Accessibility StatementSkip Navigation WOODCLIFF LAKE, N.J., Sept. 12, 2025 /PRNewswire/ -- Powerfleet, Inc. (Nasdaq: AIOT) today announced that management is scheduled to attend the Barrington Research Virtual Fall Investment Conference on Tuesday, September 16 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. ABOUT POWERFLEETPowerfleet (Nasdaq: AIOT; JSE: PWR) is a global lea ...

Group 1 - The article discusses the importance of real-time buy and sell signals in identifying trading opportunities within a community focused on high-growth potential stocks [1][2] - PowerFleet (AIOT) has merged with MiX, enhancing its asset-tracking Unity platform to better serve larger customers while transitioning from hardware to software (SaaS) sales [2] - The SHU Growth Portfolio service offers a buy and hold strategy with a focus on small companies that have multi-bagger potential, providing portfolio updates and buy alerts [2] Group 2 - The analyst has a beneficial long position in AIOT shares, indicating confidence in the company's future performance [3] - Seeking Alpha emphasizes that past performance does not guarantee future results and that opinions expressed may not reflect the views of the platform as a whole [4]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ————————— FORM 10-Q ————————— (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____ to ____ Commission File Number: 001-39080 POWERFLEET, INC. (Exact name of registrant as specified in its charter) Delaware 83-4366463 ...

Core Insights - PowerFleet reported revenue of $104.12 million for the quarter ended June 2025, marking a year-over-year increase of 38% and exceeding the Zacks Consensus Estimate of $103.26 million by 0.84% [1] - The company achieved an EPS of $0.01, a significant improvement from -$0.21 a year ago, although it did not deliver an EPS surprise as the consensus estimate was also $0.01 [1] Revenue Breakdown - Service revenue was reported at $86.46 million, surpassing the average estimate of $82.29 million by two analysts, reflecting a year-over-year increase of 52.5% [4] - Product revenue was reported at $17.66 million, which fell short of the average estimate of $21.58 million, representing a year-over-year decline of 5.8% [4] Profitability Metrics - Gross profit from product sales was $4.43 million, below the average estimate of $6.91 million by two analysts [4] - Gross profit from service sales was $52.05 million, also below the average estimate of $55.17 million based on two analysts [4] Stock Performance - Over the past month, PowerFleet's shares have returned -8.7%, contrasting with the Zacks S&P 500 composite's increase of 2.7% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating it may perform in line with the broader market in the near term [3]

PowerFleet (AIOT) Q1 2025 Earnings Call August 11, 2025 08:30 AM ET Speaker0Greetings. Welcome to PowerFleet's First Quarter twenty twenty six Earnings Call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. Please note this conference is being recorded.I will now turn the conference over to your host, David Wilson, PowerFleet's Chief Financial Officer. You may begin.Speaker1Thank you, operator, and I'm delighted to welcome everyone ...

PowerFleet (AIOT) came out with quarterly earnings of $0.01 per share, in line with the Zacks Consensus Estimate . This compares to a loss of $0.21 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this maker of tracking and communications technology for fleet vehicles would post a loss of $0.02 per share when it actually produced a loss of $0.09, delivering a surprise of -350%. Over the last four quarters, the company has not been able to surpass ...

Financial Performance - Total revenue increased by 38% year-over-year to $104.1 million[17] - Adjusted EBITDA increased by 58% year-over-year to $21.6 million[17] - Adjusted EBITDA gross margins increased from 64% to 67% year-over-year[17] - Service revenue grew sequentially by 6% and now represents 83% of total revenue[17, 56] - Net debt to EBITDA ratio improved to 2.97x compared to 3.17x in the prior quarter[17] Go-to-Market Momentum - New logo wins increased sequentially by 14% QoQ, with over 175 B2B customers[18] - AI video ARR bookings increased by 52% compared to the previous quarter, driven by indirect channel partners[18] - In-warehouse recurring revenue increased by 24% year-over-year[19] - ARR pipeline build increased by 19% compared to the prior quarter[19] Key Wins and Partnerships - Secured strategic deals with TCV ranging from $400K+ to $750K+ with companies in logistics, food & beverage, rental & leasing, agriculture, and manufacturing[21] - Partnered with MTN Business, one of the world's largest mobile network operators with $7.4 billion annual revenue and 297 million customers, to accelerate enterprise IoT adoption[22, 23] - Won a large-scale operation-wide deployment with SIXT Rental, focusing on AI-powered control over costs, productivity, and accountability[24, 25] Transformation Initiatives - Actioned $11 million in annualized savings in Q1 FY26, part of the $18 million committed for FY26[68, 70] - Expects Net Debt to EBITDA to improve from ~3.25 times at year end FY25 to less than 2.25 times at year end FY26[63, 64]

