Phunware, Inc. (PHUN): Business Model Canvas [Dec-2025 Updated]

If you're trying to map out where Phunware, Inc. is headed after its big pivot toward generative AI-driven SaaS, you need to look past the stock ticker and see the nuts and bolts of their operation. Honestly, this company is balancing a mature Multiscreen-as-a-Service (MaaS) core, which serves big hospitality and healthcare clients, with a heavy investment in R&D to power new AI tools; they're holding a solid $103.8 million in cash as of September 30, 2025, which is key runway. We need to understand how their enterprise sales, which saw software bookings around $0.6 million in Q2 2025, connect with their digital asset strategy, because that's where the next big revenue jump will come from, assuming they can execute the plan defintely. Dive into the full Business Model Canvas below to see the nine blocks that define their strategy right now.

Phunware, Inc. (PHUN) - Canvas Business Model: Key Partnerships

You're looking at the structure of Phunware, Inc. (PHUN)'s alliances as of late 2025. This section maps out the external relationships critical for platform deployment, market reach, and future growth initiatives, grounding the discussion in the latest reported figures.

Strategic alliances for market expansion and inorganic growth

Phunware, Inc. (PHUN) has actively pursued inorganic growth to expand its capabilities, notably through strategic acquisitions that integrate new technology stacks. A key example is the agreement to acquire a controlling interest in MyCanvass, LLC, which was valued at an aggregate of $1.02 million, paid via a mix of cash and Phunware stock. This move signals a clear intent to expand into adjacent, high-potential technology sectors. The company's strong liquidity, with cash and cash equivalents reported at $103.8 million as of September 30, 2025, provides the capital base to support these strategic investments and continued focus on AI development.

Technology integrators for MaaS platform deployment

The Multiscreen-as-a-Service (MaaS) platform relies on deep integration capabilities. Phunware, Inc. (PHUN) has built a foundation that processes massive amounts of data, benefiting from more than 16 billion unique Phunware IDs created to date. The platform's core, the MaaS Customer Data Platform (CDP), is designed to integrate with leading data platforms. The latest major platform upgrade, Map Editor 3.0, marked the largest update to the MaaS platform to date, suggesting ongoing technical partnerships or internal development supporting integration partners. The overall Customer Data Platform (CDP) market, which Phunware, Inc. (PHUN) targets, was projected to exceed $10.3 billion by 2025.

Here are some key metrics related to platform activity and market context:

Metric	Value (as of late 2025)	Context/Date
Cash and Cash Equivalents	$103.8 million	September 30, 2025
Backlog (Total Billed/Unbilled Contract Value)	$3,139 thousand	March 31, 2025
Q2 2025 Software Bookings	$0.6 million	For the three months ended June 30, 2025
Projected Global CDP Market Size	Over $10.3 billion	Expected by 2025

MyCanvass partnership for civic engagement tools

The partnership centered around MyCanvass, LLC, is designed to leverage its software to build AI-powered tools for political canvassing and voter mobilization. This strategic alliance, valued at $1.02 million for the controlling interest, aims to enhance campaign effectiveness through technology emphasizing transparency and accountability. The focus is on developing innovative canvassing solutions that integrate with Phunware, Inc. (PHUN)'s mobile technology stack.

• Develop AI-powered tools for managing canvassing operations.
• Enhance voter mobilization efforts for political and advocacy campaigns.
• Foundation for strategic partnership with Campaign Nucleus.

Potential partnerships for federal and enterprise contracts

Phunware, Inc. (PHUN) is actively positioning itself to secure larger federal and enterprise contracts, which analysts see as a path to significant revenue growth. The company is focusing on the hospitality and healthcare sectors, where its AI solutions are being piloted. For instance, a November 2025 white paper demonstrated a potential annual revenue opportunity exceeding $2 million specifically for hospitality leaders. The company reported having four new customers in development across these key industries, on track to launch in the quarter following Q2 2025.

The company's Q3 2025 net revenue was $0.6 million, showing a 6.5% decrease year-over-year, but forward momentum is noted in the sales pipeline opportunities increasing quarter over quarter. This suggests that the success of these enterprise-focused partnerships will be critical to reversing the recent revenue trend.

