Phunware (NASDAQ: PHUN) posts Q1 2026 loss with $97.9M cash
Rhea-AI Filing Summary
Phunware reported mixed first-quarter 2026 results, with lower revenue but improved profitability metrics. Net revenue was $0.5 million, down 21% from $0.7 million a year earlier, while gross margin rose to 70.8% from 52.2%.
The company reduced its net loss to $3.2 million from $3.7 million, and net cash used in operations improved to $2.7 million from $3.3 million. Adjusted EBITDA was a loss of $3.9 million versus a $4.7 million loss in the prior-year quarter. Phunware ended March 31, 2026 with $97.9 million in cash and cash equivalents and no debt, and highlighted new hospitality-focused products, its AI Concierge solution, and the final settlement and dismissal of legacy legal proceedings.
Positive
- None.
Negative
- None.
Insights
Phunware’s Q1 shows shrinking revenue but higher margins, ample cash, and ongoing investment in hospitality and AI.
Net revenue fell to $0.5 million, a 21% decline year over year, underscoring a very small current commercial base. However, gross margin improved sharply to 70.8% from 52.2%, reflecting a leaner, higher-margin mix and cost controls.
Net loss narrowed to $3.2 million from $3.7 million, and adjusted EBITDA loss improved to $3.9 million from $4.7 million. Operating cash burn decreased to $2.7 million, while cash and cash equivalents remained high at $97.9 million with no debt, providing substantial runway for R&D and sales rebuilding.
Strategically, management emphasized two new hospitality product tiers, commercialization of the AI Concierge module, and continued AI investments. The company also reported final settlement and dismissal of legacy legal proceedings in early 2026. Future filings will clarify whether these initiatives translate into renewed bookings and revenue growth across hospitality and other large-property verticals.
8-K Event Classification
Key Figures
Key Terms
adjusted EBITDA financial
non-GAAP financial measure financial
gross margin financial
deferred revenue financial
ancillary guest revenue financial
AI Concierge technical
Earnings Snapshot
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Current Report on Form 8-K (this “Report”) includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These forward-looking statements are intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this Report, 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,” “would” and similar expressions that convey uncertainty of future events or outcomes are intended to identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.
The forward-looking statements contained in this Report are based on our current expectations and beliefs concerning future developments and their potential effects on us. Future developments affecting us may not be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) and other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those factors described under the heading “Risk Factors” in our filings with the Securities and Exchange Commission (SEC), including our reports on Forms 10-K, 10-Q, 8-K and other filings that we make with the SEC from time to time. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. These risks and others described under “Risk Factors” may not be exhaustive.
By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. We caution you that forward-looking statements are not guarantees of future performance and that our actual results of operations, financial condition and liquidity, and developments in the industry in which we operate may differ materially from those made in or suggested by the forward-looking statements contained in this Report. In addition, even if our results of operations, financial condition and liquidity, and developments in the industry in which we operate are consistent with the forward-looking statements contained in this Report, those results or developments may not be indicative of results or developments in subsequent periods.
Item 2.02 Results of Operations and Financial Condition.
On May 7, 2026, Phunware, Inc. (the “Company,” "we," "us," or "our") issued a press release announcing its financial results for the first quarter ended March 31, 2026. A copy of the press release issued concerning the foregoing results is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.
The information contained herein, including Exhibit 99.1, is furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or subject to the liabilities of that Section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended. The information contained herein and in the accompanying exhibit shall not be incorporated by reference into any filing with the Securities and Exchange Commission made by the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.
The Company is making reference to non-GAAP financial information in the press release. A reconciliation of these non-GAAP financial measures to the nearest comparable GAAP financial measures is contained in the attached Exhibit 99.1 press release.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. |
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Description |
99.1* |
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Press Release dated May 7, 2026 entitled "Phunware Reports First Quarter 2026 Financial Results" |
104 |
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Cover Page Interactive Data File (formatted in Inline XBRL) |
* Furnished herewith
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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Phunware, Inc. |
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Date: |
May 7, 2026 |
By: |
/s/ Jeremy Krol |
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Jeremy Krol |
Phunware Reports First Quarter 2026 Financial Results
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 7, 2026 – 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
Recent Business Highlights
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 35% of guest spending at these properties occurs after check-in, representing a meaningful ancillary guest revenue opportunity that we believe goes largely uncaptured today. By anticipating guest needs and reducing friction at every guest touchpoint, mobile engagements shift the guest experience from reactive to proactive, while growing revenue per guest.