[Executive Summary & Q1 FY2026 Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Q1%20FY2026%20Highlights) Powerfleet reported a strong start to FY2026, with significant sequential growth in services revenue, robust year-over-year total revenue growth, and substantial expansion in Adjusted EBITDA and gross margins, leading to raised full-year revenue guidance [Key Financial & Operational Achievements](index=1&type=section&id=Key%20Financial%20%26%20Operational%20Achievements) Powerfleet reported a strong start to FY2026, with significant sequential growth in services revenue, robust year-over-year total revenue growth, and substantial expansion in Adjusted EBITDA and gross margins. The company also raised its full-year revenue guidance | Metric | Q1 FY2026 | Q4 FY2025 | Sequential Change | YoY Change | | :-------------------------------- | :---------- | :---------- | :---------------- | :--------- | | Services Revenue (Millions USD) | $86.5 | $81.8 | +6% | +53% | | Total Revenue (Millions USD) | $104.1 | - | - | +38% | | Services Revenue as % of Total | 83% | 79% | +4 pp | +8 pp | | Adjusted EBITDA (Millions USD) | $21.6 | - | - | +58% | | Adjusted EBITDA Margin | 21% | - | +260 bps | - | | Adjusted EBITDA Gross Margins | 67% | - | +3% | - | - The EBITDA expansion program delivered **$11 million in annual savings**, achieving **60% of the full-year target of $18 million**[2](index=2&type=chunk) | Metric | New FY2026 Guidance (Millions USD) | Prior FY2026 Guidance (Millions USD) | | :-------------------- | :------------------ | :-------------------- | | Total Revenue | $430-$440 | $420-$440 | [Management Commentary](index=1&type=section&id=MANAGEMENT%20COMMENTARY) CEO Steve Towe highlighted the strong Q1 performance, attributing it to accelerating adoption of Unity's AI-driven SaaS solutions and a successful transition to a recurring, high-margin business model. He emphasized robust market demand, particularly through indirect channels, and efficient scaling across verticals - The company's performance underscores accelerating adoption of Unity's AI-driven SaaS solutions and validates the long-term value creation through a transition to a recurring, high-margin business model[5](index=5&type=chunk) | Metric | Q1 FY2026 | | :-------------------- | :---------- | | AI Video ARR Bookings | +52% QoQ | | New Logo Wins | +14% Sequential | | Six-figure ARR Deals | Across 11 diverse industry sectors | - Services revenue represented a record **83% of total revenue**, highlighting a successful shift to higher-quality SaaS revenue while navigating tariff headwinds and accelerating supply chain efficiencies[5](index=5&type=chunk) [Detailed Q1 FY2026 Performance](index=2&type=section&id=FIRST%20QUARTER%20FY2026%20OPERATIONAL%20AND%20FINANCIAL%20HIGHLIGHTS) This section provides an in-depth review of Powerfleet's operational achievements and financial results for Q1 FY2026, highlighting growth drivers and efficiency gains [Operational Momentum](index=2&type=section&id=Operational%20Momentum) Powerfleet demonstrated strong operational momentum in Q1 FY2026, marked by significant ARR wins across diverse sectors, robust indirect channel performance, and strategic partnerships. The company also received industry recognition for its innovation and launched a new AI-powered risk application [Go-To-Market Momentum](index=2&type=section&id=Go-To-Market%20Momentum_sub) The company achieved over $100k ARR wins across 11 diverse sectors and saw strong indirect channel partner momentum, with AI video bookings surging 52% quarter-over-quarter. A major strategic sales channel partnership was signed with MTN Group - **11 diverse sectors** contributed to ARR wins over **$100k**[12](index=12&type=chunk) | Metric | Q1 FY2026 | | :-------------------- | :---------- | | AI Video Bookings | +52% QoQ | | Indirect Channel Partner Momentum | Strong, contributing significantly to ARR | - A major new strategic sales channel partnership was signed with MTN Group, one of the world's largest network providers, to white label Powerfleet's portfolio of solutions to enterprise customers[12](index=12&type=chunk) [Technology and Innovation](index=2&type=section&id=Technology%20and%20Innovation) Powerfleet was recognized by ABI Research as