Spok (SPOK) Q1 2026 earnings summary

Executive summary

• Achieved nearly 57% year-over-year growth in software managed services revenue for Q1 2026, with stable recurring revenue from wireless, software maintenance, and managed services.

• Q1 2026 net income was $2.0 million and adjusted EBITDA was $5.3 million, with a debt-free balance sheet and $17.1 million in cash.

• Strategic realignment announced, including a 10% workforce reduction, targeting over $6 million in annualized cost savings and leveraging AI for efficiency.

• Returned $8.0 million to stockholders in Q1 2026 through dividends, with a projected $27 million for the year and a dividend yield exceeding 10%.

• Maintains the largest wireless paging network in the country with 657,000 units in service and strong relationships with leading healthcare providers.

Financial highlights

• Q1 2026 total revenue was $33.2 million, down 8.5% year-over-year, with software revenue at $15.7 million and wireless revenue at $17.5 million.

• Adjusted EBITDA was $5.3 million, down 35.9% year-over-year; operating income was $2.4 million.

• Basic EPS was $0.10, diluted EPS $0.09, both down from $0.25 in Q1 2025.

• Cash and equivalents at quarter-end were $17.1 million, with no debt.

• Adjusted operating expenses were flat at $29.5 million year-over-year.

Outlook and guidance

• 2026 total revenue guidance: $136–$143 million; adjusted EBITDA guidance: $27.5–$32.5 million, with the midpoint above 2025.

• Wireless revenue guidance: $68–$71 million; software revenue: $68–$72 million.

• Guidance reiterated due to strong Q2 bookings and cost-cutting initiatives, but more visibility needed before upward revision.

• Capital return for 2026 expected to exceed $27 million.

• Continued investment in new offerings and AI initiatives to offset wireless revenue decline.