PowerFleet Q3 Earnings Report Analysis
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 09 2026
0mins
Should l Buy AIOT?
Source: seekingalpha
- Earnings Performance: PowerFleet reported a Q3 non-GAAP EPS of $0.02, missing expectations by $0.02, although revenue reached $113.5 million, a 6.7% year-over-year increase, exceeding expectations by $1.81 million, demonstrating resilience in revenue growth.
- Net Loss Improvement: The net loss margin improved from 13% in the prior year to 3%, reflecting significant progress in cost management and operational efficiency, which enhances investor confidence in future profitability.
- Adjusted EBITDA Growth: Adjusted EBITDA increased by 26% year-over-year to $25.7 million from $20.5 million, with the EBITDA margin rising from 19% to 23%, indicating success in achieving cost synergies and operational leverage.
- 2026 Financial Outlook: The company updated its full-year guidance, expecting revenue in the range of $440 million to $445 million, with adjusted EBITDA growth projected at approximately 45% year-over-year, reflecting investments in the South African public sector opportunity that will drive future revenue growth.
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Analyst Views on AIOT
Wall Street analysts forecast AIOT stock price to rise
6 Analyst Rating
6 Buy
0 Hold
0 Sell
Strong Buy
Current: 3.600
Low
9.00
Averages
11.20
High
15.00
Current: 3.600
Low
9.00
Averages
11.20
High
15.00
About AIOT
Powerfleet, Inc. is a provider of artificial Internet of things (AIoT) software-as-a-service (SaaS) solution, which includes valuable business intelligence for managing high-value enterprise assets. The Company delivers advanced mobility solutions that connect assets to increase visibility operational efficiency and profitability by leveraging its Unity platform product strategy. Its Powerfleet for Warehouse solutions are designed to provide on-premises or in-facility asset and operator management, monitoring, and visibility for warehouse trucks. Its Powerfleet for Logistics solutions are designed to provide bumper-to-bumper asset management, monitoring, and visibility for over-the-road based assets. Its Powerfleet for Vehicles solutions are designed both to enhance the vehicle fleet management process, whether it’s a rental car, a private fleet, or automotive original equipment manufacturer (OEM) partners. Its offerings are sold under the Powerfleet, Pointer, and Cellocator brands.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
PowerFleet Q3 2026 Earnings Call Highlights
- Significant Revenue Growth: PowerFleet reported a 7% year-over-year increase in total revenue for Q3, with service revenue up 11%, indicating improved operational efficiency post-integration and enhanced market competitiveness.
- Major Contract Win: The company secured a landmark public sector contract in South Africa, involving AI video services for over 100,000 assets, which is expected to generate substantial recurring revenue and further solidify its market position.
- Optimistic Outlook: Management reaffirmed targets for Q4 FY '26 of over 10% growth in both total and recurring revenue, with a projected 15% ARR growth target for FY '27, showcasing strong business momentum.
- Adjusted EBITDA Guidance: The CFO reported an updated adjusted EBITDA growth guidance of approximately 45% annually, although net debt-to-EBITDA ratio is projected to rise to 2.4x due to investments supporting the large contract, reflecting the company's confidence in future growth.
See More
PowerFleet Q3 Earnings Report Analysis
- Earnings Performance: PowerFleet reported a Q3 non-GAAP EPS of $0.02, missing expectations by $0.02, although revenue reached $113.5 million, a 6.7% year-over-year increase, exceeding expectations by $1.81 million, demonstrating resilience in revenue growth.
- Net Loss Improvement: The net loss margin improved from 13% in the prior year to 3%, reflecting significant progress in cost management and operational efficiency, which enhances investor confidence in future profitability.
- Adjusted EBITDA Growth: Adjusted EBITDA increased by 26% year-over-year to $25.7 million from $20.5 million, with the EBITDA margin rising from 19% to 23%, indicating success in achieving cost synergies and operational leverage.
- 2026 Financial Outlook: The company updated its full-year guidance, expecting revenue in the range of $440 million to $445 million, with adjusted EBITDA growth projected at approximately 45% year-over-year, reflecting investments in the South African public sector opportunity that will drive future revenue growth.
See More
Powerfleet Reports Record Q3 Revenue of $113.5 Million
- Significant Revenue Growth: Powerfleet's total revenue for Q3 increased by 7% year-over-year to a record $113.5 million, up from $106.4 million last year, reflecting strong performance in high-value services, with service revenue rising 11% to $91.1 million, now representing 80% of total revenue.
- Operating Profit Turnaround: The company reported an operating profit of $6.3 million, a substantial improvement from an operating loss of $1.2 million in the same quarter last year, showcasing successful cost control and operational efficiency, which is expected to further boost investor confidence.
