Services revenue increased 11% to $91.1 million from $81.7 million in Q3FY25
Operating profit of $6.3 million, compared to an operating loss of $1.2 million in Q3 FY25
Net Loss improved to $3.4 million compared to $14.3 million in Q3 FY25
Adjusted EBITDA increased 26% to $25.7 million from $20.5 million in Q3 FY25
WOODCLIFF LAKE, N.J., Feb. 9, 2026 /PRNewswire/ -- Powerfleet, Inc. ("Powerfleet" or the "Company") (NASDAQ:AIOT) reported its financial results for the third quarter ended December 31, 2025.
MANAGEMENT COMMENTARY
"This was the first quarter in which year-over-year results reflect the total combined businesses, and Powerfleet delivered another quarter of solid execution across the organization," said Steve Towe, Chief Executive Officer of Powerfleet. "Total revenue reached a company high of $113.5 million, driven by strong recurring revenue growth reflecting an 11% year-over-year increase in high value services which now represents 80% of total revenue."
"In Q3 we were awarded a major South Africa public sector contract to deliver meaningful AI video and visibility recurring services to fleets collectively operating more than 100,000 total assets - a landmark proof point of Unity's ability to secure large scale wins across mission-critical operations. As a result of this we are maintaining investments in operating expenses to satisfy an expected material increase in future demand," added Towe.
"Operationally, we are continuing to see the benefits of disciplined execution and robust cost synergy realization. Adjusted EBITDA increased 26% year-over-year to $25.7 million; operating income improved to $6.3 million, and adjusted EBITDA margins expanded to 23% from 19% in the prior year period," concluded Towe.
THIRD QUARTER FY2026 FINANCIAL METRICS:
Third Quarter Fiscal 2026 Key GAAP Measures.
Total revenue reached $113.5 million, an increase of 7% year-over-year, driven by expanding adoption of Powerfleet's AIoT platform. Q3 FY25 revenue of $106.4 million included $2.0 million of unbundled product revenue from the legacy Fleet Complete business, which ceased to be accelerated effective April 1, 2025.
Gross profit increased 7% year-over-year to $62.7 million, with gross margin remaining consistent at 55%, compared to $58.8 million and a 55% margin in Q3 FY25.
Income from operations was $6.3 million compared to an operating loss of $1.2 million in the prior year.
Net loss attributable to common stockholders was $3.4 million, or $0.03 per share, compared to a net loss of $14.3 million, or $0.11 per share, in the prior year.
Net loss margin improved to 3% from 13% in the prior year.
Third Quarter Fiscal 2026 Key Non-GAAP Measures.
Adjusted EBITDA increased 26% year-over-year to $25.7 million from $20.5 million1 reflecting organic revenue growth, strong operating leverage, and disciplined cost management.
Adjusted EBITDA margin increased to 23% from 19% in the prior year, driven by the realization of cost synergies and underlying operating leverage.
Adjusted net income per share was $0.02, up from $0.01 in the prior-year quarter, excluding restructuring, integration-related costs, and amortization of intangible assets.
Adjusted net debt to adjusted EBITDA2 improved to 2.7x, compared to 3.4x at fiscal year-end 2025. Quarter-end total debt, cash and net debt were $277.5 million, $35.9 million and $241.6 million, respectively.
1 Prior-year Adjusted EBITDA recast to reflect methodology refinement disclosed in Q2 FY26. See 'Use of Non-GAAP Financial Measures' for details.2 Adjusted net debt to adjusted EBITDA is a non-GAAP financial measure which the Company defines as total debt, less cash, and divided by trailing twelve month adjusted EBITDA, as defined herein. See "Annex A: Non-GAAP Financial Measures" for details.
FULL-YEAR 2026 FINANCIAL OUTLOOK
The Company is updating its full-year guidance to reflect recent performance and planned investments.
Revenue guidance has been tightened, with full-year revenue now expected to be in the range of $440 million to $445 million, compared to prior guidance of $435 million to $445 million.
The Company now expects adjusted EBITDA growth of approximately 45% year-over-year, compared to prior guidance of 45% to 55%, reflecting retained investments in operating expenses required to support the anticipated revenue ramp from the more than 100,000 subscriber South Africa public sector opportunity beginning in the second half of fiscal year 2027.
Adjusted net debt to adjusted EBITDA leverage ratio is expected to improve by approximately one full turn, from 3.4x as of March 31, 2025, to approximately 2.4x by March 31, 2026, compared to prior guidance of an improvement to approximately 2.25x.
