churn mitigation: Pricing actions, Gen A pagers (encrypted, HIPAA‑compliant), bundling Spok Mobile with pagers, and multi‑year renewals; “over $9M” revenue tied to pager plus Spok Mobile .
New logo motion: ~7 dedicated business development reps; ~15% of bookings from new logos; larger enterprise suite deals also displace competitive point solutions .
One‑time item: ~$0.7M gain from sale of legacy domain (other income) in Q2 .
Cash/FCF outlook: FY25 FCF expected $25–$29M; year‑end cash $24–$28M, with sequential rebuild in H2 .

Estimates Context

Q2 2025 vs consensus: Revenue beat ($35.686M vs $35.0M*), EPS beat ($0.22 vs $0.18*), GAAP EBITDA missed ($6.246M vs $6.9M*). Coverage is limited: 1 estimate for revenue and EPS in Q2* .
Looking ahead (current consensus): Q3 2025 EPS $0.19*, revenue $35.9M*, EBITDA $7.3M*; Q4 2025 EPS $0.18*, revenue $34.6M*, EBITDA $7.7M* (implying modest stability into year‑end).
Values with asterisk () are from S&P Global consensus; values retrieved from S&P Global.

Key Takeaways for Investors

Software momentum is the core driver: bookings strength and a growing backlog continue to underpin license and services growth; management expects double‑digit bookings growth for FY25, supporting the guidance raise .
Wireless remains a cash engine despite secular decline: ARPU/pricing and Gen A mix are offsetting unit attrition; sequential churn improvement supports revenue durability .
Profitability quality: EPS and revenue beats versus consensus alongside a GAAP EBITDA shortfall; adjusted EBITDA trajectory and mix (licenses, managed services) matter for valuation framing .
Capital allocation consistent and shareholder‑friendly: dividend maintained; cash expected to build in H2 with no debt; FY25 FCF guide $25–$29M provides cover for distributions and product investment .
Watch H2 execution: management plans higher R&D (including AI initiatives) in H2; sustained bookings conversion and maintenance trajectory will drive whether FY25 lands toward high end of revenue/adj. EBITDA ranges .
Trading setup: Guidance raise and bookings/backlog strength are positive estimate revision catalysts; monitor any shift in maintenance/recurring trends and whether EBITDA (GAAP) can align closer with consensus as mix evolves .

Appendices

Additional qualitative items

Recognition: 18 of the 20 U.S. News 2025–26 Best Hospitals Honor Roll use Spok technology, reinforcing enterprise positioning in critical clinical communications .
Prior quarter context: Q1 revenue $36.294M; adjusted EBITDA $8.204M; reiterated FY25 guide then, subsequently raised at Q2 on stronger 1H performance .

Spok Holdings, Inc (SPOK)·Q2 2025 Earnings Summary