Spok (SPOK) Q3 2026 earnings summary

Executive summary

• Q3 revenue fell 2.6% YoY to $33.0M; operating income rose 29.3% to $5.6M, net income reached $9.7M including a $7.5M spectrum-sale gain, and adjusted EBITDA rose 29.6% to $8.6M.

• Strategic realignment was completed in Q3 after reducing the workforce by ~10%; annualized savings are expected to exceed $6.0M, with resources redirected to Care Connect Suite and AI initiatives.

• Priorities include cash generation, shareholder returns, Care Connect investment and using AI to improve operational efficiency and product development speed.

Financial highlights

• Q3 revenue was $33.0M versus $33.9M YoY; 9M revenue was $101.2M versus $105.8M, down 4.4%.

• Q3 GAAP net income was $9.7M versus $3.2M; diluted EPS was $0.46 versus $0.15. 9M net income was $15.8M versus $13.0M.

• Q3 operating income rose to $5.6M from $4.4M; 9M operating income was $13.5M versus $15.8M.

• Q3 adjusted operating expenses were $26.1M, down 8.5% YoY; 9M adjusted operating expenses were $82.6M, down 5.3%.

• Q3 adjusted EBITDA was $8.6M versus $6.6M; 9M adjusted EBITDA was $23.0M versus $22.3M.

Outlook and guidance

• FY 2026 guidance reiterated: revenue $132.5M–$139.5M, including wireless revenue of $67.0M–$70.0M and software revenue of $65.5M–$69.5M.

• FY 2026 adjusted EBITDA guidance remains $28M–$32M, based on expected realignment impacts and visibility into the product sales pipeline.

• Annualized savings from the realignment are expected to exceed $6.0M in payroll, related and other operating expenses.

• Year-end 2026 cash and cash equivalents expected at $28M–$32M; operating cash flow and cash on hand are expected to cover anticipated cash requirements.