Powerfleet provides guidance for adjusted EBITDA and adjusted net debt to adjusted EBITDA leverage ratio, which are non-GAAP financial measures. Powerfleet does not provide guidance for the most directly comparable GAAP financial measures or a reconciliation of each of these forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measure because it is unable to predict, without unreasonable effort, the timing or amount of certain items that are included in the applicable GAAP financial measure but excluded from adjusted EBITDA and/or adjusted net debt to adjusted EBITDA leverage ratio. These items may include, among others, stock-based compensation, acquisition-related expenses, fair-value adjustments, restructuring charges and other non-recurring items. The variability of these items could have a significant impact on Powerfleet's future GAAP financial results, and therefore, Powerfleet is unable to provide a reconciliation at this time.
INVESTOR CONFERENCE CALL AND BUSINESS UPDATE
Powerfleet management will hold a conference call on Monday, February 9, 2026, at 8:30 a.m. Eastern time (5:30 a.m. Pacific time) to discuss results for the third quarter fiscal 2026 ended December 31, 2025, and provide a business update.
Date: Monday, February 9, 2026Time: 8:30 a.m. Eastern time (5:30 a.m. Pacific time)Toll Free: 888-506-0062International: 973-528-0011Participant Access Code: 935500
The conference call will be broadcast simultaneously and available for replay here. Additionally, both the webcast and accompanying slide presentation will be available via the investor section of Powerfleet's website at ir.powerfleet.com.
USE OF NON-GAAP FINANCIAL MEASURES
Management evaluates the financial performance of our business on a variety of key indicators, including non-GAAP measures of adjusted EBITDA, adjusted EBITDA margin, adjusted EBITDA gross margin, adjusted net income per share, adjusted EBITDA leverage ratio, net debt and adjusted net debt. Reference to these non-GAAP measures should be considered in addition to results prepared under current accounting standards, but are not a substitute for, or superior to, GAAP results. These non-GAAP measures are provided to enhance investors' overall understanding of Powerfleet's current financial performance. Specifically, Powerfleet believes the non-GAAP measures provide useful information to both management and investors by excluding certain expenses, gains and losses and fluctuations in currency rates that may not be indicative of its core operating results and business outlook. These non-GAAP measures are not measures of financial performance or liquidity under GAAP and, accordingly, should not be considered as an alternative to total revenues, net income, net income margin, gross margin, net income per share or total debt as an indicator of operating performance or liquidity. Because Powerfleet's method for calculating the non-GAAP measures may differ from other companies' methods, the non-GAAP measures may not be comparable to similarly titled measures reported by other companies. A reconciliation of all non-GAAP financial measures included in this press release to the most directly comparable GAAP financial measures is provided in Annex A titled "Non-GAAP Financial Measures," including a description of these non-GAAP financial measures and the reasons why management uses these measures.
ABOUT POWERFLEET
Powerfleet (NASDAQ:AIOT, JSE: PWR)) is a global leader in the artificial intelligence of things (AIoT) software-as-a-service (SaaS) mobile asset industry. With more than 30 years of experience, Powerfleet unifies business operations through the ingestion, harmonization, and integration of data, irrespective of source, and delivers actionable insights to help companies save lives, time, and money. Powerfleet's ethos transcends our data ecosystem and commitment to innovation; our people-centric approach empowers our customers to realize impactful and sustained business improvement. The company is headquartered in New Jersey, United States, with offices around the globe. Explore more at www.powerfleet.com. Powerfleet has a primary listing on The Nasdaq Global Market and a secondary listing on the Main Board of the Johannesburg Stock Exchange (JSE).
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of federal securities laws. Powerfleet's actual results may differ from its expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Forward-looking statements may be identified by words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "continue," and similar expressions.