- Net Loss Reduction: Net loss decreased significantly from $14.3 million last year to $3.4 million, indicating substantial progress in profitability, with expectations for continued financial improvement in the future.
- Strong EBITDA Growth: Adjusted EBITDA rose by 26% to $25.7 million, with EBITDA margins expanding from 19% to 23%, demonstrating ongoing enhancements in operational efficiency and profitability, thereby strengthening the company's competitive position in the market.
See More
Powerfleet Secures Major Contract with South African Government
- Large Contract Award: Powerfleet has secured a contract with South African government departments overseeing over 100,000 vehicles, which is anticipated to be one of the largest deployments in the company's history, significantly enhancing its market share in the public sector.
- Substantial Revenue Potential: The agreement is expected to generate significant recurring SaaS and service revenue over a minimum five-year term, with preliminary department enrollments exceeding expectations, indicating strong market demand that will contribute to the company's long-term financial stability.
- Deepened Partnership: This contract expands Powerfleet's existing partnership with MTN, facilitating nationwide secure connectivity and managed network infrastructure, thereby further solidifying their strategic collaboration in the public sector.
- Technology Modernization Drive: Powerfleet's CEO Steve Towe noted that this award reflects the increasing adoption of data-driven fleet technologies by public sector organizations, which is expected to lay the groundwork for future software and analytics adoption by the company.
See More
Powerfleet Reports Record Q3 Revenue of $113.5 Million
- Significant Revenue Growth: Powerfleet's total revenue reached $113.5 million in Q3, marking a 7% year-over-year increase, primarily driven by strong growth in high-value services, which rose 11% and now represent 80% of total revenue, indicating increasing market acceptance of the AIoT platform.
- Positive Operating Profit: The company reported an operating profit of $6.3 million, a turnaround from an operating loss of $1.2 million in the same quarter last year, showcasing significant improvements in cost management and operational efficiency, which is expected to bolster investor confidence.
- Substantial Net Loss Improvement: Net loss narrowed to $3.4 million from $14.3 million year-over-year, with the net loss margin improving from 13% to 3%, reflecting ongoing enhancements in profitability that may attract more investor interest.
- Adjusted EBITDA Growth: Adjusted EBITDA surged 26% to $25.7 million, with EBITDA margin increasing from 19% to 23%, indicating the company's success in achieving revenue growth while enhancing operational leverage and realizing cost synergies.
See More
PowerFleet Q3 Earnings Announcement Scheduled
- Earnings Release Date: PowerFleet (AIOT) is set to announce its Q3 earnings on February 9th before market open, with a consensus EPS estimate of $0.04, reflecting a significant year-over-year growth of 300%, which will be a critical indicator of the company's financial health.
- Revenue Expectations: Analysts forecast PowerFleet's Q3 revenue at $111.69 million, representing a 5% year-over-year increase, indicating the company's stable growth potential despite facing intense competition in the market.
- Performance Prediction Changes: Over the past year, PowerFleet has not missed EPS estimates, achieving a 0% miss rate, while it has successfully met revenue estimates 75% of the time, showcasing its relative strength in revenue management.
- Estimate Revision Trends: In the last three months, there have been no upward revisions to EPS estimates, with three downward adjustments, while revenue estimates saw five upward revisions and one downward, indicating mixed market sentiment regarding the company's future performance.
See More
PowerFleet Q3 2026 Earnings Call Highlights
- Significant Revenue Growth: PowerFleet reported a 7% year-over-year increase in total revenue for Q3, with service revenue up 11%, indicating improved operational efficiency post-integration and enhanced market competitiveness.
- Major Contract Win: The company secured a landmark public sector contract in South Africa, involving AI video services for over 100,000 assets, which is expected to generate substantial recurring revenue and further solidify its market position.
- Optimistic Outlook: Management reaffirmed targets for Q4 FY '26 of over 10% growth in both total and recurring revenue, with a projected 15% ARR growth target for FY '27, showcasing strong business momentum.
- Adjusted EBITDA Guidance: The CFO reported an updated adjusted EBITDA growth guidance of approximately 45% annually, although net debt-to-EBITDA ratio is projected to rise to 2.4x due to investments supporting the large contract, reflecting the company's confidence in future growth.
See More
PowerFleet Q3 Earnings Report Analysis
- Earnings Performance: PowerFleet reported a Q3 non-GAAP EPS of $0.02, missing expectations by $0.02, although revenue reached $113.5 million, a 6.7% year-over-year increase, exceeding expectations by $1.81 million, demonstrating resilience in revenue growth.
