Strategic cost optimization has successfully expanded gross margins from approximately 58% in early 2024 to over 78% by late 2025, despite revenue fluctuating near the $34 million quarterly mark.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 |
|---|
| Sales/Revenue | 103.41M | 139.71M | 137.65M | 139.03M | 134.53M | 142.15M | 148.18M | 160.29M | 169.47M | 171.18M | 179.56M | 189.63M | 200.27M | 209.75M | 168.41M | 242.91M | 233.25M | 289.71M | 359.45M | 424.62M | 497.69M | 618.57M | 490.16M |
| Revenue Growth % | -25.62% | 1.49% | -0.99% | 3.34% | -5.36% | -4.07% | -7.55% | -5.42% | -0.99% | -4.67% | -5.31% | -5.32% | -4.52% | 24.55% | -30.67% | 4.14% | -19.49% | -19.4% | -15.35% | -14.68% | -19.54% | 26.2% | - |
| Cost of Goods Sold | 8.9M | 29.57M | 28.43M | 57.16M | 59.25M | 72.27M | 37.6M | 39.32M | 74.53M | 71.54M | 76.35M | 81.94M | 94.72M | 87.93M | 94.5M | 102.57M | 97.5M | 133.42M | 175.42M | 206.85M | 254.26M | 135.81M | 111.98M |
| COGS % of Revenue | - | 21.16% | 20.65% | 41.11% | 44.04% | 50.84% | 25.37% | 24.53% | 43.98% | 41.8% | 42.52% | 43.21% | 47.29% | 41.92% | 56.12% | 42.23% | 41.8% | 46.05% | 48.8% | 48.71% | 51.09% | 21.96% | 22.84% |
| Gross Profit | 94.52M | 110.14M | 109.22M | 81.87M | 75.28M | 69.89M | 110.58M | 120.97M | 94.94M | 99.63M | 103.22M | 107.69M | 105.56M | 121.82M | 125.19M | 140.34M | 135.76M | 156.29M | 184.02M | 217.77M | 243.44M | 482.76M | 378.18M |
| Gross Margin % | 91.4% | 78.84% | 79.35% | 58.89% | 55.96% | 49.16% | 74.63% | 75.47% | 56.02% | 58.2% | 57.48% | 56.79% | 52.71% | 58.08% | 74.34% | 57.77% | 58.2% | 53.95% | 51.2% | 51.29% | 48.91% | 78.04% | 77.16% |
| Gross Profit Growth % | - | 0.84% | 33.41% | 8.75% | 7.72% | -36.8% | -8.59% | 27.41% | -4.71% | -3.47% | -4.15% | 2.02% | -13.35% | -2.69% | -10.79% | 3.37% | -13.14% | -15.07% | -15.5% | -10.54% | -49.57% | 27.65% | - |
| Operating Expenses | 80.88M | 90.43M | 90.26M | 60.07M | 67.72M | 81.94M | 108.24M | 127.93M | 98.11M | 88.92M | 79.62M | 79.89M | 75.91M | 75.34M | 74.33M | 76.69M | 74.3M | 92.14M | 109.8M | 135.5M | 171.78M | 439M | 331.14M |
| OpEx % of Revenue | - | 64.73% | 65.57% | 43.21% | 50.33% | 57.64% | 73.05% | 79.81% | 57.89% | 51.95% | 44.34% | 42.13% | 37.9% | 35.92% | 44.13% | 31.57% | 31.85% | 31.8% | 30.55% | 31.91% | 34.52% | 70.97% | 67.56% |
| Selling, General & Admin | 37.63M | 50.87M | 49.15M | 49.52M | 54.09M | 64.02M | 92.41M | 100.39M | 73.65M | 70.22M | 66.15M | 69.61M | 75.91M | 75.34M | 74.33M | 76.69M | 74.3M | 92.14M | 109.8M | 135.5M | 171.78M | 220.58M | 166.13M |
| SG&A % of Revenue | - | 36.41% | 35.71% | 35.62% | 40.21% | 45.04% | 62.36% | 62.63% | 43.46% | 41.02% | 36.84% | 36.71% | 37.9% | 35.92% | 44.13% | 31.57% | 31.85% | 31.8% | 30.55% | 31.91% | 34.52% | 35.66% | 33.89% |
| Research & Development | 9.04M | 12.09M | 11.55M | 10.55M | 13.63M | 17.92M | 15.83M | 27.54M | 24.46M | 18.7M | 13.47M | 10.28M | 9.5M | 8.7M | 8.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | 8.66% | 8.39% | 7.59% | 10.13% | 12.61% | 10.68% | 17.18% | 14.44% | 10.93% | 7.5% | 5.42% | 4.74% | 4.15% | 5.28% | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 3M | 27.47M | 29.56M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 218.42M | 165.01M |
