Spok Q2 revenue falls as wireless declines, cuts FY outlook

Overview

• U.S. healthcare communications firm's Q2 revenue fell 1.9% yr/yr as wireless revenue declined

• Adjusted EBITDA for Q2 rose 22.1% yr/yr, while net income dropped 9.5%

• Company completed $8 mln sale of narrowband licenses and lowered full-year revenue guidance

Outlook

• Spok now sees 2026 revenue between $132.5 mln and $139.5 mln, down from $136 mln-$143 mln

• Company maintains 2026 adjusted EBITDA guidance midpoint at $30 mln

• Spok says strategic realignment and sales pipeline visibility influenced updated guidance

Result Drivers

• SOFTWARE REVENUE GROWTH - Co said Q2 software revenue rose over 3% yr/yr, driven by 52% growth in license revenue and 53% growth in managed services revenue

• WIRELESS UNIT DECLINE - Wireless units in service fell 1.8% in Q2, though the rate of decline improved from Q1 and was consistent with prior year levels

• ASSET SALE - Co completed sale of narrowband spectrum licenses for $8 mln as part of strategic realignment

Company press release: ID:nBw49XJ4ya

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "hold"

• The average consensus recommendation for the wireless telecommunications services peer group is "buy."

• Wall Street's median 12-month price target for Spok Holdings Inc is $14.00, about 28.6% above its July 28 closing price of $10.89

Reuters Recommended Reads

• July 28 - Chemed Q2 revenue beats estimates, helped by VITAS segment growth

• July 29 - GE HealthCare tops quarterly estimates, weighs patient care unit sale

• July 28 - ATT closes $23 billion deal to acquire spectrum from Echostar

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)