Phunware Reports Third Quarter 2025 Financial Results
MWN-AI** Summary
Phunware, Inc. (NASDAQ: PHUN), a leader in mobile enterprise solutions, released its third-quarter financial results for 2025, marking a stable period amid strategic advancements. Despite a net revenue decline of 6.5%, totaling $0.6 million compared to $0.7 million in Q3 2024, the company reported a notable improvement in its net loss, which shrank to $2.4 million from $2.8 million year-over-year. This reduction translated to a net loss per share of ($0.12), up from ($0.25) the previous year.
Phunware's gross margin sat at 46.1%, down from 48.4% a year prior, while operational cash usage lessened, demonstrating enhanced liquidity with cash and equivalents amounting to $103.8 million on September 30, 2025. The firm indicated growing customer momentum through a robust sales pipeline, supported by increased investments in marketing and sales after previous cutbacks.
A pivotal highlight is Phunware's advancement of its AI Concierge, an innovative feature aimed at enriching customer engagement by personalizing user experiences within mobile applications. Currently in pilot testing with a hospitality partner, this technology is anticipated to unlock new revenue streams for the company.
Jeremy Krol, the Interim CEO, emphasized the firm's ongoing commitment to AI, stating plans to integrate new functionalities within existing products and explore potential for organic and inorganic growth. The Q3 2025 results reflect Phunware's strategic positioning as it gears up to leverage AI technologies, ultimately aiming to enhance user engagement and strengthen brand monetization strategies. As the company focuses on upcoming product launches and market expansions, its liquidity remains a strategic asset for fulfilling these initiatives.
MWN-AI** Analysis
Phunware, Inc.'s recent third-quarter results for 2025 reveal both challenges and opportunities for the company moving forward. The 6.5% decrease in net revenue to $0.6 million compared to the previous year might raise concerns among investors; however, the narrowing of net loss to $2.4 million suggests improved operational efficiency. The improved net loss per share, from ($0.25) to ($0.12), indicates a positive trend that could restore investor confidence.
Moreover, Phunware's robust liquidity position—with cash and cash equivalents amounting to $103.8 million—positions it well to fund ongoing product development, particularly in AI technologies. The introduction of the AI Concierge, currently in pilot testing with hospitality partners, could potentially enhance customer engagement and drive future revenue. If successful, this could not only contribute to revenue growth but also improve overall brand loyalty in the hospitality sector.
Additionally, the company’s strategic investments in sales and marketing that have seen a return to pre-2024 levels signify a commitment to capturing market share. With a focus on enhancing its AI offerings, Phunware could differentiate itself in a competitive landscape.
However, potential investors should remain cautious. Revenue decline, although partially offset by decreasing operational cash usage, could indicate market pressures or product adoption challenges. Monitoring customer uptake of the new AI integrations will be crucial in evaluating Phunware’s ability to turn these innovations into financial success.
In summary, while immediate revenue challenges resurface, Phunware's actions towards AI development, coupled with strong liquidity and an expanding sales pipeline, present a potentially opportunistic entry point for investors, especially those keen on tech-driven hospitality solutions. Investors should keep a close watch on fourth-quarter results as AI deployments and customer feedback may significantly influence market perceptions moving forward.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Consistent Product Revenue, Customer Momentum and Strong Liquidity Positioning the Company for New AI Technology Integration and Corporate Initiatives
AUSTIN, Texas, Nov. 06, 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 reported financial results for the third quarter ended September 30, 2025.
Financial Highlights
- Net revenue decreased 6.5% to $0.6 million in Q3 2025, as compared to $0.7 million in Q3 2024.
- Gross margin was 46.1% in Q3 2025, as compared to 48.4% in Q3 2024.
- Net loss improved to $2.4 million for the three months ended September 30, 2025, as compared to $2.8 million in the previous year period.
- Net loss per share improved to ($0.12) in Q3 2025, as compared to ($0.25) per share in Q3 2024.
- Net cash used in operations decreased to $9.3 million for the nine months ended September 30, 2025, as compared to $10.6 million for the previous year period.
- Cash and cash equivalents of $103.8 million at September 30, 2025.
Recent Business Highlights
- Appointed Mr. Jeremy Krol as Interim CEO and to the Board of Directors.
- Announced December 17, 2025, as the date for its 2025 Annual Meeting of Stockholders, with October 23, 2025, set as the record date for stockholders entitled to vote.
- Forward momentum continues as sales pipeline opportunities created increased quarter over quarter.
