PowerFleet (NASDAQ:AIOT) Announces Earnings Results

PowerFleet (NASDAQ:AIOT) posted its quarterly earnings results on Monday. The company reported $0.04 earnings per share for the quarter, FiscalAI reports. The firm had revenue of $114.49 million during the quarter, compared to the consensus estimate of $112.98 million. PowerFleet had a negative return on equity of 1.33% and a negative net margin of 4.63%.During the same period last year, the company earned ($0.09) earnings per share.

Here are the key takeaways from PowerFleet’s conference call:

• PowerFleet said FY 2026 revenue rose 22% to $443.8 million and adjusted EBITDA increased 44% to $97 million, while the company also swung to $19.6 million of operating income from an operating loss in FY 2025.
• The company highlighted continued mix improvement, with services revenue reaching $360 million and representing 81% of total revenue, helping drive Q4 revenue growth of 11% and adjusted EBITDA growth of 42% year over year.
• Management emphasized major commercial wins, including the South African Treasury contract with an expected $100 million-$120 million five-year value, plus new enterprise deals and a strategic partnership with Accenture.
• PowerFleet said it generated positive free cash flow in the second half of FY 2026 and reduced net leverage to 2.47x from 3.39x, signaling improved balance sheet flexibility heading into FY 2027.
• For FY 2027, the company guided to $485 million-$490 million in revenue, $122 million-$125 million in adjusted EBITDA, and $30 million-$35 million of positive free cash flow, but noted the year will be back-half weighted because of South Africa deployment timing and early-year investment.

PowerFleet Stock Performance

NASDAQ:AIOT opened at $4.14 on Wednesday. The stock has a market cap of $555.37 million, a P/E ratio of -25.88 and a beta of 1.43. The stock has a 50 day simple moving average of $3.47 and a 200 day simple moving average of $4.11. The company has a current ratio of 1.09, a quick ratio of 0.96 and a debt-to-equity ratio of 0.48. PowerFleet has a 1-year low of $2.78 and a 1-year high of $5.88.

Institutional Trading of PowerFleet

Several hedge funds have recently added to or reduced their stakes in AIOT. Royal Bank of Canada lifted its holdings in PowerFleet by 198.0% during the 1st quarter. Royal Bank of Canada now owns 91,365 shares of the company’s stock worth $501,000 after purchasing an additional 60,705 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in PowerFleet by 275.7% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 203,211 shares of the company’s stock worth $1,116,000 after purchasing an additional 149,116 shares during the last quarter. Dynamic Technology Lab Private Ltd acquired a new stake in PowerFleet during the 1st quarter worth approximately $251,000. Goldman Sachs Group Inc. lifted its holdings in PowerFleet by 15.3% during the 1st quarter. Goldman Sachs Group Inc. now owns 1,045,424 shares of the company’s stock worth $5,739,000 after purchasing an additional 138,856 shares during the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC acquired a new stake in PowerFleet during the 1st quarter worth approximately $3,670,000. 73.40% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting PowerFleet

Here are the key news stories impacting PowerFleet this week:

• Positive Sentiment: PowerFleet reported Q4 revenue of $114.5 million, up 11% year over year, with adjusted EBITDA rising 42% to $26.4 million and operating income turning positive at $11.0 million. Powerfleet Reports Results for Fourth Quarter and Full-Year Fiscal 2026
• Positive Sentiment: Management guided FY2027 revenue to $485 million-$490 million, above consensus, and investors are viewing the forecast as evidence of continued growth and operating leverage. PowerFleet Is Finally Generating Cash, A Major Turning Point
• Positive Sentiment: The company highlighted improving fundamentals, including more than 80% recurring service revenue, gross margin expansion to 56.5%, and FY2027 free cash flow guidance of $30 million-$35 million, which supports the bullish re-rating. PowerFleet Is Finally Generating Cash, A Major Turning Point
• Positive Sentiment: PowerFleet also signed a five-year South African National Treasury agreement that could add $100 million-$120 million in total contract value, giving investors another long-term revenue catalyst. Powerfleet Reports Results for Fourth Quarter and Full-Year Fiscal 2026

Analysts Set New Price Targets

AIOT has been the subject of several research analyst reports. Wall Street Zen upgraded PowerFleet from a “sell” rating to a “hold” rating in a research note on Saturday, May 9th. Raymond James Financial reduced their target price on PowerFleet from $8.00 to $7.00 and set an “outperform” rating for the company in a research note on Tuesday. UBS Group set a $7.00 target price on PowerFleet in a research note on Tuesday. Finally, Weiss Ratings reiterated a “hold (c-)” rating on shares of PowerFleet in a research note on Friday, May 8th. Three equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. Based on data from MarketBeat, PowerFleet has an average rating of “Moderate Buy” and an average price target of $9.67.

About PowerFleet

PowerFleet, Inc (NASDAQ: AIOT) develops and delivers Internet of Things (IoT)–based telematics and asset-tracking solutions designed to help businesses monitor, manage and optimize fleets of vehicles and industrial equipment. Its core offerings include wireless sensors, GPS tracking devices and cloud-hosted software platforms that provide real-time visibility into vehicle whereabouts, usage patterns, fuel consumption and maintenance needs. The company’s systems also support regulatory compliance and safety monitoring, enabling customers to reduce operational costs, minimize theft and improve overall asset utilization.

The company’s hardware portfolio features RFID readers, active and passive tags, onboard diagnostics (OBD) adapters and temperature or motion sensors that can be deployed on trucks, trailers, forklifts, containers and other high-value assets.