Spok Holdings, Inc. · NASDAQ:SPOK
Spok — Investor Presentation (August 2025)
31 slides from Spok's investor presentation, Aug 1, 2025
Slide 1: Investor Presentation August 2025
Investor Presentation August 2025
Slide 2: Safe Harbor Statement
2 Safe Harbor Statement Statements contained herein or in prior press releases which are not historical fact, such as statements regarding our future operating and financial performance, are forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation
Slide 3: Our Mission & Investment Highlights
Our Mission & Investment Highlights
Slide 4: Key Investment Highlights
Key Investment Highlights Significant Annual Free Cash Flow Generation and Strong Balance Sheet Substantial cash flow being returned to shareholders through considerable quarterly dividend, no debt Software Operations Bookings Momentum, Large Identified Pipeline Expanding software pipeline convertin
Slide 5: Strategic Goal: Run the business profitably and generate cash
5 Strategic Goal: Run the business profitably and generate cash Returning capital to stockholders is our goal as well as our legacy • Over $700 million returned to stockholders since 2004 • 2024 capital return - $26.4 million • Anticipated 2025 capital return – more than $27 million Focus on maximiz
Slide 6: Continuing History of Service and Commitment
6 Continuing History of Service and Commitment Leader in healthcare communications - A clinical communications & collaboration solution provider. Significant experience integrating to critical hospital contact centers, EHRs and many other core healthcare information systems. We continue to invest in
Slide 7: Our Plan
Our Plan Growth in value and return of capital 7 Long-term objective • Growing cash flow while growing our top line with growth in software revenue Short-term energy focus 1. Software Bookings: Achieve plan and show YoY growth 2. Product Roadmap Progress: Demonstrable benefit to the business and fut
Slide 8: Healthcare responds to fiscal challenges
8 Healthcare responds to fiscal challenges Changes in economic conditions Fiscal alignment of healthcare IT strategy ⚫ Staff Shortages (Nursing, IT and others) ⚫ High Labor Costs ⚫ Higher Capital Cost/Reduced Capital Spending ⚫ High Inflation ⚫ Economic Recession ⚫ Thinner Margins ⚫ Tighter IT Budge
Slide 9: Spok responds to fiscal challenges
9 Spok responds to fiscal challenges New product release cadence Provide 3- or 5-year managed maintenance & services agreement ⚫ Limit costly major upgrades to a 3- to 4-year cycle ⚫ Deliver product enhancements releases twice/year with minor in-place upgrades ⚫ Perform benefit realization assessmen
Slide 10: Secure Messaging & Clinical Communications Solutions
10 Secure Messaging & Clinical Communications Solutions • Survey period: 4Q24 – 1Q25 • 1,276 respondents representing health systems, critical access hospitals, academic medical centers, diagnostic service providers, and others • Black Book collects ballot results on 18 performance areas of operatio
Slide 11: Critical Alert Messaging & Management Solutions
11 Critical Alert Messaging & Management Solutions For 2025, Black Book introduced a new category for critical alert messaging and management solutions. These solutions improve communication and response times by delivering real-time, prioritized notifications to caregivers. Their features, like ala
Slide 12: Longstanding customer relationships
Customer Software Wireless Tenure 12 Longstanding customer relationships 23 32 -- -- -- 46 31 28 16 32 Arizona Customer Software Wireless Tenure 39 29 24 22 22 18 20 Top 20 adult hospitals (2025-2026) Customer Software Wireless Tenure 15 38 22 --
Slide 13: 2025 US health systems/hospitals by lines of business
13 2025 US health systems/ hospitals by lines of business* Wireless Only 903 51% Software Only 515 29% Both 366 21% 1,784 total Spok customers Total Population 7,128* 25% Market Penetration Software market share by bed size** *Definitive Healthcare 6% 29% 1-199 Beds 309 customers 54% 200-599 Beds 37
Slide 14: Spok Leadership Team
Spok Leadership Team Sharon Woods Keisling Corporate Secretary and Treasurer Renee Hall Chief Compliance Officer VP of Human Resources Tim Tindle Chief Information Officer Vince Kelly Chief Executive Officer Mike Wallace President and Chief Operating Officer Mick Ling Vice President of Maintenance R
