PowerFleet stock soars on upbeat full-year guidance

Published 10/02/2025, 18:26
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Investing.com -- Shares of PowerFleet, Inc. (NASDAQ:AIOT) surged 29% following the company’s issuance of strong full-year guidance and solid third-quarter financial results.

PowerFleet reported a third-quarter earnings per share (EPS) of $0.01, which was below the analyst expectation of $0.04. However, the company’s revenue for the quarter was $106.4 million, surpassing the consensus estimate of $99.43 million and marking a significant 45% rise compared to the same quarter last year. The company’s service revenue, which represented 77% of the total, was a key driver of this increase.

The company’s adjusted EBITDA also saw a substantial boost, climbing 77% to $22 million, contributing to an annual run rate exceeding $85 million—double the adjusted EBITDA of 2024. Gross profit followed suit, with a 44% increase to $58.8 million. Adjusted for the amortization of acquisition-related intangibles, gross profit rose by 57% to $64.2 million. Notably, the combined adjusted gross margin now stands above 60%, with service gross margins nearing 70%.

Looking ahead, PowerFleet anticipates first-quarter 2025 revenue to reach $362.5 million, which is higher than the consensus forecast of $352.5 million. This positive outlook is further supported by the company’s successful post-merger integration, which is proceeding ahead of schedule, setting the stage for double-digit growth in the fiscal year 2026.

Lake Street analyst Jaeson Schmidt commented on the company’s performance, stating, "Co reported upside results and raised FY25 (Mar) guide. Co integration is ahead of schedule, setting up for double-digit growth trajectory in FY26."

The company’s strategic acquisitions, including Fleet Complete and MiX Telematics Ltd (JO:MIXJ), have significantly reshaped its business and expanded market opportunities through scaled channel partnerships. Powerfleet’s direct sales efforts have also secured high-value contracts, and its AI camera solutions have seen a 52% increase in sales volumes year-over-year.

Investors have responded favorably to the news, as the company’s stock price reflects optimism about its growth prospects and the successful execution of its strategic initiatives.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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