Powerfleet Reports Second Quarter 2025 Financial Results

Rhea-AI Summary

Powerfleet (NASDAQ: AIOT) reported strong Q2 FY25 results with revenue up 7% to $77.0 million and Adjusted EBITDA up 41% to $14.5 million year-over-year. First half FY25 showed revenue growth of 9% to $152.4 million and Adjusted EBITDA increase of 46% to $28.2 million. The company achieved 50% of its planned two-year cost synergy target of $27 million within 6 months of the MiX combination. Product revenue rose 13% to $20.3 million with adjusted gross margins at 35%, while service revenue grew 5% to $56.7 million. The company reaffirmed its FY25 guidance expecting revenue to exceed $352.5 million and Adjusted EBITDA to exceed $72.5 million.

Positive

• Revenue increased 7% YoY to $77.0 million in Q2 FY25
• Adjusted EBITDA grew 41% YoY to $14.5 million
• Product revenue increased 13% YoY with improved gross margins of 35%
• Achieved $13.5 million in annual cost synergies within first 6 months
• Adjusted earnings per share improved to $0.02 from $(0.01) loss year-over-year

Negative

• Reported net loss of $1.9 million or $(0.02) per share in Q2 FY25
• Net debt increased to $121 million from $110 million post-MiX combination
• Working capital increased by $8.2 million due to higher receivables

Insights

Financial Analyst

This earnings report shows strong financial performance with notable improvements across key metrics. Revenue grew 7% to $77.0M and Adjusted EBITDA surged 41% to $14.5M in Q2. The company has rapidly achieved $13.5M in annual cost synergies, representing 50% of their two-year target following the MiX combination.

Product revenue growth of 13% with improving margins signals healthy demand. The company's balance sheet shows net debt of $119M, with the increase primarily due to working capital needs from strong sales growth. Full-year guidance projects revenue exceeding $352.5M and Adjusted EBITDA above $72.5M, indicating continued momentum.

Market Research Analyst

The successful integration of MiX Telematics and planned Fleet Complete acquisition positions Powerfleet for significant market expansion. The focus on Unity platform adoption and AI camera solutions targets high-growth segments in vehicle telematics. The 13% product revenue growth validates market demand for safety-centric solutions.

The company's strategy to leverage Fleet Complete's North American channels while expanding globally with mid-market products demonstrates a clear path to market share growth. Strong customer retention metrics and integrated solution offerings should drive sustained recurring revenue growth, making this a transformative period for Powerfleet's market position.

Q2 FY25 revenue up 7%, to $77.0 million, and Adjusted EBITDA up 41%, to $14.5 million year-over-year, demonstrating continued strong execution of the immediate business objectives post-MiX combination.

First half FY25 results exceeded expectations with revenue up 9%, to $152.4 million and Adjusted EBITDA up 46% year-over -year, to $28.2 million.

 50% of the planned two-year annualized cost synergy target of $27 million secured within 6 months of the close of the MiX combination.

WOODCLIFF LAKE, N.J., Nov. 12, 2024 /PRNewswire/ -- Powerfleet, Inc. (Nasdaq: AIOT) reported its financial results for the second quarter ended September 30, 2024. This marks the second full quarter following the closing of the business combination with MiX Telematics Ltd. with the prior year comparison numbers adjusted to reflect the pro forma financial performance of the combined businesses.

SECOND QUARTER 2025 FINANCIAL HIGHLIGHTS

• Total revenue was $77.0 million, up 7% year-over-year, driven by the continued strength of our Unity safety solutions.
• Product revenue rose by 13% year-over-year to $20.3 million, with adjusted gross margins expanding by 3% sequentially to 35%, exceeding current guidance of +30%.
• Service revenue growth of 5% was in line with annual revenue guidance, reaching $56.7 million, with adjusted gross margins expanding by 1.0% to 63.7% versus the prior year.
• Realized $13.5 million in annual cost synergies within the first six months of the MiX combination, achieving 50% of the two-year $27 million target. Cost synergies are the major driver of reduction in adjusted operating expenses, which declined by over 5% to $36.9 million versus the prior year.
• Adjusted EBITDA, a non-GAAP metric, increased by 41% to $14.5 million versus the prior year, benefiting from the flow through of expanded gross profit and the realization of cost synergies.

FIRST HALF 2025 FINANCIAL HIGHLIGHTS

• Total revenue was $152.4 million, up 9% year-over-year, running ahead of annual guidance and reflecting strong execution in the first six months following the close of the MiX combination.
• Gross profit, after adjusting for the amortization of acquisition-related intangibles and other integration expenses, increased by $6.4 million, or 8% versus the prior year.
• Adjusted EBITDA, a non-GAAP metric, increased by $8.9 million, or 46%, to $28.2 million versus the prior year, driven by increased gross margin from higher sales and the benefits of cost synergies.

MANAGEMENT COMMENTARY

"Just six months into the MiX combination, we're already seeing the integration gain strong momentum, setting the foundation for us to fully capitalize on the additional strategic opportunities offered by the Fleet Complete acquisition," said CEO Steve Towe.