These forward-looking statements include, without limitation, our expectations with respect to our beliefs, plans, goals, objectives, expectations, anticipations, assumptions, estimates, intentions and future performance, as well as anticipated financial impacts of the business combination with MiX Telematics and the acquisition of Fleet Complete. Forward-looking statements involve significant known and unknown risks, uncertainties and other factors, which may cause our actual results, performance or achievements to be materially different from the future results, performance or achievements expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be forward-looking statements. Most of these factors are outside our control and are difficult to predict. The risks and uncertainties referred to above include, but are not limited to, risks related to: (i) the possibility that the anticipated cost savings, synergies and operational benefits from the business combination with MiX Telematics and the acquisition of Fleet Complete may not be fully realized or may take longer than expected, and that the combined business may not perform as expected; (ii) global economic conditions as well as exposure to foreign exchange, political, trade and geographic risks, including tariffs and the conflict in the Middle East; (iii) disruptions or limitations in our supply chain, particularly with respect to key components; (iv) operational risks, including the successful implementation of internal business and information technology (IT) systems; (v) technological changes or product developments that may be more complex, costly, or less effective than expected; (vi) cybersecurity risks and our ability to protect our IT systems from breaches; (vii) competitive pressures from a broad range of local, regional, national and other providers of wireless solutions; (viii) our ability to effectively navigate the international political, economic and geographic landscape; (ix) risks related to the protection and enforcement of our intellectual property rights; (x) changes in applicable laws and regulations or changes in generally accepted accounting policies, rules and practices; and (xi) such other factors as are set forth in the periodic reports filed by us with the Securities and Exchange Commission (SEC), including but not limited to those described under the heading "Risk Factors" in our annual reports on Form 10-K, quarterly reports on Form 10-Q and any other filings made with the SEC from time to time, which are available via the SEC's website at http://www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove to be incorrect, actual results may vary materially from those indicated or anticipated by these forward-looking statements. Therefore, you should not rely on any of these forward-looking statements.
The forward-looking statements included in this press release are made only as of the date of this press release, and except as otherwise required by applicable securities law, we assume no obligation, nor do we intend to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances.
Powerfleet Investor ContactsCarolyn Capaccio and Jody BurfeningAlliance Advisors IR[email protected]
Powerfleet Media ContactJonathan Bates[email protected]+44 121 717-5360
POWERFLEET, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended December 31,
Nine Months Ended December 31,
2024
2025
2024
2025
Revenues:
Products
$ 24,687
$ 22,402
$ 63,718
$ 62,429
Services
81,742
91,085
195,159
266,858
Total revenues
106,429
113,487
258,877
329,287
Cost of revenues:
Cost of products
17,129
15,312
43,809
43,858
Cost of services
30,517
35,487
75,294
103,671
Total cost of revenues
47,646
50,799
119,103
147,529
Gross profit
58,783
62,688
139,774
181,758
Operating expenses:
Selling, general and administrative expenses
55,405
51,770
147,522
159,584
Research and development expenses
4,621
4,572
11,157
13,623
Total operating expenses
60,026
56,342
158,679
173,207
(Loss) profit from operations
(1,243)
6,346
(18,905)
8,551
Interest income
359
111
831
569
Interest expense, net
(7,942)
(6,844)
(14,675)
(20,607)
Other (expense) income, net
(2,011)
14
(961)
(1,775)
Net loss before income taxes
(10,837)
(373)
(33,710)
(13,262)
Income tax expense
(3,513)
(2,991)
(4,821)
(4,624)
Net loss before non-controlling interest
(14,350)
(3,364)
(38,531)
(17,886)
Non-controlling interest
1
—
(17)
—
Net loss
(14,349)
(3,364)
(38,548)
(17,886)
Preferred stock dividend
—
—
(25)
—
Net loss attributable to common stockholders
$ (14,349)
$ (3,364)
$ (38,573)
$ (17,886)
Net loss per share attributable to common stockholders - basic and diluted
$ (0.11)
$ (0.03)
$ (0.33)
$ (0.13)
Weighted average common shares outstanding - basic and diluted
132,189
133,876
115,650
133,632
POWERFLEET, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
March 31, 2025
December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents
$ 44,392
$ 31,215
Restricted cash
4,396
4,635
Accounts receivables, net
78,623
92,223
Inventory, net
18,350
22,064
Prepaid expenses and other current assets
23,319
24,941
Total current assets
169,080
175,078
Fixed assets, net
58,011
63,018
Goodwill
383,146
413,344
Intangible assets, net
258,582
264,281
Right-of-use asset
12,339
11,521
Severance payable fund
3,796
4,322
Deferred tax asset
3,934
4,999
Other assets
21,183
22,896
Total assets
$ 910,071
$ 959,459
LIABILITIES
Current liabilities:
Short-term bank debt and current maturities of long-term debt
$ 41,632
$ 46,288
Accounts payable
41,599
48,432
Accrued expenses and other current liabilities
45,327
