Phunware (PHUN) came out with a quarterly loss of $0.16 per share versus the Zacks Consensus Estimate of a loss of $0.15. This compares to a loss of $0.32 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -6.67%. A quarter ago, it was expected that this company would post a loss of $0.12 per share when it actually produced a loss of $0.12, delivering no surprise.Over the last four quarters, the company has surpassed consensus EP ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to _______________ Commission file number: 001-37862 PHUNWARE, INC. (Exact name of registrant as specified in its charter) | Delaware | 30-1205798 | | --- | --- | | (State or other jurisdiction of | (I.R.S. Employer | | incorporation or organization) | Identification Number) ...

[Financial and Business Highlights](index=1&type=section&id=Financial%20and%20Business%20Highlights) Phunware's Q2 2025 saw a 16% software revenue decline, improved gross margin, increased net loss, and key AI product and leadership changes Key Financial Metrics | Financial Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Software Subscriptions & Services Revenue | $0.4 million | - | -16% YoY | | Software Subscriptions & Services Gross Margin | 43.9% | 26.9% | +1,694 bps | | Net Loss | $3.1 million | $2.6 million | Increased Loss | | Net Loss Per Share | ($0.16) | ($0.32) | Improved | | Net Cash Used in Operations (H1) | $6.8 million | $8.2 million | Decreased | - Key operational achievements include debuting new hospitality AI features and appointing Jeremy Krol as Interim CEO[4](index=4&type=chunk) - The company secured **$0.6 million** in software and subscription bookings in Q2 2025[4](index=4&type=chunk) [Management Commentary](index=2&type=section&id=Management%20Commentary) Interim CEO Jeremy Krol highlighted AI innovation, Map Editor 3.0 launch, new customer bookings, and strategic capital deployment for growth - The company is advancing AI investments, planning pilot testing for AI Personal Concierge and developing Guest Services Agent features[7](index=7&type=chunk) - A major platform update, **Map Editor 3.0**, was released, representing the largest update to the Multiscreen-as-a-Service platform[5](index=5&type=chunk) - Q2 software bookings of **$0.6 million** were entirely from new customer logos, with four new customers expected to launch next quarter[6](index=6&type=chunk) - The company maintains ample liquidity, with the Interim CEO planning capital deployment for organic and inorganic growth[7](index=7&type=chunk) [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) This section presents Adjusted EBITDA, a non-GAAP measure, showing a Q2 2025 loss of **$4.1 million** and an H1 2025 loss of **$8.9 million** - Adjusted EBITDA is a non-GAAP measure derived from net loss, adjusted for interest, taxes, depreciation, and non-cash items like stock-based compensation[9](index=9&type=chunk) Reconciliation to Adjusted EBITDA (in thousands) | Reconciliation to Adjusted EBITDA (in thousands) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Net loss | $(3,144) | $(2,631) | $(6,867) | $(4,923) | | Adjusted EBITDA | $(4,111) | $(2,198) | $(8,854) | $(4,423) | [About Phunware & Forward-Looking Statements](index=3&type=section&id=About%20Phunware%20%26%20Forward-Looking%20Statements) Phunware, an enterprise mobile app solutions provider, focuses on AI expansion and IP monetization, with forward-looking statements subject to inherent risks - Phunware specializes in enterprise mobile app solutions, strategically expanding software with new generative AI and monetizing its patent portfolio[12](index=12&type=chunk)[13](index=13&type=chunk) - Forward-looking statements regarding future financial position and business strategy are subject to risks and uncertainties that could cause actual results to differ materially[15](index=15&type=chunk)[16](index=16&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) This section presents Phunware's consolidated financial statements, detailing balance sheet, income statement, and cash flow performance for Q2 and H1 2025 [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, Phunware reported **$108.1 million** in total assets, **$106.3 million** in cash, and **$100.6 million** in stockholders' equity Condensed Consolidated Balance Sheet (in thousands) | Balance Sheet Items (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $106,264 | $112,974 | | Total current assets | $107,207 | $113,759 | | Total assets | $108,080 | $114,781 | | Total liabilities | $7,480 | $7,598 | | Total stockholders' equity | $100,600 | $107,183 | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2025 net revenues decreased to **$0.46 million**, operating loss widened to **$4.26 million**, and net loss was **$3.1 million**, or **($0.16)** per share Condensed Consolidated Statements of Operations (in thousands) | Income Statement (in thousands) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Net revenues | $455 | $1,011 | $1,143 | $1,932 | | Gross profit | $190 | $470 | $549 | $994 | | Operating loss | $(4,260) | $(2,934) | $(9,074) | $(5,808) | | Net loss | $(3,144) | $(2,631) | $(6,867) | $(4,923) | | Net loss per share | $(0.16) | $(0.32) | $(0.34) | $(0.65) | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) H1 2025 saw net cash used in operations improve to **$6.8 million**, with minimal financing cash flow and a strong ending cash balance of **$106.3 million** Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow Summary (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(6,790) | $(8,205) | | Net cash provided by financing activities | $80 | $24,640 | | Net (decrease) increase in cash | $(6,710) | $16,435 | | Cash at end of period | $106,264 | $20,369 |