one of the 7 most innovative global tech companies and launched a new AI-powered automated risk application. The company also announced an upcoming Investor Innovation Session - Powerfleet was ranked by ABI Research as one of the **7 most innovative global tech companies**[12](index=12&type=chunk) - Launched new AI-powered automated risk application to drive top-tier quantifiable enterprise safety benefits[12](index=12&type=chunk) - Powerfleet will host an Investor Innovation Session showcasing Unity AIoT product and technology in November 2025[12](index=12&type=chunk) [Financial Performance](index=2&type=section&id=First%20Quarter%20Financial%20Highlights) The first quarter saw significant financial improvements, including substantial revenue growth driven by services, expanded gross margins, and a notable increase in Adjusted EBITDA. The company also improved its net loss per share and reduced its net debt leverage ratio [Revenue and Gross Profit](index=2&type=section&id=Revenue%20and%20Gross%20Profit) Total revenue increased by 38% year-over-year to $104.1 million, primarily due to the Fleet Complete acquisition and organic growth in recurring services. Services revenue surged 53% YoY and 6% sequentially, now comprising a record 83% of total revenue, contributing to a 300 basis point expansion in adjusted EBITDA gross margin to 67% | Metric | Q1 FY2026 (Millions USD) | Q1 FY2025 (Millions USD) | YoY Change | | :-------------------- | :---------- | :---------- | :--------- | | Total Revenue | $104.1 | $75.43 | +38% | | Services Revenue | $86.5 | $56.69 | +53% | | Services Revenue as % of Total | 83% | 75% | +8 pp | | Adjusted EBITDA Gross Margin | 67% | 64% | +300 bps | [Operating Expenses](index=2&type=section&id=Operating%20Expenses) Total operating expenses were $58.5 million, with adjusted operating expenses at $54.3 million after excluding one-time transaction and restructuring costs. General and administrative expenses improved by 400 basis points as a percentage of revenue, while sales and marketing expenses increased due to planned growth reinvestments | Metric | Q1 FY2026 (Millions USD) | Q1 FY2025 (Millions USD) | Change (Millions USD) | | :------------------------------------------ | :---------- | :---------- | :-------------------- | | Total Operating Expenses | $58.5 | $57.88 | +$0.64 | | Adjusted Operating Expenses | $54.3 | $37.49 | +$16.78 | | G&A Expense as % of Revenue (Adjusted EBITDA) | 26% | 30% | -400 bps | | Sales & Marketing Expense as % of Revenue | 17% | 12% | +500 bps | | R&D Expense as % of Total Revenue | 5% | 4% | +100 bps | [Adjusted EBITDA and Net Loss](index=3&type=section&id=Adjusted%20EBITDA%20and%20Net%20Loss) Adjusted EBITDA increased 58% to $21.6 million, driven by the Fleet Complete acquisition, organic growth, margin expansion, and cost synergies. Net loss attributable to common stockholders improved to $0.08 per share from $0.21 per share in the prior year, with adjusted net income per share reaching $0.01 | Metric | Q1 FY2026 (Millions USD) | Q1 FY2025 (Millions USD) | YoY Change | | :------------------------------------------ | :---------- | :---------- | :--------- | | Adjusted EBITDA | $21.6 | $13.7 | +58% | | Net Loss Attributable to Common Stockholders per Share (USD) | $(0.08) | $(0.21) | Improved | | Adjusted Net Income per Share (USD) | $0.01 | $0.00 | Improved | [Debt and Leverage](index=3&type=section&id=Debt%20and%20Leverage) The adjusted net debt to adjusted EBITDA ratio improved to 2.97x from 3.22x at the end of fiscal year 2025. Net debt at quarter end stood at $234.8 million, comprising $35.6 million in cash and $270.4 million in total debt | Metric | Q1 FY2026 | FY2025 End | | :-------------------------------- | :---------- | :--------- | | Adjusted Net Debt to Adjusted EBITDA | 2.97x | 3.22x | | Net Debt at Quarter End (Millions USD) | $234.8 | - | | Cash and Cash Equivalents (Millions USD) | $35.6 | - | | Total Debt (Millions USD) | $270.4 | - | [Financial Outlook & Investor Information](index=3&type=section&id=FULL-YEAR%202026%20FINANCIAL%20OUTLOOK) This section outlines Powerfleet's updated full-year 2026 financial guidance, details for the investor conference call, and explanations of non-GAAP financial measures [Full-Year 2026 Financial Outlook](index=3&type=section&id=FULL-YEAR%202026%20FINANCIAL%20OUTLOOK_sub) Powerfleet increased its full-year 2026 revenue guidance to $430-$440 million, while maintaining its guidance for annual adjusted EBITDA growth of 45% to 55% and an improved adjusted net debt to adjusted EBITDA leverage ratio below 2.25x by March 31, 2026 | Metric | New FY2026 Guidance (Millions USD) | Prior FY2026 Guidance (Millions USD) | | :-------------------- | :------------------ | :-------------------- | | Total