Phunware Inc

Phunware's capital structure is characterized by a debt-free balance sheet, with total liabilities of $9.65 million and total equity of $14.63 million, resulting in a debt-to-equity ratio of 0.00. The company's liquidity position is reflected in a current ratio of 2.77, indicating a strong ability to meet short-term obligations. However, the company's liquidity is constrained by negative operating cash flow of -$5.53 million and free cash flow of -$2.29 million, which suggests ongoing cash burn.

Profitability metrics show a significant challenge for Phunware, with a return on equity (ROE) of -15.67% and a return on assets (ROA) of -9.44%, both well below industry norms for software companies. The company reported a net loss of $2.29 million and an operating loss of $2.39 million, despite generating $921,000 in revenue and $524,000 in gross profit. These figures indicate that the company is not currently generating sufficient operating income to cover its expenses.

Phunware's revenue is not segmented by product or geographic region in the available data, but the company's exposure is likely concentrated in the United States, as is typical for many software firms in the sector. The absence of detailed segment reporting limits the ability to assess diversification or geographic risk.

The company's growth trajectory is uncertain, with no clear indication of revenue acceleration in the current fiscal year. The outlook for the next fiscal year is similarly ambiguous, as the available data does not provide specific revenue growth projections. The company's operating cash flow and free cash flow remain negative, which could limit its ability to invest in growth initiatives or service any future debt obligations.

Risk factors for Phunware include its current unprofitability and negative cash flows, which could lead to liquidity constraints if the company is unable to secure additional financing or improve its operating performance. The risk assessment indicates low dilution risk, with no immediate filing-based dilution flags detected. However, the company's reliance on equity financing in the past suggests that dilution could become a concern if the company continues to operate at a loss and requires further capital.

Recent events for Phunware include analyst price targets ranging from $2.00 to $12.50, with a mean of $6.17 and a median of $4.00. The mean recommendation from analysts is 2.50, which is neutral, with one "Buy" and one "Hold" rating. These mixed signals suggest that while some analysts see potential in the company, others are cautious about its near-term prospects.

Analysts project 226% upside to a mean price target of $6.17, signaling strong potential for significant share price appreciation.

The company maintains zero long-term debt as of fiscal 2025, eliminating interest obligations and reducing financial leverage risks significantly.

A current ratio of 5.03 indicates robust short-term liquidity, providing ample buffer to meet immediate operational obligations comfortably.

Cash conversion metrics rank in the top quartile relative to the software cohort, suggesting efficient working capital management practices.

Dilution risk is assessed as low, implying that existing shareholders face minimal immediate threat from equity issuance or option exercises.

The company carries a high credit risk flag, suggesting significant concerns regarding its ability to meet long-term financial obligations reliably.

Net margins sit in the bottom quartile of the software cohort, highlighting a substantial competitive disadvantage in profitability compared to peers.

Free cash flow turned negative at $11.4 million in fiscal 2026, demonstrating an inability to generate cash from core operations.

Revenue $788.0k, +33,1% YoY; Operating income −62,4% YoY.

• ▍Revenue $788.0k, +33,1% YoY
• ▍Operating income −62,4% YoY
• ▍Net income +19,3% YoY
• ▍Free cash flow +19,2% YoY
• ▍Net margin -269.7%

Revenue $622.0k, −6,5% YoY; Operating income −9,7% YoY.

• ▍Revenue $622.0k, −6,5% YoY
• ▍Operating income −9,7% YoY
• ▍Net income +12,7% YoY
• ▍Free cash flow +12,7% YoY
• ▍Net margin -387.3%

Revenue $455.0k, −55,0% YoY; Operating income −45,2% YoY.

• ▍Revenue $455.0k, −55,0% YoY
• ▍Operating income −45,2% YoY
• ▍Net income −19,5% YoY
• ▍Free cash flow −19,5% YoY
• ▍Net margin -691.0%

Revenue $688.0k, −25,3% YoY; Operating income −101,0% YoY.

• ▍Revenue $688.0k, −25,3% YoY
• ▍Operating income −101,0% YoY
• ▍Net income −62,4% YoY
• ▍Free cash flow −62,6% YoY
• ▍Net margin -541.1%

Revenue $592.0k; Operating income -$4.9M.

• ▍Revenue $592.0k
• ▍Operating income -$4.9M
• ▍Net margin -444.8%

Revenue $665.0k; Operating income -$3.2M.

• ▍Revenue $665.0k
• ▍Operating income -$3.2M
• ▍Net margin -415.0%

Revenue $1.0M; Operating income -$2.9M.

• ▍Revenue $1.0M
• ▍Operating income -$2.9M
• ▍Net margin -260.2%

Revenue $921.0k; Operating income -$2.4M.

• ▍Revenue $921.0k
• ▍Operating income -$2.4M
• ▍Net margin -248.9%

Revenue $2.6M, −19,9% YoY; Operating income −53,6% YoY.

• ▍Revenue $2.6M, −19,9% YoY
• ▍Operating income −53,6% YoY
• ▍Net income −10,5% YoY
• ▍Free cash flow −10,6% YoY
• ▍Net margin -446.6%

Revenue $3.2M, −34,0% YoY; Operating income +71,0% YoY.

• ▍Revenue $3.2M, −34,0% YoY
• ▍Operating income +71,0% YoY
• ▍Net income +80,5% YoY
• ▍Free cash flow +75,4% YoY
• ▍Net margin -323.5%

Revenue $4.8M, −25,9% YoY; Operating income +2,0% YoY.

• ▍Revenue $4.8M, −25,9% YoY
• ▍Operating income +2,0% YoY
• ▍Net income −3,7% YoY
• ▍Free cash flow +8,2% YoY
• ▍Net margin -1092.4%

Revenue $6.5M, −38,7% YoY; Operating income −49,8% YoY.

• ▍Revenue $6.5M, −38,7% YoY
• ▍Operating income −49,8% YoY
• ▍Net income +4,9% YoY
• ▍Net margin -780.5%