Powerfleet, Inc.(US:AIOT) Prnewswireยท2025-11-10 12:00Core Insights - Powerfleet, Inc. reported a record total revenue of $111.7 million for Q2 FY26, representing a 45% increase year-over-year and a 7.3% sequential increase [1][12] - The company raised its FY26 total revenue guidance to a range of $435 million to $445 million, up from the previous guidance of $430 million to $440 million [7][12] Financial Performance - Services revenue reached $89.3 million, a 57% increase year-over-year and a 12% organic growth from $56.7 million in Q2 FY25 [1][12] - Gross profit was $62.6 million, reflecting an 11% sequential increase from $56.5 million in Q1 FY26, with a gross margin of 56% compared to 54% in the prior year [1][12] - Adjusted EBITDA increased by 71% year-over-year to $24.8 million, with an adjusted EBITDA margin of 22%, up from 19% in the prior year [12][13] Management Commentary - The CEO highlighted Q2 as a defining quarter with strong performance across key financial metrics, driven by AI-powered SaaS solutions and growth in global markets [3][4] - The company achieved double-digit year-over-year organic annual recurring revenue growth ahead of schedule, indicating strong global traction [3][4] Cost Management - Sales, general, and administrative expenses remained at 48% of revenue, with a planned 5% increase in sales and marketing expenses to support growth [12] - Research and development expenses represented 4% of revenue, consistent with the prior year [12] Debt and Equity - The net loss attributable to common stockholders was $4.3 million, or $0.03 per share, compared to a net loss of $1.9 million, or $0.02 per share, in the prior year [12][13] - Adjusted net debt to adjusted EBITDA improved to 2.9x from 3.4x at the end of FY25, with quarter-end net debt at $242.6 million [12][13]