Powerfleet (AIOT) AI Stock Analysis

• Market Cap: $703.25M
• Dividend Yield: N/A
• Average Volume (3M): 1.82M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.42
• Revenue Growth: 119.36%
• EPS Growth: 86.58%
• Country: US
• Employees: 1,954
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): -0.08
• Shares Outstanding: 133,443,300
• 10 Day Avg. Volume: 1,852,796
• 30 Day Avg. Volume: 1,818,471
• 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: 1.17
• Enterprise Value/Revenue: 2.10
• Enterprise Value/Gross Profit: 3.89
• Enterprise Value/Ebitda: -84.88
• 1Y Price Target: $9.00
• Price Target Upside: 65.14% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 57 Neutral
• Price Target: $5.00 ▼(-8.26% Downside)

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

Positive Factors

Shift to SaaS Model

The shift towards a SaaS revenue model enhances recurring revenue streams, improving predictability and stability in financial performance.

Strategic Partnerships

Strategic partnerships and customer wins expand market reach and reinforce Powerfleet's competitive position in global markets.

Operational Efficiency

Successful cost management and savings initiatives enhance operational efficiency, supporting margin improvement and profitability.

Negative Factors

Negative Profit Margins

Negative profit margins indicate ongoing profitability challenges, potentially impacting long-term financial health and shareholder value.

Cash Flow Concerns

Negative free cash flow growth suggests liquidity issues, limiting the company's ability to invest in growth opportunities and manage debt.

Product Revenue Decline

Declining product revenue due to tariffs and economic uncertainties may hinder growth in high-margin product segments, affecting overall profitability.

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 revenue growth but struggles with profitability and cash flow. Positive aspects include low leverage and a strong equity ratio, but negative margins and cash flow issues are concerning.

Income Statement

Powerfleet's income statement shows a mixed performance. The company has a positive revenue growth rate of 7.91% TTM, indicating a growing top line. However, the net profit margin is negative at -9.95% TTM, reflecting ongoing profitability challenges. The gross profit margin is relatively healthy at 54.03% TTM, suggesting efficient cost management in production. The negative EBIT and EBITDA margins indicate operational inefficiencies and potential cost structure issues.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.11 TTM, indicating conservative leverage. However, the return on equity is negative at -8.57% TTM, pointing to challenges in generating returns for shareholders. The equity ratio is strong, suggesting a solid capital structure with equity financing.

Cash Flow

Cash flow analysis reveals concerns with negative free cash flow growth of -33.49% TTM, indicating potential liquidity issues. The operating cash flow to net income ratio is low at 0.04 TTM, suggesting limited cash generation relative to net income. The free cash flow to net income ratio is negative, highlighting cash flow challenges.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2023	Dec 2023
Income Statement
Total Revenue	391.21M	362.51M	133.74M	135.16M	135.16M	135.16M
Gross Profit	211.37M	194.54M	67.08M	64.17M	64.17M	64.17M
EBITDA	-9.69M	-25.89M	-75.00K	563.00K	563.00K	563.00K
Net Income	-38.91M	-51.01M	-5.67M	-7.00M	-7.00M	-7.00M
Balance Sheet
Total Assets	930.78M	910.07M	217.75M	217.44M	217.44M	217.44M
Cash, Cash Equivalents and Short-Term Investments	31.20M	48.79M	19.33M	17.68M	17.68M	17.68M
Total Debt	50.38M	287.06M	27.50M	29.78M	29.78M	29.78M
Total Liabilities	469.90M	463.33M	79.83M	77.06M	77.06M	77.06M
Stockholders Equity	460.88M	446.59M	137.82M	140.30M	140.30M	140.30M
Cash Flow
Free Cash Flow	-19.48M	-23.35M	-2.70M	-4.98M	-4.98M	-4.98M
Operating Cash Flow	6.02M	-3.35M	4.40M	757.00K	757.00K	757.00K
Investing Cash Flow	-206.88M	-170.60M	1.53M	-5.84M	-5.84M	-5.84M
Financing Cash Flow	87.50M	115.72M	-3.71M	-282.00K	-282.00K	-282.00K

Powerfleet Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 5.45 is above the 20-day moving average (MA) of 4.89, above the 50-day MA of 4.55, and below the 200-day MA of 5.47, indicating a neutral trend. The MACD of 0.24 indicates Negative momentum. The RSI at 71.57 is Negative, neither overbought nor oversold. The STOCH value of 84.40 is Negative, 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	706.82M	12.73	26.95%	4.90%	3.30%	9.66%
GILT	69 Neutral	637.17M	29.07	8.16%	―	19.67%	12.32%
ONDS	61 Neutral	1.96B	-12.68	-50.60%	―	75.16%	28.13%
AIOT	57 Neutral	$703.25M	―	-9.14%	―	119.36%	86.58%
AVNW	54 Neutral	300.53M	266.04	0.00%	―	6.50%	-88.62%
CLFD	52 Neutral	464.92M	1,909.44	-4.52%	―	5.72%	0.00%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

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.