- Continued advancement of AI Concierge, a context-aware agent that personalizes the guest journey through real-time wayfinding, Q&A, and on-property recommendations - currently in pilot testing with a trusted hospitality partner.
- Investments in sales and marketing increased from our pullback in 2024, including investing in brand & performance marketing spending, a new website expected to launch in Q4 2025 and the addition of senior marketing and product leadership as we continue to focus on the hospitality and healthcare sectors.
Management Commentary
“The third quarter of 2025 was underscored by progress toward the launch of our new AI Concierge product and steady revenue as we continue to advance our investment in AI,” said Jeremy Krol, Interim CEO of Phunware. “Earlier this year we announced our new AI Concierge product feature and Guest Services Agent product with features to help hoteliers unlock additional revenue by utilizing AI in their hospitality applications. AI Concierge functionalities will serve as a human-like interface in our mobile apps for customers to enhance customer engagement with users, providing customers with innovative opportunities to further monetize their products and services with users. We are running an AI Concierge pilot testing program with an existing customer in their mobile application and are delighted by the initial positive response. We look forward to measuring its impact on user engagement and customer insights.”
“Looking ahead, we are highly focused on adding more AI-related features and functionalities within our current product offerings and are working with other customers to launch pilot testing programs for our AI Concierge. Our team is continuing internal development and testing of our Guest Services Agent to provide information and book reservations at restaurants located on customer properties. Expanding business and sales initiatives, including new sales consultants, are ramping momentum in our existing products and building interest in our upcoming AI features and functionalities. To support our strategy, we continue to have ample liquidity to invest in our product development and sales initiatives, as well as 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 September 30, | Nine Months Ended September 30, | |||||||||||||||
| (in thousands) | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Net loss | $ | (2,409 | ) | $ | (2,760 | ) | $ | (9,276 | ) | $ | (7,683 | ) | ||||
| Add back: Depreciation | 3 | 4 | 11 | 12 | ||||||||||||
| Add back: Interest expense | 9 | 10 | 23 | 126 | ||||||||||||
| Less: Interest income | (1,077 | ) | (381 | ) | (3,290 | ) | (760 | ) | ||||||||
| EBITDA | (3,474 | ) | (3,127 | ) | (12,532 | ) | (8,305 | ) | ||||||||
| Add back: Stock-based compensation | 134 | 242 | 338 | 1,532 | ||||||||||||
| Less: Gain on extinguishment of debt | - | - | - | (535 | ) | |||||||||||
| Adjusted EBITDA | $ | (3,340 | ) | $ | (2,885 | ) | $ | (12,194 | ) | $ | (7,308 | ) | ||||
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 .
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 uses 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) | ||||||||
| September 30, | December 31, | |||||||
| 2025 | 2024 | |||||||
| Assets: | (Unaudited) | |||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 103,783 | $ | 112,974 | ||||
| Accounts receivable, net of allowance for credit losses of $113 and $166 as of September 30, 2025 and December 31, 2024, respectively | 350 | 276 | ||||||
| Digital currencies | 127 | 103 | ||||||
| Prepaid expenses and other current assets | 583 | 406 | ||||||
| Total current assets | 104,843 | 113,759 | ||||||
| Non-current assets: | ||||||||
| Property and equipment, net | 13 | 24 | ||||||
| Right-of-use asset, net | 626 | 840 | ||||||
| Other assets | 158 | 158 | ||||||
| Total non-current assets | 797 | 1,022 | ||||||
| Total assets | $ | 105,640 | $ | 114,781 | ||||
| Liabilities and stockholders' equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 3,177 | $ | 3,754 | ||||
| Accrued expenses | 152 | 148 | ||||||
| Deferred revenue | 1,290 | 1,034 | ||||||
| Lease liability | 335 | 313 | ||||||
| PhunCoin subscription payable | 1,202 | 1,202 | ||||||
| Total current liabilities | 6,156 | 6,451 | ||||||
| Deferred revenue | 793 | 528 | ||||||
| Lease liability | 366 | 619 | ||||||
| Total noncurrent liabilities | 1,159 | 1,147 | ||||||
| Total liabilities | 7,315 | 7,598 | ||||||
| Commitments and contingencies | - | - | ||||||
| Stockholders' equity | ||||||||
