PowerFleet Inc (AIOT) Q2 2025 Earnings Report

PowerFleet reported solid momentum in Q2 2025 driven by the MiX and Fleet Complete combinations, with the first-half run-rate synergies demonstrating meaningful leverage on the cost base and establishing a platform for accelerated growth. Revenue rose to $77.0 million for the quarter, up 7% year over year, while adjusted EBITDA expanded 41% to $14.5 million, underscoring operating leverage from synergies and revenue mix. Management highlighted a robust cross-sell opportunity as Unity and MiX customers gain access to PowerFleet’s expanded portfolio, including Fleet Complete’s FC Hub and in-vehicle AI camera solutions, supported by an enhanced go-to-market approach and a focus on higher-margin services. On the margin side, total gross margin was 53.7% (GAAP) for the quarter, with adjustments (a $0.7 million inventory write-off and $1.2 million acquisition-related amortization) depressing year-over-year margins to 53.7%; excluding these items, gross margin would have been 56.1%, broadly flat versus the prior year. Product gross margin rose sequentially to 35% (before adjustments) and was accompanied by service gross margin of 61.7% (adjusted to 63.7%), reflecting a mix shift toward higher-margin offerings. Management reaffirmed FY2025 guidance despite the ongoing integration, signaling confidence in the planned synergies and growth vectors. Key strategic priorities remain: maximize efficiency to expand EBITDA, underpin accelerated revenue growth via Unity, in-warehouse, and AI camera solutions, and strengthen customer stickiness and wallet share through enhanced retention and account management. The company alsooutlined a clear integration roadmap with Fleet Complete (6 months to achieve FC Hub visibility and related enhancements) and MiX (cross-sell of Unity and MiX with Unity data services). The combination is positioned to support mid-term double-digit growth, with an updated net debt outlook reflecting the financing of Fleet Complete and working-capital dynamics, alongside synergies that are expected to offset the near-term cash burn. ABI Research’s recognition of PowerFleet as the #1 global market leader in AI-powered smart cold chain solutions further validates the strategic relevance of the expanded product suite across global supply chains.