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Powerfleet (3LO) Q2 2027 Earnings Report

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DE:3LO Q2 2027 EPS Results

Actual EPS
-EUR 0.05
Consensus EPS
-EUR 0.02
Beat/Miss
Missed by -EUR 0.02
One Year Ago EPS
-EUR 0.03

DE:3LO Q2 2027 Revenue Results

Actual Revenue
EUR 104.98M
Expected Revenue
EUR 104.22M
Beat/Miss
Beat by +EUR 756.56K
YoY Revenue Growth
+3.62%

Earnings Announcement Details

Quarter
Q2 2027
Date
11/09/2026
Time
Before Open
Conference Call
Monday, November 9, 2026
DE:3LO Upcoming Earnings

Powerfleet's next earnings date is estimated for February 15, 2027, based on past reporting schedules.

Q2 2027 Earnings Call Audio

DE:3LO Q2 2027 Earnings Call
0:00 / 0:00

Q2 2027 Earnings Slide Deck

Q2 2027 Earnings Call Summary

Q2 2027
Earnings Call Date:Nov 09, 2026|% Change Since:-5.50%|
Earnings Call Sentiment|Positive

The call was strongly positive. Management reported record revenue, sequential EBITDA and margin improvement, a recovery in manufacturing, South African contract progress ahead of schedule, strong momentum across On-Site, AI Video and IoT & Connected Services, new recurring-revenue products and reaffirmed fiscal 2027 guidance. The main negatives were the continuing net loss, lower year-over-year gross margin, reduced first-half operating cash flow, near-term product-mix pressure, foreign-exchange exposure and the gradual wind-down of deemphasized revenue.

Company Guidance

Powerfleet affirmed fiscal 2027 guidance of $468 million to $473 million of revenue and $111 million to $114 million of adjusted EBITDA, expects to exit the fourth quarter at an annualized revenue run rate of $495 million at a 27% adjusted EBITDA margin, and expects fiscal year capital expenditures of approximately $52 million, cash interest of approximately $27 million, and cash taxes of approximately $10 million; guidance assumes South Africa mandates continue on or ahead of their current trajectory, deemphasized operations continue to wind down, product revenue is strong in Q3, and services mix increases in Q4 as activations flow through. The company expects strong product revenue in the third quarter, Q3 margins to reflect that mix temporarily, margins to remain the same through the next 6 months, and some improvement next year, while expecting more operating leverage in the second half of this year and into next year and year-over-year growth in the double-digit area for recurring services as it enters 2028.

