PowerFleet Inc (AIOT) Q2 2026 Earnings Report

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.