"In the first half of fiscal 2025, we reported revenue of $152 million—up 9% from last year—and a 46% increase in adjusted EBITDA to $28.2 million. We have already secured $13.5 million in annual run-rate cost synergies, achieving 50% of our two-year $27 million target from the MiX combination within 6 months."

"We are energized by the expanded opportunities gained through the Fleet Complete acquisition. Our strategic direction is sharply focused on three key priorities: maximizing efficiency to accelerate adjusted EBITDA growth, driving towards accelerated top-line revenue expansion, and enhancing customer retention. These priorities serve as the foundation for how we align our resources, empower our teams, and execute initiatives for maximum impact."

"On the revenue front, we're driving the adoption of our Unity platform, in-warehouse solutions, and AI camera offerings to meet growing demand across North America, Europe, and beyond. Leveraging the Fleet Complete North American channel relationships, we expect accelerated growth beginning in FY2026, as well as global traction for their mid-market products and differentiated AI camera solutions. These initiatives underscore our strategy to capture high-demand markets while deepening customer engagement and expanding wallet share with highly sticky integrated solutions."

SECOND QUARTER 2025 FINANCIAL RESULTS

Total revenue for the quarter increased by 7% year-over-year to $77.0 million, up from $72.0 million in the same period of the prior year. This growth was largely driven by the continued success of our differentiated safety-centric product solutions, with product revenue, a leading indicator, increasing 13% to $20.3 million.

Service revenue grew by 5% year-over-year to $56.7 million, aligning with our annual guidance and demonstrating the resilience of our broad offerings and global portfolio, which more than offset the previously disclosed expected churn in the legacy MiX customer base.

Combined gross margin of 53.7% reflects a $1.2 million non-cash amortization expense related to acquisition-related intangibles from the MiX combination, along with $0.7 million in inventory write-offs due to integration efforts to streamline product offerings. Excluding these expenses, adjusted gross margin was 56.1%, in both the current and prior year.

Operating expenses for the quarter totaled $40.8 million, including $3.9 million in one-time transaction and restructuring costs, versus the prior year of $41.0 million, which included $2.0 million in one-time costs. On an adjusted basis, total operating expenses were down by 5% annually, reflecting the success of our cost synergy program, which secured $13.5 million in annual savings through the end of September.

We reported a net loss attributable to common stockholders of $1.9 million, or $(0.02) per share, compared to $(0.06) in the prior year. However, after adjusting for one-time expenses and the amortization of acquisition-related intangibles, adjusted earnings per basic share was $0.02 for the current year versus a loss of $(0.01) in the prior period.

Adjusted EBITDA increased by 41% to $14.5 million from $10.3 million in the previous year. This growth was driven by strong top-line performance, resulting in a $2.9 million increase in gross margin after accounting for the impact of the amortization of acquisition-related intangibles plus the flow through benefits of cost synergies.

Excluding $62 million in proceeds from the private placement related to the Fleet Complete acquisition, we ended the quarter with net debt of $119 million. Adjusting for $1.9 million in unsettled transaction costs, pro forma net debt stood at $121 million, versus $110 million at the close of the MiX combination. The $11 million increase in pro forma net debt was primarily driven by an increase in net working capital of $8.2 million that is directly attributable to higher net receivables following strong top-line performance.

FULL-YEAR 2025 FINANCIAL OUTLOOK

We are reaffirming our guidance from the October 2^nd fireside chat. Capturing six months of Fleet Complete's financial performance, full-year 2025 revenue is expected to exceed $352.5 million. Adjusted EBITDA is anticipated to exceed $72.5 million, inclusive of an incremental $5 million in secured exit run-rate cost synergies. This guidance reflects Fleet Complete's pre-acquisition accounting treatment, which remains subject to review as we work to conform to US GAAP standards.

INVESTOR CONFERENCE CALL

As previously announced, Powerfleet will hold a conference call on Tuesday, November 12, 2024, at 8:30 a.m. Eastern time (5:30 a.m. Pacific time) to discuss results for the second quarter fiscal 2025 ended September 30, 2024.

Management will make prepared remarks followed by a question-and-answer session.

Date: Tuesday, November 12, 2024
Time: 8:30 a.m. Eastern time (5:30 a.m. Pacific time)
Toll Free: 888-506-0062
International: 973-528-0011
Participant Access Code: 216765
The conference call will be broadcast simultaneously and available for replay here and via the investor section of the company's website at ir.powerfleet.com.

NON-GAAP FINANCIAL MEASURES 

To supplement its financial statements presented in accordance with Generally Accepted Accounting Principles (GAAP), Powerfleet provides certain non-GAAP measures of financial performance. These non-GAAP measures include adjusted EBITDA, adjusted gross margin, adjusted operating expenses, adjusted earnings per share, net debt and net working capital. Reference to these non-GAAP measures should be considered in addition to results prepared under current accounting standards, but are not a substitute for, or superior to, GAAP results. These non-GAAP measures are provided to enhance investors' overall understanding of Powerfleet's current financial performance. Specifically, Powerfleet believes the non-GAAP measures provide useful information to both management and investors by excluding certain expenses, gains and losses and fluctuations in currency rates that may not be indicative of its core operating results and business outlook. These non-GAAP measures are not measures of financial performance or liquidity under GAAP and, accordingly, should not be considered as an alternative to net income, gross margin, cash flow from operating activities or earnings per share as an indicator of operating performance or liquidity. Because Powerfleet's method for calculating the non-GAAP measures may differ from other companies' methods, the non-GAAP measures may not be comparable to similarly titled measures reported by other companies. Reconciliation of all non-GAAP measures included in this press release to the most directly comparable GAAP measures can be found in the financial tables included in this press release.

