Powerfleet (AIOT) AI Stock Analysis

• Market Cap: $579.07M
• Dividend Yield: N/A
• Average Volume (3M): 2.14M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.44
• Revenue Growth: 168.61%
• EPS Growth: 79.82%
• Country: US
• Employees: 1,954
• Sector: Technology
• Sector Strength: 89
• Industry: Communication Equipment
• EPS (TTM): -0.09
• Shares Outstanding: 132,509,340
• 10 Day Avg. Volume: 2,233,754
• 30 Day Avg. Volume: 2,137,726
• PEG Ratio: 0.17
• Price to Book (P/B): 1.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -47.80
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 0.63
• Enterprise Value/Gross Profit: 3.11
• Enterprise Value/Ebitda: -7.09
• 1Y Price Target: $10.33
• Price Target Upside: 135.84% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 65 Neutral
• Price Target: $5.00 ▲(14.16%Upside)

Powerfleet's overall score reflects strong growth potential and strategic initiatives that are driving performance, but ongoing profitability and cash flow issues, coupled with bearish technical indicators, present notable risks.

Positive Factors

Customer Expansion

The subscriber base expanded to over 2.8 million, with the customer base including over half of the Fortune 500 companies.

Revenue Growth

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

Strategic Partnerships

The company announced a key new partnership with a large North American student transportation company, enhancing its AI video safety solutions.

Negative Factors

Earnings Estimates

Adjusted EBITDA estimates for 2025 and 2026 have been revised down slightly to account for exit run-rate commentary.

Near-term Outlook

Shares are off roughly 10% given the lowered near-term outlook.

Revenue and EBITDA Expectations

The company provided an initial look for fiscal 2026 that was a bit noisier than expected, with total revenue and adjusted EBITDA below expectations due to macro uncertainty, a minor accounting reclassification, and small business divestiture.

Powerfleet Business Overview & Revenue Model

Company Description

Powerfleet (AIOT) is a leading provider of Internet of Things (IoT) solutions that enhance the safety, efficiency, and productivity of enterprise assets. Operating in sectors such as transportation, logistics, and industrial operations, Powerfleet offers a comprehensive suite of products and services including telematics, advanced data analytics, and fleet management systems. The company leverages its expertise in AI and IoT to deliver real-time insights and innovative solutions tailored to meet the unique needs of its global clientele.

How the Company Makes Money

Powerfleet generates revenue primarily through the sale of its IoT solutions and telematics products, alongside subscription-based services for its software platforms. These platforms enable businesses to monitor and manage their fleet and assets more effectively. Key revenue streams include hardware sales, such as vehicle tracking devices, and recurring revenues from software licenses, data services, and customer support packages. The company also benefits from strategic partnerships with vehicle manufacturers, logistics companies, and technology firms, which help expand its market reach and drive sales. Additionally, Powerfleet may engage in custom solution development for large enterprise clients, contributing further to its revenue.

Powerfleet Financial Statement Overview

Summary

Powerfleet shows promising revenue growth and a solid equity base, but ongoing profitability issues and cash flow volatility present significant challenges.

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	Mar 2025	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	362.51M	133.74M	135.16M	126.21M	113.59M
Gross Profit	194.54M	67.08M	64.17M	60.18M	59.02M
EBITDA	-25.89M	-75.00K	563.00K	631.00K	4.92M
Net Income	-51.01M	-5.67M	-7.00M	-13.29M	-9.01M
Balance Sheet
Total Assets	910.07M	217.75M	217.44M	229.87M	208.41M
Cash, Cash Equivalents and Short-Term Investments	48.79M	19.33M	17.68M	26.45M	18.13M
Total Debt	287.06M	27.50M	29.78M	34.23M	38.56M
Total Liabilities	463.33M	79.83M	77.06M	85.01M	77.52M
Stockholders Equity	446.59M	137.82M	140.30M	144.77M	130.81M
Cash Flow
Free Cash Flow	-23.35M	-2.70M	-4.98M	-8.42M	5.47M
Operating Cash Flow	-3.35M	4.40M	757.00K	-5.02M	8.85M
Investing Cash Flow	-170.60M	1.53M	-5.84M	-3.40M	-3.30M
Financing Cash Flow	115.72M	-3.71M	-282.00K	16.21M	-3.95M

Powerfleet Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.38
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AIOT, the sentiment is Negative. The current price of 4.38 is below the 20-day moving average (MA) of 4.64, below the 50-day MA of 4.98, and below the 200-day MA of 5.72, indicating a bearish trend. The MACD of -0.17 indicates Positive momentum. The RSI at 40.17 is Neutral, neither overbought nor oversold. The STOCH value of 14.14 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AIOT.

Powerfleet Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ITRN	80 Outperform	$730.29M	13.23	30.02%	5.45%	3.73%	11.24%
VRNT	74 Outperform	$1.09B	23.29	5.32%	―	-2.09%	76.96%
RDWR	72 Outperform	$1.22B	109.88	3.78%	―	9.54%	―
AIOT	65 Neutral	$579.07M	―	-17.72%	―	168.61%	79.82%
COHU	60 Neutral	$905.87M	―	-9.87%	―	-30.75%	-3668.44%
NTGR	56 Neutral	$820.04M	35.05	4.78%	―	-6.97%	―
Sector *	50 Neutral	AU$1.44B	1.83	-28.24%	3.29%	15.64%	-7.01%

Powerfleet Corporate Events

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.

The most recent analyst rating on (AIOT) stock is a Buy with a $10.00 price target. To see the full list of analyst forecasts on Powerfleet stock, see the AIOT Stock Forecast page.

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.

The most recent analyst rating on (AIOT) stock is a Buy with a $13.00 price target. To see the full list of analyst forecasts on Powerfleet stock, see the AIOT Stock Forecast page.

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.

The most recent analyst rating on (AIOT) stock is a Buy with a $10.00 price target. To see the full list of analyst forecasts on Powerfleet stock, see the AIOT Stock Forecast page.