Powerfleet (AIOT) AI Stock Analysis

• Market Cap: $665.11M
• Dividend Yield: N/A
• Average Volume (3M): 1.35M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.67
• Revenue Growth: 92.56%
• EPS Growth: 85.10%
• Country: US
• Employees: 1,954
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): -0.03
• Shares Outstanding: 133,824,620
• 10 Day Avg. Volume: 1,202,024
• 30 Day Avg. Volume: 1,352,964
• PEG Ratio: 1.05
• Price to Book (P/B): 1.47
• Price to Sales (P/S): 1.82
• P/FCF Ratio: -17.72
• Enterprise Value/Market Cap: 1.44
• Enterprise Value/Revenue: 2.43
• Enterprise Value/Gross Profit: 4.48
• Enterprise Value/Ebitda: 18.41
• 1Y Price Target: $10.50
• Price Target Upside: 118.75% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): -0.1
• Revenue Forecast (FY): $440.08M

• Rating: 61 Neutral
• Price Target: $5.50 ▲(14.58% Upside)

Powerfleet's overall stock score is driven by strong earnings call performance and revenue growth, offset by significant profitability challenges and a negative valuation score. Technical indicators suggest a lack of strong momentum, further impacting the score.

Positive Factors

Revenue Growth

Powerfleet's strong revenue growth indicates effective market penetration and product demand, supporting long-term business expansion.

Strategic Partnerships

Expanding global partnerships enhances market reach and strengthens competitive positioning, driving sustainable growth.

Leadership Change

New leadership with SaaS growth experience can drive strategic initiatives and improve operational efficiency, boosting long-term growth.

Negative Factors

Profitability Challenges

Ongoing profitability issues highlight challenges in cost management, potentially impacting long-term financial health and investment capacity.

Cash Flow Issues

Negative free cash flow suggests difficulties in converting revenue into cash, which could constrain future growth investments and operations.

Legacy Revenue Decline

Decline in legacy revenue streams may affect short-term revenue stability, requiring successful transition to new growth areas for long-term success.

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 through a subscription-based model, charging customers for access to its software and analytics platforms. Key revenue streams include recurring subscription fees for its telematics services, hardware sales of IoT devices, and additional fees for premium features and analytics services. The company also benefits from long-term contracts with enterprise clients, providing steady revenue flow. Significant partnerships with telecommunications companies and technology providers further enhance its offerings and market reach, contributing to its financial performance.

Powerfleet Financial Statement Overview

Summary

Powerfleet demonstrates robust revenue growth and a strong gross profit margin, indicative of effective sales and cost management. However, the company faces significant profitability challenges, with negative net income and EBIT margins. The balance sheet shows reduced leverage and a strong equity position, but negative return on equity suggests ongoing profitability issues. Cash flow analysis reveals positive operating cash flow but negative free cash flow, highlighting difficulties in cash conversion. Overall, while growth prospects are promising, profitability and cash flow management require attention.

Income Statement

Powerfleet shows a positive revenue growth rate of 8.86% TTM, indicating a strong upward trajectory in sales. The gross profit margin is healthy at 54.03%, reflecting efficient cost management. However, the company struggles with profitability, as evidenced by a negative net profit margin of -9.95% and a negative EBIT margin of -2.72%. These figures suggest challenges in controlling operational costs and achieving profitability.

Balance Sheet

The company's debt-to-equity ratio improved significantly to 0.11 TTM from 0.64 previously, indicating reduced leverage and a stronger equity position. However, the return on equity remains negative at -8.57%, highlighting ongoing profitability challenges. The equity ratio is strong, suggesting a solid asset base relative to liabilities.

Cash Flow

Operating cash flow is positive at $14.72 million TTM, showing improvement in cash generation from operations. However, free cash flow is negative at -$10.25 million, with a concerning free cash flow growth rate of -47.37%. The negative free cash flow to net income ratio of -3.24 indicates challenges in converting earnings into cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2023	Dec 2023
Income Statement
Total Revenue	393.51M	362.51M	362.51M	135.16M	135.16M	135.16M
Gross Profit	213.67M	194.54M	194.54M	64.17M	64.17M	64.17M
EBITDA	51.94M	56.80M	56.80M	7.83M	7.83M	7.83M
Net Income	-43.02M	-50.99M	-50.99M	-7.00M	-7.00M	-7.00M
Balance Sheet
Total Assets	936.89M	910.07M	308.68M	222.93M	222.93M	222.93M
Cash, Cash Equivalents and Short-Term Investments	27.90M	48.79M	24.35M	24.78M	24.78M	24.78M
Total Debt	56.33M	287.06M	123.47M	27.54M	27.54M	27.54M
Total Liabilities	467.91M	463.33M	179.77M	75.54M	75.54M	75.54M
Stockholders Equity	468.98M	446.59M	128.80M	147.32M	147.32M	147.32M
Cash Flow
Free Cash Flow	-15.81M	-37.13M	-2.70M	-4.98M	-4.98M	-4.98M
Operating Cash Flow	17.69M	-3.35M	4.40M	1.25M	1.25M	1.25M
Investing Cash Flow	-207.39M	-170.60M	1.53M	-6.33M	-6.33M	-6.33M
Financing Cash Flow	134.71M	115.72M	-3.71M	-282.00K	-282.00K	-282.00K

Powerfleet Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 4.8 is above the 20-day moving average (MA) of 4.79, below the 50-day MA of 5.08, and below the 200-day MA of 5.09, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 48.45 is Neutral, neither overbought nor oversold. The STOCH value of 85.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AIOT.

