Powerfleet (AIOT) quarter:Q4 year:2026 Financial Results Summary
· Stocks · QuoteReporter
Powerfleet (AIOT) Q4 2026: Revenue Growth and Profitability Improvement — Positive Momentum
Powerfleet, Inc. (Nasdaq: AIOT) reported its financial results for the fourth quarter of fiscal 2026, showcasing a significant turnaround compared to the prior year. The company achieved revenue of $114.5 million, representing an 11% increase year-over-year from $103.6 million in Q4 2025. This growth was primarily driven by a 14% rise in services revenue, which totaled $92.9 million.
This quarter marks a notable improvement for shareholders, as Powerfleet not only increased its revenue but also turned around its operational performance. The company reported an income from operations of $11.0 million, a substantial recovery from a loss of $7.0 million in the same quarter last year. Furthermore, the net loss improved by 78%, decreasing to $2.7 million from $12.4 million in Q4 2025, translating to a loss per share of $(0.02), compared to $(0.09) previously.
Key Financial Metrics:
- Revenue: $114.5 million, up 11% YoY
- Services Revenue: $92.9 million, up 14% YoY
- Gross Margin: Increased to 56.5% from 52.8%
- Income from Operations: $11.0 million, compared to a loss of $7.0 million
- Net Loss: $2.7 million, improved from $12.4 million
- Adjusted EBITDA: $26.4 million, up 42% YoY, with a margin of 23%
The company also highlighted a significant achievement with the signing of a landmark five-year agreement with the South African National Treasury, expected to deliver a total contract value of between $100 million and $120 million. This contract is anticipated to ramp up revenue over the next 18 months, providing a strong growth catalyst for the upcoming quarters.
Full-Year Performance:
For the fiscal year 2026, Powerfleet reported total revenue of $443.8 million, a 22% increase from $362.5 million in fiscal 2025. Services revenue for the year rose 30% to $359.8 million. The company also improved its gross margin by 180 basis points to 55.5%. Despite a net loss of $20.6 million, this was a 60% improvement from the previous year's loss of $51.0 million.
Operational Highlights:
- Adjusted EBITDA for the full year reached $97.0 million, up 44% YoY, with a margin of 22%.
- Free cash flow improved significantly, with a generation of $4.1 million in the second half of fiscal 2026, compared to a cash use of $13.7 million in the first half.
- The company ended the fiscal year with total outstanding debt of $280.0 million and cash, cash equivalents, and restricted cash of $40.8 million.
Shareholder Returns and Guidance:
Powerfleet did not announce any changes to its dividend or share buyback programs in this report. However, the guidance for fiscal year 2027 indicates continued growth, with revenue expected to range from $485 million to $490 million, representing approximately 10% growth year-over-year at the midpoint. Adjusted EBITDA is projected to grow by approximately 27%, reaching between $122 million and $125 million.
Looking Ahead:
Investors should closely monitor the execution of the South African National Treasury contract, as well as the company's ability to maintain its momentum in revenue growth and profitability. The anticipated ramp-up in services revenue and the ongoing focus on cost optimization and operational efficiency will be critical as Powerfleet enters fiscal 2027. The company’s commitment to generating more than $30 million in free cash flow in the upcoming year will also be a key indicator of its financial health and operational success.
Note: All amounts in the following tables are in thousands.
| Three Months Ended | Year Ended | |||
|---|---|---|---|---|
| March 31, 2025 | March 31, 2026 | March 31, 2025 | March 31, 2026 | |
| Revenue | ||||
| Product revenue | $21,866 | $21,546 | $85,584 | $83,975 |
| Services revenue | $81,772 | $92,944 | $276,931 | $359,802 |
| Total revenue | $103,638 | $114,490 | $362,515 | $443,777 |
| Cost of revenue | ||||
| Cost of product revenue | $18,152 | $15,295 | $61,961 | $59,153 |
| Cost of services revenue | $30,723 | $34,531 | $106,017 | $138,202 |
| Total cost of revenue | $48,875 | $49,826 | $167,978 | $197,355 |
| Gross profit | $54,763 | $64,664 | $194,537 | $246,422 |
| Operating expenses | ||||
| Selling, general and administrative | $56,839 | $48,903 | $204,361 | $208,487 |
| Research and development | $4,904 | $4,736 | $16,061 | $18,359 |
| Total operating expenses | $61,743 | $53,639 | $220,422 | $226,846 |
| (Loss) income from operations | $(6,980) | $11,025 | $(25,885) | $19,576 |
| Interest income | $95 | $211 | $926 | $780 |
| Interest expense | $(5,655) | $(6,919) | $(20,330) | $(27,526) |
| Other expense | $(202) | $(2,311) | $(1,163) | $(4,086) |
| Net (loss) income before income taxes | $(12,742) | $2,006 | $(46,452) | $(11,256) |
| Income tax benefit (expense) | $304 | $(4,064) | $(4,517) | $(8,688) |
| Net loss | $(12,438) | $(2,058) | $(50,969) | $(19,944) |
| Non-controlling interest | $(1) | $(608) | $(18) | $(608) |
| Net loss | $(12,439) | $(2,666) | $(51,012) | $(20,552) |
| Preferred stock dividend | — | — | $(25) | — |
| Net loss attributable to common stock | $(12,439) | $(2,666) | $(51,012) | $(20,552) |
| Net loss per share attributable to common stock | $(0.09) | $(0.02) | $(0.43) | $(0.15) |
| Weighted-average shares outst. basic and diluted | 132,793 | 134,153 | 119,877 | 133,761 |
Note: All amounts in the following table are in thousands.
| March 31, 2025 | March 31, 2026 | |
|---|---|---|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $44,392 | $36,496 |
| Restricted cash | $4,396 | $4,322 |
| Accounts receivables, net | $78,623 | $93,820 |
| Inventory, net | $18,350 | $22,448 |
| Prepaid expenses and other current assets | $23,319 | $22,094 |
| Total current assets | $169,080 | $179,180 |
| Fixed assets, net | $58,011 | $62,398 |
| Goodwill | $383,146 | $411,995 |
| Intangible assets, net | $258,582 | $255,518 |
| Right-of-use asset | $12,339 | $15,893 |
| Severance payable fund | $3,796 | $4,445 |
| Deferred tax asset | $3,934 | $4,537 |
| Other assets | $21,183 | $21,599 |
| Total assets | $910,071 | $955,565 |
| LIABILITIES | ||
| Current liabilities: | ||
| Short-term bank debt and current maturities of long-term debt | $41,632 | $50,355 |
| Accounts payable | $41,599 | $46,353 |