Revenue | $430-$440 | $420-$440 | | Metric | FY2026 Guidance | | :------------------------------------------ | :-------------- | | Annual Adjusted EBITDA Growth | 45% to 55% | | Adjusted Net Debt to Adjusted EBITDA Leverage Ratio | Below 2.25x by March 31, 2026 (from 3.2x as of March 31, 2025) | [Investor Conference Call Details](index=3&type=section&id=INVESTOR%20CONFERENCE%20CALL%20AND%20BUSINESS%20UPDATE) Powerfleet announced an investor conference call on Monday, August 11, 2025, at 8:30 a.m. Eastern time to discuss Q1 FY2026 results and provide a business update, with access details provided for participants and webcast replay - A conference call to discuss Q1 FY2026 results and provide a business update will be held on Monday, August 11, 2025, at **8:30 a.m. Eastern time**[16](index=16&type=chunk) - Access details for the conference call include toll-free (888-506-0062), international (973-528-0011), and participant access code (321752) A webcast and accompanying slide presentation will be available via ir.powerfleet.com[16](index=16&type=chunk) [Non-GAAP Financial Measures Explanation](index=3&type=section&id=NON-GAAP%20FINANCIAL%20MEASURES) Powerfleet provides several non-GAAP financial measures, such as adjusted EBITDA and adjusted net income per share, to supplement GAAP financial statements. These measures are intended to enhance investors' understanding of core operating results by excluding certain non-recurring or non-operational items - Powerfleet provides non-GAAP measures including adjusted EBITDA, adjusted EBITDA gross margin, adjusted EBITDA gross profit, adjusted EBITDA service margin, adjusted product margin, adjusted EBITDA operating expenses, adjusted net income per share, and net debt[17](index=17&type=chunk) - These non-GAAP measures are provided to enhance investors' overall understanding of Powerfleet's current financial performance by excluding certain expenses, gains, losses, and currency fluctuations that may not be indicative of core operating results[17](index=17&type=chunk) [Company Information & Disclosures](index=4&type=section&id=ABOUT%20POWERFLEET) This section presents an overview of Powerfleet's business, cautionary statements regarding forward-looking information, and contact details for investor and media relations [About Powerfleet](index=4&type=section&id=ABOUT%20POWERFLEET_sub) Powerfleet is a global leader in the Artificial Intelligence of Things (AIoT) software-as-a-service (SaaS) mobile asset industry, with over 30 years of experience. The company unifies business operations through data ingestion and integration, delivering actionable insights to help clients save lives, time, and money - Powerfleet is a global leader in the artificial intelligence of things (AIoT) software-as-a-service (SaaS) mobile asset industry, unifying business operations and delivering actionable insights[19](index=19&type=chunk) - The company is headquartered in New Jersey, United States, with offices globally, and is listed on The Nasdaq Global Market (AIOT) and the Johannesburg Stock Exchange (JSE: PWR)[19](index=19&type=chunk) [Cautionary Note Regarding Forward-Looking Statements](index=4&type=section&id=CAUTIONARY%20NOTE%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) This section advises readers that the press release contains forward-looking statements, which are subject to various known and unknown risks and uncertainties. Actual results may differ materially from expectations, and readers should not place undue reliance on these statements - The press release contains forward-looking statements, which are predictions of future events and are subject to significant known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially[20](index=20&type=chunk)[21](index=21&type=chunk) - Key risks include challenges related to business combinations (MiX Telematics, Fleet Complete), global economic conditions, supply chain disruptions, technological changes, cybersecurity, intellectual property protection, competitive pressures, international political and economic landscapes, and changes in laws and regulations[21](index=21&type=chunk) [Investor & Media Contacts](index=5&type=section&id=Powerfleet%20Investor%20Contacts) Contact information is provided for investor relations and media inquiries for Powerfleet - Investor contacts are Carolyn Capaccio and Jody Burfening at Alliance Advisors IR (AIOTIRTeam@allianceadvisors.com)[23](index=23&type=chunk) - Media contact is Jonathan Bates (jonathan.bates@powerfleet.com, +44 121 717-5360)[23](index=23&type=chunk) [Condensed Consolidated Financial Statements](index=6&type=section&id=POWERFLEET%2C%20INC.