PowerFleet Inc (AIOT)

Powerfleet Shares Jump on Strong Fiscal 2027 Outlook Despite Earnings Miss (AIOT)June 15, 2026 10:03 AM
IH Market News Powerfleet, Inc. (NASDAQ:AIOT) shares climbed 7.5% in premarket trading on Monday after the AIoT software-as-a-service provider issued fiscal 2027 guidance that comfortably exceeded Wall Street expectations, offsetting a weaker-than-expected earnings performance in its latest quarter. Investors focused on the company’s robust growth outlook and improving profitability metrics as management outlined expectations for another year of expansion. Earnings Fall Short While Revenue Beats Forecasts For the fourth quarter, Powerfleet reported an adjusted loss per share of $0.02, missing analyst expectations of break-even earnings. Revenue reached $114.5 million, surpassing the consensus estimate of $113.0 million and increasing 11% from $103.6 million in the same quarter a year earlier. Services revenue, which accounts for more than 81% of total sales, rose 14% year-over-year to $92.9 million, highlighting continued demand for the company’s recurring software and services offerings. Fiscal 2027 Forecast Exceeds Expectations The company’s guidance for fiscal 2027 was the primary driver behind the positive market reaction. Powerfleet expects revenue of between $485 million and $490 million, significantly ahead of analyst forecasts of $442.3 million. The midpoint of the range implies annual growth of approximately 10%. Management also projected adjusted EBITDA of $122 million to $125 million for fiscal 2027, representing growth of around 27% at the midpoint. Free cash flow is forecast to reach between $30 million and $35 million during the year. CEO Highlights Transformational Year “Fiscal 2026 was a defining year for the business,” said CEO Steve Towe. “We delivered on our objectives to accelerate growth, compound profitability, and establish a consistent, growing cash flow profile—driving 14% growth in high margin services revenue in the fourth quarter of fiscal 2026, increasing adjusted EBITDA by 42% in the same period, and generating positive free cash flow in the second half of the year.” Management said the company’s focus on higher-margin recurring revenue streams continues to support both earnings growth and cash generation. Profitability Improves Sharply Adjusted EBITDA for the fourth quarter increased 42% to $26.4 million, compared with $18.7 million in the prior-year period. Adjusted EBITDA margin expanded to 23.1% from 18.0% a year earlier, reflecting operating leverage and an increasing contribution from software and services revenue. The company’s improving profitability profile was a key highlight despite the earnings-per-share miss. Major South African Contract Adds Long-Term Visibility During the period, Powerfleet secured a significant agreement with South Africa’s National Treasury. The contract is expected to generate between $100 million and $120 million in total value over a five-year period, providing additional revenue visibility and supporting the company’s long-term growth strategy. Management believes the agreement represents an important milestone as Powerfleet continues to expand its global footprint and strengthen its position in the connected asset and AIoT market. PowerFleet stock price Original: Powerfleet Shares Jump on Strong Fiscal 2027 Outlook Despite Earnings Miss (AIOT)

