Spok Holdings reported higher third-quarter earnings and adjusted EBITDA, alongside growth in software revenue and wireless revenue per unit. Net income was boosted by a gain from selling certain narrowband spectrum licenses; the sale also added more than $7.5 million to cash. The company ended September with $30.1 million in cash and no debt.
The board declared a quarterly dividend of 31.25 cents per share, payable Dec. 9 to shareholders of record Nov. 18.
Key details
- Earnings and profitability: Third-quarter net income was $9.7 million, compared with $3.2 million a year earlier. The 2026 result included a gain on the license sale. Adjusted EBITDA rose 29.6% year over year to $8.6 million.
- Software growth: Software revenue exceeded $16 million. License revenue grew nearly 30% from the prior-year quarter, while managed-services revenue increased more than 30%.
- Wireless trends: Average revenue per wireless unit was $8.36, up from a year earlier. Wireless units in service declined 1.7% during the quarter, with the rate of decline improving by 12 basis points from the second quarter.
- License sale and cash: Spok completed the sale of certain narrowband spectrum licenses held in its two-way paging inventory, adding more than $7.5 million to cash balances. Cash and equivalents stood at $30.1 million at Sept. 30, and the company had no debt.
- Capital returns and investment: Spok returned $6.5 million to shareholders during the quarter. It also spent $3.2 million on research and development, including work related to artificial intelligence and enhancements to its products.
- Dividend: The 31.25-cent-per-share payment is scheduled for Dec. 9, 2026, to shareholders of record on Nov. 18.
What the results show
The increase in reported net income partly reflects the gain from the spectrum-license sale, while adjusted EBITDA also grew substantially. Software revenue growth and higher wireless revenue per unit were positive operating trends; wireless service units continued to decline, though at a slightly slower pace than in the prior quarter. The sale provided additional cash, while Spok reported no debt and continued returning capital to shareholders.