Spok Holdings, Inc.

Greetings. Welcome to the Spoke Holdings, Inc. Q2 26 earnings results call. At this time, all participants are in a listen only. 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 Al Galgano of Investor Relations. Thank you, Al. You may begin.

Hello everyone and welcome. I am joined today by Vince Kelly, Chief Executive Officer, and Michael Wallace, Chief Operating Officer and 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 second quarter, 2026, form 10Q 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 second quarter 2026 earnings call. Let me preface my comments by saying how proud I am of our SPOKE team and that we remain true to our mission. Since the strategic pivot we announced a few years ago, Our focus has not changed. That is, to increase our software revenue, generate cash, and return capital to our stockholders. In the second quarter, we were able to deliver a nearly 92% sequential increase in software operations bookings, as well as sustained year-over-year levels of wireless average revenue per unit. Additionally, we generated a record level of adjusted EBITDA. We believe that SPOCA struck an excellent balance between making the necessary investments to fuel future growth while continuing to generate cash flow and return capital to stockholders. While driving our top line, we also continued to focus on expense management. As adjusted operating expense levels in the second quarter were down nearly 8% from the prior year. Much of that improvement results from the initial impacts of the strategic realignment that we announced in April. Additionally, SPOKE is implementing artificial intelligence to drive further operational efficiencies across the organization with a particular focus on accelerating product development timelines, reducing time to market for new CareConnect Suite capabilities, and other internal uses. It is important to note that our focus on expense management as 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 investment in product development, sales and marketing, customer support, and professional services to support the growth of our Spoke CareConnect solution offerings. In the first half of 2026, Spoke invested over $6.7 million in product research and development, a nearly 10% increase from 2025. Investments such as these are critical to creating a best-in-class product platform and to maintaining our solid industry reputation. In addition to the metrics I've outlined for you, there were many other operational accomplishments in the second quarter. We saw a more than 3% year-over-year increase in software revenue driven by double-digit growth in managed services revenue as well as software license sales. a less than 2% reduction in wireless units and service and 84 basis point improvement from the prior quarter and consistent with prior year levels and record adjusted EBTA levels that more than covered our dividend and other capital obligations in the second quarter. Today we will provide you a sense of how our strategic business plan is progressing. First, I will provide a review of our second quarter sales performance. Second, I'll cover an overview of the asset sale we closed last week and how it supports our capital allocation strategy. Next, Mike Wallace, our COO and CFO, will provide a review of our second quarter financial highlights, including spokes updated financial expectations for 2026. And finally, I will conclude our prepared remarks with a brief wrap-up before opening the call to your questions. Amidst all the progress in continuing to create this solid financial platform, and Stockholder-Friendly Capital Allocation Strategy, I want to reiterate that we remain true to our mission of being a global leader in healthcare communications. As we remind the listeners each quarter, simply put, we deliver critical information to care teams when and where it matters most to improve patient outcomes as Spoke enables smarter, faster communication throughput for our customers. And importantly, we continue to maintain our reputation as a thought leader in healthcare communications as we continue to see customer satisfaction ratings at very high levels. In the second quarter of 2026, we were able to execute 14 six-figure and one seven-figure new customer contracts. We are very pleased with our very strong performance in the second quarter, regaining our momentum. I'd like to highlight a couple of the notable customer agreements from the second quarter, including one of the largest contracts in our company's history, and one with a well-known national health system. The first agreement is with a customer headquartered in the Midwest that delivers more than 20 million patient encounters annually across more than 2,200 care sites and employs more than 160,000 people, including 45,000 nurses and 25,000 physicians and advanced practice providers across 24 states. The agreement expands the customer's existing software, managed services and Premium Maintenance and Support Contract, extending Spoke Solutions to 85 additional locations. The customer continues to unify operations with our Spoke CareConnect platform using our operator console, alerting and alarm routing solutions. This means delivering a consistently positive experience