NASDAQ$AIOT

Powerfleet Inc · Q3 2025 earnings

Q3 2025 earnings · · Before market open · Investor relations

Briefing

Reported strong third-quarter results with record revenue, improved profitability, and expanding margins.

Powerfleet delivered record Q3 revenue driven by strong services growth, returned to operating profitability, and significantly expanded adjusted EBITDA and margins.

  • Total revenue reached a quarterly record driven by services growth.
  • Operating income turned positive year over year.
  • Adjusted EBITDA grew strongly with margin expansion.
  • Recurring services revenue continued to represent the majority of total revenue.

Headline financials

Total Revenue

$113M

Previous: $77M+47.4%
EPS (adj)

$0.02

Previous: $0.01+100.0%
Gross Margin

55.2%

No prior period
Product Gross Margin

31.6%

No prior period
Service Gross Margin

61.0%

No prior period
Adjusted EBITDA

$25.7M

No prior period
Adjusted EBITDA Margin

22.6%

No prior period
Adj. EBITDA Gross Margin

67.3%

No prior period
Adj. EBITDA Product GM

31.6%

No prior period
Adj. EBITDA Services GM

76.1%

No prior period
Non-GAAP S&M % Revenue

17.3%

No prior period
Non-GAAP G&A % Revenue

23.1%

No prior period
R&D Incurred % Revenue

8.0%

No prior period
R&D Expensed % Revenue

4.0%

No prior period
Capital Expenditures

-$16.6M

Previous: -$7.24M-129.5%
Net Income

-$3.36M

Previous: -$1.89M-78.2%
Operating Income

$6.35M

Previous: $573K+1007.5%
Gross Profit

$62.7M

Previous: $41.3M+51.6%

Revenue & EPS history

Powerfleet · Revenue · Quarterly

$113M

Q3 2025+47.4%vs Q3 2024
Beat estimate in 4 of 9 quarters(44%)
ActualEstimate

Revenue by segment

Powerfleet · $21M total across 1 segment · Q2 2023

  • Services
    $21M+6.1%

Forward guidance

The company raised the lower end of its full-year revenue outlook and expects continued EBITDA growth while maintaining disciplined investment.

Tailwinds

  • Full-year revenue guidance tightened upward.
  • Adjusted EBITDA expected to grow significantly year over year.
  • Recurring services revenue expected to remain strong.
  • Operating leverage expected to continue improving margins.
  • Leverage ratio expected to decline further.

Headwinds

  • Higher operating expenses planned to support future growth.
  • Macroeconomic uncertainty could affect customer demand.
  • Foreign exchange volatility may impact results.
  • Integration and acquisition-related risks remain.
  • Capital market conditions may affect financing flexibility.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q3 2025

Historical avgQ3 2025

+3.2%

Avg return

Earnings day

+3.5%

Avg return

5 days after

+1.9%

Avg return

30 days after

57%

16 / 28 earnings

Positive

+42.7%

Q3 2024

Best reaction

-29.0%

Q4 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025+0.5%+9.6%
Q4 2026+0.5%+9.6%
Q3 2026-1.2%-19.6%-32.6%
Q2 2026+4.9%+0.6%+9.2%
Q1 2026+13.4%+18.1%+29.2%
Q4 2024+11.9%+2.0%-1.1%
Q3 2025+31.1%+36.1%-1.2%
Q3 2024+42.7%+36.1%-1.2%
Q2 2024+13.5%+8.4%+23.7%
Q1 2024-0.2%+0.6%+1.4%
Q4 2023-0.3%-1.9%+16.3%
Q3 2023+4.0%+13.6%+16.1%
Q2 2023-17.1%-20.5%-6.8%
Q1 2023+11.1%+3.6%+19.7%
Q4 2022-0.7%+5.4%+4.1%
Q3 2022-9.7%-2.9%-13.4%
Q2 2022+15.6%+32.0%+12.9%
Q1 2022-17.3%-19.7%-19.0%
Q4 2021+0.3%-2.3%-2.3%
Q3 2021-4.9%-6.1%-16.0%
Q2 2021+4.6%+6.5%+4.1%
Q1 2021-6.1%-11.1%-3.4%
Q4 2020-2.2%+3.0%+11.1%
Q3 2020+22.6%+15.6%+13.3%
Q2 2020+1.3%+12.2%-10.8%
Q1 2020-3.8%+11.3%+16.4%
Q4 2019-29.0%-44.5%-21.8%
Q3 2019+3.9%+2.9%+0.9%

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