Summary of PowerFleet Conference Call Company Overview - **Company**: PowerFleet - **Industry**: Telematics - **Recent Transformations**: PowerFleet has undergone significant changes over the past three years, evolving from a small public company to a larger entity through mergers and acquisitions (M&A) [2][4][3] Key Financial Metrics - **Revenue Growth**: Revenue increased from $135 million to a projected $440 million, with EBITDA rising from $7 million to $100 million [3][4] - **Recent Performance**: The company reported a 12% year-over-year increase in organic services revenue, indicating strong growth compared to previous standalone performances [7] Mergers and Acquisitions - **Acquisitions**: PowerFleet merged with MiX Telematics and Fleet Complete, enhancing its scale and capabilities [4][5] - **Cost Synergies**: The combined EBITDA from MiX and Fleet Complete is expected to contribute significantly to PowerFleet's financials, with a total of approximately $60 million in EBITDA anticipated from these synergies [6] Product Strategy and Market Position - **Product Differentiation**: PowerFleet has developed a comprehensive suite of telematics solutions, including AI cameras and the Unity platform, which harmonizes data from various telematics devices [9][10][11] - **Unity Solution**: The Unity platform allows for device-agnostic data ingestion, providing a holistic view of fleet operations, which is a significant pain point for customers [12][14][17] Market Opportunities - **Enterprise-Level Engagement**: PowerFleet has secured significant contracts, such as with Pepsi, demonstrating its ability to engage at the enterprise level due to its increased scale and credibility [22][23] - **End-to-End Solutions**: The company offers solutions that span the entire supply chain, differentiating itself from competitors who focus solely on road telematics [26][27] Growth Drivers - **Key Growth Areas**: The main growth drivers identified include in-warehouse solutions, safety enhancements (including AI cameras), and the continued development of the Unity platform [39][40] - **Regulatory Trends**: Regulatory requirements for safety are driving demand for in-warehouse solutions, which are not discretionary expenditures [42] Future Outlook - **Cash Flow and M&A Potential**: PowerFleet is positioned to generate significant cash flow, with plans to explore future M&A opportunities as the market for telematics consolidates [45][48] - **Investor Sentiment**: There is a perceived disconnect between the company's performance and its stock price, with management believing that the stock is undervalued given its growth trajectory [51][52] Conclusion - **Investment Opportunity**: PowerFleet is viewed as a compelling investment opportunity due to its strong growth metrics, strategic acquisitions, and differentiated product offerings in the telematics industry [52]

Core Viewpoint - PowerFleet, Inc. (NASDAQ:AIOT) is identified as a strong logistics-tech stock with significant upside potential, supported by positive analyst ratings and robust operational performance [1][5]. Analyst Ratings - As of December 5, PowerFleet is rated a consensus Buy by all analysts, with a median price target of $9.50, indicating an 81% potential upside from current levels [1]. - Barrington Research reaffirmed an "Outperform" rating on November 26, setting a price target of $15.00, suggesting substantial upside from current prices [2]. Financial Performance - In Q2 FY26, PowerFleet reported total revenue of $111.7 million, a 45% increase year-over-year from $77.0 million in Q2 FY25, and a 7.3% sequential rise [3]. - Services revenue, a key segment, reached $89.3 million, reflecting a 57% year-over-year growth [3]. - The company achieved a gross profit of $62.6 million with a 56% margin, and raised its FY26 total revenue guidance to $435–$445 million, up from $430–$440 million [3][4]. Operational Highlights - Management noted a milestone in achieving double-digit organic recurring revenue growth ahead of schedule, driven by momentum in AI-powered SaaS solutions and global traction [4]. - There was a 27% sequential improvement in product revenue, alongside solid margin expansion despite challenging macro conditions [4]. - Although the reported net loss was $4.3 million (approximately $0.03 per share), the company emphasized meaningful bottom-line leverage from synergy programs and scalable SaaS execution [4]. Company Overview - PowerFleet is a global AIoT SaaS company that provides fleet tracking, mobility and asset management, safety, and compliance solutions for logistics, transportation, and other mobile-asset heavy industries [5].

Core Viewpoint - The investment rating for PowerFleet Inc. (AIOT) stock is assessed as a Buy due to its transition from a fragmented hardware-centric telematics provider to a more integrated solution provider [1] Group 1 - PowerFleet is undergoing a progressive transition in its business model [1] - The company is shifting focus from hardware to integrated telematics solutions [1]

Core Viewpoint - PowerFleet Inc. (AIOT) stock is rated as a Buy due to its transition from a fragmented hardware-centric telematics provider to a more integrated solution provider [1] Group 1: Company Transition - PowerFleet is undergoing a progressive transition that enhances its market position and potential for growth [1]

Powerfleet Investor Contacts Carolyn Capaccio and Jody Burfening Alliance Advisors IR [email protected] Powerfleet Media Contact Jonathan Bates [email protected] +44 7921 242 892 SOURCE Powerfleet Tuesday, December 9, 2025, presentation at 1:40pmET: Raymond James 2025 TMT and Consumer Conference – a webcast of this presentation will be available on the Events & Presentations page at ir.powerfleet.com. Tuesday, December 16, 2025: Northland Growth Conference 2025 WOODCLIFF LAKE, N.J., Dec. 4, 2025 /PRNewswire ...

