Phunware Reports First Quarter 2026 Financial Results
Rhea-AI Summary
Phunware (NASDAQ: PHUN) reported Q1 2026 results: revenue $0.5M (down 21% YoY), gross margin 70.8%, net loss $3.2M (improved from $3.7M), and loss per share ($0.16). Cash and equivalents were $97.9M with no debt. Phunware launched two hospitality product tiers, commercially released AI Concierge, continued AI investment, and settled legacy legal proceedings.
AI-generated analysis. Not financial advice.
Positive
- Gross margin improved to 70.8% from 52.2%
- Net loss narrowed to $3.2M from $3.7M
- Cash and cash equivalents of $97.9M with no debt
- Commercial release of AI Concierge and two hospitality product tiers
Negative
- Net revenue declined 21% to $0.5M
- Adjusted EBITDA remained negative at $(3.928M)
- Net cash used in operations of $2.7M in Q1 2026
Key Figures
Market Reality Check
Peers on Argus
PHUN fell about 3.37% while peers were mixed: YXT down 3.53%, MFI down 8.01%, but NTWK and INLX up over 6% each. Momentum scanner shows NTWK and INUV moving up, opposite PHUN, pointing to a stock-specific reaction.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Mar 20 | Q4/FY25 earnings | Neutral | +0.0% | Q4 revenue growth but lower full-year revenue with improved margins and liquidity. |
| Nov 06 | Q3 2025 earnings | Neutral | +0.4% | Slight revenue and margin declines offset by narrower net loss and strong cash. |
| Aug 08 | Q2 2025 earnings | Negative | -2.7% | Revenue decline and larger net loss despite sharply higher gross margin and bookings. |
| May 12 | Q1 2025 earnings | Neutral | +0.6% | Software revenue growth but higher net loss driven by legal costs and investments. |
| Mar 20 | FY 2024 earnings | Positive | +2.1% | Substantial net loss reduction, higher bookings, and significant cash build on balance sheet. |
Earnings releases have generally produced modest single-digit price moves, with a mix of positive and negative reactions and no consistent directional pattern.
Over the last year, Phunware’s earnings updates have highlighted revenue pressure but improving margins, shrinking net losses, and a consistently strong cash balance above $100M. Q1 2025 showed strong software growth but higher losses, while Q2 and Q3 2025 featured revenue declines offset by margin gains and AI-focused product initiatives. Full-year 2024 results emphasized a large reduction in net loss and a major bookings increase. Today’s Q1 2026 results extend the margin and loss improvement trend but with softer revenue.
Historical Comparison
In the past 5 earnings events, PHUN’s average 1-day move was about 0.09%. Today’s -3.37% decline is larger than typical but still within a single-digit range seen around prior mixed earnings updates.
Earnings releases show a shift from FY 2024’s major loss reduction and bookings growth toward 2025 quarters marked by softer revenues but improving margins and narrowed losses, with repeated emphasis on AI-driven hospitality products and strong liquidity.
Market Pulse Summary
This announcement highlights Q1 2026 revenue declining to $0.5M alongside a strong gross margin of 70.8% and an improved net loss of $3.2M. Adjusted EBITDA loss narrowed to ($3.928M), and cash remained sizable at $97.9M, with management emphasizing hospitality products and AI Concierge. Historically, earnings reports have produced relatively small average moves of about 0.09%. Investors may watch future quarters for revenue re-acceleration, sustained margin strength, cash burn trends, and adoption of the new AI-driven offerings.
Key Terms
non-gaap financial measure financial
adjusted ebitda financial
stock-based compensation financial
ebitda financial
AI-generated analysis. Not financial advice.
Management Expected to Host Investor Webinar in Conjunction with Upcoming Product Announcements & Display at HITEC North America 2026, World’s Largest Hospitality Technology Conference
AUSTIN, Texas, May 07, 2026 (GLOBE NEWSWIRE) -- Phunware, Inc. (“Phunware” or the “Company”) (NASDAQ: PHUN), the enterprise cloud platform for mobile-first software products, solutions, data, and services to enable customers to engage, manage, and monetize their global audiences, today reported financial results for the first quarter ended March 31, 2026.
Financial Highlights
- Net revenue decreased
21% to$0.5 million in Q1 2026, as compared to$0.7 million in Q1 2025. - Gross margin improved to
70.8% in Q1 2026, as compared to52.2% in Q1 2025. - Net loss improved to
$3.2 million in Q1 2026, as compared to a net loss of$3.7 million in the previous year period. - Net loss per basic and diluted share was (
$0.16) in Q1 2026, as compared to ($0.18) per basic and diluted share in Q1 2025. - Net cash used in operations decreased to
$2.7 million for the three months ended March 31, 2026, as compared to$3.3 million for the previous year period. - Cash and cash equivalents totaled
$97.9 million as of March 31, 2026.