ABOUT POWERFLEET

Powerfleet (Nasdaq: AIOT; JSE: PWR) is a global leader in the artificial intelligence of things (AIoT) software-as-a-service (SaaS) mobile asset industry. With more than 30 years of experience, Powerfleet unifies business operations through the ingestion, harmonization, and integration of data, irrespective of source, and delivers actionable insights to help companies save lives, time, and money. Powerfleet's ethos transcends our data ecosystem and commitment to innovation; our people-centric approach empowers our customers to realize impactful and sustained business improvement. The company is headquartered in New Jersey, United States, with offices around the globe. Explore more at www.powerfleet.com. Powerfleet has a primary listing on The Nasdaq Global Market and a secondary listing on the Main Board of the Johannesburg Stock Exchange (JSE).

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of federal securities laws. Powerfleet's actual results may differ from its expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Forward-looking statements may be identified by words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "continue," and similar expressions.

These forward-looking statements include, without limitation, our expectations with respect to its beliefs, plans, goals, objectives, expectations, anticipations, assumptions, estimates, intentions and future performance, as well as anticipated financial impacts of our transactions with MiX Telematics and Fleet Complete. Forward-looking statements involve significant known and unknown risks, uncertainties and other factors, which may cause their actual results, performance or achievements to be materially different from the future results, performance or achievements expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be forward-looking statements. Most of these factors are outside our control and are difficult to predict. The risks and uncertainties referred to above include, but are not limited to, risks related to: (i) future economic and business conditions, including the conflict between Israel and Hamas; (ii) integration of our, MiX Telematics' and Fleet Complete's businesses and the ability to recognize the anticipated synergies and benefits of the transactions with MiX Telematics and Fleet Complete; (iii) the loss of any of our key customers or reduction in the purchase of our products by any such customers; (iv) the failure of the markets for our products to continue to develop; (v) the negative effects of the transactions on the market price of our securities; (vi) our inability to adequately protect our intellectual property; (vii) our inability to manage growth; (viii) the effects of competition from a wide variety of local, regional, national and other providers of wireless solutions; (ix) failure to make timely filings of our periodic reports with the Securities and Exchange Commission ("SEC")and (x) such other factors as are set forth in the periodic reports filed by us with the SEC, including but not limited to those described under the heading "Risk Factors" in our annual reports on Form 10-K, quarterly reports on Form 10-Q and any other filings made with the SEC from time to time, which are available via the SEC's website at http://www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove to be incorrect, actual results may vary materially from those indicated or anticipated by these forward-looking statements. Therefore, you should not rely on any of these forward-looking statements.

The forward-looking statements included in this press release are made only as of the date of this press release, and except as otherwise required by applicable securities law, we assume no obligation, nor do we intend to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances.

Powerfleet Investor Contacts
Carolyn Capaccio and Jody Burfening
LHA Investor Relations
AIOTIRTeam@lhai.com

Powerfleet Media Contact
Jonathan Bates
jonathan.bates@powerfleet.com 
+44 121 717-5360

POWERFLEET, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data)
	Three Months Ended September 30,				Six Months Ended September 30,
	2023		2024		2023		2024
	Pro Forma Combined		Consolidated		Pro Forma Combined		Consolidated
Revenues:
Products	$               17,947		$               20,293		$               32,470		$               39,031
Services	54,057		56,725		107,977		113,417
Total revenues	72,004		77,018		140,447		152,448
Cost of revenues:
Cost of products	11,454		13,929		22,385		26,680
Cost of services	20,169		21,746		38,550		44,777
Total cost of revenues	31,623		35,675		60,935		71,457
Gross profit	40,381		41,343		79,512		80,991
Operating expenses:
Selling, general and administrative expenses	36,941		37,335		71,516		92,117
Research and development expenses	4,062		3,435		7,626		6,536
Total operating expenses	41,003		40,770		79,142		98,653
(Loss)/profit from operations	(622)		573		370		(17,662)
Interest income	221		168		512		472
Interest expense	(693)		(4,042)		(1,367)		(6,733)
Bargain purchase - Movingdots	—		—		283		—
Other income/(expense), net	385		1,674		(324)		1,050
Net loss before income taxes	(709)		(1,627)		(526)		(22,873)
Income tax expense	(2,591)		(256)		(4,427)		(1,309)
Net loss before non-controlling interest	(3,300)		(1,883)		(4,953)		(24,182)
Non-controlling interest	—		(5)		(6)		(18)
Net loss	(3,300)		(1,888)		(4,959)		(24,200)
Accretion of preferred stock	(1,834)		—		(3,606)		—
Preferred stock dividend	(1,128)		—		(2,257)		(25)
Net loss attributable to common stockholders	$               (6,262)		$               (1,888)		$             (10,822)		$             (24,225)
Net loss per share attributable to common stockholders - basic and diluted	$                 (0.06)		$                 (0.02)		$                 (0.10)		$                 (0.23)
Weighted average common shares outstanding - basic and diluted	106,360		107,532		106,333		107,335

