Powerfleet Reports Annual FY2025 Results: A Breakout Year of Strategic Transformation and Scaled Growth

Rhea-AI Summary

Powerfleet (AIOT) reported strong financial results for FY2025, with total revenue growing 26% to $362.5M and SaaS recurring revenue accounting for ~75%. The company's adjusted EBITDA surged 65% YoY to $71M, with margins expanding 500bps to 20%. Q4 performance was particularly robust, with revenue up 42% YoY to $103.6M and adjusted EBITDA growing 84% to $20.4M. The company successfully integrated two major acquisitions, expanding its subscriber base 4x to 2.8M and customer base to 48,000. Key growth drivers included AI video solutions growing over 20% and warehouse safety solutions up 17%. The Unity platform gained recognition as the #1 global solution by ABI Research, while the company achieved $16M in annualized cost synergies. Net debt at quarter end was $225M, beating guidance by $6.4M.

Positive

• Total revenue grew 26% to $362.5M with 75% being high-margin recurring SaaS revenue
• Adjusted EBITDA increased 65% to $71M with margins expanding 500bps to 20%
• Achieved $16M in annualized cost synergies with $11M contributing to adjusted EBITDA
• Subscriber base expanded 4x to 2.8M, positioning company among top three global AIoT SaaS providers
• AI video solutions grew over 20% and warehouse safety solutions up 17%
• Q4 adjusted gross margin improved to 60% from 53% year-over-year
• International operations grew organically by 13% in FY25

Negative

• Net loss of $0.09 per share in Q4, though improved from $0.19 loss year-over-year
• Significant debt level with net debt at $225M
• Incurred $7.5M in one-time transaction, integration, and restructuring costs
• Operating expenses increased significantly to $54.2M from $37.6M due to Fleet Complete acquisition

Insights

Financial Analyst

Powerfleet delivered exceptional growth with 26% revenue increase, 65% EBITDA growth, and 500bps margin expansion through strategic acquisitions and organic growth.

Powerfleet has delivered a standout fiscal year 2025 with total revenue surging 26% to $362.5 million, demonstrating remarkable execution of their transformation strategy. The company has successfully shifted to a subscription-first model, with approximately 75% of revenue now coming from high-margin recurring SaaS revenue – a critical metric that provides stability and predictability to future cash flows.

Most impressive is the company's profitability expansion, with adjusted EBITDA climbing 65% to $71 million and EBITDA margins widening by 500 basis points to 20%. This margin expansion signals the company is achieving meaningful operating leverage and successfully integrating its acquisitions. The $16 million in annualized cost synergies extracted in FY25 demonstrates disciplined execution in consolidating operations.

Q4 results accelerated this momentum, with revenue jumping 42% year-over-year to $103.6 million. The service revenue component surged 49% to $81.8 million – further validation of the subscription model's traction. The adjusted gross margin expansion to over 60% from 53% in the prior year reflects both scale advantages and a higher-value solution mix.

The balance sheet shows net debt of $225 million, which outperformed management guidance by $6.4 million. While the company maintains substantial debt from its acquisition strategy, the accelerating EBITDA growth improves debt servicing capability.

The strategic pivot to high-value AI video and in-warehouse safety solutions (now 50%+ of new sales) coupled with international growth of 13% positions Powerfleet for sustained expansion despite acknowledged macroeconomic headwinds. With a subscriber base that expanded fourfold to 2.8 million and a customer base that now includes over half the Fortune 500, Powerfleet has established itself as a top-tier player in the AIoT SaaS market.

Total revenue growth for fiscal 2025 of 26% to $362.5 million, with ~75% SaaS recurring revenue.

Annual adjusted EBITDA climbed 65% year-over-year to $71 million, with adjusted EBITDA margin expanding 500 basis points to 20%.

Q4 total revenue increased 42% year-over-year to $103.6 million, with Service revenue increasing 49% to $81.8m, while adjusted EBITDA grew 84% to $20.4 million.

Q4 total adjusted gross margin exceeded 60%, compared to 53% in the prior year.

Extended Conference Call to be Held at 8:30am ET; Slide Presentation Accessible Here

WOODCLIFF LAKE, N.J., June 16, 2025 /PRNewswire/ -- Powerfleet, Inc. (Nasdaq: AIOT) reported its financial results for the fiscal year and the fourth quarter ended March 31, 2025.

MANAGEMENT COMMENTARY

"Fiscal 2025 was a true milestone year for Powerfleet – a period in which we executed a bold reinvention strategy integrating two major acquisitions in just 12 months, achieved our organic growth and profitability metrics, and established Powerfleet as a global AIoT SaaS leader – with the Unity platform at the center of our customer value creation strategy," said Steve Towe, Powerfleet CEO.

"As we enter fiscal 2026, we do so as a stronger, more focused company, by proactively eliminating low-quality and non-strategic revenue from the acquired businesses. Our go-forward, high-quality revenue streams delivered strong organic growth year-over-year in FY25, with AI video growing more than 20% and in-warehouse safety solutions growing 17%. While we remain mindful of macroeconomic headwinds, we are confident in expanding our growth in FY26, particularly in the second half, driven by a strong, expanding pipeline and supported by the resilience of our international operations which grew organically by 13% in FY25."

