PowerFleet (AIOT) Q4 2026 earnings summary

Executive summary

• Achieved all two-year strategic milestones, including restructuring, technology unification, and cost synergies exceeding $34 million annualized.

• Delivered strong revenue and adjusted EBITDA growth in FY26, with significant margin expansion and a return to positive free cash flow in the second half.

• Secured landmark contracts, including the largest in company history with South African Treasury valued at $100–$120 million over five years.

• Transitioned to a cash-generative, scalable business model, exiting FY26 with a strengthened balance sheet and improved operating leverage.

• Positioned for sustainable, profitable growth and enhanced shareholder value heading into FY27.

Financial highlights

• FY26 revenue grew 22% year-over-year to $443.8 million; Q4 revenue up 11% year-over-year to $114.5 million.

• Services revenue reached $360 million (81% of total), up from 76% in FY25; Q4 services revenue up 14% year-over-year to $92.9 million.

• Adjusted EBITDA grew 44% to $97 million for FY26; Q4 adjusted EBITDA up 42% to $26.4 million.

• GAAP operating income turned positive at $19.6 million for the year, up from a loss of $25.9 million in FY25; Q4 operating income improved to $11 million from a $7 million loss.

• Free cash flow improved to -$9.5 million for the year, with a positive $4.1 million in the second half; operating cash flow for FY26 was $30.5 million.

Outlook and guidance

• FY27 revenue expected at $485–$490 million (approx. 10% growth), with services revenue exceeding $400 million.

• Adjusted EBITDA guidance of $122–$125 million (approx. 27% growth), margin expansion to ~25%.

• Net income guidance for FY27 is $4–8 million; positive free cash flow projected at $30–$35 million.

• Sequential revenue and margin growth expected, with major contributions from South Africa contract and Accenture partnership in the second half.

• Focus on recurring services growth, margin expansion, improved operating leverage, and further deleveraging.