|
|
|
|
|||||
|
|
|
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
Recent Business Highlights
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
[email protected]
www.mzgroup.us
Phunware Media Contact:
Joe McGurk, Managing Director
917-259-6895
[email protected]
| 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 | ||||
| Nov-06 | |
| Nov-06 | |
| Nov-06 | |
| Nov-03 | |
| Oct-24 | |
| Oct-22 | |
| Aug-08 | |
| Aug-08 | |
| Aug-08 | |
| Aug-05 | |
| Jul-31 | |
| Jul-28 | |
| Jul-14 | |
| May-23 | |
| May-22 |
Join thousands of traders who make more informed decisions with our premium features. Real-time quotes, advanced visualizations, backtesting, and much more.
Learn more about FINVIZ*Elite