Core Insights - Artificial intelligence (AI) is identified as the greatest investment opportunity of the current era, with a strong emphasis on the urgent need for energy to support its growth [1][2][3] - A specific company is highlighted as a key player in the AI energy sector, owning critical energy infrastructure assets that are essential for meeting the increasing energy demands of AI technologies [3][7][8] Investment Landscape - Wall Street is investing hundreds of billions into AI, but there is a pressing concern regarding the energy supply needed to sustain this growth [2] - AI data centers consume energy equivalent to that of small cities, leading to a strain on global power grids and rising electricity prices [2][3] - The company in focus is positioned to capitalize on the surge in demand for electricity driven by AI, making it a potentially lucrative investment opportunity [3][6] Company Profile - The company is described as a "toll booth" operator in the AI energy boom, benefiting from tariffs and onshoring trends that favor American energy exports [5][6] - It possesses significant nuclear energy infrastructure assets, which are crucial for the future of clean and reliable power in the U.S. [7] - The company is noted for its ability to execute large-scale engineering, procurement, and construction projects across various energy sectors, including oil, gas, and renewables [7][8] Financial Position - The company is completely debt-free and has a substantial cash reserve, amounting to nearly one-third of its market capitalization, which positions it favorably compared to heavily indebted competitors [8][10] - It also holds a significant equity stake in another AI-related company, providing investors with indirect exposure to multiple growth opportunities without the associated premium costs [9][10] Market Sentiment - There is a growing interest from hedge funds in this company, which is considered undervalued and off the radar, with some hedge fund managers discreetly promoting it to wealthy clients [9][10] - The company is trading at less than seven times earnings, indicating a strong potential for upside in the context of its involvement in AI and energy [10][11] Future Outlook - The ongoing AI infrastructure supercycle, combined with the onshoring boom and increased U.S. LNG exports, positions the company at the intersection of several growth trends [14] - The influx of talent into the AI sector is expected to drive continuous innovation, further solidifying the importance of energy infrastructure in supporting this technological revolution [12][13]

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] 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 acquisition-related expenses contributing to a lower percentage of revenues at 50.0%[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 costs 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[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, an improvement from a net loss of $24.2 million, or $(0.23) per share, in 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] - Net cash used in investing activities for the six months ended September 30, 2025 was $23.9 million, primarily due to $12.5 million for fixed assets and $11.5 million for capitalized software development costs[215] - During the six months ended September 30, 2025, net cash used in financing activities was $3.3 million, a decrease from $22.3 million for the same period in 2024[216] - 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 expects its current cash balances and expected cash flows from operations to be sufficient to meet operating, debt service, and capital expenditure requirements for at least the next 12 months[210] Acquisitions and Integration - The company has made significant progress in integrating the businesses from the MiX Telematics and Fleet Complete acquisitions, realizing early operational synergies[159] - The company completed the MiX Combination on April 2, 2024, enhancing its capital structure and liquidity[198] - The company has drawn $125 million from the New RMB Term Facility to fund a portion of the Purchase Price for the FC Acquisition, with an interest rate of 5% per annum plus the applicable term SOFR reference rate[206] - The company utilized $20.2 million of the RMB General Facility as of September 30, 2025[205] Interest Rates and Economic Conditions - Interest rates in South Africa remained stable, while the U.S. dollar denominated loans are based on the SOFR, which was 4.35% as of September 30, 2025, down from 5.31% a year earlier[225][226] - The company is proactively managing liquidity through reductions in discretionary operating expenses and capital expenditures due to inflation and geopolitical instability[208]

Group 1 - The article does not provide any specific content related to a company or industry [1]

Revenue Performance - Total revenue reached a record $111.7 million, an increase of 45% year-over-year and 7.3% sequentially[9] - Services revenue was $89.3 million, reflecting a 57% increase year-over-year and 12% organically[3] - Total revenues for Q3 2025 reached $111.7 million, a significant increase from $77.0 million in Q3 2024[40] - Total revenues for the three months ended September 30, 2025, were $111,679,000, an increase from $77,018,000 in 2024[42] Profitability Metrics - Gross profit increased to $62.6 million, with a gross margin of 56%, compared to 54% in Q2 FY25[9] - Adjusted EBITDA rose 71% year-over-year to $24.8 million, with an adjusted EBITDA margin of 22%[13] - Total gross profit for Q3 2025 was $62.6 million, up from $41.3 million in Q3 2024[40] - Adjusted EBITDA for Q3 2025 was $24.8 million, with an adjusted EBITDA margin of 22.2%[37] - Adjusted net income for Q3 2025 was $2.1 million, resulting in adjusted net income per share of $0.02[40] Guidance and Forecast - The company raised its FY26 total revenue guidance to $435-$445 million from the previous range of $430-$440 million[5] - The company achieved double-digit year-over-year organic annual recurring revenue growth ahead of schedule[7] Expenses and Costs - Research and development expenses represented 4% of revenue, consistent with the prior year[9] - Selling, general and administrative (SG&A) expenses for the same period in 2025 were $54,151,000, compared to $37,335,000 in 2024, reflecting a growth of 45.1%[42] - Total operating expenses for the three months ended September 30, 2025, were $58,345,000, compared to $40,770,000 in 2024, indicating a rise of 43.1%[43] - Adjusted operating expenses for the same period in 2025 were $56,273,000, up from $37,619,000 in 2024, marking a 49.5% increase[43] - Research and development expenses incurred for the six months ended September 30, 2025, were $17,493,000, up from $11,273,000 in 2024, representing a 55.5% increase[42] Net Loss and Debt - Net loss attributable to common stockholders was $4.3 million, or $0.03 per share, compared to a loss of $1.9 million, or $0.02 per share, in the prior year[9] - The net loss attributable to common stockholders for the six months ended September 30, 2024, was $(24,225) thousand, compared to $(14,522) thousand for the same period in 2025, indicating an improvement in loss by 40.0%[26] - Total debt as of September 30, 2025, was $275,112,000, slightly up from $273,792,000 in March 2025[43] - Adjusted net debt to adjusted EBITDA improved to 2.9x, down from 3.4x at fiscal year-end 2025[13] Cash and Assets - Cash and cash equivalents at the end of the period for September 30, 2025, were $32,481 thousand, down from $89,036 thousand at the end of the previous period, a decrease of 63.5%[30] - Total assets increased from $910,071 thousand as of March 31, 2025, to $936,893 thousand as of September 30, 2025, marking a growth of 2.9%[28] - The company reported a total operating expense of $98,653 thousand for the six months ended September 30, 2024, which decreased to $116,865 thousand for the same period in 2025, a reduction of 18.5%[26] Shareholder Information - The weighted average common shares outstanding for the six months ended September 30, 2024, were 107,335 thousand, compared to 133,510 thousand for the same period in 2025, an increase of 24.4%[26]

Revenue Performance - Revenues increased by $28.7 million, or 38.0%, to $104.1 million for the three months ended June 30, 2025, compared to $75.4 million in the same period in 2024[157]. - Service revenues rose by $29.8 million, or 52.5%, to $86.5 million, driven by growth initiatives and the acquisition of Fleet Complete, which contributed $26.2 million[159]. - Product revenues decreased by $1.1 million, or 5.8%, to $17.7 million, primarily due to lower sales in North America and Europe, partially offset by $3.2 million from Fleet Complete[158]. Profitability and Expenses - Gross profit increased to $56.5 million, representing 54.2% of total revenues for the three months ended June 30, 2025, up from 52.6% in the same period in 2024[160]. - Net loss attributable to common stockholders was $10.2 million, or $(0.08) per share, for the three months ended June 30, 2025, compared to a net loss of $22.3 million, or $(0.21) per share, in the same period in 2024[165]. - Selling, general and administrative expenses decreased to $53.7 million, or 51.5% of revenues, down from 72.6% in the same period in 2024[163]. - Research and development expenses increased by $1.8 million, or 56.6%, to $4.9 million, representing 4.7% of revenues for the three months ended June 30, 2025[164]. Cash Flow and Financial Position - As of June 30, 2025, cash and cash equivalents totaled $35.6 million, down from $48.8 million as of March 31, 2025, indicating a decrease of approximately 27%[192]. - Net cash provided by operating activities for the three months ended June 30, 2025, was $4.7 million, compared to a net cash used of $7.6 million in the same period of 2024[194]. - Net cash used in investing activities for the three months ended June 30, 2025, was $11.8 million, a shift from net cash provided of $19.6 million in the same period of 2024[195]. - During the three months ended June 30, 2025, net cash used in financing activities was $6.8 million, significantly lower than $89.5 million used in the same period of 2024[196]. Acquisitions and Integration - The company has made significant progress in integrating the acquired businesses of MiX Telematics and Fleet Complete, realizing early operational synergies[148]. - The MiX Combination was completed on April 2, 2024, with a total redemption of $90.3 million for Series A Preferred Stock[177]. - The company drew down $125 million under the New RMB Term Facility on October 1, 2024, to pay a portion of the Purchase Price for the FC Acquisition[190]. Market Risks and Economic Conditions - The company faces risks from global economic conditions, supply chain disruptions, and competitive pressures that could impact future performance[145]. - The company is exposed to market risks related to fluctuations in foreign exchange rates, interest rates, inflation risk, and credit risk[200]. - A significant portion of revenues and costs are denominated in foreign currencies, particularly affecting the South African rand, Mexican peso, Brazilian real, and Canadian dollar[202]. - The company has not entered into any hedging arrangements for foreign currency risk, which may adversely affect future results[203]. Interest Rates and Borrowing - Interest rates in South Africa remained unchanged for most of 2024, with a 25-basis point reduction announced in September, November 2024, and January 2025[205]. - The U.S. dollar-denominated loans had a 90-day average rate of 4.34% as of June 30, 2025, down from 5.35% a year earlier, representing a decline of 1.01%[205]. - Estimated annual interest expense could increase by $454,000 for a 1% increase in variable rate borrowings[209]. Trade Receivables and Credit Losses - As of June 30, 2025, trade receivables totaled $81.5 million, net of an allowance for credit losses of $8.4 million[211]. - No single customer represented more than 10% of total trade receivables, indicating diversified customer exposure[211]. - The current allowance for credit losses is deemed adequate to cover expected losses, with ongoing monitoring of customer liquidity trends[211].

