Core Insights - PowerFleet Inc. (NASDAQ:AIOT) is identified as a promising tech stock under $10, with a Buy rating and a price target of $15, indicating potential for significant value increase [1][2] Company Overview - PowerFleet Inc. specializes in connected vehicle and fleet management solutions, catering to industrial equipment, transportation, and logistics sectors. Its product offerings include tracking hardware, software platforms, and analytics tools for asset monitoring [4] Market Potential - The company operates in a large market with an estimated total addressable opportunity of $120 billion in fleet and industrial equipment management [3] - Recent acquisitions of MiX Telematics and Fleet Complete have expanded PowerFleet's global market presence and enhanced its product lineup [2][3] Strategic Developments - The Unity platform is a key component of PowerFleet's strategy, contributing to business growth and increased revenue per user [2] - PowerFleet has secured new business deals, particularly in AI video bookings, and maintains a robust pipeline with major channel partners [3] Financial Position - Collaborations with key telecom and automotive companies, along with cost savings from recent integrations, bolster the company's solid financial standing [3]

Core Insights - Powerfleet, Inc. will host its Unity Innovation showcase, a virtual event for financial analysts and institutional investors, on November 14, 2025 [1] - The event will highlight the customer value generated by Unity, Powerfleet's device-agnostic platform that enhances safety, visibility, compliance, sustainability, and operational efficiency [2] Company Overview - Powerfleet is a global leader in the artificial intelligence of things (AIoT) SaaS mobile asset industry, with over 30 years of experience [5] - The company focuses on unifying business operations through data integration and delivering actionable insights to improve efficiency and safety [5] Event Details - Registration for the Unity Innovation showcase is available online, and a live webcast will be accessible on Powerfleet's Investor Relations website [4] - The event will include customer impact stories, an innovation roadmap, and an interactive Q&A session with Powerfleet's management team [8]

Core Insights - Powerfleet, Inc. has won the Industry Innovation Award 2025 at the International Materials Handling Exhibition (IMHX), highlighting the success of its Unity platform in the mobile asset management sector [1][2] - The recognition at IMHX emphasizes Unity's transformative capabilities in the $50 billion European materials handling market, showcasing its global momentum [2][3] Company Overview - Powerfleet is a leader in AI-powered data solutions that enhance mobile asset performance, safety, and sustainability, serving 48,000 customers across 120 countries [4] - The Unity platform integrates warehouse intelligence with on-road performance in a cloud-native, device-agnostic manner, aiming to simplify complex operations [3][4] Product Features - Unity provides real-time AI-driven warehouse safety, on-road driver protection, unified visibility across assets, and sustainability insights that reduce energy use and emissions [6][4] - The platform is designed to eliminate fragmented systems, offering a comprehensive solution for enterprises looking to digitize their operations [3][6]

Core Insights - Powerfleet, Inc. is scheduled to attend the Barrington Research Virtual Fall Investment Conference on September 16, 2025, to discuss its AIoT platform and its commitment to delivering shareholder value [1]. Company Overview - Powerfleet is a global leader in the AIoT software-as-a-service (SaaS) mobile asset industry, with over 30 years of experience [2]. - The company focuses on unifying business operations through data integration and delivering actionable insights to enhance efficiency and safety [2]. - Powerfleet is headquartered in New Jersey, USA, and has a primary listing on Nasdaq and a secondary listing on the Johannesburg Stock Exchange [2]. Financial Performance - Powerfleet reported a 6% sequential growth in services for Q1 FY2026, along with margin expansion and progress towards EBITDA expansion targets [4].

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]