%20AND%20SUBSIDIARIES%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) This section contains the official GAAP financial statements, including statements of operations, balance sheets, and cash flows for the reported periods [Condensed Consolidated Statements of Operations](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) This section presents the condensed consolidated statements of operations for the three months ended June 30, 2025, and 2024, detailing revenues, cost of revenues, gross profit, operating expenses, and net loss attributable to common stockholders | | Three Months Ended June 30, 2024 (Thousands USD) | Three Months Ended June 30, 2025 (Thousands USD) | | :------------------------------------------ | :------------------------------- | :------------------------------- | | **Revenues:** | | | | Products | $18,738 | $17,657 | | Services | 56,692 | 86,464 | | **Total revenues** | **75,430** | **104,121** | | **Cost of revenues:** | | | | Cost of products | 12,751 | 13,228 | | Cost of services | 23,031 | 34,412 | | **Total cost of revenues** | **35,782** | **47,640** | | **Gross profit** | **39,648** | **56,481** | | **Operating expenses:** | | | | Selling, general and administrative expenses | 54,782 | 53,663 | | Research and development expenses | 3,101 | 4,857 | | **Total operating expenses** | **57,883** | **58,520** | | **Loss from operations** | **(18,235)** | **(2,039)** | | Interest income | 304 | 196 | | Interest expense, net | (2,691) | (6,786) | | Other expense, net | (624) | (1,243) | | **Net loss before income taxes** | **(21,246)** | **(9,872)** | | Income tax expense | (1,053) | (362) | | **Net loss before non-controlling interest** | **(22,299)** | **(10,234)** | | Non-controlling interest | (13) | — | | **Net loss** | **(22,312)** | **(10,234)** | | Preferred stock dividend | (25) | — | | **Net loss attributable to common stockholders** | **$(22,337)** | **$(10,234)** | | Net loss per share attributable to common stockholders - basic and diluted (USD) | $(0.21) | $(0.08) | | Weighted average common shares outstanding - basic and diluted | 107,136 | 133,313 | [Condensed Consolidated Balance Sheets](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) This section provides the condensed consolidated balance sheets as of June 30, 2025, and March 31, 2025, detailing the company's assets, liabilities, and stockholders' equity | | March 31, 2025 (Thousands USD) | June 30, 2025 (Thousands USD) | | :------------------------------------------ | :------------- | :------------ | | **ASSETS** | | | | Current assets: | | | | Cash and cash equivalents | $44,392 | $31,196 | | Restricted cash | 4,396 | 4,447 | | Accounts receivables, net | 78,623 | 81,482 | | Inventory, net | 18,350 | 23,892 | | Prepaid expenses and other current assets | 23,319 | 26,762 | | **Total current assets** | **169,080** | **167,779** | | Fixed assets, net | 58,011 | 62,712 | | Goodwill | 383,146 | 394,668 | | Intangible assets, net | 258,582 | 263,745 | | Right-of-use asset | 12,339 | 11,935 | | Severance payable fund | 3,796 | 4,097 | | Deferred tax asset | 3,934 | 3,926 | | Other assets | 21,183 | 21,920 | | **Total assets** | **$910,071** | **$930,782** | | **LIABILITIES** | | | | Current liabilities: | | | | Short-term bank debt and current maturities of long-term debt | $41,632 | $37,426 | | Accounts payable | 41,599 | 48,341 | | Accrued expenses and other current liabilities | 45,327 | 48,755 | | Deferred revenue - current | 17,375 | 17,116 | | Lease liability - current | 5,076 | 4,965 | | **Total current liabilities** | **151,009** | **156,603** | | Long-term debt - less current maturities | 232,160 | 232,954 | | Deferred revenue - less current portion | 5,197 | 5,133 | | Lease liability - less current portion | 8,191 | 7,994 | | Accrued severance payable | 6,039 | 6,754 | | Deferred tax liability | 57,712 | 57,387 | | Other long-term liabilities | 3,021 | 3,077 | | **Total liabilities** | **463,329** | **469,902** | | **STOCKHOLDERS' EQUITY** | | | | Preferred stock | — | — | | Common stock | 1,343 | 1,343 | | Additional paid-in capital | 671,400 | 673,253 | | Accumulated deficit | (205,783) | (216,017) | | Accumulated other comprehensive loss | (8,850) | 13,669 | | Treasury stock | (11,518) | (11,518) | | **Total stockholders' equity** | **446,592** | **460,730** | | Non-controlling interest | 150 | 150 | | **Total equity** | **446,742** | **460,880** | | **Total liabilities and stockholders' equity** | **$910,071** | **$930,782** | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) This section presents the condensed consolidated statements of cash flows for the three months ended June 30, 2025, and 2024, outlining cash flows from operating, investing, and financing activities, as well as the effect of foreign exchange rate changes on cash | | Three Months Ended