Powerfleet Reports Q2 FY26 Financial Results with 7% Quarterly Sequential Increase in Total Revenue
Total revenue of $111.7 million, an increase of 45% in total and 9% organically year-over-year from $77.0M in Q2 FY25.
Services revenue of $89.3 million, an increase of 57% in total and 12% organically year-over-year from $56.7 million in Q2 FY25.
Gross profit of $62.6 million, an increase of 11% sequentially from $56.5 million in Q1 FY26.
Raising FY26 total revenue guidance to $435-$445 million from $430-$440 million.
WOODCLIFF LAKE, N.J., Nov. 10, 2025 /PRNewswire/ -- Powerfleet, Inc. ("Powerfleet" or the "Company") (Nasdaq: AIOT) reported its financial results for the second quarter ended September 30, 2025.
MANAGEMENT COMMENTARY:
"Q2 was a defining quarter for Powerfleet, marked by record revenue and strong performance across key financial and operational metrics," said Steve Towe, Chief Executive Officer of Powerfleet. "A quarterly sequential increase in total revenue of more than 7%, driven by expanding momentum in our AI-powered SaaS solutions and solid growth across our core global markets, is extremely encouraging."
"We achieved a key milestone – double-digit year-over-year organic annual recurring revenue growth – ahead of schedule, fueled by strong global traction across both direct and indirect channels, centered on our differentiated safety and compliance solutions," Towe continued. "Strong product revenue with a sequential revenue improvement of 27%, as well as solid sequential margin expansion, highlight continued momentum and resilience amid evolving macroeconomic conditions. We also delivered clear leverage across the P&L, with the rapid realization of our synergy programs driving meaningful bottom-line strength."
"These results underscore the significant value creation opportunity ahead and establish a strong platform for sustained growth and future performance."
SECOND QUARTER FY2026 FINANCIAL METRICS:
Powerfleet's second quarter results underscore the strength of its execution, with accelerating services revenue and strong momentum toward its adjusted EBITDA expansion targets.
Second Quarter Fiscal 2026 Key GAAP Measures.
Second Quarter Fiscal 2026 key non-GAAP measures.
FULL-YEAR 2026 FINANCIAL OUTLOOK:
The Company is increasing its financial guidance for revenue, with revenue now expected to be in the range of $435 million to $445 million versus the prior guidance of approximately $430 million to $440 million.
Following a detailed review of relevant SEC guidance on disclosure of non-GAAP financial measures, the Company concluded that its presentation of adjusted EBITDA will no longer include an EBITDA adjustment for "Recognition of pre-October 1, 2024, contract assets (Fleet Complete)." These amounts relate to limited hardware delivered by Fleet Complete prior to the acquisition but only invoiced and collected thereafter. The EBITDA adjustment was applied during a finite accounting transition period and was intended to align reported results more closely with operating cash flows.
As a result of this change, the Company is amending its prior FY26 annual guidance for:
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, November 10, 2025, at 8:30 a.m. Eastern time (5:30 a.m. Pacific time) to discuss results for the second quarter fiscal 2026 ended September 30, 2025, and provide a business update.
Date: Monday, November 10, 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: 706489
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.
JOIN US LIVE AT OUR 2025 VIRTUAL INVESTOR DAY EVENT
Powerfleet will host its Unity Innovation showcase, a virtual event for financial analysts and institutional investors, on Friday, November 14, 2025, from 9:00 a.m. to 11:00 a.m. Eastern time. This immersive event will spotlight the deep customer value created by Unity, Powerfleet's device-agnostic platform that is redefining how businesses unlock safety, visibility, compliance, sustainability, and operational efficiency at scale.
Registration for this virtual event is available here. A participation link will be shared following registration. A live webcast will also be accessible on the Investor Relations section of Powerfleet's website.