 

POWERFLEET, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except per share data)
		March 31, 2024		September 30, 2024
		Pro Forma Combined		Consolidated
ASSETS
Current assets:
Cash and cash equivalents		$                      51,091		$                      25,962
Restricted cash		86,104		63,074
Accounts receivables, net		55,008		64,819
Inventory, net		25,800		23,488
Deferred costs - current		42		13
Prepaid expenses and other current assets		17,784		17,985
Total current assets		235,829		195,341
Fixed assets, net		48,306		51,928
Goodwill		121,713		300,283
Intangible assets, net		40,444		167,320
Right-of-use asset		11,222		9,402
Severance payable fund		3,796		3,864
Deferred tax asset		3,874		3,602
Other assets		19,090		16,595
Total assets		$                    484,274		$                    748,335
LIABILITIES
Current liabilities:
Short-term bank debt and current maturities of long-term debt		$                      22,109		$                      35,339
Accounts payable and accrued expenses		60,763		66,098
Deferred revenue - current		12,236		10,447
Lease liability - current		2,648		2,248
Total current liabilities		97,756		114,132
Long-term debt - less current maturities		113,810		111,011
Deferred revenue - less current portion		4,892		4,674
Lease liability - less current portion		8,773		7,713
Accrued severance payable		4,597		4,677
Deferred tax liability		18,669		52,113
Other long-term liabilities		2,980		2,905
Total liabilities		251,477		297,225
Convertible redeemable preferred stock: Series A		90,273		—
STOCKHOLDERS' EQUITY
Preferred stock		—		—
Common stock		63,842		1,096
Additional paid-in capital		200,218		641,736
Accumulated deficit		(78,516)		(178,996)
Accumulated other comprehensive loss		(17,133)		(1,364)
Treasury stock		(25,997)		(11,518)
Total stockholders' equity		142,414		450,954
Non-controlling interest		110		156
Total equity		142,524		451,110
Total liabilities, convertible redeemable preferred stock, and stockholders' equity		$                    484,274		$                    748,335

 

POWERFLEET, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)
		Six Months Ended September 30,
		2023		2024
		Pro Forma Combined		Consolidated
Cash flows from operating activities
Net loss		$                    (4,959)		$                  (24,200)
Adjustments to reconcile net loss to cash (used in)/provided by operating activities:
Non-controlling interest		6		18
Gain on bargain purchase		(283)		—
Inventory reserve		650		904
Stock based compensation expense		2,518		7,300
Depreciation and amortization		13,577		19,399
Right-of-use assets, non-cash lease expense		1,242		1,515
Derivative mark-to-market adjustment		—		(2,197)
Bad debts expense		3,235		4,369
Deferred income taxes		3,268		(283)
Shares issued for transaction bonuses		—		889
Lease termination and modification losses		—		184
Other non-cash items		2,613		1,522
Changes in operating assets and liabilities:
Accounts receivables		(9,404)		(12,553)
Inventories		(1,558)		955
Prepaid expenses and other current assets		47		(3,009)
Deferred costs		(4,105)		(3,619)
Deferred revenue		222		(99)
Accounts payable and accrued expenses		5,453		(71)
Lease liabilities		(1,247)		(1,856)
Accrued severance payable, net		91		40
Net cash provided by/(used in) operating activities		11,366		(10,792)
Cash flows from investing activities:
Acquisition, net of cash assumed		—		27,531
Proceeds from sale of fixed assets		—		217
Capitalized software development costs		(4,964)		(4,676)
Capital expenditures		(9,866)		(10,454)
Deferred consideration paid		(267)		—
Repayment of loan advanced to external parties		—		294
Net cash (used in)/provided by investing activities		(15,097)		12,912
Cash flows from financing activities:
Repayment of long-term debt		(2,656)		(978)
Short-term bank debt, net		7,328		9,955
Purchase of treasury stock upon vesting of restricted stock		(640)		(2,836)
Payment of preferred stock dividend and redemption of preferred stock		(2,257)		(90,298)
Proceeds from private placement, net		—		61,851
Proceeds from exercise of stock options, net		36		—
Cash paid on dividends to affiliates		(2,673)		(6)
Net cash used in financing activities		(862)		(22,312)
Effect of foreign exchange rate changes on cash and cash equivalents		(1,331)		(436)
Net decrease in cash and cash equivalents, and restricted cash		(5,924)		(20,628)
Cash and cash equivalents, and restricted cash at beginning of the period		55,746		109,664
Cash and cash equivalents, and restricted cash at end of the period		$                   49,822		$                   89,036
Reconciliation of cash, cash equivalents, and restricted cash, beginning of the period
Cash and cash equivalents		54,656		24,354
Restricted cash		1,090		85,310
Cash, cash equivalents, and restricted cash, beginning of the period		$                   55,746		$                 109,664
Reconciliation of cash, cash equivalents, and restricted cash, end of the period
Cash and cash equivalents		48,757		25,962
Restricted cash		1,065		63,074
Cash, cash equivalents, and restricted cash, end of the period		$                   49,822		$                   89,036
Supplemental disclosure of cash flow information:
Cash paid for:
Taxes		$                      1,270		$                         774
Interest		$                         875		$                      6,262
Noncash investing and financing activities:
Common stock issued for transaction bonus		$                           —		$                             9
Shares issued in connection with MiX Combination		$                           —		$                 362,005

