About this content About Angela Harmantas Angela Harmantas is an Editor at Proactive. She has over 15 years of experience covering the equity markets in North America, with a particular focus on junior resource stocks. Angela has reported from numerous countries around the world, including Canada, the US, Australia, Brazil, Ghana, and South Africa for leading trade publications. Previously, she worked in investor relations and led the foreign direct investment program in Canada for the Swedish government ...

About this content About Angela Harmantas Angela Harmantas is an Editor at Proactive. She has over 15 years of experience covering the equity markets in North America, with a particular focus on junior resource stocks. Angela has reported from numerous countries around the world, including Canada, the US, Australia, Brazil, Ghana, and South Africa for leading trade publications. Previously, she worked in investor relations and led the foreign direct investment program in Canada for the Swedish government ...

Core Viewpoint - Phunware has introduced a redesigned corporate website and a refined product portfolio aimed at enhancing guest experiences in the hospitality sector, focusing on luxury brands and full-service property owners [1][2][3] Group 1: Product Offerings - The company launched two hospitality-specific products: the Luxury Engagement product for premium brands and the Enriched Experience product for full-service properties, both designed to enhance guest engagement and revenue [3][5] - The Luxury Engagement product provides personalized digital experiences and utilizes advanced wayfinding capabilities to improve guest interactions and brand loyalty [5] - The Enriched Experience product aims to elevate guest engagement through curated exploration of property amenities and services, driving additional revenue opportunities [5] Group 2: Market Strategy - Phunware's strategy focuses on leveraging its platform to transform the economics of large hotels and resorts, aiming for significant increases in ancillary revenue through enhanced guest engagement [4][6] - The company reports guest app adoption rates exceeding 70% at properties using its hospitality software, indicating a strong level of engagement that can convert traditional stays into high-margin digital marketplaces [6] Group 3: Company Vision and Future - Phunware's mission is to achieve unparalleled connectivity and monetization through the adoption of its mobile technologies, with plans to expand its audience through new generative AI products and enhancements [8] - The company emphasizes its commitment to addressing friction in guest experiences, which is seen as a major challenge in the hospitality industry [6]

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Seasoned Finance Executive and Strategic Technology Advisor toGuide Board Strategy Technology and Customer Initiatives AUSTIN, Texas, Dec. 23, 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 announced the election of Ed Lu to the Company’s Board of Directors at the Company’s Annual Meeting of Stockholders held o ...

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Core Viewpoint - Phunware, Inc. has appointed Elliot Han as Chairperson of the Board of Directors and Chairperson of the Audit Committee, effective October 2025, to guide the company's strategy and growth initiatives [1][6]. Group 1: Leadership Appointment - Elliot Han has been a Class II non-employee Director on Phunware's Board since January 2024 and will continue to chair the Compensation Committee [2]. - Han has extensive experience in corporate finance, strategy, and digital assets, having held senior roles at major financial institutions such as Cantor Fitzgerald, the New York Stock Exchange, and Goldman Sachs [4]. Group 2: Professional Background - Since February 2025, Han has served as Chief Investment Officer of C1 Fund Inc., focusing on investments in private digital asset services and technology companies [3]. - He is also a Partner at PGP Capital Advisors, a firm specializing in technology and digital asset sectors [3]. - Han holds degrees from prestigious institutions, including a B.A. from Columbia University, a Master's from Oxford University, and law and M.A. degrees from Cambridge University [5]. Group 3: Company Overview - Phunware, Inc. is an enterprise software company that specializes in mobile app solutions, providing tools for businesses to create and manage custom mobile applications, analytics, and digital advertising [6][7]. - The company's mission is to enhance connectivity and monetization through the adoption of its mobile technologies, focusing on serving enterprise customers and partners [7].

Core Insights - Phunware, Inc. is a technology company providing an integrated enterprise cloud platform for mobile applications, but it faces challenges in capital efficiency as indicated by its financial metrics [1] Financial Performance - Phunware's Return on Invested Capital (ROIC) is -17.56%, which is significantly below its Weighted Average Cost of Capital (WACC) of 16.20%, indicating insufficient returns to cover capital costs [2][6] - The ROIC to WACC ratio for Phunware is -1.08, further emphasizing its inefficiency in capital utilization [2] - In contrast, Remark Holdings, Inc. has a positive ROIC of 37.09% against a WACC of 25.14%, resulting in a favorable ROIC to WACC ratio of 1.48, indicating effective capital utilization [3] - Exela Technologies, Inc. demonstrates a ROIC of 52.56% and a WACC of 17.86%, leading to the highest ROIC to WACC ratio of 2.94 among peers, showcasing efficient capital use [4] - Vinco Ventures, Inc. and Camber Energy, Inc. also report negative ROIC to WACC ratios of -0.14 and -1.28, respectively, but Phunware's situation is more concerning due to its significantly negative ROIC [5][6]