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 organic revenue growth 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 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) our ability to realize all of the anticipated benefits of the business combination with MiX Telematics and the acquisition of Fleet Complete, and the potential challenges associated with the ongoing integration of the businesses; (ii) global economic conditions as well as exposure to 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) technological changes or product developments that may be more complex, costly, or less effective than expected; (v) cybersecurity risks and our ability to protect our information technology systems from breaches; (vi) our inability to adequately protect our intellectual property; (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) changes in applicable laws and regulations or changes in generally accepted accounting policies, rules and practices; and (x) 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
Alliance Advisors IR
AIOTIRTeam@allianceadvisors.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 September 30,
Six Months Ended September 30,
2024
2025
2024
2025
Revenues:
Products
$ 20,293
$ 22,370
$ 39,031
$ 40,027
Services
56,725
89,309
113,417
175,773
Total revenues
77,018
111,679
152,448
215,800
Cost of revenues:
Cost of products
13,929
15,318
26,680
28,546
Cost of services
21,746
33,772
44,777
68,184
Total cost of revenues
35,675
49,090
71,457
96,730
Gross profit
41,343
62,589
80,991
119,070
Operating expenses:
Selling, general and administrative
expenses
37,335
54,151
92,117
107,814
Research and development expenses
3,435
4,194
6,536
9,051
Total operating expenses
40,770
58,345
98,653
116,865
Profit (loss) from operations
573
4,244
(17,662)
2,205
Interest income
168
262
472
458
Interest expense, net
(4,042)
(6,977)
(6,733)
(13,763)
Other income (expense), net
1,674
(546)
1,050
(1,789)
Net loss before income taxes
(1,627)
(3,017)
(22,873)
(12,889)
Income tax expense
(256)
(1,271)
(1,309)
(1,633)
Net loss before non-controlling interest
(1,883)
(4,288)
(24,182)
(14,522)
Non-controlling interest
(5)
—
(18)
—
Net loss
(1,888)
(4,288)
(24,200)
(14,522)
Preferred stock dividend
—
—
(25)
—
Net loss attributable to common
stockholders
$ (1,888)
$ (4,288)
$ (24,225)
$ (14,522)
Net loss per share attributable to common
stockholders - basic and diluted
$ (0.02)
$ (0.03)
$ (0.23)
$ (0.11)
Weighted average common shares
outstanding - basic and diluted
107,532
133,676
107,335
133,510
POWERFLEET, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
March 31, 2025
September 30, 2025
ASSETS
Current assets:
Cash and cash equivalents
$ 44,392
$ 27,898
Restricted cash
4,396
4,583
Accounts receivables, net
78,623
85,032
Inventory, net
18,350
22,466
Prepaid expenses and other current assets
23,319
27,858
Total current assets
169,080
167,837
Fixed assets, net
58,011
63,277
Goodwill
383,146
401,216
Intangible assets, net
258,582
262,765
Right-of-use asset
12,339
12,079
Severance payable fund
3,796
4,330
Deferred tax asset
3,934
3,962
Other assets
21,183
21,427
Total assets
$ 910,071
$ 936,893
LIABILITIES
Current liabilities:
Short-term bank debt and current maturities of long-term debt
$ 41,632
$ 43,206
Accounts payable
41,599
49,768
Accrued expenses and other current liabilities
45,327
41,419
Deferred revenue - current
17,375
17,199
Lease liability - current
5,076
4,756
Total current liabilities
151,009
156,348
Long-term debt - less current maturities
232,160
231,906
Deferred revenue - less current portion
5,197
4,899
Lease liability - less current portion
8,191
8,363
Accrued severance payable
6,039
5,584
Deferred tax liability
57,712
58,680
Other long-term liabilities
3,021
2,134
Total liabilities
463,329
467,914
STOCKHOLDERS' EQUITY
Preferred stock
—
—
Common stock
1,343
1,343
Additional paid-in capital
671,400
675,847
Accumulated deficit
(205,783)
(220,305)
Accumulated other comprehensive (loss) income
(8,850)
23,462
Treasury stock
(11,518)
(11,518)
Total stockholders' equity
446,592
468,829
Non-controlling interest
150
150
Total equity
446,742
468,979
Total liabilities and stockholders' equity
$ 910,071
$ 936,893
POWERFLEET, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Six Months Ended September 30,
2024
2025
Cash flows from operating activities
Net loss
$ (24,200)
$ (14,522)
Adjustments to reconcile net loss to cash (used in) provided by operating