 

POWERFLEET, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO ADJUSTED EBITDA FINANCIAL MEASURES
(In thousands)
	Three Months Ended September 30,				Six Months Ended September 30,
	2023		2024		2023		2024
	Pro Forma Combined		Consolidated		Pro Forma Combined		Consolidated
Net loss attributable to common stockholders	$            (6,262)		$            (1,888)		$             (10,822)		$         (24,225)
Non-controlling interest	—		5		6		18
Preferred stock dividend and accretion	2,962		—		5,863		25
Interest expense, net	472		3,345		1,162		6,261
Income tax expense	2,591		256		4,427		1,309
Depreciation and amortization	7,243		9,064		13,577		19,399
Stock-based compensation	1,426		1,371		2,518		7,300
Foreign currency losses	74		636		442		745
Restructuring-related expenses	149		1,069		597		2,267
Gain on bargain purchase - Movingdots	—		—		(283)		—
Derivative mark-to-market adjustment	—		(2,197)		—		(2,197)
Net profit on fixed assets	—		—		(4)		—
Contingent consideration remeasurement	(514)		—		(538)		—
Acquisition related expenses	2,028		1,406		2,251		15,571
Integration-related costs	—		1,410		—		1,739
Non-recurring transitional service agreement costs	121		—		121		—
Adjusted EBITDA	$            10,290		$            14,477		$               19,317		$           28,212

 

POWERFLEET, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP NET LOSS FINANCIAL MEASURES
(In thousands)
	Three Months Ended September 30,				Six Months Ended September 30,
	2023		2024		2023		2024
	Pro Forma Combined		Consolidated		Pro Forma Combined		Consolidated
Net loss	$                (3,300)		$                (1,888)		$               (4,959)		$             (24,200)
Incremental intangible assets amortization expense as a result of MiX Telematics business combination	—		1,163		—		4,158
Stock-based compensation (non-recurring/accelerated cost)	—		—		—		4,693
Foreign currency losses	74		636		442		745
Income tax effect of net foreign exchange gains/(losses)	109		(1,109)		534		(1,856)
Restructuring related expenses	149		1,069		597		2,267
Income tax effect of restructuring costs	(2)		(21)		(7)		(124)
Acquisition-related expenses	2,028		1,406		2,251		15,571
Integration-related expenses	—		1,410		—		1,739
Non-recurring transitional service agreement costs	121		—		121		—
Contingent consideration remeasurement	(514)		—		(538)		—
Income tax effect of contingent consideration remeasurement	(5)		—		—		—
Non-GAAP net (loss)/profit	$                (1,340)		$                  2,666		$               (1,559)		$                 2,993
Weighted average shares outstanding	106,360		107,532		106,333		107,335
Non-GAAP net (loss)/profit per share - basic	$                  (0.01)		$                    0.02		$                 (0.01)		$                   0.03

 

POWERFLEET, INC. AND SUBSIDIARIES
ADJUSTED GROSS PROFIT MARGINS
(In thousands)
	Three Months Ended September 30,				Six Months Ended September 30,
	2023		2024		2023		2024
	Pro Forma Combined		Consolidated		Pro Forma Combined		Consolidated
Revenues:
Products	$           17,947		$          20,293		$           32,470		$          39,031
Services	54,057		56,725		107,977		113,417
Total revenues	72,004		77,018		140,447		152,448
Cost of revenues:
Cost of products	11,454		13,929		22,385		26,680
Cost of services	20,169		21,746		38,550		44,777
Total cost of revenues	31,623		35,675		60,935		71,457
Gross profit	$           40,381		$          41,343		$           79,512		$          80,991
Product margin	36.2 %		31.4 %		31.1 %		31.6 %
Service margin	62.7 %		61.7 %		64.3 %		60.5 %
Total gross profit margin	56.1 %		53.7 %		56.6 %		53.1 %
Incremental intangible assets amortization expense as a result of MiX Telematics business combination	$                   —		$             1,163		$                   —		$             4,158
Inventory rationalization	$                   —		$                734		$                   —		$                734
Product margin	36.2 %		35.0 %		31.1 %		33.5 %
Service margin	62.7 %		63.7 %		64.3 %		64.2 %
Adjusted total gross profit margin	56.1 %		56.1 %		56.6 %		56.3 %

 

