Powerfleet beats Q4 expectations as services revenue, margin expansion, adjusted EBITDA, and cash flow improve.
Stock Earnings Results
June 15, 2026
Table of Contents
June 15, 2026
Powerfleet, Inc. (NASDAQ: AIOT) reported fourth-quarter fiscal 2026 results above expectations, supported by higher services revenue, margin expansion, stronger adjusted EBITDA, and improved cash flow.
Powerfleet is an AIoT software-as-a-service company that provides mobile asset tracking, fleet intelligence, safety, logistics, and connected operations solutions for enterprises.
The company reported adjusted EPS of $0.04, above estimates of $0.00. Revenue came in at $114.49 million, above estimates of $112.89 million, with revenue growth of 10.5%.
Fourth-quarter revenue increased 11% to $114.5 million, driven by 14% growth in services revenue to $92.9 million. Services represented more than 81% of total revenue, helping lift gross margin to 56.5% from 52.8% a year earlier.
Powerfleet generated operating income of $11.0 million, compared with an operating loss of $7.0 million in the prior-year quarter. Net loss improved 78% to $2.7 million, or $0.02 per share.
Adjusted EBITDA increased 42% to $26.4 million, with adjusted EBITDA margin expanding to 23.1% from 18.0%. Adjusted net income more than doubled to $5.6 million, or $0.04 per share.
For fiscal 2026, revenue increased 22% to $443.8 million, while services revenue increased 30% to $359.8 million. Adjusted EBITDA rose 44% to $97.0 million, and adjusted net income increased 118% to $11.3 million.
Powerfleet signed the three largest individual contracts in company history, including a landmark five-year agreement with the South African National Treasury expected to deliver $100 million to $120 million in total contract value.
The company also scaled its Unity platform to nearly 3 million subscribers across 50,000 customers, supported by more than 350 partners, including AT&T, TELUS, MTN, Telstra, and Accenture.
Operating cash flow improved to $30.5 million for fiscal 2026 from a cash outflow of $3.3 million in fiscal 2025. Free cash flow improved by $17.8 million in the second half of fiscal 2026, turning positive at $4.1 million.
Powerfleet ended the year with $63.6 million of available liquidity, including $36.5 million in cash and cash equivalents and $27.1 million of available borrowing capacity. Net debt to trailing 12-month adjusted EBITDA improved to 2.47x from 3.39x a year earlier.
Powerfleet’s quarter showed stronger operating leverage as more of the business shifted toward higher-margin services revenue.
The company beat revenue expectations, turned operating income positive, expanded adjusted EBITDA, and signed major enterprise contracts. Management also expects more than $30 million of free cash flow in fiscal 2027, giving investors another profitability milestone to watch.
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