Ecosystem partners for PhunCoin and PhunToken adoption

While Phunware, Inc. (PHUN) has a mission involving the monetization of its technologies, specific, verifiable financial or statistical data regarding the current adoption rates or transaction volumes for PhunCoin and PhunToken as of late 2025 were not publicly available in the latest reports. The company's general mission involves leveraging its platform for widespread adoption, which includes its intellectual property and potentially its blockchain assets.

The focus for near-term partnership validation remains on the enterprise side, where the company is investing in sales and marketing leadership to drive adoption of its new AI Concierge product, which is currently in pilot testing with a trusted hospitality partner.

Finance: draft 13-week cash view by Friday.

Phunware, Inc. (PHUN) - Canvas Business Model: Key Activities

You're looking at the core engine driving Phunware, Inc. (PHUN) right now, late in 2025. It's all about pushing the new AI platform while managing the existing enterprise base. Here's a breakdown of what the company is actively doing, grounded in the latest figures.

Developing generative AI-driven SaaS platform

The focus is clearly on rolling out the next generation of the platform, leveraging generative AI to simplify mobile app creation. The AI Personal Concierge product feature was showcased at HITEC® in Indianapolis and is currently in pilot testing with a trusted hospitality partner as of the third quarter of 2025. The expectation was for this AI-powered SaaS platform to launch around mid-2025, with further integration of AI and machine learning capabilities planned throughout the year.

Enterprise sales and new customer acquisition (e.g., healthcare, hospitality)

Sales and marketing investments are ramping up, reversing a pullback seen in 2024, with a specific focus on the hospitality and healthcare sectors. This activity is showing up in the bookings pipeline. For instance, in the first quarter of 2025, Phunware added three (3) new customers in the hospitality vertical. Momentum carried into the second quarter with a new $0.5 million booking secured from a multi-location health care facility. As of the third quarter, the company has four new customers in development, on track to launch in the next quarter across these key industries. The software subscriptions and services revenue for Q1 2025 grew 40% to $0.6 million year-over-year, though Q2 2025 saw a 16% decrease in that segment revenue to $0.4 million.

Here's a quick look at the software bookings versus revenue for the first half of 2025:

Metric	Q1 2025 Amount	Q2 2025 Amount
Software Subscriptions & Services Revenue	$0.6 million	$0.4 million
Software & Subscription Bookings	$0.4 million	$0.6 million

Maintaining and upgrading the MaaS platform (e.g., Map Editor 3.0)

The core Multiscreen-as-a-Service (MaaS) platform is getting significant attention. A release of Map Editor 3.0 was noted, described as the largest update to the platform to date. Furthermore, in the second quarter of 2025, Phunware deployed 6 updates across its Support & Maintenance mobile applications to improve performance and security for existing customer installations. The overall gross margin for software subscriptions and services improved to 43.9% in Q2 2025 from 26.9% in Q2 2024, showing better efficiency on the recurring revenue base.

Monetizing patent portfolio and intellectual property

Utilizing and monetizing its patents and other intellectual property remains a stated strategic focus for Phunware. However, specific, real-life financial numbers or revenue amounts directly attributable to patent licensing or monetization for the 2025 fiscal year were not disclosed in the latest available reports.

Managing the digital asset ecosystem (PhunCoin/Token)

A renewed focus on the development of a digital asset ecosystem for existing holders and new market participants is part of the company's mission. The underlying advertising technology that powers transaction scaling is stated to operate with over 4.5 billion transactions per day. Still, concrete financial metrics, token transaction volumes, or revenue derived from the PhunCoin/Token ecosystem for the 2025 period were not provided in the recent financial disclosures.

The overall financial context supporting these activities as of September 30, 2025, includes a cash and cash equivalents balance of $103.8 million. The net loss for Q3 2025 narrowed to $2.4 million, an improvement from the $2.8 million loss in Q3 2024. Finance: draft 13-week cash view by Friday.

Phunware, Inc. (PHUN) - Canvas Business Model: Key Resources

You're looking at the core assets Phunware, Inc. (PHUN) relies on to run its business as of late 2025. These aren't just concepts; they are tangible or quantifiable elements driving their operations.

