About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Seasoned Finance Executive and Strategic Technology Advisor toGuide Board Strategy Technology and Customer Initiatives AUSTIN, Texas, Dec. 23, 2025 (GLOBE NEWSWIRE) -- Phunware, Inc. (“Phunware” or the “Company”) (NASDAQ: PHUN), the enterprise cloud platform for mobile that provides products, solutions, data, and services for brands to engage, manage and monetize global audiences, today announced the election of Ed Lu to the Company’s Board of Directors at the Company’s Annual Meeting of Stockholders held o ...

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The news team covers medium and small-cap markets, as well as blue-chip companies, commodities, and broader investment stories [3] - Proactive's content includes insights across various sectors such as biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3] Group 2 - Proactive is committed to adopting technology to enhance workflows and content production [4] - The company utilizes automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]

Core Viewpoint - Phunware, Inc. has appointed Elliot Han as Chairperson of the Board of Directors and Chairperson of the Audit Committee, effective October 2025, to guide the company's strategy and growth initiatives [1][6]. Group 1: Leadership Appointment - Elliot Han has been a Class II non-employee Director on Phunware's Board since January 2024 and will continue to chair the Compensation Committee [2]. - Han has extensive experience in corporate finance, strategy, and digital assets, having held senior roles at major financial institutions such as Cantor Fitzgerald, the New York Stock Exchange, and Goldman Sachs [4]. Group 2: Professional Background - Since February 2025, Han has served as Chief Investment Officer of C1 Fund Inc., focusing on investments in private digital asset services and technology companies [3]. - He is also a Partner at PGP Capital Advisors, a firm specializing in technology and digital asset sectors [3]. - Han holds degrees from prestigious institutions, including a B.A. from Columbia University, a Master's from Oxford University, and law and M.A. degrees from Cambridge University [5]. Group 3: Company Overview - Phunware, Inc. is an enterprise software company that specializes in mobile app solutions, providing tools for businesses to create and manage custom mobile applications, analytics, and digital advertising [6][7]. - The company's mission is to enhance connectivity and monetization through the adoption of its mobile technologies, focusing on serving enterprise customers and partners [7].

Core Insights - Phunware, Inc. is a technology company providing an integrated enterprise cloud platform for mobile applications, but it faces challenges in capital efficiency as indicated by its financial metrics [1] Financial Performance - Phunware's Return on Invested Capital (ROIC) is -17.56%, which is significantly below its Weighted Average Cost of Capital (WACC) of 16.20%, indicating insufficient returns to cover capital costs [2][6] - The ROIC to WACC ratio for Phunware is -1.08, further emphasizing its inefficiency in capital utilization [2] - In contrast, Remark Holdings, Inc. has a positive ROIC of 37.09% against a WACC of 25.14%, resulting in a favorable ROIC to WACC ratio of 1.48, indicating effective capital utilization [3] - Exela Technologies, Inc. demonstrates a ROIC of 52.56% and a WACC of 17.86%, leading to the highest ROIC to WACC ratio of 2.94 among peers, showcasing efficient capital use [4] - Vinco Ventures, Inc. and Camber Energy, Inc. also report negative ROIC to WACC ratios of -0.14 and -1.28, respectively, but Phunware's situation is more concerning due to its significantly negative ROIC [5][6]