Towe added, "With our Unity data highway as the central engine, we're ready to scale faster, deliver greater value to customers, and continue unlocking the full potential of the company within the dynamic market we serve."

FISCAL YEAR 2025 OPERATIONAL AND FINANCIAL HIGHLIGHTS 

Powerfleet delivered an accelerated transformation of the business in FY25 - executing an aggressive M&A strategy and unlocking the foundation for scalable, high-margin growth.

Full Year Financial Performance Highlights: Pro Forma Basis Reflecting FY'24 MiX Combination Comparatives 

• Total revenue increased 26% to $362.5 million, with ~75% derived from high-margin, recurring SaaS revenue - underscoring the successful pivot to a subscription-first business model. 
  
  
• Adjusted EBITDA increased 65% year-over-year to $71 million, with adjusted EBITDA margins expanding by 5% to 20%, reflecting disciplined execution, cost synergy realization and operating leverage. 
  
  
• The combined business achieved $16 million in annualized cost synergies during FY25, with $11 million flowing through to in-year adjusted EBITDA performance. 

Operational Scale and Reach 

• The subscriber base expanded 4x to 2.8 million, positioning Powerfleet among the top three global AIoT SaaS providers. 
  
  
• Customer base multiplied to 48,000, including over half the Fortune 500 - across 8 verticals primed for cross-sell and upsell opportunities. 
  
  
• Sales coverage doubled across North America, Europe, and Australasia. Indirect channel network has tripled to over 320 strategic alliances, including leading global telcos, vehicle and asset OEMs, and insurance partners. 

Go To Market Momentum 

• 600+ midmarket and enterprise customer logos were added in FY25, across key verticals such as logistics, food and beverage, automotive, and industrials. 
  
  
• Accelerated double-digit organic growth in key strategic solution sets of AI video and in-warehouse safety, alongside 13% year on year growth in international operations.
  
  
• Sales efforts continued to drive high-value wins, including a major Q4 Unity AI video safety partnership win with a large North American student transportation company managing 9,000 drivers across 34 states,
   
• Exiting the year with 50%+ of all new sales - high value AI video and in-warehouse safety and compliance solutions, representing a significant global sales motion shift year on year.

Technology and Innovation 

• Unity recognized as the #1 global solution and platform portfolio by ABI Research, reflecting leadership in platform depth, AI maturity, and usability. 
  
  
• Quadrupled Unity Data Highway-dedicated engineering headcount to over 400 full time employees, fueling platform innovation
   
• Gained momentum and sales traction with device-agnostic, single pane of glass solution

FOURTH QUARTER 2025 FINANCIAL RESULTS: PRO FORMA BASIS REFLECTING FY'24 MIX COMBINATION COMPARATIVES 

Total revenue grew 42% year-over-year to $103.6 million, driven by the Fleet Complete acquisition and AI video solutions. Service revenue rose 49% to $81.8 million while product revenue grew 23% to $21.9 million,

Gross profit increased 42% to $54.8 million. On an adjusted basis, excluding the amortization of acquisition-related intangibles and post-acquisition inventory rationalization, gross profit rose by $24.0 million, or 62%, to $62.6 million. Adjusted service gross margin expanded significantly, increasing by 7.6 percentage points to 68.8%, after excluding $5.2 million in non-cash amortization. 

Adjusted product gross margin also improved, rising to 28.7% from 27.3% in the prior year, after excluding $2.6 million in acquisition-related inventory write-offs. As a result, total adjusted gross margin exceeded 60%, compared to 53.0% in the prior year. 

Operating expenses totaled $61.7 million, including $7.5 million in one-time transaction, integration, and restructuring costs, consistent with the level of one-time expenses incurred in the prior year. Excluding one-time items, adjusted operating expenses were $54.2 million, up from $37.6 million, with the increase primarily driven by the addition of Fleet Complete. 

Adjusted EBITDA increased 84% to $20.4 million, up from $11.1 million in the prior year, reflecting contributions from the Fleet Complete acquisition, organic growth, gross margin expansion and cost synergies. Net loss attributable to common stockholders was $0.09 per share, compared to $0.19 per share in the prior year, reflecting improved financial performance and an increase in shares outstanding. After adjusting for one-time expenses and amortization of acquisition-related intangibles, adjusted net income was $0.02 per share, up from a loss of $0.01 per share in the prior year. 

Net debt at quarter end was $225.0 million, consisting of $48.8 million in cash and $273.8 million total debt. Net debt, adjusted for $3.6 million in unsettled transaction costs, was $228.6 million, outperforming our year-end guidance of approximately $235 million by $6.4 million. 

INVESTOR CONFERENCE CALL AND BUSINESS UPDATE

Powerfleet management will hold a conference call on Monday, June 16, 2025, at 8:30 a.m. Eastern time (5:30 a.m. Pacific time) to discuss results for the fourth quarter and fiscal year ended March 31, 2025, and provide a business update.

Date: Monday, June 16, 2025
Time: 8:30 a.m. Eastern time (5:30 a.m. Pacific time)
Toll Free: 888-506-0062
International: 973-528-0011
Participant Access Code: 539753
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.

