Phunware (PHUN) AI Stock Analysis

• Market Cap: $64.14M
• Dividend Yield: N/A
• Average Volume (3M): 270.12K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.50
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 29
• Sector: Technology
• Sector Strength: 81
• Industry: Software - Application
• EPS (TTM): -0.18
• Shares Outstanding: 20,170,746
• 10 Day Avg. Volume: 440,353
• 30 Day Avg. Volume: 270,123
• PEG Ratio: 0.05
• Price to Book (P/B): 3.08
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.73
• Enterprise Value/Market Cap: 1.38
• Enterprise Value/Revenue: -191.17
• Enterprise Value/Gross Profit: 68.52
• Enterprise Value/Ebitda: -1.22
• 1Y Price Target: $6.67
• Price Target Upside: 119.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 37 Underperform
• Price Target: ―

Phunware's overall score reflects significant financial challenges and weak technical indicators. The company's persistent losses, negative cash flows, and reliance on external financing raise concerns about its long-term viability. Although the appointment of a new COO could improve operations, it does not sufficiently offset the current negative financial and technical outlook.

Positive Factors

Balance Sheet Strength

The company’s balance sheet had $110 million in cash and no debt, so it has a very strong balance sheet.

Customer Growth Potential

Phunware added three new hospitality customers and recently signed a $0.5M booking for a multi-location healthcare facility, indicating potential for future customer growth.

Software Bookings Improvement

Positives in the release included an approximately 232.0% improvement in software bookings in 2024 versus 2023.

Negative Factors

Advertising Trends

There is an indication of softening trends among advertisers, which may be a headwind for the remainder of 2025.

Operating Expenses and Cash Burn

Visibility on long-term strategy remains somewhat confusing and operating expense appears to be growing faster than revenue, which could accelerate cash burn in coming quarters.

Revenue Decline

Revenue was $0.7 million (-25% y-o-y), compared to our estimates of $0.9 million and consensus of $0.7 million.

Phunware Business Overview & Revenue Model

Company Description

Phunware, Inc., together with its subsidiaries, offers integrated software platform that equips companies with the products, solutions, and services to engage, manage, and monetize their mobile application portfolios in the United States and internationally. The company's products and services include cloud-based mobile software that licenses in software development kits (SDKs) form utilized inside mobile applications, such as analytics that provides data related to application use and engagement; content management that allows application administrators to create and manage app content in a cloud-based portal; alerts, notifications, and messaging; marketing automation that enables location-triggered messages and workflow; advertising; and location-based services that include mapping, navigation, wayfinding, workflow, asset management, and policy enforcement. It also engages the integration of its SDK licenses into existing applications maintained by its customers, as well as custom application development and support services; provision of cloud-based vertical solutions for healthcare, retail, sports, aviation, real estate, hospitality, education, and other applications; offering application transactions, including re-occurring and one-time transactional media purchases for application discovery, user acquisition and audience building, audience engagement, and audience monetization; and pre-packaged and custom high-end personal computer systems for gaming, streaming, and cryptocurrency mining enthusiasts. The company was founded in 2009 and is headquartered in Austin, Texas.

How the Company Makes Money

Phunware makes money primarily through the licensing of its Multiscreen-as-a-Service (MaaS) platform, which includes features for mobile application development, location-based services, and analytics that allow businesses to optimize customer engagement. Revenue is generated from software and service subscriptions, where clients pay for access to Phunware's platform and its various functionalities. The company also earns through strategic partnerships and collaborations that expand its service offerings and market reach. Additionally, Phunware monetizes its data-driven services by providing actionable insights and analytics that businesses can leverage for targeted marketing and improved operational efficiency.

Phunware Financial Statement Overview

Summary

Phunware faces substantial financial challenges with declining revenues, negative net income, and persistent cash flow issues. Despite a strong cash position, the high liabilities and negative stockholders' equity indicate financial vulnerability and reliance on external financing.

Income Statement

The income statement shows significant challenges with declining revenues and negative net income over the years, indicating unsustainable operational performance. The gross profit margin has decreased, and the company has consistently reported negative EBIT and EBITDA margins, reflecting ongoing financial distress.

