Phunware Reports Second Quarter 2025 Financial Results
MWN-AI** Summary
Phunware, Inc. (NASDAQ: PHUN), a leader in enterprise cloud solutions for mobile applications, has released its financial results for the second quarter of 2025, ending June 30. The company reported a 16% decrease in software subscriptions and services revenue, totaling $0.4 million, while bookings reached $0.6 million, solely from new customer acquisitions. Despite the revenue decline, Phunware showcased a significant improvement in gross margin, which increased by 1,694 basis points to 43.9%, reflecting enhanced operational efficiency. The net loss for Q2 widened slightly to $3.1 million, although the loss per share improved to ($0.16) from ($0.32) a year prior.
Phunware’s operational expenses increased as the company focused on R&D and marketing initiatives, alongside a commitment to feature enhancement and AI integration. Notably, the company introduced hospitality AI features at the Hospitality Industry Technology Exposition and Conference (HITEC®), aiming to enhance mobile interactions within the hospitality sector. The appointment of Jeremy Krol as interim CEO underscores a leadership shift focusing on innovation and customer engagement.
Liquidity remains strong, with Phunware indicating ample resources for continuing technology improvements and corporate initiatives aimed at advancing its integrated AI capabilities. Overall, the company reported a decrease in net cash used in operations for the first half of the year to $6.8 million, down from $8.2 million in 2024.
Management emphasized that the second quarter marked key milestones in product development and customer momentum, as Phunware prepares to launch new AI-driven services in the hospitality and healthcare industries. With plans for ongoing engagement with existing customers and pilot testing of new AI solutions, the company is poised to leverage its technology innovations for future growth.
MWN-AI** Analysis
Phunware, Inc. recently reported its second-quarter financial results for 2025, revealing both challenges and opportunities. Despite a notable 16% decline in software subscriptions and services revenue, totaling $0.4 million, the company's gross margin significantly improved to 43.9% from 26.9% year-over-year, indicating enhanced operational efficiency. Additionally, although the net loss widened to $3.1 million, the resulting net loss per share improved, suggesting a positive trajectory in terms of loss containment relative to share dilution.
Investors should take note of the strong liquidity position, with cash and cash equivalents at approximately $106 million, which provides a strong foundation for future growth initiatives. The recent introduction of AI solutions, such as the AI Concierge, positions Phunware at the forefront of technological innovation in the competitive mobile application space, especially targeting the lucrative hospitality and healthcare sectors. This aligns well with modern trends in personalization and automation, crucial for enhancing customer engagement.
Furthermore, Phunware's management has expressed commitment to leveraging AI technologies to unlock additional revenue for their clientele, which could translate into increased demand for their offerings if successful. With the recent appointments and leadership changes, including the interim CEO, it will be essential for investors to monitor the execution of this strategic direction.
Nonetheless, the decline in revenues presents a risk that could impact future investments. Therefore, while there is potential for turnaround, caution is warranted. Investors may consider maintaining a watchful stance on Phunware’s ability to generate consistent revenue growth from its new customer base and to capitalize on its AI initiatives effectively. In conclusion, while the fundamentals indicate potential upside, the execution of promised innovations and customer engagement will ultimately guide the stock's recovery.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Delivers Strong First Half with Key Product Milestones and Customer Momentum
Strong Liquidity Powering New Technology Improvements, AI Integration and Corporate Initiatives
AUSTIN, Texas, Aug. 08, 2025 (GLOBE NEWSWIRE) -- Phunware, Inc. (“Phunware” or the “Company”) (NASDAQ: PHUN), a leader in enterprise cloud solutions for mobile applications, today reported financial results for the second quarter ended June 30, 2025.
Financial Highlights
- Software subscriptions and services revenue decreased 16% to $0.4 million in Q2 2025, as compared to Q2 2024.
- Q2 2025 software and subscription bookings totaled $0.6 million.
- Software subscriptions and services gross margin improved 1,694 basis points to 43.9% in Q2 2025 from 26.9% in Q2 2024.
- Net loss was $3.1 million for the three months ended June 30, 2025, compared to $2.6 million in the previous year period.
- Net loss per share improved to ($0.16) per share in Q2 2025, as compared to ($0.32) per share in Q2 2024.
- Net cash used in operations decreased to $6.8 million for the six months ended June 30, 2025, compared to $8.2 million for the previous year period.