activities:
Non-controlling interest
18
—
Inventory reserve
904
1,182
Stock based compensation expense
7,300
4,447
Depreciation and amortization
19,399
31,824
Right-of-use assets, non-cash lease expense
1,515
627
Derivative mark-to-market adjustment
(2,197)
(786)
Bad debts expense
4,369
4,378
Deferred income taxes
(283)
(1,864)
Shares issued for transaction bonuses
889
—
Lease termination and modification losses
184
91
Other non-cash items
1,522
1,564
Changes in operating assets and liabilities:
Accounts receivables
(12,553)
(7,562)
Inventories
955
(4,763)
Prepaid expenses and other current assets
(3,009)
(984)
Deferred costs
(3,619)
(4,718)
Deferred revenue
(99)
(612)
Accounts payable, accrued expenses and other current liabilities
(71)
2,524
Lease liabilities
(1,856)
(964)
Accrued severance payable, net
40
381
Net cash (used in) provided by operating activities
(10,792)
10,243
Cash flows from investing activities:
Acquisition, net of cash assumed
27,531
45
Proceeds from sale of fixed assets
217
18
Capitalized software development costs
(4,676)
(11,491)
Capital expenditures
(10,454)
(12,452)
Repayment of loan advanced to external parties
294
—
Net cash provided by (used in) investing activities
12,912
(23,880)
Cash flows from financing activities:
Repayment of long-term debt
(978)
(2,710)
Short-term bank debt, net
9,955
(617)
Purchase of treasury stock upon vesting of restricted stock
(2,836)
—
Payment of preferred stock dividend and redemption of preferred stock
(90,298)
—
Proceeds from private placement, net
61,851
—
Cash paid on dividends to affiliates
(6)
—
Net cash used in financing activities
(22,312)
(3,327)
Effect of foreign exchange rate changes on cash and cash equivalents
(436)
657
Net decrease in cash and cash equivalents, and restricted cash
(20,628)
(16,307)
Cash and cash equivalents, and restricted cash at beginning of the period
109,664
48,788
Cash and cash equivalents, and restricted cash at end of the period
$ 89,036
$ 32,481
Reconciliation of cash, cash equivalents, and restricted cash, beginning
of the period
Cash and cash equivalents
24,354
44,392
Restricted cash
85,310
4,396
Cash, cash equivalents, and restricted cash, beginning of the period
$ 109,664
$ 48,788
Reconciliation of cash, cash equivalents, and restricted cash, end of the
period
Cash and cash equivalents
25,962
27,898
Restricted cash
63,074
4,583
Cash, cash equivalents, and restricted cash, end of the period
$ 89,036
$ 32,481
Supplemental disclosure of cash flow information:
Cash paid for:
Taxes
$ 774
$ 2,914
Interest
$ 6,262
$ 12,192
Noncash investing and financing activities:
Common stock issued for transaction bonus
$ 9
$ —
Shares issued in connection with MiX Combination
$ 362,005
$ —
Annex A: Non-GAAP Financial Measures
In order to assist readers of our consolidated financial statements in understanding the operating results that management uses to evaluate the business and for financial planning purposes, we present non-GAAP measures of organic revenue growth, adjusted EBITDA, adjusted EBITDA margin, adjusted net income per share, adjusted EBITDA gross profit margin, adjusted EBITDA products gross profit margin, adjusted EBITDA services gross profit margin, non-GAAP selling, general and administrative expense ratios, adjusted operating expenses, net debt and adjusted net debt, and adjusted net debt to adjusted EBITDA ratio as supplemental measures of our operating performance. We believe they provide useful information to our investors as they eliminate the impact of certain items that we do not consider indicative of our cash operations and ongoing operating performance. In addition, we use them as an integral part of our internal reporting to measure the performance and operating strength of our business.
We believe organic revenue growth, adjusted EBITDA, adjusted EBITDA margin, adjusted net income per share, adjusted EBITDA gross profit margin, adjusted EBITDA products gross profit margin, adjusted EBITDA services gross profit margin, non-GAAP selling, general and administrative expense ratios, adjusted operating expenses, net debt and adjusted net debt, and adjusted net debt to adjusted EBITDA ratio, are relevant and provide useful information frequently used by securities analysts, investors and other interested parties in their evaluation of the operating performance of companies similar to ours and are indicators of the operational strength of our business.