Part I - Financial Information This section presents the unaudited condensed consolidated financial statements and management's analysis of financial condition and results [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements and related notes [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20as%20of%20March%2031%2C%202025%20and%20June%2030%2C%202025) This section presents the company's financial position, detailing assets, liabilities, and equity at specific dates | Metric | March 31, 2025 (in thousands) | June 30, 2025 (in thousands) | Change (in thousands) | | :--- | :--- | :--- | :--- | | Total Assets | $910,071 | $930,782 | +$20,711 | | Total Liabilities | $463,329 | $469,902 | +$6,573 | | Total Equity | $446,742 | $460,880 | +$14,138 | | Cash and cash equivalents | $44,392 | $31,196 | -$13,196 | | Accounts receivables, net | $78,623 | $81,482 | +$2,859 | | Inventory, net | $18,350 | $23,892 | +$5,542 | | Goodwill | $383,146 | $394,668 | +$11,522 | | Intangible assets, net | $258,582 | $263,745 | +$5,163 | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20-%20for%20the%20three%20months%20ended%20June%2030%2C%202024%20and%202025) This section presents the company's financial performance, detailing revenues, expenses, and net loss | Metric | Three Months Ended June 30, 2024 (in thousands) | Three Months Ended June 30, 2025 (in thousands) | Change (in thousands) | % Change | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $75,430 | $104,121 | +$28,691 | +38.0% | | Gross Profit | $39,648 | $56,481 | +$16,833 | +42.5% | | Loss from Operations | $(18,235) | $(2,039) | +$16,196 | -88.8% | | Net Loss | $(22,312) | $(10,234) | +$12,078 | -54.1% | | Net Loss Attributable to Common Stockholders | $(22,337) | $(10,234) | +$12,103 | -54.2% | | Net Loss Per Share (Basic and Diluted) | $(0.21) | $(0.08) | +$0.13 | -61.9% | [Condensed Consolidated Statements of Comprehensive (Loss) Income](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20(Loss)%20Income%20-%20for%20the%20three%20months%20ended%20June%2030%2C%202024%20and%202025) This section reports the total change in equity from non-owner sources, including net loss and foreign currency translation adjustments | Metric | Three Months Ended June 30, 2024 (in thousands) | Three Months Ended June 30, 2025 (in thousands) | Change (in thousands) | | :--- | :--- | :--- | :--- | | Net loss attributable to common stockholders | $(22,337) | $(10,234) | +$12,103 | | Foreign currency translation adjustment | $418 | $22,519 | +$22,101 | | Comprehensive (loss) income | $(21,919) | $12,285 | +$34,204 | [Condensed Consolidated Statement of Changes in Stockholders' Equity](index=10&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Stockholders'%20Equity%20-%20for%20the%20periods%20April%201%2C%202024%20through%20June%2030%2C%202024%20and%20April%201%2C%202025%20through%20June%2030%2C%202025) This section details changes in the company's equity over specific periods, including net loss, foreign currency adjustments, and stock-based compensation | Metric | April 1, 2025 (in thousands) | June 30, 2025 (in thousands) | Change (in thousands) | | :--- | :--- | :--- | :--- | | Total Stockholder's Equity (beginning of period) | $446,742 | $446,742 | - | | Net loss attributable to common stockholders | - | $(10,234) | $(10,234) | | Foreign currency translation adjustment | - | $22,519 | +$22,519 | | Stock-based compensation | - | $1,853 | +$1,853 | | Total Stockholder's Equity (end of period) | $446,742 | $460,880 | +$14,138 | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20-%20for%20the%20three%20months%20ended%20June%2030%2C%202024%20and%202025) This section outlines the company's cash inflows and outflows from operating, investing, and financing activities over specific periods | Metric | Three Months Ended June 30, 2024 (in thousands) | Three Months Ended June 30, 2025 (in thousands) | Change (in thousands) | | :--- | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(7,615) | $4,721 | +$12,336 | | Net cash provided by (used in) investing activities | $19,637 | $(11,822) | -$31,459 | | Net cash used in financing activities | $(89,470) | $(6,769) | +$82,701 | | Net decrease in cash and cash equivalents, and restricted cash | $(78,271) | $(13,145) | +$65,126 | | Cash and cash equivalents, and restricted cash at end of the period | $31,393 | $35,643 | +$4,250 | [Notes to Condensed Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures for the condensed consolidated financial statements, covering significant accounting policies, business combinations, debt, equity, and other financial instruments [Note 1 - Description of the Company and Basis of Presentation](index=13&type=section&id=NOTE%201%20-%20DESCRIPTION%20OF%20THE%20COMPANY%20AND%20BASIS%20OF%20PRESENTATION) This note describes Powerfleet, Inc. as a global AIoT solutions provider and details recent acquisitions - Powerfleet, Inc. is a global provider of Artificial Intelligence-of-Things ("AIoT") solutions for managing high-value enterprise assets[23](index=23&type=chunk) - The company completed the acquisition of MiX Telematics on April 2, 2024, and Fleet Complete on October 1, 2024, with their financial results included in the consolidated statements for the three months ended June 30, 2025[24](index=24&type=chunk)[25](index=25&type=chunk) [Note 2 - Use of Estimates](index=13&type=section&id=NOTE%202%20-%20USE%20OF%20ESTIMATES) This note explains the critical role of management's estimates and assumptions in financial reporting - Management's estimates and assumptions are critical for financial reporting, particularly in areas such as business combinations, allowance for credit losses, income taxes, impairment of intangible assets (including goodwill), capitalized software development costs, and market-based stock-based compensation[27](index=27&type=chunk)[28](index=28&type=chunk) [Note 3 - Acquisition](index=14&type=section&id=NOTE%203%20-%20ACQUISITION) This note details the acquisition of Fleet Complete, including consideration transferred, funding, and goodwill recognition - The FC Acquisition of Fleet Complete was consummated on October 1, 2024, for an estimated fair value of consideration transferred of **$189,950 thousand**[29](index=29&type=chunk)[30](index=30&type=chunk) | Consideration Component | October 1, 2024 (in thousands) | | :--- | :--- | | Fair value of Powerfleet common stock transferred | $21,343 | | Cash consideration to former shareholders | $16,225 | | Repayment of Fleet Complete's existing debt | $152,382 | | Total fair value of consideration | $189,95

