Powerfleet (AIOT) AI Stock Analysis

• Market Cap: $663.21M
• Dividend Yield: N/A
• Average Volume (3M): 1.42M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.47
• Revenue Growth: 119.36%
• EPS Growth: 86.58%
• Country: US
• Employees: 1,954
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): -0.08
• Shares Outstanding: 133,443,300
• 10 Day Avg. Volume: 1,323,738
• 30 Day Avg. Volume: 1,423,489
• PEG Ratio: -0.02
• Price to Book (P/B): 1.47
• Price to Sales (P/S): 1.82
• P/FCF Ratio: -28.18
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 2.10
• Enterprise Value/Gross Profit: 3.89
• Enterprise Value/Ebitda: -84.88
• 1Y Price Target: $10.00
• Price Target Upside: 101.21% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 54 Neutral
• Price Target: $5.50 ▲(10.66% Upside)

Powerfleet's overall score is driven by strong service revenue growth and strategic progress in SaaS, as highlighted in the earnings call. However, financial performance issues, particularly in profitability and cash flow, and valuation concerns due to a negative P/E ratio, weigh down the score.

Positive Factors

Service Revenue Growth

The strong growth in service revenue highlights Powerfleet's successful transition to a SaaS model, ensuring recurring revenue and enhancing long-term financial stability.

Strategic Partnerships

Strategic partnerships with major players like MTN expand market reach and enhance product offerings, strengthening Powerfleet's competitive position.

Operational Efficiency

Significant cost savings improve operational efficiency, boosting profitability and providing resources for reinvestment into growth initiatives.

Negative Factors

Profitability Challenges

Negative profit margins indicate ongoing challenges in achieving profitability, which could hinder long-term financial health and investor confidence.

Cash Flow Issues

Negative cash flow growth suggests liquidity issues, limiting the company's ability to invest in growth opportunities and manage financial obligations.

Product Revenue Decline

Declining product revenue due to tariffs and economic uncertainties can affect overall revenue diversification and growth prospects.

Powerfleet Business Overview & Revenue Model

Company Description

PowerFleet, Inc. provides wireless Internet-of-Things asset management solutions in the United States, Israel, and internationally. The company offers real-time intelligence for organizations to capture IoT data from various types of assets with devices and sensors to increase efficiencies, and improve safety and security, as well as increase their profitability in easy-to-understand reports, dashboards, and real-time alerts; and application programming interfaces for additional integrations and development to boost other enterprise management systems and third-party applications. It also provides hosting, maintenance, and support and consulting services; and Software as a Service, including system monitoring, help desk technical support, escalation procedure development, routine diagnostic data analysis, and software updates services. The company offers its products under the PowerFleet, Pointer, and Cellocator brands. It sells its products to commercial and government sectors in manufacturing, automotive manufacturing, wholesale and retail, food and grocery distribution, pharmaceutical and medical distribution, construction, mining, utilities, heavy industry, aerospace and defense, homeland security, and vehicle rental, logistics, shipping, and freight transportation markets, as well as through indirect sales channels, such as original equipment manufacturers, vehicle importers, distributors, and industrial equipment dealers. The company was formerly known as I.D. Systems, Inc. PowerFleet, Inc. was incorporated in 1993 and is headquartered in Woodcliff Lake, New Jersey.

How the Company Makes Money

PowerFleet generates revenue primarily through subscription-based services, where customers pay for access to its IoT platforms and software solutions. The key revenue streams include monthly or annual fees for the use of its fleet management software, telematics devices, and data analytics services. Additionally, the company benefits from hardware sales, as it provides GPS tracking devices and sensors that are installed on vehicles and assets. Strategic partnerships with telecommunications companies and software providers also enhance its offerings and expand its market reach, contributing significantly to its earnings.

Powerfleet Financial Statement Overview

Summary

Powerfleet shows revenue growth but struggles with profitability and cash flow. Positive aspects include a low debt-to-equity ratio, but negative margins and cash flow issues pose risks.

Income Statement

Powerfleet's income statement shows a mixed performance. The company has a positive revenue growth rate of 7.91% TTM, indicating a growing top line. However, the net profit margin is negative at -9.95% TTM, reflecting ongoing profitability challenges. The gross profit margin is relatively healthy at 54.03% TTM, suggesting efficient cost management in production. The negative EBIT and EBITDA margins indicate operational inefficiencies and potential cost structure issues.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.11 TTM, indicating conservative leverage. However, the return on equity is negative at -8.57% TTM, pointing to challenges in generating returns for shareholders. The equity ratio is strong, suggesting a solid capital structure with equity financing.