Revenue Growth - Total revenue grew by 38% year-over-year to $104.1 million, driven by strong services revenue growth[1][8] - Quarterly services revenue increased by 6% sequentially to $86.5 million, representing 83% of total revenue, up from 79% in the prior quarter[1][9] - Services revenues saw significant growth, rising from $56,692,000 in 2024 to $86,464,000 in 2025, an increase of about 52.5%[34] - Total revenues increased from $75,430,000 in 2024 to $104,121,000 in 2025, representing a growth of approximately 38.0%[34] Profitability and Expenses - Adjusted EBITDA rose by 58% to $21.6 million, with an adjusted EBITDA margin expanding by 260 basis points to 21%[2][13] - The adjusted total gross profit margin improved from 64.1% in 2024 to 67.0% in 2025, indicating enhanced profitability[34] - Stock-based compensation expense decreased from $5,929 thousand to $1,853 thousand, a reduction of approximately 69%[31] - The adjusted operating expenses for the three months ended June 30, 2025, were $54,273,000, compared to $37,498,000 in 2024, reflecting ongoing operational adjustments[38] Strategic Initiatives - Major new strategic sales channel partnership signed with MTN Group, supporting approximately 300 million customers across 16 markets[12] - New logo wins increased by 14% sequentially, with significant ARR deals across 11 diverse industry sectors[5][12] - AI Video annual recurring revenue (ARR) bookings grew by 52% quarter-over-quarter, indicating strong market demand[5][12] Financial Position - Adjusted net debt to adjusted EBITDA improved to 2.97x from 3.22x at the end of fiscal year 2025[14] - Total assets increased from $910,071 thousand to $930,782 thousand, reflecting a growth of approximately 2%[27] - Total stockholders' equity increased from $446,592 thousand to $460,730 thousand, reflecting a growth of about 3%[27] - Cash and cash equivalents at the end of the period increased to $35,643 thousand from $31,393 thousand, a rise of about 13%[29] Loss Reduction - Net loss for the three months ended June 30, 2025, improved to $(10,234) thousand from $(22,312) thousand in the same period of 2024, representing a reduction of about 54%[29] - For the three months ended June 30, 2025, PowerFleet reported a net loss of $10,234,000, compared to a net loss of $22,312,000 for the same period in 2024[32] Guidance and Future Outlook - Full-year 2026 total revenue guidance increased to $430-$440 million from the previous range of $420-$440 million[3][15] Research and Development - Research and development expenses increased to 5% of total revenue, up from 4% in the prior year[11] - The company incurred $5,213,000 in research and development expenses in 2024, which increased to $8,559,000 in 2025, highlighting a commitment to product development[36] - Research and development expenses as a percentage of total revenues increased from 4.1% in 2024 to 4.7% in 2025, reflecting a focus on innovation[36] Inventory and Liabilities - Inventory levels increased from $18,350 thousand to $23,892 thousand, reflecting a growth of about 30%[27] - Total current liabilities decreased slightly from $151,009 thousand to $156,603 thousand, indicating a reduction of approximately 3%[27] - Long-term debt remained relatively stable, with a slight increase from $232,160 thousand to $232,954 thousand[27] Other Financial Metrics - Non-GAAP net income per share improved from $0.00 in 2024 to $0.01 in 2025, signaling a positive trend in financial performance[32] - Acquisition-related expenses decreased significantly from $14,494,000 in 2024 to $1,130,000 in 2025, indicating a reduction in integration costs[38]

Company Overview - PowerFleet is a leading global B2B mobile fleet and asset management company serving the industrial, logistics, and commercial vehicle industries[5] - The company has an expanding patent portfolio, including 53 granted and pending patents[5] - PowerFleet projects combined revenue of $150 million in 2020, including $75 million in high-margin service revenue[13] - As of December 31, 2019, PowerFleet had $164 million in cash and cash equivalents, $349 million in debt, and $10 million available under an unused credit facility[46] Market Opportunity and Growth - The global logistics market is projected to grow from $81 trillion in 2015 to $155 trillion in 2023, representing a 75% Compound Annual Growth Rate (CAGR)[18] - The global warehouse management system market is expected to grow from $21 billion in 2018 to $48 billion in 2024, a 152% CAGR[21] - The connected vehicle market is projected to grow from $732 billion in 2018 to $237 billion in 2025, a 142% CAGR[21] - Worldwide spending on the Internet of Things (IoT) is forecast to reach $745 billion in 2019, a 154% increase over the $646 billion spent in 2018[24] Financial Performance - Q4 2019 total revenue was $351 million, up 17% year-over-year on a pro forma basis, with $165 million in product revenue (47% of revenue) and $187 million in service revenue (53% of revenue)[39] - The company targets $200 million+ in revenue, with 50% from services/recurring revenue ($100 million), a 55% gross profit ($110 million), and a 25% adjusted EBITDA ($50 million)[44]

[PART I](index=5&type=section&id=PART%20I) [Item 1. Business](index=7&type=section&id=Item%201.%20Business) Powerfleet provides AIoT solutions for high-value asset management, leveraging its Unity SaaS platform and recent strategic acquisitions - Powerfleet is a global provider of Artificial Intelligence-of-Things (AIoT) solutions, offering business intelligence for managing high-value enterprise and mid-market assets to improve operational efficiencies[19](index=19&type=chunk) - The company's strategy centers on its Unity data highway and AIoT ecosystem, which ingests and harmonizes data from multiple sources to deliver insights via a unified Software-as-a-Service (SaaS) platform[20](index=20&type=chunk) - In **2024**, Powerfleet completed the acquisition of MiX Telematics and, in **October 2024**, acquired Fleet Complete, significantly expanding its business and accelerating strategic objectives[30](index=30&type=chunk)[31](index=31&type=chunk)[58](index=58&type=chunk) - Powerfleet's solutions, sold under brands like Powerfleet, Pointer, Cellocator, MiX by Powerfleet, and Fleet Complete, are designed to enhance safety, increase efficiency, reduce costs, and drive profitability across various industries[25](index=25&type=chunk)[27](index=27&type=chunk) [Overview](index=7&type=section&id=Overview) - Powerfleet provides AIoT solutions for managing high-value enterprise and mid-market assets, headquartered in Woodcliff Lake, New Jersey, with global offices[19](index=19&type=chunk)[20](index=20&type=chunk) - The Unity data highway and AIoT ecosystem is central to the company's strategy, capable of ingesting data from multiple sources, harmonizing it, and delivering insights through a unified SaaS platform[20](index=20&type=chunk) - Solutions include Powerfleet for Warehouse and Factory AIoT (on-premise asset management) and Powerfleet for On-Road AIoT (mobile asset tracking for transportation), covering diverse assets like forklifts, heavy trucks, and shipping containers[23](index=23&type=chunk)[24](index=24&type=chunk) - The company holds **40 patents and patent applications** and has over **25 years of experience** in IoT device development, AI, and data science[26](index=26&type=chunk) [Recent Strategic Transactions](index=8&type=section&id=Recent%20Strategic%20Transactions) - On **April 2, 2024**, Powerfleet Sub acquired MiX Telematics Limited, making it an indirect, wholly-owned subsidiary, and has made significant progress in integration and operational synergy realization[30](index=30&type=chunk) - On **October 1, 2024**, Powerfleet acquired Fleet Complete, which also became an indirect, wholly-owned subsidiary, further expanding its market presence[31](index=31&type=chunk) [Our Solutions](index=8&type=section&id=Our%20Solutions) - The Unity Solution Portfolio, recognized by ABI Research as a top global platform in **2025**, offers SaaS-based modules for vehicle, video, and in-warehouse IoT, providing AI-powered insights for people, assets, and business processes[32](index=32&type=chunk)[33](index=33&type=chunk) - Key applications of AIoT solutions include end-to-end visibility, regulatory compliance, improved safety (e.g., AI-based video safety, predictive analytics), and enhanced operational efficiency and productivity (e.g., asset utilization, workflow automation)[35](index=35&type=chunk)[36](index=36&type=chunk)[37](index=37&type=chunk)[38](index=38&type=chunk) - Solutions also focus on increasing security by reducing theft and improving inventory management through alerts and emergency tracking, and reducing costs by optimizing asset utilization, maintenance, and fuel consumption[43](index=43&type=chunk)[44](index=44&type=chunk) - AIoT significantly enhances Unity's capabilities by integrating AI with IoT to organize large data pools, automate data harmonization, and generate actionable insights, creating a single source of truth across mobile asset types[45](index=45&type=chunk)[46](index=46&type=chunk) [Services](index=10&type=section&id=Services) - Powerfleet offers hosting services, SaaS, maintenance services (hardware warranty, extended contracts), and customer support