#United States #SaaS #AIoT #Powerfleet #Woodcliff Lake

Powerfleet Reports Impressive Financial Results for Q2 FY26

On November 10, 2025, Powerfleet, Inc. released its financial results for the second quarter, which ended on September 30, 2025. The company reported a remarkable total revenue of $111.7 million, reflecting an impressive 45% year-over-year increase. This growth is not only significant in total but also includes a 9% organic increase from last year’s Q2 revenue of $77.0 million.

Strong Service Revenue Growth

The services revenue reached $89.3 million, marking a staggering 57% increase compared to the previous year, with a 12% organic rise from $56.7 million in Q2 FY25. This upswing indicates Powerfleet’s continued commitment to enhancing its service offerings, particularly in its AI-powered SaaS solutions.

Financial Metrics and Management Insights

Powerfleet’s CEO, Steve Towe, emphasized that this quarter was pivotal for the company, noting the 7.3% sequential growth in total revenue along with accelerated adoption of its AIoT platform. He remarked on the double-digit year-over-year organic annual recurring revenue growth, achieved ahead of forecasts due to the success of their safety and compliance solutions. The sequential revenue improvement of 27% also showcases the company’s resilience amidst fluctuating economic conditions.

In addition, Powerfleet has raised its total revenue guidance for FY26 to a range of $435 million to $445 million, up from the previous estimate of $430 million to $440 million. This adjustment reflects the firm’s ongoing confidence in its robust market position and operational execution.

Gross Profit and Adjusted EBITDA

The gross profit for Q2 FY26 stood at $62.6 million, translating to a 56% gross margin, up from 54% in the corresponding quarter last year. Despite an incremental $4.6 million non-cash amortization charge weighing on margins, the growth in areas such as product revenue and improved operational efficiency have bolstered the company's overall financial health.

Adjusted EBITDA increased significantly—71% year-over-year to $24.8 million, with an adjusted EBITDA margin that improved to 22% compared to 19% in both the previous quarter and last year. These metrics underscore effective cost management and improved gross margins which are vital to Powerfleet's ongoing growth strategy.

Operational Challenges and Opportunities

Despite the positive financial results, the company faced some operational challenges, including a net loss attributable to common stockholders amounting to $4.3 million or $0.03 per share, primarily due to elevated interest expenses and non-cash amortization. Yet, compared to a net loss of $1.9 million or $0.02 per share in FY25, this represents proactive management of financial metrics.

Powerfleet's commitment to invest in its Research and Development also remains steadfast, with R&D expenses comprising 4% of total revenue.

Summary and Future Outlook

As Powerfleet continues to expand its footprint in the AIoT industry, the Q2 FY26 results reflect not only strong current performance but also a significant potential for future growth. The company’s innovative SaaS solutions and strategic focus on safety and compliance offer robust foundations for sustained success.

Management plans to discuss these results and give future business updates during a conference call scheduled for November 10, 2025, at 8:30 a.m. ET. This session will provide investors an opportunity to delve deeper into the financial performance and strategic plans moving forward.

In conclusion, Powerfleet's impressive Q2 results highlight its existing strengths, supportive market dynamics, and the potential for significant value creation in the coming quarters. As the company aims for continued operational excellence, stakeholders can expect Powerfleet to remain a forefront player in driving innovation within the mobile asset management sector.