Revenue growth remains in a state of contraction with a 21.2% year-over-year decline in 2026Q1, while operating margins remain negative at -7.4% despite recent gross margin volatility.
| Sales/Revenue | 2.41M | 2.55M | 3.19M | 4.83M | 6.52M | 10.64M | 10M | 19.15M | 30.88M | 26.72M | 47.37M |
| Revenue Growth % | -18.57% | -19.94% | -34% | -25.9% | -38.73% | 6.42% | -47.78% | -37.99% | 15.57% | -43.59% | - |
| Cost of Goods Sold | 1.09M | 1.26M | 1.74M | 3.15M | 3.01M | 7.03M | 3.36M | 9.02M | 11.8M | 15.71M | 28.83M |
| COGS % of Revenue | - | 49.43% | 54.41% | 65.11% | 46.19% | 66.05% | 33.57% | 47.1% | 38.22% | 58.81% | 60.86% |
| Gross Profit | 1.32M | 1.29M | 1.45M | 1.69M | 3.51M | 3.61M | 6.64M | 10.13M | 19.08M | 11.01M | 18.54M |
| Gross Margin % | 54.67% | 50.57% | 45.59% | 34.89% | 53.81% | 33.95% | 66.43% | 52.9% | 61.78% | 41.19% | 39.14% |
| Gross Profit Growth % | - | -11.21% | -13.76% | -51.95% | -2.88% | -45.62% | -34.41% | -46.91% | 73.34% | -40.63% | - |
| Operating Expenses | 21.04M | 21.81M | 15.34M | 47.38M | 27.54M | 20.46M | 24.14M | 22.44M | 25.94M | 36.62M | 146.58K |
| OpEx % of Revenue | - | 854.29% | 481.12% | 980.48% | 422.33% | 192.21% | 241.4% | 117.19% | 84.01% | 137.06% | 0.31% |
| Selling, General & Admin | 17.82M | 18.65M | 13.08M | 17.11M | 21.39M | 16.28M | 17.01M | 18.11M | 18.98M | 25.52M | 146.58K |
| SG&A % of Revenue | - | 730.4% | 410.1% | 354.08% | 328.03% | 152.95% | 170.12% | 94.56% | 61.45% | 95.49% | 0.31% |
| Research & Development | 3.23M | 3.16M | 2.27M | 4.45M | 6.15M | 4.18M | 2.63M | 4.33M | 6.96M | 11.11M | 9.88M |
| R&D % of Revenue | - | 123.89% | 71.03% | 92.07% | 94.3% | 39.27% | 26.28% | 22.63% | 22.55% | 41.57% | 20.85% |
| Other Operating Expenses | 0 | 0 | 0 | 25.82M | 0 | 0 | 4.5M | 0 | 0 | -13K | 0 |
| Operating Income | -19.73M | -20.52M | -13.89M | -45.69M | -24.03M | -16.84M | -17.5M | -12.31M | -6.86M | -25.62M | -146.58K |
| Operating Margin % | -819.57% | -803.72% | -435.53% | -945.59% | -368.52% | -158.26% | -174.96% | -64.29% | -22.22% | -95.86% | -0.31% |
| Operating Income Growth % | - | -47.74% | 69.6% | -90.13% | -42.67% | 3.74% | -42.12% | -79.4% | 73.21% | -17375.78% | - |
| EBITDA | -19.72M | -20.51M | -13.87M | -45.61M | -23.98M | -16.61M | -17.34M | -11.98M | -6.43M | -24.18M | 1.69M |
| EBITDA Margin % | -819.07% | -803.21% | -435.03% | -943.85% | -367.75% | -156.03% | -173.43% | -62.58% | -20.82% | -90.48% | 3.56% |
| EBITDA Growth % | -24.72% | -47.81% | 69.58% | -90.18% | -44.41% | 4.26% | -44.72% | -86.42% | 73.41% | -1532.84% | - |
| D&A (Non-Cash Add-back) | 12K | 13K | 16K | 84K | 50K | 238K | 153K | 327K | 434K | 1.44M | 1.83M |
| EBIT | -17.48M | -20.52M | -10.14M | -40.18M | -43.02M | -49.47M | -18.78M | -12.29M | -9.45M | -25.62M | -90.19K |
| Net Interest Income | 3.95M | 4.24M | 1.6M | -1.73M | -2.41M | -4.48M | -3.41M | -581K | -724K | -397K | 0 |
| Interest Income | 4.01M | 4.27M | 1.73M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 60K | 32K | 135K | 1.73M | 2.41M | 4.48M | 3.41M | 581K | 724K | 397K | 0 |
| Other Income/Expense | 8.84M | 9.14M | 3.61M | 3.78M | -21.39M | -37.1M | -4.7M | -554K | -3.31M | -410K | 15.35M |
| Pretax Income | -10.89M | -11.38M | -10.28M | -41.91M | -45.42M | -53.95M | -22.2M | -12.87M | -10.18M | -26.03M | -90.19K |
| Pretax Margin % | -452.47% | -445.83% | -322.2% | -867.45% | -696.53% | -506.89% | -221.95% | -67.19% | -32.95% | -97.4% | -0.19% |
| Income Tax | 19K | 19K | 41K | 29K | 4K | -426K | 2K | 5K | -374K | -88K | 68K |
| Effective Tax Rate % | -0.17% | -0.17% | -0.4% | -0.07% | -0.01% | 0.79% | -0.01% | -0.04% | 3.67% | 0.34% | -75.4% |
| Net Income | -10.91M | -11.4M | -10.32M | -52.78M | -50.89M | -53.52M | -22.2M | -12.87M | -9.8M | -25.94M | -90.19K |
| Net Margin % | -453.26% | -446.57% | -323.49% | -1092.4% | -780.46% | -502.88% | -221.97% | -67.21% | -31.74% | -97.07% | -0.19% |
| Net Income Growth % | 7.13% | -10.52% | 80.46% | -3.72% | 4.91% | -141.1% | -72.47% | -31.3% | 62.21% | -28659.6% | - |
| Net Income (Continuing) | -10.91M | -11.4M | -10.32M | -41.94M | -45.42M | -53.52M | -22.2M | -12.87M | -9.8M | -25.94M | -90.19K |
| Discontinued Operations | 0 | 0 | 0 | -10.84M | -5.47M | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.54 | -0.57 | -0.94 | -22.18 | -25.71 | -35.47 | -25.07 | -17.45 | -19.18 | -52.39 | -2.15 |