POWERFLEET, INC. AND SUBSIDIARIES
ADJUSTED OPERATING EXPENSES
(In thousands)
	Three Months Ended September 30,				Six Months Ended September 30,
	2023		2024		2023		2024
	Pro Forma Combined		Consolidated		Pro Forma Combined		Consolidated
Total operating expenses	$               41,003		$               40,770		$               79,142		$               98,653
Adjusted for once-off costs
Acquisition-related expenses	2,028		1,406		2,251		15,571
Integration-related costs	—		1,410		—		1,739
Stock-based compensation (non-recurring/accelerated cost)	—		—		—		4,693
Restructuring-related expenses	156		1,069		627		2,267
	2,184		3,885		2,878		24,270
Adjusted operating expenses	$               38,819		$               36,885		$               76,264		$               74,383

 

POWERFLEET, INC. AND MiX TELEMATICS CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data)
	Three Months Ended September 30, 2023
	Powerfleet Inc.		MiX Telematics		Adjustments to align disclosure		Pro Forma Combined
Revenues:
Products	$               13,233		$                 5,324		$                  (610)		$               17,947
Services	21,010		32,437		610		54,057
Total revenues	34,243		37,761		—		72,004
Cost of revenues:
Cost of products	8,842		3,269		(657)		11,454
Cost of services	8,294		11,218		657		20,169
Total cost of revenues	17,136		14,487		—		31,623
Gross profit	17,107		23,274		—		40,381
Operating expenses:
Selling, general and administrative expenses	17,778		19,163		—		36,941
Research and development expenses	2,426		1,636		—		4,062
Total operating expenses	20,204		20,799		—		41,003
(Loss)/income from operations	(3,097)		2,475		—		(622)
Interest income	23		198		—		221
Interest expense	(154)		(539)		—		(693)
Bargain purchase - Movingdots	—		—		—		—
Other (expense)/income, net	(25)		410		—		385
Net (loss)/income before income taxes	(3,253)		2,544		—		(709)
Income tax expense	(295)		(2,296)		—		(2,591)
Net (loss)/income before non-controlling interest	(3,548)		248		—		(3,300)
Non-controlling interest	—		—		—		—
Net (loss)/income	(3,548)		248		—		(3,300)
Accretion of preferred stock	(1,834)		—		—		(1,834)
Preferred stock dividend	(1,128)		—		—		(1,128)
Net (loss)/income attributable to common stockholders	$               (6,510)		$                    248		$                       —		$               (6,262)
Net (loss)/income per share attributable to common stockholders - basic and diluted	$                 (0.18)		$                 0.004				$                 (0.06)
Weighted average common shares outstanding - basic	35,653		70,707				106,360

 

POWERFLEET, INC. AND MiX TELEMATICS CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data)
	Six Months Ended September 30, 2023
	Powerfleet Inc.		MiX Telematics		Adjustments to align disclosure		Pro Forma Combined
Revenues:
Products	$               24,317		$                 9,464		$               (1,311)		$               32,470
Services	42,018		64,648		1,311		107,977
Total revenues	66,335		74,112		—		140,447
Cost of revenues:
Cost of products	17,392		6,294		(1,301)		22,385
Cost of services	15,818		21,431		1,301		38,550
Total cost of revenues	33,210		27,725		—		60,935
Gross profit	33,125		46,387		—		79,512
Operating expenses:
Selling, general and administrative expenses	34,976		36,540		—		71,516
Research and development expenses	4,646		2,980		—		7,626
Total operating expenses	39,622		39,520		79,142		79,142
(Loss)/income from operations	(6,497)		6,867		—		370
Interest income	45		467		—		512
Interest expense	(327)		(1,040)		—		(1,367)
Bargain purchase - Movingdots	283		—		—		283
Other expense, net	(25)		(299)		—		(324)
Net (loss)/income before income taxes	(6,521)		5,995		—		(526)
Income tax expense	(289)		(4,138)		—		(4,427)
Net (loss)/income before non-controlling interest	(6,810)		1,857		—		(4,953)
Non-controlling interest	(6)		—		—		(6)
Net (loss)/income	(6,816)		1,857		—		(4,959)
Accretion of preferred stock	(3,606)		—		—		(3,606)
Preferred stock dividend	(2,257)		—		—		(2,257)
Net (loss)/income attributable to common stockholders	$             (12,679)		$                 1,857		$                       —		$             (10,822)
Net (loss)/income per share attributable to common stockholders - basic	$                 (0.36)		$                   0.03				$                 (0.10)
Weighted average common shares outstanding - basic	35,629		70,704				106,333

 

