Powerfleet Reports Annual FY2025 Results: A Breakout Year of Strategic Transformation and Scaled Growth
Total revenue growth for fiscal 2025 of 26% to $362.5 million, with ~75% SaaS recurring revenue.
Annual adjusted EBITDA climbed 65% year-over-year to $71 million, with adjusted EBITDA margin expanding 500 basis points to 20%.
Q4 total revenue increased 42% year-over-year to $103.6 million, with Service revenue increasing 49% to $81.8m, while adjusted EBITDA grew 84% to $20.4 million.
Q4 total adjusted gross margin exceeded 60%, compared to 53% in the prior year.
Extended Conference Call to be Held at 8:30am ET; Slide Presentation Accessible Here
WOODCLIFF LAKE, N.J., June 16, 2025 /PRNewswire/ -- Powerfleet, Inc. (NASDAQ:AIOT) reported its financial results for the fiscal year and the fourth quarter ended March 31, 2025.
MANAGEMENT COMMENTARY
"Fiscal 2025 was a true milestone year for Powerfleet, a period in which we executed a bold reinvention strategy integrating two major acquisitions in just 12 months, achieved our organic growth and profitability metrics, and established Powerfleet as a global AIoT SaaS leader, with the Unity platform at the center of our customer value creation strategy," said Steve Towe, Powerfleet CEO.
"As we enter fiscal 2026, we do so as a stronger, more focused company, by proactively eliminating low-quality and non-strategic revenue from the acquired businesses. Our go-forward, high-quality revenue streams delivered strong organic growth year-over-year in FY25, with AI video growing more than 20% and in-warehouse safety solutions growing 17%. While we remain mindful of macroeconomic headwinds, we are confident in expanding our growth in FY26, particularly in the second half, driven by a strong, expanding pipeline and supported by the resilience of our international operations which grew organically by 13% in FY25."
Towe added, "With our Unity data highway as the central engine, we're ready to scale faster, deliver greater value to customers, and continue unlocking the full potential of the company within the dynamic market we serve."
FISCAL YEAR 2025 OPERATIONAL AND FINANCIAL HIGHLIGHTS
Powerfleet delivered an accelerated transformation of the business in FY25 - executing an aggressive M&A strategy and unlocking the foundation for scalable, high-margin growth.
Full Year Financial Performance Highlights: Pro Forma Basis Reflecting FY'24 MiX Combination Comparatives
Total revenue increased 26% to $362.5 million, with ~75% derived from high-margin, recurring SaaS revenue - underscoring the successful pivot to a subscription-first business model.
Adjusted EBITDA increased 65% year-over-year to $71 million, with adjusted EBITDA margins expanding by 5% to 20%, reflecting disciplined execution, cost synergy realization and operating leverage.
The combined business achieved $16 million in annualized cost synergies during FY25, with $11 million flowing through to in-year adjusted EBITDA performance.
Operational Scale and Reach
The subscriber base expanded 4x to 2.8 million, positioning Powerfleet among the top three global AIoT SaaS providers.
Customer base multiplied to 48,000, including over half the Fortune 500 - across 8 verticals primed for cross-sell and upsell opportunities.
Sales coverage doubled across North America, Europe, and Australasia. Indirect channel network has tripled to over 320 strategic alliances, including leading global telcos, vehicle and asset OEMs, and insurance partners.
Go To Market Momentum
600+ midmarket and enterprise customer logos were added in FY25, across key verticals such as logistics, food and beverage, automotive, and industrials.
Accelerated double-digit organic growth in key strategic solution sets of AI video and in-warehouse safety, alongside 13% year on year growth in international operations.
Sales efforts continued to drive high-value wins, including a major Q4 Unity AI video safety partnership win with a large North American student transportation company managing 9,000 drivers across 34 states,
Exiting the year with 50%+ of all new sales - high value AI video and in-warehouse safety and compliance solutions, representing a significant global sales motion shift year on year.
Technology and Innovation
Unity recognized as the #1 global solution and platform portfolio by ABI Research, reflecting leadership in platform depth, AI maturity, and usability.
