Phunware's Q4 revenue jumps 33% as it shifts focus to hospitality AI
Phunware Inc reported fourth-quarter revenue of $0.8 million, up 33% from the prior year, as the mobile software platform company repositions itself around artificial intelligence solutions for hotels and resorts.
Gross margin expanded sharply to 57.7% from 23.3% a year earlier, driven by a shift toward higher-margin software offerings. The company's net loss narrowed to $2.1 million from $2.6 million in the same quarter last year.
Full-year revenue declined to $2.6 million from $3.2 million, which Phunware attributed to weakness in the advertising market. The company said growth in its software business and margin improvements position it for more consistent performance ahead.
AI Concierge moves from pilot to commercial availability
Phunware's AI Concierge product is now commercially available following a pilot with a large resort customer. The platform combines conversational AI with real-time navigation and mapping, enabling guests to receive personalized recommendations and directions within hotel properties.
The company is targeting the multi-billion-dollar hospitality sector with new product tiers designed for luxury hotel brands and independent full-service properties. Phunware said it expects demand for AI-powered personalization tools in hospitality to accelerate as hotels allocate larger portions of technology budgets to guest experience improvements.
Interim CEO Jeremy Krol said the company remains "deeply committed to executing our transformative approach within the hospitality industry," citing AI as a core driver of guest experience and revenue growth.
What's next
Phunware is expanding sales and marketing efforts to drive adoption of its AI products. The company is also exploring partnerships and acquisitions to strengthen its data and technology infrastructure.
The firm ended 2025 with $100.6 million in cash and cash equivalents.
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