Financial Analysis

COMMITMENTS AND CONTINGENCIES There have been no material changes during the six months ended June 30, 2026 to the commitments and contingencies previously reported in the 2025 Annual Report.

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The following table presents our revenues disaggregated by revenue type: For the Three Months Ended June 30, For the Six Months Ended June 30, (Dollars in thousands) 2026 2025 2026 2025 Revenue: Paging revenue $ 16,011 $ 17,192 $ 32,580 $ 34,799 Product and other revenue 1,202 1,248 2,119 2,115 Wireless revenue $ 17,213 $ 18,440 $ 34,699 $ 36,914 License $ 3,632 $ 2,394 $ 4,994 $ 5,025 Professional services - projects 2,768 3,831 6,096 8,302 Professional services - managed services 2,332 1,520 4,391 2,835 Hardware 128 376 314 697 Maintenance and subscription 8,938 9,125 17,743 18,207 Software revenue $ 17,798 $ 17,246 $ 33,538 $ 35,066 Total revenue $ 35,011 $ 35,686 $ 68,237 $ 71,980 Revenue generated in the United States and internationally consisted of the following for the periods stated: For the Three Months Ended June 30, For the Six Months Ended June 30, (Dollars in thousands) 2026 2025 2026 2025 United States $ 34,479 $ 35,104 $ 67,092 $ 70,667 International 532 582 1,145 1,313 Total revenue $ 35,011 $ 35,686 $ 68,237 $ 71,980

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GOODWILL During the three months ended June 30, 2026, we performed a qualitative assessment of goodwill and determined that a triggering event had not occurred. While an impairment assessment is performed annually in the fourth quarter, the Company monitors its business environment for potential triggering events on a quarterly basis. There is potential for further impairment charges being recognized in future periods based on these ongoing assessments.

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"INCOME TAXES Spok files a consolidated United States federal income tax return and income tax returns in various state, local and foreign jurisdictions as required. Our quarterly tax provision and our quarterly estimate of our annual effective tax rate are subject to significant variation due to several factors, including variability in accurately predicting our pre-tax and taxable income and loss and the mix of jurisdictions to which they relate, changes in how we do business, changes in our stock price, foreign currency gains (losses), tax law developments (including changes in statutes, regulations, case law, and administrative practices), and relative changes of expenses or losses for which tax benefits are not recognized. Additionally, our effective tax rate can be more or less volatile based on the amount of pre-tax income or loss. For example, the impact of discrete items and non-deductible expenses on our effective tax rate is greater when our pre-tax income is lower. For 2026, the anticipated effective income tax rate is expected to continue to differ from the federal statutory rate of 21%, primarily due to the effect of state income taxes, permanent differences between book and taxable income, and certain discrete items. We had total net deferred income tax assets (""DTAs"") of $35.0 million and $36.5 million as of June 30, 2026, and December 31, 2025, respectively. We had a valuation allowance of $1.9 million as of both June 30, 2026 and December 31, 2025. We asse …

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LEASES We have operating lease arrangements for corporate offices, cellular towers, storage units and small building spaces. The building space is used to house infrastructure, such as transmitters, antennae and other various equipment for the Companys wireless paging services. For leases with a term of 12 months or less, renewal terms are generally of an evergreen nature (either month-to-month or year-to-year). For leases with a term greater than 12 months, renewal terms are generally explicit and provide for one to five optional renewals consistent with the initial term. Many of our leases, with the exception of those for our corporate offices, include options to terminate the lease within one year. Variable lease payments, residual value guarantees or purchase options are not generally present in these leases. Lease costs are included in technology operations and general and administrative expenses in the Condensed Consolidated Statements of Operations. The following table presents lease costs disaggregated by type: For the Three Months Ended June 30, For the Six Months Ended June 30, (Dollars in thousands) 2026 2025 2026 2025 Operating lease cost $ 652 $ 738 $ 1,338 $ 1,502 Short-term lease cost 1,806 1,918 3,689 3,933 Total lease cost $ 2,458 $ 2,656 $ 5,027 $ 5,435 The following table presents supplemental cash flow information: For the Six Months Ended June 30, (Dollars in thousands) 2026 2025 Cash paid for amounts included in the measurement of lease liabilities - ope …

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"Recently issued accounting pronouncements not yet adopted In November 2024, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2024-03, ""Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses,"" requiring public entities to disclose additional information about specific expense categories in the notes to the financial statements. This update is effective for fiscal years beginning after December 15, 2026 and for interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted, and the update may be applied either prospectively or retrospectively. We are currently evaluating the impact the update will have on our consolidated financial statements and related disclosures. We reviewed all other recently issued accounting pronouncements and concluded that they were either not applicable or not expected to have a significant impact to the consolidated financial statements."

