Powerfleet (AIOT) AI Stock Analysis

• Market Cap: $623.18M
• Dividend Yield: N/A
• Average Volume (3M): 1.62M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.48
• Revenue Growth: 119.36%
• EPS Growth: 86.58%
• Country: US
• Employees: 1,954
• Sector: Technology
• Sector Strength: 86
• Industry: Communication Equipment
• EPS (TTM): -0.08
• Shares Outstanding: 133,443,300
• 10 Day Avg. Volume: 1,542,073
• 30 Day Avg. Volume: 1,622,951
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.32
• Enterprise Value/Revenue: 2.10
• Enterprise Value/Gross Profit: 3.89
• Enterprise Value/Ebitda: -84.88
• 1Y Price Target: $9.67
• Price Target Upside: 107.07% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 53 Neutral
• Price Target: $5.00 ▲(7.07% Upside)

Powerfleet's overall score is driven by strong earnings call results and moderate technical indicators. However, financial performance and valuation concerns, particularly negative profitability and cash flow, weigh down the score.

Positive Factors

Customer Growth

PowerFleet exited the quarter with over 2.8 million subscribers, expanding its subscriber base fourfold in the fiscal year with a customer base of 48,000, including over half the Fortune 500.

Earnings

Powerfleet reported a 42% revenue increase with significant operating leverage, leading to an 84% increase in adjusted EBITDA.

Revenue Growth

Total revenue for Q1/26 increased 38% with services revenue growth of 53% year over year, highlighting a shift to higher-margin recurring services revenue.

Negative Factors

Integration Risk

The lion’s share of integration risk is largely behind the business, but ongoing integration may pose challenges.

Market Valuation

Shares are trading at just 7 times calendar 2026 EBITDA estimates, potentially limiting future upside.

Powerfleet Business Overview & Revenue Model

Company Description

PowerFleet, Inc. provides wireless Internet-of-Things asset management solutions in the United States, Israel, and internationally. The company offers real-time intelligence for organizations to capture IoT data from various types of assets with devices and sensors to increase efficiencies, and improve safety and security, as well as increase their profitability in easy-to-understand reports, dashboards, and real-time alerts; and application programming interfaces for additional integrations and development to boost other enterprise management systems and third-party applications. It also provides hosting, maintenance, and support and consulting services; and Software as a Service, including system monitoring, help desk technical support, escalation procedure development, routine diagnostic data analysis, and software updates services. The company offers its products under the PowerFleet, Pointer, and Cellocator brands. It sells its products to commercial and government sectors in manufacturing, automotive manufacturing, wholesale and retail, food and grocery distribution, pharmaceutical and medical distribution, construction, mining, utilities, heavy industry, aerospace and defense, homeland security, and vehicle rental, logistics, shipping, and freight transportation markets, as well as through indirect sales channels, such as original equipment manufacturers, vehicle importers, distributors, and industrial equipment dealers. The company was formerly known as I.D. Systems, Inc. PowerFleet, Inc. was incorporated in 1993 and is headquartered in Woodcliff Lake, New Jersey.

How the Company Makes Money

PowerFleet generates revenue primarily through subscription-based services, where customers pay for access to its IoT platforms and software solutions. The key revenue streams include monthly or annual fees for the use of its fleet management software, telematics devices, and data analytics services. Additionally, the company benefits from hardware sales, as it provides GPS tracking devices and sensors that are installed on vehicles and assets. Strategic partnerships with telecommunications companies and software providers also enhance its offerings and expand its market reach, contributing significantly to its earnings.

Powerfleet Financial Statement Overview

Summary

Powerfleet shows promising revenue growth but struggles with profitability due to negative EBIT and net income. The balance sheet is stable with moderate leverage, but high debt levels are a concern. Cash flow volatility indicates potential liquidity issues, necessitating strategic financial management.

Income Statement

Powerfleet exhibits a mixed financial performance with consistent revenue growth from 2019 to 2025, indicating positive momentum in its operations. However, the company faces challenges with profitability, as evidenced by negative EBIT and net income figures over the years. Gross profit margins have remained relatively stable, but net profit margins are negative, reflecting ongoing operational inefficiencies and cost challenges.

Balance Sheet

The company's balance sheet reveals a stable equity position with a Debt-to-Equity Ratio that indicates moderate leverage. The Equity Ratio remains robust, suggesting a strong foundation of stockholders' equity relative to total assets. However, the persistent high levels of debt could pose a risk if not managed effectively, especially in a volatile industry environment.

Cash Flow

Powerfleet's cash flow statements indicate volatility, with operating cash flows being negative in recent periods, which could stress liquidity. The company has experienced fluctuations in free cash flow, impacted by high capital expenditures and inconsistent operating cash flows. This inconsistency highlights potential challenges in sustaining financial flexibility and investing in growth opportunities.