POWERFLEET, INC. AND MiX TELEMATICS CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except per share data)
	March 31, 2024
	Powerfleet Inc.		MiX Telematics		Pro Forma Combined
ASSETS
Current assets:
Cash and cash equivalents	$               24,354		$               26,737		$               51,091
Restricted cash	85,310		794		86,104
Accounts receivables, net	30,333		24,675		55,008
Inventory, net	21,658		4,142		25,800
Deferred costs - current	42		—		42
Prepaid expenses and other current assets	8,091		9,693		17,784
Total current assets	169,788		66,041		235,829
Fixed assets, net	12,719		35,587		48,306
Goodwill	83,487		38,226		121,713
Intangible assets, net	19,652		20,792		40,444
Right-of-use asset	7,428		3,794		11,222
Severance payable fund	3,796		—		3,796
Deferred tax asset	2,781		1,093		3,874
Other assets	9,029		10,061		19,090
Total assets	$             308,680		$             175,594		$             484,274
LIABILITIES
Current liabilities:
Short-term bank debt and current maturities of long-term debt	$                 1,951		$               20,158		$               22,109
Accounts payable and accrued expenses	34,008		26,755		60,763
Deferred revenue - current	5,842		6,394		12,236
Lease liability - current	1,789		859		2,648
Total current liabilities	43,590		54,166		97,756
Long-term debt - less current maturities	113,810		—		113,810
Deferred revenue - less current portion	4,892		—		4,892
Lease liability - less current portion	5,921		2,852		8,773
Accrued severance payable	4,597		—		4,597
Deferred tax liability	4,465		14,204		18,669
Other long-term liabilities	2,496		484		2,980
Total liabilities	179,771		71,706		251,477
Convertible redeemable preferred stock: Series A	90,273		—		90,273
STOCKHOLDERS' EQUITY
Preferred stock	—		—		—
Common stock	387		63,455		63,842
Additional paid-in capital	202,607		(2,389)		200,218
Accumulated deficit	(154,796)		76,280		(78,516)
Accumulated other comprehensive loss	(985)		(16,148)		(17,133)
Treasury stock	(8,682)		(17,315)		(25,997)
Total stockholders' equity	38,531		103,883		142,414
Non-controlling interest	105		5		110
Total equity	38,636		103,888		142,524
Total liabilities, convertible redeemable preferred stock, and stockholders' equity	$             308,680		$             175,594		$             484,274

 

POWERFLEET, INC. AND MiX TELEMATICS CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)
	Six Months Ended September 30, 2023
	Powerfleet Inc.		MiX Telematics		Pro Forma Combined
Cash flows from operating activities
Net (loss)/income	$               (6,816)		$                 1,857		$               (4,959)
Adjustments to reconcile net (loss)/income to cash (used in)/provided by operating activities:
Non-controlling interest	6		—		6
Gain on bargain purchase	(283)		—		(283)
Inventory reserve	617		33		650
Stock based compensation expense	1,953		565		2,518
Depreciation and amortization	4,807		8,770		13,577
Right-of-use assets, non-cash lease expense	1,242		—		1,242
Bad debts expense	933		2,302		3,235
Deferred income taxes	285		2,983		3,268
Other non-cash items	126		2,487		2,613
Changes in operating assets and liabilities:
Accounts receivables	(3,866)		(5,538)		(9,404)
Inventories	(2,023)		465		(1,558)
Prepaid expenses and other current assets	51		(4)		47
Deferred costs	332		(4,437)		(4,105)
Deferred revenue	222		—		222
Accounts payable and accrued expenses	1,498		3,955		5,453
Lease liabilities	(1,247)		—		(1,247)
Accrued severance payable, net	91		—		91
Net cash (used in)/provided by operating activities	(2,072)		13,438		11,366
Cash flows from investing activities:
Capitalized software development costs	(2,047)		(2,917)		(4,964)
Capital expenditures	(1,441)		(8,425)		(9,866)
Deferred consideration paid	—		(267)		(267)
Net cash used in investing activities	(3,488)		(11,609)		(15,097)
Cash flows from financing activities:
Repayment of long-term debt	(2,656)		—		(2,656)
Short-term bank debt, net	4,996		2,332		7,328
Purchase of treasury stock upon vesting of restricted stock	(94)		(546)		(640)
Payment of preferred stock dividend and redemption of preferred stock	(2,257)		—		(2,257)
Proceeds from exercise of stock options, net	36		—		36
Cash paid on dividends to affiliates	—		(2,673)		(2,673)
Net cash from/(used in) financing activities	25		(887)		(862)
Effect of foreign exchange rate changes on cash and cash equivalents	53		(1,384)		(1,331)
Net decrease in cash and cash equivalents, and restricted cash	(5,482)		(442)		(5,924)
Cash and cash equivalents, and restricted cash at beginning of the period	25,089		30,657		55,746
Cash and cash equivalents, and restricted cash at end of the period	$               19,607		$               30,215		$               49,822
Reconciliation of cash, cash equivalents, and restricted cash, beginning of the period
Cash and cash equivalents	24,780		29,876		54,656
Restricted cash	309		781		1,090
Cash, cash equivalents, and restricted cash, beginning of the period	$               25,089		$               30,657		$               55,746
Reconciliation of cash, cash equivalents, and restricted cash, end of the period
Cash and cash equivalents	19,297		29,460		48,757
Restricted cash	310		755		1,065
Cash, cash equivalents, and restricted cash, end of the period	$               19,607		$               30,215		$               49,822
Supplemental disclosure of cash flow information:
Cash paid for:
Taxes	$                    115		$                 1,155		$                 1,270
Interest	$                    538		$                    337		$                    875

 