| Operating Income | 13.63M | 19.71M | 18.96M | 21.8M | 7.57M | -12.05M | 2.34M | -6.96M | -3.17M | 10.71M | 23.6M | 27.8M | 29.65M | 46.48M | 50.87M | 63.65M | 61.46M | 64.14M | 74.23M | 82.28M | 71.66M | 43.76M | 47.05M |
| Operating Margin % | 13.18% | 14.11% | 13.78% | 15.68% | 5.62% | -8.48% | 1.58% | -4.34% | -1.87% | 6.25% | 13.14% | 14.66% | 14.8% | 22.16% | 30.21% | 26.2% | 26.35% | 22.14% | 20.65% | 19.38% | 14.4% | 7.07% | 9.6% |
| Operating Income Growth % | - | 3.93% | -13.01% | 188.11% | 162.77% | -614.73% | 133.65% | -119.35% | -129.64% | -54.63% | -15.11% | -6.22% | -36.21% | -8.63% | -20.08% | 3.57% | -4.19% | -13.58% | -9.78% | 14.82% | 63.76% | -6.99% | - |
| EBITDA | 17.06M | 23.14M | 23.11M | 26.3M | 11.14M | -1.61M | 11.4M | 2.29M | 7.6M | 22.33M | 36.56M | 41.77M | 46.32M | 61.64M | 69.1M | 82.99M | 85.58M | 106.06M | 121.24M | 130.97M | 144.96M | 175.09M | 154.68M |
| EBITDA Margin % | 16.5% | 16.56% | 16.79% | 18.92% | 8.28% | -1.13% | 7.69% | 1.43% | 4.48% | 13.05% | 20.36% | 22.03% | 23.13% | 29.39% | 41.03% | 34.16% | 36.69% | 36.61% | 33.73% | 30.84% | 29.13% | 28.3% | 31.56% |
| EBITDA Growth % | -31.11% | 0.11% | -12.11% | 136.1% | 792.23% | -114.12% | 397.95% | -69.87% | -65.98% | -38.93% | -12.47% | -9.83% | -24.85% | -10.79% | -16.73% | -3.04% | -19.3% | -12.52% | -7.43% | -9.65% | -17.21% | 13.2% | - |
| D&A (Non-Cash Add-back) | 3.42M | 3.43M | 4.15M | 4.5M | 3.57M | 10.45M | 9.06M | 9.25M | 10.77M | 11.62M | 12.96M | 13.97M | 16.68M | 15.17M | 18.23M | 19.33M | 24.13M | 41.91M | 47.01M | 48.69M | 73.3M | 131.33M | 107.63M |
| EBIT | 14.21M | 21.44M | 20.07M | 22.32M | 997K | -27.33M | -21.77M | -13.42M | -2.19M | 11.56M | 22.97M | 26.3M | 27.78M | 45.6M | 46.44M | 67.61M | 60M | 58.01M | -116.83M | 81.46M | 71.78M | 25.9M | 35.34M |
| Net Interest Income | 601K | 820K | 1.15M | 1.1M | 592K | 320K | 687K | 1.65M | 1.64M | 719K | 275K | 16K | -456K | -260K | -380K | -2.25M | 16K | 69K | 1.8M | 3.45M | 3.87M | -1.32M | -5.91M |
| Interest Income | 601K | 820K | 1.15M | 1.1M | 592K | 320K | 687K | 1.65M | 1.64M | 719K | 275K | 0 | 0 | 0 | 0 | 0 | 16K | 71K | 1.81M | 3.46M | 3.9M | 1.09M | 451K |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 16K | 456K | 260K | 380K | 2.25M | 0 | 2K | 11K | 13K | 34K | 2.41M | 6.37M |
| Other Income/Expense | 1.55M | 1.73M | 1.07M | 524K | -6.57M | -15.28M | -24.11M | -6.46M | 988K | 853K | -628K | -1.5M | -2.32M | -1.14M | -4.8M | 1.7M | -1.46M | -6.14M | -191.07M | -831K | 82K | -20.27M | -18.07M |
| Pretax Income | 15.18M | 21.44M | 20.03M | 22.32M | 997K | -27.33M | -21.77M | -13.42M | -2.19M | 11.56M | 22.97M | 26.3M | 27.33M | 45.34M | 53.59M | 65.36M | 60M | 58.01M | -116.84M | 81.45M | 71.74M | 23.48M | 22.76M |