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]

Financial Data and Key Metrics Changes - Service revenue grew 53% year-over-year and 6% sequentially to $86.5 million, representing 83% of total revenue, up from 79% in the previous year [20][6][19] - Adjusted EBITDA reached $21.6 million, a 58% increase year-over-year, exceeding consensus estimates by over $1 million [21][19] - Service adjusted EBITDA gross margins hit 76%, contributing to a 300 basis point expansion in adjusted EBITDA gross margins to 67% [23][19] Business Line Data and Key Metrics Changes - AI video bookings increased by 52% quarter-over-quarter, indicating strong demand for Unity solutions [8] - New customer logo wins grew by 14% sequentially, driven by enterprise and mid-market traction [8] - High-value deals of over $100,000 ARR were added across 11 diverse sectors, showcasing the broad appeal of Unity solutions [7] Market Data and Key Metrics Changes - The pipeline with major channel partners in North America improved by 28% sequentially, reflecting robust market engagement [8][52] - The company is seeing increased penetration of safety and compliance modules among major national and international enterprises [9] Company Strategy and Development Direction - The company is focusing on a SaaS-centric strategy to improve predictability, scale margins, and enhance customer lifetime value [6][20] - A partnership with MTM business was announced, which is expected to open a vast total addressable market (TAM) in high-growth regions [10] - The company is committed to mitigating tariff-related cost pressures through strategic supply chain evolution [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit service growth as the year progresses, despite macroeconomic uncertainties [56][58] - The company is optimistic about the trajectory of its SaaS revenue mix and the potential for improved product revenue as market conditions stabilize [67][68] Other Important Information - The company achieved $11 million in annualized savings in Q1 FY 2026, contributing to its goal of $18 million for the full year [28][19] - The net debt to EBITDA ratio improved to 2.97 times, down from 3.2 times at the end of FY 2025 [26] Q&A Session Summary Question: Can you provide metrics around the MTN relationship and its implementation timeline? - Management indicated that the MTN partnership represents a significant opportunity across multiple countries and is expected to begin implementation in the second half of the year [50][51] Question: How do you view product contributions going forward given economic headwinds? - Management remains cautious but confident in achieving a 10% SaaS growth rate, emphasizing the importance of their pivot towards a SaaS mix [56][58] Question: What is the status of the AT&T enterprise rollout? - Management reported that AT&T is tracking well, with increased interest in Unity's modularity and a rise in the number of products purchased by customers [62][63] Question: What are the expected gross margins for the company in the future? - Management aims for SaaS revenue to exceed 85% of total revenue, with gross margins for services expected to reach 80% plus [68] Question: Can you provide subscriber and ARPU numbers for the quarter? - The growth in services was primarily ARPU driven, with a modest increase in subscribers [71][72] Question: Will you exceed your stated expense synergy goals for the year? - Management is focused on achieving the $18 million target for the year, with ongoing efforts to drive performance [75][76] Question: How is the mix of new business changing with more SaaS sales? - Management confirmed a shift towards selling more applications and modular solutions, reducing reliance on hardware sales [78][79]

Core Viewpoint - PowerFleet reported quarterly earnings of $0.01 per share, matching the Zacks Consensus Estimate, and a significant improvement from a loss of $0.21 per share a year ago [1] - The company generated revenues of $104.12 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 0.84% and showing a year-over-year increase from $75.43 million [2] Financial Performance - PowerFleet has not surpassed consensus EPS estimates over the last four quarters, with a previous expectation of a loss of $0.02 per share turning into an actual loss of $0.09, resulting in a surprise of -350% [1][2] - The current consensus EPS estimate for the upcoming quarter is $0.03 on revenues of $105.24 million, and for the current fiscal year, it is $0.16 on revenues of $429.62 million [7] Stock Performance - PowerFleet shares have declined approximately 41.9% since the beginning of the year, contrasting with the S&P 500's gain of 8.6% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Outlook - The Transportation - Services industry, to which PowerFleet belongs, is currently ranked in the bottom 18% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact PowerFleet's stock performance [5]

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]