Slide 15: Business Strategy
::: Business Strategy
Slide 16: Overall Strategy
Overall Strategy Critical Communications Purpose Built Over Time Evolution of Spok • Acquiring new customers by further penetrating the hospitals domestically with significant opportunity outside the U.S. • Continuing to expand relationships within the existing customer base with additional R&D spen
Slide 17: Software Strategy
Software Strategy • With Spok Care Connect, the contact center is the base, with products like Messenger and Spok Mobile® sold as accessories to our contact center solution, which are all on-premise solutions Wireless Integration Spok Care Connect… …Product Direction • With the pivot from Spok Go, r
Slide 18: Wireless Strategy
Wireless Strategy Spok continues to maximize Wireless cash flow by pursuing a strategy of simultaneously minimizing churn and revenue erosion while maximizing margins through network cost reduction efforts Network Rationalization Plan The Company has ongoing efforts to manage network capacity and to
Slide 19: Focus on Healthcare
61% H e a l t h c a r e Other Large Enterprise Government 2012 19 Focus on Healthcare 85% H e a l t h c a r e Government Large Enterprise Other 2025 Percentage of revenue
Slide 20: Spok Care Connect Market Size
20 Spok Care Connect Market Size 6.8 billion By 2034 (2025 $2.54B) Total Addressable Market 11.7 CAGR from 2025 to 2034 Growth Rate Largest Market 30% 680 million In 2024 North America Market Size Source: Precedence Research
Slide 21: Spok Care Connect Competitive Positioning
Spok Care Connect Competitive Positioning KEY VALUE PROPOSITIONS ✓ Strategic partner that solves enterprise challenges from one platform allowing the right message to get to the right person on the right device ✓ Source of truth, especially in complex IDNs, for the directory and on-call schedules ✓
Slide 22: Financials
::: Financials
Slide 23: Second Quarter 2025 Financial Results
Second Quarter 2025 Financial Results Company executing on strategic business plan generating $9.7 million of YTD GAAP net income, and $15.7 million of YTD adjusted EBITDA 23 For the Three Months Ended June 30, For the Six Months Ended June 30, 2025 2024 2025 2024 Total Revenue $35.7 $34.0 $72.0 $68
Slide 24: 2025 Second Quarter Sales Highlights
2025 Second Quarter Sales Highlights • Software operations bookings increased over 34% from the second quarter of 2024 • Bookings included 23 six-figure and 1 seven-figure customer agreements as well as 12 multi-year engagements • Average software operations bookings contract size up nearly 40% from
Slide 25: Balance Sheet
25 Balance Sheet • Exceptionally clean and simple balance sheet • No debt • Common stock only • $20.2 million of cash and equivalents • Significant deferred tax assets to shield income from federal taxes for many years
Slide 26: 2025 Financial Outlook
2025 Financial Outlook 26 Current Guidance Prior Guidance From To From To Total Revenue: $138.0 $143.5 $134.0 $142.0 Wireless Revenue $71.5 $73.5 $69.0 $72.0 Software Revenue $66.5 $70.0 $65.0 $70.0 Adjusted EBITDA(1) $28.5 $32.5 $27.5 $32.5 (Dollars in millions) (1) Adjusted EBITDA represents net i
Slide 27: Capital Allocation
::: Capital Allocation
Slide 28: Capital Allocation
Capital Allocation Return of Capital • Higher $1.25 per share annual dividend since February 2022 • Opportunistic capital deployment for shareholder value via share repurchase authorization – current basket of $10.0 million M&A • Not a current focus/priority • Will be opportunistic for potential to
Slide 29: History of Adjusted FCF generation and return of capital
29 History of Adjusted FCF generation and return of capital • Since the 2004 merger, Spok has generated over $1 billion in cumulative free cash flow. • Both our Wireless and Software businesses drive significant FCF and allow for the continued investment in our software business. 29 0 200 400 600 80
Slide 30: Wrap-Up
Wrap-Up Enormous customer base and strong relationships with leading healthcare providers Largest wireless paging network in the country with 694,000 units in service No debt, $20.2 million cash balance, significant deferred tax assets, substantial dividend yield currently Stable re-occurring wirele
Slide 31: Thank you
::: Thank you