Multiscreen-as-a-Service (MaaS) cloud platform is the foundation. This platform supports the delivery of mobile engagement, management, and monetization products, solutions, data, and services for brands globally. A key component is the Customer Data Platform (CDP) capability, which was designed to operate within a global CDP market expected to exceed $10.3 billion by 2025. Phunware's modern data platform is cited as capable of processing over 4 billion mobile transactions per day for analytics and data science use cases. Furthermore, the company is actively advancing its AI Concierge product, which is currently in pilot testing with a hospitality partner, and it intended to integrate AI-driven predictive analytics into the platform by Q3 2025.

The company's strong liquidity provides a significant buffer for ongoing development and strategic investments. As of September 30, 2025, Phunware reported $103.8 million in cash and cash equivalents. This strong cash position is supported by a reduction in net cash used in operations, which decreased to $9.3 million for the nine months ended September 30, 2025, compared to $10.6 million in the prior year period.

Regarding proprietary location-based services technology and patents, specific counts of active patents are not immediately available in the latest public disclosures, but this technology is integral to the platform's ability to offer real-time wayfinding and context-aware services.

The resource of engineering talent focused on AI and mobile development is being bolstered by increased investments in sales and marketing, including the addition of senior marketing and product leadership to focus on the hospitality and healthcare sectors.

The Customer Data Platform (CDP) is fueled by a massive historical data set. These databases benefit from more than 16 billion unique Phunware IDs created to date. The depth of this data includes more than a petabyte of information unique to tens of billions of discrete events across billions of devices and thousands of mobile applications that have touched the platform globally.

Here's a quick look at the key financial and platform metrics as of the latest reporting period:

Metric Category	Specific Metric	Value	Date/Period
Liquidity	Cash and Cash Equivalents	$103.8 million	Sep 30, 2025
Financial Performance	Net Loss (Q3)	$2.4 million	Three Months Ended Sep 30, 2025
Financial Performance	Net Loss Per Share (Q3)	($0.12)	Three Months Ended Sep 30, 2025
Operational Efficiency	Net Cash Used in Operations	$9.3 million	Nine Months Ended Sep 30, 2025
Platform Capacity	Mobile Transactions Processed Per Day	Over 4 billion	Latest Data
Data Asset	Unique Phunware IDs Created to Date	Over 16 billion	Latest Data

The company's focus on AI integration, like the AI Concierge, shows where this talent and data are being directed. If onboarding new enterprise clients takes longer than expected, the burn rate on this cash position will accelerate.

Finance: draft 13-week cash view by Friday.

Phunware, Inc. (PHUN) - Canvas Business Model: Value Propositions

You're looking at the core value Phunware, Inc. (PHUN) delivers to its enterprise customers through its mobile-first platform. This isn't just about an app; it's about creating a persistent, data-rich digital layer over physical spaces.

Fully integrated mobile cloud platform (MaaS) for enterprises

Phunware, Inc. (PHUN) offers a fully-integrated Multiscreen-as-a-Service (MaaS) platform, which includes a Customer Data Platform (CDP). This platform is designed to aggregate and organize customer data across various touchpoints in real-time to build unified customer databases. The depth of this data foundation is significant; the databases benefit from over 16 billion unique Phunware IDs created to date. The underlying platform architecture is proven to handle massive scale, capable of processing billions of transactions per day and 300,000 to 500,000 transactions per second for generating mobile-centric datasets. This positions Phunware, Inc. (PHUN) within the broader Customer Data Platform market, which was projected to exceed $10.3 billion by 2025. The company's Q3 2025 net revenue was reported at $0.6 million, with a gross margin of 46.1% for that quarter.

AI-driven tools like AI Personal Concierge for hospitality

A key value driver is the integration of artificial intelligence to personalize the user journey. The AI Personal Concierge is a context-aware agent designed to enhance the guest experience through real-time wayfinding, Q&A, and on-property recommendations. As of late 2025, this product was confirmed to be in pilot testing with a trusted hospitality partner. The focus on AI is a strategic pivot, as management noted progress toward its launch in Q3 2025 earnings commentary. The company's overall financial health supports this investment, reporting cash and cash equivalents of $103.8 million as of September 30, 2025.

