PowerFleet Inc
AIOT
$5.36 2.19%
Exchange: NASDAQ | Sector: Technology | Industry: Communication Equipment
Q2 2026
Published: Nov 10, 2025

Earnings Highlights

  • Revenue of $111.68M up 45% year-over-year
  • EPS of $-0.03 decreased by 60.5% from previous year
  • Gross margin of 56.0%
  • Net income of -4.29M
  • "ARR reached the double-digit growth milestone originally targeted for year-end ahead of schedule." - Steve Towe
AIOT
Company AIOT

Executive Summary

PowerFleet reported a standout QQ2 2026 with total revenue of $111.679 million, up 45% year over year, driven by strong organic growth (9% overall, 12% in services) and a greater contribution from high-margin recurring SaaS revenue (services now 80% of total revenue, up from 74% a year ago). Management characterized the period as a turning point, with integration largely complete after eighteen months of aggressive M&A activity and synergies realized totaling in excess of $30 million on an annualized basis. The company underscored a SaaS-led model, margin expansion across both services and product lines, and a heightened pipeline in North America and global channel partnerships. Management also signaled confidence in sustainable, double-digit growth into fiscal 2027, supported by a broadened Unity platform ecosystem, larger enterprise deployments, and expanded cross-sell opportunities. While net income remained negative in the quarter (-$4.29 million, EPS -$0.032), adjusted EBITDA rose more than 70% to $24.8 million, reflecting ongoing operating leverage, synergy capture, and a shift toward higher-margin recurring revenue. The balance sheet remains solid with $32.5 million of cash at period end and a net debt to EBITDA of 2.9x, with guidance to exit the year near 2.25x and to target $220 million net debt for the full year. The quarter also featured notable management commentary on strategy, including the appointment of a Chief Revenue Officer (Jeff Lautenbach), robust new logo momentum, and rising cross-sell (23% expansion in the AI video pipeline) and partner-driven bookings (AT&T, TELUS). Overall, the QQ2 press materials portray a disciplined, growth-oriented transformation with meaningful near-term profitability improvements and a compelling longer-term growth thesis anchored by Unity and Enterprise-grade deployments.

Key Performance Indicators

Revenue
Increasing
111.68M
QoQ: 7.26% | YoY: 45.00%
Gross Profit
Increasing
62.59M
56.04% margin
QoQ: 10.81% | YoY: 51.39%
Operating Income
Increasing
4.24M
QoQ: 308.14% | YoY: 640.66%
Net Income
Decreasing
-4.29M
QoQ: 58.10% | YoY: -127.12%
EPS
Decreasing
-0.03
QoQ: 58.20% | YoY: -60.50%

Revenue Trend

Margin Analysis

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q2 2026 111.68 -0.03 +45.0% View
Q1 2026 104.12 -0.08 +35.2% View
Q4 2025 103.64 -0.09 +37.4% View
Q3 2025 106.43 -0.11 +41.1% View
Q2 2025 77.02 -0.02 +122.9% View