Core Insights - PowerFleet Inc. (NASDAQ:AIOT) is recognized as one of the fastest-growing penny stocks, with an Outperform rating reiterated by William Blair following impressive second-quarter 2026 results characterized by record revenue and strong performance across key metrics [1] Financial Performance - The company achieved a 45% increase in total revenue, reaching a record high of $111.7 million, driven by strong global traction and expanding adoption of its AIoT platform [2] - Organic annual recurring revenue growth was double-digit year-over-year, with a reported 12% organic services growth amid broad-based business strength [3] - Gross profit increased by 51% year-over-year to $62.6 million, indicating strong operational performance [2] Net Loss and Challenges - Despite the strong revenue growth, the company reported a wider-than-expected net loss attributable to stockholders of $4.3 million, or $0.03 per share, compared to a net loss of $1.9 million, or $0.02 per share, for the same quarter last year [4] - The increase in net loss was attributed to higher interest expenses and non-cash amortization [4] Company Overview - PowerFleet, Inc. operates as a global AIoT company, providing software-as-a-service (SaaS) solutions to help organizations manage, monitor, and optimize assets such as connected vehicles and warehouse equipment [5]

Core Viewpoint - The presentation at the 2025 PowerFleet Innovation Event emphasizes the company's forward-looking statements regarding its beliefs, plans, and future performance, highlighting the inherent risks and uncertainties that may affect actual results [1][2]. Group 1: Forward-Looking Statements - Forward-looking statements encompass expectations about customer prospects, potential contract values, market forecasts, and projections of financial performance, including revenue growth and cost control [2]. - The company aims to expand its business with core customers while increasing production volumes and managing operating costs effectively [2]. Group 2: Risks and Uncertainties - The risks and uncertainties mentioned include factors that could lead to actual results differing materially from those expressed in forward-looking statements, as detailed in the company's filings with the Securities and Exchange Commission [2][3].

Core Insights - Powerfleet, Inc. is scheduled to attend fall 2025 New York investor conferences to discuss its AIoT platform, which is delivering results at scale with strong financial discipline and a clear roadmap to 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 [1] - The company focuses on unifying business operations through data ingestion, harmonization, and integration, providing actionable insights to help companies save lives, time, and money [1] - Powerfleet is headquartered in New Jersey, United States, and has a primary listing on The Nasdaq Global Market and a secondary listing on the Johannesburg Stock Exchange (JSE) [1] Recent Achievements - Powerfleet reported a 7% quarterly sequential increase in total revenue for Q2 FY26, ending September 30, 2025 [2] - The company won the Frost & Sullivan 2025 North America Product Leadership Award, highlighting its leadership in the AIoT sector [3]

Summary of Powerfleet Innovation Event Company Overview - **Company**: Powerfleet - **Event**: 2025 Powerfleet Innovation Event - **Focus**: Presentation of Powerfleet's Unity platform and its impact on safety, compliance, and operational efficiency across various industries Key Industry Insights - **Market Context**: The global market consists of over 275 million commercial vehicles, with industries facing challenges due to fragmented data silos and disconnected telematics systems [11] - **Customer Base**: Powerfleet serves a diverse range of industries, helping over 5 million drivers and operators maintain safety and compliance [11] Core Themes and Arguments - **Transformation and Growth**: Powerfleet has undergone significant transformation, offering differentiated solutions that address mission-critical challenges for enterprises [3] - **Unity Platform**: The Unity platform integrates data from various sources, providing a single source of truth that enhances operational visibility and decision-making [11][60] - **Safety and Compliance**: Emphasized as foundational elements for operational excellence, with a focus on using AI to drive safety improvements and compliance [15][23] - **Digital Transformation**: Organizations are encouraged to automate processes and unify data to improve performance and reduce risks [15][16] Customer Case Studies - **PepsiCo**: - Transitioned from manual vehicle condition reports to an automated system, enhancing safety and compliance across 18,000 forklifts [26][31] - Achieved 100% pre-use compliance and eliminated unauthorized equipment use, significantly improving operational efficiency [32] - **Everdriven**: - Achieved a 99.9% accident-free record by utilizing Powerfleet's AI video safety solution, expanding the partnership to scale technology across more vehicles [80][81] - **Nestlé**: - Automated compliance checks across warehouses, reducing risks and protecting infrastructure, particularly against costly racking damage incidents [83][84] Technology and Innovation - **AI and IoT Integration**: Powerfleet's Unity platform combines IoT data with AI to provide real-time operational intelligence, enabling predictive insights and automation [48][49] - **Aura AI Engine**: Acts as the intelligence backbone of Unity, continuously learning and providing insights to enhance safety and compliance [38][39] - **Safety as a Service**: A comprehensive offering that combines technology with human oversight to improve safety outcomes and foster a culture of safety [71][76] Market Recognition - **Awards**: Powerfleet received the 2025 North America Product Leadership Award from Frost & Sullivan for its exceptional performance in the connected vehicle market [57] Conclusion - **Unified Operations**: The integration of data across various operational silos is crucial for enhancing safety, compliance, and overall business performance [55][63] - **Future Outlook**: Powerfleet aims to continue expanding its technology and services to help organizations achieve connected, intelligent operations that drive growth and efficiency [52][60]

