TLDR
- Q4 revenue grew 42% year-over-year to $103.6 million, exceeding expectations.
- Adjusted EBITDA rose 84% to $20.4 million in Q4.
- EPS of $0.02 missed estimates by $0.02.
- Full-year revenue nearly tripled to $362.5 million in FY25.
- FY26 revenue target set at approximately $430 million.
PowerFleet, Inc. (NASDAQ: AIOT) closed at $4.76, down 4.38% as of 2:18 PM EDT on June 17, 2025, following the release of its fourth-quarter and full-year 2025 financial results.
The company reported a 42% jump in quarterly revenue to $103.6 million, driven by strong service demand and successful integration of acquisitions MiX and Fleet Complete.
However, non-GAAP earnings per share of $0.02 missed Wall Street estimates by $0.02, contributing to cautious investor sentiment. Net loss for Q4 stood at $12.4 million or $0.09 per share, largely impacted by $10.1 million in restructuring and transaction-related expenses.
Adjusted EBITDA and Margin Expansion
PowerFleet posted a robust 84% increase in adjusted EBITDA, reaching $20.4 million in Q4. Gross margin improved significantly to over 60%, up from 53% the previous year. Service revenue soared 49% to $82 million, while product revenue climbed 23% to $22 million. Recurring revenue accounted for a stable 79% of total revenue during the quarter.
$PWFL PowerFleet, Inc.
AIoT SaaS solutions for mobile asset tracking & managementAfter‐hours Q4: delivered high-40% revenue growth and ~80% EBITDA surge, driven by robust SaaS adoption and strategic M&A
🔍 Notes:
• SaaS recurring revenue now makes up roughly four-fifths of… pic.twitter.com/a5GayISdzB— SlowBull (@SlowBullHQ) June 17, 2025
The company’s subscriber base expanded dramatically from 700,000 to 2.8 million, reflecting strong market adoption and retention. Integration synergies of $16 million helped boost profitability.
Record Full-Year Performance
For the full fiscal year 2025, PowerFleet delivered record revenue of $362.5 million, nearly tripling its FY24 performance. Adjusted EBITDA also showed a tenfold increase, rising to $71 million from $7 million in the prior year. These gains were largely attributed to the strategic acquisitions of MiX and Fleet Complete and aggressive customer base expansion.
Despite these positive developments, net debt rose slightly to $228.6 million, exceeding guidance by $6.4 million. This reflects the financial outlay required for acquisitions and restructuring efforts.
Future Outlook and Challenges
Looking ahead, PowerFleet set an ambitious FY26 revenue target of approximately $430 million and an EBITDA target of $105 million. However, management warned of a potential slowdown in the first half of FY26 due to macroeconomic headwinds, extended sales cycles, and capital expenditure constraints affecting customer spending.
Analysts remain optimistic with a projected 95.83% upside potential based on the stock’s current price, but GuruFocus indicates caution with a possible downside risk of 55.51%.
Conclusion
Despite these achievements, PowerFleet faces challenges linked to its legacy MiX and Fleet Complete operations, including customer churn and underinvestment in customer success. The company also expects temporary revenue growth slowdowns in early FY26 due to broader economic uncertainty and delayed client investments, though its long-term outlook remains positive.