| Pretax Margin % | 14.68% | 15.35% | 14.55% | 16.06% | 0.74% | -19.23% | -14.69% | -8.37% | -1.29% | 6.75% | 12.79% | 13.87% | 13.64% | 21.62% | 31.83% | 26.91% | 25.72% | 20.02% | -32.51% | 19.18% | 14.41% | 3.8% | 4.64% |
| Income Tax | 4.5M | 5.56M | 5.07M | 6.66M | -20.86M | -5.15M | 22.45M | -2.66M | -706K | 26.86M | 8.99M | -57.94M | 6.58M | 17.81M | 21.55M | -23.28M | -17.9M | -9.55M | 40.23M | 86.64M | 31.56M | 10.58M | 9.28M |
| Effective Tax Rate % | 29.63% | 25.94% | 25.29% | 29.83% | -2092.18% | 18.85% | -103.15% | 19.8% | 32.31% | 232.42% | 39.15% | -220.31% | 24.09% | 39.28% | 40.22% | -35.63% | -29.83% | -16.47% | -34.43% | 106.38% | 43.99% | 45.04% | 40.77% |
| Net Income | 10.69M | 15.88M | 14.96M | 15.67M | 21.86M | -22.18M | -44.23M | -10.77M | -1.48M | -15.31M | 13.98M | 84.23M | 20.75M | 27.53M | 32.04M | 88.64M | 77.9M | 67.56M | -157.08M | -5.2M | 40.18M | 12.91M | 13.48M |
| Net Margin % | 10.33% | 11.37% | 10.87% | 11.27% | 16.25% | -15.6% | -29.85% | -6.72% | -0.87% | -8.94% | 7.79% | 44.42% | 10.36% | 13.13% | 19.03% | 36.49% | 33.4% | 23.32% | -43.7% | -1.22% | 8.07% | 2.09% | 2.75% |
| Net Income Growth % | -32.9% | 6.12% | -4.47% | -28.32% | 198.54% | 49.85% | -310.82% | -627.86% | 90.34% | -209.49% | -83.4% | 306.05% | -24.65% | -14.08% | -63.85% | 13.79% | 15.31% | 143.01% | -2921.87% | -112.94% | 211.31% | -4.26% | - |
| Net Income (Continuing) | 10.69M | 15.88M | 14.96M | 15.67M | 21.86M | -22.18M | -44.23M | -10.77M | -1.48M | -15.31M | 13.98M | 80.25M | 20.75M | 27.53M | 26.98M | 88.64M | 77.9M | 67.56M | -157.08M | -5.2M | 40.18M | 12.91M | 12.17M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.51 | 0.75 | 0.73 | 0.77 | 1.09 | -1.14 | -2.32 | -0.56 | -0.08 | -0.76 | 0.68 | 3.98 | 0.94 | 1.25 | 1.43 | 3.94 | 3.45 | 2.90 | -5.83 | -0.19 | 1.46 | 0.47 | 0.58 |
| EPS Growth % | -23.08% | 2.74% | -5.19% | -29.36% | 195.61% | 50.86% | -314.29% | -644.68% | 90.11% | -211.76% | -82.91% | 323.4% | -24.8% | -12.59% | -63.71% | 14.2% | 18.97% | 149.74% | -2968.42% | -113.01% | 210.64% | -18.97% | - |
| EPS (Basic) | - | 0.77 | 0.74 | 0.79 | 1.11 | -1.14 | -2.32 | -0.56 | -0.08 | -0.76 | 0.68 | 3.99 | 0.96 | 1.27 | 1.46 | 4.01 | 3.50 | 2.95 | -5.83 | -0.19 | 1.47 | 0.47 | 0.58 |
| Diluted Shares Outstanding | 21.14M | 21.07M | 20.57M | 20.34M | 19.99M | 19.4M | 19.03M | 19.09M | 19.67M | 20.21M | 20.59M | 21.19M | 22.09M | 22.01M | 22.4M | 22.51M | 22.57M | 23.26M | 26.94M | 27.44M | 27.58M | 27.43M | 20.97M |
| Basic Shares Outstanding | 20.77M | 20.61M | 20.24M | 19.95M | 19.67M | 19.4M | 19.03M | 19.09M | 19.67M | 20.21M | 20.59M | 21.12M | 21.62M | 21.65M | 21.92M | 22.08M | 22.27M | 22.92M | 26.94M | 27.44M | 27.4M | 27.28M | 20.84M |
| Dividend Payout Ratio | - | 171.65% | 176.28% | 163.68% | 114.44% | - | - | - | - | - | 73.59% | 16.59% | 52.19% | 44.72% | 51.54% | 24.96% | 56.78% | 67.35% | - | - | 246.15% | 315.26% | - |
Secular paging subscriber decline
As reported in financial statements, Spok's quarterly revenue has fluctuated within a narrow band near $34 million, reflecting a managed decline in legacy wireless subscriptions that is partially offset by the company's efforts to maintain its core software maintenance and professional services revenue streams over time.
