Powerfleet Q4 revenue beats estimates as services drive growth

Powerfleet

15/06/2026 11:13

Overview
US AIoT SaaS provider's fiscal Q4 revenue rose 11%, beating analyst expectations
Adjusted EBITDA for fiscal Q4 slightly beat consensus, up 42% year-over-year
Company signed $100-120 mln South African government contract in the quarter, boosting future revenue pipeline

Outlook
Powerfleet expects fiscal 2027 revenue of $485 mln to $490 mln, up about 10% year-over-year
Company sees fiscal 2027 adjusted EBITDA of $122 mln to $125 mln, margin about 25%
Powerfleet expects fiscal 2027 free cash flow of $30 mln to $35 mln

Result Drivers
SERVICES REVENUE GROWTH - Q4 revenue was driven primarily by 14% growth in high-margin services revenue, which made up over 81% of total revenue
GROSS MARGIN EXPANSION - Gross margin increased to 56.5%, reflecting a higher mix of services revenue and improved services margins
COST SYNERGIES AND EXPENSE DISCIPLINE - Realized cost synergies and disciplined operating expense management contributed to improved profitability

Company press release: ID:nPn8vpm1ba

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$114.50 mln
$113.06 mln (6 Analysts)
Q4 EPS
 
-$0.02
 
Q4 Net Income
 
-$2.70 mln
 
Q4 Adjusted EBITDA
Slight Beat*
$26.40 mln
$26.18 mln (6 Analysts)
Q4 Gross Profit
 
$64.70 mln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

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 $10.00, about 137% above its June 12 closing price of $4.22
The stock recently traded at 64 times the next 12-month earnings vs. a P/E of 74 three months ago

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.)