and consulting services[50](index=50&type=chunk)[52](index=52&type=chunk)[53](index=53&type=chunk)[54](index=54&type=chunk) - Training services are increasingly provided through scalable online interactive tools, and consulting services are offered both standalone and as part of system implementation[55](index=55&type=chunk)[56](index=56&type=chunk) [Growth Strategy](index=11&type=section&id=Growth%20Strategy) - The company's objective is to be a leading global AIoT SaaS solutions provider for high-value enterprise and mid-market assets, leveraging its Unity platform for rapid integration and AI-driven insights[57](index=57&type=chunk) - Growth is driven by focusing on vertical markets, positioning as an innovative thought leader, expanding customer base, shortening sales cycles, differentiating product offerings with analytics and unique sensors, and expanding partnerships and distribution channels[58](index=58&type=chunk)[66](index=66&type=chunk) - Powerfleet also plans to expand into new applications and markets by integrating with other hardware/software vendors (OEMs, TMS, WMS, ERP, YMS) and pursuing strategic acquisitions[59](index=59&type=chunk)[66](index=66&type=chunk) [Sales and Marketing](index=13&type=section&id=Sales%20and%20Marketing) - Sales and marketing aim for broad market awareness and penetration, focusing on expanding business with existing customers and securing new ones[59](index=59&type=chunk) - Systems are marketed directly to commercial and government organizations and through indirect channels like OEMs, distributors, and equipment dealers[60](index=60&type=chunk) - The company works closely with customers to demonstrate a return on investment (typically under **12 months**) and maximize system utilization[63](index=63&type=chunk) [Customers](index=13&type=section&id=Customers) - Powerfleet serves over **50,000 enterprise and mid-market customers** across diverse industries, including manufacturing, transportation, logistics, and cold chain[64](index=64&type=chunk) - Notable global customers include Avis, Walmart, Toyota, and XPO Logistics, with **no single customer generating more than 10% of consolidated total revenue**[67](index=67&type=chunk) [Competition](index=14&type=section&id=Competition) - The market for Powerfleet's solutions is rapidly evolving, highly competitive, and fragmented, with diverse competitors ranging from small startups to large, well-capitalized organizations[68](index=68&type=chunk)[69](index=69&type=chunk) - Competition is driven by rapid technological change, new product introductions, evolving industry standards, and the ability to attract skilled professionals[68](index=68&type=chunk)[128](index=128&type=chunk) [Research and Development](index=14&type=section&id=Research%20and%20Development) - The R&D team specializes in hardware, software, firmware, data analytics, wireless communications, and AI, supplemented by external contractors[71](index=71&type=chunk) - R&D efforts focus on expanding product capabilities, differentiating offerings through the Unity platform, simplifying solutions, reducing costs, increasing reliability, and enhancing functionality[72](index=72&type=chunk) [Intellectual Property](index=14&type=section&id=Intellectual%20Property) - Powerfleet protects its technology through patents, copyrights, trademarks, and trade secrets in the U.S. and internationally[73](index=73&type=chunk)[143](index=143&type=chunk) - As of **May 23, 2025**, the patent portfolio includes **34 U.S. patents**, **2 pending U.S. applications**, **1 pending foreign application**, and **3 foreign patents**, with expiration dates between **2026 and 2040**[74](index=74&type=chunk) - The company holds numerous trademarks, including I.D. SYSTEMS®, POWERFLEET®, UNITY®, MiX Telematics, and FLEET COMPLETE®, expanded through recent acquisitions[16](index=16&type=chunk)[75](index=75&type=chunk)[77](index=77&type=chunk)[78](index=78&type=chunk) [Manufacturing](index=16&type=section&id=Manufacturing) - Hardware manufacturing is outsourced to contract manufacturers, allowing the company to focus on core competencies and scale production without increasing fixed expenses[82](index=82&type=chunk) - Manufacturers rely on a limited number of suppliers for components, posing risks of supply chain disruptions and increased costs[83](index=83&type=chunk) [Government Regulations](index=17&type=section&id=Government%20Regulations) - The use of radio emissions is subject to regulation by federal agencies (e.g., FCC) in the U.S. and other countries, requiring product modifications for compliance[87](index=87&type=chunk)[88](index=88&type=chunk) - Operations in Israel, South Africa, Canada, Europe, and Latin America are subject to additional regulatory requirements, including radio frequency equipment, environmental compliance, and industry-specific licensing[92](index=92&type=chunk)[93](index=93&type=chunk)[94](index=94&type=chunk)[96](index=96&type=chunk) [Employees](index=17&type=section&id=Employees) - As of **June 4, 2025**, Powerfleet had **2,518 full-time employees** globally, maintaining good relationships with its workforce[97](index=97&type=chunk) [Macroeconomic Developments](index=17&type=section&id=Macroeconomic%20Developments) - Global economic uncertainty due to higher interest rates, inflation, currency fluctuations, supply chain disruptions, and geopolitical conflicts (e.g., Middle East) adversely impacts customers, suppliers, and operations[98](index=98&type=chunk)[99](index=99&type=chunk) - Evolving trade policies, including tariffs, further disrupt global commerce, increasing costs and supply chain planning difficulties[99](index=99&type=chunk) [Other Information](index=18&type=section&id=Other%20Information) - Powerfleet, Inc. was incorporated in Delaware in **2019**, becoming the parent entity of I.D. Systems and Pointer after the Pointer Merger[100](index=100&type=chunk) - The company's website (www.powerfleet.com) provides SEC filings and its Code of Ethics for Senior Financial Officers[100](index=100&type=chunk) [Item 1A. Risk Factors](index=19&type=section&id=Item%201A.%20Risk%20Factors) Powerfleet faces risks from acquisition integration, recurring losses, international instability, supply chain disruptions, technological changes, cybersecurity, and ERP/CRM challenges - The company may not realize anticipated benefits from the MiX Combination and FC Acquisition, facing integration challenges, unexpected costs, and potential delays[104](index=104&type=chunk)[106](index=106&type=chunk) - Powerfleet has incurred significant losses and a substantial accumulated deficit, with net losses of **$(16.9) million**, **$(17.3) million**, **$(19.6) million**, and **$(51.0) million** for the years ended **December 31, 2022**, **2023**, the three months ended **March 31, 2024**, and the year ended **March 31, 2025**, respectively[111](index=111&type=chunk) - The company is exposed to political, economic, trade, and geographic risks due to its international operations, including currency fluctuations, tariffs, and geopolitical conflicts (e.g., Middle East)[112](index=112&type=chunk)[114](index=114&type=chunk)[115](index=115&type=chunk) - Disruptions in the global supply chain, reliance on limited suppliers for critical components, and failures by subcontractors could materially affect business and financial results[119](index=119&type=chunk)[120](index=120&type=chunk)[170](index=170&type=chunk) - Risks also include the inability to keep pace with rapid technological change, potential brand damage from inaccurate AI output, cybersecurity breaches, and intense competition in a fragmented market[124](index=124&type=chunk)[126](index=126&type=chunk)[127](index=127&type=chunk)[128](index=128&type=chunk) [Risk Factor Summary](index=19&type=section&id=Risk%20Factor%20Summary) - Key risks include integration challenges from recent acquisitions, significant losses and accumulated deficit, international political/economic risks, global supply chain disruptions, rapid technological change, inaccurate AI output, cybersecurity breaches, intense competition, ERP/CRM implementation failures, foreign exchange rate risks, need for additional capital, reliance on third-party channel partners, intellectual property protection issues, and increased indebtedness from acquisitions[103](index=103&type=chunk) [Risks Related to Our Business](index=20&type=section&id=Risks%20Related%20to%20Our%20Business) - Integration of MiX Telematics and Fleet Complete presents operational, cultural, and logistical challenges, potentially leading to unexpected costs, delays, and failure to realize anticipated synergies[104](index=104&type=chunk)[106](index=106&type=chunk) Net Loss Attributable to Common Stockholders | Period | Net Loss (in millions) | | :--------------------------------- | :--------------------- | | Year Ended December 31, 2022 | $(16.9) | | Year Ended December 31, 2023 | $(17.3) | | Three Months Ended March 31, 2024 | $(19.6) | | Year Ended March 31, 2025 | $(51.0) | - International operations expose the company to risks such as regulatory changes, currency fluctuations, tariffs, sanctions, geopolitical conditions (e.g., Middle East conflict), and the burden of complying with diverse laws[112](index=112&type=chunk)[114](index=114&type=chunk)[115](index=115&type=chunk)[179](index=179&type=chunk) - The