PowerFleet reported QQ2 2026 revenue of $111.68 million, marking a substantial year-over-year expansion and a solid sequential gain from Q1 2026. Gross profit of $62.59 million delivered a gross margin of 56.0%, supporting an operating income of $4.24 million (3.80% operating margin) and EBITDA of $19.75 million (EBITDA margin ~17.69%). Despite positive operating leverage, the quarter produced a net loss of $4.29 million driven by net interest expense and non-operating items, resulting in a negative net income per share of $0.0321. Free cash flow was modest at $1.18 million, while operating cash flow was $5.52 million, and capital expenditures stood at $4.34 million. The company ended QQ2 2026 with cash and equivalents of $27.90 million and net debt of $28.43 million, against total assets of $936.89 million and stockholders’ equity of $468.98 million, underscoring a healthy but intangible-heavy balance sheet. The results reflect ongoing gross-margin resilience and early signs of operating leverage, though profitability remains pressured by interest costs and one-off or other financial items.
Key takeaways for investors include (i) revenue growth momentum entering H2 2026 with a favorable margin profile; (ii) improving albeit still-sparse bottom-line profitability as the company pursues scale and recurring revenue. The balance sheet remains solid with ample liquidity and a moderate net debt load, but the large intangibles and goodwill balance imply impairment risk should demand soften or acquisition-related synergies disappoint. Overall, the QQ2 2026 print positions PowerFleet as an improvinggrowth trajectory play in the IoT asset-management space, contingent on continued revenue expansion, better operating leverage, and disciplined capital allocation.