Powerfleet Reports Results for Fourth Quarter and Full-Year Fiscal 2026June 15, 2026 6:00 AM
PR Newswire (US) Revenue of $114.5 million for the fourth quarter, increased 11% year-over-year, driven by services revenue of $92.9 million, up 14%Fourth quarter income from operations improved to $11.0 million from a $7.0 million loss in the prior-year quarter, while net loss improved 78% to $2.7 millionAdjusted EBITDA of $26.4 million for the fourth quarter, up 42% year-over-year, with a margin of 23%Signed a landmark South African National Treasury five-year agreement anticipated to deliver $100 million to $120 million in total contract valueWOODCLIFF LAKE, N.J., June 15, 2026 /PRNewswire/ -- Powerfleet, Inc. ("Powerfleet" or the "Company") (Nasdaq: AIOT), a global leader in the artificial intelligence of things (AIoT) software-as-a-service (SaaS) mobile asset industry, today reported its financial results for the fourth quarter and fiscal year ended March 31, 2026. "Fiscal 2026 was a defining year for the business. We delivered on our objectives to accelerate growth, compound profitability, and establish a consistent, growing cash flow profile—driving 14% growth in high margin services revenue in the fourth quarter of fiscal 2026, increasing adjusted EBITDA by 42% in the same period, and generating positive free cash flow in the second half of the year," said Powerfleet CEO Steve Towe. "We are entering fiscal 2027 as a stronger, more focused company with clear visibility into the next phase of our growth. With second-half fiscal 2026 free cash flow improving by $17.8 million, we expect to generate more than $30 million of free cash flow in fiscal 2027, with continued expansion expected in fiscal 2028 as revenue growth, margin improvement, and organic operating leverage compounds."Results for Fourth Quarter Fiscal 2026 Compared to Fourth Quarter Fiscal 2025Revenue increased 11% to $114.5 millionServices revenue increased 14% to $92.9 millionGross margin increased to 56.5% from 52.8% in the prior-year quarterNet loss improved 78% to $2.7 million, and loss per share improved by 7 cents to $(0.02) from $(0.09) in the prior-year quarterNon-GAAP Results for Fourth Quarter Fiscal 2026 Compared to Fourth Quarter Fiscal 2025Adjusted EBITDA increased 42% to $26.4 million, with margins expanding by 5% to 23%Adjusted net income increased 102% to $5.6 million and, on a per share basis, doubled to $0.04 per shareResults for Fiscal 2026 Compared to Fiscal 2025Revenue increased 22% to $443.8 million, at the top of the guidance rangeServices revenue increased 30% to $359.8 millionGross margin increased 180 basis points to 55.5%Net loss improved 60% to $20.6 million, or $(0.15) per share, compared to $(0.43)Operating cash flow increased to $30.5 million from $(3.3) million in fiscal 2025, while continuing to invest in growth through capitalized software development costs of $18.5 million and capital expenditures of $21.6 million.Total outstanding debt was $280.0 million and cash, cash equivalents, and restricted cash was $40.8 millionNon-GAAP Results for Fiscal 2026 Compared to Fiscal 2025Adjusted EBITDA increased 44% to $97.0 million, with margin expanding to 22%Adjusted net income increased 118% to $11.3 million and, on a per share basis, doubled to $0.08Free cash flow improved $17.8 million in the second half of fiscal 2026, from a use of cash of $13.7 million in the first half to cash generation of $4.1 million in the second half.Total debt, net of cash, cash equivalents, and restricted cash, was $239.2 million. Adjusted net debt to trailing 12-month adjusted EBITDA was 2.47x, representing nearly one turn of improvement from the prior year.Discussion of Fourth Quarter ResultsRevenue for the quarter totaled $114.5 million, an 11% increase from $103.6 million in the fourth quarter of fiscal 2025, driven primarily by 14% growth in high-margin services revenue, which represented more than 81% of total revenue. Gross profit was $64.7 million, and gross margin expanded 370 basis points to 56.5% from 52.8% in the prior-year quarter, reflecting the increasing mix of higher-margin services revenue and improving services gross margins.Income from operations was $11.0 million, an approximately 10% operating margin, compared with an operating loss of $7.0 million in the prior-year quarter. GAAP net loss improved to $2.7 million, or $(0.02) per basic share, from a net loss of $12.4 million, or $(0.09) per basic share, in the prior-year quarter.Adjusted EBITDA, a non-GAAP measure, was $26.4 million in the fourth quarter, a 42% increase from $18.7 million in the prior-year quarter, with adjusted EBITDA margin expanding to 23.1% from 18.0%. The improvement reflects the increasing contribution of high-margin services revenue, realized cost synergies, and disciplined operating expense management. A reconciliation of adjusted EBITDA to GAAP net loss, the most directly comparable GAAP measure, is provided in the tables below.Balance Sheet and Capital ResourcesAs of March 31, 2026, the Company's total available liquidity was $63.6 million, comprising cash and cash equivalents of $36.5 million, and available borrowing capacity of $27.1 million under the Company's existing revolving credit facilities.  Total outstanding debt was $280.0 million, and net debt (net of cash, cash equivalents, and restricted cash) was $239.2 million. Net debt to trailing 12-month adjusted EBITDA ratio was 2.47x, an improvement from 3.39x as of March 31, 2025.Business HighlightsSecured the three largest individual contracts in the Company's history, including individual $10 million+ TCV contracts with a top three global food & beverage and a global manufacturing enterprise.Signed a landmark agreement with the South African National Treasury to deploy Unity safety solutions, with an anticipated total contract value of $100 million to $120 million over a minimum five-year term and with revenue expected to ramp over the next 18 months.Grew high-quality strategic revenue segments, led by enterprise-grade Unity safety solutions for onsite and AI video on-road applications, with the onsite segment growing 39% in the fourth quarter driven by strong North America sales execution and serving as a key land-and-expand entry point into enterprise mobile operations.Delivered on the adjusted EBITDA expansion cost synergy targets related to business combinations and acquisitions, achieving more than $18 million of annual savings in fiscal 2026 and exiting the year with total realized synergy savings of $34 million over the past two years.Scaled the Unity platform to nearly three million subscribers across 50,000 customers, supported by a differentiated distribution network of more than 350 partners, including AT&T, TELUS, MTN, Telstra, and Accenture, reinforcing the Company's competitive moat.Financial OutlookThe Company's outlook reflects increased momentum exiting the fourth quarter of fiscal 2026 and implies continued double-digit revenue growth at the midpoint of the guidance range, along with further Adjusted EBITDA margin expansion.Revenue guidance is supported by a larger, higher-quality pipeline and performance is expected to build sequentially throughout fiscal 2027. This progression is expected to be driven by improved pipeline conversion from increased go-to-market investment and the commencement of the South African National Treasury contract in the second quarter. Revenue and margin contribution from the South Africa deployment are expected to accelerate through year-end.Adjusted EBITDA growth is expected to compound further and outpace revenue growth, reflecting the organic operating leverage in the business. This growth is expected to be driven by a higher mix of services revenue, continued cost discipline, and the benefits of ongoing productivity and cost optimization initiatives. The Company has realized more than $34 million in cost synergies over the past two years and expects to continue investing in centralization, simplification, automation, and AI initiatives during the first half of fiscal 2027. These initiatives require upfront investment in the first half and are expected to yield meaningful savings beginning in the second half. Together with the ramp of the South Africa deployment, these dynamics are expected to drive sequential margin improvement in each quarter of fiscal 2027.The Company provided guidance for fiscal year 2027 for the following metrics:Revenue is expected to range from $485 million to $490 million, representing growth of approximately 10% year-over-year at the midpoint of the range. Services revenue is expected to exceed $400 million.Net income is expected to range from $4 million to $8 million, with weighted-average fully diluted shares outstanding of 136 million.Adjusted EBITDA is expected to range from $122 million to $125 million, representing growth of approximately 