Financial Performance - For the three months ended September 30, 2025, the Company reported bookings of $50,476,000, a decrease from $2,222,000 in the same period of 2024[91]. - The gross profit for the three months ended September 30, 2025, was $287,000, resulting in a gross margin of 46.1%, compared to a gross profit of $322,000 and a gross margin of 48.4% in the same period of 2024[96]. - Adjusted gross profit for the three months ended September 30, 2025, was $303,000, with an adjusted gross margin of 48.7%, compared to $373,000 and 56.1% in the same period of 2024[99]. - The net loss for the three months ended September 30, 2025, was $(2,409,000), an improvement from a net loss of $(2,760,000) in the same period of 2024[96]. - Net revenue decreased by $43,000, or 6.5%, to $622,000 for the three months ended September 30, 2025, compared to $665,000 in 2024[112]. - Total gross profit decreased by $35,000, or 10.9%, to $287,000 for the three months ended September 30, 2025, compared to $322,000 in 2024[114]. - Total gross profit decreased by $480,000, or 36.5%, to $836,000 for the nine months ended September 30, 2025, compared to $1,316,000 in 2024[116]. Revenue Breakdown - Software subscriptions and services revenue decreased by $18,000, or 3.9%, to $446,000 for the three months ended September 30, 2025, compared to $464,000 in 2024[112]. - Advertising revenue decreased by $25,000, or 12.4%, to $176,000 for the three months ended September 30, 2025, compared to $201,000 in 2024[112]. - Software subscriptions and services gross margin decreased to 38.1% for the three months ended September 30, 2025, compared to 41.8% in 2024[114]. Operating Expenses - Operating expenses increased by $275,000, or 7.8%, to $3,787,000 for the three months ended September 30, 2025, compared to $3,512,000 in 2024[117]. - Sales and marketing expense increased by $181,000, or 29.2%, to $800,000 for the three months ended September 30, 2025, compared to $619,000 in 2024[118]. - Research and development expense increased by $67,000, or 10.9%, to $679,000 for the three months ended September 30, 2025, compared to $612,000 in 2024[122]. - Total operating expenses increased by $3,096,000, or 30.0%, to $13,410,000 for the nine months ended September 30, 2025, compared to $10,314,000 in 2024[117]. Cash Flow and Capital - As of September 30, 2025, the company held total cash of $103.8 million, all in the United States, while continuing to experience operating losses and negative cash flows[126]. - The company utilized $9.3 million in cash from operating activities during the nine months ended September 30, 2025, resulting in a net loss of $9.3 million, which included non-cash charges of $0.6 million[134]. - In comparison, during the same period in 2024, the company used $10.6 million in cash from operating activities, leading to a net loss of $7.7 million[135]. - Management believes it has sufficient cash on hand for at least one year following the filing date of the Quarterly Report despite anticipated operating losses[129]. - The company expects future capital requirements to depend on growth pace, subscription renewals, and investments in AI technology and infrastructure, indicating potential future acquisitions[130]. AI Investments - The Company is investing in artificial intelligence (AI) technologies, including generative AI and agentic AI, to enhance mobile app development and customer engagement[82][88]. - The AI Concierge feature is currently in pilot testing with existing customers, aimed at improving user engagement and monetization opportunities[86]. - The Guest Services Agent feature, designed for hospitality applications, is still in development and testing phases[87]. - The Company does not expect to be profitable in the near future but plans to continue investing in product development and market expansion[89]. Backlog and Deferred Revenue - As of September 30, 2025, the backlog was $2,687,000, down from $3,635,000 as of December 31, 2024, while deferred revenue increased to $2,083,000 from $1,562,000[91]. - Approximately 48% of the backlog as of September 30, 2025, is expected to be invoiced in the subsequent 12-month period[90]. Other Income - Other income for the three months ended September 30, 2025, was approximately $1.1 million, compared to $0.4 million for the same period in 2024, primarily due to interest income from cash and cash equivalents[124]. - For the nine months ended September 30, 2025, total other income was approximately $3.3 million, up from $1.3 million in 2024, driven by increased interest income and a prior gain on extinguishment of debt[125]. Financing Activities - The company sold 14,210 shares of common stock under its Equity Distribution Agreement with Canaccord for gross cash proceeds of approximately $0.1 million during the nine months ended September 30, 2025[128]. - Financing activities in the nine months ended September 30, 2025, included various sales of common stock, with net cash provided by financing activities amounting to $80 thousand[132]. - The company did not engage in any investing activities during the nine months ended September 30, 2025, and 2024[137].