| Common stock, $0.0001 par value, 1,000,000,000 shares authorized; 20,197,456 shares issued and 20,187,326 shares outstanding as of September 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 | 421,421 | 421,003 | ||||||
| Accumulated deficit | (322,596 | ) | (313,320 | ) | ||||
| Total stockholders' equity | 98,325 | 107,183 | ||||||
| Total liabilities and stockholders' equity | $ | 105,640 | $ | 114,781 | ||||
| Phunware, Inc. Condensed Consolidated Statements of Operations (In thousands, except share and per share information) (Unaudited) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Net revenue | $ | 622 | $ | 665 | $ | 1,765 | $ | 2,597 | ||||||||
| Cost of revenue | 335 | 343 | 929 | 1,281 | ||||||||||||
| Gross profit | 287 | 322 | 836 | 1,316 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Sales and marketing | 800 | 619 | 2,386 | 1,671 | ||||||||||||
| General and administrative | 2,308 | 2,281 | 8,562 | 7,051 | ||||||||||||
| Research and development | 679 | 612 | 2,462 | 1,592 | ||||||||||||
| Total operating expenses | 3,787 | 3,512 | 13,410 | 10,314 | ||||||||||||
| Operating loss | (3,500 | ) | (3,190 | ) | (12,574 | ) | (8,998 | ) | ||||||||
| Other income (expense): | ||||||||||||||||
| Interest expense | (9 | ) | (10 | ) | (23 | ) | (126 | ) | ||||||||
| Interest income | 1,077 | 381 | 3,290 | 760 | ||||||||||||
| Gain on extinguishment of debt | - | - | - | 535 | ||||||||||||
| Other income, net | 23 | 59 | 31 | 146 | ||||||||||||
| Total other income | 1,091 | 430 | 3,298 | 1,315 | ||||||||||||
| Loss before taxes | (2,409 | ) | (2,760 | ) | (9,276 | ) | (7,683 | ) | ||||||||
| Income tax expense | - | - | - | - | ||||||||||||
| Net loss | (2,409 | ) | (2,760 | ) | (9,276 | ) | (7,683 | ) | ||||||||
| Net loss per share, basic and diluted | $ | (0.12 | ) | $ | (0.25 | ) | $ | (0.46 | ) | $ | (0.88 | ) | ||||
| Weighted-average shares used to compute net loss per share, basic & diluted | 20,182,247 | 11,104,174 | 20,174,508 | 8,755,908 | ||||||||||||
| Phunware, Inc. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) | ||||||||
| Nine Months Ended | ||||||||
| September 30, | ||||||||
| 2025 | 2024 | |||||||
| Operating activities | ||||||||
| Net loss | $ | (9,276 | ) | $ | (7,683 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Gain on extinguishment of debt | - | (535 | ) | |||||
| Stock-based compensation | 338 | 1,532 | ||||||
| Other adjustments | 235 | 653 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (71 | ) | (561 | ) | ||||
| Prepaid expenses and other assets | (177 | ) | (2,759 | ) | ||||
| Accounts payable and accrued expenses | (573 | ) | (457 | ) | ||||
| Lease liability payments | (268 | ) | (560 | ) | ||||
| Deferred revenue | 521 | (43 | ) | |||||
| Net cash used in operating activities from continued operations | (9,271 | ) | (10,413 | ) | ||||
| Net cash used in operating activities from discontinued operations | - | (177 | ) | |||||
| Net cash used in operating activities | (9,271 | ) | (10,590 | ) | ||||
| Investing activities | ||||||||
| Net cash for investing activities | - | - | ||||||
| Financing activities | ||||||||
| Proceeds from sales of common stock, net of issuance costs | 80 | 42,193 | ||||||
| Net cash provided by financing activities | 80 | 42,193 | ||||||
| Net (decrease) increase in cash and cash equivalents | (9,191 | ) | 31,603 | |||||
| Cash and cash equivalents at the beginning of the period | 112,974 | 3,934 | ||||||
| Cash and cash equivalents at the end of the period | $ | 103,783 | $ | 35,537 | ||||
| Supplemental disclosure of cash flow information | ||||||||
| Interest paid | $ | 23 | $ | 22 | ||||
| Income taxes paid | $ | 23 | $ | 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**
How does Phunware Inc. PHUN plan to leverage its strong liquidity position to accelerate the development and deployment of its AI Concierge product in the hospitality sector?
In light of the recent decrease in net revenue for Phunware Inc. PHUN, what strategies are being implemented to enhance customer momentum and drive future revenue growth?
Given the improved net loss figures for Phunware Inc. PHUN, what specific corporate initiatives are being prioritized to further enhance operational efficiency and reduce future losses?
What role do you foresee Phunware Inc. PHUN's investments in sales and marketing playing in the successful integration of new AI technologies across existing product offerings?
**MWN-AI FAQ is based on asking OpenAI questions about Phunware Inc. (NASDAQ: PHUN).
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