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Powerfleet
(NASDAQ:AIOT)
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Rating:57Neutral
Price Target:
$3.00
▼(-19.57% Downside)
Action:Reiterated
Date:08/11/26
The score reflects improving fundamentals (scaling revenue, positive operating profitability, and positive TTM operating/free cash flow) offset by weak price action (below key moving averages with bearish momentum) and a softer near-term outlook from the latest guidance update. Negative earnings (unsupported P/E) and lack of a dividend further temper the valuation profile.
Positive Factors
High recurring services mix
Services now represent the bulk of revenue (~85%) and grew 9.1% YoY, providing durable, subscription-like cash flows and higher gross margins. This mix increases revenue predictability, supports scalable gross margins and cross-sell economics across large enterprise customers over multi-year cycles.
Negative Factors
Ongoing net losses and negative returns
Despite operating improvement, the company remains loss-making at the net level and shows negative ROE, indicating shareholders are not yet receiving positive returns on capital. Persistent bottom-line losses can constrain reinvestment, limit strategic optionality, and increase reliance on external financing.
Read all positive and negative factors
Positive Factors
Negative Factors
High recurring services mix
Services now represent the bulk of revenue (~85%) and grew 9.1% YoY, providing durable, subscription-like cash flows and higher gross margins. This mix increases revenue predictability, supports scalable gross margins and cross-sell economics across large enterprise customers over multi-year cycles.
Read all positive factors
Powerfleet Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks revenue down by region to show where Powerfleet earns most of its sales and where future growth is likely to come from. Dependence on a single country or region increases risk from local downturns or regulation, while geographic diversification can smooth volatility and support expansion.
Breaks revenue down by region to show where Powerfleet earns most of its sales and where future growth is likely to come from. Dependence on a single country or region increases risk from local downturns or regulation, while geographic diversification can smooth volatility and support expansion.
Data provided by:
The Fly
The FlyPowerfleet (AIOT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$417.44M
Dividend YieldN/A
Average Volume (3M)1.53M
Price to Earnings (P/E)―
Beta (1Y)2.65
Revenue Growth15.14%
EPS Growth52.80%
CountryUS
Employees2,658
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)-0.14
Shares Outstanding134,225,920
10 Day Avg. Volume1,064,360
30 Day Avg. Volume1,533,013
Financial Highlights & Ratios
PEG Ratio0.32
Price to Book (P/B)0.87
Price to Sales (P/S)0.93
P/FCF Ratio46.59
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$9.00Price Target Upside141.29% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)0.06
Revenue Forecast (FY)$471.42M
Powerfleet Business Overview & Revenue Model
Company Description
Operating across the United States, Israel, and other international markets, PowerFleet, Inc. specializes in wireless Internet-of-Things (IoT) solutions designed for asset management. The company's technology gathers real-time Internet-of-Things (...
How the Company Makes Money
PowerFleet generates revenue primarily by selling AIoT and telematics solutions that combine (1) recurring software and connectivity services and (2) hardware and related professional services. A core component of its model is subscription/recurri...
Powerfleet Earnings Call Summary
Earnings Call Date:Aug 10, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Nov 17, 2026
Earnings Call Sentiment Positive
The call presents a largely positive long-term picture: broad customer demand, strong recurring services growth (+9.1% YoY), margin expansion, sizable enterprise wins and a material acceleration of a high-potential South Africa contract (>$27M near-term ARR, installs ramping from ~10k to >70k). Near-term challenges include a production-related $3.2M revenue delay, a deliberate decision to forgo roughly $1.6M in Q1 South Africa revenue and a guidance reduction (~$17M revenue / ~$11M adjusted EBITDA impact) driven by capacity reallocation. Management frames these as timing and quality-of-revenue decisions to prioritize a larger, higher-quality ARR ramp, while reiterating improved margins, better cash flow trajectory and multi-year growth visibility.Positive Updates
Quarterly Revenue Growth
Total revenue of $110.8M in Q1, up 6.4% year-over-year.
Negative Updates
Near-Term Guidance Reduction
Fiscal 2027 revenue guidance lowered to $468M–$473M from prior $485M–$490M (management indicated ~ $17M reduction vs prior midpoint). Adjusted EBITDA guidance cut to $111M–$114M from $122M–$125M (≈$11M impact). Management attributes the change to deliberate reprioritization for the South Africa ramp (timing gap rather than structural trajectory change).
Read all updates
Q1-2027 Updates
Positive
Negative
Quarterly Revenue Growth
Total revenue of $110.8M in Q1, up 6.4% year-over-year.