June 30, 2024 (Thousands USD) | Three Months Ended June 30, 2025 (Thousands USD) | | :---------------------------------------------------- | :------------------------------- | :------------------------------- | | **Cash flows from operating activities** | | | | Net loss | $(22,312) | $(10,234) | | Adjustments to reconcile net loss to cash (used in) provided by operating activities: | | | | Non-controlling interest | 13 | — | | Inventory reserve | 257 | 193 | | Stock based compensation expense | 5,929 | 1,853 | | Depreciation and amortization | 10,335 | 16,031 | | Right-of-use assets, non-cash lease expense | 760 | 974 | | Derivative mark-to-market adjustment | — | 104 | | Bad debts expense | 1,993 | 1,856 | | Deferred income taxes | 1,021 | (3,157) | | Shares issued for transaction bonuses | 889 | — | | Lease termination and modification losses | — | 59 | | Other non-cash items | 482 | (513) | | Changes in operating assets and liabilities: | | | | Accounts receivables | (6,973) | (2,391) | | Inventories | (624) | (4,733) | | Prepaid expenses and other current assets | (1,518) | (1,284) | | Deferred costs | (1,789) | (2,730) | | Deferred revenue | (142) | (420) | | Accounts payable, accrued expenses and other current liabilities | 4,993 | 9,637 | | Lease liabilities | (927) | (881) | | Accrued severance payable, net | (2) | 357 | | **Net cash (used in) provided by operating activities** | **(7,615)** | **4,721** | | **Cash flows from investing activities:** | | | | Acquisition, net of cash assumed | 27,531 | — | | Proceeds from sale of fixed assets | — | 16 | | Capitalized software development costs | (2,308) | (3,724) | | Capital expenditures | (5,586) | (8,114) | | **Net cash provided by (used in) investing activities** | **19,637** | **(11,822)** | | **Cash flows from financing activities:** | | | | Repayment of long-term debt | (493) | (1,341) | | Short-term bank debt, net | 4,161 | (5,428) | | Purchase of treasury stock upon vesting of restricted stock | (2,836) | — | | Payment of preferred stock dividend and redemption of preferred stock | (90,298) | — | | Cash paid on dividends to affiliates | (4) | — | | **Net cash used in financing activities** | **(89,470)** | **(6,769)** | | Effect of foreign exchange rate changes on cash and cash equivalents | (823) | 725 | | **Net decrease in cash and cash equivalents, and restricted cash** | **(78,271)** | **(13,145)** | | 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** | **$31,393** | **$35,643** | | **Reconciliation of cash, cash equivalents, and restricted cash, end of the period** | | | | Cash and cash equivalents | 30,242 | 31,196 | | Restricted cash | 1,151 | 4,447 | | **Cash, cash equivalents, and restricted cash, end of the period** | **$31,393** | **$35,643** | | **Supplemental disclosure of cash flow information:** | | | | Cash paid (received) for: | | | | Taxes | $41 | $873 | | Interest | $3,057 | $5,994 | | **Noncash investing and financing activities:** | | | | Common stock issued for transaction bonus | $9 | $— | | Shares issued in connection with MiX Combination | $362,005 | $— | [Reconciliation of Non-GAAP Financial Measures](index=10&type=section&id=RECONCILIATION%20OF%20GAAP%20TO%20ADJUSTED%20EBITDA%20FINANCIAL%20MEASURES) This section provides detailed reconciliations of GAAP figures to non-GAAP measures like Adjusted EBITDA, non-GAAP net income, and adjusted gross profit margins [Reconciliation of GAAP to Adjusted EBITDA](index=10&type=section&id=RECONCILIATION%20OF%20GAAP%20TO%20ADJUSTED%20EBITDA%20FINANCIAL%20MEASURES_sub) This section provides a reconciliation of Net Loss Attributable to Common Stockholders (GAAP) to Adjusted EBITDA (Non-GAAP) for the three months ended June 30, 2025, and 2024, detailing various adjustments | | Three Months Ended June 30, 2024 (Thousands USD) | Three Months Ended June 30, 2025 (Thousands USD) | | :------------------------------------------ | :------------------------------- | :------------------------------- | | Net loss attributable to common stockholders | $(22,337) | $(10,234) | | Non-controlling interest | 13 | — | | Preferred stock dividend | 25 | — | | Interest expense, net | 2,916 | 6,590 | | Other expense, net | — | 23 | | Income tax expense | 1,053 | 362 | | Depreciation and amortization | 10,335 | 16,031 | | Stock-based compensation | 5,929 | 1,853 | | Foreign currency losses | 109 | 1,161 | | Restructuring-related expenses | 1,198 | 2,442 | | Derivative mark-to-market adjustment | — | 104 | | Recognition of pre-October 1, 2024 contract assets (Fleet Complete) | — | 1,503 | | Acquisition-related expenses | 14,494 | 1,130 | | Integration-related expenses | — | 675 | | **Adjusted EBITDA** | **$13,735** | **$21,640** | [Reconciliation of GAAP to Non-GAAP Net