Quadrupled Unity Data Highway-dedicated engineering headcount to over 400 full time employees, fueling platform innovation
Gained momentum and sales traction with device-agnostic, single pane of glass solution
FOURTH QUARTER 2025 FINANCIAL RESULTS: PRO FORMA BASIS REFLECTING FY'24 MIX COMBINATION COMPARATIVES
Total revenue grew 42% year-over-year to $103.6 million, driven by the Fleet Complete acquisition and AI video solutions. Service revenue rose 49% to $81.8 million while product revenue grew 23% to $21.9 million,
Gross profit increased 42% to $54.8 million. On an adjusted basis, excluding the amortization of acquisition-related intangibles and post-acquisition inventory rationalization, gross profit rose by $24.0 million, or 62%, to $62.6 million. Adjusted service gross margin expanded significantly, increasing by 7.6 percentage points to 68.8%, after excluding $5.2 million in non-cash amortization.
Adjusted product gross margin also improved, rising to 28.7% from 27.3% in the prior year, after excluding $2.6 million in acquisition-related inventory write-offs. As a result, total adjusted gross margin exceeded 60%, compared to 53.0% in the prior year.
Operating expenses totaled $61.7 million, including $7.5 million in one-time transaction, integration, and restructuring costs, consistent with the level of one-time expenses incurred in the prior year. Excluding one-time items, adjusted operating expenses were $54.2 million, up from $37.6 million, with the increase primarily driven by the addition of Fleet Complete.
Adjusted EBITDA increased 84% to $20.4 million, up from $11.1 million in the prior year, reflecting contributions from the Fleet Complete acquisition, organic growth, gross margin expansion and cost synergies. Net loss attributable to common stockholders was $0.09 per share, compared to $0.19 per share in the prior year, reflecting improved financial performance and an increase in shares outstanding. After adjusting for one-time expenses and amortization of acquisition-related intangibles, adjusted net income was $0.02 per share, up from a loss of $0.01 per share in the prior year.
Net debt at quarter end was $225.0 million, consisting of $48.8 million in cash and $273.8 million total debt. Net debt, adjusted for $3.6 million in unsettled transaction costs, was $228.6 million, outperforming our year-end guidance of approximately $235 million by $6.4 million.
INVESTOR CONFERENCE CALL AND BUSINESS UPDATE
Powerfleet management will hold a conference call on Monday, June 16, 2025, at 8:30 a.m. Eastern time (5:30 a.m. Pacific time) to discuss results for the fourth quarter and fiscal year ended March 31, 2025, and provide a business update.
Date: Monday, June 16, 2025Time: 8:30 a.m. Eastern time (5:30 a.m. Pacific time)Toll Free: 888-506-0062International: 973-528-0011Participant Access Code: 539753The conference call will be broadcast simultaneously and available for replay here. Additionally, both the webcast and accompanying slide presentation will be available via the investor section of Powerfleet's website at ir.powerfleet.com.
NON-GAAP FINANCIAL MEASURES
To supplement its financial statements presented in accordance with Generally Accepted Accounting Principles (GAAP), Powerfleet provides certain non-GAAP measures of financial performance. These non-GAAP measures include adjusted EBITDA, adjusted gross margin, adjusted gross profit, adjusted service margin, adjusted product margin, adjusted operating expenses, adjusted net income per share and net debt. Reference to these non-GAAP measures should be considered in addition to results prepared under current accounting standards, but are not a substitute for, or superior to, GAAP results. These non-GAAP measures are provided to enhance investors' overall understanding of Powerfleet's current financial performance. Specifically, Powerfleet believes the non-GAAP measures provide useful information to both management and investors by excluding certain expenses, gains and losses and fluctuations in currency rates that may not be indicative of its core operating results and business outlook. These non-GAAP measures are not measures of financial performance or liquidity under GAAP and, accordingly, should not be considered as an alternative to net income, gross margin, gross profit, total debt, cash flow from operating activities or earnings per share as an indicator of operating performance or liquidity. Because Powerfleet's method for calculating the non-GAAP measures may differ from other companies' methods, the non-GAAP measures may not be comparable to similarly titled measures reported by other companies. Reconciliation of all non-GAAP measures included in this press release to the most directly comparable GAAP measures can be found in the financial tables included in this press release.
ABOUT POWERFLEET
Powerfleet (NASDAQ:AIOT, JSE: PWR)) is a global leader in the artificial intelligence of things (AIoT) software-as-a-service (SaaS) mobile asset industry. With more than 30 years of experience, Powerfleet unifies business operations through the ingestion, harmonization, and integration of data, irrespective of source, and delivers actionable insights to help companies save lives, time, and money. Powerfleet's ethos transcends our data ecosystem and commitment to innovation; our people-centric approach empowers our customers to realize impactful and sustained business improvement. The company is headquartered in New Jersey, United States, with offices around the globe. Explore more at www.powerfleet.com. Powerfleet has a primary listing on The Nasdaq Global Market and a secondary listing on the Main Board of the Johannesburg Stock Exchange (JSE).