Core Insights - Phunware, Inc. reported strong financial results for Q2 2025, highlighting key product innovations and customer momentum, particularly in AI solutions [1][3] - The company is focused on enhancing its technology offerings and expanding its customer base, especially in the hospitality and healthcare sectors [3][4] Financial Highlights - Software subscriptions and services revenues decreased by 16% to $0.4 million in Q2 2025 compared to Q2 2024 [6] - Gross margin for software subscriptions and services improved significantly by 1,694 basis points to 43.9% in Q2 2025 from 26.9% in Q2 2024 [6] - The net loss for Q2 2025 was $3.1 million, compared to a net loss of $2.6 million in the same period last year, with net loss per share improving to ($0.16) from ($0.32) [6][20] Recent Business Highlights - The introduction of Phunware AI solutions, including the AI Concierge and Guest Services Agent features, is expected to enhance revenue opportunities for hoteliers [3][4] - The release of Map Editor 3.0 represents the largest update to the Multiscreen-as-a-Service platform, providing significant upgrades for customers [3] - The company has four new customers in development, set to launch in the next quarter [4] Management Commentary - The interim CEO, Jeremy Krol, emphasized the commitment to advancing AI investments and engaging with existing customers for pilot testing programs [5] - The company maintains strong liquidity, which will be utilized for both organic and inorganic growth initiatives [5]

Leadership Changes - Jeremy Krol has been appointed as the Interim Chief Executive Officer, replacing Stephen Chen, effective immediately [1] - Rahul Mewawalla has been appointed as Executive Chairman and Chief AI Architect, focusing on strategic and operational matters alongside the interim CEO [2] Leadership Experience - Jeremy Krol has a background in optimizing business operations and leading teams through transitions, previously serving as the fractional Chief Operating Officer and startup advisor [1][3] - Rahul Mewawalla brings extensive experience in technology and business leadership, having held significant roles in various global technology companies and is recognized as a speaker on AI topics [3] Company Strategy - The leadership updates reflect the company's commitment to strengthening its leadership team and advancing its strategic goals, particularly in artificial intelligence [4][5] - Phunware aims to enhance innovation and growth through the new leadership structure, focusing on AI priorities and enterprise activities [4][5] Company Overview - Phunware, Inc. specializes in mobile app solutions with integrated intelligent capabilities, providing tools for businesses to manage custom mobile applications and analytics [6] - The company's mission includes achieving connectivity and monetization through mobile technologies and expanding its audience with a new Generative AI platform [7]

Phunware to Debut Hospitality AI Features to Streamline Mobile Interactions; Joins Industry Leaders in Discussing How Next-Gen Apps Are Redefining Guest Engagement AUSTIN, Texas, May 23, 2025 (GLOBE NEWSWIRE) -- Phunware, Inc. (NASDAQ: PHUN), a leading provider of mobile-first engagement solutions for the hospitality industry, today announced its participation in the 2025 Hospitality Industry Technology Exposition and Conference (HITEC®), taking place June 16–19 at the Indiana Convention Center in Indianapo ...