Recent Business Highlights
- Debuted hospitality AI features to streamline mobile interaction at the 2025 Hospitality Industry Technology Exposition and Conference (HITEC®)
- Appointed Mr. Jeremy Krol, the Company’s current Chief Operating Officer, as new Interim CEO.
Management Commentary
“The second quarter of 2025 was highlighted by new product innovation and technology expansion with the highly-anticipated introduction of Phunware AI solutions,” said Jeremy Krol, interim CEO of Phunware. "We are proud to showcase and demo our new AI Concierge product feature and Guest Services Agent product feature at HITEC® in Indianapolis. Although still in development, we believe these product features will help hoteliers unlock additional revenue by utilizing AI in their hospitality applications."
“A release of Map Editor 3.0 provided customers with significant platform upgrades and marks the largest update to our Multiscreen-as-a-Service platform to date. We also deployed 6 updates across our Support & Maintenance mobile applications to improve performance and security across customer installations.
"Second quarter software subscriptions and services revenues of $0.4 million and gross margin of 43.9% were mainly driven by recurring revenue from our existing customers. Software bookings for the second quarter were $0.6 million, all of which represented new customer logos for the Company, as we accelerate our pipeline and simultaneously shorten the sales cycle. We currently have four new customers in development and on track to launch next quarter in the hospitality and healthcare industries.
“Last month, I had the privilege of stepping into the role of Interim CEO after serving as Chief Operating Officer (COO) and fractional COO over the past year. We remain committed to advancing our investment in AI. In the months ahead, we’ll be engaging with existing customers to launch pilot testing programs for our AI Personal Concierge, while also continuing internal development and testing of our Guest Services Agent feature. As we look ahead, our focus is firmly on strengthening our business and sales initiatives around our existing products, where we’re seeing strong momentum—particularly following the success of HITEC. Lastly, Phunware continues to have ample liquidity. In the coming months, I will be working with our board on the deployment of capital for organic and inorganic growth," concluded Krol.
Note about Non-GAAP Financial Measures
A non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with accounting principles generally accepted in the United States of America, or GAAP. Non-GAAP measures are not in accordance with, nor are they a substitute for, GAAP measures. Other companies may use different non-GAAP measures and presentation of results.
In addition to financial results presented in accordance with GAAP, this press release presents adjusted EBITDA, which is a non-GAAP measure. Adjusted EBITDA is determined by taking net loss and adding interest expense (income), income tax expense, depreciation, and further adjusted for non-cash impairment, valuation adjustments and stock-based compensation expense. The company believes that this non-GAAP measure, viewed in addition to and not in lieu of net loss, provides additional information to investors by providing a more focused measure of operating results. This metric is an integral part of the Company’s internal reporting to evaluate its operations and the performance of senior management. A reconciliation of adjusted EBITDA to net loss, the most comparable GAAP measure, is available in the accompanying financial tables below. The non-GAAP measure presented herein may not be comparable to similarly titled measures presented by other companies.
| US-GAAP NET LOSS TO ADJUSTED EBITDA RECONCILIATION (Unaudited) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| (in thousands) | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Net loss | $ | (3,144 | ) | $ | (2,631 | ) | $ | (6,867 | ) | $ | (4,923 | ) | ||||
| Add back: Depreciation | 4 | 4 | 8 | 8 | ||||||||||||
| Add back: Interest expense | 5 | 8 | 14 | 116 | ||||||||||||
| Less: Interest income | (1,094 | ) | (239 | ) | (2,213 | ) | (379 | ) | ||||||||
| EBITDA | (4,229 | ) | (2,858 | ) | (9,058 | ) | (5,178 | ) | ||||||||
| Add back: Stock-based compensation | 118 | 660 | 204 | 1,290 | ||||||||||||
| Less: Gain on extinguishment of debt | - | - | - | (535 | ) | |||||||||||
| Adjusted EBITDA | $ | (4,111 | ) | $ | (2,198 | ) | $ | (8,854 | ) | $ | (4,423 | ) |
About Phunware
Phunware, Inc. (NASDAQ: PHUN) is an enterprise software company specializing in mobile app solutions with integrated intelligent capabilities. We provide businesses with the tools to create, implement, and manage custom mobile applications, analytics, digital advertising, and location-based services. Phunware is transforming mobile engagement by delivering scalable, personalized, and data-driven mobile app experiences.