Income](index=11&type=section&id=RECONCILIATION%20OF%20GAAP%20TO%20NON-GAAP%20NET%20INCOME%20FINANCIAL%20MEASURES) This section reconciles Net Loss (GAAP) to Non-GAAP Net Income for the three months ended June 30, 2025, and 2024, by adjusting for items such as intangible asset amortization, stock-based compensation, foreign currency impacts, and acquisition-related expenses | | Three Months Ended June 30, 2024 (Thousands USD) | Three Months Ended June 30, 2025 (Thousands USD) | | :---------------------------------------------------- | :------------------------------- | :------------------------------- | | Net loss | $(22,312) | $(10,234) | | Incremental intangible assets amortization expense as a result of business combinations | 2,995 | 5,830 | | Stock-based compensation (non-recurring/accelerated cost) | 4,693 | — | | Foreign currency losses | 109 | 1,161 | | Income tax effect of net foreign exchange losses | (747) | (496) | | Restructuring-related expenses | 1,198 | 2,442 | | Income tax effect of restructuring costs | (103) | (66) | | Derivative mark-to-market adjustment | — | 104 | | Acquisition-related expenses | 14,494 | 1,130 | | Integration-related expenses | — | 675 | | Inventory rationalization and other | — | 415 | | **Non-GAAP net income** | **$327** | **$961** | | Weighted average shares outstanding | 107,136 | 133,313 | | **Non-GAAP net income per share - basic (USD)** | **$0.00** | **$0.01** | [Adjusted Gross Profit Margins](index=12&type=section&id=ADJUSTED%20GROSS%20PROFIT%20MARGINS) This section details the adjusted gross profit and gross profit margins for products, services, and total operations for the three months ended June 30, 2025, and 2024, including adjustments for depreciation and amortization | | Three Months Ended June 30, 2024 (Thousands USD) | Three Months Ended June 30, 2025 (Thousands USD) | | :------------------------------------------ | :------------------------------- | :------------------------------- | | **Products:** | | | | Product revenues | $18,738 | $17,657 | | Cost of products | 12,751 | 13,228 | | Products gross profit | $5,987 | $4,429 | | Products gross profit margin | 32.0% | 25.1% | | Depreciation and amortization | $— | $— | | Adjusted products gross profit | $5,987 | $4,429 | | Adjusted products gross profit margin | 32.0% | 25.1% | | **Services:** | | | | Services revenues | $56,692 | $86,464 | | Cost of services | 23,031 | 34,412 | | Services gross profit | $33,661 | $52,052 | | Services gross profit margin | 59.4% | 60.2% | | Depreciation and amortization | $8,729 | $13,241 | | Adjusted services gross profit | $42,390 | $65,293 | | Adjusted services gross profit margin | 74.8% | 75.5% | | **Total:** | | | | Total revenues | $75,430 | $104,121 | | Total cost of revenues | 35,782 | 47,640 | | Total gross profit | $39,648 | $56,481 | | Total gross profit margin | 52.6% | 54.2% | | Depreciation and amortization | $8,729 | $13,241 | | Adjusted total gross profit | $48,377 | $69,722 | | Adjusted total gross profit margin | 64.1% | 67.0% | [Non-GAAP Expense Ratios](index=13&type=section&id=NON-GAAP%20EXPENSE%20RATIOS) This section presents non-GAAP selling, general and administrative expenses and research and development expenses, both in absolute terms and as a percentage of total revenues, for the three months ended June 30, 2025, and 2024 | | Three Months Ended June 30, 2024 (Thousands USD) | Three Months Ended June 30, 2025 (Thousands USD) | | :---------------------------------------------------- | :------------------------------- | :------------------------------- | | Total revenues | $75,430 | $104,121 | | **Selling, general and administrative expenses** | | | | Selling, general and administrative expenses | 54,782 | 53,663 | | Restructuring-related expenses | (1,198) | (2,442) | | Acquisition-related expenses | (14,494) | (1,130) | | Integration-related costs | — | (675) | | Depreciation and amortization | (1,606) | (2,790) | | Stock-based compensation | (5,929) | (1,853) | | Non-GAAP selling, general and administrative expenses | 31,555 | 44,773 | | Non-GAAP sales and marketing expenses | 9,052 | 17,958 | | Non-GAAP general and administrative expenses | 22,503 | 26,815 | | Non-GAAP selling, general and administrative expenses | $31,555 | $44,773 | | Non-GAAP sales and marketing expenses as a percentage of total revenue | 12.0% | 17.2% | | Non-GAAP general and administrative expenses as a percentage of total revenue | 29.8% | 25.8% | | **Research and development expenses** | | | | Research and development incurred | $5,213 | $8,559 | | Research and development capitalized | (2,112) | (3,702) | | Research and development expenses | $3,101 | $4,857 | | Research and development incurred as a percentage of total revenues | 6.9% | 