company's ability to manufacture and deliver products relies on a complex global supply chain and subcontractors, facing risks from component constraints (semiconductors), input cost inflation, and geopolitical tensions[119](index=119&type=chunk)[120](index=120&type=chunk)[121](index=121&type=chunk) - Failure to keep up with rapid technological change, inaccurate AI output, and cybersecurity breaches (including ransomware and insider threats) could damage reputation, customer relationships, and financial results[124](index=124&type=chunk)[126](index=126&type=chunk)[127](index=127&type=chunk) - The implementation of integrated ERP and CRM systems poses challenges related to project governance, data migration, system instability, and control changes, which could materially affect operations[133](index=133&type=chunk)[134](index=134&type=chunk) - Significant indebtedness incurred for acquisitions (MiX Combination, FC Acquisition) increases borrowing costs and reduces operational flexibility, with Israeli subsidiaries also having substantial debt[108](index=108&type=chunk)[148](index=148&type=chunk)[149](index=149&type=chunk)[150](index=150&type=chunk)[151](index=151&type=chunk) - **Material weaknesses** in internal control over financial reporting were identified, specifically in journal entry controls at I.D. Systems and Pointer Mexico, and in financial close and reporting processes at Fleet Complete[169](index=169&type=chunk)[551](index=551&type=chunk)[553](index=553&type=chunk)[554](index=554&type=chunk) [Risks Related to Our Securities](index=34&type=section&id=Risks%20Related%20to%20Our%20Securities) - Future sales of common stock by existing stockholders or upon option exercise could cause the market price to decline[189](index=189&type=chunk)[190](index=190&type=chunk) - Concentration of common stock ownership among executive officers and directors (approximately **5.9%** as of **June 25, 2025**) could limit other stockholders' ability to influence corporate transactions[191](index=191&type=chunk) - Provisions in Delaware law or the company's Charter, such as exclusive forum for legal actions and anti-takeover measures, could delay or prevent an acquisition or make it harder for stockholders to change management[192](index=192&type=chunk)[193](index=193&type=chunk) [Item 1B. Unresolved Staff Comments](index=36&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) There are no unresolved staff comments to report - No unresolved staff comments were reported[194](index=194&type=chunk) [Item 1C. Cybersecurity](index=36&type=section&id=Item%201C.%20Cybersecurity) Powerfleet's cybersecurity governance involves board oversight, CISO leadership, and robust risk management processes, with no material incidents reported to date - The board of directors has ultimate oversight for cybersecurity risk management, with the CISO and ISS Committee reporting on material risks and initiatives[195](index=195&type=chunk)[196](index=196&type=chunk) - The CISO, with over **20 years of experience** and various certifications, leads the cybersecurity team in continuous threat monitoring and security control implementation[197](index=197&type=chunk)[198](index=198&type=chunk) - Cybersecurity risk management includes regular risk assessments, targeted assessments after system changes, engagement with external assessors for audits and penetration testing, and due diligence for third-party service providers[201](index=201&type=chunk)[202](index=202&type=chunk)[203](index=203&type=chunk)[204](index=204&type=chunk) - As of the report date, no cybersecurity threats or incidents have materially affected Powerfleet's business, strategy, results of operations, or financial condition[205](index=205&type=chunk) [Item 2. Properties](index=37&type=section&id=Item%202.%20Properties) Powerfleet maintains corporate headquarters in New Jersey, with additional domestic and international leased offices, warehouses, and call centers, all deemed adequate for current needs - Corporate headquarters are in Woodcliff Lake, New Jersey (**1,000 sq ft** leased)[206](index=206&type=chunk) - Domestic offices include Florida (**30,416 sq ft** leased administrative/warehouse) and Texas (**5,514 sq ft** leased administrative space)[206](index=206&type=chunk) - International leased spaces are located in Canada, Mexico, South America, Europe, Africa, Australia, Asia, and Israel (call center, warehouse, antenna sites)[207](index=207&type=chunk)[208](index=208&type=chunk) [Item 3. Legal Proceedings](index=37&type=section&id=Item%203.%20Legal%20Proceedings) Information regarding legal proceedings is incorporated by reference from Note 18 to the consolidated financial statements - Legal proceedings information is detailed in Note **18** to the consolidated financial statements[210](index=210&type=chunk) [Item 4. Mine Safety Disclosure](index=37&type=section&id=Item%204.%20Mine%20Safety%20Disclosure) This item is not applicable to Powerfleet, Inc - Mine Safety Disclosure is not applicable[211](index=211&type=chunk) [PART II](index=37&type=section&id=PART%20II) [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=37&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Powerfleet's common stock trades on Nasdaq and JSE, with 18 record holders, no cash dividends paid, and no unregistered security sales or issuer repurchases - Common stock is traded on The Nasdaq Global Market (AIOT) and the Johannesburg Stock Exchange (PWR)[212](index=212&type=chunk) - As of **June 25, 2025**, there were **18 holders of record** for common stock[212](index=212&type=chunk) - The company has never paid a cash dividend and plans to retain future earnings for operations and expansion[213](index=213&type=chunk) - No sales of unregistered securities or issuer purchases of equity securities were reported[214](index=214&type=chunk)[215](index=215&type=chunk) [Item 6. Reserved](index=38&type=section&id=Item%206.%20Reserved) This item is reserved and contains no information - Item **6** is reserved[216](index=216&type=chunk) [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=39&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes Powerfleet's financial condition, highlighting revenue growth, increased net losses from acquisitions, critical accounting estimates, non-GAAP measures, and liquidity impacts from debt - Powerfleet is a global provider of AIoT solutions, with its Unity data highway and AIoT ecosystem central to its strategy for improving operational efficiencies[218](index=218&type=chunk)[219](index=219&type=chunk) - The company incurred recurring losses and negative cash flows from operations since inception, with an accumulated deficit of **$205.8 million** as of **March 31, 2025**[224](index=224&type=chunk) Key Financial Highlights (Year Ended March 31, 2025 vs. December 31, 2023) | Metric | Year Ended March 31, 2025 (in millions) | Year Ended December 31, 2023 (in millions) | Change (%) | | :--------------------------------- | :-------------------------------------- | :--------------------------------------- | :--------- | | Total Revenues | **$362.5** | **$133.7** | **171.1%** | | Product Revenues | **$85.6** | **$49.7** | **72.1%** | | Service Revenues | **$276.9** | **$84.0** | **229.7%** | | Cost of Revenues | **$168.0** | **$66.7** | **152.0%** | | Gross Profit | **$194.5** | **$67.1** | **190.9%** | | Gross Profit Margin | **53.7%** | **50.2%** | **+3.5 pp** | | SG&A Expenses | **$204.4** | **$71.3** | **186.8%** | | R&D Expenses | **$16.1** | **$8.4** | **91.7%** | | Net Loss Attributable to Common Stockholders | **$(51.0)** | **$(17.3)** | **194.8%** | Adjusted EBITDA Reconciliation | Metric | Year Ended Dec 31, 2022 (in thousands) | Year Ended Dec 31, 2023 (in thousands) | Three Months Ended Mar 31, 2024 (in thousands) | Year Ended Mar 31, 2025 (in thousands) | | :--------------------------------- | :------------------------------------- | :------------------------------------- | :--------------------------------------------- | :------------------------------------- | | Net loss attributable to common stockholders | **$(16,891)** | **$(17,307)** | **$(19,640)** | **$(51,012)** | | Adjustments (selected) | | | | | | Preferred stock dividend and accretion | **10,137** | **11,632** | **11,125** | **25** | | Interest expense, net | **1,624** | **1,903** | **601** | **19,404** | | Depreciation and amortization | **8,262** | **9,445** | **1,943** | **47,494** | | Stock-based compensation | **4,343** | **3,908** | **1,028** | **9,362** | | Acquisition-related expenses | — | **5,140** | **6,078** | **21,300** | | Integration-related expenses | — | — | — | **4,851** | | **Adjusted EBITDA** | **$8,148** | **$6,631** | **$1,921** | **$71,131** | - Net cash used in operating activities was **$3.3 million** for the year ended **March 31, 2025**, compared to net cash provided of **$4.4 million** in **2023**[301](index=301&type=chunk) - Net cash used in investing activities was **$170.6 million** for the year ended **March 31, 2025**, primarily due to **$137.1 million** in acquisitions (net of cash assumed), **$20.0 million** for fixed assets, and **$13.8 million** for capitalized software development[305](index=305&type=chunk) - Net cash provided by financing activities was **$115.7 million** for the year ended **March 31, 2025**, driven by **$125.0 million** in long-term debt proceeds and **$66.5 million** from a private placement, partially offset by **$90.3 million** for preferred stock redemption[308](index=308&type=chunk) [Overview](index=39&type=section&id=Overview) - Powerfleet is a global provider of AIoT solutions for managing high-value enterprise and mid-market assets, aiming to improve operational efficiencies[218](index=218&type=chunk) - The Unity data highway and AIoT ecosystem is the core strategy, ingesting data from multiple sources to deliver insights through a unified SaaS platform[219](index=219&type=chunk) - The company has incurred recurring losses and negative cash flows from operations since inception, with an accumulated deficit of **$205.8 million** as of **March 31, 2025**[224](index=224&type=chunk) [Critical Accounting Estimates](index=39&type=section&id=Critical%20Accounting%20Estimates) - Critical accounting estimates include assumptions for business combinations, allowance for credit losses, income taxes, impairment of intangible assets (goodwill), capitalized software development costs, standalone selling prices (SSP), derivative asset valuation, and market-based stock-based compensation[225](index=225&type=chunk) - Goodwill and intangible assets are tested for impairment annually (**October 1**) or when triggering events occur; no impairment charges were incurred for the periods presented[227](index=227&type=chunk)[228](index=228&type=chunk)[229](index=229&type=chunk) - Business combinations recognize acquired assets and assumed liabilities at fair value, requiring significant estimates for intangible assets like customer relationships, tradenames, and developed technology using discounted cash flow analyses[230](index=230&type=chunk)[231](index=231&type=chunk)[232](index=232&type=chunk) [Results of Operations](index=41&type=section&id=Results%20of%20Operations) Consolidated Statement of Operations as a Percentage of Revenues | Metric | Year Ended Dec 31, 2022 | Year Ended Dec 31, 2023 | Three Months Ended Mar 31, 2024 | Year Ended Mar 31, 2025 | | :--------------------------------- | :---------------------- | :---------------------- | :------------------------------ | :---------------------- | | Revenues: | | | | | | Products | **41.9 %** | **37.2 %** | **35.8 %** | **23.6 %** | | Services | **58.1 %** | **62.8 %** | **64.2 %** | **76.4 %** | | Total revenues | **100.0 %** | **100.0 %** | **100.0 %** | **100.0 %** | | Cost of revenues: | | | | | | Cost of products | **31.3 %** | **27.2 %** | **28.2 %** | **17.1 %** | | Cost of services | **20.9 %** | **22.6 %** | **23.8 %** | **29.2 %** | | Total cost of revenues | **52.2 %** | **49.8 %** | **52.0 %** | **46.3 %** | | Gross profit | **47.8 %** | **50.2 %** | **48.0 %** | **53.7 %** | | Operating expenses: | | | | | | Selling, general and administrative expenses | **46.7 %** | **53.3 %** | **64.7 %** | **56.4 %** | | Research and development expenses | **6.2 %** | **6.3 %** | **6.0 %** | **4.4 %** | | Total operating expenses | **52.9 %** | **59.5 %** | **70.7 %** | **60.8 %** | | Loss from operations | **(5.1)%** | **(9.4)%** | **(22.7)%** | **(7.1)%** | | Net loss attributable to common stockholders | **(12.4)%** | **(12.9)%** | **(58.2)%** | **(14.1)%** | - For the year ended **March 31, 2025**, total revenues increased by **171.1%** to **$362.5 million**, primarily due to contributions from the MiX Telematics (**$171.2 million**) and Fleet Complete (**$59.0 million**) acquisitions[236](index=236&type=chunk)[237](index=237&type=chunk)[238](index=238&type=chunk)[431](index=431&type=chunk)[446](index=446&type=chunk) - Gross profit margin increased to **53.7%** for the year ended **March 31, 2025**, from **50.2%** in **2023**, driven by higher margin product lines, despite a decrease in service gross profit margin due to acquisition-related intangible amortization[239](index=239&type=chunk)[240](index=240&type=chunk)[241](index=241&type=chunk) - SG&A expenses increased by **186.8%** to **$204.4 million** for the year ended **March 31, 2025**, largely due to acquired businesses (**$73.9M MiX**, **$28.0M Fleet Complete**) and **$41.1 million** in acquisition-related, integration, restructuring, and accelerated stock-based compensation costs[242](index=242&type=chunk) - Net loss attributable to common stockholders for the year ended **March 31, 2025**, was **$51.0 million**, or **$(0.43) per share**, significantly impacted by acquisition-related expenses, integration costs, restructuring charges, and amortization of acquisition-related intangibles[244](index=244&type=chunk)[245](index=245&type=chunk) [Non-GAAP Financial Information](index=45&type=section&id=Non-GAAP%20Financial%20Information) - Powerfleet uses non-GAAP measures like Adjusted EBITDA, headline loss, and headline loss per common share to assess financial performance and comply with JSE reporting requirements[267](index=267&type=chunk) - Adjusted EBITDA is defined as net loss attributable to common stockholders, adjusted for non-controlling interest, preferred stock dividend/accretion, interest, taxes, depreciation/amortization, stock-based compensation, foreign currency, restructuring, bargain purchase, severance, derivative mark-to-market, contract asset recognition, Movingdots-related, acquisition-related, and integration-related expenses[269](index=269&type=chunk) Adjusted EBITDA | Metric | Year Ended Dec 31, 2022 (in thousands) | Year Ended Dec 31, 2023 (in thousands) | Three Months Ended Mar 31, 2024 (in thousands) | Year Ended Mar 31, 2025 (in thousands) | | :--------------------------------- | :------------------------------------- | :------------------------------------- | :--------------------------------------------- | :------------------------------------- | | Net loss attributable to common stockholders | **$(16,891)** | **$(17,307)** | **$(19,640)** | **$(51,012)** | | Adjusted EBITDA | **$8,148** | **$6,631** | **$1,921** | **$71,131** | Headline Loss per Share | Metric | Year Ended Dec 31, 2022 | Year Ended Dec 31, 2023 | Three Months Ended Mar 31, 2024 | Year Ended Mar 31, 2025 | | :--------------------------------- | :---------------------- | :---------------------- | :------------------------------ | :---------------------- | | Net loss attributable to common stockholders | **$(16,891)** | **$(17,307)** | **$(19,639)** | **$(51,012)** | | Headline loss | **$(16,891)** | **$(26,341)** | **$(19,639)** | **$(51,021)** | | Weighted average common shares outstanding | **35,393** | **35,628** | **35,813** | **119,877** | | Net loss per share | **$(0.48)** | **$(0.49)** | **$(0.55)** | **$(0.43)** | | Headline loss per share | **$(0.48)** | **$(0.74)** | **$(0.55)** | **$(0.43)** | [Liquidity and Capital Resources](index=48&type=section&id=Liquidity%20and%20Capital%20Resources) - On **April 2, 2024**, Powerfleet redeemed **$90.3 million** of Series A convertible preferred stock using proceeds from RMB Facilities and refinanced Hapoalim Credit Facilities[282](index=282&type=chunk) - On **September 27, 2024**, the company secured a **$125 million** New RMB Term Facility to fund a portion of the Fleet Complete acquisition[296](index=296&type=chunk) Cash and Working Capital | Metric | March 31, 2024 (in millions) | March 31, 2025 (in millions) | | :--------------------------------- | :--------------------------- | :--------------------------- | | Cash and cash equivalents (incl. restricted cash) | **$109.7** | **$48.8** | | Working capital | **$126.2** | **$18.1** | - Net cash used in operating activities was **$3.3 million** for the year ended **March 31, 2025**, compared to **$4.4 million** provided in **2023**, reflecting changes in accounts receivable, payables, and deferred costs[301](index=301&type=chunk)[303](index=303&type=chunk)[304](index=304&type=chunk) - Net cash used in investing activities was **$170.6 million** for the year ended **March 31, 2025**, primarily due to **$137.1 million** for acquisitions (MiX and FC), **$20.0 million** for fixed assets, and **$13.8 million** for capitalized software development[305](index=305&type=chunk) - Net cash provided by financing activities was **$115.7 million** for the year ended **March 31, 2025**, driven by **$125.0 million** in long-term debt, **$66.5 million** from a private placement, and **$19.6 million** from short-term bank borrowings, offset by **$90.3 million** for preferred stock redemption[308](index=308&type=chunk) [Off-Balance Sheet Arrangements](index=52&type=section&id=Off-Balance%20Sheet%20Arrangements) - The company has no off-balance sheet arrangements that have, or are reasonably likely to have, a material current or future effect on its financial condition, revenues, expenses, results of operations, liquidity, capital expenditures, or capital resources[312](index=312&type=chunk) [Impact of Recently Issued Accounting Pronouncements](index=52&type=section&id=Impact%20of%20Recently%20Issued%20Accounting%20Pronouncements) - The company adopted ASU **2023-07** (Segment Reporting) on **April 1, 2024**, retrospectively[313](index=313&type=chunk)[415](index=415&type=chunk) - The company is evaluating the effects of ASU **2023-09** (Income Tax Disclosures) and ASU **2024-03** (Disaggregation of Income Statement Expenses), effective for fiscal years beginning after **December 15, 2024**, and **December 15, 2026**, respectively[416](index=416&type=chunk)[417](index=417&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=53&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This item is not applicable to Powerfleet, Inc - Quantitative and Qualitative Disclosures About Market Risk is not applicable[314](index=314&type=chunk) [Item 8. Financial Statement and Supplementary Data](index=54&type=section&id=Item%208.