Powerfleet, Inc.(US:AIOT)2025-11-10 21:08Revenue 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]