Powerfleet, Inc.(US:AIOT) Yahoo Finance·2026-02-09 15:06Financial Performance - Adjusted EBITDA rose 26% year over year to $25.7 million, with an adjusted EBITDA margin expanding 4 percentage points to 23% [1] - Services revenue grew 11% year over year, representing 80% of total revenue, while total revenue increased 7% year over year, with normalized growth at 9% [2][6] - Adjusted gross margin remained stable at 67%, with product margins steady in the low 30% range [15] Strategic Initiatives - The company secured a "landmark" public-sector contract in South Africa to provide AI video and visibility services across government fleets totaling over 100,000 assets, expected to generate significant multi-year recurring revenue [5][7] - Management emphasized the importance of the partnership with MTN for the successful deployment of the South African contract, which was highly competitive [8] Growth Outlook - Management reiterated fiscal 2026 exit targets of approximately 10% total revenue growth and over 10% growth in recurring revenue, supported by strong performance exiting Q3 [3][6] - The AI video pipeline grew 71% sequentially, and the annual recurring revenue (ARR) pipeline increased 13% sequentially, indicating strong commercial momentum [4][16] Operational Efficiency - The company noted $2.3 million in one-time charges related to restructuring and integration, with a focus on maintaining operational efficiency while investing in growth [14][18] - Management reiterated a target of $18 million in synergies, indicating effective integration efforts while balancing growth opportunities [18] Market Positioning - The business environment has improved, with better positioning in markets and expanding enterprise momentum, as indicated by multiple enterprise wins with contract values ranging from $500,000 to over $5 million [10][19] - The company's "Data Highway" strategy aims to connect fragmented enterprise data and enhance operational efficiency through integration with various enterprise systems [12]