Powerfleet (AIOT)
NASDAQ:AIOT
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Powerfleet
(NASDAQ:AIOT)
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Rating:52Neutral
Price Target:
$3.50
▲(2.04% Upside)
Action:Reiterated
Date:03/12/26
The score is held back primarily by weak technicals (downtrend and negative momentum) and still-unprofitable financials (material net losses and inconsistent free cash flow), despite improving operating cash flow and a manageable balance sheet. Offsetting these risks, the latest earnings call was constructive, highlighting strong adjusted EBITDA expansion, recurring-revenue momentum, and a growing pipeline, but near-term investment and leverage trade-offs temper the upside.
Positive Factors
Recurring revenue mix shift to services (80%)
A shift to services and recurring revenue (now ~80% of revenue) materially improves revenue predictability and customer lifetime value. Higher recurring mix supports margin durability, cross-sell expansion on the Unity platform, and reduces cyclicality versus one-time product sales.
Negative Factors
Ongoing net losses and negative net margin
Material trailing net losses indicate the company has not yet converted gross profit into durable bottom-line profitability. Continued losses can pressure equity, limit reinvestment capacity, and necessitate future capital raises or margin improvement to avoid dilution and support sustainable returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue mix shift to services (80%)
A shift to services and recurring revenue (now ~80% of revenue) materially improves revenue predictability and customer lifetime value. Higher recurring mix supports margin durability, cross-sell expansion on the Unity platform, and reduces cyclicality versus one-time product sales.
Read all positive factors
Powerfleet Key Performance Indicators (KPIs)
Powerfleet (AIOT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$437.32M
Dividend YieldN/A
Average Volume (3M)1.55M
Price to Earnings (P/E)―
Beta (1Y)2.46
Revenue Growth47.73%
EPS Growth88.75%
CountryUS
Employees1,954
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)-0.24
Shares Outstanding134,147,280
10 Day Avg. Volume1,278,472
30 Day Avg. Volume1,545,975
Financial Highlights & Ratios
PEG Ratio0.21
Price to Book (P/B)1.47
Price to Sales (P/S)1.82
P/FCF Ratio-17.72
Enterprise Value/Market Cap1.64
Enterprise Value/Revenue1.64
Enterprise Value/Gross Profit2.98
Enterprise Value/Ebitda9.67
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.09
Revenue Forecast (FY)$482.33M
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 d...
How the Company Makes Money
PowerFleet primarily makes money by selling subscription-based access to its cloud software platforms and recurring services associated with connected devices deployed across customer fleets and asset bases. Key revenue streams typically include: ...
Powerfleet Earnings Call Summary
Earnings Call Date:Feb 09, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jun 22, 2026
Earnings Call Sentiment Positive
The call delivers a predominantly positive message: recurring revenue growth, strong pipeline expansion (AI video +71% seq.), multiyear landmark deals (South Africa >100k assets), and meaningful adjusted EBITDA expansion ($25.7M, +~26% YoY) signal that integration progress and the Unity platform are translating into scalable commercial traction. Management is intentionally redeploying realized cost savings into investments to support very large deployments and accelerate growth, which modestly delays additional leverage improvement and causes near-term margin and guidance trade-offs. On balance, the highlights (growth, margin expansion, large contract wins, and pipeline strength) outweigh the manageable lowlights (one-time charges, amortization impacts, and temporary investment-driven leverage/margin effects).Positive Updates
Service Revenue Growth and Mix Shift
Service revenue grew 11% year-over-year and now represents 80% of total revenue (up from 77% prior year), reflecting a shift toward higher-margin recurring SaaS revenue.
Negative Updates
Near-Term Investment Costs and OpEx Tradeoffs
Management chose to redeploy cost savings into investments to support the South Africa deployment and growth, reducing the pace of additional cost cuts and resulting in a narrower adjusted EBITDA guidance posture (updated to ~45% annual growth vs prior 45-50% range).
Read all updates
Q3-2026 Updates
Positive
Negative
Service Revenue Growth and Mix Shift
Service revenue grew 11% year-over-year and now represents 80% of total revenue (up from 77% prior year), reflecting a shift toward higher-margin recurring SaaS revenue.
