Phunware (NASDAQ:PHUN) outlined a “Phunware 2.0” strategy centered on artificial intelligence, guest intelligence and modular software products for hospitality and healthcare, as the company shifts away from its previous emphasis on custom apps and wayfinding.
CEO Dmitry said the company is targeting hospitality first because it represents the “lowest hanging fruit,” while also pursuing healthcare opportunities that can use Phunware’s existing investments in mapping, wayfinding, itinerary planning and location-based services.
“It’s a transition from what we used to do, which was apps and wayfinding, into the future, which is AI forward and intelligence driven,” Dmitry said during the presentation.
Focus on guest intelligence and ancillary revenue
Phunware said hotel and resort operators often use disconnected property-management, point-of-sale and other technology systems. The company aims to connect data from those systems to help operators increase total revenue per available room, or TRevPAR, including revenue from restaurants, spas, activities and other services beyond room bookings.
The company’s platform is designed to develop guest profiles using reservation details, loyalty information, on-property activity, location signals and third-party data such as weather conditions. It then uses that information to provide personalized recommendations, notifications and itinerary suggestions.
Dmitry cited the example of a guest staying in Cancun when rain is forecast. Rather than leaving guests to seek assistance from a concierge, the platform could notify them about the weather and offer to revise their itinerary. He said the technology can help properties manage such interactions at scale, including large resorts with thousands of rooms.
Phunware’s current distribution includes apps, while its modular offerings include push notifications, AI Concierge and Itinerary Planner. The company also said its technology can support connected digital signage, enrich hotel customer relationship management systems and send guest information to external marketing platforms.
AI Concierge rollout and hospitality customers
Phunware said it beta tested its AI Concierge product during 2025 and officially launched it in January 2026. According to Dmitry, about 70% of the company’s app users interacted with the concierge, and interactions were 40% above its expectations.
The AI Concierge is intended to learn guest preferences through conversations, such as whether a guest prefers burgers or sushi, and tailor later recommendations. Dmitry contrasted the offering with what he described as more transactional competitor chatbots that handle requests such as room-service orders or toiletries.
The company highlighted Wailea Beach Resort as an existing customer using its app and preparing to release AI Concierge while also piloting Itinerary Planner. Dmitry said the resort has seen 70% app adoption among guests on property and is the highest-performing property for ancillary revenue within its Hawaiian flag, according to his remarks.
Phunware said it views other hospitality software providers, including property-management systems and guest portal vendors, as potential integration partners as well as participants in an adjacent competitive market. The company said its modular approach allows it to work with some providers’ existing customers.
Healthcare expansion and subscription model
In healthcare, Phunware said its wayfinding and engagement tools can help patients locate appointments and assist staff working across large medical campuses. Dmitry said the company is discussing its technology with a healthcare system employing 18,000 staff members across multiple buildings and campuses.
He also cited an estimate that U.S. healthcare loses $150 billion annually due to late and missed medical appointments. Phunware said itinerary planning, wayfinding and push-notification reminders can be applied to help address those issues.
The company said it has moved away from a consultative model in which it primarily built customized apps for individual customers. It now plans to sell a platform subscription alongside modular products. The model is intended to broaden its addressable market, including urban hotels that may not need extensive mapping but could use guest engagement and revenue-tracking tools.
Phunware is also changing its sales approach from selling one property at a time to pursuing hotel “flags” and portfolios. Dmitry said the company has reset its sales team over the past four months and is speaking with groups representing between 34 and more than 50 properties.
Contract terms, retention and financing comments
In response to an analyst question, Dmitry said Phunware’s typical customer contracts have historically run about 30 to 36 months, although terms vary by property and hotel flag. He said the company is also discussing an annual arrangement with one flag and reported a 95% customer retention rate.
Asked about the artificial intelligence technology supporting its products, Dmitry said Phunware uses multiple large language models and selects models based on the task. He said token costs have not been an issue and described margins on AI Concierge as “incredible,” adding that the system is trained primarily on property-specific information rather than the broader world.
On capital needs, Dmitry said the company has no debt and does not anticipate financing needs over the next year. “It’s not a deal roadshow,” he said, adding that Phunware believes its stock is significantly undervalued.
About Phunware (NASDAQ:PHUN)
Phunware, Inc is a software company that provides mobile application and location-based technology for organizations seeking to engage customers, employees, patients, and visitors through smartphones and other connected devices. Its platform is designed to support the development, management, and operation of branded mobile applications.
The company’s offerings include mobile application infrastructure, content management, analytics, engagement tools, and location-based services. These capabilities can support functions such as indoor mapping and navigation, messaging, loyalty programs, notifications, wayfinding, and digital experiences tailored to specific venues or audiences.
Phunware has marketed its technology to customers in sectors including healthcare, hospitality, sports and entertainment, retail, and other enterprise industries.
