Phunware 2025 Q2 Earnings Narrowed Loss per Share Amid Revenue Drop

Phunware (PHUN) reported its fiscal 2025 Q2 earnings on August 8, 2025. The company delivered mixed results, with a 50% reduction in per-share losses but a steep 55% decline in revenue. The earnings narrowly missed expectations, as the company has continued to post losses for eight consecutive years in this fiscal quarter.

Phunware’s total revenue dropped significantly by 55.0% to $455,000 in 2025 Q2, compared to $1.01 million in the same period a year ago. The decline reflects ongoing challenges in the company's core business performance.

The company narrowed its losses on a per-share basis, with a loss of $0.16 per share in 2025 Q2, a 50.0% improvement from a loss of $0.32 per share in 2024 Q2. However, net losses actually widened to $-3.14 million from $-2.63 million year-over-year, a 19.5% increase. The company has posted losses for eight consecutive years during this quarter, underscoring long-standing financial challenges.

Phunware’s stock price has continued to decline, with a 2.27% drop during the latest trading day, a 3.73% decline for the week, and a 22.52% drop month-to-date.

A post-earnings investment strategy based on buying shares after a revenue increase quarter-over-quarter on the report date has proven disastrous for Phunware. Over the past three years, the strategy yielded a return of -97.14%, significantly underperforming the benchmark by 147.32%. The Sharpe ratio was -0.53, indicating substantial risk, while the maximum drawdown was 0%, suggesting the strategy left little room for recovery.

Jeremy Krol, Interim CEO, emphasized the company’s focus on product innovation and AI expansion, including the introduction of AI Concierge and Guest Services Agent features at HITEC. Krol noted $0.4 million in Q2 revenue from existing customers and $0.6 million in new customer bookings, with a 43.9% gross margin improvement. The company is on track to launch four new customers in Q3 and is prioritizing AI pilot testing with existing clients, while evaluating both organic and inorganic growth opportunities with the board. The tone remained optimistic about product momentum, AI integration, and liquidity strength.

The company expects to launch four new customers in the upcoming quarter across the hospitality and healthcare sectors. It will continue AI pilot testing for AI Personal Concierge and advance internal development of Guest Services Agent. No specific financial guidance was provided, but management reiterated its commitment to investing in AI and pursuing capital deployment opportunities for growth.

Additional News

Over the past three weeks, notable news impacting the market includes Nigerian newspaper Punch’s coverage of various developments. On August 8, 2025, the paper highlighted a rise in security incidents, including a landmine blast near the Cambodia border that injured three Thai soldiers and an armed attack in the U.S. that killed a police officer. In Nigeria, political and social news dominated, including the arrest of a ritualist in Akwa Ibom accused of providing charms to robbers and a court case involving a $1.3 million fraud in Lagos.

The Nigerian FDI dropped by 70% in three months, and Nigeria’s used car market saw a surge as more vehicle owners sold their private cars amid economic hardships. In the education sector, WAEC issued revised 2025 WASSCE results following a grading error and expressed regret for the issue. Meanwhile, in technology and business, Sterling HoldCo directors invested N341.6 million in company shares, and 9mobile rebranded as T2.