Executive Summary
PowerFleet Inc. delivered a material step change in scale and mix following the Fleet Complete acquisition, with quarterly revenue of $106.4 million in Q3 2025, up 45% year over year. Management attributed the rise to Fleet Complete and continued organic growth in in-warehouse safety solutions and Unity-based offerings, supported by a robust services mix that accounted for 77% of revenue. Adjusted EBITDA rose to $22.5 million, a 77% year-over-year increase, driven by cost synergies and improved go-to-market efficiency, while leveraging the higher-margin Unity software ecosystem. The firm also highlighted meaningful cost-synergy progress (annualized savings of $15 million) and a plan to exceed $60 million in annualized savings by year-end, with a further $21 million of synergies targeted over the next 18 months. Management raised FY2025 guidance, increasing organic revenue growth to 7% and guiding annual revenue above $362.5 million and EBITDA above $75 million, supported by a shift to U.S. GAAP in Fleet Complete and a broadened channel strategy with major telcos. Despite strong top-line momentum, PowerFleet posted a net loss in the quarter, reflecting one-time costs, acquisition-related amortization, and higher interest expenses. The company views Unity as a multi-year revenue generator with substantial cross-sell opportunities across enterprise and mid-market segments, and remains focused on scaling go-to-market and product innovation for FY2026 and beyond.
Key Performance Indicators
QoQ: -316.93% | YoY:93.18%
QoQ: -660.01% | YoY:35.76%
QoQ: -450.00% | YoY:47.62%
Key Insights
Revenue: $106.429 million for Q3 2025, +45% YoY; Gross profit: $58.783 million; Gross margin: 55.23%; Operating income: -$1.243 million; EBITDA (GAAP): -$1.243 million; Adjusted EBITDA: $22.5 million, +77% YoY; Service revenue: $81.7 million; Service gross margin (adjusted): 69.3%; Product revenue: $24.7 million; Product gross margin: 30.6%; Net income: -$14.349 million; EPS: -$0.11; Weighted average shares: 132.189 million; Cash flow from operations (net): -$9.063 million; Free cash flow: -$18....
Financial Highlights
Revenue: $106.429 million for Q3 2025, +45% YoY; Gross profit: $58.783 million; Gross margin: 55.23%; Operating income: -$1.243 million; EBITDA (GAAP): -$1.243 million; Adjusted EBITDA: $22.5 million, +77% YoY; Service revenue: $81.7 million; Service gross margin (adjusted): 69.3%; Product revenue: $24.7 million; Product gross margin: 30.6%; Net income: -$14.349 million; EPS: -$0.11; Weighted average shares: 132.189 million; Cash flow from operations (net): -$9.063 million; Free cash flow: -$18.184 million; Net debt (per management): ~$229.7 million (press release); balance sheet highlights: total assets $908.669 million, total liabilities $450.128 million, total stockholders’ equity $458.541 million; Cash and cash equivalents (balance sheet): $33.634 million; total debt: $47.627 million; Capex: -$9.121 million; DSO/DSO-like metrics not disclosed in the press release.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
106.43M |
41.10% |
38.19% |
| Gross Profit |
58.78M |
48.26% |
42.18% |
| Operating Income |
-1.24M |
93.18% |
-316.93% |
| Net Income |
-14.35M |
35.76% |
-660.01% |
| EPS |
-0.11 |
47.62% |
-450.00% |
Management Commentary
- Strategy and M&A: Fleet Complete integration expanded PowerFleet’s addressable market and channels, with AT&T and Telus as scale partners, creating a broader go-to-market footprint. Management noted that the Unity platform enables a single pane of glass across in-warehouse and road operations, enhancing cross-sell opportunities across Enterprise and Mid-Market segments. - Synergies and cost discipline: Company reiterated a $15 million annualized cost-synergy run-rate achieved by exiting non-core segments and optimizing the combined platform, with a path to exceeding $60 million by year-end and an additional $21 million in synergies over the next 18 months. - Go-to-market and product momentum: The quarter featured a major North American in-warehouse deal with a large beverage company, plus other world-scale wins; Unity and AI cameras are highlighted as key growth engines, supported by a 400-engineer R&D team under the new Chief Innovation Officer. - Financial framework and guidance: Management emphasized pro forma adjustments related to Fleet Complete and the Canadian-to-U.S. GAAP transition, with revenue benefited by higher channel revenue, offset by service-revenue reallocation in the short term; FY2025 guidance was raised to reflect year-to-date strength, with a plan to drive growth through telco channel expansion into FY2026. - Execution risk and horizon: Executing cross-sell strategies, consolidating back-office systems, and aligning resources across functions are expected to enable a higher net dollar retention and sustained margin expansion as the mix shifts toward software and services.
“cost synergy program continues at pace with an exceptional $15 million in annualized savings”
— Steve Towe
“gross margins exceeding 60%, service gross margins tracking towards 70%, and EBITDA margins exceeding 20%”
— Steve Towe
Forward Guidance
PowerFleet raised FY2025 guidance on organic revenue growth to 7% (from 5%), with expected annual revenue exceeding $362.5 million and EBITDA above $75 million, incorporating $5 million of annualized run-rate synergies. Management also highlighted a plan to realize an incremental $21 million in cost synergies over the next 18 months and expects telco-driven channels to contribute meaningfully starting in Q2 FY2026, aided by Unity’s device-agnostic architecture and fleet-scale capabilities. Our assessment: the raised guidance reflects strong execution on the Fleet Complete integration, a robust pipeline in Unity safety and AIoT offerings, and expanding telco partnerships. Risks include execution risks in harmonizing disparate units, potential fluctuations in demand in logistics segments, FX headwinds, and the degree to which telco channel partners accelerate top-line contribution in early FY2026. Key catalysts to monitor include telco ramp timing, the pace of Unity-driven cross-sell to MiX and PowerFleet customers, and the realization of remaining cost synergies against ongoing integration costs.