Spok Holdings, Inc Q4 FY2025 earnings call

Vince Kelly was proud of the team for ending 2025 strong and regaining positive momentum. Since the strategic pivot 4 years ago, focus was on growing software revenue, generating cash, and returning capital. In 2025, returned $27.3 million to stockholders, generated $29 million adjusted EBITDA, $15.9 million net income. Mike Wallace discussed sales performance, noting 14% YOY and 83% sequential increase in software operations bookings in Q4 2025, 73 six- and seven-figure customer contracts in 2025, 14 such contracts closed in Q4. Calvin Rice reviewed financials, mentioned reclassification exercise, and provided 2026 guidance.

In 2025, total GAAP revenue was $139.7 million, up from $137.7 million in 2024. Wireless revenue was $72.5 million in 2025, down from $73.5 million in 2024. Software revenue was $67.2 million in 2025, up from prior year. Software revenue growth was driven by nearly 24% increase in professional services revenue and managed services offering. Wireless revenue deceleration was due to pricing actions on unreturned pager equipment. Adjusted operating expenses in 2025 were $116.1 million, up 2.4% from prior year. Adjusted EBITDA was $29 million in 2025, in line with 2024.

2026 total revenue expected to range from 136 to 143 million. Wireless revenue expected to range from $68 to $71 million, software revenue from $68 to $72 million. Adjusted EBITDA guidance $27.5 million to $32.5 million.

Q: On software backlog, declined 6.8% YOY but cancelable contracts nearly tripled to ~$16M, explain shift in cancelable portion.

A: Calvin said deal size growing with up to seven figure contracts, terms may be slightly unfavorable but expect to realize full value.

Q: On fourth quarter software operations booking recovery, how to think going forward?

A: Vince said expect to grow operations bookings in 2026 over 2025 level, contracts lumpy but total bookings expected to grow.

Q: How does AI look with business, particularly Spoke Console?

A: Vince said looking at AI for internal R&D efficiency and for customers as helper for operators, working with AI companies, careful with implementation.

Q: What does investment to grow revenue base look like?

A: Vince said shifting investment more toward new and less on legacy, higher growth expected than 2026 guidance but need to balance funding dividend.