Phunware Reports Fourth Quarter and Full Year 2025 Financial Results
Rhea-AI Summary
Phunware (NASDAQ: PHUN) reported Q4 2025 revenue of $0.8M, up 33% year-over-year, and Q4 gross margin of 57.7%. Full-year 2025 revenue declined to $2.6M from $3.2M, while FY net loss was $11.4M or ($0.57) per share. Cash and cash equivalents totaled $100.6M at year-end. The company launched two hospitality product tiers, commercially released an AI Concierge after a pilot, and added board and leadership appointments to support its hospitality and AI strategy.
Positive
- Q4 revenue +33% to $0.8M
- Q4 gross margin improved to 57.7% (+3,443 bps YoY)
- FY gross margin +500 bps to 50.6%
- Year-end cash balance of $100.6M
- Commercial launch of AI Concierge after successful pilot
Negative
- FY revenue declined by 18.8% to $2.6M
- FY net loss widened ~10.7% to $11.4M
- Adjusted EBITDA remained negative at $16.1M for FY2025
Key Figures
Market Reality Check
Peers on Argus
PHUN gained 5.88% with elevated volume while sector peers showed mixed, mostly negative moves (e.g., NVNI -6.02%, MFI -4.62%). Momentum scanner only flagged small-cap peers AWRE and INUV moving up, with no clear tie to PHUN’s earnings.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 06 | Q3 2025 earnings | Neutral | +0.4% | Reported softer revenue and margin with smaller net loss and strong cash. |
| Aug 08 | Q2 2025 earnings | Neutral | -2.7% | Mixed quarter with lower software revenue but sharply higher gross margin. |
| May 12 | Q1 2025 earnings | Neutral | +0.6% | Stronger software revenue but higher net loss driven by legal expenses. |
| Mar 20 | FY 2024 results | Positive | +2.1% | Full-year 2024 showed sharply reduced losses and much stronger cash position. |
| Nov 07 | Q3 2024 earnings | Positive | -12.8% | Improved net loss and bookings with higher cash after ATM financing. |
Earnings releases have typically led to modest single-digit moves, often aligning with mixed but improving fundamentals and strong liquidity. Only one recent earnings event showed a sharp negative divergence despite constructive commentary.
Over the last five earnings cycles from Nov 2024 through Nov 2025, Phunware has emphasized improving losses, rising bookings, and a consistently strong cash position (over $100M in several periods) while pivoting toward AI-powered hospitality solutions. Stock reactions have mostly been mild, with small moves around these updates. Today’s Q4/FY25 results continue the theme of margin improvement and liquidity strength while reiterating the AI and hospitality focus, fitting into this ongoing transition narrative.
Historical Comparison
Over the last five earnings releases, PHUN moved an average of -2.46%. Today’s +5.88% reaction to Q4/FY25 results is stronger than typical past earnings-day responses.
Earnings over 2024–2025 show progression from large losses toward improved margins, supported by a strengthening cash balance and a clearer strategic focus on AI-enabled hospitality solutions.
Market Pulse Summary
This announcement highlights mixed but evolving fundamentals: Q4 net revenue rose to $0.8M with gross margin at 57.7%, yet full-year revenue fell to $2.6M and adjusted EBITDA worsened to $(16,147K). A key pillar remains the sizeable $100.6M cash balance and lower operating cash use, supporting investment in AI-driven hospitality products like the AI Concierge. Investors may track future quarters for sustained revenue growth, margin stability, and progress in converting hospitality and healthcare pilots into scalable deployments.
Key Terms
non-gaap financial measure financial
gaap financial
adjusted ebitda financial
AI-generated analysis. Not financial advice.
Evolution to Focus on Hospitality and Related Markets, Steady Product Revenue, Customer Growth and Expanding Leadership Team
Exits FY25 with Strong Cash Position to Accelerate AI Platform and Products and New Corporate Initiatives
AUSTIN, Texas, March 20, 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 fourth quarter and year ended December 31, 2025.
Financial Highlights
- Net revenue increased
33% to$0.8 million in Q4 2025, as compared to$0.6 million in Q4 2024. - Gross margin improved to
57.7% in Q4 2025, as compared to23.3% in Q4 2024, a 3,443 basis point improvement. - Net loss improved to
$2.1 million in Q4 2025, as compared to a net loss of$2.6 million in the previous year period. - Net loss per basic and diluted share was (
$0.11) in Q4 2025, as compared to ($0.15) per basic and diluted share in Q4 2024. - FY 2025 net revenue decreased to
$2.6 million from$3.2 million in FY 2024. - FY 2025 gross margin increased 500 basis points to
50.6% , as compared to45.6% in the prior year period. - FY 2025 net loss was
$11.4 million , or ($0.57) per basic and diluted share, compared to a net loss of$10.3 million , or ($0.94) per basic and diluted share in FY 2024. - Net cash used in operations decreased to
$12.5 million for the year ended December 31, 2025, as compared to$13.3 million for the previous year period. - Cash and cash equivalents totaled
$100.6 million as of December 31, 2025.