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RELATED PARTIES A member of our Board of Directors serves as Executive Vice President and Chief Information Officer for an entity that is also a customer of the Company. For the three months ended June 30, 2026 and 2025, we recognized revenues of $0.4 million and $0.8 million, respectively, related to the contracts from the entity at which the individual is employed. For the six months ended June 30, 2026 and 2025, we recognized revenues of $0.9 million and $1.2 million, respectively, related to contracts from the entity at which the individual is employed. We had no outstanding receivables related to these contracts included in accounts receivable, net on the Condensed Consolidated Balance Sheets as of June 30, 2026 and $0.7 million outstanding as of December 31, 2025. We received $0.6 million in excess of amounts billed, related to contracts from the entity, which is reflected in accounts payable on the Condensed Consolidated Balance Sheet as of June 30, 2026. This excess payment received from the entity will be applied as a credit towards future amounts due under the existing contracts, which are expected to be billed in the third quarter of 2026.

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"REVENUE, DEFERRED REVENUE AND PREPAID COMMISSIONS Wireless Revenue Wireless revenue consists of two primary components: paging revenue and product and other revenue. Paging revenue consists primarily of recurring fees associated with the provision of messaging services and fees for paging devices and is net of a provision for service credits. Product and other revenue reflects system sales, sales of paging devices and charges for devices that are not returned and are net of anticipated credits. Our core offering includes subscriptions to one-way or two-way messaging services for a periodic (monthly, quarterly, semiannual, or annual) service fee. This is generally based upon the type of service provided, the geographic area covered, the number of devices provided to the customer and the period of commitment. A subscriber to one-way messaging services may select coverage on a local, regional or nationwide basis to best meet their messaging needs. Two-way messaging is generally offered on a nationwide basis. See ""Item 1. Business, in the 2025 Annual Report for more details. Software Revenue Software revenue consists primarily of license revenues, including revenues from our perpetual and term software license arrangements, revenue from the sale of hardware that facilitates the use of our software solutions, professional services revenue related to the implementation of our solutions and value-added services, and maintenance and subscription revenue that is generated from the o …

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"SEGMENT INFORMATION FASB Accounting Standards Codification 280, Segment Reporting, establishes standards for reporting information about operating segments. Operating segments are defined as components of a public entity about which separate financial information is available that is evaluated regularly by the chief operating decision maker (CODM), in deciding how to allocate resources and in assessing performance. Our CODM is our Chief Executive Officer. We identify our business as a single segment, clinical communications and collaboration solutions, which includes operating revenues from our wireless and software solutions. The accounting policies of the clinical communications and collaboration solutions segment are the same as those described in the summary of significant accounting policies disclosed in Note 1, Organization and Significant Accounting Policies of the 2025 Annual Report. The CODM evaluates the performance of the clinical communications and collaboration segment based on net income that is also reported on the Condensed Consolidated Statements of Operations as consolidated net income. Significant expenses within net income include cost of revenue, research and development, technology operations, selling and marketing, and general and administrative expenses, which are each separately presented on the Companys Condensed Consolidated Statements of Operations. Other segment items within net income include interest income, other income and provision for incom …

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SIGNIFICANT ACCOUNTING POLICIES Our significant accounting policies are detailed in Note 1, Organization and Significant Accounting Policies of the 2025 Annual Report. …

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"STOCKHOLDERS' EQUITY General Our authorized capital stock consists of 75 million shares of common stock, par value $0.0001 per share, and 25 million shares of preferred stock, par value $0.0001 per share. At June 30, 2026, and December 31, 2025, we had no stock options outstanding. At June 30, 2026, and December 31, 2025, there were 20,905,932 and 20,610,364 shares of common stock outstanding, respectively, and no shares of preferred stock were outstanding. Dividends Cash distributions to stockholders, as disclosed in the Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2026, and 2025, include previously declared cash dividends on shares of vested restricted common stock (""restricted stock"") issued to our non-executive directors and dividends related to vested restricted stock units (""RSUs"") issued to eligible employees. Cash dividends on restricted stock and RSUs have been accrued and are paid when the applicable vesting conditions are met. Accrued cash dividends on forfeited restricted stock and RSUs are also forfeited. The following table details our cash dividends declared and paid in 2026 through the date hereof: (Dollars in thousands) Declaration Date Record Date Payment Date Per Share Amount Total Declared (1) February 25, 2026 March 16, 2026 March 31, 2026 $ 0.3125 $ 6,794 April 29, 2026 May 26, 2026 June 24, 2026 0.3125 6,774 Total $ 0.6250 $ 13,568 (1) The total declared reflects the cash dividends declared in relation to common …

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"SUBSEQUENT EVENTOn June 23, 2026, we entered into an agreement to sell certain narrowband spectrum licenses in our two-way paging inventory to Sensus USA, Inc. for a purchase price of $8.0million. The transaction was approved by the Federal Communications Commission (""FCC"") and closed on July 20, 2026. We expect to recognize a pre-tax gain, net of expenses, within the other income line in the Condensed Consolidated Statements of Operations in the third quarter of 2026."

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