%20Financial%20Statement%20and%20Supplementary%20Data) This section presents Powerfleet's audited consolidated financial statements and detailed notes, covering key financial positions, operations, cash flows, and significant accounting policies - The consolidated financial statements for the year ended **March 31, 2025**, were audited by Deloitte & Touche, expressing an **unqualified opinion**[319](index=319&type=chunk) - Comparative financial statements for prior periods were audited by Ernst & Young LLP, also with an **unqualified opinion**, before retrospective adjustments for segment reporting changes[320](index=320&type=chunk)[338](index=338&type=chunk) - Deloitte & Touche expressed an **adverse opinion** on the company's internal control over financial reporting as of **March 31, 2025**, due to identified **material weaknesses**[321](index=321&type=chunk)[563](index=563&type=chunk) Consolidated Balance Sheets (in thousands) | Metric | March 31, 2024 | March 31, 2025 | | :--------------------------------- | :------------- | :------------- | | Total Current Assets | **$169,788** | **$169,080** | | Total Assets | **$308,680** | **$910,071** | | Total Current Liabilities | **$43,590** | **$151,009** | | Total Liabilities | **$179,771** | **$463,329** | | Convertible redeemable preferred stock | **$90,273** | — | | Total Equity | **$38,636** | **$446,742** | Consolidated Statements of Operations (in thousands) | Metric | Year Ended Dec 31, 2022 | Year Ended Dec 31, 2023 | Three Months Ended Mar 31, 2024 | Year Ended Mar 31, 2025 | | :--------------------------------- | :---------------------- | :---------------------- | :------------------------------ | :---------------------- | | Total Revenues | **$135,912** | **$133,736** | **$33,740** | **$362,515** | | Gross Profit | **$64,993** | **$67,076** | **$16,203** | **$194,537** | | Loss from operations | **$(6,971)** | **$(12,557)** | **$(7,647)** | **$(25,885)** | | Net loss attributable to common stockholders | **$(16,891)** | **$(17,307)** | **$(19,639)** | **$(51,012)** | | Net loss per share | **$(0.48)** | **$(0.49)** | **$(0.55)** | **$(0.43)** | Consolidated Statements of Cash Flows (in thousands) | Metric | Year Ended Dec 31, 2022 | Year Ended Dec 31, 2023 | Three Months Ended Mar 31, 2024 | Year Ended Mar 31, 2025 | | :--------------------------------- | :---------------------- | :---------------------- | :------------------------------ | :---------------------- | | Net cash provided by (used in) operating activities | **$1,249** | **$4,397** | **$(208)** | **$(3,345)** | | Net cash (used in) provided by investing activities | **$(6,330)** | **$1,529** | **$(1,900)** | **$(170,596)** | | Net cash (used in) provided by financing activities | **$(282)** | **$(3,706)** | **$92,821** | **$115,722** | | Cash and cash equivalents, and restricted cash at end of period | **$17,989** | **$19,332** | **$109,664** | **$48,788** | [NOTE 1 - DESCRIPTION OF THE COMPANY](index=70&type=section&id=NOTE%201%20-%20DESCRIPTION%20OF%20THE%20COMPANY) - Powerfleet, Inc. is a global provider of AIoT solutions, with primary listing on Nasdaq and secondary on JSE[361](index=361&type=chunk) - On **April 2, 2024**, MiX Telematics became an indirect, wholly-owned subsidiary (MiX Combination)[362](index=362&type=chunk) - On **October 1, 2024**, Fleet Complete became an indirect, wholly-owned subsidiary (FC Acquisition)[363](index=363&type=chunk) [NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=70&type=section&id=NOTE%202%20-%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) - Consolidated financial statements are prepared in accordance with U.S. GAAP; fiscal year end changed from **December 31** to **March 31** in **2024**[364](index=364&type=chunk) - Key estimates include business combinations, credit losses, income taxes, intangible asset impairment, capitalized software, SSP, derivative valuation, and stock-based compensation[365](index=365&type=chunk) - Restricted cash at **March 31, 2025**, included **$3.3 million** for FC Acquisition tax liabilities, **$0.3 million** for vendor purchases, **$0.7 million** for MiX Telematics Enterprise BEE Trust, and **$0.05 million** for property lease guarantees[366](index=366&type=chunk) - Revenue is recognized when performance obligations are satisfied, with product sales recognized at point-in-time and SaaS/hosting fees recognized ratably over contract life (**1-5 years**)[371](index=371&type=chunk)[372](index=372&type=chunk)[375](index=375&type=chunk) - Goodwill and indefinite-lived intangible assets are tested for impairment annually (**October 1**); no impairment charges were incurred for the periods presented[386](index=386&type=chunk)[388](index=388&type=chunk) - The company adopted ASU **2023-07** (Segment Reporting) on **April 1, 2024**, retrospectively, and is evaluating ASU **2023-09** (Income Tax Disclosures) and ASU **2024-03** (Expense Disaggregation)[415](index=415&type=chunk)[416](index=416&type=chunk)[417](index=417&type=chunk) [NOTE 3 - ACQUISITION](index=80&type=section&id=NOTE%203%20-%20ACQUISITION) - The MiX Combination (**April 2, 2024**) was accounted for as a business combination, with Powerfleet identified as the accounting acquirer based on board composition, senior management, and institutional investor concentration[421](index=421&type=chunk)[425](index=425&type=chunk) MiX Combination Consideration Transferred | Metric | April 2, 2024 (in thousands) | | :--------------------------------- | :--------------------------- | | Fair value of Powerfleet common stock transferred | **$362,005** | | Replacement of acquiree's equity awards | **$7,818** | | **Total fair value of consideration** | **$369,823** | MiX Combination Purchase Price Allocation (in thousands) | Category | April 2, 2024 | | :--------------------------------- | :------------ | | Total identifiable net assets acquired | **$153,029** | | Goodwill | **$216,799** | | **Purchase price consideration** | **$369,823** | MiX Combination Acquired Intangible Assets (in thousands) | Asset | Fair Value | Weighted Average Useful Lives | | :--------------------------------- | :--------- | :---------------------------- | | Trade name | **$10,000** | **14 years** | | Developed technology | **$30,000** | **5 years** | | Customer relationships | **$113,000** | **13 years** | - The FC Acquisition (**October 1, 2024**) was also accounted for as a business combination, with Powerfleet as the accounting acquirer[433](index=433&type=chunk) FC Acquisition Consideration Transferred | Metric | October 1, 2024 (in thousands) | | :--------------------------------- | :--------------------------- | | Fair value of Powerfleet common stock transferred | **$21,343** | | Cash consideration paid | **$16,225** | | Repayment of Fleet Complete's existing debt | **$152,382** | | **Total fair value of consideration** | **$189,950** | FC Acquisition Preliminary Purchase Price Allocation (in thousands) | Category | October 1, 2024 | | :--------------------------------- | :------------ | | Total identifiable net assets acquired | **$107,705** | | Goodwill | **$82,245** | | **Purchase price consideration** | **$189,950** | FC Acquisition Acquired Intangible Assets (in thousands) | Asset | Fair Value | Weighted Average Useful Lives | | :--------------------------------- | :--------- | :---------------------------- | | Trade name | **$4,000** | **4.5 years** | | Developed technology | **$25,000** | **5.5 years** | | Customer relationships | **$70,000** | **9.5 years** | [NOTE 4 - REVENUE RECOGNITION](index=86&type=section&id=NOTE%204%20-%20REVENUE%20RECOGNITION) Revenues by Source (in thousands) | Revenue Source | Year Ended Dec 31, 2022 | Year Ended Dec 31, 2023 | Three Months Ended Mar 31, 2024 | Year Ended Mar 31, 2025 | | :--------------------------------- | :---------------------- | :---------------------- | :------------------------------ | :---------------------- | | Products | **$56,945** | **$49,741** | **$12,080** | **$85,584** | | Services | **$78,967** | **$83,995** | **$21,660** | **$276,931** | | **Total revenues** | **$135,912** | **$133,736** | **$33,740** | **$362,515** | Contract Assets and Liabilities (in thousands) | Category | March 31, 2024 | March 31, 2025 | | :--------------------------------- | :------------- | :------------- | | Deferred contract cost | **$2,632** | **$11,894** | | Deferred revenue – services | **$10,674** | **$21,466** | | Deferred revenue – products | **$60** | **$1,106** | | Deferred revenue – long term | **$4,892** | **$5,197** | | Total | **$18,268** | **$39,663** | - The company recognized **$4.7 million** in revenue from deferred revenue balances at the beginning of the year ended **March 31, 2025**, and expects to recognize remaining deferred revenue through **2030**[449](index=449&type=chunk) [NOTE 5 - PREPAID EXPENSES AND OTHER