Recent Business Highlights
- Introduced two hospitality specific products, one for luxury brands and the other for full-service independent property owners, which provide solutions for developing modular, native mobile apps, with cloud-driven updates and a range of solutions for enhancing on-property guest experiences and engagements and ancillary revenue growth.
- Launched a redesigned corporate website and a refined portfolio of products for enhancing hospitality guest-related experiences, engagements and revenues.
- Continued investment in artificial intelligence (“AI”) to employ and integrate within our internal systems and product and services offerings.
- Continued development and release of our AI Concierge product, which is designed to personalize customer guest journeys through real-time wayfinding, Q&A and on-property recommendations.
- Final settlement and dismissal of legacy legal proceedings in early 2026.
Management Commentary
"The first quarter reflects a Company executing with focus and discipline," said Jeremy Krol, Interim CEO of Phunware. "During the quarter, we concentrated on tightening the product foundation that our commercial growth depends on. This included productizing our hospitality offering into two purpose-built tiers, advancing AI Concierge from pilot to commercial release, refining our portfolio to better address the needs of large-scale hospitality and healthcare property customers and ramping up AI-related research and development to evolve our platform and products for the next iteration. We focused on optimizing our product offering in lieu of near-term bookings velocity, and we believe this will position Phunware for higher-quality commercial momentum and ultimately achieving our strategic vision.
"We productized our hospitality product offering into two distinct tiers that address what we believe are the most acute economic challenges facing large-scale hotels and resorts: capturing ancillary guest revenue and operating coherently across complex on-property environments. Research published by our team found that approximately
"Our Luxury Engagement tier delivers fully personalized digital guest experiences anchored by Phunware's deep wayfinding capabilities. It is designed to anticipate guest needs and reinforce premium brand identity at every touchpoint. Our Enriched Experience tier delivers guest engagements through curated digital touchpoints that surface guest services, amenities, events and other on-property discovery. It is designed to extend core services into more dynamic interactions and create new guest revenue opportunities for property operators. Both tiers are designed to deepen guest relationships while expanding monetization for our customers.
"AI Concierge, our generative AI module embedded within Phunware mobile applications, is now commercially available following a successful pilot. Unlike conventional chatbots, AI Concierge is integrated with our proprietary mapping technology, providing context-aware responses and live blue-dot wayfinding directly to rooms or on-property amenities and events. This fusion of conversational AI and spatial intelligence is a meaningful differentiator for Phunware, and we are actively selling this module to new and existing customers. We are taking a measured, customer-collaborative approach to AI platform and product development, focusing on agentic and predictive solutions trained on guest behavior and property data, rather than deploying generic generative features at scale.
"Looking ahead, we are rebuilding our commercial engine around the productized portfolio, with new investment in sales leadership, modernized demand generation, and a tighter focus on the customer profiles where our offering delivers the most measurable value. While our current commercial focus is hospitality, we continue to serve our healthcare customers and view their needs as informing our broader product roadmap and look to expand into other large property-related verticals. We are positioning the Company for renewed bookings momentum as the rebuilt commercial function and productized portfolio come together throughout 2026, and as we advance toward a broader vision for property intelligence that will define our next chapter. With approximately
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 | ||||||||
| Three Months Ended March 31, | ||||||||
| (in thousands) | 2026 | 2025 | ||||||
| Net loss | $ | (3,194 | ) | $ | (3,723 | ) | ||
| Add back: Depreciation | 2 | 4 | ||||||
| Add back: Interest expense | 9 | 9 | ||||||
| Less: Interest income | (857 | ) | (1,119 | ) | ||||