POWERFLEET, INC. AND MiX TELEMATICS
RECONCILIATION OF GAAP TO ADJUSTED EBITDA FINANCIAL MEASURES
(In thousands)
	Three Months Ended September 30, 2023
	Powerfleet Inc.		MiX Telematics		Pro Forma Combined
Net (loss)/profit attributable to common stockholders	$               (6,510)		$                    248		$           (6,262)
Non-controlling interest	—		—		—
Preferred stock dividend and accretion	2,962		—		2,962
Interest expense, net	131		341		472
Income tax expense	295		2,296		2,591
Depreciation and amortization	2,485		4,758		7,243
Stock-based compensation	1,101		325		1,426
Foreign currency (gains)/losses	(49)		123		74
Restructuring-related expenses	142		7		149
Contingent consideration remeasurement	—		(514)		(514)
Acquisition related expenses	1,232		796		2,028
Non-recurring transitional service agreement costs	—		121		121
Adjusted EBITDA	$                 1,789		$                 8,501		$           10,290

 

POWERFLEET, INC. AND MiX TELEMATICS
RECONCILIATION OF GAAP TO ADJUSTED EBITDA FINANCIAL MEASURES
(In thousands)
	Six Months Ended September 30, 2023
	Powerfleet Inc.		MiX Telematics		Pro Forma Combined
Net (loss)/profit attributable to common stockholders	$             (12,679)		$                 1,857		$             (10,822)
Non-controlling interest	6		—		6
Preferred stock dividend and accretion	5,863		—		5,863
Interest expense, net	588		574		1,162
Income tax expense	289		4,138		4,427
Depreciation and amortization	4,807		8,770		13,577
Stock-based compensation	1,953		565		2,518
Foreign currency translation	(411)		853		442
Restructuring related expenses	567		30		597
Gain on Bargain purchase - Movingdots	(283)		—		(283)
Net profit on fixed assets	—		(4)		(4)
Contingent consideration remeasurement	—		(538)		(538)
Acquisition related expenses	1,455		796		2,251
Non-recurring transitional service agreement costs	—		121		121
Adjusted EBITDA	$                 2,155		$               17,162		$               19,317

 

POWERFLEET, INC. AND MiX TELEMATICS
RECONCILIATION OF GAAP TO NON-GAAP NET (LOSS)/INCOME FINANCIAL MEASURES
(In thousands)
	Three Months Ended September 30, 2023
	Powerfleet Inc.		MiX Telematics		Pro Forma Combined
Net (loss)/income	$               (3,548)		$                    248		$               (3,300)
Foreign currency (gains)/losses	(49)		123		74
Income tax effect of net foreign exchange gains/(losses)	—		109		109
Restructuring related expenses	142		7		149
Income tax effect of restructuring costs	—		(2)		(2)
Acquisition related expenses	1,232		796		2,028
Non-recurring transitional service agreement costs	—		121		121
Contingent consideration remeasurement	—		(514)		(514)
Income tax effect of contingent consideration remeasurement	—		(5)		(5)
Non-GAAP net (loss)/income	$               (2,223)		$                    883		$               (1,340)
Weighted average shares outstanding	35,653		70,707		106,360
Non-GAAP net (loss)/income per share - basic	$                 (0.06)		$                   0.01		$                 (0.01)

 

POWERFLEET, INC. AND MiX TELEMATICS
RECONCILIATION OF GAAP TO NON-GAAP NET (LOSS)/INCOME FINANCIAL MEASURES
(In thousands)
	Six Months Ended September 30, 2023
	Powerfleet Inc.		MiX Telematics		Pro Forma Combined
Net (loss)/income	$               (6,816)		$                 1,857		$               (4,959)
Foreign currency (gains)/losses	(411)		853		442
Income tax effect of net foreign exchange gains	—		534		534
Restructuring related expenses	567		30		597
Income tax effect of restructuring costs	—		(7)		(7)
Acquisition related expenses	1,455		796		2,251
Non-recurring transitional service agreement costs	—		121		121
Contingent consideration remeasurement	—		(538)		(538)
Non-GAAP net (loss)/income	$               (5,205)		$                 3,646		$               (1,559)
Weighted average shares outstanding	35,629		70,704		106,333
Non-GAAP net (loss)/income per share - basic	$                 (0.15)		$                   0.05		$                 (0.01)

 

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/powerfleet-reports-second-quarter-2025-financial-results-302301670.html

SOURCE Powerfleet

FAQ

What was Powerfleet's (AIOT) revenue growth in Q2 2025?

Powerfleet's revenue grew 7% year-over-year to $77.0 million in Q2 2025.

How much cost synergy has Powerfleet (AIOT) achieved from the MiX combination?

Powerfleet achieved $13.5 million in annual cost synergies, representing 50% of its two-year $27 million target, within 6 months of the MiX combination.

What is Powerfleet's (AIOT) revenue guidance for full-year 2025?

Powerfleet expects full-year 2025 revenue to exceed $352.5 million, including six months of Fleet Complete's financial performance.

What was Powerfleet's (AIOT) Adjusted EBITDA in Q2 2025?

Powerfleet's Adjusted EBITDA increased 41% year-over-year to $14.5 million in Q2 2025.