NON-GAAP FINANCIAL MEASURES 

To supplement its financial statements presented in accordance with Generally Accepted Accounting Principles (GAAP), Powerfleet provides certain non-GAAP measures of financial performance. These non-GAAP measures include adjusted EBITDA, adjusted gross margin, adjusted gross profit, adjusted service margin, adjusted product margin, adjusted operating expenses, adjusted net income per share and 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 net income, gross margin, gross profit, total debt, cash flow from operating activities or earnings per share 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. Reconciliation of all non-GAAP measures included in this press release to the most directly comparable GAAP measures can be found in the financial tables included in this press release.

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 our transactions with MiX Telematics and 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) future global economic and business conditions, including the effect of conflicts in certain geographies and the potential imposition of tariffs; (ii) integration of our, MiX Telematics' and Fleet Complete's businesses and the ability to recognize the anticipated synergies and benefits of the transactions with MiX Telematics and Fleet Complete; (iii) the commercial, financial, reputational and regulatory risks to our business that may arise as a consequence of operating across multiple geographies; (iv) disruptions in our global supply chain or failures by subcontractors; (v) the loss of any of our key customers or reduction in the purchase of our products by any such customers; (vi) reliance on third-party channel partner relationships; (vii) our inability to adequately protect our intellectual property; (viii) changes in technology or products, which may be more difficult or costly, or less effective, than anticipated; (ix) potential breaches of our information technology systems; (x) our ability to obtain additional capital to fund our operations; 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 Contacts
Carolyn Capaccio and Jody Burfening
LHA Investor Relations
AIOTIRTeam@lhai.com

Powerfleet Media Contact
Jonathan Bates
jonathan.bates@powerfleet.com 
+44 121 717-5360

 

POWERFLEET, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data)
	Three Months Ended March 31,				Year Ended March 31,
	2024		2025		2024		2025
	Pro Forma Combined		Consolidated		Pro Forma Combined		Consolidated
Revenues:
Products	$             17,793		$             21,866		$             67,665		$             85,584
Services	55,029		81,772		219,239		276,931
Total revenues	72,822		103,638		286,904		362,515
Cost of revenues:
Cost of products	12,935		18,152		48,316		61,961
Cost of services	21,324		30,723		79,636		106,017
Total cost of revenues	34,259		48,875		127,952		167,978
Gross profit	38,563		54,763		158,952		194,537
Operating expenses:
Selling, general and administrative expenses	41,366		56,839		151,839		204,361
Research and development expenses	3,733		4,904		14,793		16,061
Total operating expenses	45,099		61,743		166,632		220,422
Loss from operations	(6,536)		(6,980)		(7,680)		(25,885)
Interest income	627		95		1,480		926
Interest expense	(1,410)		(5,655)		(4,521)		(20,330)
Bargain purchase - Movingdots	—		—		1,800		—
Other expense, net	—		(202)		(266)		(1,163)
Net loss before income taxes	(7,319)		(12,742)		(9,187)		(46,452)
Income tax (expense) benefit	(1,917)		304		(7,014)		(4,517)
Net loss before non-controlling interest	(9,236)		(12,438)		(16,201)		(50,969)
Non-controlling interest	(12)		(1)		(50)		(18)
Net loss	(9,248)		(12,439)		(16,251)		(50,987)
Accretion of preferred stock	(9,996)		—		(15,480)		—
Preferred stock dividend	(1,129)		—		(4,514)		(25)
Net loss attributable to common stockholders	$            (20,373)		$            (12,439)		$            (36,245)		$            (51,012)
Net loss per share attributable to common stockholders - basic and diluted	$                (0.19)		$                (0.09)		$                (0.34)		$                (0.43)
Weighted average common shares  outstanding - basic and diluted	106,894		132,793		106,894		119,877

 

POWERFLEET, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except per share data)
		March 31, 2024		March 31, 2025
		Pro Forma Combined		Consolidated
ASSETS
Current assets:
Cash and cash equivalents		$                    51,091		$                    44,392
Restricted cash		86,104		4,396
Accounts receivables, net		55,008		78,623
Inventory, net		25,800		18,350
Prepaid expenses and other current assets		17,826		23,319
Total current assets		235,829		169,080
Fixed assets, net		48,306		58,011
Goodwill		121,713		383,146
Intangible assets, net		40,444		258,582
Right-of-use asset		11,222		12,339
Severance payable fund		3,796		3,796
Deferred tax asset		3,874		3,934
Other assets		19,090		21,183
Total assets		$                  484,274		$                  910,071
LIABILITIES
Current liabilities:
Short-term bank debt and current maturities of long-term debt		$                    22,109		$                    41,632
Accounts payable		27,174		41,599
Accrued expenses and other current liabilities		33,589		45,327
Deferred revenue - current		12,236		17,375
Lease liability - current		2,648		5,076
Total current liabilities		97,756		151,009
Long-term debt - less current maturities		113,810		232,160
Deferred revenue - less current portion		4,892		5,197
Lease liability - less current portion		8,773		8,191
Accrued severance payable		4,597		6,039
Deferred tax liability		18,669		57,712
Other long-term liabilities		2,980		3,021
Total liabilities		251,477		463,329
Convertible redeemable preferred stock: Series A		90,273		—
STOCKHOLDERS' EQUITY
Preferred stock		—		—
Common stock		63,842		1,343
Additional paid-in capital		200,218		671,400
Accumulated deficit		(78,516)		(205,783)
Accumulated other comprehensive loss		(17,133)		(8,850)
Treasury stock		(25,997)		(11,518)
Total stockholders' equity		142,414		446,592
Non-controlling interest		110		150
Total equity		142,524		446,742
Total liabilities, convertible redeemable preferred stock, and stockholders' equity		$                  484,274		$                  910,071

