Powerfleet Q1 revenue, adjusted EBITDA miss estimates

Powerfleet

10/08/2026 12:16

Overview
US AIoT SaaS mobile asset provider's fiscal Q1 revenue grew 6.4% yr/yr, missing analyst expectations
Adjusted EBITDA for fiscal Q1 rose 6.9% yr/yr but missed analyst estimates
Company added new President & CFO and Chief AI Officer to leadership team

Outlook
Powerfleet sees fiscal 2027 revenue between $468 mln and $473 mln
Company expects fiscal 2027 adjusted EBITDA of $111 mln to $114 mln, margin about 24%
Company anticipates stronger growth in fiscal 2028 as South Africa project ramps up

Result Drivers
SERVICES REVENUE - Co said Q1 revenue growth was driven by 9.1% yr/yr increase in services revenue, which made up 85% of total revenue
SOUTH AFRICAN CONTRACT - Co said near-term demand under South African National Treasury contract accelerated faster than anticipated, with vehicles ready for installation about seven times original expectation
PRODUCTION DELAYS - Co said $3.2 mln of product revenue was delayed by a production constraint late in the quarter, affecting a single product line

Company press release: ID:nPn7kstg4a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Miss
$110.8 mln
$115.73 mln (6 Analysts)
Q1 Net Loss
 
$8.40 mln
 
Q1 Adjusted EBITDA
Miss
$21.50 mln
$25.64 mln (6 Analysts)

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the it services & consulting peer group is "buy"
Wall Street's median 12-month price target for Powerfleet, Inc. is $9.50, about 115.4% above its August 7 closing price of $4.41
The stock recently traded at 45 times the next 12-month earnings vs. a P/E of 49 three months ago

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)