ASSETS](index=87&type=section&id=NOTE%205%20-%20PREPAID%20EXPENSES%20AND%20OTHER%20ASSETS) Prepaid Expenses and Other Current Assets (in thousands) | Category | March 31, 2024 | March 31, 2025 | | :--------------------------------- | :------------- | :------------- | | Sales-type lease receivables, current | **$1,100** | **$1,062** | | Prepaid expenses | **$2,817** | **$9,038** | | Contract assets | **$1,162** | **$5,088** | | VAT receivable | — | **$1,901** | | Sundry debtors | — | **$5,424** | | Total | **$8,133** | **$23,319** | [NOTE 6 - INVENTORY](index=88&type=section&id=NOTE%206%20-%20INVENTORY) - Inventory is stated at the lower of cost or net realizable value, using the 'moving average' or FIFO method, and consists of finished goods and components[451](index=451&type=chunk) Inventory Composition (in thousands) | Category | March 31, 2024 | March 31, 2025 | | :--------------------------------- | :------------- | :------------- | | Components | **$9,403** | **$11,859** | | Work in process | **$49** | — | | Finished goods, net | **$12,206** | **$6,491** | | **Total** | **$21,658** | **$18,350** | [NOTE 7 - FIXED ASSETS](index=88&type=section&id=NOTE%207%20-%20FIXED%20ASSETS) - Fixed assets are recorded at cost, net of accumulated depreciation, using the straight-line method over estimated useful lives (e.g., installed products **3-5 years**, computer software **3-5 years**)[384](index=384&type=chunk)[453](index=453&type=chunk) Fixed Assets, Net (in thousands) | Category | March 31, 2024 | March 31, 2025 | | :--------------------------------- | :------------- | :------------- | | Installed and uninstalled products | **$11,030** | **$61,564** | | Computer software | **$11,496** | **$11,523** | | Computer and electronic equipment | **$6,179** | **$6,294** | | Furniture and fixtures | **$2,361** | **$3,054** | | Leasehold improvements | **$1,498** | **$1,459** | | Plant and equipment | — | **$276** | | Assets in progress | — | **$7** | | Accumulated depreciation and amortization | **$(19,845)** | **$(26,166)** | | **Total** | **$12,719** | **$58,011** | - Depreciation and amortization expense for fixed assets was **$19.9 million** for the year ended **March 31, 2025**, including **$5.7 million** for computer software[453](index=453&type=chunk) [NOTE 8 - INTANGIBLE ASSETS AND GOODWILL](index=88&type=section&id=NOTE%208%20-%20INTANGIBLE%20ASSETS%20AND%20GOODWILL) - The company capitalizes internal-use software development costs that meet capitalization criteria and amortizes them over **3 to 7 years**[391](index=391&type=chunk)[393](index=393&type=chunk) Identifiable Intangible Assets, Net (in thousands) | Category | March 31, 2024 | March 31, 2025 | | :--------------------------------- | :------------- | :------------- | | Definite-lived: | | | | Customer relationships | **$11,252** | **$178,874** | | Trademark and tradename | **$3,676** | **$15,752** | | Patents | **$164** | **$75** | | Technology | — | **$52,345** | | Software to be sold or leased | **$4,395** | **$11,371** | | Indefinite-lived: | | | | Customer list | **$104** | **$104** | | Trademark and tradename | **$61** | **$61** | | **Total** | **$19,652** | **$258,582** | - Amortization expense for intangible assets was **$27.6 million** for the year ended **March 31, 2025**[456](index=456&type=chunk) Goodwill Reconciliation (in thousands) | Metric | Amount | | :--------------------------------- | :----- | | Balance at March 31, 2024 | **$83,487** | | MiX Combination | **$216,799** | | FC Acquisition | **$82,245** | | Foreign currency translation difference | **$615** | | **Balance at March 31, 2025** | **$383,146** | [NOTE 9 - STOCK-BASED COMPENSATION](index=90&type=section&id=NOTE%209%20-%20STOCK-BASED%20COMPENSATION) - The **2018** Incentive Plan allows for grants of stock options, restricted stock, and other equity-based awards, with **7,040 shares** available for future issuance as of **March 31, 2025**[460](index=460&type=chunk) - Stock-based compensation expense was **$9.4 million** for the year ended **March 31, 2025**, including **$3.1 million** for stock options and **$3.3 million** for restricted stock grants[403](index=403&type=chunk)[465](index=465&type=chunk)[470](index=470&type=chunk) - The increase in expense was partly due to the accelerated vesting of unvested restricted stock and stock option awards in connection with the MiX Combination[465](index=465&type=chunk)[470](index=470&type=chunk) - As of **March 31, 2025**, unrecognized compensation costs for unvested options (excluding market-based) were **$0.7 million** (**0.97 years** weighted-average period) and for market-based options were **$2.2 million** (**1.91 years** weighted-average period)[467](index=467&type=chunk)[468](index=468&type=chunk) - The company assumed MiX Telematics' share plans, including Stock Appreciation Rights (SARs), with **$5.6 million** of unrecognized compensation cost for unvested SARs as of **March 31, 2025** (**2.62 years** weighted-average period)[475](index=475&type=chunk)[476](index=476&type=chunk)[479](index=479&type=chunk) [NOTE 10 - NET LOSS PER SHARE](index=94&type=section&id=NOTE%2010%20-%20NET%20LOSS%20PER%20SHARE) Net Loss Per Share Attributable to Common Stockholders | Metric | Year Ended Dec 31, 2022 | Year Ended Dec 31, 2023 | Three Months Ended Mar 31, 2024 | Year Ended Mar 31, 2025 | | :--------------------------------- | :---------------------- | :---------------------- | :------------------------------ | :---------------------- | | Net loss attributable to common stockholders | **$(16,891)** | **$(17,307)** | **$(19,639)** | **$(51,012)** | | Net loss per share (basic and diluted) | **$(0.48)** | **$(0.49)** | **$(0.55)** | **$(0.43)** | | Weighted-average common shares outstanding (basic and diluted) | **35,393** | **35,628** | **35,813** | **119,877** | - Basic loss per share is calculated by dividing net loss attributable to common shareholders by the weighted-average common shares outstanding. Diluted loss per share reflects potential dilution from outstanding options, warrants, and restricted stock[480](index=480&type=chunk) [NOTE 11 - SHORT-TERM BANK DEBT AND LONG-TERM DEBT](index=95&type=section&id=NOTE%2011%20-%20SHORT-TERM%20BANK%20DEBT%20AND%20LONG-TERM%20DEBT) Debt Summary (in thousands) | Category | March 31, 2024 | March 31, 2025 | | :--------------------------------- | :------------- | :------------- | | Short-term bank debt | — | **$36,788** | | Current maturities of long-term debt | **$1,951** | **$4,844** | | Long-term debt - less current maturities | **$113,810** | **$232,160** | - As of **March 31, 2025**, short-term debt included **$18.0 million** utilized from the RMB General Facility (extended to **April 2, 2026**) and **$17.4 million** utilized from Hapoalim Revolving Facilities (extended to **February 27, 2026**)[486](index=486&type=chunk)[487](index=487&type=chunk)[494](index=494&type=chunk) - The A&R Credit Agreement with Hapoalim provides **$30 million** in term loans (Hapoalim Term Facilities) and **$20 million** in revolving credit (Hapoalim Revolving Facilities), secured by Powerfleet Israel and Pointer assets[489](index=489&type=chunk)[490](index=490&type=chunk)[497](index=497&type=chunk) - The RMB Facilities (total **$85 million**) were drawn on **March 13, 2024**, to redeem Series A preferred stock, with interest rates of **8.699% and 8.979% per annum**, maturing **March 31, 2027**, and **March 31, 2029**, respectively[500](index=500&type=chunk)[501](index=501&type=chunk) - A **$125 million** New RMB Term Facility was drawn on **October 1, 2024**, for the FC Acquisition, bearing interest at **5% plus SOFR**, maturing **October 31, 2029**[505](index=505&type=chunk)[508](index=508&type=chunk) Scheduled Contractual Maturities of Long-Term Debt (in thousands) | Year ending March 31, | Amount | | :--------------------------------- | :----- | | **2026** | **$4,913** | | **2027** | **$47,904** | | **2028** | **$5,404** | | **2029** | **$54,290** | | **2030** | **$125,000** | | Thereafter | — | | **Total** | **$237,511** | [NOTE 12 - ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES](index=99&type=section&id=NOTE%2012%20-%20ACCUMULATED%20EXPENSES%20AND%20OTHER%20CURRENT%20LIABILITIES) Accrued Expenses and Other Current Liabilities (in thousands) | Category | March 31, 2024 | March 31, 2025 | | :--------------------------------- | :------------- | :------------- | | Accrued warranty | **$1,138** | **$1,479** | | Accrued compensation | **$8,956** | **$27,825** | | Government authorities | **$3,062** | **$6,982** | | Other current liabilities | **$827** | **$9,041** | | **Total** | **$13,983** | **$45,327** | Warranty Activity (in thousands) | Metric | March 31, 2024 | March 31, 2025 | | :--------------------------------- | :------------- | :------------- | | Accrued warranty reserve, beginning of period | **$2,797** | **$2,926** | | Accrual for product warranties issued | **$441** | **$365** | | Product replacements and other warranty expenditures | **$(165)** | **$(510)** | | Acquired through MiX Combination and FC Acquisition | — | **$954** | | **Accrued warranty reserve, end of period** | **$2,926** | **$3,618** | [NOTE 13 - STOCKHOLDERS' EQUITY](index=100&type=section&id=NOTE%2013%20-%20STOCKHOLDERS%27%20EQUITY) - On **April 2, 2024**, the company redeemed all outstanding Series A Preferred Stock