Real-time indoor/outdoor wayfinding and location services

The platform's location services are a foundational component of its value proposition, especially in complex environments like large venues or resorts. Phunware, Inc. (PHUN) touts its technology for seamless transition from indoor wayfinding to outdoor location sharing and geofencing. This capability was actively monetized in early 2025; for instance, in Q1 2025, an existing hospitality customer launched an integrated conference solution that specifically included dynamic wayfinding. This focus on core location services contributed to a 40% increase in Mobile software subscriptions and services revenue in Q1 2025 compared to Q1 2024, reaching $0.6 million in that segment for the quarter.

Rapid mobile app development and reduced time-to-market

Phunware, Inc. (PHUN) aims to democratize mobile application creation for businesses of all sizes. This is being achieved through a next-generation AI-driven SaaS platform that was expected to launch in mid-2025. This new platform is intended to leverage Generative AI to enable rapid development and monetization of custom mobile app solutions, effectively reducing the time-to-market for sophisticated, branded mobile experiences. The company is actively investing in this future, with operating expenses in Q3 2025 increasing to $3.8 million from $3.5 million in Q3 2024, primarily due to higher sales and marketing expenses supporting new product rollouts.

Enhanced customer engagement and operational effiency

The combination of personalized engagement tools and operational streamlining drives the perceived value. For hoteliers, the solution helps boost operational efficiency and drive ancillary revenue through features like real-time offers and targeted messaging. The financial results from the first half of 2025 show traction in the subscription model that underpins ongoing engagement; Q1 2025 software and subscription bookings totaled $0.4 million. Furthermore, the company demonstrated improved financial management, with the net loss narrowing to $2.4 million in Q3 2025 from $2.8 million in Q3 2024, and net cash used in operations decreasing to $9.3 million for the nine months ended September 30, 2025.

Here's a quick look at some of the latest reported financial and operational metrics that reflect the current state of the business supporting these value propositions:

Metric	Value (Latest Reported Period)	Period End Date
Net Revenue	$0.6 million	Q3 2025
Gross Margin	46.1%	Q3 2025
Net Loss	$2.4 million	Q3 2025
Cash and Cash Equivalents	$103.8 million	September 30, 2025
Net Cash Used in Operations (YTD)	$9.3 million	Nine Months Ended September 30, 2025
Mobile Software Subscriptions & Services Revenue Growth	40%	Q1 2025 vs Q1 2024
Unique Phunware IDs Created (Cumulative)	Over 16 billion	As of late 2020/referenced in 2025

The value proposition centers on delivering measurable results, which is reflected in the 40% growth in software subscriptions in Q1 2025. Still, the overall Q3 2025 net revenue of $0.6 million shows the scale of current commercial deployment. Finance: draft 13-week cash view by Friday.

Phunware, Inc. (PHUN) - Canvas Business Model: Customer Relationships

Phunware, Inc. focuses its customer relationships on securing and expanding enterprise contracts within specific verticals, supported by dedicated resources for complex deployments.

The company is actively adding new logos, with $0.6 million in software and subscription bookings in Q2 2025 coming entirely from new customer logos. This follows the addition of three (3) new customers in the hospitality vertical during Q1 2025. Furthermore, Phunware has four new customers in development, slated for launch in the next quarter (Q4 2025), concentrated in the hospitality and healthcare industries.

The subscription-based recurring revenue model is central to the relationship structure, as evidenced by the gross margin improvement driven by this revenue stream.

Metric	Q1 2025 Value	Q2 2025 Value	Q3 2025 Value
Software Subscriptions & Services Revenue	$0.6 million	$0.4 million	N/A
Software & Subscription Bookings	$0.4 million	$0.6 million	N/A
Software Subscriptions & Services Gross Margin	N/A	43.9%	46.1%

Recurring revenue from existing customers was the main driver for the Q2 2025 software subscriptions and services gross margin improvement to 43.9% from 26.9% year-over-year. However, the business still faces customer concentration risk, with three major clients accounting for 34% of annual revenue in 2024.

