Financial Performance - 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]. - 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]. - Adjusted gross margins exceeded 60%, up from 55.5% in the prior year, with adjusted service margins at 69.3% and product margins at 30.6%[3]. - Full-year 2025 revenue guidance increased by $10 million to exceed $362.5 million, while adjusted EBITDA guidance increased by $2.5 million to exceed $75 million[14]. - Total revenues for the three months ended December 31, 2024, were $106,429 million, a 44.5% increase compared to $73,635 million for the same period in 2023[22]. - Gross profit for the nine months ended December 31, 2024, was $139,774 million, up from $120,389 million in 2023, reflecting a growth of 16.1%[22]. - 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]. Subscriber and Market Growth - The company exited the quarter with over 2.6 million recurring revenue subscribers actively using its solutions[3]. - The Fleet Complete acquisition has expanded market opportunities through partnerships with leading telecommunications providers[5]. - A major contract with a North American beverage company has a long-term revenue potential of $25 million to $30 million[5]. Operating Expenses and Liabilities - 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 a 41.8% increase from $42,391 million in the same period of 2023[22]. - Total liabilities increased to $450,128 million as of December 31, 2024, from $251,477 million as of March 31, 2024[24]. - 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[27]. Net Loss and Income - 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]. Research and Development - Research and development expenses for the nine months ended December 31, 2024, were $11,157 million, slightly up from $11,060 million in 2023[22]. - Research and development expenses totaled $11.1 million, indicating a focus on innovation and product development[37]. Acquisition and Integration - The integration process of the combined businesses is ahead of schedule, targeting $16 million in annualized cost synergies 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. 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]. Cash Flow and Assets - The company experienced a net cash used in operating activities of $16,886 million for the nine months ended December 31, 2024[26]. - Total current assets increased to $174,258 million as of December 31, 2024, compared to $235,829 million as of March 31, 2024[24]. - Total assets for the combined entities were $484.3 million, with total liabilities of $251.5 million[39].
Powerfleet, Inc.(AIOT) - 2025 Q3 - Quarterly Results