Spok Holdings, IncSPOK

Spok Holdings, Inc Revenue Disclosure

10-KFiled Feb 26, 20263 min read
REVENUE, DEFERRED REVENUE AND PREPAID COMMISSIONS
Revenue Recognition
Revenues are recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services.
The following table presents our revenues disaggregated by revenue type:
For the Year Ended December 31,
(Dollars in thousands)202520242023
Revenue:
Paging revenue$68,559 $70,958 $73,135 
Product and other revenue3,963 2,565 2,833 
Wireless revenue$72,522 $73,523 $75,968 
License$7,347 $7,648 $8,721 
Professional services - projects15,496 14,616 13,305 
Professional services - managed services6,623 3,259 1,389 
Hardware1,287 1,382 2,675 
Maintenance and subscription36,433 37,225 36,967 
Software revenue$67,186 $64,130 $63,057 
Total revenue$139,708 $137,653 $139,025 
The Company is currently structured as a single operating (and reportable) segment, a clinical communication and collaboration business. Sales are assigned to subsidiaries based on the geographic location of the customer at the signing of a contract. The United States was the only country that accounted for more than 10% of the Company’s total revenue for the years ended December 31, 2025, 2024 and 2023. Revenue generated in the United States and internationally consisted of the following for the periods stated:
 For the Year Ended December 31,
(Dollars in thousands)202520242023
Revenue:
United States$137,004 $134,998 $135,804 
International2,704 2,655 3,221 
Total revenue$139,708 $137,653 $139,025 

Deferred Revenue

Our deferred revenue represents payments made to, or due from, customers in advance of our performance. Deferred revenue that is expected to be recognized as revenue during the next twelve-month period is recorded in deferred revenue and the remaining portion is recorded within other non-current liabilities in the Condensed Consolidated Balance Sheets. Changes in the balance of total deferred revenue are as follows:
For the Year Ended December 31,
(Dollars in thousands)20252024
Balance at beginning of year
$28,939 $26,946 
Additions
69,082 65,575 
Revenue recognized
(66,941)(63,582)
Balance at end of year
$31,080 $28,939 
During the year ended December 31, 2025, the Company recognized $24.3 million of revenue related to amounts deferred as of December 31, 2024.
Prepaid Commissions
Our prepaid commissions represent payments made to employees in advance of our performance on the related underlying contracts. These costs have been incurred directly in relation to obtaining a contract. As such, these costs are amortized over the estimated period of benefit. Changes in the balance of total prepaid commissions are as follows:
For the Year Ended December 31,
(Dollars in thousands)20252024
Balance at beginning of year
$3,322 $2,285 
Additions
4,490 4,235 
Commissions recognized
(4,014)(3,198)
Balance at end of year
$3,798 $3,322 
Prepaid commissions are included within prepaid expenses in the Consolidated Balance Sheets and commissions expense is included within selling and marketing on the Consolidated Statements of Operations.
Remaining Performance Obligations
The balance of consideration allocated to remaining performance obligations at December 31, 2025 was $58.2 million, which excludes $16.1 million of additional transaction value that was deemed cancellable by the customer without significant penalty. We expect to recognize approximately $33.5 million of our remaining performance obligations over the next 12 months and, $13.8 million over the next 13 to 24 months, with the remaining balance recognized thereafter.

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2016Mar 2, 2017

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.

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