Powerfleet, Inc.(US:AIOT)2025-11-10 12:29Revenue 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 the three months ended September 30, 2025, were $111,679,000, an increase from $77,018,000 in 2024[42] - Total revenues for Q3 2025 reached $111.7 million, a significant increase from $77.0 million in Q3 2024[40] Profitability Metrics - Gross profit increased to $62.6 million, with a gross margin of 56%, compared to 54% in Q2 FY25[9] - Adjusted EBITDA grew 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] 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 43.0%[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] Guidance and Future Outlook - 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] Net Loss and Financial Position - 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] - The company reported a net loss attributable to common stockholders of $4.3 million for Q3 2025, compared to a net loss of $1.9 million in Q3 2024[37] Cash Flow and Liquidity - 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] - The company reported a net cash provided by operating activities of $10,243 thousand for the six months ended September 30, 2025, compared to a net cash used of $(10,792) thousand for the same period in 2024, indicating a turnaround in cash flow[30] Debt and Leverage - Adjusted net debt to adjusted EBITDA improved to 2.9x, down from 3.4x at fiscal year-end 2025[13] - 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 ratio improved from 3.4 in March 2025 to 2.9 in September 2025[43] Asset and Liability Management - 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’s total liabilities increased from $463,329 thousand as of March 31, 2025, to $467,914 thousand as of September 30, 2025, a rise of 1.3%[28] 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]