27% year-over-year at the midpoint of the range, with a margin of approximately 25% at the midpoints of the revenue and Adjusted EBITDA guidance ranges.Free cash flow is expected to range from $30 million to $35 million.Powerfleet provides guidance for adjusted EBITDA and free cash flow, which are non-GAAP financial measures. Powerfleet does not provide guidance for the most directly comparable GAAP financial measures or a reconciliation of each of these forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measure because it is unable to predict, without unreasonable effort, the timing or amount of certain items that are included in the applicable GAAP financial measure but excluded from adjusted EBITDA and/or free cash flow. These items may include, among others, stock-based compensation, acquisition-related expenses, fair-value adjustments, restructuring charges and other non-recurring items. The variability of these items could have a significant impact on Powerfleet's future GAAP financial results, and therefore, Powerfleet is unable to provide a reconciliation at this time.INVESTOR CONFERENCE CALL AND BUSINESS UPDATEPowerfleet management will hold a conference call on Monday, June 15, 2026, at 8:30 a.m. Eastern time (5:30 a.m. Pacific time) to discuss results for the fourth quarter and fiscal year 2026 ended March 31, 2026, and provide a business update.Date: Monday, June 15, 2026
Time: 8:30 a.m. Eastern time (5:30 a.m. Pacific time)
Toll Free: 888-506-0062
International: 973-528-0011
Participant Access Code: 931158The conference call will be broadcast simultaneously and available for replay here. Additionally, both the webcast and accompanying slide presentation will be available via the investor section of Powerfleet's website at ir.powerfleet.com.USE OF NON-GAAP FINANCIAL MEASURES Management evaluates the financial performance of our business on a variety of key indicators, including non-GAAP measures of adjusted EBITDA, adjusted EBITDA margin, adjusted EBITDA gross margin, adjusted net income per share, adjusted EBITDA leverage ratio, free cash flow, net debt and adjusted net debt. Reference to these non-GAAP measures should be considered in addition to results prepared under current accounting standards, but are not a substitute for, or superior to, GAAP results. These non-GAAP measures are provided to enhance investors' overall understanding of Powerfleet's current financial performance. Specifically, Powerfleet believes the non-GAAP measures provide useful information to both management and investors by excluding certain expenses, gains and losses and fluctuations in currency rates that may not be indicative of its core operating results and business outlook. These non-GAAP measures are not measures of financial performance or liquidity under GAAP and, accordingly, should not be considered as an alternative to total revenues, net income, net income margin, gross margin, net income per share, net cash provided by operating activities or total debt as an indicator of operating performance or liquidity. Because Powerfleet's method for calculating the non-GAAP measures may differ from other companies' methods, the non-GAAP measures may not be comparable to similarly titled measures reported by other companies. A reconciliation of all non-GAAP financial measures included in this press release to the most directly comparable GAAP financial measures is provided in Annex A titled "Non-GAAP Financial Measures," including a description of these non-GAAP financial measures and the reasons why management uses these measures.ABOUT POWERFLEETPowerfleet (Nasdaq: AIOT; JSE: PWR) is a global leader in the artificial intelligence of things (AIoT) software-as-a-service (SaaS) mobile asset industry. With more than 30 years of experience, Powerfleet unifies business operations through the ingestion, harmonization, and integration of data, irrespective of source, and delivers actionable insights to help companies save lives, time, and money. Powerfleet's ethos transcends our data ecosystem and commitment to innovation; our people-centric approach empowers our customers to realize impactful and sustained business improvement. The Company is headquartered in New Jersey, United States, with offices around the globe. Explore more at www.powerfleet.com. Powerfleet has a primary listing on The Nasdaq Global Market and a secondary listing on the Main Board of the Johannesburg Stock Exchange (JSE).CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTSThis press release contains forward-looking statements within the meaning of federal securities laws. Powerfleet's actual results may differ from its expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Forward-looking statements may be identified by words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "continue," and similar expressions.These forward-looking statements include, without limitation, our expectations with respect to our beliefs, plans, goals, objectives, expectations, anticipations, assumptions, estimates, intentions and future performance, as well as including our financial outlook and guidance for fiscal 2027 and the anticipated financial impacts of recent business combinations and acquisitions. Forward-looking statements involve significant known and unknown risks, uncertainties and other factors, which may cause our actual results, performance or achievements to be materially different from the future results, performance or achievements expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be forward-looking statements. Most of these factors are outside our control and are difficult to predict. The risks and uncertainties referred to above include, but are not limited to, risks related to: (i) the possibility that we may not fully realize the anticipated benefits of our acquisitions and ongoing business transformation initiatives; (ii) significant losses, accumulated deficits and an inability to achieve or sustain profitability; (iii) future global economic, political and business conditions, including inflation, interest rate increases, foreign exchange instability, geopolitical conflicts, sanctions, export controls and the potential imposition of tariffs; (iv) the commercial, financial, reputational and regulatory risks to our business associated with operating across multiple geographies, including exposure to foreign exchange fluctuations and economic instability in certain emerging markets; (v) disruptions in our global supply chain, performance issues or failures by subcontractors, and reliance on a limited number of suppliers for critical components and services; (vi) the loss of any of our key customers, reductions in customer demand or purchasing levels, and reliance on third-party channel partner relationships, including telecommunication companies and regional distributors; (vii) changes in technology, products and customer expectations, which may be more rapid, costly or difficult to address, or less effective, than anticipated; (viii) risks associated with the deployment and use of artificial intelligence and machine learning technologies, including operational, legal, regulatory and reputational risks arising from their development, use or outputs; (ix) potential breaches, disruptions or failures of our information technology systems, including risks that could impair operations, customer access to services, or vendor and customer relationships; (x) our inability to adequately protect our intellectual property rights or defend against third-party intellectual property claims; (xi) our ability to obtain additional capital to fund our operations; and (xii) such other factors as are set forth in the periodic reports filed by us with the Securities and Exchange Commission (SEC), including but not limited to those described under the heading "Risk Factors" in our annual reports on Form 10-K, quarterly reports on Form 10-Q and any other filings made with the SEC from time to time, which are available via the SEC's website at http://www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove to be incorrect, actual results may vary materially from those indicated or anticipated by these forward-looking statements. Therefore, you should not rely on any of these forward-looking statements.The forward-looking statements included in this press release are made only as of the date of this press release, and except as otherwise required by applicable securities law, we assume no obligation, nor do we intend to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances.Powerfleet Investor Contacts
Carolyn Capaccio and Jody BurfeningAlliance Advisors IR
AIOTIRTeam@allianceadvisors.comPowerfleet Media Contact
Jonathan Bates
jonathan.bates @GarySevenPOWERFLEET, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended March 31,
Year Ended March 31,
2025
2026
2025
2026Revenues:






Products$   21,866
$   21,546
$   85,584
$   83,975Services81,772
92,944
276,931
359,802Total revenues103,638
114,490
362,515
443,777







Cost of revenues:






Cost of products18,152
15,295
61,961
59,153Cost of services30,723
34,531
106,017
138,202Total cost of revenues48,875
49,826
167,978
197,355







Gross profit54,763
64,664
194,537
246,422







Operating expenses:






Selling, general and
administrative
expenses56,839
48,903
204,361
208,487Research and development expenses4,904
4,736
16,061
18,359Total operating expenses61,743
53,639
220,422
226,846







(Loss) income from operations(6,980)
11,025
(25,885)
19,576







Interest income95
211
926
780Interest expense(5,655)
(6,919)
(20,330)
(27,526)Other expense, net(202)
(2,311)
(1,163)
(4,086)







Net (loss) income before income taxes(12,742)
2,006
(46,452)
(11,256)







Income tax benefit (expense)304
(4,064)
(4,517)
(8,688)







Net loss before non-controlling interest(12,438)
(2,058)
(50,969)
(19,944)Non-controlling interest(1)
(608)
(18)
(608)







Net loss(12,439)
(2,666)
(50,987)
(20,552)







Preferred stock dividend—
—
(25)
—







Net loss attributable to common stockholders$   (12,439)
$     (2,666)
$   (51,012)
$   (20,552)







Net loss per share attributable to common stockholders - basic and diluted$       (0.09)
$       (0.02)
$       (0.43)
$       (0.15)







Weighted-average common shares outstanding - basic and diluted132,793
134,153
119,877
133,761POWERFLEET, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)

March 31, 2025
March 31, 2026ASSETS



Current assets:



Cash and cash equivalents
$         44,392
$         36,496Restricted cash
4,396
4,322Accounts receivables, net
78,623
93,820Inventory, net
18,350
22,448Prepaid expenses and other current assets
23,319
22,094Total current assets
169,080
179,180Fixed assets, net
58,011
62,398Goodwill
383,146
411,995Intangible assets, net
258,582
255,518Right-of-use asset
12,339
15,893Severance payable fund
3,796
4,445Deferred tax asset
3,934
4,537Other assets
21,183
21,599Total assets
$       910,071
$       955,565




LIABILITIES



Current liabilities:



Short-term bank debt and current maturities of long-term debt
$         41,632
$         50,355Accounts payable
41,599
46,353Accrued expenses and other current liabilities
45,327
37,699Deferred revenue - current
17,375
20,159Lease liability - current
5,076
3,386Total current liabilities
151,009
157,952Long-term debt - less current maturities
232,160
229,669Deferred revenue - less current portion
5,197
4,005Lease liability - less current portion
8,191
13,505Accrued severance payable
6,039
5,666Deferred tax liability
57,712
60,063Other long-term liabilities
3,021
3,090Total liabilities
463,329
473,950




REDEEMABLE NON-CONTROLLING INTERESTS



Redeemable non-controlling interests
—
6,009




STOCKHOLDERS' EQUITY



Preferred stock
—
—Common stock
1,343
1,343Additional paid-in capital
671,400
682,344Accumulated deficit
(205,783)
(226,335)Accumulated other comprehensive (loss) income
(8,850)
29,660Treasury stock
(11,518)
(11,518)




Total stockholders' equity
446,592
475,494Non-controlling interest
150
112Total equity
446,742
475,606









Total liabilities, redeemable interests and stockholders' equity
$       910,071
$       955,565POWERFLEET, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)

Year Ended March 31,

2025
2026Cash flows from operating activities



Net loss
$     (50,987)
$     (20,552)Adjustments to reconcile net loss to cash (used in) provided by operating activities:



Non-controlling interest
18
608Inventory reserve
4,480
2,339Stock-based compensation expense
9,362
7,541Depreciation and amortization
47,494
60,280Right-of-use assets, non-cash lease expense
5,007
4,056Derivative mark-to-market adjustment
(504)
(775)Bad debts expense
9,418
10,988Deferred income taxes
(4,872)
(1,737)Shares issued for transaction bonuses
889
—Lease termination and modification losses
295
(233)Other non-cash items
1,061
(2,159)Changes in operating assets and liabilities:



Accounts receivables
(14,048)
(21,232)Inventories
5,729
(4,464)Prepaid expenses and other current assets
5,474
2,201Deferred costs
(8,437)
(8,545)Deferred revenue
1,748
1,623Accounts payable, accrued expenses and other current liabilities
(12,162)
5,228Lease liabilities
(4,558)
(3,685)Accrued severance payable, net
1,248
(1,021)




Net cash (used in) provided by operating activities
(3,345)
30,461




Cash flows from investing activities:



Acquisition, net of cash assumed
(137,112)
55Proceeds from sale of fixed assets
12
140Capitalized software development costs
(13,782)
(18,532)Capital expenditures
(20,008)
(21,618)Repayment of loan advanced to external parties
294
207




Net cash used in investing activities
(170,596)
(39,748)




Cash flows from financing activities:



Repayment of long-term debt
(2,642)
(5,604)Short-term bank debt, net
19,551
5,716Purchase of treasury stock upon vesting of restricted stock
(2,836)
—Payment of preferred stock dividend and redemption of preferred stock
(90,298)
—Proceeds from private placement, net
66,459
—Proceeds from long-term debt
125,000
—Payment of long-term debt costs
(1,410)
—Proceeds from exercise of stock options, net
1,898
39




Net cash provided by financing activities
115,722
151




Effect of foreign exchange rate changes on cash and cash equivalents
(2,657)
1,166Net decrease in cash and cash equivalents, and restricted cash
(60,876)
(7,970)Cash and cash equivalents, and restricted cash at beginning of the period
109,664
48,788




Cash and cash equivalents, and restricted cash at end of the period
$      48,788
$      40,818




Reconciliation of cash, cash equivalents, and restricted cash, beginning of the period



Cash and cash equivalents
24,354
44,392Restricted cash
85,310
4,396Cash, cash equivalents, and restricted cash, beginning of the period
$    109,664
$      48,788




Reconciliation of cash, cash equivalents, and restricted cash, end of the period



Cash and cash equivalents
44,392
36,496Restricted cash
4,396
4,322Cash, cash equivalents, and restricted cash, end of the period
$      48,788
$      40,818




Supplemental disclosure of cash flow information:



Cash paid for:



Taxes
$        4,283
$        7,250Interest
$      15,335
$      24,490




Noncash investing and financing activities:



Common stock issued for transaction bonus
$               9
$             —Shares issued in connection with MiX Combination
$    362,005
$             —Shares issued in connection with Fleet Complete acquisition
$      21,343
$             —Issuance of redeemable non-controlling interest
$             —
$        8,765Rebalancing of ownership percentage between parent and subsidiaries
$             —
$      (3,364)Annex A: Non-GAAP Financial MeasuresIn order to assist readers of our consolidated financial statements in understanding the operating results that management uses to evaluate the business and for financial planning purposes, we present non-GAAP measures of organic revenue growth, adjusted EBITDA, adjusted EBITDA margin, adjusted net income per share, adjusted EBITDA gross profit margin, adjusted EBITDA products gross profit margin, adjusted EBITDA services gross profit margin, non-GAAP selling, general and administrative expense ratios, adjusted operating expenses, free cash flow, net debt and adjusted net debt, and adjusted net debt to adjusted EBITDA ratio as supplemental measures of our operating performance. We believe they provide useful information to our investors as they eliminate the impact of certain items that we do not consider indicative of our cash operations and ongoing operating performance. In addition, we use them as an integral part of our internal reporting to measure the performance and operating strength of our business.We believe organic revenue growth, adjusted EBITDA, adjusted EBITDA margin, adjusted net income per share, adjusted EBITDA gross profit margin, adjusted EBITDA products gross profit margin, adjusted EBITDA services gross profit margin, non-GAAP selling, general and administrative expense ratios, adjusted operating expenses, free cash flow, net debt and adjusted net debt, and adjusted net debt to adjusted EBITDA ratio, are relevant and provide useful information frequently used by securities analysts, investors and other interested parties in their evaluation of the operating performance of companies similar to ours and are indicators of the operational strength of our business.Organic revenue growth represents the year-over-year percentage change in revenue, excluding the impact of acquisitions. We believe organic revenue growth provides insight into the underlying performance of the Company's existing operations by removing the effects of changes in the scope of consolidation. Adjusted EBITDA is equal to net loss attributable to common stockholders, excluding non-controlling interest, preferred stock dividend, interest expense (net), other expense (net), income tax benefit/expense, depreciation and amortization, stock-based compensation, foreign currency losses, restructuring-related expenses, derivative mark-to-market adjustment, acquisition-related expenses and integration-related expenses. Following a detailed review of relevant SEC guidance on disclosure of non-GAAP financial measures, we refined our definition of adjusted EBITDA by removing recognition of pre-October 1, 2024 contract assets (Fleet Complete). Comparative information has been adjusted to conform with the updated presentation. We believe adjusted EBITDA eliminates the uneven effect of considerable amounts of non-cash depreciation and amortization, stock-based compensation and other items that might otherwise make comparisons of our ongoing business with prior periods more difficult and obscure trends in ongoing operations. We define adjusted EBITDA margin as adjusted EBITDA as a percentage of revenue. Adjusted net income is equal to net loss excluding incremental intangible assets amortization expense as a result of business combinations, stock-based compensation (non-recurring/accelerated cost), foreign currency losses, restructuring-related expenses, derivative mark-to-market adjustment, acquisition-related expenses, integration-related expenses and inventory rationalization and other, net of tax. We define adjusted net income per share as adjusted net income divided by the weighted-average number of shares outstanding during the period. We believe adjusted net income provides additional means of evaluating period-over-period operating performance by eliminating certain non-cash expenses and other items that might otherwise make comparisons of our ongoing business with prior periods more difficult and obscure trends in ongoing operations. We define adjusted EBITDA gross profit as gross profit excluding inventory rationalization and other and depreciation and amortization, and adjusted EBITDA gross profit margin as adjusted EBITDA gross profit as a percentage of revenues. Our adjusted EBITDA gross profit is a measure used by management in evaluating the business's current operating performance by excluding the impact of prior historical costs of assets that are expensed systematically and allocated over the estimated useful lives of the assets, which may not be indicative of the current operating activity. We define non-GAAP selling, general and administrative expense ratios as selling, general and administrative expenses adjusted for restructuring-related expenses, acquisition-related expenses, integration-related expenses, depreciation and amortization, and stock-based compensation, and expressed as a percentage of total revenues. We define adjusted operating expenses as total operating expenses adjusted for acquisition-related expenses, integration-related expenses, stock-based compensation (non-recurring/accelerated cost) and restructuring-related expenses. We present non-GAAP selling, general and administrative expense ratios and adjusted operating expenses to provide a clearer view of our operating cost structure by excluding items that are not directly tied to ongoing business operations. Free cash flow is equal to net cash provided by operating activities, excluding proceeds from the sale of fixed assets, capitalized software development costs and capital expenditures. We present free cash flow because we believe it provides useful information to investors and others in understanding and evaluating the Company's cash flows by providing detail of the amount of cash the Company generates or utilizes after accounting for all capital expenditures as well as costs that do not relate to our core business operations. We define adjusted net debt as total debt less cash, cash equivalents, and restricted cash, resulting in net debt less unsettled transaction costs. Adjusted net debt to adjusted EBITDA ratio is calculated as adjusted net debt divided by adjusted EBITDA for the trailing 12-month period. We present adjusted net debt and adjusted net debt to adjusted EBITDA ratio to help investors and others better understand our true leverage position and financial flexibility. Unsettled transaction costs – often related to acquisitions, integrations, or financing activities – can temporarily inflate net debt figures and obscure comparability across periods.Adjusted EBITDA, adjusted EBITDA margin, adjusted net income per share, adjusted EBITDA gross profit margin, adjusted EBITDA products gross profit margin, adjusted EBITDA services gross profit margin, non-GAAP selling, general and administrative expense ratios, adjusted operating expenses, free cash flow, net debt and adjusted net debt, and adjusted net debt to adjusted EBITDA ratio are not intended to be performance measures that should be regarded as an alternative to, or more meaningful than, financial measures presented in accordance with U.S. GAAP. The way we measure adjusted EBITDA, adjusted EBITDA margin, adjusted net income per share, adjusted EBITDA gross profit margin, adjusted EBITDA products gross profit margin, adjusted EBITDA services gross profit margin, non-GAAP selling, general and administrative expense ratios, adjusted operating expenses, free cash flow, net debt and adjusted net debt, and adjusted net debt to adjusted EBITDA ratio, may not be comparable to similarly titled measures presented by other companies.A reconciliation of net loss attributable to common stockholders (the most directly comparable financial measure presented in accordance with GAAP) to adjusted EBITDA for the periods shown is presented below (in thousands and unaudited):
Three Months Ended March 31,
Year Ended March 31,
2025 (1)
2026
2025 (1)
2026Net loss attributable to common stockholders$   (12,439)
$     (2,666)
$   (51,012)
$   (20,552)Non-controlling interest1
608
18
608Preferred stock dividend—
—
25
—Interest expense, net5,560
6,708
19,404
26,746Other expense, net—
304
—
129Income tax (benefit) expense(304)
4,064
4,517
8,688Depreciation and amortization14,452
12,589
47,494
60,280Stock-based compensation924
1,603
9,362
7,541Foreign currency losses502
80
1,790
3,862Restructuring-related expenses6,969
603
10,077
4,923Derivative mark-to-market adjustment(29)
1,279
(504)
(775)Acquisition-related expenses428
213
21,300
1,689Integration-related expenses2,592
1,042
4,851
3,893Adjusted EBITDA$      18,656
$      26,427
$     67,322
$     97,032Net loss margin(12.0) %
(2.3) %
(14.1) %
(4.6) %Adjusted EBITDA margin18.0 %
23.1 %
18.6 %
21.9 %