Revenue Growth - Revenues increased by $34.7 million, or 45.0%, to $111.7 million in the three months ended September 30, 2025, compared to $77.0 million in the same period in 2024[167] - Revenues from services increased by $32.6 million, or 57.4%, to $89.3 million in the three months ended September 30, 2025, primarily due to the Fleet Complete acquisition[169] - Revenues increased by $63.4 million, or 41.6%, to $215.8 million in the six months ended September 30, 2025, from $152.4 million in the same period in 2024[176] - Product revenues increased by $1.0 million, or 2.6%, to $40.0 million for the six months ended September 30, 2025, primarily due to the acquisition of Fleet Complete, which contributed $5.2 million[177] - Service revenues rose by $62.4 million, or 55.0%, to $175.8 million for the six months ended September 30, 2025, driven by growth initiatives and the Fleet Complete acquisition, which added $52.1 million[178] Profitability - Gross profit was $62.6 million in the three months ended September 30, 2025, with a gross profit margin of 56.0%, up from 53.7% in the same period in 2024[170] - The gross profit for services was $55.5 million in the three months ended September 30, 2025, with a gross profit margin of 62.2%, up from 61.7% in the same period in 2024[172] - Gross profit was $119.1 million for the six months ended September 30, 2025, with a gross profit margin of 55.2%, up from 53.1% in the same period in 2024[179] - Adjusted EBITDA for the six months ended September 30, 2025, was $44.9 million, compared to $28.2 million for the same period in 2024[188] Expenses - SG&A expenses increased by $16.8 million, or 45.0%, to $54.2 million in the three months ended September 30, 2025, primarily due to the Fleet Complete acquisition[173] - SG&A expenses increased by $15.7 million, or 17.0%, to $107.8 million for the six months ended September 30, 2025, with a decrease in SG&A as a percentage of revenues to 50.0% from 60.4%[182] - R&D expenses increased by $0.8 million, or 22.1%, to $4.2 million in the three months ended September 30, 2025, primarily due to costs incurred by the Fleet Complete business[174] - R&D expenses rose by $2.5 million, or 38.5%, to $9.1 million for the six months ended September 30, 2025, primarily due to $2.7 million incurred by Fleet Complete[183] - Cost of revenues increased by $13.4 million, or 37.6%, to $49.1 million in the three months ended September 30, 2025, with the Fleet Complete acquisition contributing $11.5 million[170] - Cost of revenues increased by $25.3 million, or 35.4%, to $96.7 million for the six months ended September 30, 2025, with Fleet Complete contributing $19.6 million to this cost[179] Net Loss - Net loss attributable to common stockholders was $4.3 million, or $(0.03) per share, for the three months ended September 30, 2025, compared to a net loss of $1.9 million, or $(0.02) per share, for the same period in 2024[175] - Net loss attributable to common stockholders was $14.5 million, or $(0.11) per share, for the six months ended September 30, 2025, compared to a net loss of $24.2 million, or $(0.23) per share, for the same period in 2024[184] Cash Flow and Liquidity - Net cash provided by operating activities for the six months ended September 30, 2025 was $10.2 million, compared to a net cash used of $10.8 million for the same period in 2024[211] - The company expects its current cash balances and expected cash flows from operations to be sufficient to meet operating and capital expenditure requirements for at least the next 12 months[210] - As of September 30, 2025, the company had cash and cash equivalents of $32.5 million and working capital of $11.5 million, down from $48.8 million and $18.1 million, respectively, as of March 31, 2025[207] - The company is proactively managing liquidity through reductions in discretionary operating expenses and capital expenditures[208] Debt and Financing - The company drew $125 million from the New RMB Term Facility on October 1, 2024, to fund a portion of the Purchase Price for the FC Acquisition[206] - Interest rates for RMB Facility A are fixed at 8.699% until March 31, 2027, and for RMB Facility B at 8.979%[204] - As of September 30, 2025, Powerfleet Israel had utilized approximately $17.2 million under the Hapoalim Revolving Facilities[201] - The company utilized $20.2 million of the RMB General Facility as of September 30, 2025[205] Integration and Synergies - The company has made significant progress in integrating the MiX Telematics and Fleet Complete businesses, realizing early operational synergies[159]