8.2% | | Research and development expenses as a percentage of total revenues | 4.1% | 4.7% | [Adjusted Operating Expenses](index=14&type=section&id=ADJUSTED%20OPERATING%20EXPENSES) This section reconciles total operating expenses to adjusted operating expenses for the three months ended June 30, 2025, and 2024, by excluding one-off costs such as acquisition-related expenses, integration costs, stock-based compensation, and restructuring-related expenses | | Three Months Ended June 30, 2024 (Thousands USD) | Three Months Ended June 30, 2025 (Thousands USD) | | :------------------------------------------ | :------------------------------- | :------------------------------- | | Total operating expenses | $57,883 | $58,520 | | Adjusted for once-off costs | | | | Acquisition-related expenses | 14,494 | 1,130 | | Integration-related costs | — | 675 | | Stock-based compensation (non-recurring/accelerated cost) | 4,693 | — | | Restructuring-related expenses | 1,198 | 2,442 | | Total adjustments | 20,385 | 4,247 | | **Adjusted operating expenses** | **$37,498** | **$54,273** |

Core Insights - Powerfleet, Inc. reported a strong financial performance for Q1 FY26, with total revenue increasing by 38% year-over-year to $104.1 million, driven by a significant rise in services revenue, which accounted for 83% of total revenue [1][5][6] - The company achieved an adjusted EBITDA of $21.6 million, reflecting a 58% increase from the previous year, with an adjusted EBITDA margin expanding by 260 basis points to 21% [1][10] - The EBITDA expansion program has already delivered $11 million in annual savings, achieving 60% of the full-year target of $18 million [2] Financial Performance - Services revenue rose by 53% year-over-year and 6% sequentially to $86.5 million, marking a record high proportion of total revenue [1][6] - Gross profit increased by $16.8 million year-over-year to $56.5 million, with adjusted EBITDA gross margins expanding by 3% to 67% [1][8] - The company raised its FY26 total revenue guidance to a range of $430 million to $440 million, up from the previous guidance of $420 million to $440 million [2][12] Operational Highlights - The company noted a 52% quarter-over-quarter growth in AI Video annual recurring revenue (ARR) bookings, indicating strong market demand [3][7] - Powerfleet secured six-figure ARR deals across 11 diverse industry sectors, showcasing efficient scaling of its growth engine [3][7] - The company has signed a major strategic sales channel partnership with MTN Group, enhancing its market reach [7] Cost Management - Total operating expenses for the quarter were $58.5 million, which included $4.2 million in one-time transaction and restructuring costs [8] - Adjusted operating expenses totaled $54.3 million, reflecting ongoing efforts to manage costs effectively [8][32] - General and administrative expenses represented 26% of revenue, showing a 400 basis point improvement from the prior year [9] Debt and Equity - The adjusted net debt to adjusted EBITDA ratio improved to 2.97x from 3.22x at the end of FY25, with net debt at quarter end reported at $234.8 million [11][16] - The net loss attributable to common stockholders was $0.08 per share, an improvement from $0.21 per share in the prior year [10][21]

Core Insights - Powerfleet, Inc. has formed a strategic partnership with MTN Business South Africa to enhance enterprise IoT value creation through AI-driven data insights [1][2] - The collaboration aims to provide a unified platform that combines MTN's connectivity with Powerfleet's AIoT solutions, enabling real-time data intelligence across the supply chain [2][3] Partnership Overview - The partnership is described as a foundational growth initiative, leveraging MTN's extensive network and Powerfleet's Unity AIoT platform to deliver predictive and scalable data solutions [2][4] - MTN will white label Powerfleet's Unity AIoT platform, facilitating wide-scale adoption of intelligent data-driven insights across various sectors [4][5] Market Impact - This joint solution is designed to overcome legacy telematics and fragmented data silos, enhancing the enterprise value of data points and decisions through AI-powered intelligence [3][4] - MTN's recognition as the 1 Most Admired African Brand positions it to effectively scale the partnership's offerings across logistics, mining, transportation, utilities, and manufacturing sectors [5] Company Background - Powerfleet is a leader in AI-powered data solutions, serving 48,000 customers in 120 countries, focusing on optimizing mobile asset performance, safety, and sustainability [6][7] - The Unity platform utilizes advanced AI, machine learning, and IoT connectivity to provide critical insights across various industries [6][7]