AIOT · PowerFleet, Inc.

Powerfleet's fiscal 2026 fourth quarter and full-year results demonstrate significant operational and financial momentum. Revenue growth accelerated to 11% in Q4, driven by a 14% increase in high-margin services revenue, which now represents over 81% of total revenue. Gross margin expanded 370 basis points to 56.5%, reflecting the favorable mix shift toward services and improved services margins. The company swung to operating income of $11.0 million from an operating loss of $7.0 million in the prior-year quarter, showcasing the impact of cost synergies and disciplined expense management. Adjusted EBITDA grew 42% to $26.4 million, with margin reaching 23.1%.

For the full year, revenue increased 22% to $443.8 million, at the top of the guidance range. Adjusted EBITDA rose 44% to $97.0 million, with margin expanding to 21.9%. The company generated $30.5 million in operating cash flow, a significant improvement from a $3.3 million use of cash in fiscal 2025. Management highlighted a landmark South African National Treasury contract with an anticipated total contract value of $100 million to $120 million, which will ramp over the next 18 months.

Looking ahead to fiscal 2027, guidance implies continued double-digit revenue growth and further adjusted EBITDA margin expansion to approximately 25%. The company expects to generate $30 million to $35 million in free cash flow. Management commentary emphasizes that revenue and margin contributions from the South Africa deployment will accelerate through year-end, and ongoing cost optimization initiatives will drive sequential margin improvement throughout the year.