Organic revenue growth represents the year-over-year percentage change in revenue, excluding the impact of acquisitions. We believe organic revenue growth provides insight into the underlying performance of the Company's existing operations by removing the effects of changes in the scope of consolidation. Adjusted EBITDA is equal to net loss attributable to common stockholders, excluding non-controlling interest, preferred stock dividend, interest expense (net), other expense (net), income tax expense, depreciation and amortization, stock-based compensation, foreign currency losses, restructuring-related expenses, derivative mark-to-market adjustment, acquisition-related expenses and integration-related expenses. Following a detailed review of relevant SEC guidance on disclosure of non-GAAP financial measures, we refined our definition of adjusted EBITDA by removing recognition of pre-October 1, 2024 contract assets (Fleet Complete). Comparative information has been adjusted to conform with the updated presentation. We believe adjusted EBITDA eliminates the uneven effect of considerable amounts of non-cash depreciation and amortization, stock-based compensation and other items that might otherwise make comparisons of our ongoing business with prior periods more difficult and obscure trends in ongoing operations. We define adjusted EBITDA margin as adjusted EBITDA as a percentage of revenue. Adjusted net income is equal to net loss excluding incremental intangible assets amortization expense as a result of business combinations, stock-based compensation (non-recurring/accelerated cost), foreign currency losses, restructuring-related expenses, derivative mark-to-market adjustment, acquisition-related expenses, integration-related expenses and inventory rationalization and other, net of tax. We define adjusted net income per share as adjusted net income divided by the weighted average number of shares outstanding during the period. We believe adjusted net income provides additional means of evaluating period-over-period operating performance by eliminating certain non-cash expenses and other items that might otherwise make comparisons of our ongoing business with prior periods more difficult and obscure trends in ongoing operations. We define adjusted EBITDA gross profit as gross profit excluding inventory rationalization and other and depreciation and amortization, and adjusted EBITDA gross profit margin as adjusted EBITDA gross profit as a percentage of revenues. Our adjusted EBITDA gross profit is a measure used by management in evaluating the business's current operating performance by excluding the impact of prior historical costs of assets that are expensed systematically and allocated over the estimated useful lives of the assets, which may not be indicative of the current operating activity. We define non-GAAP selling, general and administrative expense ratios as selling, general and administrative expenses adjusted for restructuring-related expenses, acquisition-related expenses, integration-related expenses, depreciation and amortization, and stock-based compensation, and expressed as a percentage of total revenues. We define adjusted operating expenses as total operating expenses adjusted for acquisition-related expenses, integration-related costs, stock-based compensation (non-recurring/accelerated cost) and restructuring-related expenses. We present non-GAAP selling, general and administrative expense ratios and adjusted operating expenses to provide a clearer view of our operating cost structure by excluding items that are not directly tied to ongoing business operations. We define adjusted net debt as total debt less cash and cash equivalents, resulting in net debt less unsettled transaction costs. Adjusted net debt to adjusted EBITDA ratio is calculated as adjusted net debt divided by adjusted EBITDA for the trailing 12-month period. We present adjusted net debt and adjusted net debt to adjusted EBITDA ratio to help investors and others better understand our true leverage position and financial flexibility. Unsettled transaction costs – often related to acquisitions, integrations, or financing activities – can temporarily inflate net debt figures and obscure comparability across periods.
Adjusted EBITDA, adjusted EBITDA margin, adjusted net income per share, adjusted EBITDA gross profit margin, adjusted EBITDA products gross profit margin, adjusted EBITDA services gross profit margin, non-GAAP selling, general and administrative expense ratios, adjusted operating expenses, net debt and adjusted net debt, and adjusted net debt to adjusted EBITDA ratio are not intended to be performance measures that should be regarded as an alternative to, or more meaningful than, financial measures presented in accordance with U.S. GAAP. The way we measure adjusted EBITDA, adjusted EBITDA margin, adjusted net income per share, adjusted EBITDA gross profit margin, adjusted EBITDA products gross profit margin, adjusted EBITDA services gross profit margin, non-GAAP selling, general and administrative expense ratios, adjusted operating expenses, net debt and adjusted net debt, and adjusted net debt to adjusted EBITDA ratio, may not be comparable to similarly titled measures presented by other companies.