Other cash items:






Recognition of pre-October 1, 2024 contract assets (Fleet Complete)$        1,768
$        1,009
$       3,809
$       5,035







(1) Following the closing of our acquisition of Fleet Complete, we included an EBITDA adjustment related to the recognition of pre-October 1, 2024, contract assets. This adjustment represented recoveries, through customer billings, of the contract asset recognized at acquisition for hardware delivered by Fleet Complete prior to October 1, 2024. This adjustment was intended to give investors a clearer view of underlying operating performance and cash generation. The goal was to better align adjusted EBITDA with operating cash flows.  Following a detailed review of relevant SEC guidance on disclosure of non-GAAP financial measures, we have stopped including this adjustment in our presentation of adjusted EBITDA.  For the three months and years ended March 31, 2025 and 2026, we reported adjusted EBITDA of $18.7 million, $67.3 million, $26.4 million and $97.0 million, respectively. During the same periods, we also invoiced recoveries of $1.8 million,  $3.8 million, $1.0 million and $5.0 million, respectively, which are included in cash flows from operating activities in the condensed consolidated statement of cash flows. The following table (in thousands, except per share data, and unaudited) reconciles net loss to adjusted net income for the periods shown:
Three Months Ended March 31,
Year Ended March 31,
2025
2026
2025
2026Net loss$   (12,439)
$     (2,666)
$  (50,987)
$  (20,552)Incremental intangible assets amortization expense as a result of business combinations5,201
5,495
14,752
22,816Stock-based compensation (non-recurring/accelerated cost)—
—
4,693
—Foreign currency losses502
80
1,790
3,862Restructuring-related expenses6,969
603
10,077
4,923Derivative mark-to-market adjustment(29)
1,279
(504)
(775)Acquisition-related expenses428
213
21,300
1,689Integration-related expenses2,592
1,042
4,851
3,893Inventory rationalization and other—
—
—
415Income tax effect of adjustments(430)
(391)
(809)
(4,991)Adjusted net income$      2,794
$       5,655
$      5,163
$   11,280







Weighted-average shares outstanding132,793
134,153
119,877
133,761







Net loss per share - basic$       (0.09)
$       (0.02)
$      (0.43)
$      (0.15)Adjusted net income per share - basic$        0.02
$         0.04
$       0.04
$       0.08The following table (in thousands and unaudited) reconciles gross profit margins to adjusted EBITDA gross profit margins for the periods shown:
Three Months Ended March 31,
Year Ended March 31,
2025
2026
2025
2026Products:






Product revenues$     21,866
$     21,546
$     85,584
$     83,975Cost of products18,152
15,295
61,961
59,153Products gross profit$       3,714
$       6,251
$     23,623
$     24,822







Inventory rationalization and other$       2,570
$             —
$       3,310
$             —







Adjusted EBITDA products gross profit$       6,284
$       6,251
$     26,933
$     24,822







Products gross profit margin17.0 %
29.0 %
27.6 %
29.6 %Adjusted EBITDA products gross profit margin28.7 %
29.0 %
31.5 %
29.6 %







Services:






Services revenues81,772
92,944
276,931
359,802Cost of services30,723
34,531
106,017
138,202Services gross profit$     51,049
$     58,413
$   170,914
$   221,600







Depreciation and amortization11,773
11,440
37,984
51,982







Adjusted EBITDA services gross profit$     62,822
$     69,853
$   208,898
$   273,582







Services gross profit margin62.4 %
62.8 %
61.7 %
61.6 %Adjusted EBITDA services gross profit margin76.8 %
75.2 %
75.4 %
76.0 %







Total:






Total revenues$   103,638
$   114,490
$   362,515
$   443,777Total cost of revenues48,875
49,826
167,978
197,355Total gross profit$     54,763
$     64,664
$   194,537
$   246,422







Inventory rationalization and other$       2,570
$             —
$       3,310
$             —Depreciation and amortization$     11,773
$     11,440
$     37,984
$     51,982







Adjusted EBITDA gross profit$     69,106
$     76,104
$   235,831
$   298,404







Gross profit margin52.8 %
56.5 %
53.7 %
55.5 %Adjusted EBITDA gross profit margin66.7 %
66.5 %
65.1 %
67.2 %The following table (in thousands and unaudited) reconciles selling, general and administrative ("SG&A") expenses to non-GAAP SG&A expenses for the periods shown:
Three Months Ended March 31,
Year Ended March 31,
2025
2026
2025
2026Total revenues$   103,638
$   114,490
$   362,515
$   443,777







Selling, general and administrative expenses






Selling, general and administrative expenses56,839
48,903
204,361
208,487Restructuring-related expenses(4,499)
(603)
(6,767)
(4,923)Acquisition-related expenses(428)
(213)
(21,300)
(1,689)Integration-related expenses(2,592)
(1,042)
(4,851)
(3,893)Depreciation and amortization(2,401)
(1,149)
(7,979)
(8,298)Stock-based compensation(924)
(1,603)
(9,362)
(7,541)Non-GAAP selling, general and administrative expenses45,995
44,293
154,102
182,143







Non-GAAP sales and marketing expenses17,345
19,895
52,869
77,180Non-GAAP general and administrative expenses28,750
24,398
101,233
104,963Non-GAAP selling, general and administrative expenses$     46,095
$     44,293
$   154,102
$   182,143







Non-GAAP sales and marketing expenses as a percentage of total revenue16.7 %
17.4 %
14.6 %
17.4 %Non-GAAP general and administrative expenses as a percentage of total revenue27.7 %
21.3 %
27.9 %
23.7 %







Research and development expenses






Research and development incurred$       9,082
$       8,156
$     28,881
$     34,771Research and development capitalized(4,178)
(3,420)
(12,820)
(16,412)Research and development expenses $       4,904
$       4,736
$     16,061
$     18,359