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of federal securities laws. Powerfleet's actual results may differ from its expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Forward-looking statements may be identified by words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "continue," and similar expressions.
These forward-looking statements include, without limitation, our expectations with respect to our beliefs, plans, goals, objectives, expectations, anticipations, assumptions, estimates, intentions and future performance, as well as anticipated financial impacts of our transactions with MiX Telematics and Fleet Complete. Forward-looking statements involve significant known and unknown risks, uncertainties and other factors, which may cause our actual results, performance or achievements to be materially different from the future results, performance or achievements expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be forward-looking statements. Most of these factors are outside our control and are difficult to predict. The risks and uncertainties referred to above include, but are not limited to, risks related to: (i) future global economic and business conditions, including the effect of conflicts in certain geographies and the potential imposition of tariffs; (ii) integration of our, MiX Telematics' and Fleet Complete's businesses and the ability to recognize the anticipated synergies and benefits of the transactions with MiX Telematics and Fleet Complete; (iii) the commercial, financial, reputational and regulatory risks to our business that may arise as a consequence of operating across multiple geographies; (iv) disruptions in our global supply chain or failures by subcontractors; (v) the loss of any of our key customers or reduction in the purchase of our products by any such customers; (vi) reliance on third-party channel partner relationships; (vii) our inability to adequately protect our intellectual property; (viii) changes in technology or products, which may be more difficult or costly, or less effective, than anticipated; (ix) potential breaches of our information technology systems; (x) our ability to obtain additional capital to fund our operations; and (xi) such other factors as are set forth in the periodic reports filed by us with the Securities and Exchange Commission (SEC), including but not limited to those described under the heading "Risk Factors" in our annual reports on Form 10-K, quarterly reports on Form 10-Q and any other filings made with the SEC from time to time, which are available via the SEC's website at http://www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove to be incorrect, actual results may vary materially from those indicated or anticipated by these forward-looking statements. Therefore, you should not rely on any of these forward-looking statements.
The forward-looking statements included in this press release are made only as of the date of this press release, and except as otherwise required by applicable securities law, we assume no obligation, nor do we intend to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances.
Powerfleet Investor ContactsCarolyn Capaccio and Jody BurfeningLHA Investor
Powerfleet Media ContactJonathan 121 717-5360
POWERFLEET, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended March 31,
Year Ended March 31,
2024
2025
2024
2025
Pro Forma Combined
Consolidated
Pro Forma Combined
Consolidated
Revenues:
Products
$ 17,793
$ 21,866
$ 67,665
$ 85,584
Services
55,029
81,772
219,239
276,931
Total revenues
72,822
103,638
286,904
362,515
Cost of revenues:
Cost of products
12,935
18,152
48,316
61,961
Cost of services
21,324
30,723
79,636
106,017
Total cost of revenues
34,259
48,875
127,952
167,978
Gross profit
38,563
54,763
158,952
194,537
Operating expenses:
Selling, general and administrative expenses
41,366
56,839
151,839
204,361
Research and development expenses
3,733
4,904
14,793
16,061
Total operating expenses
45,099
61,743
166,632
220,422
Loss from operations
(6,536)
(6,980)
(7,680)
(25,885)
Interest income
627
95
1,480
926
Interest expense
(1,410)
(5,655)
(4,521)
(20,330)
Bargain purchase - Movingdots
—
—
1,800
—
Other expense, net
—
(202)
(266)
(1,163)
Net loss before income taxes
(7,319)
(12,742)
(9,187)
(46,452)
Income tax (expense) benefit
(1,917)
304
(7,014)
(4,517)
Net loss before non-controlling interest
(9,236)
(12,438)
(16,201)
(50,969)
Non-controlling interest
(12)
(1)
(50)
(18)
Net loss
(9,248)