Read all positive updates
Company Guidance
Powerfleet updated fiscal 2027 guidance to revenue of $468–$473 million (prior $485–$490M) and adjusted EBITDA of $111–$114 million (prior $122–$125M), a ~ $17M reduction versus the prior midpoint driven by a deliberate reprioritization to support a South African ramp that requires reallocation of capacity and results in an approximate $11M adjusted‑EBITDA impact (≈$6M flow‑through + ~$5M one‑time costs). Management still expects a Q4 ’27 annualized revenue run‑rate of ~ $495M with adjusted‑EBITDA margins of ~27%, a net loss of $6–$8M (versus prior net income $4–$8M), and free cash flow of $20–$23M (prior $30–$35M); the bridge to FCF assumes CapEx ≈ $52M, cash interest ≈ $24M, cash taxes ≈ $8M and restructuring/other ≈ $8M. The company notes the South African program already represents in excess of $27M ARR near‑term with >70,000 installations (expected to rise to 80k–90k), expects the 2026–2028 revenue CAGR to remain on track with stronger growth in fiscal 2028, and expects favorable payment/financing terms on the SA rollout to roughly offset upfront device CapEx (near breakeven cash performance for the year).Powerfleet Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
71
Positive
Cash Flow
56
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Dec 2023 | Dec 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 450.45M | 443.78M | 362.51M | 362.51M | 135.16M | 125.96M |
| Gross Profit | 251.10M | 246.42M | 194.54M | 194.54M | 64.17M | 59.75M |
| EBITDA | 63.70M | 76.55M | 21.37M | 56.80M | 7.83M | 434.00K |
| Net Income | -18.76M | -20.55M | -50.99M | -50.99M | -7.00M | -12.77M |
Balance Sheet | ||||||
| Total Assets | 962.56M | 955.57M | 910.07M | 308.68M | 217.44M | 229.87M |
| Cash, Cash Equivalents and Short-Term Investments | 32.82M | 36.50M | 44.39M | 24.35M | 17.99M | 26.45M |
| Total Debt | 295.62M | 296.92M | 287.06M | 123.47M | 29.78M | 34.23M |
| Total Liabilities | 479.87M | 473.95M | 463.33M | 179.77M | 77.04M | 85.01M |
| Stockholders Equity | 482.59M | 475.49M | 446.59M | 128.80M | 140.94M | 144.77M |
Cash Flow | ||||||
| Free Cash Flow | 8.04M | 8.84M | -37.13M | -2.70M | -4.98M | -8.42M |
| Operating Cash Flow | 34.18M | 30.46M | -3.35M | 4.40M | 1.25M | -5.39M |
| Investing Cash Flow | -36.90M | -39.75M | -170.60M | 1.53M | -6.33M | -3.03M |
| Financing Cash Flow | 2.78M | 151.00K | 115.72M | -3.71M | -282.00K | 16.21M |
Powerfleet Risk Analysis
Powerfleet disclosed 30 risk factors in its most recent earnings report. Powerfleet reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Powerfleet Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $1.09B | 17.74 | 6.22% | 6.94% | 5.43% | 208.11% | |
71 Outperform | $23.26B | 389.33 | 4.22% | ― | 29.60% | ― | |
68 Neutral | $4.11B | 105.61 | 2.29% | ― | 11.56% | 2035.29% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | $417.44M | -22.68 | -3.92% | ― | 15.14% | 52.80% | |
52 Neutral | $454.39M | -9.51 | -26.16% | ― | ― | ― | |
44 Neutral | $98.23M | -4.27 | -59.05% | ― | 9.78% | 69.23% |
* Technology Sector Average
AIOT
Powerfleet
3.11
-1.47
-32.10%
REKR
Rekor Systems
0.71
-0.37
-33.98%
CCC
CCC Intelligent Solutions Holdings
6.97
-2.75
-28.29%
TUYA
Tuya
1.82
-0.44
-19.47%
IOT
Samsara
39.79
5.89
17.37%
GRRR
Gorilla Technology Group Inc.
16.37
-1.60
-8.90%
Powerfleet Corporate Events
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Powerfleet Delivers Q1 Revenue Growth and Margin Expansion
Positive
Aug 10, 2026
Powerfleet reported results on August 10, 2026 for its first fiscal quarter ended June 30, 2026, showing 6.4% year-over-year revenue growth to $110.8 million, driven by a 9.1% rise in services revenue to $94.3 million, which now accounts for 85% o...
Business Operations and StrategyExecutive/Board Changes
Powerfleet Refreshes Board Leadership and Governance Structure
Positive
Jul 21, 2026
On July 15, 2026, Powerfleet’s board elected Michael Casey to rejoin the board of directors and appointed him chair of the audit committee, while also placing him on the audit, compensation and nominating committees. The same day, director M...
Business Operations and StrategyStock Buyback
Powerfleet Authorizes $30 Million Stock Buyback Program
Positive
Jul 1, 2026
On June 30, 2026, Powerfleet announced that its board had approved a stock repurchase program authorizing buybacks of up to $30 million of its common stock over the next 24 months. The move comes as part of the AIoT SaaS provider’s broader c...
Business Operations and StrategyFinancial Disclosures
Powerfleet Delivers Strong FY26 Results and Growth Outlook
Positive
Jun 15, 2026
On June 15, 2026, Powerfleet reported results for the fourth quarter and fiscal year ended March 31, 2026, highlighting double-digit revenue growth and a sharp swing to operating profitability driven by high-margin services. Fiscal 2026 revenue ro...
Business Operations and StrategyExecutive/Board Changes
Powerfleet Announces Chief Innovation Officer Leadership Transition
Neutral
May 22, 2026
Powerfleet, Inc. said its Chief Innovation Officer, Mike Powell, will depart the company effective May 29, 2026, after the board received his notice on May 18, 2026. The company thanked Powell for his contributions and signaled a coming transition...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.