"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 $98 million in cash and cash equivalents and no debt, we have the financial capacity to invest in R&D, intellectual property, and both organic and inorganic growth opportunities to support this transition," 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
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Three Months Ended March 31, |
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(in thousands) |
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2026 |
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2025 |
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Net loss |
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$ |
(3,194 |
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$ |
(3,723 |
) |
Add back: Depreciation |
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2 |
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4 |
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Add back: Interest expense |
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9 |
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9 |
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Less: Interest income |
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(857 |
) |
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(1,119 |
) |
EBITDA |
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(4,040 |
) |
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(4,829 |
) |
Add back: Stock-based compensation |
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112 |
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86 |
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Adjusted EBITDA |
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$ |
(3,928 |
) |
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$ |
(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)
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March 31, |
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December 31, |
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2026 |
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2025 |
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Assets: |
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(Unaudited) |
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Current assets: |
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Cash and cash equivalents |
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$ |
97,860 |
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$ |
100,587 |
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Accounts receivable, net of allowance for credit losses of $113 as of March 31, 2026 and December 31, 2025 |
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474 |
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300 |
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Digital currencies |
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73 |
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96 |
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Prepaid expenses and other current assets |
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675 |
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19,164 |
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Total current assets |
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99,082 |
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120,147 |
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Non-current assets: |
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Property and equipment, net |
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9 |
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11 |
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Right-of-use asset, net |
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477 |
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552 |
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Other assets |
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158 |
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158 |
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Total non-current assets |
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644 |
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721 |
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Total assets |
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$ |
99,726 |
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$ |
120,868 |
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Liabilities and stockholders' equity |
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Current liabilities: |
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Accounts payable |
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$ |
2,632 |
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$ |
1,070 |
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Accrued expenses |
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148 |
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19,905 |
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Deferred revenue |
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1,515 |
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1,386 |
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Lease liability |
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350 |
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342 |
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PhunCoin subscription payable |
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1,202 |
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1,202 |
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Total current liabilities |
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5,847 |
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23,905 |
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Deferred revenue |
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457 |
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369 |
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Lease liability |
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187 |
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277 |
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Total noncurrent liabilities |
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644 |
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646 |
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Total liabilities |
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6,491 |
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24,551 |
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Commitments and contingencies |
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- |
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- |
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Stockholders' equity |
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Common stock, $0.0001 par value, 1,000,000,000 shares authorized; 20,203,596 shares issued and 20,193,466 shares outstanding as of March 31, 2026 and 20,198,290 shares issued and 20,188,160 shares outstanding as of December 31, 2025 |
|
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2 |
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|
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2 |
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Treasury stock |
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(502 |
) |
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(502 |
) |
Additional paid-in capital |
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421,650 |
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421,538 |
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Accumulated deficit |
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(327,915 |
) |
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(324,721 |
) |
Total stockholders' equity |
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93,235 |
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96,317 |
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Total liabilities and stockholders' equity |
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$ |
99,726 |
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$ |
120,868 |
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Phunware, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except share and per share information)
(Unaudited)
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Three Months Ended |
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|||||
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March 31, |
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2026 |
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2025 |
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Net revenue |
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$ |
542 |
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$ |
688 |
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Cost of revenue |
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|
158 |
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|
|
329 |
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Gross profit |
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|
384 |
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359 |
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Operating expenses: |
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|
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Sales and marketing |
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825 |
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896 |
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General and administrative |
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2,703 |
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3,464 |
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Research and development |
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878 |
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813 |
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Total operating expenses |
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4,406 |
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5,173 |
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Operating loss |
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(4,022 |
) |
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(4,814 |
) |
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Other income (expense): |
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Interest expense |
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(9 |
) |
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(9 |
) |
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Interest income |
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857 |
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1,119 |
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Other expense, net |
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(20 |
) |
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(19 |
) |
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Total other income, net |
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828 |
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1,091 |
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Loss before taxes |
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(3,194 |
) |
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(3,723 |
) |
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Income tax benefit (expense) |
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— |
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— |
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Net loss |
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$ |
(3,194 |
) |
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$ |
(3,723 |
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Net loss per share, basic and diluted |
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$ |
(0.16 |
) |
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$ |
(0.18 |
) |
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Weighted-average shares used to compute net loss per share, basic and diluted |
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20,188,210 |
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20,169,640 |
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Phunware, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
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Three Months Ended |
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March 31, |
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2026 |
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2025 |
|
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Operating activities |
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Net loss |
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$ |
(3,194 |
) |
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$ |
(3,723 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
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Stock-based compensation |
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112 |
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86 |
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Other adjustments |
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109 |
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132 |
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Changes in operating assets and liabilities: |
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Accounts receivable |
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(174 |
) |
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(444 |
) |
Prepaid expenses and other assets |
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(11 |
) |
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(182 |
) |
Accounts payable and accrued expenses |
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|
305 |
|
|
|
663 |
|
Lease liability payments |
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(91 |
) |
|
|
(89 |
) |
Deferred revenue |
|
|
217 |
|
|
|
222 |
|
Net cash used in operating activities |
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|
(2,727 |
) |
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(3,335 |
) |
Investing activities |
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Net cash for investing activities |
|
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- |
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- |
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Financing activities |
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Proceeds from sales of common stock, net of issuance costs |
|
|
- |
|
|
|
80 |
|
Net cash provided by financing activities |
|
|
- |
|
|
|
80 |
|
|
|
|
|
|
|
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||
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 |
|
|
|
|
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|
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||
Supplemental disclosure of cash flow information |
|
|
|
|
|
|
||
Interest paid |
|
$ |
9 |
|
|
$ |
9 |
|