Phunware (PHUN) investor relations material

Executive summary

• Net revenue for Q1 2026 was $0.54 million, down 21.2% year-over-year, driven by lower development fees and advertising revenue.

• Operating loss for Q1 2026 was $4.0 million, an improvement from $4.8 million in Q1 2025, due to reduced operating expenses.

• Net loss narrowed to $3.2 million from $3.7 million year-over-year; net loss per share improved to $(0.16) from $(0.18).

• Cash and cash equivalents stood at $97.9 million as of March 31, 2026, with no debt.

• Management focused on productizing hospitality offerings, advancing AI-driven features, and refining the product portfolio for hospitality and healthcare customers.

Financial highlights

• Gross profit increased 7.0% to $0.38 million, with gross margin rising to 70.8% from 52.2% year-over-year.

• Adjusted EBITDA improved to $(3.9) million from $(4.7) million year-over-year.

• Net cash used in operations decreased to $2.7 million from $3.3 million year-over-year.

• Bookings for Q1 2026 were $92,000, with backlog and deferred revenue totaling $3.6 million.

• Weighted-average shares outstanding: 20.19 million in Q1 2026.

Outlook and guidance

• Management expects continued operating losses and negative cash flows as investments in AI and product development persist.

• Sufficient cash is available to fund operations for at least one year; future capital needs may require additional financing.

• Focus remains on hospitality, with plans to expand into other large property-related verticals and rebuild the commercial engine around a productized portfolio.

• Company expects renewed bookings momentum as commercial function and product portfolio mature throughout 2026.