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.
- Announced election of Ed Lu to the Board of Directors, bringing financial, strategic and operational leadership experience to guide the Company's finance and technology strategy and customer initiatives.
- Appointed Elliot Han, a director of the Company since 2024 with experience in corporate finance and investments in digital asset companies, as Chairperson of the Board of Directors.
- Appointed Jeremy Krol, our Interim CEO, to the Board of Directors.
Management Commentary
“The decrease of approximately
"We recently introduced two hospitality-specific product tiers designed to align our platform with the distinct needs of different property segments. Our Luxury Engagement tier is built for premium hospitality brands. It delivers fully personalized digital guest experiences anchored by Phunware's deep wayfinding capabilities, serving as a branded, immersive companion for guests throughout the on-property journey. It is designed to anticipate guest needs, enhance discovery, and reinforce the brand's premium identity at every touchpoint. Our Enriched Experience tier is built for full-service independent properties. It delivers guest engagement through curated digital touchpoints that drive on-property discovery and surface amenities and events, extending core services into more intelligent, dynamic guest interactions to create new revenue opportunities for property operators. Both tiers are designed to deepen guest relationships while expanding monetization opportunities for property operators.
"We continue to invest in artificial intelligence across our internal operations and products. We note that IDC, a leading market intelligence provider, estimates that
"We recognize that hospitality brands are built on trust and we are taking a deliberate, collaborative approach on AI development for our products. Rather than deploying simple generative AI features at scale, we are working closely with our customers to develop agentic and predictive guest-focused AI solutions tailored to their immediate operational needs while progressively building more robust language models trained on increasingly complete guest behavior, location intelligence and property data. We believe this measured approach of combining near-term commercial value with longer-term data and model enterprise value and maturity positions us to deliver AI guest experience capabilities that luxury brands and independent property operators can deploy with confidence and their guests will actually use, which in our view is ultimately the threshold that separates AI as a strategic asset from AI as a marketing line item in this vertical. Beyond hospitality, we continue to serve healthcare customers where our wayfinding and mobile engagement capabilities address similar on-property navigation and patient experience challenges, and we see meaningful opportunity to extend our AI-enabled products into that vertical as it matures.
"Looking ahead, we remain deeply committed to executing our transformative approach within the hospitality industry, driving ancillary revenue growth while enhancing guest experiences through smart digital engagement. The hospitality industry is entering a new phase where technology, and AI in particular, is no longer simply an add-on feature, but is evolving to become the core infrastructure for maximizing guest experience and property value, unlocking customer operational efficiencies and revenues and delivering personalized guest experiences at scale. Our continued investment in AI, grounded in real product integration and close customer collaboration, is central to that vision.
"Operationally, we are expanding business and sales initiatives, including new sales and marketing personnel to accelerate momentum for our existing products and drive adoption of our AI Concierge and future AI-enabled capabilities. 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 | ||||||||
| Year Ended December 31, | ||||||||
| (in thousands) | 2025 | 2024 | ||||||
| Net loss | $ | (11,401 | ) | $ | (10,316 | ) | ||
| Add back: Depreciation | 13 | 16 | ||||||
| Add back: Interest expense | 32 | 135 | ||||||
| Less: Interest income | (4,268 | ) | (1,732 | ) | ||||
| Add back: Income tax (benefit) expense | (19 | ) | 41 | |||||
| EBITDA | (15,643 | ) | (11,856 | ) | ||||
| Add back: Stock-based compensation | 455 | 1,656 | ||||||
| Less: Gain on extinguishment of debt | - | (535 | ) | |||||
| Add back: Loss on disposal of subsidiary | - | 418 | ||||||
| Less: Gain on legal settlement | (959 | ) | - | |||||
| Adjusted EBITDA | $ | (16,147 | ) | $ | (10,317 | ) | ||
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. Consolidated Balance Sheets (In thousands, except share and per share information) | ||||||||
| December 31, | December 31, | |||||||
| 2025 | 2024 | |||||||
| Assets: | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 100,587 | $ | 112,974 | ||||
