Phunware (PHUN) investor relations material

Executive summary

• Net revenue for Q2 2026 increased 75.6% year-over-year to $0.8 million, driven by a customer-initiated early contract termination, with software subscriptions and services comprising 93.5% of total revenue.

• Gross profit rose 190.0% year-over-year to $0.6 million, with gross margin improving to 69.0% from 41.8% in Q2 2025.

• Operating expenses increased 48.3% year-over-year, primarily due to higher marketing, legal, and R&D costs, resulting in an operating loss of $6.0 million for the quarter.

• Net loss for Q2 2026 was $5.2 million, compared to $3.1 million in Q2 2025.

• Leadership changes included the appointment of a new CEO and senior sales executives to drive the next phase of growth and execute the 2.0 Strategy.

Financial highlights

• Q2 2026 net revenue: $0.8 million (up 75.6% YoY); six-month revenue: $1.3 million (up 17.3% YoY).

• Gross margin improved to 69.0% in Q2 2026 from 41.8% in Q2 2025; six-month gross margin rose to 69.7% from 48.0% year-over-year.

• Net loss widened to $5.2 million ($0.26/share) in Q2 2026 from $3.1 million ($0.16/share) in Q2 2025; six-month net loss was $8.4 million.

• Adjusted EBITDA loss was $5.5 million in Q2 2026; adjusted gross margin: 71.0%.

• Cash and cash equivalents totaled $92.1 million as of June 30, 2026, with no debt.

Outlook and guidance

• Management expects continued operating losses and negative cash flows as investments in AI, product development, and sales expansion continue.

• No profitability is expected in the near term; focus remains on long-term growth and enterprise value.

• The company remains focused on executing its 2.0 Strategy, investing in product innovation and expanding into adjacent markets such as healthcare.