| EBITDA | (4,040 | ) | (4,829 | ) | ||||
| Add back: Stock-based compensation | 112 | 86 | ||||||
| Adjusted EBITDA | $ | (3,928 | ) | $ | (4,743 | ) | ||
About Phunware
Phunware, Inc. (NASDAQ: PHUN) is an enterprise software company specializing in mobile app solutions for hospitality, healthcare and other large property related customers, 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, Inc. Condensed Consolidated Balance Sheets (In thousands, except share and per share information) | ||||||||
| March 31, | December 31, | |||||||
| 2026 | 2025 | |||||||
| Assets: | (Unaudited) | |||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 97,860 | $ | 100,587 | ||||
| Accounts receivable, net of allowance for credit losses of | 474 | 300 | ||||||
| Digital currencies | 73 | 96 | ||||||
| Prepaid expenses and other current assets | 675 | 19,164 | ||||||
| Total current assets | 99,082 | 120,147 | ||||||
| Non-current assets: | ||||||||
| Property and equipment, net | 9 | 11 | ||||||
| Right-of-use asset, net | 477 | 552 | ||||||
| Other assets | 158 | 158 | ||||||
| Total non-current assets | 644 | 721 | ||||||
| Total assets | $ | 99,726 | $ | 120,868 | ||||
| Liabilities and stockholders' equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 2,632 | $ | 1,070 | ||||
| Accrued expenses | 148 | 19,905 | ||||||
| Deferred revenue | 1,515 | 1,386 | ||||||
| Lease liability | 350 | 342 | ||||||
| PhunCoin subscription payable | 1,202 | 1,202 | ||||||
| Total current liabilities | 5,847 | 23,905 | ||||||
| Deferred revenue | 457 | 369 | ||||||
| Lease liability | 187 | 277 | ||||||
| Total noncurrent liabilities | 644 | 646 | ||||||
| Total liabilities | 6,491 | 24,551 | ||||||
| Commitments and contingencies | - | - | ||||||
| Stockholders' equity | ||||||||
| Common stock, | 2 | 2 | ||||||
| Treasury stock | (502 | ) | (502 | ) | ||||
| Additional paid-in capital | 421,650 | 421,538 | ||||||
| Accumulated deficit | (327,915 | ) | (324,721 | ) | ||||
| Total stockholders' equity | 93,235 | 96,317 | ||||||
| Total liabilities and stockholders' equity | $ | 99,726 | $ | 120,868 | ||||
| Phunware, Inc. Condensed Consolidated Statements of Operations (In thousands, except share and per share information) (Unaudited) | ||||||||
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2026 | 2025 | |||||||
| Net revenue | $ | 542 | $ | 688 | ||||
| Cost of revenue | 158 | 329 | ||||||
| Gross profit | 384 | 359 | ||||||
| Operating expenses: | ||||||||
| Sales and marketing | 825 | 896 | ||||||
| General and administrative | 2,703 | 3,464 | ||||||
| Research and development | 878 | 813 | ||||||
| Total operating expenses | 4,406 | 5,173 | ||||||
| Operating loss | (4,022 | ) | (4,814 | ) | ||||
| Other income (expense): | ||||||||
| Interest expense | (9 | ) | (9 | ) | ||||
| Interest income | 857 | 1,119 | ||||||
| Other expense, net | (20 | ) | (19 | ) | ||||
| Total other income, net | 828 | 1,091 | ||||||
| Loss before taxes | (3,194 | ) | (3,723 | ) | ||||
| Income tax benefit (expense) | — | — | ||||||
| Net loss | (3,194 | ) | (3,723 | ) | ||||
| Net loss per share, basic and diluted | $ | (0.16 | ) | $ | (0.18 | ) | ||
| Weighted-average shares used to compute net loss per share, basic and diluted | 20,188,210 | 20,169,640 | ||||||
| Phunware, Inc. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) | ||||||||
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2026 | 2025 | |||||||
| Operating activities | ||||||||
| Net loss | $ | (3,194 | ) | $ | (3,723 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Stock-based compensation | 112 | 86 | ||||||
| Other adjustments | 109 | 132 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (174 | ) | (444 | ) | ||||
| Prepaid expenses and other assets | (11 | ) | (182 | ) | ||||
| Accounts payable and accrued expenses | 305 | 663 | ||||||
| Lease liability payments | (91 | ) | (89 | ) | ||||
| Deferred revenue | 217 | 222 | ||||||
| Net cash used in operating activities | (2,727 | ) | (3,335 | ) | ||||
| Investing activities | ||||||||
| Net cash for investing activities | - | - | ||||||
| Financing activities | ||||||||
| Proceeds from sales of common stock, net of issuance costs | - | 80 | ||||||
| Net cash provided by financing activities | - | 80 | ||||||
| Net change in cash and cash equivalents | (2,727 | ) | (3,255 | ) | ||||
| Cash and cash equivalents at the beginning of the period | 100,587 | 112,974 | ||||||
| Cash and cash equivalents at the end of the period | $ | 97,860 | $ | 109,719 | ||||
| Supplemental disclosure of cash flow information | ||||||||
| Interest paid | $ | 9 | $ | 9 | ||||
