Phunware — Q2 2026 Earnings Summary

Financial Performance

• Net revenue increased 76% year-over-year to $0.8 million in Q2 2026, compared to $0.5 million in Q2 2025, driven by a customer-initiated early contract termination in the prior year.
• For the first six months of 2026, net revenue grew 17% to $1.3 million, compared to $1.1 million in the prior-year period.
• Gross margin expanded to 69.0% in Q2 2026 from 41.8% in Q2 2025, and reached 69.7% for the first six months of 2026 from 48.0% in the prior-year period.
• Net loss was $5.2 million ($0.26 per share) in Q2 2026, compared to a net loss of $3.1 million ($0.16 per share) in Q2 2025.
• Net loss for the first six months of 2026 was $8.4 million ($0.42 per share), compared to $6.9 million ($0.34 per share) in the prior-year period.
• Adjusted EBITDA loss was $5.5 million in Q2 2026, compared to $4.1 million in Q2 2025; for the first six months, the loss was $9.5 million compared to $8.9 million in the prior-year period.
• Net cash used in operations was $8.5 million for the six months ended June 30, 2026, compared to $6.8 million in the prior-year period.
• Cash and cash equivalents totaled $92.1 million as of June 30, 2026, with no debt outstanding.
• Deferred revenue decreased to $1.075 million (current) and $0.229 million (non-current) as of June 30, 2026, from $1.386 million and $0.369 million respectively as of December 31, 2025.

Business Segments and Product Lines

• Executing the "2.0 Strategy" to unify mobile, location-aware, and AI capabilities into a single AI-enabled Guest Intelligence Platform for hospitality, healthcare, and complex physical environments.
• AI Concierge is commercially deployed with engagement levels exceeding initial expectations.
• Showcased AI Itinerary Builder and the forthcoming Location-Aware Data Layer at HITEC North America 2026.
• Maintained a 12-month customer retention rate of greater than 95%.
• Engaged Build Something Product Group to accelerate 2.0 product development.

Management Commentary and Tone

• CEO Dmitry Kroshka, appointed May 13, 2026, stated the quarter marks an important milestone in the company's evolution and emphasized translating technology and a strong balance sheet into disciplined execution.
• Management expressed confidence that the 2.0 strategy, product roadmap, and balance sheet best position the company to create long-term shareholder value.
• The company intends to expand the platform beyond hospitality into healthcare and other complex physical environments.
• Management plans to initiate a series of new investor relations activities, including webinars and expanded conference presence, to provide regular transparency into the 2.0 Strategy.

Other Key Points

• Appointed Nick Farrell as Senior Vice President of Sales and Brent McMahan as Senior Director of Sales to expand hospitality business development.
• Appointed AI and technology veterans Aaron Holloway and Michael Crooks as advisors.
• The increase in net loss primarily reflects continued investment in product, sales and marketing, research and development, and general and administrative initiatives supporting the 2.0 Strategy.
• The company holds no debt, providing financial flexibility to execute its growth strategy.