PowerFleet (PWFL) Q3 2026 earnings summary

Executive summary

• Achieved record quarterly revenue of $113.5 million, up 7% year-over-year, with services revenue rising 11% to $91.1 million and now comprising 80% of total revenue; integration of MiX Telematics and Fleet Complete reflected in results.

• Adjusted EBITDA grew 26% year-over-year to $25.7 million, with margin expanding to 23% from 19% in the prior year.

• Net loss attributable to common stockholders narrowed to $3.4 million ($0.03 per share) from $14.3 million ($0.11 per share) in the prior year quarter, reflecting improved operating leverage and reduced acquisition-related expenses.

• Secured a landmark South African public sector contract for AI video and visibility services, supporting over 100,000 assets and expected to drive significant multi-year SaaS revenue.

• Expanded enterprise relationships with multiple Fortune 500 companies, driving global adoption of AI video and unified platform solutions.

Financial highlights

• Total revenue grew 7% year-over-year to $113.5 million in Q3 FY26; services revenue increased 11% to $91.1 million, now 80% of total revenue.

• Adjusted EBITDA rose 26% year-over-year to $25.7 million, with margin expanding to 23% from 19% in the prior year.

• Gross profit increased 7% year-over-year to $62.7 million, with gross margin steady at 55%.

• Net debt to adjusted EBITDA improved to 2.7x from 3.4x at prior fiscal year-end, with expectations to decline to 2.4x by year-end.

• Adjusted EBITDA gross margin reached 67% in Q3 FY26; product margins held in the low 30% range.

Outlook and guidance

• Confident in achieving a Q4 FY26 exit run rate of 10% total revenue growth and over 10% recurring revenue growth.

• FY27 guidance targets 15% ARR growth, not yet including the impact of the new South African contract.

• Adjusted EBITDA annual growth guidance updated to approximately 45%.

• Full-year revenue guidance narrowed to $440–$445 million, up from prior $435–$445 million.

• Continued investment in operating expenses to support growth and large contract execution.