Financial Performance - For the three months ended September 30, 2025, the Company reported bookings of $50,476,000, a decrease from $2,222,000 in the same period of 2024[91]. - The gross profit for the three months ended September 30, 2025, was $287,000, resulting in a gross margin of 46.1%, compared to a gross profit of $322,000 and a gross margin of 48.4% in the same period of 2024[96]. - Adjusted gross profit for the three months ended September 30, 2025, was $303,000, with an adjusted gross margin of 48.7%, compared to $373,000 and 56.1% in the same period of 2024[99]. - The net loss for the three months ended September 30, 2025, was $(2,409,000), an improvement from a net loss of $(2,760,000) in the same period of 2024[96]. - Net revenue decreased by $43,000, or 6.5%, to $622,000 for the three months ended September 30, 2025, compared to $665,000 in 2024[112]. - Total gross profit decreased by $35,000, or 10.9%, to $287,000 for the three months ended September 30, 2025, compared to $322,000 in 2024[114]. - Total gross profit decreased by $480,000, or 36.5%, to $836,000 for the nine months ended September 30, 2025, compared to $1,316,000 in 2024[116]. Revenue Breakdown - Software subscriptions and services revenue decreased by $18,000, or 3.9%, to $446,000 for the three months ended September 30, 2025, compared to $464,000 in 2024[112]. - Advertising revenue decreased by $25,000, or 12.4%, to $176,000 for the three months ended September 30, 2025, compared to $201,000 in 2024[112]. - Software subscriptions and services gross margin decreased to 38.1% for the three months ended September 30, 2025, compared to 41.8% in 2024[114]. Operating Expenses - Operating expenses increased by $275,000, or 7.8%, to $3,787,000 for the three months ended September 30, 2025, compared to $3,512,000 in 2024[117]. - Sales and marketing expense increased by $181,000, or 29.2%, to $800,000 for the three months ended September 30, 2025, compared to $619,000 in 2024[118]. - Research and development expense increased by $67,000, or 10.9%, to $679,000 for the three months ended September 30, 2025, compared to $612,000 in 2024[122]. - Total operating expenses increased by $3,096,000, or 30.0%, to $13,410,000 for the nine months ended September 30, 2025, compared to $10,314,000 in 2024[117]. Cash Flow and Capital - As of September 30, 2025, the company held total cash of $103.8 million, all in the United States, while continuing to experience operating losses and negative cash flows[126]. - The company utilized $9.3 million in cash from operating activities during the nine months ended September 30, 2025, resulting in a net loss of $9.3 million, which included non-cash charges of $0.6 million[134]. - In comparison, during the same period in 2024, the company used $10.6 million in cash from operating activities, leading to a net loss of $7.7 million[135]. - Management believes it has sufficient cash on hand for at least one year following the filing date of the Quarterly Report despite anticipated operating losses[129]. - The company expects future capital requirements to depend on growth pace, subscription renewals, and investments in AI technology and infrastructure, indicating potential future acquisitions[130]. AI Investments - The Company is investing in artificial intelligence (AI) technologies, including generative AI and agentic AI, to enhance mobile app development and customer engagement[82][88]. - The AI Concierge feature is currently in pilot testing with existing customers, aimed at improving user engagement and monetization opportunities[86]. - The Guest Services Agent feature, designed for hospitality applications, is still in development and testing phases[87]. - The Company does not expect to be profitable in the near future but plans to continue investing in product development and market expansion[89]. Backlog and Deferred Revenue - As of September 30, 2025, the backlog was $2,687,000, down from $3,635,000 as of December 31, 2024, while deferred revenue increased to $2,083,000 from $1,562,000[91]. - Approximately 48% of the backlog as of September 30, 2025, is expected to be invoiced in the subsequent 12-month period[90]. Other Income - Other income for the three months ended September 30, 2025, was approximately $1.1 million, compared to $0.4 million for the same period in 2024, primarily due to interest income from cash and cash equivalents[124]. - For the nine months ended September 30, 2025, total other income was approximately $3.3 million, up from $1.3 million in 2024, driven by increased interest income and a prior gain on extinguishment of debt[125]. Financing Activities - The company sold 14,210 shares of common stock under its Equity Distribution Agreement with Canaccord for gross cash proceeds of approximately $0.1 million during the nine months ended September 30, 2025[128]. - Financing activities in the nine months ended September 30, 2025, included various sales of common stock, with net cash provided by financing activities amounting to $80 thousand[132]. - The company did not engage in any investing activities during the nine months ended September 30, 2025, and 2024[137].

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