 

POWERFLEET, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)
		Year Ended March 31,
		2024		2025
		Pro Forma Combined		Consolidated
Cash flows from operating activities
Net loss		$                (16,251)		$                (50,987)
Adjustments to reconcile net loss to cash provided by (used in) operating activities:
Non-controlling interest		50		18
Gain on bargain purchase		(1,800)		—
Inventory write-downs		2,172		4,480
Stock-based compensation expense		5,214		9,362
Depreciation and amortization		29,548		47,494
Impairment of long-lived assets		139		—
Right-of-use assets, non-cash lease expense		2,919		5,007
Derivative mark-to-market adjustment		—		(504)
Bad debts expense		7,534		9,418
Deferred income taxes		3,235		(4,872)
Shares issued for transaction bonuses		—		889
Lease termination and modification losses		—		295
Other non-cash items		6,338		1,061
Changes in operating assets and liabilities:
Accounts receivables		(9,298)		(14,048)
Inventory		(601)		5,729
Prepaid expenses and other current assets		(1,078)		5,474
Deferred costs		(8,514)		(8,437)
Deferred revenue		(180)		1,748
Accounts payable and accrued expenses		9,731		(12,162)
Lease liabilities		(2,851)		(4,558)
Accrued severance payable		15		1,248
Net cash provided by (used in) operating activities		26,322		(3,345)
Cash flows from investing activities:
Acquisition, net of cash assumed		—		(137,112)
Proceeds from sale of fixed assets		—		12
Capitalized software development costs		(9,512)		(13,782)
Capital expenditures		(20,709)		(20,008)
Deferred consideration paid		—		—
Repayment of loan advanced to external parties		—		294
Net cash used in investing activities		(30,221)		(170,596)
Cash flows from financing activities:
Repayment of long-term debt		(14,116)		(2,642)
Short-term bank debt, net		(158)		19,551
Deferred consideration paid		(1,955)		—
Purchase of treasury stock upon vesting of restricted stock		(674)		(2,836)
Repayment of financing lease		(129)		—
Payment of preferred stock dividend and redemption of preferred stock		(3,385)		(90,298)
Proceeds from private placement, net		—		66,459
Proceeds from long-term debt		115,000		125,000
Payment of long-term debt costs		(1,081)		(1,410)
Proceeds from exercise of stock options, net		36		1,898
Cash paid on dividends to affiliates		(5,320)		—
Net cash provided by financing activities		88,218		115,722
Effect of foreign exchange rate changes on cash and cash equivalents		(2,870)		(2,657)
Net increase (decrease) in cash and cash equivalents, and restricted cash		81,449		(60,876)
Cash and cash equivalents, and restricted cash at beginning of the period		55,746		109,664
Cash and cash equivalents, and restricted cash at end of the period		$                137,195		$                  48,788
Reconciliation of cash, cash equivalents, and restricted cash, beginning of the period
Cash and cash equivalents		54,656		24,354
Restricted cash		1,090		85,310
Cash, cash equivalents, and restricted cash, beginning of the period		$                  55,746		$                109,664
Reconciliation of cash, cash equivalents, and restricted cash, end of the period
Cash and cash equivalents		51,091		44,392
Restricted cash		86,104		4,396
Cash, cash equivalents, and restricted cash, end of the period		$                137,195		$                  48,788
Supplemental disclosure of cash flow information:
Cash paid for:
Taxes		$                    3,381		$                    4,283
Interest		$                    2,414		$                  15,335
Noncash investing and financing activities:
Common stock issued for transaction bonus		$                         —		$                           9
Shares issued in connection with MiX Combination		$                         —		$                362,005
Shares issued in connection with Fleet Complete acquisition		$                         —		$                  21,343
Value of licensed intellectual property acquired in connection with Movingdots acquisition		$                    1,517		$                         —
Preferred stock dividends paid in shares		$                    1,108		$                         —
Issuance of derivative on long-term debt		$                    2,226		$                         —

 