Group 1 - Proactive specializes in providing fast, accessible, and actionable business and finance news content to a global investment audience [2][3] - The company focuses on medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - Proactive's news team operates from key finance and investing hubs, including London, New York, Toronto, Vancouver, Sydney, and Perth [2] Group 2 - The company employs technology to enhance workflows and improve content production [4][5] - Proactive utilizes automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]

Financial Performance - Net revenue decreased by 6.5% to $0.6 million in Q3 2025, compared to $0.7 million in Q3 2024[4] - Gross margin was 46.1% in Q3 2025, down from 48.4% in Q3 2024[4] - Net loss improved to $2.4 million in Q3 2025, compared to $2.8 million in the same period last year[4] - Net loss per share improved to ($0.12) in Q3 2025, compared to ($0.25) per share in Q3 2024[4] - Adjusted EBITDA for Q3 2025 was $(3.34) million, compared to $(2.89) million in Q3 2024[7] - Net loss for the nine months ended September 30, 2025, was $9,276 million, compared to a net loss of $7,683 million for the same period in 2024[22] Cash and Liquidity - Cash and cash equivalents totaled $103.8 million as of September 30, 2025[4] - Cash and cash equivalents at the end of the period were $103,783 million, down from $112,974 million at the beginning of the period[22] - Net cash used in operating activities from continued operations was $9,271 million, a decrease from $10,413 million in the prior year[22] - Proceeds from sales of common stock, net of issuance costs, amounted to $80 million, compared to $42,193 million in the previous year[22] - Interest paid during the period was $23 million, slightly up from $22 million in the prior year[22] - Income taxes paid were $23 million, down from $40 million in the previous year[22] - Stock-based compensation for the nine months ended September 30, 2025, was $338 million, a decrease from $1,532 million in the same period of 2024[22] Operating Expenses - Total operating expenses for Q3 2025 were $3.8 million, compared to $3.5 million in Q3 2024[20] Strategic Initiatives - Sales and marketing investments increased following a pullback in 2024, focusing on hospitality and healthcare sectors[4] - The AI Concierge product is currently in pilot testing with a hospitality partner, aimed at enhancing customer engagement[4] - The company continues to focus on adding AI-related features and functionalities to its product offerings[5] Deferred and Payable Accounts - Deferred revenue increased by $521 million, compared to a decrease of $43 million in the prior year[22] - Accounts payable and accrued expenses increased by $573 million, compared to an increase of $457 million in the previous year[22] - Issuance of common stock upon conversion of the 2022 Promissory Note was $4,505 million in the previous year[22]

Core Insights - Phunware, Inc. reported a decrease in net revenue of 6.5% to $0.6 million for Q3 2025 compared to $0.7 million in Q3 2024, while gross margin decreased to 46.1% from 48.4% in the same period [6] - The company is focused on integrating AI technologies into its product offerings, particularly with the launch of the AI Concierge product, which aims to enhance customer engagement in the hospitality sector [4][12] - Phunware's liquidity remains strong with cash and cash equivalents of $103.8 million as of September 30, 2025, allowing for continued investment in product development and sales initiatives [6][4] Financial Highlights - Net loss improved to $2.4 million in Q3 2025 from $2.8 million in Q3 2024, with net loss per share improving to ($0.12) from ($0.25) [6] - Operating expenses increased, with sales and marketing expenses rising to $800,000 in Q3 2025 from $619,000 in Q3 2024 [22] - Adjusted EBITDA for Q3 2025 was ($3.34 million), compared to ($2.89 million) in Q3 2024, indicating ongoing operational challenges despite improvements in net loss [22][8] Recent Business Highlights - The company is advancing its AI Concierge product, currently in pilot testing with positive initial feedback from a hospitality partner [4] - Phunware is expanding its sales initiatives and has appointed Jeremy Krol as Interim CEO, focusing on enhancing its product offerings and customer engagement strategies [6][4] - Investments in sales and marketing have increased, including a new website launch expected in Q4 2025 and the addition of senior marketing and product leadership [6]

Core Insights - Proactive provides fast, accessible, and actionable business and finance news content to a global investment audience [2] - The company focuses on medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - Proactive's news team delivers insights across various sectors including biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3] Technology Adoption - Proactive is committed to adopting technology to enhance workflows and content production [4] - The company utilizes automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]