Cash Flow

Cash flow analysis reveals concerns with negative free cash flow growth of -33.49% TTM, indicating potential liquidity issues. The operating cash flow to net income ratio is low at 0.04 TTM, suggesting limited cash generation relative to net income. The free cash flow to net income ratio is negative, highlighting cash flow challenges.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2023	Dec 2023
Income Statement
Total Revenue	391.21M	362.51M	133.74M	135.16M	135.16M	135.16M
Gross Profit	211.37M	194.54M	67.08M	64.17M	64.17M	64.17M
EBITDA	-9.69M	-25.89M	-75.00K	563.00K	563.00K	563.00K
Net Income	-38.91M	-51.01M	-5.67M	-7.00M	-7.00M	-7.00M
Balance Sheet
Total Assets	930.78M	910.07M	217.75M	217.44M	217.44M	217.44M
Cash, Cash Equivalents and Short-Term Investments	31.20M	48.79M	19.33M	17.68M	17.68M	17.68M
Total Debt	50.38M	287.06M	27.50M	29.78M	29.78M	29.78M
Total Liabilities	469.90M	463.33M	79.83M	77.06M	77.06M	77.06M
Stockholders Equity	460.88M	446.59M	137.82M	140.30M	140.30M	140.30M
Cash Flow
Free Cash Flow	-19.48M	-23.35M	-2.70M	-4.98M	-4.98M	-4.98M
Operating Cash Flow	6.02M	-3.35M	4.40M	757.00K	757.00K	757.00K
Investing Cash Flow	-206.88M	-170.60M	1.53M	-5.84M	-5.84M	-5.84M
Financing Cash Flow	87.50M	115.72M	-3.71M	-282.00K	-282.00K	-282.00K

Powerfleet Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.97
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AIOT, the sentiment is Negative. The current price of 4.97 is below the 20-day moving average (MA) of 5.26, below the 50-day MA of 5.12, and below the 200-day MA of 5.27, indicating a bearish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 43.44 is Neutral, neither overbought nor oversold. The STOCH value of 19.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AIOT.

Powerfleet Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ITRN	―	$759.93M	13.79	29.11%	4.92%	3.30%	9.66%
GILT	―	$920.13M	36.51	7.49%	―	19.67%	12.32%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CLFD	―	$498.54M	2,006.11	0.07%	―	5.72%	―
AIOT	―	$663.21M	-16.76	-9.14%	―	119.36%	86.58%
AVNW	―	$333.50M	286.26	0.52%	―	6.50%	-88.62%
ONDS	―	$2.31B	―	-81.20%	―	75.16%	28.13%

Powerfleet Corporate Events

Powerfleet Holds Annual Stockholders Meeting on Governance

On September 16, 2025, Powerfleet, Inc. held its annual meeting of stockholders where key decisions were made. Stockholders elected five directors to serve until the 2026 annual meeting, ratified Deloitte & Touche as the independent public accounting firm for the fiscal year ending March 31, 2026, and approved an advisory resolution on executive compensation. These decisions are expected to influence the company’s governance and financial oversight in the upcoming year.

The most recent analyst rating on (AIOT) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on Powerfleet stock, see the AIOT Stock Forecast page.

Powerfleet Reports Strong Q1 FY2026 Growth

Powerfleet, Inc. is a global leader in the artificial intelligence of things (AIoT) software-as-a-service (SaaS) mobile asset industry, providing data-driven insights to enhance business operations and safety. In its latest earnings report for the first quarter of fiscal year 2026, Powerfleet highlighted a robust 6% sequential growth in services revenue, contributing to a total revenue increase of 38% year-over-year. This growth was primarily driven by the company’s strategic shift towards high-margin, recurring revenue streams. Key financial metrics included a 58% rise in adjusted EBITDA to $21.6 million and a significant expansion in gross profit, which increased by $16.8 million to $56.5 million. The company’s EBITDA expansion program has already achieved 60% of its annual savings target. Powerfleet also raised its full-year revenue guidance to $430-$440 million, reflecting confidence in its growth trajectory. Looking ahead, Powerfleet’s management remains optimistic about continued profitable growth, driven by its AI-driven SaaS solutions and strategic partnerships, positioning the company well for future success.

PowerFleet’s Earnings Call Highlights Strong Growth and Strategic Partnerships

PowerFleet, Inc. recently held its earnings call, showcasing a generally positive sentiment with strong growth in services revenue and successful strategic partnerships. The company highlighted its promising outlook, driven by momentum in SaaS and AI video bookings, despite facing challenges such as tariff impacts on product margins and onetime restructuring costs.

Powerfleet Reports Strong Q1 2026 Financial Results

On August 11, 2025, Powerfleet reported its financial results for the first quarter of fiscal year 2026, showcasing a 38% year-over-year increase in total revenue to $104.1 million, driven by strong services revenue growth. The company’s strategic focus on high-margin SaaS solutions and successful integration of acquisitions contributed to a 58% rise in adjusted EBITDA, reaching $21.6 million. Powerfleet’s ongoing efforts in expanding its EBITDA and improving operational efficiencies have positioned it well for future growth, as evidenced by its increased revenue guidance for the full year 2026.

The most recent analyst rating on (AIOT) stock is a Buy with a $10.00 price target. To see the full list of analyst forecasts on Powerfleet stock, see the AIOT Stock Forecast page.