Phunware(PHUN) - 2025 Q2 - Quarterly Results

Financial and Business Highlights 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] - The company secured $0.6 million in software and subscription bookings in Q2 2025[4] Management Commentary 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] - A major platform update, Map Editor 3.0, was released, representing the largest update to the Multiscreen-as-a-Service platform[5] - Q2 software bookings of $0.6 million were entirely from new customer logos, with four new customers expected to launch next quarter[6] - The company maintains ample liquidity, with the Interim CEO planning capital deployment for organic and inorganic growth[7] Non-GAAP Financial Measures 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] 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 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][13] - 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][16] Financial Statements 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 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 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 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 |