POWERFLEET, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO ADJUSTED EBITDA FINANCIAL MEASURES
(In thousands)
	Three Months Ended March 31,				Year Ended March 31,
	2024		2025		2024		2025
	Pro Forma Combined		Consolidated		Pro Forma Combined		Consolidated
Net loss attributable to common stockholders	$         (20,373)		$            (12,439)		$            (36,245)		$        (51,012)
Non-controlling interest	12		1		50		18
Preferred stock dividend and accretion	11,125		—		19,994		25
Interest expense, net	935		5,560		3,192		19,404
Other expense, net	55		—		87		—
Income tax expense (benefit)	1,917		(304)		7,014		4,517
Depreciation and amortization	8,369		14,452		29,548		47,494
Stock-based compensation	1,311		924		5,214		9,362
Foreign currency losses	438		502		1,493		1,790
Restructuring-related expenses	324		6,969		1,065		10,077
Gain on bargain purchase - Movingdots	—		—		(1,800)		—
Impairment of long-lived assets	139		—		139		—
Derivative mark-to-market adjustment	—		(29)		—		(504)
Recognition of pre-October 1, 2024 contract assets (Fleet Complete)	—		1,768		—		3,809
Net profit on fixed assets	(66)		—		(115)		—
Contingent consideration remeasurement	(250)		—		(1,299)		—
Acquisition-related expenses	7,177		428		14,313		21,300
Integration-related expenses	—		2,592		—		4,851
Non-recurring transitional service agreement costs	—		—		482		—
Adjusted EBITDA	$           11,113		$              20,424		$             43,132		$          71,131

 

POWERFLEET, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP NET (LOSS) INCOME FINANCIAL MEASURES
(In thousands)
	Three Months Ended March 31,				Year Ended March 31,
	2024		2025		2024		2025
	Pro Forma Combined		Consolidated		Pro Forma Combined		Consolidated
Net loss	$              (9,248)		$            (12,439)		$            (16,251)		$            (50,987)
Incremental intangible assets amortization expense as a result of MiX Telematics and Fleet Complete business combinations	—		5,201		—		14,752
Stock-based compensation (non- recurring/accelerated cost)	—		—		—		4,693
Foreign currency losses	438		502		1,493		1,790
Income tax effect of net foreign exchange (losses) gains	389		(377)		279		(602)
Restructuring-related expenses	324		6,969		1,065		10,077
Income tax effect of restructuring costs	—		(53)		(7)		(207)
Derivative mark-to-market adjustment	—		(29)		—		(504)
Acquisition-related expenses	7,177		428		14,313		21,300
Integration-related expenses	—		2,592		—		4,851
Non-recurring transitional service agreement costs	—		—		482		—
Income tax effect of non-recurring transitional service agreement costs	(130)		—		(130)		—
Contingent consideration remeasurement	(250)		—		(1,299)		—
Non-GAAP net (loss) income	$              (1,300)		$                2,794		$                   (55)		$               5,163
Weighted average shares outstanding	106,894		132,793		106,894		119,877
Non-GAAP net (loss) income per share - basic	$                (0.01)		$                  0.02		$              (0.001)		$                 0.04

 

POWERFLEET, INC. AND SUBSIDIARIES
ADJUSTED GROSS PROFIT MARGINS
(In thousands)
	Three Months Ended March 31,				Year Ended March 31,
	2024		2025		2024		2025
	Pro Forma Combined		Consolidated		Pro Forma Combined		Consolidated
Revenues:
Products	$          17,793		$         21,866		$          67,665		$         85,584
Services	55,029		81,772		219,239		276,931
Total revenues	72,822		103,638		286,904		362,515
Cost of revenues:
Cost of products	12,935		18,152		48,316		61,961
Cost of services	21,324		30,723		79,636		106,017
Total cost of revenues	34,259		48,875		127,952		167,978
Gross profit	$          38,563		54,763		$        158,952		$       194,537
Product margin	27.3 %		17.0 %		28.6 %		27.6 %
Service margin	61.2 %		62.4 %		63.7 %		61.7 %
Total gross profit margin	53.0 %		52.8 %		55.4 %		53.7 %
Incremental intangible assets amortization expense as a result of MiX Telematics and Fleet Complete business combinations	$                 —		$           5,201		$                 —		$         14,752
Inventory rationalization	$                 —		$           2,570		$                 —		$           3,310
Product margin	27.3 %		28.7 %		28.6 %		31.5 %
Service margin	61.2 %		68.8 %		63.7 %		67.0 %
Adjusted total gross profit margin	53.0 %		60.3 %		55.4 %		58.6 %

 

POWERFLEET, INC. AND SUBSIDIARIES
ADJUSTED OPERATING EXPENSES
(In thousands)
	Three Months Ended March 31,				Year Ended March 31,
	2024		2025		2024		2025
	Pro Forma Combined		Consolidated		Pro Forma Combined		Consolidated
Total operating expenses	$             45,099		$             61,743		$           166,632		$           220,422
Adjusted for once-off costs
Acquisition-related expenses	7,177		428		14,313		21,300
Integration-related costs	—		2,592		—		4,851
Stock-based compensation (non- recurring/accelerated cost)	—		—		—		4,693
Restructuring-related expenses	324		4,499		1,065		6,767
	7,501		7,519		15,378		37,611
Adjusted operating expenses	$             37,598		$             54,224		$           151,254		$           182,811

 