| EPS Growth % | 47.62% | 39.36% | 95.76% | 13.73% | 27.52% | -41.48% | -43.67% | 9.02% | 63.39% | -2336.74% | - |
| EPS (Basic) | - | -0.57 | -0.94 | -22.18 | -25.71 | -35.50 | -25.07 | -17.45 | -19.18 | -52.39 | -2.15 |
| Diluted Shares Outstanding | 20.19M | 20.18M | 10.97M | 2.38M | 1.98M | 1.51M | 885.38K | 737.58K | 511.12K | 495.12K | 41.88K |
| Basic Shares Outstanding | 20.19M | 20.18M | 10.97M | 2.38M | 1.98M | 1.51M | 885.38K | 737.58K | 511.12K | 495.12K | 41.88K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - |
Persistent structural operating losses
As indicated by the most recent quarterly data, Phunware's revenue trajectory remains in a state of contraction, with the company reporting a 21.2% year-over-year decline in 2026Q1, highlighting the ongoing difficulty in scaling its core mobile engagement platform within a highly competitive enterprise software landscape.
The persistent volatility in top-line performance suggests that the company is struggling to secure consistent, recurring revenue streams. This downward trend may imply that legacy contracts are rolling off faster than new business can be onboarded, raising questions about the long-term viability of the current sales pipeline.
Based on the provided financial statements, Phunware's gross margins have exhibited significant volatility, fluctuating from a low of 23.3% in 2024Q4 to a recent peak of 70.8% in 2026Q1, which likely reflects the inconsistent mix between high-margin software licensing and lower-margin hardware-related project work.
This margin instability suggests that the company lacks a predictable, software-dominant revenue base, making it difficult to forecast future profitability. Investors should monitor whether the recent improvement in gross margin is a sustainable shift toward software or merely a temporary byproduct of project-based revenue recognition.
According to the income statement history, Phunware continues to face extreme operating leverage challenges, as SG&A expenses frequently dwarf gross profit, resulting in consistent operating losses that reached $4.0 million in 2026Q1 despite the company's efforts to maintain its core mobile-as-a-service infrastructure.
The inability to scale operating income faster than gross profit indicates that the company's current cost structure is fundamentally misaligned with its revenue generation capacity. This suggests that significant overhead reductions or a massive increase in top-line scale are required to reach a break-even point.
Analysis of the reported figures reveals that earnings quality is heavily influenced by non-cash items, specifically stock-based compensation which reached as high as $660,000 in 2024Q2, effectively masking the true cash-based operational burn rate that shareholders must contend with in the current fiscal environment.
The reliance on equity-based incentives in a period of declining revenue and negative net income warrants further investigation into the alignment of management compensation with shareholder value. The persistent net losses suggest that the company is currently reliant on external financing rather than organic earnings to sustain operations.
As reported in financial filings, the company's reliance on a high-burn model with negative operating margins suggests that the business may be structurally unprofitable, with the $100 million cash balance serving as a temporary buffer rather than a sign of underlying operational health or success.
Short-sellers would likely focus on the disconnect between the company's speculative market valuation and its inability to demonstrate a clear path to profitability. The risk remains that the current cash reserves will be depleted by ongoing operating losses before a sustainable product-market fit is achieved.
Quick answers to the most common questions about buying PHUN stock.
For fiscal year 2025, Phunware, Inc. (PHUN) reported total revenue of $2.6M. This represents a 94.6% decline compared to $47.4M in 2016.
Phunware, Inc. (PHUN) reported a net loss of $11.4M for the fiscal year ending 2025.
Phunware, Inc. (PHUN) reported an operating income of $-20.5M, resulting in an operating profit margin of -803.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Phunware, Inc. (PHUN) generated $1.3M in gross profit for the year, representing a gross profit margin of 50.6%. This demonstrates the company's core pricing power and production efficiency.