Management Expected to Host Investor Webinar in Conjunction with Upcoming Product Announcements & Display at
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 to 52.2% 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 endedMarch 31, 2026 , as compared to$3.3 million for the previous year period. - Cash and cash equivalents totaled
$97.9 million as ofMarch 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
"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
"AI Concierge, our generative AI module embedded within
"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
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 | ||||||||
| (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’s mission is to achieve unparalleled connectivity and monetization through the widespread adoption of
For more information on
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,
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
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:
949-491-8235
PHUN@mzgroup.us
www.mzgroup.us
Condensed Consolidated Balance Sheets (In thousands, except share and per share information) | ||||||||
| 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 | ||||||
| (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 | ||||
Condensed Consolidated Statements of Operations (In thousands, except share and per share information) (Unaudited) | ||||||||
| Three Months Ended | ||||||||
| 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 | ||||||
Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) | ||||||||
| Three Months Ended | ||||||||
| 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 | ||||