- Net Loss Improvement: The net loss margin improved from 13% in the prior year to 3%, reflecting significant progress in cost management and operational efficiency, which enhances investor confidence in future profitability.
- Adjusted EBITDA Growth: Adjusted EBITDA increased by 26% year-over-year to $25.7 million from $20.5 million, with the EBITDA margin rising from 19% to 23%, indicating success in achieving cost synergies and operational leverage.
- 2026 Financial Outlook: The company updated its full-year guidance, expecting revenue in the range of $440 million to $445 million, with adjusted EBITDA growth projected at approximately 45% year-over-year, reflecting investments in the South African public sector opportunity that will drive future revenue growth.
See More
Powerfleet Reports Record Q3 Revenue of $113.5 Million
- Significant Revenue Growth: Powerfleet's total revenue for Q3 increased by 7% year-over-year to a record $113.5 million, up from $106.4 million last year, reflecting strong performance in high-value services, with service revenue rising 11% to $91.1 million, now representing 80% of total revenue.
- Operating Profit Turnaround: The company reported an operating profit of $6.3 million, a substantial improvement from an operating loss of $1.2 million in the same quarter last year, showcasing successful cost control and operational efficiency, which is expected to further boost investor confidence.
- Net Loss Reduction: Net loss decreased significantly from $14.3 million last year to $3.4 million, indicating substantial progress in profitability, with expectations for continued financial improvement in the future.
- Strong EBITDA Growth: Adjusted EBITDA rose by 26% to $25.7 million, with EBITDA margins expanding from 19% to 23%, demonstrating ongoing enhancements in operational efficiency and profitability, thereby strengthening the company's competitive position in the market.
See More
Powerfleet Secures Major Contract with South African Government
- Large Contract Award: Powerfleet has secured a contract with South African government departments overseeing over 100,000 vehicles, which is anticipated to be one of the largest deployments in the company's history, significantly enhancing its market share in the public sector.
- Substantial Revenue Potential: The agreement is expected to generate significant recurring SaaS and service revenue over a minimum five-year term, with preliminary department enrollments exceeding expectations, indicating strong market demand that will contribute to the company's long-term financial stability.
- Deepened Partnership: This contract expands Powerfleet's existing partnership with MTN, facilitating nationwide secure connectivity and managed network infrastructure, thereby further solidifying their strategic collaboration in the public sector.
- Technology Modernization Drive: Powerfleet's CEO Steve Towe noted that this award reflects the increasing adoption of data-driven fleet technologies by public sector organizations, which is expected to lay the groundwork for future software and analytics adoption by the company.
See More
Powerfleet Reports Record Q3 Revenue of $113.5 Million
- Significant Revenue Growth: Powerfleet's total revenue reached $113.5 million in Q3, marking a 7% year-over-year increase, primarily driven by strong growth in high-value services, which rose 11% and now represent 80% of total revenue, indicating increasing market acceptance of the AIoT platform.
- Positive Operating Profit: The company reported an operating profit of $6.3 million, a turnaround from an operating loss of $1.2 million in the same quarter last year, showcasing significant improvements in cost management and operational efficiency, which is expected to bolster investor confidence.
- Substantial Net Loss Improvement: Net loss narrowed to $3.4 million from $14.3 million year-over-year, with the net loss margin improving from 13% to 3%, reflecting ongoing enhancements in profitability that may attract more investor interest.
- Adjusted EBITDA Growth: Adjusted EBITDA surged 26% to $25.7 million, with EBITDA margin increasing from 19% to 23%, indicating the company's success in achieving revenue growth while enhancing operational leverage and realizing cost synergies.
See More
PowerFleet Q3 Earnings Announcement Scheduled
- Earnings Release Date: PowerFleet (AIOT) is set to announce its Q3 earnings on February 9th before market open, with a consensus EPS estimate of $0.04, reflecting a significant year-over-year growth of 300%, which will be a critical indicator of the company's financial health.
- Revenue Expectations: Analysts forecast PowerFleet's Q3 revenue at $111.69 million, representing a 5% year-over-year increase, indicating the company's stable growth potential despite facing intense competition in the market.
- Performance Prediction Changes: Over the past year, PowerFleet has not missed EPS estimates, achieving a 0% miss rate, while it has successfully met revenue estimates 75% of the time, showcasing its relative strength in revenue management.
- Estimate Revision Trends: In the last three months, there have been no upward revisions to EPS estimates, with three downward adjustments, while revenue estimates saw five upward revisions and one downward, indicating mixed market sentiment regarding the company's future performance.
See More
