PowerFleet (NASDAQ:AIOT) Announces Quarterly Earnings Results, Misses Estimates By $0.02 EPS

PowerFleet (NASDAQ:AIOT) announced its quarterly earnings data on Monday. The company reported $0.02 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.04 by ($0.02), Zacks reports. PowerFleet had a negative return on equity of 5.31% and a negative net margin of 7.00%.The business had revenue of $113.49 million during the quarter, compared to analysts’ expectations of $111.69 million.

Here are the key takeaways from PowerFleet’s conference call:

• Powerfleet secured a landmark South African public sector contract to deploy AI video and visibility services across >100,000 assets in partnership with MTN, expected to generate material multi‑year recurring SaaS revenue and margins.
• Q3 showed solid financial momentum with service revenue up 11% YoY, total revenue effectively +9% on an apples‑to‑apples basis, Adjusted EBITDA up 26% to $25.7M and margin expansion to ~23%, while net debt/Adjusted EBITDA improved to ~2.7x.
• Commercial traction is accelerating — the Unity platform won multiple enterprise deals (TCVs $0.5M–$5M+), the AI video pipeline grew 71% sequentially and ARR pipeline rose 13% sequentially, supporting higher‑value, subscription‑led growth.
• Management is reinvesting cost savings to support the large public‑sector rollout and other growth initiatives, maintaining ~45% Adjusted EBITDA growth guidance but moderating year‑end leverage expectations (now ~2.4x vs prior ~2.25x) and noting $2.3M of one‑time charges and $5.7M of non‑cash amortization impacts.

PowerFleet Price Performance

NASDAQ AIOT opened at $4.17 on Wednesday. The company has a quick ratio of 0.93, a current ratio of 1.07 and a debt-to-equity ratio of 0.49. The stock has a market capitalization of $558.03 million, a PE ratio of -18.13 and a beta of 1.33. PowerFleet has a 12-month low of $3.70 and a 12-month high of $8.71. The company has a 50 day moving average price of $5.28 and a two-hundred day moving average price of $5.01.

Analyst Ratings Changes

A number of brokerages have recently weighed in on AIOT. Barrington Research reiterated an “outperform” rating and issued a $15.00 target price on shares of PowerFleet in a report on Friday, February 6th. Weiss Ratings reiterated a “sell (d-)” rating on shares of PowerFleet in a research note on Wednesday, January 21st. Wall Street Zen upgraded shares of PowerFleet from a “sell” rating to a “hold” rating in a research report on Saturday, December 13th. Finally, William Blair reissued an “outperform” rating on shares of PowerFleet in a research note on Tuesday, November 11th. Four investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $10.33.

Institutional Investors Weigh In On PowerFleet

Several institutional investors and hedge funds have recently modified their holdings of the business. Royal Bank of Canada boosted its holdings in PowerFleet by 198.0% in the first quarter. Royal Bank of Canada now owns 91,365 shares of the company’s stock worth $501,000 after purchasing an additional 60,705 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in shares of PowerFleet by 275.7% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 203,211 shares of the company’s stock worth $1,116,000 after acquiring an additional 149,116 shares in the last quarter. Dynamic Technology Lab Private Ltd bought a new stake in shares of PowerFleet during the 1st quarter worth about $251,000. Goldman Sachs Group Inc. increased its holdings in shares of PowerFleet by 15.3% during the 1st quarter. Goldman Sachs Group Inc. now owns 1,045,424 shares of the company’s stock valued at $5,739,000 after acquiring an additional 138,856 shares during the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC bought a new position in shares of PowerFleet in the 1st quarter valued at approximately $3,670,000. Institutional investors and hedge funds own 73.40% of the company’s stock.

Key Stories Impacting PowerFleet

Here are the key news stories impacting PowerFleet this week:

• Positive Sentiment: Won a large public‑sector contract in South Africa covering more than 100,000 government vehicles — a material customer win that could meaningfully expand recurring services revenue and long‑term visibility for the business. Read More.
• Positive Sentiment: Recurring revenue and margins showed tangible improvement: total revenue rose 7% YoY to a record $113.5M, services revenue was up 11% YoY, operating profit turned positive ($6.3M vs. loss a year ago), and Adjusted EBITDA increased 26% — all supportive of sustainable cash generation. Read More.
• Positive Sentiment: Revenue beat consensus for the quarter ($113.49M vs. ~$111.7M), indicating underlying demand resilience in the quarter. Read More.
• Neutral Sentiment: The company hosted an earnings call and posted the slide deck and transcripts; these provide management’s color on drivers, backlog, and the cadence for FY guidance — useful for assessing whether the guide reflects temporary timing vs. structural weakness. Read More.
• Negative Sentiment: Reported EPS of $0.02 missed the Street consensus (~$0.04), which combined with other headline items likely pressured sentiment. Read More.
• Negative Sentiment: Full‑year FY2026 revenue guidance was set at $440–$445M, below consensus (~$456.8M). The guide shortfall is the most direct explanation for the stock decline as it signals slower topline visibility than analysts expected. Read More.

PowerFleet Company Profile

PowerFleet, Inc (NASDAQ: AIOT) develops and delivers Internet of Things (IoT)–based telematics and asset-tracking solutions designed to help businesses monitor, manage and optimize fleets of vehicles and industrial equipment. Its core offerings include wireless sensors, GPS tracking devices and cloud-hosted software platforms that provide real-time visibility into vehicle whereabouts, usage patterns, fuel consumption and maintenance needs. The company’s systems also support regulatory compliance and safety monitoring, enabling customers to reduce operational costs, minimize theft and improve overall asset utilization.

The company’s hardware portfolio features RFID readers, active and passive tags, onboard diagnostics (OBD) adapters and temperature or motion sensors that can be deployed on trucks, trailers, forklifts, containers and other high-value assets.