Core Viewpoint - Phunware (PHUN) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors often adjust their valuations based on earnings estimates, leading to buying or selling actions that affect stock prices [4]. Company Performance Indicators - Phunware is expected to earn -$0.65 per share for the fiscal year ending December 2025, reflecting a year-over-year change of 36.3% [8]. - Over the past three months, the Zacks Consensus Estimate for Phunware has increased by 15.6%, indicating a positive trend in earnings outlook [8]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [7]. - Phunware's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Financial Performance - In Q1 2025, the company reported software and subscriptions bookings of $359,000, a decrease of 40% compared to $597,000 in Q1 2024[78]. - The company's gross profit for Q1 2025 was $359,000, resulting in a gross margin of 52.2%, compared to a gross profit of $524,000 and a gross margin of 56.9% in Q1 2024[85]. - Adjusted gross profit for Q1 2025 was $374,000, with an adjusted gross margin of 54.4%, down from $569,000 and 61.8% in Q1 2024[85]. - The net loss for Q1 2025 was $3,723,000, compared to a net loss of $2,292,000 in Q1 2024[85]. - Total revenue decreased by $0.2 million, or 25.3%, for the three months ended March 31, 2025, primarily due to a decrease in advertising campaigns, partially offset by an increase in software subscriptions and services revenue[102]. - Total gross profit decreased by $0.2 million, or 31.5%, for the three months ended March 31, 2025, primarily due to the revenue changes mentioned above[103]. Revenue Breakdown - Software subscriptions and services revenue increased by $181,000, or 39.9%, while advertising revenue decreased by $414,000, or 88.7%[102]. Operating Expenses - Operating expenses increased by $1.775 million, or 52.2%, for the three months ended March 31, 2025, driven by increases in sales and marketing, general and administrative, and research and development expenses[104]. - Sales and marketing expenses increased by $453,000, or 102.3%, primarily due to increased corporate marketing and sales consultants[105]. - General and administrative expenses increased by $993,000, or 40.2%, mainly due to a rise in professional fees related to litigation[106]. - Research and development expenses increased by $329,000, or 68.0%, primarily due to higher payroll and consulting fees[107]. Cash Flow and Financial Position - As of March 31, 2025, the company held total cash of $109.7 million, all in the United States, while expecting to continue operating losses and negative cash flows[109]. - The company utilized $3.3 million of cash from operating activities during the three months ended March 31, 2025, resulting in a net loss of $3.7 million[117]. - The company may seek additional equity or debt financing in the future to support growth and acquisitions, which could impact its financial condition[113]. Future Plans and Investments - The company plans to develop a new generative AI-driven software development platform aimed at reducing costs and time for creating custom mobile applications[73]. - The company is investing in the expansion of its marketing and sales capabilities globally, as well as in the development of new products and services[77]. - The company is actively utilizing generative AI tools to streamline internal processes and enhance mobile app development efficiency[75]. - The company does not expect to achieve profitability in the near future[77]. Backlog and Revenue Recognition - As of March 31, 2025, the total backlog and deferred revenue amounted to $4,923,000, down from $5,197,000 as of December 31, 2024[78]. - Approximately 52% of the backlog as of March 31, 2025, is expected to be invoiced within the subsequent 12-month period[80]. Accounting Policies and Market Risk - No material changes to critical accounting policies and estimates compared to the previous Annual Report[127]. - The company reported no applicable quantitative and qualitative disclosures about market risk[129].

分组1 - Phunware reported a quarterly loss of $0.12 per share, which aligns with the Zacks Consensus Estimate, showing improvement from a loss of $0.41 per share a year ago [1] - The company posted revenues of $0.69 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 14.67%, but down from $0.92 million year-over-year [2] - Phunware shares have declined approximately 41.7% since the beginning of the year, contrasting with the S&P 500's decline of 3.8% [3] 分组2 - The earnings outlook for Phunware is mixed, with the current consensus EPS estimate for the upcoming quarter at -$0.12 on revenues of $0.7 million, and -$0.48 on revenues of $3.21 million for the current fiscal year [7] - The Zacks Industry Rank for Internet - Software is in the top 39% of over 250 Zacks industries, indicating a favorable industry outlook [8]