| Accounts receivable, net of allowance for credit losses of | 300 | 276 | ||||||
| Digital currencies | 96 | 103 | ||||||
| Prepaid expenses and other current assets | 19,164 | 406 | ||||||
| Total current assets | 120,147 | 113,759 | ||||||
| Non-current assets: | ||||||||
| Property and equipment, net | 11 | 24 | ||||||
| Right-of-use asset, net | 552 | 840 | ||||||
| Other assets | 158 | 158 | ||||||
| Total non-current assets | 721 | 1,022 | ||||||
| Total assets | $ | 120,868 | $ | 114,781 | ||||
| Liabilities and stockholders' equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 1,070 | $ | 3,754 | ||||
| Accrued expenses | 19,905 | 148 | ||||||
| Deferred revenue | 1,386 | 1,034 | ||||||
| Lease liability | 342 | 313 | ||||||
| PhunCoin subscription payable | 1,202 | 1,202 | ||||||
| Total current liabilities | 23,905 | 6,451 | ||||||
| Deferred revenue | 369 | 528 | ||||||
| Lease liability | 277 | 619 | ||||||
| Total noncurrent liabilities | 646 | 1,147 | ||||||
| Total liabilities | 24,551 | 7,598 | ||||||
| Commitments and contingencies (See Note 7) | - | - | ||||||
| Stockholders' equity | ||||||||
| Common stock, | 2 | 2 | ||||||
| Treasury stock | (502 | ) | (502 | ) | ||||
| Additional paid-in capital | 421,538 | 421,003 | ||||||
| Accumulated deficit | (324,721 | ) | (313,320 | ) | ||||
| Total stockholders' equity | 96,317 | 107,183 | ||||||
| Total liabilities and stockholders' equity | $ | 120,868 | $ | 114,781 | ||||
| Phunware, Inc. Consolidated Statements of Operations and Comprehensive Loss (In thousands, except share and per share information) | ||||||||
| Year Ended | ||||||||
| December 31, | ||||||||
| 2025 | 2024 | |||||||
| Net revenue | $ | 2,553 | $ | 3,189 | ||||
| Cost of revenue | 1,262 | 1,735 | ||||||
| Gross profit | 1,291 | 1,454 | ||||||
| Operating expenses: | ||||||||
| Sales and marketing | 3,352 | 2,605 | ||||||
| General and administrative | 15,295 | 10,473 | ||||||
| Research and development | 3,163 | 2,265 | ||||||
| Total operating expenses | 21,810 | 15,343 | ||||||
| Operating loss | (20,519 | ) | (13,889 | ) | ||||
| Other income (expense): | ||||||||
| Interest expense | (32 | ) | (135 | ) | ||||
| Interest income | 4,268 | 1,732 | ||||||
| Gain on extinguishment of debt | - | 535 | ||||||
| Other income, net | 4,863 | 1,482 | ||||||
| Total other income | 9,099 | 3,614 | ||||||
| Loss before taxes | (11,420 | ) | (10,275 | ) | ||||
| Income tax benefit (expense) | 19 | (41 | ) | |||||
| Net loss | (11,401 | ) | (10,316 | ) | ||||
| Net loss per share, basic and diluted | $ | (0.57 | ) | $ | (0.94 | ) | ||
| Weighted-average shares used to compute net loss per share, basic and diluted | 20,177,806 | 10,972,163 | ||||||
| Phunware, Inc. Consolidated Statements of Cash Flows (In thousands) | ||||||||
| Year Ended | ||||||||
| December 31, | ||||||||
| 2025 | 2024 | |||||||
| Operating activities | ||||||||
| Net loss | $ | (11,401 | ) | $ | (10,316 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Gain on extinguishment of debt | - | (535 | ) | |||||
| Non-cash writeoff of accounts payable | (201 | ) | (1,403 | ) | ||||
| Stock-based compensation | 455 | 1,656 | ||||||
| Other adjustments | (607 | ) | 1,219 | |||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (21 | ) | 130 | |||||
| Prepaid expenses and other assets | (258 | ) | 86 | |||||
| Accounts payable and accrued expenses | (267 | ) | (2,933 | ) | ||||
| Lease liability payments | (360 | ) | (682 | ) | ||||
| Deferred revenue | 193 | (347 | ) | |||||
| Net cash used in operating activities from continued operations | (12,467 | ) | (13,125 | ) | ||||
| Net cash used in operating activities from discontinued operations | - | (177 | ) | |||||
| Net cash used in operating activities | (12,467 | ) | (13,302 | ) | ||||
| Investing activities | ||||||||
| Net cash for investing activities | - | - | ||||||
| Financing activities | ||||||||
| Proceeds from sales of common stock, net of issuance costs | 80 | 122,342 | ||||||
| Net cash provided by financing activities | 80 | 122,342 | ||||||
| Net (decrease) increase in cash and cash equivalents | (12,387 | ) | 109,040 | |||||
| Cash and cash equivalents at the beginning of the period | 112,974 | 3,934 | ||||||
| Cash and cash equivalents at the end of the period | $ | 100,587 | $ | 112,974 | ||||
| Supplemental disclosure of cash flow information | ||||||||
| Interest paid | $ | 32 | $ | 31 | ||||
| Income taxes paid | $ | 25 | $ | 14 | ||||
| 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 were Phunware (PHUN) Q4 2025 revenue and margins?
How did Phunware’s full-year 2025 financials compare to 2024 for PHUN?
What is Phunware’s cash position at year-end 2025 and its significance for PHUN?
What is Phunware’s AI Concierge and is it commercially available for PHUN customers?
What product launches did Phunware announce that could affect PHUN investors?
