PowerFleet Q4 Earnings Call Highlights

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Mon, June 15, 2026 astatine 9:03 AM CDT 7 min read

Key Points

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PowerFleet said fiscal 2026 was a turning point, with gross up 22% to $443.8 cardinal and services making up 81% of income arsenic the institution shifted further toward higher-margin recurring revenue.
Profitability improved sharply: adjusted EBITDA roseate 44% to $97 million, GAAP operating income turned positive, escaped currency travel improved significantly, and nett leverage fell to 2.47x from 3.39x.
For fiscal 2027, PowerFleet guided to $485 million-$490 cardinal successful revenue, $122 million-$125 cardinal successful adjusted EBITDA, and $30 million-$35 cardinal successful affirmative escaped currency flow, portion highlighting maturation drivers specified arsenic the South African National Treasury contract, Accenture partnership, and expanding On-Site and AI Video bookings.

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PowerFleet (NASDAQ:AIOT) said fiscal 2026 marked a large measurement successful its post-combination strategy, with absorption pointing to stronger recurring gross growth, higher profitability, improved currency travel and a reduced leverage illustration during the company's fourth-quarter and full-year net call.

Chief Executive Officer Steve Towe said the institution has delivered connected a two-year program built astir consolidation, exertion differentiation and fiscal discipline. He said PowerFleet restructured its planetary operating model, unified its merchandise roadmap nether Unity, centralized halfway functions and achieved much than $34 cardinal successful annualized outgo synergies.

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"We did it portion simultaneously accelerating integrated gross performance, expanding margins, and winning astatine a level successful the endeavor marketplace that the practice PowerFleet could simply ne'er person achieved," Towe said.

Recurring Services Drive Revenue Growth

For fiscal 2026, PowerFleet generated full gross of $443.8 million, up 22% from the anterior year, according to Chief Financial Officer David Wilson. Services gross grew to $360 cardinal and accounted for 81% of full revenue, up from 76% successful fiscal 2025.

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In the 4th quarter, full gross was $114.5 million, up 11% twelvemonth implicit twelvemonth and 1% sequentially. Services gross was $92.9 million, up 14% from the prior-year period, portion merchandise gross was $21.5 cardinal and was described by Wilson arsenic "broadly stable" twelvemonth implicit year.

Management emphasized that merchandise gross is progressively being utilized arsenic a deployment mechanics for recurring services. Wilson said the displacement toward recurring services is cardinal to the company's profitability outlook due to the fact that the services concern carries higher margins and converts much efficiently into adjusted EBITDA.

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