POWERFLEET, INC. AND MiX TELEMATICS CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data)
	Three Months Ended March 31, 2024
	Powerfleet Inc.		MiX Telematics		Adjustments to align disclosure		Pro Forma Combined
Revenues:
Products	$             12,081		$               6,705		$                 (993)		$             17,793
Services	21,659		32,377		993		55,029
Total revenues	33,740		39,082		—		72,822
Cost of revenues:
Cost of products	9,513		4,690		(1,268)		12,935
Cost of services	8,024		12,032		1,268		21,324
Total cost of revenues	17,537		16,722		—		34,259
Gross profit	16,203		22,360		—		38,563
Operating expenses:
Selling, general and administrative expenses	21,832		19,534		—		41,366
Research and development expenses	2,018		1,715		—		3,733
Total operating expenses	23,850		21,249		—		45,099
(Loss) income from operations	(7,647)		1,111		—		(6,536)
Interest income	259		368		—		627
Interest expense	(708)		(702)		—		(1,410)
Other (expense) income, net	(55)		55		—		—
Net (loss) income before income taxes	(8,151)		832		—		(7,319)
Income tax expense	(352)		(1,565)		—		(1,917)
Net loss before non-controlling interest	(8,503)		(733)		—		(9,236)
Non-controlling interest	(12)		—		—		(12)
Net loss	(8,515)		(733)		—		(9,248)
Accretion of preferred stock	(9,996)		—		—		(9,996)
Preferred stock dividend	(1,129)		—		—		(1,129)
Net loss attributable to common stockholders	$            (19,640)		$                 (733)		$                    —		$            (20,373)
Net loss per share attributable to common stockholders - basic and diluted	$                (0.55)		$                (0.01)				$                (0.19)
Weighted average common shares outstanding - basic	35,813		71,081				106,894

 

POWERFLEET, INC. AND MiX TELEMATICS CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data)
	Year Ended March 31, 2024
	Powerfleet Inc.		MiX Telematics		Adjustments to align disclosure		Pro Forma Combined
Revenues:
Products	$             49,313		$             21,600		$              (3,248)		$             67,665
Services	85,311		130,680		3,248		219,239
Total revenues	134,624		152,280		—		286,904
Cost of revenues:
Cost of products	36,916		14,628		(3,228)		48,316
Cost of services	31,003		45,405		3,228		79,636
Total cost of revenues	67,919		60,033		—		127,952
Gross profit	66,705		92,247		—		158,952
Operating expenses:
Selling, general and administrative expenses	76,144		75,695		—		151,839
Research and development expenses	8,675		6,118		—		14,793
Total operating expenses	84,819		81,813		—		166,632
(Loss) income from operations	(18,114)		10,434		—		(7,680)
Interest income	338		1,142		—		1,480
Interest expense	(2,174)		(2,347)		—		(4,521)
Bargain purchase - Movingdots	1,800		—		—		1,800
Other expense, net	(87)		(179)		—		(266)
Net (loss) income before income taxes	(18,237)		9,050		—		(9,187)
Income tax expense	(549)		(6,465)		—		(7,014)
Net (loss) income before non-controlling interest	(18,786)		2,585		—		(16,201)
Non-controlling interest	(50)		—		—		(50)
Net (loss) income	(18,836)		2,585		—		(16,251)
Accretion of preferred stock	(15,480)		—		—		(15,480)
Preferred stock dividend	(4,514)		—		—		(4,514)
Net (loss) income attributable to common stockholders	$            (38,830)		$               2,585		$                    —		$            (36,245)
Net (loss) income per share attributable to common stockholders - basic	$                (1.09)		$                 0.04				$                (0.34)
Weighted average common shares outstanding - basic	35,694		71,200				106,894

 

POWERFLEET, INC. AND MiX TELEMATICS CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except per share data)
	March 31, 2024
	Powerfleet Inc.		MiX Telematics		Pro Forma Combined
ASSETS
Current assets:
Cash and cash equivalents	$             24,354		$             26,737		$             51,091
Restricted cash	85,310		794		86,104
Accounts receivables, net	30,333		24,675		55,008
Inventory, net	21,658		4,142		25,800
Prepaid expenses and other current assets	8,133		9,693		17,826
Total current assets	169,788		66,041		235,829
Fixed assets, net	12,719		35,587		48,306
Goodwill	83,487		38,226		121,713
Intangible assets, net	19,652		20,792		40,444
Right-of-use asset	7,428		3,794		11,222
Severance payable fund	3,796		—		3,796
Deferred tax asset	2,781		1,093		3,874
Other assets	9,029		10,061		19,090
Total assets	$           308,680		$           175,594		$           484,274
LIABILITIES
Current liabilities:
Short-term bank debt and current maturities of long-term debt	$               1,951		$             20,158		$             22,109
Accounts payable	20,025		7,149		27,174
Accrued expenses and other current liabilities	13,983		19,606		33,589
Deferred revenue - current	5,842		6,394		12,236
Lease liability - current	1,789		859		2,648
Total current liabilities	43,590		54,166		97,756
Long-term debt - less current maturities	113,810		—		113,810
Deferred revenue - less current portion	4,892		—		4,892
Lease liability - less current portion	5,921		2,852		8,773
Accrued severance payable	4,597		—		4,597
Deferred tax liability	4,465		14,204		18,669
Other long-term liabilities	2,496		484		2,980
Total liabilities	179,771		71,706		251,477
Convertible redeemable preferred stock: Series A	90,273		—		90,273
STOCKHOLDERS' EQUITY
Preferred stock	—		—		—
Common stock	387		63,455		63,842
Additional paid-in capital	202,607		(2,389)		200,218
Accumulated deficit	(154,796)		76,280		(78,516)
Accumulated other comprehensive loss	(985)		(16,148)		(17,133)
Treasury stock	(8,682)		(17,315)		(25,997)
Total stockholders' equity	38,531		103,883		142,414
Non-controlling interest	105		5		110
Total equity	38,636		103,888		142,524
Total liabilities, convertible redeemable preferred stock, and stockholders' equity	$           308,680		$           175,594		$           484,274

