SPOK · Spok Holdings, Inc.

Spok Holdings, Inc. is implementing a strategic realignment aimed at reducing operating expenses and sharpening operational focus. The plan involves an approximate 10% reduction in workforce, which the Company expects will reduce headcount-related expenses and other operating expenses by over $6.0 million on an annualized basis. Management cited shifting customer preferences as a driver for the need to find new ways of driving productivity and efficiency. The Company estimates restructuring charges of approximately $1.6 to $2.0 million, primarily in the form of cash expenditures for one-time employee benefits and severance payments, expected to be substantially complete by the third quarter of 2026. These charges will be excluded from non-GAAP financial measures.

Concurrent with the restructuring, the Board appointed Michael W. Wallace, age 57, to the additional role of Chief Financial Officer, replacing Calvin C. Rice. Mr. Wallace has served as the Company's Chief Operating Officer since January 2020 and previously served as CFO from 2017 to 2022. His prior experience includes roles at Intermedix Corporation, The Elephant Group, and Radiology Corporation of America, as well as serving as an Assistant Chief Accountant in the SEC’s Division of Enforcement. The Company stated it remains committed to returning cash to stockholders, noting the quarterly dividend represents a yield in excess of 10% relative to market.