Phunware’s mission is to achieve unparalleled connectivity and monetization through the widespread adoption of Phunware mobile technologies, leveraging brands, consumers, partners, and market participants. Phunware is poised to expand its software products and services audience through new generative AI products and product enhancements which are in development, utilize and monetize its patents and other intellectual property, and focus on serving its enterprise customers and partners.
For more information on Phunware, please visit www.phunware.com . To better understand and leverage generative AI and Phunware’s mobile app technologies, visit ai.phunware.com .
Safe Harbor / Forward-Looking Statements
This press release includes forward-looking statements. All statements other than statements of historical facts contained in this press release, including statements regarding our future results of operations and financial position, business strategy and plans, and our objectives for future operations, are forward-looking statements. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “will,” and similar expressions are intended to identify forward-looking statements. For example, Phunware is using forward-looking statements when it discusses the adoption and impact of emerging technologies and their use across mobile engagement platforms.
The forward-looking statements contained in this press release are based on our current expectations and beliefs concerning future developments and their potential effects on us. These forward-looking statements involve risks, uncertainties, and other assumptions that may cause actual results to differ materially from those expressed or implied. These risks and uncertainties include, but are not limited to, those factors described under the heading “Risk Factors” in our filings with the SEC. We undertake no obligation to update any forward-looking statements.
By their nature, forward-looking statements involve risks and uncertainties. We caution you that forward-looking statements are not guarantees of future performance and that our actual results may differ materially from those expressed or implied by these forward-looking statements.
Investor Relations Contact:
Chris Tyson, Executive Vice President
MZ Group - MZ North America
949-491-8235
PHUN@mzgroup.us
www.mzgroup.us
Phunware Media Contact:
Joe McGurk, Managing Director
917-259-6895
PHUN@mzgroup.us
| Phunware, Inc. Condensed Consolidated Balance Sheets (In thousands, except share and per share information) | ||||||||
| June 30, | December 31, | |||||||
| 2025 | 2024 | |||||||
| Assets: | (Unaudited) | |||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 106,264 | $ | 112,974 | ||||
| Accounts receivable, net of allowance for credit losses of $239 and $166 as of June 30, 2025 and December 31, 2024, respectively | 379 | 276 | ||||||
| Digital currencies | 108 | 103 | ||||||
| Prepaid expenses and other current assets | 456 | 406 | ||||||
| Total current assets | 107,207 | 113,759 | ||||||
| Non-current assets: | ||||||||
| Property and equipment, net | 16 | 24 | ||||||
| Right-of-use asset, net | 699 | 840 | ||||||
| Other assets | 158 | 158 | ||||||
| Total non-current assets | 873 | 1,022 | ||||||
| Total assets | $ | 108,080 | $ | 114,781 | ||||
| Liabilities and stockholders' equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 3,573 | $ | 3,754 | ||||
| Accrued expenses | 176 | 148 | ||||||
| Deferred revenue | 885 | 1,034 | ||||||
| Lease liability | 327 | 313 | ||||||
| PhunCoin subscription payable | 1,202 | 1,202 | ||||||
| Total current liabilities | 6,163 | 6,451 | ||||||
| Deferred revenue | 864 | 528 | ||||||
| Lease liability | 453 | 619 | ||||||
| Total noncurrent liabilities | 1,317 | 1,147 | ||||||
| Total liabilities | 7,480 | 7,598 | ||||||
| Commitments and contingencies | - | - | ||||||
| Stockholders' equity | ||||||||
| Common stock, $0.0001 par value, 1,000,000,000 shares authorized; 20,183,043 shares issued and 20,172,913 shares outstanding as of June 30, 2025 and 20,166,665 shares issued and 20,156,535 shares outstanding as of December 31, 2024 | 2 | 2 | ||||||
| Treasury stock | (502 | ) | (502 | ) | ||||
| Additional paid-in capital | 421,287 | 421,003 | ||||||
| Accumulated deficit | (320,187 | ) | (313,320 | ) | ||||
| Total stockholders' equity | 100,600 | 107,183 | ||||||
