Powerfleet Q1 revenue beats estimates; raises FY26 revenue guidance

Overview

• Powerfleet fiscal Q1 revenue rises 38% yr/yr, beating analyst expectations, per LSEG data

• Adjusted EBITDA for fiscal Q1 increases 58%, reflecting margin expansion

• Co raises FY26 revenue guidance to $430-$440 mln, indicating growth confidence

Outlook

• Powerfleet raises FY26 revenue guidance to $430-$440 mln from $420-$440 mln

• Company maintains annual adjusted EBITDA growth guidance of 45% to 55%

• Powerfleet expects adjusted net debt to adj EBITDA ratio to improve from 3.2x as of March 31, 2025, to below 2.25x by Mar 31, 2026

• Company highlights strong demand for AI-driven SaaS solutions

Result Drivers

• SERVICES REVENUE - Services revenue rose 53% yr/yr, now accounting for 83% of total revenue, driven by AI-driven SaaS solutions

• AI VIDEO BOOKINGS - AI Video ARR bookings grew 52% qtr/qtr, reflecting strong market demand through indirect channel partners

• STRATEGIC PARTNERSHIP - New partnership with MTN Group to white label solutions, supporting growth across 16 markets

Key Details

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 $9.00, about 57% above its August 8 closing price of $3.87

• The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 51 three months ago

Press Release: ID:nPn1w0fzta