Overview
Spok Q2 net income up 33% yr/yr, adjusted EBITDA beats estimates
Software revenue rises 10% yr/yr, driven by 34% increase in bookings
Company raises 2025 financial guidance for revenue and adjusted EBITDA
Outlook
Company raises 2025 revenue guidance to $138.0 mln-$143.5 mln
Spok expects 2025 wireless revenue of $71.5 mln-$73.5 mln
Company anticipates 2025 software revenue of $66.5 mln-$70.0 mln
Spok projects 2025 adjusted EBITDA of $28.5 mln-$32.5 mln
Result Drivers
SOFTWARE BOOKINGS - Software operations bookings rose 34% yr/yr, driving a 10% increase in software revenue
MANAGED SERVICES GROWTH - Managed services revenue saw triple-digit growth, contributing to overall software revenue increase
WIRELESS ARPU - Wireless average revenue per unit (ARPU) increased nearly 5% yr/yr, despite decline in units in service
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Net Income | $4.55 mln | ||
Q2 Adjusted EBITDA | Beat | $7.49 mln | $6.90 mln (1 Analyst) |
Q2 Adjusted Operating Expenses | $29.42 mln | ||
Q2 Operating Expenses | $30.29 mln | ||
Q2 Software Revenue | $17.25 mln |
Analyst Coverage
The one available analyst rating on the shares is "buy"
The average consensus recommendation for the wireless telecommunications services peer group is "buy"
Wall Street's median 12-month price target for Spok Holdings Inc is $19.00, about 10.1% above its July 29 closing price of $17.08
The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 21 three months ago
Press Release: ID:nBw2TYXpka
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)