  • Record Quarterly Revenue and Improved EBITDASecond-quarter revenue reached a record $115.7 million, representing 4.4% sequential growth and approximately 4% year-over-year growth. Adjusted EBITDA was $24.9 million, up 16% sequentially, while adjusted EBITDA margin improved to 21.5% from 19.4% in Q1; the company also presented the margin as 22% in its financial review.
  • Recurring Services Revenue Continued to GrowServices revenue was $95.2 million, up 7% year-over-year and representing 82% of total revenue. Recurring services revenue was $91.3 million, also up 7%, driven by the Unity platform. For the first half of the fiscal year, services revenue represented 84% of total revenue, compared with 81% a year earlier.
  • Manufacturing Recovery and Product Revenue ReboundAfter resolving the component incompatibility issue that affected one product line in Q1, the company shipped a substantial majority of deferred orders. Product revenue increased 25% sequentially to $20.5 million, with the remaining portion of the recovery expected in Q3.
  • South African National Treasury Program Ahead of ScheduleMandated installations under the South African National Treasury program exceeded 94,000, ahead of the prior target of 80,000 to 90,000 by the end of Q4. More than 40,000 units were in aggressive deployment with the South African police, and 18,250 installations had been completed as of the call.
  • Proposed Device Financing Facility to Support GrowthPowerfleet agreed terms for a proposed Rand Merchant Bank device financing facility of up to ZAR 560 million, or approximately $34 million, primarily to support the South African National Treasury rollout. Management expects the Hardware-as-a-Service structure to allow deployment costs to scale with demand, improve working capital efficiency, support operating cash flow and strengthen free cash flow conversion.
  • On-Site Business Delivered Strong GrowthTrailing 12-month industrial revenue grew 23%, services revenue grew 29% and one-off services revenue grew 42%. Over the last 12 months, 73 Fortune 500 and Global 500 companies adopted On-Site solutions across 263 sites. AI safety represented 30% of sales, with average tickets 10x larger than conventional orders, and the platform expanded into 10 additional asset types and environments, including cranes, ports, mining, airports and transit depots.
  • Large Enterprise On-Site ExpansionA leading global manufacturer generated more than $12.5 million in total contract value from 84 orders across 36 sites in the U.S., U.K. and Mexico. A global beverage company generated more than $11 million in total contract value through 16 orders and expansion to eight new sites. A global automaker placed $2 million of orders covering 142 orders across 33 plants and five countries.
  • AI Video Commercial MomentumOver the trailing 12 months, AI Video bookings ARR grew 32%, pipeline build grew 36% and the North American video subscriber base expanded 30%. AI Video grew 35% year-over-year in the first half of fiscal 2027, while 50% of total year-over-year growth came from existing customers adopting additional capabilities. The company also secured 209 deals from Fortune and Global 500 customers, whose average orders were 3.6x larger than those from the rest of the customer base.
  • AI Video Enterprise and Channel WinsAI Video contracts included $1 million of total contract value with a global top-50 integrated energy company, $1 million with a Global 500 food and support services group and $1 million with a Fortune 500 vehicle rental company. The high-quality VisionAI pipeline increased 92% year-over-year, sellers generated 3,918 opportunities in Q2—the highest quarterly level in the last eight quarters—and selected channel metrics included 24% quarter-on-quarter growth in won ARR, 25% quarter-on-quarter pipeline ARR growth and 19% quarter-on-quarter growth in won deals.
  • IoT and Connected Services GrowthOver the trailing 12 months, IoT & Connected Services revenue grew 23%, recurring revenue grew 24% and one-off services revenue grew 49%. Growth opportunities cited included fleet diagnostics and predictive maintenance, digital theft protection and connected digital tachograph capabilities.
  • New Unity Foresight OfferingPowerfleet announced Unity Foresight, an AI-powered operational intelligence offering designed to provide operational visibility, risk signals, predictions and recommended actions involving issues such as collisions, congestion and equipment failures. Management said the offering is intended to expand value per asset, attract new customer groups and create incremental recurring revenue over time.
  • New Unity Asset Intelligence OfferingUnity Asset Intelligence expands the platform beyond vehicles to pallets, containers, trailers, generators, equipment, people, mobile industrial assets and port and terminal equipment. The company estimates more than 100 million additional assets and over $30 billion in additional addressable opportunity globally. Management said the majority of revenue from the new products will be recurring, with a small fee for asset tagging and recurring software revenue for the intelligence capabilities.
  • Operating Leverage and Cost DisciplineOperating expenses, excluding acquisition, integration, restructuring and litigation costs, declined to $60.5 million from $60.9 million in Q1. SG&A was 44% of revenue, an improvement of 240 basis points from a year earlier, despite a $3 million increase in sales and marketing spending. Management said additional operating leverage is expected from continued simplification, particularly in the back office and G&A.
  • Affirmed Fiscal 2027 GuidanceThe company reaffirmed fiscal 2027 revenue guidance of $468 million to $473 million and adjusted EBITDA guidance of $111 million to $114 million. It expects to exit Q4 at an annualized revenue run rate of $495 million and a 27% adjusted EBITDA margin. Fiscal-year capital expenditures are expected to be approximately $52 million, cash interest approximately $27 million and cash taxes approximately $10 million.
  • Improved Profit from Operations and Lower Interest ExpenseProfit from operations was $1.4 million, more than five times the first-quarter level. Interest expense was $6.2 million, down 11% year-over-year.
  • Balance Sheet and Leverage PositionPowerfleet ended the quarter with $26.8 million of cash and cash equivalents, $3 million of restricted cash and $19.1 million of available borrowing capacity under revolving credit facilities. Net leverage was 2.65, and management expects the device financing facility and higher adjusted EBITDA to improve free cash flow materially in the second half.
  • Enterprise and Channel Strategy Gaining TractionManagement said the company is landing six-figure enterprise deals and expanding them into seven- and sometimes eight-figure deals. Pipeline quality, conversion and win rates were described as improving, with particular opportunity in automotive, food and beverage, manufacturing and industrial verticals, as well as public-sector fleet channels.
  • Expected Recurring Revenue Growth into Fiscal 2028Management expects recurring services revenue to continue growing in the double-digit area into fiscal 2028, supported by On-Site, AI Video, IoT solutions, Unity Foresight, Unity Asset Intelligence and the South African contract. The company expects the $495 million annualized revenue run rate to provide a baseline before the South African contract's $27 million of ARR is included.

DE:3LO Earnings History

DE:3LO earnings history
Report DateFiscal QuarterForecast / EPSLast Year's EPSEPS YoY ChangePress Release
Feb 15, 20272027 (Q3)0.00--0.03――
Nov 09, 20262027 (Q2)-0.02-0.05-0.03-66.67% (-0.02)
Aug 10, 20262027 (Q1)-0.01-0.05-0.0725.00% (+0.02)
Jun 15, 20262026 (Q4)-0.00-0.02-0.0877.78% (+0.06)
Feb 09, 20262026 (Q3)0.00-0.03-0.172.73% (+0.07)
Nov 10, 20252026 (Q2)-0.00-0.030.02-250.00% (-0.05)
Aug 11, 20252026 (Q1)-0.01-0.070-2766.67% (-0.08)
Jun 16, 20252025 (Q4)-0.02-0.08-1.5394.67% (+1.45)
Feb 10, 20252025 (Q3)0.01-0.100.03-414.29% (-0.13)
Nov 12, 20242025 (Q2)0.000.020500.00% (+0.02)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat Missed