As covered in our initiation on the name, Spok Holdings trades at a “no-growth” multiple due to screening like a slow-growth dividend payer — trading more like a bond proxy than a growth stock. But beneath that defensive profile lies a cash engine that would look familiar to any private equity investor: high recurring revenue, low churn, minimal capital intensity, and a clean balance sheet. Those ingredients raise an intriguing question: could a leveraged take-private make sense here, and if so, what would that imply for public shareholders?
Spok’s 2025 guidance sketches a business that throws off real, repeatable cash. Adjusted EBITDA is pegged at roughly $28.5–$32.5M, with FCF expected around $25–$29M — all while carrying no debt and only modest capex in the low single-digit millions. ~80% of total revenue is recurring, drawn from wireless subscriptions and software maintenance fees that renew with tight churn metrics.
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