 

POWERFLEET, INC. AND MiX TELEMATICS CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)
	Year Ended March 31, 2024
	Powerfleet Inc.		MiX Telematics		Pro Forma Combined
Cash flows from operating activities
Net (loss) income	$            (18,836)		$               2,585		$            (16,251)
Adjustments to reconcile net (loss) income to cash provided by operating activities:
Non-controlling interest	50		—		50
Gain on bargain purchase	(1,800)		—		(1,800)
Inventory reserve	1,557		615		2,172
Stock based compensation expense	4,104		1,110		5,214
Depreciation and amortization	9,098		20,450		29,548
Impairment of long-lived assets	—		139		139
Right-of-use assets, non-cash lease expense	2,919		—		2,919
Bad debts expense	2,309		5,225		7,534
Deferred income taxes	(281)		3,516		3,235
Other non-cash items	(55)		6,393		6,338
Changes in operating assets and liabilities:
Accounts receivables	(1,538)		(7,760)		(9,298)
Inventories	(780)		179		(601)
Prepaid expenses and other current assets	(564)		(514)		(1,078)
Deferred costs	481		(8,995)		(8,514)
Deferred revenue	(180)		—		(180)
Accounts payable and accrued expenses	8,786		945		9,731
Lease liabilities	(2,851)		—		(2,851)
Accrued severance payable, net	15		—		15
Net cash provided by operating activities	2,434		23,888		26,322
Cash flows from investing activities:
Capitalized software development costs	(3,540)		(5,972)		(9,512)
Capital expenditures	(3,673)		(17,036)		(20,709)
Net cash used in investing activities	(7,213)		(23,008)		(30,221)
Cash flows from financing activities:
Repayment of long-term debt	(14,116)		—		(14,116)
Short-term bank debt, net	(5,708)		5,550		(158)
Deferred consideration paid	—		(1,955)		(1,955)
Purchase of treasury stock upon vesting of restricted stock	(128)		(546)		(674)
Repayment of financing lease	(129)		—		(129)
Payment of preferred stock dividend and redemption of preferred stock	(3,385)		—		(3,385)
Proceeds from long-term debt	115,000		—		115,000
Payment of long-term debt costs	(1,081)		—		(1,081)
Proceeds from exercise of stock options, net	36		—		36
Cash paid on dividends to affiliates	—		(5,320)		(5,320)
Net cash from (used in) financing activities	90,489		(2,271)		88,218
Effect of foreign exchange rate changes on cash and cash equivalents	(1,135)		(1,735)		(2,870)
Net increase (decrease) in cash and cash equivalents, and restricted cash	84,575		(3,126)		81,449
Cash and cash equivalents, and restricted cash at beginning of the period	25,089		30,657		55,746
Cash and cash equivalents, and restricted cash at end of the period	$           109,664		$             27,531		$           137,195
Reconciliation of cash, cash equivalents, and restricted cash, beginning of the period
Cash and cash equivalents	24,780		29,876		54,656
Restricted cash	309		781		1,090
Cash, cash equivalents, and restricted cash, beginning of the period	$             25,089		$             30,657		$             55,746
Reconciliation of cash, cash equivalents, and restricted cash, end of the period
Cash and cash equivalents	24,354		26,737		51,091
Restricted cash	85,310		794		86,104
Cash, cash equivalents, and restricted cash, end of the period	$           109,664		$             27,531		$           137,195
Supplemental disclosure of cash flow information:
Cash paid for:
Taxes	$                  432		$               2,949		$               3,381
Interest	$               1,720		$                  694		$               2,414
Noncash investing and financing activities:
Value of licensed intellectual property acquired in connection with Movingdots acquisition	$               1,517		$                    —		$               1,517
Preferred stock dividends paid in shares	$               1,108		$                    —		$               1,108
Issuance of derivative on long-term debt	$               2,226		$                    —		$               2,226

 