(12,439)
(16,251)
(50,987)
Accretion of preferred stock
(9,996)
—
(15,480)
—
Preferred stock dividend
(1,129)
—
(4,514)
(25)
Net loss attributable to common stockholders
$ (20,373)
$ (12,439)
$ (36,245)
$ (51,012)
Net loss per share attributable to common stockholders - basic and diluted
$ (0.19)
$ (0.09)
$ (0.34)
$ (0.43)
Weighted average common shares outstanding - basic and diluted
106,894
132,793
106,894
119,877
POWERFLEET, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
March 31, 2024
March 31, 2025
Pro Forma
Combined
Consolidated
ASSETS
Current assets:
Cash and cash equivalents
$ 51,091
$ 44,392
Restricted cash
86,104
4,396
Accounts receivables, net
55,008
78,623
Inventory, net
25,800
18,350
Prepaid expenses and other current assets
17,826
23,319
Total current assets
235,829
169,080
Fixed assets, net
48,306
58,011
Goodwill
121,713
383,146
Intangible assets, net
40,444
258,582
Right-of-use asset
11,222
12,339
Severance payable fund
3,796
3,796
Deferred tax asset
3,874
3,934
Other assets
19,090
21,183
Total assets
$ 484,274
$ 910,071
LIABILITIES
Current liabilities:
Short-term bank debt and current maturities of long-term debt
$ 22,109
$ 41,632
Accounts payable
27,174
41,599
Accrued expenses and other current liabilities
33,589
45,327
Deferred revenue - current
12,236
17,375
Lease liability - current
2,648
5,076
Total current liabilities
97,756
151,009
Long-term debt - less current maturities
113,810
232,160
Deferred revenue - less current portion
4,892
5,197
Lease liability - less current portion
8,773
8,191
Accrued severance payable
4,597
6,039
Deferred tax liability
18,669
57,712
Other long-term liabilities
2,980
3,021
Total liabilities
251,477
463,329
Convertible redeemable preferred stock: Series A
90,273
—
STOCKHOLDERS' EQUITY
Preferred stock
—
—
Common stock
63,842
1,343
Additional paid-in capital
200,218
671,400
Accumulated deficit
(78,516)
(205,783)
Accumulated other comprehensive loss
(17,133)
(8,850)
Treasury stock
(25,997)
(11,518)
Total stockholders' equity
142,414
446,592
Non-controlling interest
110
150
Total equity
142,524
446,742
Total liabilities, convertible redeemable preferred stock,and stockholders' equity
$ 484,274
$ 910,071
POWERFLEET, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Year Ended March 31,
2024
2025
Pro Forma Combined
Consolidated
Cash flows from operating activities
Net loss
$ (16,251)
$ (50,987)
Adjustments to reconcile net loss to cash provided by (used in) operatingactivities:
Non-controlling interest
50
18
Gain on bargain purchase
(1,800)
—
Inventory write-downs
2,172
4,480
Stock-based compensation expense
5,214
9,362
Depreciation and amortization
29,548
47,494
Impairment of long-lived assets
139
—
Right-of-use assets, non-cash lease expense
2,919
5,007
Derivative mark-to-market adjustment
—
(504)
Bad debts expense
7,534
9,418
Deferred income taxes
3,235
(4,872)
Shares issued for transaction bonuses
—
889
Lease termination and modification losses
—
295
Other non-cash items
6,338
1,061
Changes in operating assets and liabilities:
Accounts receivables
(9,298)
(14,048)
Inventory
(601)
5,729
Prepaid expenses and other current assets
(1,078)
5,474
Deferred costs
(8,514)
(8,437)
Deferred revenue
(180)
1,748
Accounts payable and accrued expenses
9,731
(12,162)
Lease liabilities
(2,851)
(4,558)
Accrued severance payable
15
1,248
Net cash provided by (used in) operating activities
26,322
(3,345)
Cash flows from investing activities:
Acquisition, net of cash assumed
—
(137,112)
Proceeds from sale of fixed assets
—
12
Capitalized software development costs
(9,512)
(13,782)
Capital expenditures
(20,709)
(20,008)
Deferred consideration paid
—
—
Repayment of loan advanced to external parties
—
294
Net cash used in investing activities
(30,221)
(170,596)
Cash flows from financing activities:
Repayment of long-term debt
(14,116)
(2,642)
Short-term bank debt, net
(158)
19,551
Deferred consideration paid
(1,955)
—
Purchase of treasury stock upon vesting of restricted stock
(674)
(2,836)
Repayment of financing lease
(129)
—
Payment of preferred stock dividend and redemption of preferred stock
(3,385)
(90,298)
Proceeds from private placement, net
—
66,459
Proceeds from long-term debt
115,000
125,000
Payment of long-term debt costs
(1,081)
(1,410)
Proceeds from exercise of stock options, net
36
1,898
Cash paid on dividends to affiliates
(5,320)
—
Net cash provided by financing activities
88,218
115,722
Effect of foreign exchange rate changes on cash and cash equivalents
(2,870)
(2,657)
