Spok Holdings, Inc.

Greetings and welcome to the Spoke Holdings Incorporated Q4 2025 Earnings Results Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Al Galgano. Please go ahead.

Hello everyone and welcome. I am joined today by Vince Kelly, Chief Executive Officer, Michael Wallace, Chief Operating Officer, and Calvin Rice, Chief Financial Officer. After a brief presentation by management, we will open up the call to your questions. I want to remind everyone that today's conference call may include forward-looking statements that are subject to risks and uncertainties relating to spokes future, financial, and business performance. Such statements may include estimates of revenue, expenses, and income, as well as other predictive statements or plans, which are dependent upon future events or conditions. These statements represent the company's estimates only on the date of this conference call and are not intended to give any assurance as to actual future results. Spokes, actual results could differ materially from those anticipated in these forward-looking statements. Although these statements are based upon assumptions that the company believes to be reasonable, they are subject to risks and uncertainties. Please review the risk factors section relating to our operations and the business environment, which are contained in our 2025 Form 10-K and related documents, which will be filed with the Securities and Exchange Commission. Please note that SPOKE assumes no obligation to update any forward-looking statements from past or present filings and conference calls. With that, I'll turn the call over to Vince.

Good afternoon. Thank you for joining us for our fourth quarter 2025 earnings call. Let me preface my comments by saying how proud I continue to be of our spoke team and our ability to end the year strong and regain the positive momentum we saw in the first half of 2025. We accomplished this while staying true to our mission, and I'm very excited by our prospects and outlook. Since the strategic pivot we announced about four years ago now, our focus has not changed. That is to grow our software revenue, generate cash, and return capital to our stockholders. In 2025, for the fourth consecutive year, we achieved that goal. We returned $27.3 million of cash to our stockholders while generating $29 million of adjusted EBITDA. We were also successful in our stated goal of growing software revenue and managing anticipated wireless declines. Coupled with a continued focus on expense management, Spoke generated $15.9 million, or $0.75 per diluted share, of net income for the full year of 2025. And we accomplished this while responsibly investing in our product and service offerings. focus struck an excellent balance between making the necessary investments to fuel future growth while continuing to generate cash flow and returning capital to our stockholders. Today, we'll share with you an update on how our strategic business plan is progressing in support of our goals, as well as our financial results for the fourth quarter and full year. I'll start by reviewing the agenda for today's call. The order will be as follows. First, We will review our strategic focus and goals. Next, Mike Wallace, our COO, will provide a review of our sales performance. Then Calvin Rice, our CFO, will review our fourth quarter and full year 2025 financial highlights as well as a more detailed look at our financial expectations for 2026. And I'll then conclude our prepared remarks with a beef wrap-up. Finally, we'll open the call up to your questions. In 2025, our team achieved significant accomplishments regarding software revenue growth, particularly in our professional services business, and specifically as it relates to our managed services offering, managing wireless net churn and related revenue declines, maintaining solid profitability levels, continued expense management, maximizing cash flow generation, progress on our roadmap and development efforts, augmenting our sales team, generating six and seven-figure customer contracts and multi-year engagements, Gen A paid replacements, maintenance contract bookings and retention, and enhancing our industry reputation with continued leadership recognition. In the fourth quarter of 2025, Stoke was able to generate a 14% year-over-year and 83% sequential increase in software operations bookings. As I mentioned previously, I'm very proud of our ability to regain momentum we saw in the first half of 2025. We were very happy with our ability to reverse the headwinds that we saw in Q3 bookings and believe that we will grow total bookings in 2026 from prior year levels, with this year's focus on accelerating our license sales and maintaining growth in professional services. Switching to operating expenses. While driving our top line, we also continued our focus on expense management as operating expense levels for the year increased at a slower pace than year-over-year revenue growth. However, our focus on expense management is one of the key drivers to generate increased cash flow does not come at the expense of our product platform as we continue to make the necessary investments in product development, sales and marketing, customer support, and professional services to support the growth of our Spoke Care Connect and wireless solutions. In 2025, Spoke invested more than $12 million in product research and development a nearly 5% increase in 2024. Investments such as these are critical to creating a best-of-breed product platform and to maintaining our solid industry reputation. In 2025, we'll continue to build upon our premier industry reputation. We started the year with our participation in both the Veeve 25 and HIMSS 25 conferences, where we showcased our top-rated clinical communications platform, SpokeCare Connect. At both events, Spoke experts demonstrated how more efficient communication across contact centers, care teams, and IT teams helped healthcare organizations improve productivity and patient outcomes. Our presence at these industry-leading conferences was a true success, both in terms of the excitement level generated by Spoke's products and the number of new sales leads we were able to add to our pipeline. We are excited to have a presence again at VIVE26 this week and look forward to attending HIMSS26 in March. But don't just take my word on how Spoke continues to improve its reputation. In 2025, I believe that there were two key proof points that underscore our premier market position, as evidenced by, number one, earning top honors for the eighth consecutive year in a survey of healthcare industry clients by Black Book Market Research on top-rated secure messaging and clinical communication solutions. For the second time, Spoke was also recognized as a leading performer in of enterprise messaging and critical alert management solutions. As you may have seen earlier this month, Spoke received top honors for the ninth consecutive year in this survey. And number two, also in the 2025 US News and World Report Best Hospitals Honor Roll, 18 of the 20 adult hospitals and nine of the 10 children's hospitals named to the list are Spoke customers. Accolades such as these do not come if you don't have a best-in-class product offering and solid reputation with their customers. Spoke has an amazing blue chip customer base, and many of those customers have been with us for decades and continue to buy from us. In short, we executed at a high level in 2025, and we are encouraged about the future as we start 2026. Based on our performance in 2025 and the momentum generated in the fourth quarter, we provided guidance estimates for revenue and adjusted EBITDA generation in 2026. Calvin will go into more detail regarding expectations later in the call. Before I turn the call over to Mike to review our sales performance, let me briefly summarize the goals that support our critical and important mission. Our strategic goal is simple. Run the business profitably, generate cash flow, and return that capital to stockholders. Spoke as a proud legacy of creating stockholder value through free cash flow generation, and we intend to continue this track record. Since the beginning of our strategic pivot, which started almost four years ago, Spokas returned approximately $104.3 million or $5 per share to our stockholders in the form of our regular quarterly dividend. In fact, since we created this company in 2004, Spokas returned nearly $730 million to our stockholders either through our regular quarterly dividend, special dividends, or share repurchases. In the fourth quarter of 2025, our history of returning cash to our stockholders continued as we returned $6.4 million in dividends. This continues our legacy of returning capital to shareholders since becoming a public company. Again, we expect to pay dividends in excess of $27 million in 2026. Stoke remains committed to our dividend policy and returning capital to our stockholders. When you take into consideration our current cash balance, distribution to stockholders, share repurchases, debt repayments, and acquisitions, Spoke has now generated nearly $1.1 billion of free cash flow since our creation in 2004. Our focus on maximizing cash over the long term supports the four major tenets of our strategy. Number one, continued investment in our wireless and software solutions. Number two, growing our revenue base. Number three, disciplined expense management. And number four, a stockholder-friendly capital allocation plan. Going forward, we believe our extensive experience operating our established communication solutions and world-class customer base will continue to create significant value for stockholders. Now I'll turn the call over to our President and Chief Operating Officer, Michael Wallace, who will talk about our operational accomplishments.