[Q1 2025 Financial Results Overview](index=1&type=section&id=Phunware%20Reports%20First%20Quarter%202025%20Financial%20Results) Phunware reported increased software revenue and improved net loss per share in Q1 2025, despite a wider net loss due to one-time legal expenses, maintaining a strong cash position [Financial Highlights](index=1&type=section&id=Financial%20Highlights) Q1 2025 saw a 40% rise in software revenue, a wider net loss due to legal expenses, but improved net loss per share and strong cash reserves Q1 2025 Key Financial Metrics | Metric | Q1 2025 ($) | Q1 2024 ($) | Change | | :--- | :--- | :--- | :--- | | Software Subscriptions & Services Revenue | $0.6 million | $0.43 million (implied) | +40% | | Net Loss | $3.7 million | $2.3 million | +60.9% | | Net Loss Per Share | ($0.18) | ($0.33) | Improved | | Net Cash Used in Operations | $3.3 million | $5.5 million | -40% | | Cash and Cash Equivalents | $109.7 million | N/A | N/A | - The primary driver for the increase in net loss was a **$1.2 million** one-time legal expense related to the Wild Basin litigation bench trial[4](index=4&type=chunk) - Software and subscription bookings for the first quarter totaled **$0.4 million**[4](index=4&type=chunk) [Business Highlights](index=1&type=section&id=Recent%20Business%20Highlights) Phunware expanded its customer base in hospitality and healthcare, while strategically enhancing its board to meet Nasdaq requirements - Added three new customers in the hospitality vertical during Q1 2025[4](index=4&type=chunk) - Secured a new **$0.5 million** booking for a multi-location health care facility early in Q2[4](index=4&type=chunk) - Appointed Quyen Du to the Board of Directors, a 25-year corporate strategy executive, satisfying Nasdaq's audit committee listing requirements[4](index=4&type=chunk) [Management Commentary](index=2&type=section&id=Management%20Commentary) Management emphasized Q1 revenue growth, sales pipeline acceleration, and strategic investments in AI and M&A for long-term growth - Q1 2025 revenues were **$0.7 million** with a gross margin of **52%**, driven by a **40%** increase in Mobile software subscriptions and services[5](index=5&type=chunk) - The company is investing in R&D for generative and agentic AI initiatives, with plans to launch an 'AI Personal Concierge' product in mid-2025[5](index=5&type=chunk) - Strategic priorities include reinforcing core business, identifying high-impact M&A opportunities, driving operational excellence, and enhancing the team with experienced sales, marketing, and technology professionals[5](index=5&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) The company's Q1 2025 financial statements show a slight asset decrease, stable cash, and increased liabilities, reflecting operational shifts [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets slightly decreased to $112.0 million, with cash at $109.7 million and total equity at $103.6 million Balance Sheet Summary (in thousands) | Account | March 31, 2025 (in thousands $) | December 31, 2024 (in thousands $) | | :--- | :--- | :--- | | Cash and cash equivalents | $109,719 | $112,974 | | Total current assets | $111,086 | $113,759 | | Total assets | $112,034 | $114,781 | | Total current liabilities | $7,211 | $6,451 | | Total liabilities | $8,408 | $7,598 | | Total stockholders' equity | $103,626 | $107,183 | [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Q1 2025 net revenues were $0.7 million, resulting in a net loss of $3.7 million, primarily due to higher operating expenses Statement of Operations Summary (in thousands, except per share data) | Metric | Q1 2025 (in thousands $) | Q1 2024 (in thousands $) | | :--- | :--- | :--- | | Net revenues | $688 | $921 | | Gross profit | $359 | $524 | | Total operating expenses | $5,173 | $3,398 | | Operating loss | $(4,814) | $(2,874) | | Net loss | $(3,723) | $(2,292) | | Net loss per share | $(0.18) | $(0.33) | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Q1 2025 net cash used in operations significantly decreased to $3.3 million, with cash and equivalents ending at $109.7 million Cash Flow Summary (in thousands) | Metric | Q1 2025 (in thousands $) | Q1 2024 (in thousands $) | | :--- | :--- | :--- | | Net cash used in operating activities | $(3,335) | $(5,530) | | Net cash provided by financing activities | $80 | $23,204 | | Net (decrease) increase in cash | $(3,255) | $17,633 | | Cash at end of period | $109,719 | $21,567 | [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) This section provides a reconciliation of GAAP net loss to Adjusted EBITDA, a key non-GAAP metric for evaluating operational performance [Reconciliation of Net Loss to Adjusted EBITDA](index=3&type=section&id=US-GAAP%20NET%20LOSS%20TO%20ADJUSTED%20EBITDA%20RECONCILIATION) Adjusted EBITDA for Q1 2025 was a loss of $4.7 million, reconciled from net loss by adjusting for non-cash and non-operating items - Adjusted EBITDA is a non-GAAP measure calculated by taking net loss and adjusting for interest, taxes, depreciation, non-cash impairment, valuation adjustments, and stock-based compensation[7](index=7&type=chunk) Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Line Item | Q1 2025 (in thousands $) | Q1 2024 (in thousands $) | | :--- | :--- | :--- | | Net loss | $(3,723) | $(2,292) | | Add back: Depreciation | $4 | $4 | | Add back: Interest expense | $9 | $108 | | Less: Interest income | $(1,119) | $(140) | | EBITDA | $(4,829) | $(2,320) | | Add back: Stock-based compensation | $86 | $630 | | Less: Gain on extinguishment of debt | $0 | $(535) | | **Adjusted EBITDA** | **$(4,743)** | **$(2,225)** | [Supplementary Information](index=3&type=section&id=Supplementary%20Information) This section provides background on Phunware's business and important disclaimers regarding forward-looking statements [About Phunware](index=3&type=section&id=About%20Phunware) Phunware is an enterprise software company specializing in mobile app solutions, now expanding into generative AI and intellectual property monetization - Phunware specializes in enterprise cloud solutions for mobile applications, providing tools for creation, implementation, and management of custom apps[1](index=1&type=chunk)[10](index=10&type=chunk) - The company is developing a new Generative AI platform and is focused on monetizing its patents and intellectual property[11](index=11&type=chunk)[12](index=12&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Safe%20Harbor%20%2F%20Forward-Looking%20Statements) The report contains forward-looking statements subject to risks and uncertainties, with no obligation for the company to update them - The report includes forward-looking statements concerning future operations and financial position, which are not guarantees of future performance[13](index=13&type=chunk)[15](index=15&type=chunk) - Actual results may differ materially from those expressed due to various risks and uncertainties, including those described under "Risk Factors" in SEC filings[14](index=14&type=chunk)