POWERFLEET, INC. AND MiX TELEMATICS
RECONCILIATION OF GAAP TO ADJUSTED EBITDA FINANCIAL MEASURES
(In thousands)
	Three Months Ended March 31, 2024
	Powerfleet Inc.		MiX Telematics		Pro Forma Combined
Net loss attributable to common stockholders	$            (19,640)		$                 (733)		$        (20,373)
Non-controlling interest	12		—		12
Preferred stock dividend and accretion	11,125		—		11,125
Interest expense, net	601		334		935
Other expense, net	55		—		55
Income tax expense	352		1,565		1,917
Depreciation and amortization	1,943		6,426		8,369
Stock-based compensation	1,028		283		1,311
Foreign currency losses	43		395		438
Restructuring-related expenses	324		—		324
Impairment of long-lived assets	—		139		139
Net profit on fixed assets	—		(66)		(66)
Contingent consideration remeasurement	—		(250)		(250)
Acquisition-related expenses	6,078		1,099		7,177
Adjusted EBITDA	$               1,921		$               9,192		$          11,113

 

POWERFLEET, INC. AND MiX TELEMATICS
RECONCILIATION OF GAAP TO ADJUSTED EBITDA FINANCIAL MEASURES
(In thousands)
	Year Ended March 31, 2024
	Powerfleet Inc.		MiX Telematics		Pro Forma Combined
Net (loss) profit attributable to common stockholders	$            (38,830)		$               2,585		$            (36,245)
Non-controlling interest	50		—		50
Preferred stock dividend and accretion	19,994		—		19,994
Interest expense, net	1,987		1,205		3,192
Other expense, net	87		—		87
Income tax expense	549		6,465		7,014
Depreciation and amortization	9,098		20,450		29,548
Stock-based compensation	4,104		1,110		5,214
Foreign currency translation	(248)		1,741		1,493
Restructuring-related expenses	1,035		30		1,065
Gain on Bargain purchase - Movingdots	(1,800)		—		(1,800)
Impairment of long-lived assets	—		139		139
Net profit on fixed assets	—		(115)		(115)
Contingent consideration remeasurement	—		(1,299)		(1,299)
Acquisition-related expenses	11,218		3,095		14,313
Non-recurring transitional service agreement costs	—		482		482
Adjusted EBITDA	$               7,244		$             35,888		$             43,132

 

POWERFLEET, INC. AND MiX TELEMATICS
RECONCILIATION OF GAAP TO NON-GAAP NET (LOSS) INCOME FINANCIAL MEASURES
(In thousands)
	Three Months Ended March 31, 2024
	Powerfleet Inc.		MiX Telematics		Pro Forma Combined
Net (loss) income	$              (8,515)		$                 (733)		$              (9,248)
Foreign currency losses	43		395		438
Income tax effect of net foreign exchange losses	—		389		389
Restructuring-related expenses	324		—		324
Acquisition-related expenses	6,078		1,099		7,177
Non-recurring transitional service agreement costs	—		—		—
Income tax effect of non-recurring transitional service agreement costs	—		(130)		(130)
Contingent consideration remeasurement	—		(250)		(250)
Non-GAAP net (loss) income	$              (2,070)		$                  770		$              (1,300)
Weighted average shares outstanding	35,813		71,081		106,894
Non-GAAP net income per share - basic	$                (0.06)		$                 0.01		$                (0.01)

 

POWERFLEET, INC. AND MiX TELEMATICS
RECONCILIATION OF GAAP TO NON-GAAP NET (LOSS) INCOME FINANCIAL MEASURES
(In thousands)
	Year Ended March 31, 2024
	Powerfleet Inc.		MiX Telematics		Pro Forma Combined
Net (loss) income	$            (18,836)		$               2,585		$            (16,251)
Foreign currency (gains) losses	(248)		1,741		1,493
Income tax effect of net foreign exchange losses	—		279		279
Restructuring-related expenses	1,035		30		1,065
Income tax effect of restructuring costs	—		(7)		(7)
Acquisition-related expenses	11,218		3,095		14,313
Non-recurring transitional service agreement costs	—		482		482
Income tax effect of non-recurring transitional service agreement costs	—		(130)		(130)
Contingent consideration remeasurement	—		(1,299)		(1,299)
Non-GAAP net (loss) income	$              (6,831)		$               6,776		$                   (55)
Weighted average shares outstanding	35,694		71,200		106,894
Non-GAAP net (loss) income per share - basic	$                (0.19)		$                 0.10		$              (0.001)

 

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SOURCE Powerfleet

FAQ

What were Powerfleet's (AIOT) key financial results for FY2025?

Powerfleet reported total revenue growth of 26% to $362.5M, with 75% from SaaS recurring revenue. Adjusted EBITDA grew 65% to $71M with margins expanding to 20%.

How did Powerfleet's Q4 2025 performance compare to the previous year?

Q4 revenue increased 42% YoY to $103.6M, with service revenue up 49% to $81.8M. Adjusted EBITDA grew 84% to $20.4M, and adjusted gross margin improved to 60% from 53%.

What was Powerfleet's subscriber and customer base after acquisitions in FY2025?

The subscriber base expanded 4x to 2.8M users, and the customer base grew to 48,000, including over half of the Fortune 500 companies across 8 verticals.

How much cost synergy did Powerfleet achieve in FY2025?

The company achieved $16M in annualized cost synergies during FY2025, with $11M contributing to in-year adjusted EBITDA performance.

What is Powerfleet's current debt position as of Q4 2025?

Net debt at quarter end was $225.0M, consisting of $48.8M in cash and $273.8M total debt, outperforming year-end guidance by $6.4M.