PowerFleet (PWFL) investor relations material

Executive summary

• Total revenue rose 38% year-over-year to $104.1M, driven by SaaS and services growth, Fleet Complete acquisition, and strong enterprise wins.

• Services revenue reached $86.5M, now 83% of total revenue, with 6% sequential growth and high-margin SaaS expansion.

• Adjusted EBITDA increased 58% year-over-year to $21.6M, with margin expanding to 21% and gross margin to 67%.

• Transformation and synergy initiatives delivered $11M in annualized savings in Q1, advancing toward the $18M FY26 target.

• Net loss narrowed to $10.2M from $22.3M year-over-year, with EPS improving from $(0.21) to $(0.08).

Financial highlights

• Services revenue grew 53% year-over-year and 6% sequentially to $86.5M, now 83% of total revenue.

• Adjusted EBITDA was $21.6M, a 58% increase year-over-year, with margin at 21% and gross margin at 67%.

• Net loss per share improved to $0.08 from $0.21 year-over-year; adjusted net income per share was $0.01.

• Cash and equivalents at quarter end were $31.2M–$35.6M, with net debt at $234.8M–$235M.

• SG&A expenses decreased 2% to $53.7M, offsetting higher go-to-market investments.

Outlook and guidance

• FY26 revenue guidance raised to $430–$440M, with annual adjusted EBITDA growth expected at 45%–55%.

• Net leverage targeted to improve to below 2.25x by March 31, 2026, with net debt expected to improve by $30M in the second half.

• Management expects continued positive cash flow from acquisitions and 10% organic services growth in Q4.

• Product margins anticipated to remain in the mid-20% range; sales and marketing expenses to run at ~18% of revenue.

• Cautious outlook on CapEx-driven product sales due to macroeconomic and tariff uncertainties.