Research and development incurred as a percentage of total revenues8.8 %
7.1 %
8.0 %
7.8 %Research and development expenses as a percentage of total revenues4.7 %
4.1 %
4.4 %
4.1 %The following table (in thousands and unaudited) reconciles total operating expenses to adjusted operating expenses for the periods shown:
Three Months Ended March 31,
Year Ended March 31,
2025
2026
2025
2026Total operating expenses$     61,743
$     53,639
$   220,422
$   226,846Adjusted for:






Acquisition-related expenses428
213
21,300
1,689Integration-related expenses2,592
1,042
4,851
3,893Stock-based compensation (non-recurring/accelerated cost)—
—
4,693
—Restructuring-related expenses4,499
603
6,767
4,923
7,519
1,858
37,611
10,505







Adjusted operating expenses$     54,224
$     51,781
$   182,811
$   216,341The following table (in thousands and unaudited) reconciles net cash provided by operating activities to free cash flow for the periods shown:
Three Months Ended
June 30, 2025
September 30,2025
December 31,2025
March 31, 2026Net cash provided by operating activities$      4,721
$               5,522
$             10,208
$    10,010Plus: Proceeds from sale of fixed assets16
2
39
83Less: Capitalized software development costs(3,724)
(7,767)
(2,608)
(4,433)Less: Capital expenditures(8,114)
(4,338)
(5,265)
(3,901)Free cash flow$     (7,101)
$            (6,581)
$               2,374
$      1,759The following table (in thousands and unaudited) reconciles total debt to adjusted net debt for the periods shown:
March 31, 2025
March 31, 2026Total debt$  273,792
$  280,024Less: Cash, cash equivalents, and restricted cash(48,788)
(40,818)Net debt225,004
239,206Unsettled transaction costs3,551
—Adjusted net debt$  228,555
$  239,206



12-month trailing adjusted EBITDA$    67,322
$    97,032Adjusted net debt to adjusted EBITDA ratio3.39
2.47 View original content to download multimedia:https://www.prnewswire.com/news-releases/powerfleet-reports-results-for-fourth-quarter-and-full-year-fiscal-2026-302799808.htmlSOURCE Powerfleet Original: Powerfleet Reports Results for Fourth Quarter and Full-Year Fiscal 2026

Powerfleet Sets Fourth Quarter Fiscal 2026 Conference Call for Monday, June 15, 2026, at 8:30 a.m. ETJune 1, 2026 4:05 PM
PR Newswire (US) WOODCLIFF LAKE, N.J., June 1, 2026 /PRNewswire/ -- Powerfleet, Inc. (Nasdaq: AIOT) today announced that it will hold a conference call on Monday, June 15, 2026, at 8:30 a.m. Eastern time (5:30 a.m. Pacific time) to discuss results for the fourth quarter and fiscal year 2026 ended March 31, 2026. Financial results will be issued in a press release prior to the call. Powerfleet management will host the presentation, followed by a question-and-answer session.Date: Monday, June 15, 2026
Time: 8:30 a.m. Eastern time (5:30 a.m. Pacific time)
Toll Free: 888-506-0062
International: 973-528-0011
Participant Access Code:  931158The conference call will be broadcast simultaneously and available for replay here and via the investor section of the company's website at ir.powerfleet.com.ABOUT POWERFLEET
Powerfleet (Nasdaq: AIOT; JSE: PWR) is a global leader in the artificial intelligence of things (AIoT) software-as-a-service (SaaS) mobile asset industry. With more than 30 years of experience, Powerfleet unifies business operations through the ingestion, harmonization, and integration of data, irrespective of source, and delivers actionable insights to help companies save lives, time, and money. Powerfleet's ethos transcends our data ecosystem and commitment to innovation; our people-centric approach empowers our customers to realize impactful and sustained business improvement. The company is headquartered in New Jersey, United States, with offices around the globe. Explore more at www.powerfleet.com. Powerfleet has a primary listing on The Nasdaq Global Market and a secondary listing on the Main Board of the Johannesburg Stock Exchange (JSE).Powerfleet Investor Contacts
Carolyn Capaccio and Jody Burfening
Alliance Advisors IR
AIOTIRTeam@allianceadvisors.comPowerfleet Media Contact
Jonathan Bates
jonathan.bates@powerfleet.com
+44 7921 242 892 View original content to download multimedia:https://www.prnewswire.com/news-releases/powerfleet-sets-fourth-quarter-fiscal-2026-conference-call-for-monday-june-15-2026-at-830-am-et-302787467.htmlSOURCE Powerfleet Original: Powerfleet Sets Fourth Quarter Fiscal 2026 Conference Call for Monday, June 15, 2026, at 8:30 a.m. ET

Powerfleet to Attend June Investor ConferencesMay 29, 2026 1:00 PM
PR Newswire (US) WOODCLIFF LAKE, N.J., May 29, 2026 /PRNewswire/ -- Powerfleet, Inc. (Nasdaq: AIOT) today announced that management is scheduled to attend June 2026 investor conferences to meet with investors to discuss Powerfleet's AIoT platform that is already delivering results at scale with strong financial discipline and a clear roadmap to shareholder value as follows: Wednesday, June 3, 2026: William Blair's 46th Annual Growth Stock ConferenceTuesday, June 23, 2026: Northland Growth Conference 2026ABOUT POWERFLEET
Powerfleet (Nasdaq: AIOT; JSE: PWR) is a global leader in the artificial intelligence of things (AIoT) software-as-a-service (SaaS) mobile asset industry. Powerfleet unifies business operations through the ingestion, harmonization, and integration of data, irrespective of source, and delivers actionable insights to help companies save lives, time, and money. Powerfleet's ethos transcends our data ecosystem and commitment to innovation; our people-centric approach empowers our customers to realize impactful and sustained business improvement. The company is headquartered in New Jersey, United States, with offices around the globe. Explore more at www.powerfleet.com. Powerfleet has a primary listing on The Nasdaq Global Market and a secondary listing on the Main Board of the Johannesburg Stock Exchange (JSE).Powerfleet Investor Contacts
Carolyn Capaccio and Jody Burfening
Alliance Advisors IR
AIOTIRTeam@allianceadvisors.comPowerfleet Media Contact
Jonathan Bates
jonathan.bates@powerfleet.com
+44 7921 242 892 View original content to download multimedia:https://www.prnewswire.com/news-releases/powerfleet-to-attend-june-investor-conferences-302785916.htmlSOURCE Powerfleet Original: Powerfleet to Attend June Investor Conferences