The revenue profile suggests a business in a controlled harvest phase rather than a growth trajectory. Investors should monitor whether the software segment can eventually stabilize the top line as the wireless subscriber base continues its inevitable secular contraction.
Based on recent income statement data, gross margins have demonstrated significant improvement, rising from approximately 58% in early 2024 to over 78% by late 2025, largely driven by the strategic reduction of network-related costs and a pivot away from speculative cloud-native product development investments.
This margin expansion appears to be a direct result of management's decision to prioritize the core on-premise software suite over the high-burn Spok Go platform. The sustainability of these elevated margins warrants further investigation, as they depend heavily on the company's ability to maintain pricing power in a niche market.
According to historical filings, Spok has successfully maintained operating margins in the 12% to 16% range by keeping SG&A expenses relatively flat, even as the company navigates the complex operational requirements of supporting its legacy paging infrastructure alongside its modern clinical communication software platform.
The company's ability to scale operating income despite stagnant revenue suggests a disciplined approach to overhead management. This operational leverage appears to be a key component of the firm's strategy to maximize cash flow for shareholder returns.
While Spok maintains a strong niche, market data suggests that the consolidation of clinical communication and collaboration tools by larger enterprise players like Stryker may isolate Spok as a point-solution provider, potentially threatening its long-term software renewal rates and overall competitive positioning within hospital systems.
Short-term stability may mask the risk that hospital IT departments increasingly favor integrated enterprise agreements over specialized legacy vendors. Investors should monitor whether the company's software stickiness is sufficient to withstand the bundling strategies employed by larger, better-capitalized competitors in the healthcare IT space.
Quick answers to the most common questions about buying SPOK stock.
For fiscal year 2025, Spok Holdings, Inc. (SPOK) reported total revenue of $139.7M. This represents a 71.5% decline compared to $490.2M in 2004.
Spok Holdings, Inc. (SPOK) is profitable, generating $15.9M in net income for the fiscal year ending 2025 with a net profit margin of 11.4%.
Spok Holdings, Inc. (SPOK) reported an operating income of $19.7M, resulting in an operating profit margin of 14.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Spok Holdings, Inc. (SPOK) generated $110.1M in gross profit for the year, representing a gross profit margin of 78.8%. This demonstrates the company's core pricing power and production efficiency.