Pilot testing programs are being used to validate new offerings before full commercial rollout. As of Q3 2025, the new AI Concierge product is currently in pilot testing with a trusted hospitality partner. This AI Concierge provides context-aware services like real-time wayfinding, Q&A, and on-property recommendations. Management has specifically outlined initiating pilot testing programs for its AI Personal Concierge as a key focus.

The sales process for large, complex deployments remains high-touch, focusing on key sectors. The company secured a $0.5 million booking in Q2 2025 for a multi-location health care facility. Management is focused on shortening the sales cycle while accelerating the pipeline. This is supported by increased investments in sales and marketing, including brand and performance spending, as the focus remains on the hospitality and healthcare sectors.

For the new AI-powered SaaS platform, the stated goal for customer relationship evolution involves democratization of mobile app creation. The company is advancing its AI technology integration, aiming for the commercial rollout of its AI features.

The relationship structure involves several key touchpoints:

• Dedicated enterprise account management for complex deployments.
• Focus on securing new customer logos for subscription revenue.
• Active engagement in pilot testing for new AI features.
• Targeted expansion in hospitality and healthcare verticals.

Finance: review Q3 2025 customer acquisition cost against the $0.6 million Q2 booking value by end of day Tuesday.

Phunware, Inc. (PHUN) - Canvas Business Model: Channels

You're looking at how Phunware, Inc. gets its software and services into the hands of enterprise clients as of late 2025. The approach blends direct selling with strategic marketing investments.

Direct enterprise sales team and business development

The company is actively investing in its sales engine. This involves adding senior sales leadership to focus on the hospitality and healthcare sectors. The sales cycle is a key focus area, with management noting efforts to shorten it. For instance, all software bookings in Q2 2025, totaling \$0.6 million, came from new customer logos, suggesting direct sales efforts are converting new logos.

Industry conferences (e.g., HITEC 2025) for lead generation

Industry events remain a channel for visibility and lead generation. Phunware, Inc. showcased its Next-Gen Guest Experience Technology at HITEC 2025 in Indianapolis, Indiana, from June 16-19. This event participation supports the pipeline development efforts mentioned by management.

Online platform and cloud-based software access

The core offering is delivered via an enterprise cloud platform. While direct usage statistics aren't public, the focus is on the platform's evolution. A new AI-powered SaaS platform is expected to launch in Q4 2025. This platform is designed to democratize mobile app creation for enterprise and small to medium business customers.

Strategic channel partners and resellers

Phunware, Inc.'s mission explicitly mentions leveraging partners for widespread adoption of its mobile technologies. The company plans to relaunch programmatic advertising capabilities through its platform, potentially via partnerships or alliances with third-party programmatic advertising platforms to help customers conduct more efficient digital advertising campaigns.

Digital marketing and thought leadership content

Investments in brand and performance marketing spending increased following a pullback in 2024. A new website is expected to launch in Q4 2025 to amplify market visibility. Furthermore, the digital advertising business provided placements for hundreds of customer campaigns in 2024, indicating this service acts as both a revenue stream and a channel for engagement.

Here's a quick look at the customer acquisition and revenue metrics tied to these channels through the first three quarters of 2025:

Metric	Q1 2025 Value	Q2 2025 Value	Q3 2025 Value
Software & Subscription Bookings	\$0.4 million	\$0.6 million	N/A (Q3 Net Revenue: \$0.6 million)
New Hospitality Customers Added	3	N/A (4 new customers in development for next quarter)	N/A
New Healthcare Facility Booking Value	N/A	\$0.5 million	N/A

The company also noted that in Q1 2025, it added three new customers in the hospitality vertical. Also, management mentioned having four new customers in development, set to launch next quarter (Q3/Q4 2025) in hospitality and healthcare.

• Investments in sales and marketing increased in 2025.
• The company is focusing on the hospitality and healthcare sectors.
• AI-driven predictive analytics integration is targeted by Q3 2025.
• Phunware, Inc. attended the 37th Annual ROTH Conference.

Phunware, Inc. (PHUN) - Canvas Business Model: Customer Segments

You're looking at the customer base for Phunware, Inc. as of late 2025, focusing on where the revenue and new logos are coming from. Honestly, the numbers show a company heavily reliant on a few key enterprise sectors while pushing new AI products into the market. Here's the quick math on who is signing up for their mobile cloud platform.