A reconciliation of net loss attributable to common stockholders (the most directly comparable financial measure presented in accordance with GAAP) to adjusted EBITDA for the periods shown is presented below (in thousands and unaudited):
Three Months Ended September 30,
Six Months Ended September 30,
2024
2025 (1)
2024
2025 (1)
Net loss attributable to common
stockholders
$ (1,888)
$ (4,288)
$ (24,225)
$ (14,522)
Non-controlling interest
5
—
18
—
Preferred stock dividend
—
—
25
—
Interest expense, net
3,345
6,715
6,261
13,305
Other income, net
—
(52)
—
(29)
Income tax expense
256
1,271
1,309
1,633
Depreciation and amortization
9,064
15,793
19,399
31,824
Stock-based compensation
1,371
2,594
7,300
4,447
Foreign currency losses
636
1,562
745
2,723
Restructuring-related expenses
1,069
1,137
2,267
3,579
Derivative mark-to-market adjustment
(2,197)
(890)
(2,197)
(786)
Acquisition-related expenses
1,406
57
15,571
1,187
Integration-related expenses
1,410
878
1,739
1,553
Adjusted EBITDA
$ 14,477
$ 24,777
$ 28,212
$ 44,914
Adjusted EBITDA margin
18.8 %
22.2 %
18.5 %
20.8 %
Other cash items:
Recognition of pre-October 1, 2024
contract assets (Fleet Complete)
$ —
$ 1,346
$ —
$ 2,849
(1) Following the closing of our acquisition of Fleet Complete, we included an EBITDA adjustment related to the recognition of pre-October 1, 2024, contract assets. This adjustment represented recoveries, through customer billings, of the contract asset recognized at acquisition for hardware delivered by Fleet Complete prior to October 1, 2024. This adjustment was intended to give investors a clearer view of underlying operating performance and cash generation. The goal was to better align adjusted EBITDA with operating cash flows.
Following a detailed review of relevant SEC guidance on disclosure of non-GAAP financial measures, we have stopped including this adjustment in our presentation of adjusted EBITDA.
For the three and six months ended September 30, 2025, in addition to adjusted EBITDA of $24.8 million and $44.9 million, respectively, we invoiced recoveries of $1.3 million and $2.8 million, respectively. These amounts are included in cash flow from operating activities in the condensed consolidated statement of cash flows.
The table below (in thousands and unaudited) presents the impact, on adjusted EBITDA, of not including the adjustment for "Recognition of pre-October 1, 2024, contract assets (Fleet Complete)":
Three Months
Ended
December 31,
2024
Three Months
Ended
March 31,
2025
Year
Ended
March 31,
2025
Three Months
Ended
June 30,
2025
Adjusted EBITDA - As previously
reported
$ 22,495
$ 20,424
$ 71,131
$ 21,640
Recognition of pre-October 1, 2024
contract assets (Fleet Complete)
(2,041)
(1,768)
(3,809)
(1,503)
Adjusted EBITDA
$ 20,454
$ 18,656
$ 67,322
$ 20,137
The following table (in thousands, except per share data, and unaudited) reconciles net loss to adjusted net income for the periods shown:
Three Months Ended September 30,
Six Months Ended September 30,
2024
2025
2024
2025
Net loss
$ (1,888)
$ (4,288)
$ (24,200)
$ (14,522)
Incremental intangible assets amortization
expense as a result of business
combinations
1,163
5,807
4,158
11,637
Stock-based compensation (non-
recurring/accelerated cost)
—
—
4,693
—
Foreign currency losses
636
1,562
745
2,723
Restructuring-related expenses
1,069
1,137
2,267
3,579
Derivative mark-to-market adjustment
(2,197)
(890)
(2,197)
(786)
Acquisition-related expenses
1,406
57
15,571
1,187
Integration-related expenses
1,410
878
1,739
1,553
Inventory rationalization and other
—
—
—
415
Income tax effect of adjustments
(1,130)
(2,203)
(1,980)
(2,765)
Adjusted net income
$ 469
$ 2,060
$ 796
$ 3,021
Weighted average shares outstanding
107,532
133,676
107,335
133,510
Net loss per share - basic
$ (0.02)
$ (0.03)
$ (0.23)
$ (0.11)
Adjusted net income per share - basic
$ —
$ 0.02
$ 0.01
$ 0.02
The following table (in thousands and unaudited) reconciles gross profit margins to adjusted EBITDA gross profit margins for the periods shown:
Three Months Ended September 30,
Six Months Ended September 30,
