Segment Reporting

3 Months Ended

Mar. 31, 2026

9. Segment Reporting

Business segments are components of an enterprise about which discrete financial information is available that is evaluated regularly by the chief operating decision maker (the "CODM") to assess operating performance and allocate resources. Our CODM is our chief executive officer. Our operations are organized by management into operating segments by line of business. The CODM evaluates performance and allocates resources based on the segment operating income (loss) of the operating segments. The Company does not allocate its corporate expense function across its operating segments. We have two reportable segments: (i) software subscriptions and services and (ii) advertising. Certain reclassifications have been made to prior years' figures for compensation and consulting and professional services to conform to current year presentation. No segment-level asset information has been disclosed as our CODM does not review asset information by segment.

Reportable segment information is set forth below:


(in thousands)	Software Subscriptions & Services			Advertising			Corporate			Three months ended March 31, 2026
Net revenue	$	523		$	19		$	-		$	542
Cost of revenue		146			12			-			158
Gross profit		377			7			-			384

Operating expenses:
Compensation		755			83			388			1,226
Consulting and professional fees		371			1			1,893			2,265
Facilities and insurance		7			1			404			412
Stock-based compensation		15			2			78			95
Other segment expenses(1)		197			1			210			408
Total operating expenses		1,345			88			2,973			4,406
Operating loss		(968	)		(81	)		(2,973	)		(4,022	)
Other income		-			-			828			828
Loss before taxes	$	(968	)	$	(81	)	$	(2,145	)	$	(3,194	)


(in thousands)	Software Subscriptions & Services			Advertising			Corporate			Three months ended March 31, 2025
Net revenue	$	635		$	53		$	-		$	688
Cost of revenue		302			27			-			329
Gross profit		333			26			-			359

Operating expenses:
Compensation		798			121			432			1,351
Consulting and professional fees		279			-			2,448			2,727
Facilities and insurance		20			1			523			544
Stock-based compensation		-			4			67			71
Other segment expenses(1)		108			6			366			480
Total operating expenses		1,205			132			3,836			5,173
Operating loss		(872	)		(106	)		(3,836	)		(4,814	)
Other income		-			-			1,091			1,091
Loss before taxes	$	(872	)	$	(106	)	$	(2,745	)	$	(3,723	)

(1)

Other segment expenses represent marketing, information technology related expenses, travel and other general operating expenses.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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+ Details

Phunware, Inc. 10-Q