for **$90.3 million**[513](index=513&type=chunk) - Holders of Series A Preferred Stock were entitled to cumulative dividends at a minimum rate of **7.5% per annum**, increasing by **100 basis points** monthly after **66 months** up to **17.5%**[514](index=514&type=chunk) Dividend Paid Activity (in thousands) | Period | Dividends paid in cash | Dividends paid in shares | Total | | :--------------------------------- | :--------------------- | :--------------------- | :---- | | Year Ended December 31, 2022 | — | **$4,231** | **$4,231** | | Year Ended December 31, 2023 | **$3,385** | **$1,108** | **$4,493** | | Three Months Ended March 31, 2024 | **$1,128** | — | **$1,128** | | Year Ended March 31, 2025 | **$25** | — | **$25** | [NOTE 14 - ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)](index=101&type=section&id=NOTE%2014%20-%20ACCUMULATED%20OTHER%20COMPREHENSIVE%20INCOME%20(LOSS)) - Comprehensive loss includes net loss and foreign currency translation gains and losses[516](index=516&type=chunk) Accumulated Other Comprehensive Income (Loss) (in thousands) | Period | Foreign currency translation adjustment | Accumulated other comprehensive income (loss) | | :--------------------------------- | :------------------------------------ | :-------------------------------------------- | | Balance at January 1, 2022 | **$391** | **$391** | | Balance at December 31, 2022 | **$(1,210)** | **$(1,210)** | | Balance at December 31, 2023 | **$(616)** | **$(616)** | | Balance at March 31, 2024 | **$(985)** | **$(985)** | | **Balance at March 31, 2025** | **$(8,850)** | **$(8,850)** | [NOTE 15 - SEGMENT INFORMATION](index=101&type=section&id=NOTE%2015%20-%20SEGMENT%20INFORMATION) - Powerfleet operates in one reportable segment: wireless AIoT asset management[518](index=518&type=chunk) - The Chief Executive Officer, as CODM, reviews financial information on a consolidated basis and makes decisions based on consolidated net loss[519](index=519&type=chunk) Revenues by Geographic Region (in thousands) | Region | Year Ended Dec 31, 2022 | Year Ended Dec 31, 2023 | Three Months Ended Mar 31, 2024 | Year Ended Mar 31, 2025 | | :--------------------------------- | :---------------------- | :---------------------- | :------------------------------ | :---------------------- | | North America | **$70,820** | **$74,671** | **$18,090** | **$121,623** | | Israel | **$44,580** | **$41,689** | **$11,267** | **$49,555** | | Africa | **$3,241** | **$3,283** | **$863** | **$97,586** | | Europe and Middle East | **$3,120** | **$1,908** | **$1,016** | **$43,190** | | Australia | — | — | — | **$30,962** | | Other | **$14,151** | **$12,185** | **$2,504** | **$19,599** | | **Total** | **$135,912** | **$133,736** | **$33,740** | **$362,515** | Long-Lived Assets by Geographic Region (in thousands) | Region | March 31, 2024 | March 31, 2025 | | :--------------------------------- | :------------- | :------------- | | North America | **$4,083** | **$13,051** | | Israel | **$3,946** | **$2,249** | | Africa | **$705** | **$32,391** | | Europe and Middle East | **$2,850** | **$4,824** | | Australia | — | **$825** | | Other | **$1,135** | **$4,671** | | **Total** | **$12,719** | **$58,011** | [NOTE 16 - INCOME TAXES](index=104&type=section&id=NOTE%2016%20-%20INCOME%20TAXES) Loss Before Income Taxes (in thousands) | Category | Year Ended Dec 31, 2022 | Year Ended Dec 31, 2023 | Three Months Ended Mar 31, 2024 | Year Ended Mar 31, 2025 | | :--------------------------------- | :---------------------- | :---------------------- | :------------------------------ | :---------------------- | | U.S. operations | **$(10,303)** | **$(16,494)** | **$(7,990)** | **$(46,935)** | | Foreign operations | **$4,421** | **$11,443** | **$(162)** | **$483** | | **Total** | **$(5,882)** | **$(5,051)** | **$(8,152)**

Financial Performance - Powerfleet, Inc. reported preliminary financial results for the fiscal year ended March 31, 2025[5]. - The company has not provided specific financial metrics or performance guidance in this report[5]. Business Integration and Strategy - The company is in the process of integrating its business with MiX Telematics and Fleet Complete, aiming to recognize anticipated synergies[7]. - The company emphasizes the importance of protecting its intellectual property and managing growth effectively[7]. Risks and Uncertainties - Forward-looking statements indicate potential impacts from tariffs and economic conditions on future performance[7]. - Risks include the loss of key customers and competition from various providers of wireless solutions[7]. - The report includes a cautionary note regarding the reliance on forward-looking statements due to inherent uncertainties[7]. - The company has no obligation to update forward-looking statements unless required by law[8]. Management - David Wilson serves as the Chief Financial Officer of Powerfleet, Inc.[13]. Additional Information - The press release detailing financial results is included as Exhibit 99.1[10].

Revenue Growth - Total revenue for Q3 2025 increased by 45% year-over-year to $106.4 million, with service revenue accounting for 77% of total revenue[3] - Total revenues for the three months ended December 31, 2024, were $106,429 million, representing a 44.5% increase compared to $73,635 million for the same period in 2023[22] - Product revenue grew 42% to $24.7 million, driven by the Fleet Complete acquisition and strong in-warehouse product sales[3] - Total revenues for the nine months ended December 31, 2023, reached $214.1 million, with Powerfleet Inc. contributing $100.9 million and MiX Telematics contributing $113.2 million[37] Adjusted EBITDA - Adjusted EBITDA rose 77% to $22.5 million, up from $12.7 million in the prior year, driven by the Fleet Complete acquisition and organic growth[9] - The company achieved an adjusted EBITDA of $12.704 million for the three months ended December 31, 2023, compared to $22.495 million for the same period in 2024[28] - Adjusted EBITDA for Powerfleet Inc. was $3,170,000, while MiX Telematics reported $9,534,000, leading to a pro forma combined adjusted EBITDA of $12,704,000 for the same period[43] - The adjusted EBITDA for the nine months ended December 31, 2023, was $5,324,000 for Powerfleet Inc. and $26,696,000 for MiX Telematics, totaling $32,020,000 on a pro forma basis[44] Operating Expenses - Operating expenses totaled $60.0 million, including $6.7 million in one-time transaction and restructuring costs[8] - The company reported a total operating expense of $60,026 million for the three months ended December 31, 2024, which is an increase from $42,391 million in the same period of 2023[22] - Operating expenses amounted to $121.5 million, with selling, general, and administrative expenses accounting for $110.5 million[37] - The company incurred acquisition-related expenses of $4.885 million for the three months ended December 31, 2023, compared to $5.301 million in the same period of the previous year[33] Net Loss and Profit - The net loss attributable to common stockholders for the three months ended December 31, 2024, was $14,349 million, compared to a net loss of $5,049 million for the same period in 2023[22] - PowerFleet's net loss attributable to common stockholders for the three months ended December 31, 2023, was $5.049 million, an improvement from a net loss of $14,349 million in the same period of the previous year[29] - The net loss attributable to common stockholders was $15.9 million, translating to a net loss per share of $0.15[37] - Powerfleet Inc. reported a net loss of $6,510,000 for the three months ended December 31, 2023, while MiX Telematics reported a net profit of $1,461,000, resulting in a pro forma combined net loss of $5,049,000[43] Cash and Assets - Cash and cash equivalents at the end of the period were $38,645 million, down from $45,614 million at the beginning of the period, reflecting a decrease of 15.5%[27] - Total assets as of March 31, 2024, were $484,274 million, compared to $908,669 million as of December 31, 2024[24] - Total current assets were $235.8 million, while total liabilities stood at $251.5 million, indicating a current ratio of approximately 0.93[39] Acquisition and Market Expansion - The Fleet Complete acquisition has significantly expanded market opportunities through partnerships with leading telecommunications providers[5] - The company secured $15 million in annualized savings from its cost synergy program, with a target of over $16 million by fiscal year-end[5] - The company reported a bargain purchase gain of $1,800 million related to the acquisition of Movingdots[22] - Powerfleet Inc. recorded a bargain purchase gain of $1.8 million from the acquisition of Movingdots[37] Research and Development - Research and development expenses for the nine months ended December 31, 2024, were $11,157 million, slightly increasing from $11,060 million in the same period of 2023[22] - The companies incurred $11.1 million in research and development expenses, reflecting a commitment to innovation[37] Shareholder Information - The weighted average common shares outstanding for the three months ended December 31, 2024, were 132,189 million, compared to 106,335 million for the same period in 2023[22] - The weighted average shares outstanding for the combined companies was 106,367[46]