Phunware, Inc. Segments Disclosure
12. Segment Reporting
Business segments are components of an enterprise about which discrete financial information is available that is evaluated regularly by the CODM to assess operating performance and allocate resources. Our is our Interim CEO. Our operations are organized by management into operating segments by line of business. Our CODM evaluates performance and allocates resources based on segment operating income (loss) of operating segments. The Company does not allocate its general and administrative expense function across its operating segments. We have two reportable segments: (i) software subscriptions and services and (ii) advertising. No segment-level asset information has been disclosed as our CODM does not review asset information by segment.
Reportable segment information for the years ended December 31, 2025 and 2024, including significant expenses, are set forth below:
(in thousands) |
|
Software Subscriptions & Services |
|
|
Advertising |
|
|
Corporate |
|
|
Year ended December 31, 2025 |
|
||||
Net revenues |
|
$ |
2,271 |
|
|
$ |
282 |
|
|
$ |
- |
|
|
$ |
2,553 |
|
Cost of revenues |
|
|
1,134 |
|
|
|
128 |
|
|
|
- |
|
|
|
1,262 |
|
Gross profit |
|
|
1,137 |
|
|
|
154 |
|
|
|
- |
|
|
|
1,291 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Compensation |
|
|
3,283 |
|
|
|
530 |
|
|
|
1,915 |
|
|
|
5,728 |
|
Consulting and professional fees |
|
|
951 |
|
|
|
- |
|
|
|
11,113 |
|
|
|
12,064 |
|
Facilities and insurance |
|
|
48 |
|
|
|
4 |
|
|
|
1,718 |
|
|
|
1,770 |
|
Stock-based compensation |
|
|
25 |
|
|
|
16 |
|
|
|
352 |
|
|
|
393 |
|
Other segment expenses(1) |
|
|
518 |
|
|
|
26 |
|
|
|
1,311 |
|
|
|
1,855 |
|
Total operating expenses |
|
|
4,825 |
|
|
|
576 |
|
|
|
16,409 |
|
|
|
21,810 |
|
Operating loss |
|
|
(3,688 |
) |
|
|
(422 |
) |
|
|
(16,409 |
) |
|
|
(20,519 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other income, net |
|
|
- |
|
|
|
- |
|
|
|
9,099 |
|
|
|
9,099 |
|
Net loss from continued operations before taxes |
|
$ |
(3,688 |
) |
|
$ |
(422 |
) |
|
$ |
(7,310 |
) |
|
$ |
(11,420 |
) |
(in thousands) |
|
Software Subscriptions & Services |
|
|
Advertising |
|
|
General & Administrative |
|
|
Year ended December 31, 2024 |
|
||||
Net revenues |
|
$ |
1,907 |
|
|
$ |
1,282 |
|
|
$ |
- |
|
|
$ |
3,189 |
|
Cost of revenues |
|
|
1,270 |
|
|
|
465 |
|
|
|
- |
|
|
|
1,735 |
|
Gross profit |
|
|
637 |
|
|
|
817 |
|
|
|
- |
|
|
|
1,454 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Compensation |
|
|
2,960 |
|
|
|
498 |
|
|
|
2,142 |
|
|
|
5,600 |
|
Consulting and professional fees |
|
|
691 |
|
|
|
- |
|
|
|
4,533 |
|
|
|
5,224 |
|
Facilities and insurance |
|
|
34 |
|
|
|
5 |
|
|
|
1,642 |
|
|
|
1,681 |
|
Stock-based compensation |
|
|
135 |
|
|
|
- |
|
|
|
1,342 |
|
|
|
1,477 |
|
Other segment expenses(1) |
|
|
539 |
|
|
|
8 |
|
|
|
814 |
|
|
|
1,361 |
|
Total operating expenses |
|
|
4,359 |
|
|
|
511 |
|
|
|
10,473 |
|
|
|
15,343 |
|
Operating loss |
|
|
(3,722 |
) |
|
|
306 |
|
|
|
(10,473 |
) |
|
|
(13,889 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other income, net |
|
|
- |
|
|
|
- |
|
|
|
3,614 |
|
|
|
3,614 |
|
Net income (loss) from continued operations before taxes |
|
$ |
(3,722 |
) |
|
$ |
306 |
|
|
$ |
(6,859 |
) |
|
$ |
(10,275 |
) |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 27, 2026 | Showing above |
| 2024 | Mar 31, 2025 | |
| 2022 | Mar 31, 2023 | |
| 2021 | Apr 7, 2022 | |
| 2020 | Mar 31, 2021 | |
| 2019 | Mar 30, 2020 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.