Core Insights - Powerfleet, Inc. reported a 45% year-over-year increase in Q3 revenue, reaching $106 million, with service revenue accounting for 77% of total revenue [1][6][7] - Adjusted EBITDA rose 77% to $22.5 million, driven by the Fleet Complete acquisition and organic growth, with a run rate exceeding $85 million [1][10][17] - The company has increased its FY25 full-year guidance by $10 million for revenue and $2.5 million for adjusted EBITDA, now expecting annual revenue to exceed $362.5 million [12][17] Financial Performance - Total revenue increased to $106.4 million, with service revenue growing 45% to $81.7 million and product revenue rising 42% to $24.7 million [6][7] - Gross profit increased by 44% to $58.8 million, with adjusted gross margins exceeding 60%, up from 55.5% in the prior year [8][7] - Adjusted service gross margins approached 70%, while product margins improved to 30.6% [8][7] Strategic Developments - The post-M&A integration of Fleet Complete is ahead of schedule, positioning the company for double-digit growth in FY26 [2][4] - The integration process is well underway, with a cost synergy program targeting over $16 million by fiscal year-end [5] - The acquisition of Fleet Complete has expanded market opportunities through partnerships with leading telecommunications providers [5] Operational Highlights - The company exited the quarter with over 2.6 million recurring revenue subscribers [7] - Significant sales growth was noted in AI camera solutions, with a 52% year-over-year increase through the largest channel partner [5] - A major contract with a leading beverage company in North America has a long-term revenue potential of $25 million to $30 million [5] Debt and Financial Outlook - Net debt at the end of the quarter was $229.7 million, below the year-end guidance of $235 million [11] - The company expects adjusted EBITDA to exceed $75 million, inclusive of $5 million in secured annualized run-rate synergies [17]
Powerfleet Reports Third Quarter 2025 Financial Results