Read all positive updates
Company Guidance
Management guided to a Q4 FY‑26 exit run rate of roughly 10% total revenue growth and north of 10% recurring revenue (ARR) growth, is targeting ~15% ARR growth for FY‑27, and updated adjusted EBITDA guidance to about +45% year‑over‑year (vs prior +45%–50%); Q3 results showed total revenue +7% YoY (+9% on an apples‑to‑apples basis after a $2M prior‑year product revenue benefit), services revenue +11% YoY (now 80% of revenue, up from 77%), adjusted EBITDA roughly $25.7M (up ~20%–26% YoY) with adjusted EBITDA margin up ~4 points to ~23%, adjusted EBITDA gross margin ~67%, product margins in the low‑30% range, net debt/adjusted EBITDA exited at ~2.7x and is expected to fall to ~2.4x by year‑end (previously ~2.25x), one‑time charges were $2.3M (excluded from adjusted EBITDA), acquisition‑related amortization was $5.7M (pressuring services gross margin by >6%), AI video pipeline grew 71% sequentially, ARR pipeline grew 13% sequentially, R&D was ~8% of revenue (4% net of capitalization).Powerfleet Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
62
Positive
Cash Flow
50
Neutral
| Breakdown | TTM | Mar 2025 | Mar 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 435.72M | 362.51M | 362.51M | 135.16M | 125.96M | 113.59M |
| Gross Profit | 240.54M | 194.54M | 194.54M | 64.17M | 59.75M | 59.02M |
| EBITDA | 74.10M | 56.80M | 56.80M | 7.83M | 434.00K | 7.75M |
| Net Income | -32.23M | -50.99M | -50.99M | -7.00M | -12.77M | -9.01M |
Balance Sheet | ||||||
| Total Assets | 959.46M | 910.07M | 308.68M | 222.93M | 229.87M | 231.60M |
| Cash, Cash Equivalents and Short-Term Investments | 31.21M | 48.79M | 24.35M | 24.78M | 26.45M | 40.95M |
| Total Debt | 289.97M | 287.06M | 123.47M | 27.54M | 34.23M | 36.55M |
| Total Liabilities | 474.28M | 463.33M | 179.77M | 75.54M | 85.01M | 76.53M |
| Stockholders Equity | 485.03M | 446.59M | 128.80M | 147.32M | 144.77M | 155.00M |
Cash Flow | ||||||
| Free Cash Flow | 1.38M | -37.13M | -2.70M | -4.98M | -8.42M | 5.47M |
| Operating Cash Flow | 33.99M | -3.35M | 4.40M | 1.25M | -5.39M | 8.85M |
| Investing Cash Flow | -42.07M | -170.60M | 1.53M | -6.33M | -3.03M | -3.30M |
| Financing Cash Flow | 6.16M | 115.72M | -3.71M | -282.00K | 16.21M | -3.95M |
Powerfleet Technical Analysis
Neutral
3.43
Price Trends
3.40
Positive
4.33
Negative
4.56
Negative
Market Momentum
-0.04
Negative
58.07
Neutral
85.74
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AIOT, the sentiment is Neutral. The current price of 3.43 is above the 20-day moving average (MA) of 3.06, above the 50-day MA of 3.40, and below the 200-day MA of 4.56, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 58.07 is Neutral, neither overbought nor oversold. The STOCH value of 85.74 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AIOT.
Powerfleet Risk Analysis
Powerfleet disclosed 31 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 |
|---|---|---|---|---|---|---|---|
82 Outperform | $1.17B | 13.96 | 28.06% | 4.38% | 6.77% | 8.12% | |
65 Neutral | $1.22B | 53.47 | 5.50% | ― | 46.26% | 111.78% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $605.68M | -171.33 | -3.40% | ― | -23.56% | -362.44% | |
58 Neutral | $5.44B | ― | -50.76% | ― | 793.18% | ― | |
54 Neutral | $211.82M | -35.86 | 3.37% | ― | 0.23% | ― | |
52 Neutral | $437.32M | -52.83 | -6.94% | ― | 47.73% | 88.75% |
* Technology Sector Average
AIOT
Powerfleet
3.26
-2.71
-45.39%
AVNW
Aviat Networks
16.37
-4.31
-20.84%
CLFD
Clearfield
44.57
5.72
14.72%
GILT
Gilat
16.08
9.40
140.72%
ITRN
Ituran Location And Control
58.83
23.57
66.86%
ONDS
Ondas
11.21
10.28
1105.38%
Powerfleet Corporate Events
Business Operations and StrategyFinancial Disclosures
Powerfleet Posts Record Q3 Revenue and Turns Profitable
Positive
Feb 9, 2026
On February 9, 2026, Powerfleet reported financial results for its third quarter ended December 31, 2025, highlighted by record total revenue of $113.5 million, up 7% year over year, and services revenue of $91.1 million, up 11%, with services now...
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.