2024
2025
2024
2025
Products:
Product revenues
$ 20,293
$ 22,370
$ 39,031
$ 40,027
Cost of products
13,929
15,318
26,680
28,546
Products gross profit
$ 6,364
$ 7,052
$ 12,351
$ 11,481
Inventory rationalization and other
$ 734
$ —
$ 734
$ —
Adjusted EBITDA products gross profit
$ 7,098
$ 7,052
$ 13,085
$ 11,481
Products gross profit margin
31.4 %
31.5 %
31.6 %
28.7 %
Adjusted EBITDA products gross
profit margin
35.0 %
31.5 %
33.5 %
28.7 %
Services:
Services revenues
56,725
89,309
$ 113,417
$ 175,773
Cost of services
21,746
33,772
44,777
68,184
Services gross profit
$ 34,979
$ 55,537
$ 68,640
$ 107,589
Depreciation and amortization
$ 7,484
$ 13,562
$ 16,212
$ 26,803
Adjusted EBITDA services gross profit
$ 42,463
$ 69,099
$ 84,852
$ 134,392
Services gross profit margin
61.7 %
62.2 %
60.5 %
61.2 %
Adjusted EBITDA services gross profit
margin
74.9 %
77.4 %
74.8 %
76.5 %
Total:
Total revenues
$ 77,018
$ 111,679
$ 152,448
$ 215,800
Total cost of revenues
35,675
49,090
71,457
96,730
Total gross profit
$ 41,343
$ 62,589
$ 80,991
$ 119,070
Inventory rationalization and other
$ 734
$ —
$ 734
$ —
Depreciation and amortization
$ 7,484
$ 13,562
$ 16,212
$ 26,803
Adjusted EBITDA gross profit
$ 49,561
$ 76,151
$ 97,937
$ 145,873
Gross profit margin
53.7 %
56.0 %
53.1 %
55.2 %
Adjusted EBITDA gross profit margin
64.3 %
68.2 %
64.2 %
67.6 %
The following table (in thousands and unaudited) reconciles selling, general and administrative ("SG&A") expenses to non-GAAP SG&A expenses for the periods shown:
Three Months Ended September 30,
Six Months Ended September 30,
2024
2025
2024
2025
Total revenues
$ 77,018
$ 111,679
$ 152,448
$ 215,800
Selling, general and administrative
expenses
Selling, general and administrative
expenses
37,335
54,151
92,117
107,814
Restructuring-related expenses
(335)
(1,137)
(1,533)
(3,579)
Acquisition-related expenses
(1,406)
(57)
(15,571)
(1,187)
Integration-related costs
(1,410)
(878)
(1,739)
(1,553)
Depreciation and amortization
(1,609)
(2,231)
(3,215)
(5,021)
Stock-based compensation
(1,371)
(2,594)
(7,300)
(4,447)
Non-GAAP selling, general and
administrative expenses
31,204
47,254
62,759
92,027
Non-GAAP sales and marketing expenses
9,550
19,721
18,602
37,679
Non-GAAP general and administrative
expenses
21,654
27,533
44,157
54,348
Non-GAAP selling, general and
administrative expenses
$ 31,204
$ 47,254
$ 62,759
$ 92,027
Non-GAAP sales and marketing expenses
as a percentage of total revenue
12.4 %
17.7 %
12.2 %
17.5 %
Non-GAAP general and administrative
expenses as a percentage of total revenue
28.1 %
24.7 %
29.0 %
25.2 %
Research and development expenses
Research and development incurred
$ 6,059
$ 8,934
$ 11,273
$ 17,493
Research and development capitalized
(2,624)
(4,740)
(4,737)
(8,442)
Research and development expenses
$ 3,435
$ 4,194
$ 6,536
$ 9,051
Research and development incurred as a
percentage of total revenues
7.9 %
8.0 %
7.4 %
8.1 %
Research and development expenses as a
percentage of total revenues
4.5 %
3.8 %
4.3 %
4.2 %
The following table (in thousands and unaudited) reconciles total operating expenses to adjusted operating expenses for the periods shown:
Three Months Ended September 30,
Six Months Ended September 30,
2024
2025
2024
2025
Total operating expenses
$ 40,770
$ 58,345
$ 98,653
$ 116,865
Adjusted for:
Acquisition-related expenses
1,406
57
15,571
1,187
Integration-related costs
1,410
878
1,739
1,553
Stock-based compensation (non-
recurring/accelerated cost)
—
—
4,693
—
Restructuring-related expenses
335
1,137
2,267
3,579
3,151
2,072
24,270
6,319
Adjusted operating expenses
$ 37,619
$ 56,273
$ 74,383
$ 110,546
The following table (in thousands and unaudited) reconciles total debt to adjusted net debt for the periods shown:
March 31,
2025
September 30,
2025
Total debt
$ 273,792
$ 275,112
Less: Cash and cash equivalents
(48,788)
(32,481)
Net debt
225,004
242,631
Unsettled transaction costs
3,551
—
Adjusted net debt
$ 228,555
$ 242,631
12-month trailing adjusted EBITDA
$ 67,322
$ 84,024
Adjusted net debt to adjusted EBITDA ratio
3.4
2.9
SOURCE Powerfleet