across every channel the customer touches, sales, support, services and finance, a full 360-degree relationship with Spoke. Also in the second quarter, a prestigious academic health system and longstanding Spoke SmartSuite customer made a significant strategic investment with Spoke to modernize their clinical communication platform. The engagement expands their deployment to include Spoke Messenger, Spoke Mobile, SMS services, Epic Chat integration, email in and out, and the ASCOM gateway. These additions complement their existing Spoke SmartSuite solution and Spoke Gen A pagers, creating a comprehensive platform that delivers critical information to the most appropriate device and modality for every clinical need. The agreement also includes an upgrade and expansion to the customer's test system and redundancy environment, along with our workflow analysis value-added service to design communication strategies tailored to the organization's clinical and operational processes. Together, these both solutions help ensure the right information and more. In summary, our team delivered an outstanding second quarter, reflecting focused execution and continued progress against our strategic priorities. These deals reinforce our expertise and ongoing commitment to delivering high-value communication solutions that drive meaningful outcomes for our customers. As you may have seen, A little over a month ago, we announced our entry into an agreement to sell certain narrowband spectrum licenses in our two-way paging inventory to CensusUSA. The transaction has been approved by the FCC and closed on July 20th. For those of you who may not be familiar with CensusUSA, they're a brand within the Xylem Inc. family of products and are a designer and manufacturer of metering and automatic meter reading products catering to municipal and industrial markets worldwide. The total purchase price for the acquired licenses is a cash consideration totaling $8 million. Of that, the majority was paid at closing on July 20th with a small portion held back and paid on a prorated basis only after Spoke confirms that each Spectrum license sold has been cleared of existing Spoke users as they are being transferred to other frequencies. Spoke has 180 days after closing to clear the Spectrum. We expect a completed clearing this quarter. While the purchase price of $8 million is important as it contributes to our cash balances, this transaction is most important because of its strategic value as we continue to find efficiencies within our organization and create opportunities to monetize our highly valuable asset base. This is truly a win-win for all parties involved as we create stockholder value without impacting our two-way subscribers, transferring them to alternative frequencies in our Spectrum portfolio. Also, because the spectrum being sold has no cost basis on our balance sheet, the entire amount received, less customary transaction costs, will result in a gain. Given our available deferred tax assets, or DTAs, we would expect no federal tax to be due on the gain. After this transaction, our DTA balance is expected to be approximately $30 million. We believe that there may be additional opportunities to create stockholder value through monetizing our asset base. Combined with the benefits of the strategic realignment that we announced back in April, as well as the progress we are making on implementing AI initiatives to create operational efficiencies in our organization, we are confident in our future. Before I turn the call over to Mike to review our financial performance, let me briefly summarize the goals that support our critical and important mission. Our strategic goal is simple. Run the business for profitable growth, generate cash flow, and return that capital to stockholders. spoke as a proud legacy of creating stockholder value and returning capital through free cash flow generation, and we intend to continue this track record. Our dividend level represents a yield in excess of 10% for our stockholders, and we're proud of our legacy there and our ability and commitment to continue funding it. Since the beginning of our strategic pivot, which started in 2022, VOCA's returned approximately $118.7 million are nearly $5.63 per share to our stockholders in the form of our regular quarterly dividend. In fact, since we created this company in 2004, Spook has returned more than $740 million to our stockholders due to our regular quarterly dividend, special dividends, or share repurchases. In the second quarter of 2026, our history of returning cash to our stockholders continued as we returned $6.5 million in dividends. We expect to pay dividends in excess of $27 million in 2026, and we remain 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 flows since our creation in 2004, and we turned approximately two-thirds of it to our shareholders. Our focus on maximizing cash over the long term supports the four major tenets of our strategy. Those are, number one, continued investment in our product platform. 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 will turn the call over to our Chief Operating Officer and Chief Financial Officer, Mike Wallace, who will talk about financial performance and earnings guidance. Mike?