Powerfleet to Attend May Investor ConferencesMay 11, 2026 8:00 AM
PR Newswire (US) WOODCLIFF LAKE, N.J., May 11, 2026 /PRNewswire/ -- Powerfleet, Inc. (Nasdaq: AIOT) today announced that management is scheduled to attend May 2026 investor conferences to meet with investors to discuss Powerfleet's AIoT platform that is already delivering results at scale with strong financial discipline and a clear roadmap to shareholder value as follows: Wednesday, May 13, 2026: 21st Annual Needham Technology, Media, & Consumer ConferenceThursday, May 28, 2026: 23rd Annual Craig-Hallum Institutional Investor ConferenceABOUT POWERFLEET
Powerfleet (Nasdaq: AIOT; JSE: PWR) is a global leader in the artificial intelligence of things (AIoT) software-as-a-service (SaaS) mobile asset industry. Powerfleet unifies business operations through the ingestion, harmonization, and integration of data, irrespective of source, and delivers actionable insights to help companies save lives, time, and money. Powerfleet's ethos transcends our data ecosystem and commitment to innovation; our people-centric approach empowers our customers to realize impactful and sustained business improvement. The company is headquartered in New Jersey, United States, with offices around the globe. Explore more at www.powerfleet.com. Powerfleet has a primary listing on The Nasdaq Global Market and a secondary listing on the Main Board of the Johannesburg Stock Exchange (JSE).Powerfleet Investor Contacts
Carolyn Capaccio and Jody Burfening
Alliance Advisors IR
AIOTIRTeam@allianceadvisors.comPowerfleet Media Contact
Jonathan Bates
jonathan.bates@powerfleet.com
+44 7921 242 892 View original content to download multimedia:https://www.prnewswire.com/news-releases/powerfleet-to-attend-may-investor-conferences-302767325.htmlSOURCE Powerfleet Original: Powerfleet to Attend May Investor Conferences

Powerfleet to Present at the 38th Annual Roth ConferenceMarch 19, 2026 8:00 AM
PR Newswire (US)

WOODCLIFF LAKE, N.J., March 19, 2026 /PRNewswire/ -- Powerfleet, Inc. (Nasdaq: AIOT) today announced that management is scheduled to meet with investors at the 38th Annual Roth Conference on Monday and Tuesday, March 23rd and 24th, to discuss Powerfleet's scaled AIoT platform, strong financial performance and clear roadmap to shareholder value. The link to the live webcast of the Company's fireside chat at 2;30pm ET on Tuesday March 24th will be available by visiting Powerfleet's website at https://ir.powerfleet.com/events-presentations/events.







About Powerfleet
Powerfleet (Nasdaq: AIOT; JSE: PWR) is a global leader in the artificial intelligence of things (AIoT) software-as-a-service (SaaS) mobile asset industry. With more than 30 years of experience, Powerfleet unifies business operations through the ingestion, harmonization, and integration of data, irrespective of source, and delivers actionable insights to help companies save lives, time, and money. Powerfleet's ethos transcends our data ecosystem and commitment to innovation; our people-centric approach empowers our customers to realize impactful and sustained business improvement. The company is headquartered in New Jersey, United States, with offices around the globe. Explore more at www.powerfleet.com. Powerfleet has a primary listing on The Nasdaq Global Market and a secondary listing on the Main Board of the Johannesburg Stock Exchange (JSE).Powerfleet Investor Contacts
Carolyn Capaccio and Jody Burfening
Alliance Advisors IR
AIOTIRTeam@allianceadvisors.comPowerfleet Media Contact
Jonathan Bates
jonathan.bates@powerfleet.com
+44 7921 242 892



View original content to download multimedia:https://www.prnewswire.com/news-releases/powerfleet-to-present-at-the-38th-annual-roth-conference-302717979.htmlSOURCE Powerfleet

Original: Powerfleet to Present at the 38th Annual Roth Conference

PowerFleet Shares Slip Despite Record Q3 Revenue and Profit GainsFebruary 9, 2026 10:25 AM
IH Market News
PowerFleet, Inc. (NASDAQ:AIOT) posted stronger-than-expected third-quarter results on Monday, delivering record revenue and a sharp improvement in profitability, but its shares still fell more than 4% in premarket trading as investors digested updated guidance.The company reported third-quarter revenue of $113.5 million, beating analyst expectations of $111.78 million and rising 7% from $106.4 million a year earlier. Adjusted earnings per share came in at $0.02, ahead of the consensus forecast of breakeven results.PowerFleet also delivered a notable turnaround at the operating level, generating an operating profit of $6.3 million compared with an operating loss of $1.2 million in the same quarter last year. Adjusted EBITDA rose 26% year over year to $25.7 million, with margins expanding to 23% from 19%.Growth was driven largely by services revenue, which now accounts for about 80% of total sales. Services revenue increased 11% year over year to $91.1 million, underscoring the company’s shift toward more predictable, recurring revenue streams.“This was the first quarter in which year-over-year results reflect the total combined businesses, and Powerfleet delivered another quarter of solid execution across the organization,” said Steve Towe, Chief Executive Officer of Powerfleet.Despite the operational momentum, market sentiment appeared to turn on guidance. PowerFleet narrowed its full-year revenue outlook to $440 million to $445 million, compared with a prior range of $435 million to $445 million. At the same time, it reduced its adjusted EBITDA growth forecast to roughly 45% year over year, down from a previous range of 45% to 55%.Management said the revision reflects additional investment required to support a major public-sector contract in South Africa covering more than 100,000 subscriber assets.The company reiterated that it expects to improve its adjusted net debt to adjusted EBITDA leverage ratio by about one full turn by the end of the fiscal year, although the target was revised to 2.4x from the earlier 2.25x guidance.PowerFleet stock price

Original: PowerFleet Shares Slip Despite Record Q3 Revenue and Profit Gains

AIOT reports Monday 6/16