Powerfleet reported a 22% increase in revenue to $443.8 million for the fiscal year ended March 31, 2026, driven by a 30% rise in services revenue to $359.8 million. The company improved its net loss by 60% to $20.6 million, or $(0.15) per share, compared to a loss of $(0.43) in the prior year. Adjusted EBITDA grew 44% to $97.0 million, with margins expanding to 22%. The company achieved positive operating income of $19.6 million for the full year, a significant turnaround from an operating loss of $25.9 million in fiscal 2025.

For the fourth quarter of fiscal 2026, revenue increased 11% to $114.5 million, led by services revenue of $92.9 million, which rose 14%. The company turned profitable at the operating level, reporting income from operations of $11.0 million compared to a loss of $7.0 million in the prior-year quarter. The net loss narrowed 78% to $2.7 million, while adjusted EBITDA jumped 42% to $26.4 million with a margin of 23%.

Operational Highlights

Powerfleet signed a landmark five-year agreement with the South African National Treasury, anticipated to deliver a total contract value of $100 million to $120 million. The company also secured the three largest individual contracts in its history, including individual $10 million+ total contract value agreements with a top three global food & beverage company and a global manufacturing enterprise. Additionally, the company scaled its Unity platform to nearly three million subscribers across 50,000 customers. Management noted that AI video bookings grew more than 50% in FY26 and on-site revenue increased 39%.

Balance Sheet and Cash Flows

Operating cash flow for the full year increased to $30.5 million from $(3.3) million in fiscal 2025. The company continued to invest in growth through capitalized software development costs of $18.5 million and capital expenditures of $21.6 million. As of March 31, 2026, total outstanding debt was $280.0 million, and cash, cash equivalents, and restricted cash totaled $40.8 million. The company reduced its net leverage ratio to 2.47 times, down from 3.39 times at the end of fiscal 2025.

Financial Outlook

For fiscal year 2027, Powerfleet expects revenue to range from $485.000 million to $490.000 million, versus the $482.728 million analyst estimate. This represents approximately 10% year-over-year growth at the midpoint. Services revenue is expected to exceed $400 million. The company projects net income between $4 million and $8 million and adjusted EBITDA between $122 million and $125 million, representing approximately 27% year-over-year growth at the midpoint. Free cash flow is projected to range from $30 million to $35 million.