PowerFleet Inc (AIOT) Q1 2026 Earnings Report

Overview of QQ1 2026 performance and YoY/QoQ trends:
- Revenue: $104.121 million; YoY growth +38% (management highlighted strong top-line momentum driven by SaaS adoption and platform consolidation). QoQ: +0.47% (approx. $0.48 million sequential growth).
- Services revenue: $86.5 million; YoY +53%; QoQ +6%; services as a % of revenue: 83% (up from 79% prior quarter, 75% year-ago). The elevated services mix supports margin resiliency and recurring revenue visibility.
- Gross profit / gross margin: Gross profit $56.481 million; gross margin 54.25% (GAAP). Services gross margin was stated at 76%, contributing to overall margin dynamics.
- Adjusted EBITDA: $21.6 million; adjusted EBITDA margin roughly 67% (300 bps expansion YoY in adjusted EBITDA gross margin). The company cited $11 million in annualized savings in Q1 toward an $18 million FY26 target, contributing to EBITDA upside.
- Operating income: GAAP operating income of -$2.039 million; operating income margin -1.96%.
- Net income / EPS: Net income -$10.234 million; net income margin -9.83%; EPS -$0.0768 (diluted).
- Balance sheet / liquidity: Cash at end of period $35.643 million; cash at beginning of period $48.788 million; net cash provided by operating activities $4.721 million; net cash used in investing activities $(11.822) million; net cash used in financing activities $(6.769) million; effect of forex changes $0.725 million; net change in cash $(13.145) million; total assets $930.782 million; total liabilities $469.902 million; total stockholders’ equity $460.880 million.
- Leverage and capital structure: Net debt $23.6 million; total debt $50.385 million; net debt-to-EBITDA 2.97x; management guided to under 2.25x by year-end with an expected additional $30 million net debt improvement in the back half via topline growth, reduced CapEx intensity, and improved working capital.
- Cash flow guidance and margins: Product margins expected to remain in the mid-20% range; SG&A ~18% of revenue; R&D as a percentage of revenue around 8% (5% net of capitalized software); G&A down to 26% of revenue YoY; expectations of continued margin expansion as SaaS mix increases.