Phunware(PHUN) - 2025 Q3 - Quarterly Results

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]