Breakdown	TTM	Dec 2025	Dec 2023	Dec 2023	Dec 2023	Dec 2023
Income Statement
Total Revenue	391.21M	362.51M	133.74M	133.74M	133.74M	133.74M
Gross Profit	211.37M	194.54M	67.08M	67.08M	67.08M	67.08M
EBITDA	-9.69M	-25.89M	-75.00K	-75.00K	-75.00K	-75.00K
Net Income	-38.91M	-51.01M	-5.67M	-5.67M	-5.67M	-5.67M
Balance Sheet
Total Assets	930.78M	910.07M	217.75M	217.75M	217.75M	217.75M
Cash, Cash Equivalents and Short-Term Investments	31.20M	48.79M	19.33M	19.33M	19.33M	19.33M
Total Debt	50.38M	287.06M	27.50M	27.50M	27.50M	27.50M
Total Liabilities	469.90M	463.33M	79.83M	79.83M	79.83M	79.83M
Stockholders Equity	460.88M	446.59M	137.82M	137.82M	137.82M	137.82M
Cash Flow
Free Cash Flow	-19.48M	-23.35M	-2.70M	-2.70M	-2.70M	-2.70M
Operating Cash Flow	6.02M	-3.35M	4.40M	4.40M	4.40M	4.40M
Investing Cash Flow	-206.88M	-170.60M	1.53M	1.53M	1.53M	1.53M
Financing Cash Flow	87.50M	115.72M	-3.71M	-3.71M	-3.71M	-3.71M

Powerfleet Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.67
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AIOT, the sentiment is Positive. The current price of 4.67 is above the 20-day moving average (MA) of 4.39, above the 50-day MA of 4.38, and below the 200-day MA of 5.56, indicating a neutral trend. The MACD of 0.09 indicates Negative momentum. The RSI at 56.08 is Neutral, neither overbought nor oversold. The STOCH value of 77.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AIOT.

Powerfleet Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ITRN	70 Outperform	$670.81M	12.36	29.11%	5.28%	3.30%	9.66%
GILT	69 Neutral	$536.99M	23.99	7.49%	―	19.67%	12.32%
ONDS	66 Neutral	$1.60B	―	-81.20%	―	75.16%	28.13%
Sector *	61 Neutral	$35.48B	7.70	-10.11%	1.88%	8.73%	-9.23%
AVNW	54 Neutral	$299.66M	―	-1.32%	―	12.39%	-123.62%
AIOT	53 Neutral	$623.18M	―	-9.14%	―	119.36%	86.58%
CLFD	51 Neutral	$450.35M	1,812.22	0.07%	―	5.72%	―

Powerfleet Corporate Events

Powerfleet Reports Strong Q1 2026 Financial Results

On August 11, 2025, Powerfleet reported its financial results for the first quarter of fiscal year 2026, showcasing a 38% year-over-year increase in total revenue to $104.1 million, driven by strong services revenue growth. The company’s strategic focus on high-margin SaaS solutions and successful integration of acquisitions contributed to a 58% rise in adjusted EBITDA, reaching $21.6 million. Powerfleet’s ongoing efforts in expanding its EBITDA and improving operational efficiencies have positioned it well for future growth, as evidenced by its increased revenue guidance for the full year 2026.

Powerfleet Reports Strong Fiscal 2025 Revenue Growth

Powerfleet reported significant growth in fiscal year 2025, with a 26% increase in total revenue to $362.5 million and a 65% rise in adjusted EBITDA to $71 million. The company achieved a milestone year by executing a strategic transformation, integrating acquisitions, and expanding its subscriber base to 2.8 million. Powerfleet’s focus on high-margin SaaS revenue and strategic solutions like AI video and in-warehouse safety contributed to its strong performance. The company is poised for further growth in fiscal 2026, supported by a robust pipeline and international operations.

Powerfleet Amends CEO Severance Agreement

On May 31, 2025, Powerfleet, Inc. announced an amendment to the severance agreement with its CEO, Steve Towe. The amendment specifies that if severance benefits are triggered, Mr. Towe’s bonus will be calculated at twice the amount of any bonus he would have received for the fiscal year of his termination.

Powerfleet Reports Strong Fiscal Year 2025 Results

On May 23, 2025, Powerfleet announced its preliminary financial results for the fiscal year ended March 31, 2025, showing a 25% increase in total revenue and a 65% growth in adjusted EBITDA, marking a milestone year. The company also shared an optimistic outlook for fiscal 2026, despite macroeconomic challenges, expecting revenue growth between 20% and 25% and adjusted EBITDA growth between 45% and 55%, driven by the maturation of its Unity platform and expanding customer operations.