Spok Q3 Adjusted EBITDA Rises 30% as Revenue Declines

Spok (NASDAQ: SPOK) reported higher third-quarter adjusted EBITDA despite lower revenue, as expense management and resilient wireless economics supported profitability while total sales declined. The healthcare communications company also maintained a debt-free balance sheet and outlined 2026 revenue guidance of $132.5 million to $139.5 million.

Revenue for the three months ended September 30 fell 2.7% to $33.0 million from $33.9 million a year earlier. Adjusted EBITDA increased 30.3% to $8.6 million from $6.6 million. Spok defines adjusted EBITDA as net income or loss before interest, taxes, depreciation and accretion, stock-based compensation, intangible-asset impairments, certain non-core legal costs, and severance and restructuring expenses.

For the first nine months of 2026, revenue declined to $101.2 million from $105.8 million. Adjusted EBITDA rose to $23.0 million from $22.3 million.

Software growth areas offset by lower total segment revenue

Third-quarter software revenue was $16.0 million, compared with $16.1 million in the prior-year period. Within the segment, software license revenue increased 29.5%, while managed services revenue grew 30.3%.

Through the first three quarters of 2026, Spok recorded 42 six- and seven-figure software customer agreements. The company said its customer base includes 18 of the 20 adult hospitals and all 11 children’s hospitals on the 2026-2027 U.S. News & World Report Best Hospitals Honor Roll.

Wireless revenue declined 4.5% to $17.0 million from $17.8 million. Spok attributed the comparatively limited decline to sustained average revenue per unit and reduced unit attrition. The company had 634,000 wireless paging units in service at the end of the period and described its recurring wireless, software maintenance, subscription and managed services revenue as a foundation for its business.

Cash position and 2026 outlook

Spok ended September with $30.1 million in cash and cash equivalents and no debt. The completed sale of narrowband licenses added more than $7.5 million to cash balances, with all licenses cleared for transfer.

The company returned $6.5 million to shareholders during the third quarter through its regular quarterly dividend. Management anticipates returning more than $27 million during 2026 and said its long-term priorities remain profitable operations, cash generation, disciplined expense management and shareholder-focused capital allocation.

For 2026, Spok expects total revenue of $132.5 million to $139.5 million. That range includes wireless revenue of $67.0 million to $70.0 million and software revenue of $65.5 million to $69.5 million. Adjusted EBITDA is projected at $28.0 million to $32.0 million.

Management said it plans incremental investment in wireless and software solutions, with the objectives of stabilizing and then growing revenue. Spok also added an executive vice president and general manager to help align its product, engineering and go-to-market teams.

The company’s stated risks include continued paging-unit and wireless-revenue declines, long software sales cycles, dependence on the U.S. healthcare industry, competition from newer technologies, cybersecurity and data-privacy threats, reliance on third-party infrastructure and equipment suppliers, and the challenge of reducing wireless network costs without disrupting customer service.