Large enterprise clients in Hospitality and Healthcare verticals

This remains a core focus area for Phunware, Inc., with recent bookings and customer additions concentrated here. The company is actively showcasing new AI features, like the AI Concierge, specifically for hoteliers to help them unlock additional revenue. As of the third quarter of 2025, the AI Concierge was in pilot testing with a trusted hospitality partner. For the first half of 2025, the momentum in these sectors was clear:

• Added three (3) new customers in the hospitality vertical during Q1 2025.
• Secured a $0.5 million booking from a multi-location health care facility in Q2 2025.
• Total new software bookings in Q2 2025 were $0.6 million, all from new customer logos.
• Management highlighted four new customers in development across hospitality and healthcare sectors, set to launch in Q3 2025.

The software subscriptions and services revenue for Q3 2025 was $0.6 million. This segment is where the company is seeing its most concrete, recent customer wins.

Large real property owners needing Intelligent Reporting

While Phunware, Inc. targets large enterprises and has a strong presence in Hospitality (which involves property owners), specific financial data or customer counts explicitly detailing 'Large real property owners needing Intelligent Reporting' as a distinct segment is not publicly itemized in the latest reports. The platform's capabilities, such as dynamic wayfinding and location sharing, are certainly relevant to large physical venues.

Small and medium businesses (SMBs) via new AI platform

The push into new AI solutions, like the AI Concierge and Guest Services Agent, is intended to expand the audience, but the primary reported bookings and new customer additions are still coming from larger enterprise deals in hospitality and healthcare. The company is accelerating AI development, but concrete statistical data on direct SMB adoption or revenue contribution from the new AI platform is not yet broken out separately as of late 2025.

Government and Federal agencies (a target market)

Phunware, Inc. has stated intentions to unlock additional markets, but there are no specific financial figures, contract wins, or customer counts provided in the Q1 through Q3 2025 reports that quantify the current customer segment size for Government and Federal agencies.

Digital asset holders and market participants

Phunware, Inc.'s mission includes leveraging its mobile technologies for digital asset holders and market participants, and the company plans to update and reintroduce its digital asset ecosystem. However, this segment is described more in terms of strategic intent for monetization rather than a quantified customer segment contributing to the reported revenue figures. The trailing twelve months revenue ending September 30, 2025, was $2.36M.

To give you a clearer picture of the recent financial context surrounding these customer activities, here is a snapshot:

Metric	Q1 2025 Value	Q2 2025 Value	Q3 2025 Value
Software Subscriptions & Services Revenue	$0.6 million	$0.4 million	$0.6 million
Software & Subscription Bookings	$0.4 million	$0.6 million	N/A
Net Loss	$3.7 million	$3.1 million	$2.4 million
Cash and Equivalents (Period End)	$109.7 million (Mar 31, 2025)	$106.3 million (Jun 30, 2025)	$103.8 million (Sep 30, 2025)

Finance: draft 13-week cash view by Friday.

Phunware, Inc. (PHUN) - Canvas Business Model: Cost Structure

You're looking at where Phunware, Inc. is putting its capital to work to drive the next phase of growth, especially around its AI platform. Honestly, the cost structure shows a clear trade-off between managing operational burn and investing heavily in future technology.

Significant Research and Development (R&D) for AI platform

Research and Development is a major cost center, directly tied to advancing the AI-driven customer platform, including the AI Concierge product currently in pilot testing. For the three months ended September 30, 2025, Research and development expense increased by $0.07 million, which is a 10.9% increase compared to the same period in 2024. This investment signals a commitment to the AI roadmap, even as net revenue decreased 6.5% year-over-year in Q3 2025.

Sales and Marketing expenses (increased in Q3 2025)

Phunware, Inc. has been increasing its go-to-market spend after pulling back in 2024. Total operating expenses for the third quarter of 2025 reached $3.8 million, up from $3.5 million in Q3 2024, with Sales and Marketing expenses being the primary driver for this increase. This spending includes investments in brand & performance marketing and preparing for a new website launch expected in Q4 2025.