| Total liabilities and stockholders' equity | $ | 108,080 | $ | 114,781 |
| Phunware, Inc. Condensed Consolidated Statements of Operations (In thousands, except share and per share information) (Unaudited) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Net revenues | $ | 455 | $ | 1,011 | $ | 1,143 | $ | 1,932 | ||||||||
| Cost of revenues | 265 | 541 | 594 | 938 | ||||||||||||
| Gross profit | 190 | 470 | 549 | 994 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Sales and marketing | 690 | 609 | 1,586 | 1,052 | ||||||||||||
| General and administrative | 2,790 | 2,299 | 6,254 | 4,770 | ||||||||||||
| Research and development | 970 | 496 | 1,783 | 980 | ||||||||||||
| Total operating expenses | 4,450 | 3,404 | 9,623 | 6,802 | ||||||||||||
| Operating loss | (4,260 | ) | (2,934 | ) | (9,074 | ) | (5,808 | ) | ||||||||
| Other income (expense): | ||||||||||||||||
| Interest expense | (5 | ) | (8 | ) | (14 | ) | (116 | ) | ||||||||
| Interest income | 1,094 | 239 | 2,213 | 379 | ||||||||||||
| Gain on extinguishment of debt | - | - | - | 535 | ||||||||||||
| Other income, net | 27 | 72 | 8 | 87 | ||||||||||||
| Total other income | 1,116 | 303 | 2,207 | 885 | ||||||||||||
| Loss before taxes | (3,144 | ) | (2,631 | ) | (6,867 | ) | (4,923 | ) | ||||||||
| Income tax expense | - | - | - | - | ||||||||||||
| Net loss | (3,144 | ) | (2,631 | ) | (6,867 | ) | (4,923 | ) | ||||||||
| Net loss per share, basic and diluted | $ | (0.16 | ) | $ | (0.32 | ) | $ | (0.34 | ) | $ | (0.65 | ) | ||||
| Weighted-average shares used to compute net loss per share, basic & diluted | 20,171,639 | 8,299,323 | 20,170,639 | 7,581,774 |
| Phunware, Inc. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) | ||||||||
| Six Months Ended | ||||||||
| June 30, | ||||||||
| 2025 | 2024 | |||||||
| Operating activities | ||||||||
| Net loss | $ | (6,867 | ) | $ | (4,923 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Gain on extinguishment of debt | - | (535 | ) | |||||
| Stock-based compensation | 204 | 1,290 | ||||||
| Other adjustments | 193 | 434 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (126 | ) | (422 | ) | ||||
| Prepaid expenses and other assets | (50 | ) | 81 | |||||
| Accounts payable and accrued expenses | (153 | ) | (3,158 | ) | ||||
| Lease liability payments | (178 | ) | (373 | ) | ||||
| Deferred revenue | 187 | (422 | ) | |||||
| Net cash used in operating activities from continued operations | (6,790 | ) | (8,028 | ) | ||||
| Net cash used in operating activities from discontinued operations | - | (177 | ) | |||||
| Net cash used in operating activities | (6,790 | ) | (8,205 | ) | ||||
| Investing activities | ||||||||
| Net cash for investing activities | - | - | ||||||
| Financing activities | ||||||||
| Proceeds from sales of common stock, net of issuance costs | 80 | 24,640 | ||||||
| Net cash provided by financing activities | 80 | 24,640 | ||||||
| Net (decrease) increase in cash and cash equivalents | (6,710 | ) | 16,435 | |||||
| Cash and cash equivalents at the beginning of the period | 112,974 | 3,934 | ||||||
| Cash and cash equivalents at the end of the period | $ | 106,264 | $ | 20,369 | ||||
| Supplemental disclosure of cash flow information | ||||||||
| Interest paid | $ | 14 | $ | 12 | ||||
| Income taxes paid | $ | 21 | $ | 40 | ||||
| Supplemental disclosures of non-cash financing activities: | ||||||||
| Issuance of common stock upon conversion of the 2022 Promissory Note | $ | - | $ | 4,505 | ||||
| Issuance of common stock for payment of bonuses and consulting fees | $ | - | $ | 35 |
FAQ**
What strategies is Phunware Inc. (PHUN) implementing to address the 16% decrease in software subscriptions and services revenue compared to Q2 2024?
How does the improvement in gross margin to 43.9% for Phunware Inc. (PHUN) reflect on its operational efficiencies and customer engagement strategies?
Can Phunware Inc. (PHUN) provide more details on the customer momentum mentioned and how the four new customers in healthcare and hospitality were acquired?
What specific AI integrations and technology improvements are being prioritized by Phunware Inc. (PHUN) in the upcoming months and how do they align with financial goals?
**MWN-AI FAQ is based on asking OpenAI questions about Phunware Inc. (NASDAQ: PHUN).
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