Balance Sheet

The balance sheet reflects a mixed picture with strong liquidity due to a high cash position. However, there is instability as evidenced by a history of negative stockholders' equity and high ratios of liabilities to equity, indicating financial vulnerability despite recent improvements.

Cash Flow

Cash flow analysis reveals persistent negative operating and free cash flows, indicating cash outflows exceed cash inflows. Despite an influx of financing cash, the company's reliance on external funding for operations poses a risk to long-term sustainability.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.96M	3.19M	4.83M	21.79M	10.64M	10.00M
	Gross Profit
1.29M	1.45M	1.69M	5.08M	3.61M	6.64M
	EBIT
-15.40M	-10.32M	-45.69M	-27.44M	-16.84M	-17.50M
	EBITDA
-12.76M	-10.12M	-40.10M	-42.97M	-49.23M	-18.63M
	Net Income Common Stockholders
-11.75M	-10.32M	-52.78M	-50.89M	-53.52M	-22.20M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
109.72M	112.97M	3.93M	1.96M	23.14M	3.94M
	Total Assets
112.03M	114.78M	6.73M	54.84M	98.02M	31.84M
	Total Debt
320.00K	932.00K	6.60M	12.29M	6.45M	8.39M
	Net Debt
-109.40M	-112.04M	2.66M	10.34M	-16.69M	4.45M
	Total Liabilities
8.41M	7.60M	18.18M	29.95M	32.74M	33.81M
	Stockholders Equity
103.63M	107.18M	-11.46M	24.88M	65.28M	-1.98M
Cash Flow		Free Cash Flow
-11.11M	-13.30M	-18.43M	-28.02M	-63.80M	-10.97M
	Operating Cash Flow
-11.07M	-13.30M	-18.43M	-26.86M	-22.51M	-10.97M
	Investing Cash Flow
0.00	0.00	15.38M	-2.26M	-46.38M	0.00
	Financing Cash Flow
99.12M	122.34M	4.97M	8.05M	88.02M	14.60M

Phunware Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.04
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PHUN, the sentiment is Negative. The current price of 3.04 is below the 20-day moving average (MA) of 3.13, above the 50-day MA of 2.97, and below the 200-day MA of 4.07, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 47.73 is Neutral, neither overbought nor oversold. The STOCH value of 24.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PHUN.

Phunware Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$11.92B	10.03	-7.37%	3.70%	7.32%	-8.25%
SYT	62 Neutral	$39.98M	6.25	12.16%	1.81%	27.23%	47.65%
DUOT	54 Neutral	$88.69M	―	-189.13%	―	89.27%	26.30%
IDN	51 Neutral	$103.79M	―	-4.57%	―	5.78%	54.19%
PHUN	37 Underperform	$64.14M	―	-19.87%	―	―	―
TROO		$101.26M	―		―	―	―
NUKK		$64.81M	0.59		―	―	―

Phunware Corporate Events

Phunware Appoints Quyen Du to Board of Directors

Phunware, Inc. announced the appointment of Quyen Du to its Board of Directors as an independent director, effective February 28, 2025. Ms. Du, who brings 25 years of experience in strategy and corporate development, will also serve on the Company’s Audit, Compensation, and Nominating and Corporate Governance Committees. Her appointment is expected to satisfy Nasdaq’s continued listing requirements and assist in planning Phunware’s 2024 Annual Shareholder Meeting. The appointment follows the resignation of former CEO Michael Snavely, and interim CEO Stephen Chen highlighted Ms. Du’s strategic growth experience as a valuable asset for Phunware’s future growth initiatives.

Phunware Appoints Jeremy Krol as Chief Operating Officer

Phunware, Inc. announced the appointment of Jeremy Krol as the Chief Operating Officer effective January 31, 2025. As part of his employment agreement, Mr. Krol will receive a base salary of 429,270 CAD, a sign-on bonus, and potential annual bonuses. The agreement includes non-competition and non-solicitation clauses, and offers restricted stock units as an inducement. This strategic move is expected to strengthen Phunware’s leadership team and enhance its operational capabilities.