Personnel costs for engineering and sales teams

Personnel is embedded across R&D and Sales & Marketing, but the focus on engineering for AI and adding senior marketing leadership contributes significantly to the overall operating cost base. For context, in the second quarter of 2025, Research and development costs were $970 thousand, and Sales and marketing costs were $690 thousand.

General and Administrative (G&A) overhead

General and Administrative overhead covers the necessary corporate functions to support operations. While the company has shown discipline, G&A remains a substantial fixed cost component. In Q2 2025, General and administrative expenses were $2,790 thousand. The net cash used in operations for the first nine months of 2025 was $9.3 million, down from $10.6 million in the prior year period, showing some efficiency gains despite increased investment.

One-time legal expenses, such as the $1.2 million in Q1 2025

Non-recurring costs hit the bottom line hard in the first half of the year. Specifically, the net loss in Q1 2025 widened to $3.7 million from $2.3 million in Q1 2024, primarily driven by $1.2 million in one-time legal expenses related to the Wild Basin litigation bench trial.

Here's a quick look at the operating expense components from the second quarter of 2025, which gives you a granular view of the cost base before the Q3 2025 Sales & Marketing ramp-up:

Expense Category (in thousands)	Q2 2025 Amount	Q2 2024 Amount
Sales and marketing	$690	$609
General and administrative	$2,790	$2,299
Research and development	$970	$496
Total operating expenses	$4,450	$3,404

The company's strong liquidity, with cash and cash equivalents at $103.8 million as of September 30, 2025, is what allows Phunware, Inc. to absorb these costs while pushing forward on strategic initiatives.

You'll want Finance to track the run-rate of the increased Sales and Marketing spend against the pipeline development reported in Q3 2025.

Phunware, Inc. (PHUN) - Canvas Business Model: Revenue Streams

You're looking at how Phunware, Inc. actually brings in cash right now, late in 2025. It's a mix of recurring software fees and project-based work, though the overall revenue picture for the quarter shows some contraction.

For the third quarter ended September 30, 2025, Phunware, Inc. reported a net revenue of $0.6 million. This compares to $0.7 million in the third quarter of 2024. The business model relies on several distinct streams, even if the latest quarterly report doesn't fully segment the total net revenue into every single one of these buckets.

Here is a look at the key components that make up the revenue generation strategy, using the latest available data points:

• Software Subscriptions and Services (Q3 2025): The recurring revenue component was reported at $0.6 million for Q1 2025 and $0.4 million for Q2 2025.
• Software Bookings from new customers (Q2 2025): New customer software bookings totaled $0.6 million in the second quarter of 2025.
• Digital advertising revenue from mobile app audiences: This stream was a component of total revenue in 2024, generating $1.28 million, which was 40.20% of the total revenue for that year. No specific 2025 figure is available for this segment alone.
• Professional services for platform implementation: This is bundled within the overall service revenue, which saw Q2 2025 Software subscriptions and services revenue at $0.4 million.
• Future monetization of PhunCoin and PhunToken digital assets: This ecosystem remains in development as of the latest reports, with no material revenue impact reported for 2025.

To give you a clearer picture of the revenue structure based on the most recent full-year context and the latest quarterly total, here's how the streams map out:

Revenue Stream Category	Latest Specific Data Point (Period)	Amount
Total Net Revenue	Q3 2025	$0.6 million or $0.62 million
Software Subscriptions and Services	Q2 2025 Revenue	$0.4 million
Software Bookings (New Customers)	Q2 2025	$0.6 million
Digital Advertising Revenue	FY 2024 Contribution	$1.28 million (40.20% of 2024 total)
Professional Services	Not Separately Itemized in Q3 2025	N/A

The company's gross margin for Q3 2025 was 46.1%. This margin is derived from the revenue streams, showing that the cost of sales was $0.34 million against a Q3 2025 total revenue of $0.62 million (using the more precise figure for calculation). The focus on software subscriptions and services, which had a gross margin of 43.9% in Q2 2025, is key to improving the overall profitability per dollar of revenue.

The pipeline is active; management noted four new customers in development, set to launch next quarter, spanning hospitality and healthcare. Finance: draft 13-week cash view by Friday.