Powerfleet Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ITRN	79 Outperform	$796.54M	14.09	28.62%	5.15%	5.20%	9.14%
GILT	72 Outperform	$801.90M	31.82	6.95%	―	29.67%	41.90%
AVNW	63 Neutral	$273.18M	20.41	5.24%	―	10.89%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AIOT	61 Neutral	$665.11M	―	-8.98%	―	92.56%	85.10%
ONDS	55 Neutral	$2.91B	―	-17.04%	―	208.40%	44.60%
CLFD	49 Neutral	$406.32M	―	2.37%	―	-9.94%	30.96%

Powerfleet Corporate Events

Powerfleet Releases Strategic Investor Presentation

On November 14, 2025, Powerfleet, Inc. released an investor presentation on its website, aimed at informing investors, analysts, and other stakeholders. The presentation, which is not incorporated by reference into the company’s official filings, outlines the company’s strategic plans and anticipated financial impacts, including the business combination with MiX Telematics and the acquisition of Fleet Complete. This move is part of Powerfleet’s efforts to enhance its market positioning, although it faces risks such as integration challenges, global economic conditions, and cybersecurity threats.

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 Reports Strong Q2 FY26 Revenue Growth

Powerfleet, Inc. is a global leader in the AIoT SaaS mobile asset industry, providing data integration and actionable insights to enhance business operations. In its latest earnings report, Powerfleet announced a 7% sequential increase in total revenue for Q2 FY26, reaching a record $111.7 million, marking a 45% year-over-year growth. The company also reported a significant rise in services revenue and gross profit, alongside an increase in its FY26 total revenue guidance. Key financial metrics highlighted include a 71% year-over-year increase in adjusted EBITDA to $24.8 million, reflecting strong operating leverage and improved gross margins. Despite a net loss of $4.3 million, the company achieved a 22% adjusted EBITDA margin and improved its adjusted net debt to adjusted EBITDA ratio. Looking forward, Powerfleet’s management remains optimistic about sustained growth, driven by its AI-powered solutions and strategic market positioning.

PowerFleet’s Earnings Call Highlights Robust Growth and Optimism

PowerFleet, Inc. recently held its earnings call, revealing a generally positive sentiment among its executives. The company reported strong revenue and EBITDA growth, successful integration of acquisitions, and significant new contracts. Despite facing challenges such as one-time expenses and legacy revenue declines, the overall outlook remains optimistic due to these substantial achievements.

Powerfleet Raises Full-Year Revenue Guidance

Powerfleet reported a significant increase in its financial performance for the second quarter of fiscal 2026, with total revenue reaching $111.7 million, marking a 45% year-over-year increase. The company achieved strong growth in its AI-powered SaaS solutions, leading to a 7% sequential revenue increase and a 57% rise in services revenue. The company also raised its full-year revenue guidance, reflecting its strong market position and operational momentum.

The most recent analyst rating on (AIOT) stock is a Hold with a $5.50 price target. To see the full list of analyst forecasts on Powerfleet stock, see the AIOT Stock Forecast page.

Powerfleet Amends Facilities Agreement with FirstRand Bank

On October 31, 2025, Powerfleet, Inc. and its subsidiaries entered into a First Amendment and Restatement Agreement with FirstRand Bank Limited to amend their existing Facilities Agreement. This amendment extends the maturity date of the Term A Facility, updates interest rates, and aligns financial covenants with the company’s other debt facilities, potentially enhancing financial flexibility and operational stability.

The most recent analyst rating on (AIOT) stock is a Hold with a $5.50 price target. To see the full list of analyst forecasts on Powerfleet stock, see the AIOT Stock Forecast page.

Powerfleet Holds Annual Stockholders Meeting on Governance

On September 16, 2025, Powerfleet, Inc. held its annual meeting of stockholders where key decisions were made. Stockholders elected five directors to serve until the 2026 annual meeting, ratified Deloitte & Touche as the independent public accounting firm for the fiscal year ending March 31, 2026, and approved an advisory resolution on executive compensation. These decisions are expected to influence the company’s governance and financial oversight in the upcoming year.

The most recent analyst rating on (AIOT) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on Powerfleet stock, see the AIOT Stock Forecast page.